microbusinesses have been approved but are not yet built out (Port Hueneme Organic Team, Inc. and Red Mule Group, LLC.). Therefore, the 17 businesses approved to operate in the City are:
• BB & SE, Inc., a delivery-only service: 2667 N. Ventura Rd. • Bleu Diamond, LLC. a delivery-only service: 501 W. Channel Islands Bl., #202 • Emerald Perspective Cooperative, Inc., a dispensary with permitted ancillary delivery service: 100 W. Pleasant Valley Rd.
• Freedom 1st Association (dba “Skunkmasters”), a dispensary with permitted ancillary delivery service and a consumption lounge: 233 E. Channel Islands Bl. • Front Door Enterprises, LLC (dba “EcoMeds”), a delivery-only service: 521 W.
Channel Islands Bl., #13
• FTE Enterprises, Inc. (dba “From the Earth”), a dispensary with permitted ancillary delivery service: 2675 N. Ventura Rd., #106-108
• Innovative Concepts Investments Group, LLC (dba “I Heart Cannabis”), a deliveryonly service: 521 W. Channel Islands Bl., #11 • Harbor Management Group, LLC, (dba "Safe Port"), a dispensary with permitted ancillary delivery service: 353 W. Channel Islands Bl.
• Hueneme Patient Consumer Collective, LLC (dba “HPC”), a dispensary with permitted ancillary delivery service: 501 W. Channel Islands Bl., #301-303 • PH Investment Group, LLC (dba “Element 7”), a dispensary with permitted ancillary delivery service: 455 W. Channel Islands Bl.
• Port Hueneme Organic Team, Inc., an unbuilt microbusiness consisting of dispensary, cultivation and distribution operations: 475 W. Channel Islands Bl. • Port Retail, LLC (dba “Tree Factory”), a dispensary with permitted ancillary delivery service: 437 W. Channel Islands Bl.
• Red Mule Group, LLC, an unbuilt microbusiness consisting of manufacturing, distribution and dispensary operations: 700 E. Port Hueneme Rd. • Tech Delivery Solutions, LLC, a delivery-only service: 501 W. Channel Islands Bl., #204
• The Fire Garden, LLC, a dispensary with permitted ancillary delivery service:
2661 N. Ventura Rd.
• Tradecraft Farms-Port Hueneme, LLC (dba “Tradecraft Farms”), a partially builtout microbusiness consisting of dispensary, cultivation and distribution operations:
2597 Bolker Dr.
• Westside Professional Management, LLC (dba “Wheelhouse”), a dispensary with permitted ancillary delivery service and a consumption lounge: 521 W. Channel Islands Bl., #1-6
Causes of Market Corrections
Until about a year ago, the cannabis businesses have been able to generally operate successfully per the City’s cannabis program requirements. However, several factors have caused the revenues generated by the cannabis businesses in the City to level off, if not decrease. These include recently opened (or opening) competing businesses in Oxnard and Ventura, the end of Covid-related stimulus payments, the overall economy in Agenda Item No. 15 Page 2 of 129 CC Agenda 06-17-2024
Amendments to Cannabis Businesses’ Development Agreements June 17, 2024
general, the substantial decrease in the value of cultivated cannabis, and the high tax rates and complicated regulatory process at the state level, which continues to stymie the success of legal cannabis operators vs. the black market.
Recent Program Improvements Approved by City Council
To help ensure the cannabis businesses in Port Hueneme stay competitive in the local cannabis market, the City Council recently approved several amendments to the City’s cannabis program, including allowing cannabis consumption lounges (two are now operational, in conjunction with the Wheelhouse and Skunkmasters dispensaries), expanded hours of operation, allowing up to two temporary events per dispensary or lounge per month without approval of a Special Use Permit, and in the case of the cultivation components of microbusinesses, the City Council reduced the required contractual amount the businesses are required to pay towards the City’s General Fund from five percent (5%) to three percent (3%) of gross revenues. The City also reduced certain fees and requirements to help lower some operating costs for dispensaries.
City’s Contractual Payment and Discussion of “Gross Revenue” With regard to the required contractual payments towards the City’s General Fund, the City does not have a cannabis tax in place, which would secure the above-noted revenues. Instead, the City requires each business to enter into a development agreement with the City as the mechanism to require these payments, which act as consideration for securing predictable design and building standards that may be subject to amendments and changes over the course of a business’ buildout.
The contractual payments are a percentage of the business’ gross revenues (i.e., 5% of a dispensary’s gross revenues, less taxes paid, are required to be paid as a contractual payment to the General Fund). However, since 2017, the standard language in the development agreements has evolved with regard to what is defined as “gross revenue”.
Cannabis sales in California are subject to a 15.0% excise tax as well as state sales taxes.
Until January 1, 2023, the process of collecting and paying the excise tax to the California State Department of Tax and Fee Administration (CDTFA) was the responsibility of the distributor. A distributor, in an arm's length transaction, was responsible for collecting the cannabis excise tax from the cannabis retailer. The retailer was expected to collect the excise tax from the consumer. In theory, the excise taxes collected from the consumer would offset the taxes paid to the distributor. Each cannabis retailer was expected to provide a purchaser with an invoice, receipt, or other document that included a statement that read: "The cannabis excise taxes are included in the total amount of this invoice”.
Setting up for excise taxes, along with sales taxes paid added complexity to the existing Point of Sale systems and there was variation in reporting to the City of the application of the excise taxes by the dispensaries.
Due to variation in reporting, and to apply consistency across all businesses, effective January 1, 2021, the City no longer allowed the exclusion or deduction of state excise tax from gross revenue. The only allowable deduction was sales tax.
Agenda Item No. 15 Page 3 of 129 CC Agenda 06-17-2024
Amendments to Cannabis Businesses’ Development Agreements June 17, 2024
However, effective January 1, 2023, the CDTFA revised its process and shifted the reporting of excise taxes from the distributor the cannabis retailers. The revision in the CDTFA’s process prompted the City to revisit the development agreements for all of the cannabis businesses, specifically the language related to Gross Revenue. After a comprehensive review, it was determined that all but three of the agreements include language which could be interpreted as to allow the deduction of both taxes: sales taxes and excise taxes. Specifically, the development agreements state: “the term ‘gross revenues’ means the total of all revenue, income, compensation, sales proceeds or other monies of whatever kind or nature received by the Project without deduction or offset of any kind, except for payments made by the Developer to the state or the City for licenses or permissions to operate a cannabis facility under applicable state and City law or for taxes collected by the Developer solely for the purposes of forwarding them to a taxing entity, such as sales tax.”
Therefore, in light of the updates to the City’s Cannabis Ordinance and Implementing Resolution, changes to the CDTFA’s reporting of excise taxes, and to standardize the language in all of the development agreements with regard to defining “gross revenue”, it is recommended the agreements between the City and the 17 approved cannabis businesses all be amended to clarify what taxes may be deducted from the definition of “Gross Revenue”.
1% Charitable Contribution Requirement
Further, as the City Council is aware, each business is also required to contribute a minimum of one percent (1%) of their gross revenues to charities and/or non-profits that directly serve the Port Hueneme community (this can also be done with volunteer work, purchase of goods, etc., which add up to the 1% total). However, as noted above, the cannabis market has changed. When the City’s program was established, it was based upon a new and successful cannabis market and thus, the 1% contributions made were substantial. With the changing market, staff anticipates researching whether other agencies maintain this requirement and may make a future recommendation to modify this requirement based on the market. At this time, it is recommended the Development Agreements be modified to including clearer language regarding the requirement. The proposed language in the Agreements has been amended to clearly require payments on a monthly basis and that the payments must specifically benefit the residents of Port Hueneme. This does not change the requirement but is intended to ensure the City receives timely and clear reporting to determine whether the requirement is met.
Clarification of Audit Requirements
In addition, the amendments would enable staff to clarify the annual audit requirements for each business per the procedures that have been put into place since the initial development agreements were approved. Currently, the agreements require the businesses to agree to pay the costs of not more than two audits of their records per year (not including any year-end audit occasioned by a failure of the Developer to produce an audited annual financial report within the required ninety (90) day period, which shall also Agenda Item No. 15 Page 4 of 129 CC Agenda 06-17-2024
Amendments to Cannabis Businesses’ Development Agreements June 17, 2024
be at the Developer’s expense), whether conducted by the City’s in-house staff, or by private accounting or audit firms. However, since the City’s consultants have been conducting only a single, annual audit of each business, the language in each agreement is proposed to reflect the current auditing practice by the City. This proposed change is in line with common practice and will also reduce some unnecessary burden on the operators.
Miscellaneous Recommended Revisions
Lastly, based upon City Council direction, the agreements for Port Hueneme Organic Team, Inc. and Tradecraft are recommended to be revised to reflect additional time to build out the respective businesses and to reflect the 3% General Fund Contribution amount for each of the microbusiness’ cultivation components. It is also recommended that the buildout of the Red Mule facility be extended one year from approval of their Amended Development Agreement (note that since Red Mule will not have a cultivation component, the reduction to 3% does not apply in this case).
Each of the business’ development agreements, revised as proposed herein, follow their respective ordinances for approval, attached.
California Environmental Quality Act (CEQA)
With regard to environmental review, staff recommends the Council find the project exempt from CEQA. This exclusion is set forth in CEQA Guidelines (14 California Code of regulations §§ 15000, et seq.) § 15301, which states: “Class 1 consists of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use beyond that existing at the time of the lead agency‘s determination.” As discussed above, the project consists of amending the terms of the previously approved Development Agreements for each of the cannabis businesses approved to operate in the City. However, this will not result in new or additional development of any of the businesses. Therefore, the project will not have an impact on the environment and is thus, exempt from CEQA.
STRATEGIC PLAN:
Primary Strategic Pillar(s) and Initiative(s):
Innovation & Opportunity
• Retain and maximize opportunities for local businesses as the backbone of our community
• Leverage the existing programs, facilities and technologies of our stakeholders and partners to build new economic opportunities for all • Invest in new programs and technologies to strengthen our economy and attract innovation
FISCAL IMPACT:
Agenda Item No. 15 Page 5 of 129 CC Agenda 06-17-2024
Amendments to Cannabis Businesses’ Development Agreements June 17, 2024
The reduction of the required contractual payment to the General Fund for the cultivation operations of retail microbusinesses from 5% to 3% could have a negative fiscal impact.
However, the reduction would only affect two approved microbusinesses (the third approved microbusiness has a manufacturing component as opposed to a cultivation component, and therefore, would not be affected). Further, it is anticipated that this reduction will encourage the completion of the buildout of each of these business’ facilities (one is partially built-out and the other has not commenced construction), and once operational, the revenues generated would be increased above today’s levels. Any changes to the required 1% charitable contributions will not affect the General Fund, as the payments are made directly from the cannabis businesses to the charitable/non-profit organizations.
ATTACHMENTS:
A. Ordinances and Amended Development Agreements for each of the 17 cannabis businesses approved to operate in the City listed above Agenda Item No. 15 Page 6 of 129 CC Agenda 06-17-2024
ATTACHMENT A
Ordinances and Amended Development Agreements for each of the 17 cannabis businesses approved to operate in the City:
• BB & SE, Inc., a delivery-only service: 2667 N. Ventura Rd. • Bleu Diamond, LLC. a delivery-only service: 501 W. Channel Islands Bl., #202 • Emerald Perspective Cooperative, Inc., a dispensary with permitted ancillary delivery service: 100 W. Pleasant Valley Rd.
• Freedom 1st Association (dba “Skunkmasters”), a dispensary with permitted ancillary delivery service and a consumption lounge: 233 E. Channel Islands Bl. • Front Door Enterprises, LLC (dba “EcoMeds”), a delivery-only service: 521 W. Channel Islands Bl., #13
• FTE Enterprises, Inc. (dba “From the Earth”), a dispensary with permitted ancillary delivery service: 2675 N. Ventura Rd., #106-108
• Innovative Concepts Investments Group, LLC (dba “I Heart Cannabis”), a delivery-only service: 521 W. Channel Islands Bl., #11
• Harbor Management Group, LLC, (dba "Safe Port"), a dispensary with permitted ancillary delivery service: 353 W. Channel Islands Bl.
• Hueneme Patient Consumer Collective, LLC (dba “HPC”), a dispensary with permitted ancillary delivery service: 501 W. Channel Islands Bl., #301-303 • PH Investment Group, LLC (dba “Element 7”), a dispensary with permitted ancillary delivery service: 455 W. Channel Islands Bl.
• Port Hueneme Organic Team, Inc., an unbuilt microbusiness consisting of dispensary, cultivation and distribution operations: 475 W. Channel Islands Bl. • Port Retail, LLC (dba “Tree Factory”), a dispensary with permitted ancillary delivery service: 437 W. Channel Islands Bl.
• Red Mule Group, LLC, an unbuilt microbusiness consisting of manufacturing, distribution and dispensary operations: 700 E. Port Hueneme Rd.
• Tech Delivery Solutions, LLC, a delivery-only service: 501 W. Channel Islands Bl., #204 • The Fire Garden, LLC, a dispensary with permitted ancillary delivery service: 2661 N.
Ventura Rd.
• Tradecraft Farms-Port Hueneme, LLC (dba “Tradecraft Farms”), a partially built-out microbusiness consisting of dispensary, cultivation and distribution operations: 2597 Bolker Dr.
• Westside Professional Management, LLC (dba “Wheelhouse”), a dispensary with permitted ancillary delivery service and a consumption lounge: 521 W. Channel Islands Bl., #1-6
Agenda Item No. 15 Page 7 of 129 CC Agenda 06-17-2024
AMENDMENT No. 1 TO
DEVELOPMENT AGREEMENT
BY AND BETWEEN
CITY OF PORT HUENEME
AND
BB & SE INC.
Agenda Item No. 15 Page 8 of 129 CC Agenda 06-17-2024
THIS FIRST AMENDMENT TO DEVELOPMENT AGREEMENT (“Amendment No. 1”) is dated for reference purposes as of June 17, 2024, and is being entered into by and between the CITY OF PORT HUENEME, a California municipal corporation organized and existing under laws of the State of California ("City") and BB& SE, INC., a California Corporation (“Developer”). The parties to this Agreement may be hereinafter be referred to individually as “Party” or jointly as “Parties”.
RECITALS
WHEREAS, the Parties to this Amendment No.1 previously entered into a Development Agreement dated March 7, 2022 (the “Original Development Agreement”) which was approved by Ordinance of the City Council of the City of Port Hueneme pertaining to the operation of a commercial cannabis business in the City located at 2667 N. Ventura Road, Port Hueneme, all as more fully described in the Original Development Agreement; and
WHEREAS, the Parties deem it desirable to enter into this Amendment No.1 for the purposes of modifying certain terms and provisions of the Original Development Agreement to: (i) amend the definition of Gross Revenues as provided in Section 12 a. of the Original Development Agreement; (ii) modify the audit requirements as provided in Section 12 c. of the Original Development Agreement; and (iii) add clarifying language regarding Community Benefit Contributions.
NOW, THEREFORE, pursuant to the authority of California Government Code Sections 65864 through 65869.5 and the procedures set forth in the Port Hueneme Municipal Code and in consideration of the mutual covenants and promises of the Parties herein contained the Parties agree as follows:
AGREEMENT
A. AMENDMENT OF SECTION 12 a. Section 12 a. of the Original Development Agreement shall be revised to include excise taxes as part of the taxes paid by the Developer which are not to be included in the definition of Gross Revenues.
B. AMENDMENT OF SECTION 12 c. The first sentence of Section 12 c. of the Original Development Agreement is hereby revised to read as follows:
The Developer agrees to pay the cost of an annual audit of its records whether conducted by the City’s in-house staff based upon comparable labor and other costs to private organizations, or by private accounting or audit firms.
C. AMENDMENT OF SECTION 9 e. Section 9 e. shall be amended to read as follows:
Community Benefit Contributions. In addition to all other obligations of the Developer under this Agreement, the Developer shall be obligated to annually expend not less than one percent (1%) of its gross revenues, as defined hereinabove, for community Agenda Item No. 15 Page 9 of 129 CC Agenda 06-17-2024
benefits, which are benefits that improve the City, the life quality or economic life of the City’s residents or are to recognized charitable or other 501(c) organizations where the contribution will benefit the City’s residents in a direct manner. The Developer shall report their contribution monthly on a form that is provided by the City and provide proper support for the contribution to the satisfaction of the City. The City reserves the right to disallow the contribution if it is not properly substantiated and/or does not directly benefit the City’s residents. The satisfaction of this requirement, as well as of the other requirements of this Agreement, are issues which will be reviewed in the annual performance examination of the Developer’s obligations under this Agreement, the CUP and any other agreements or City regulations which may pertain at the time.
D. FULL FORCE AND EFFECT. Except as modified by this Amendment No. 1 the entire Original Development Agreement shall remain in full force-and-effect.
E. RECITALS. The Recitals set forth above are true and correct and incorporated herein by reference.
F. AMENDMENT EFFECTIVE DATE. This Amendment No. 1 shall become effective 30 days following the adoption of Ordinance No.________ by the City Council and subsequent signature by the Mayor (the “Amendment Effective Date”).
IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the day and year first above-written.
Agenda Item No. 15 Page 10 of 129 CC Agenda 06-17-2024
CITY OF PORT HUENEME
By:
Misty Perez
Mayor
ATTEST:
By:
Georgianna Nicole Alvarez
City Clerk
APPROVED AS TO FORM:
By:
Joan Stevens Smyth
City Attorney
APPROVED AS TO CONTENT:
By:
James Vega
City Manager
DEVELOPER:
BB & SE, INC.
By:
Irfan Jaffery
Owner
P:\APPS\WPDATA\PHNE\0005 - Community Development\PHNE5-30 BB & SE\DOC\001-2 Amendment DA BB & SE INC 5-28-24 draft.docx
Agenda Item No. 15 Page 11 of 129 CC Agenda 06-17-2024
ORDINANCE NO. _____
AN ORDINANCE OF THE COUNCIL OF THE CITY OF PORT HUENEME,
CALIFORNIA, APPROVING AND ADOPTING AN AMENDED DEVELOPMENT AGREEMENT UNDER GOVERNMENT CODE SECTIONS 65864 TO 65869.5 AND ORDINANCE NO. 796 OF THE PORT HUENEME MUNICIPAL CODE RELATING TO THE OPERATION OF A CANNABIS FACILITY [BB & SE, INC.] THE CITY COUNCIL DOES ORDAIN AS FOLLOWS:
A. On March 4, 2024, the City Council approved Ordinance No. 796 that amends Article III, Chapter 12 of the Port Hueneme Municipal Code (“PHMC”), entitled "Cannabis Activity"; B. The Ordinance establishes the general requirements for obtaining approval for operating a commercial cannabis activity within the City of Port Hueneme and allowing cultivation for personal medicinal use;
C. The Ordinance requires that an applicant approved to operate a commercial cannabis facility with the City of Port Hueneme shall enter into a Development Agreement with the City;
D. On March 4, 2024, the City Council adopted Resolution No. 4483, which established the procedures and requirements for the consideration of development agreements; E. BB & SE, Inc. (hereinafter, the “Applicant”) is an approved applicant under Ordinance 796 and is thereby authorized, subject to completion of the City’s requirements, to operate a cannabis delivery service within the City; and F. The Applicant and the City have agreed to enter into that certain Amended Development Agreement dated June 17, 2024 between the City and BB & SE, Inc.
SECTION 1: The City Council finds and determines as follows:
A. The Applicant has been approved through the City’s required procedures as an operator of a cannabis delivery service (the “Business”) located at 2667 N. Ventura Rd., Port Hueneme, California, subject only to the issuance of a Conditional Use Permit for the development and construction of the Business and the approval of this Ordinance.
B. The Development Agreement is in a form authorized by Resolution 4483, and drafted, entered into and presented to the City Council in accordance with all requirements of said resolutions and of Ordinance 796.
C. The Development Agreement is:
1. Consistent with the objectives, policies, land uses and programs specified in the general plan and any applicable specific plan of the City;
2. Compatible with the uses and regulations for the land-use area in which the Business is located;
3. In conformity with public convenience, general welfare and good land-use practice;
4. Not detrimental to the health, safety and general welfare; and Agenda Item No. 15 Page 12 of 129 CC Agenda 06-17-2024
Ordinance No. ___, Page 2 of 3
5. Offers the City and the public substantial benefit in exchange for the vested right benefit granted to the Applicant.
D. In approving this Ordinance, the City has complied with the requirements of the California Environmental Quality Act.
SECTION 2: This ordinance is adopted pursuant to the authority granted by the California Constitution and State Law and the Charter of the City of Port Hueneme. The City Manager is authorized to administer this Ordinance and to promulgate such administrative policies and procedures that may be required to implement these Ordinances.
SECTION 3: This Ordinance will take effect on the 31st day following its final adoption and passage.
SECTION 4: The City Clerk of the City is hereby directed to certify to the passage and adoption of this Ordinance and to cause it to be published as required by law.
PASSED and ADOPTED on this ___ day of 2024.
Misty Perez
Mayor
ATTEST:
________________________________
Georgianna Nicole Alvarez
City Clerk
APPROVED AS TO FORM:
________________________________
Joan Stevens Smyth
City Attorney
Agenda Item No. 15 Page 13 of 129 CC Agenda 06-17-2024
Ordinance No. ___, Page 3 of 3
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF VENTURA ) SS.
CITY OF PORT HUENEME )
I, Georgianna Nicole Alvarez, City Clerk of the City of Port Hueneme, California, do hereby certify that the foregoing Ordinance No. ____ was introduced at the regular meeting of _____, 2024, and duly adopted at the regular meeting of ________, 2024, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Dated:
Georgianna Nicole Alvarez
City Clerk
Agenda Item No. 15 Page 14 of 129 CC Agenda 06-17-2024
AMENDMENT No. 1 TO
DEVELOPMENT AGREEMENT
BY AND BETWEEN
CITY OF PORT HUENEME
AND
BLEU DIAMOND
Agenda Item No. 15 Page 15 of 129 CC Agenda 06-17-2024
THIS FIRST AMENDMENT TO DEVELOPMENT AGREEMENT (“Amendment No. 1”) is dated for reference purposes as of June 17, 2024, and is being entered into by and between the CITY OF PORT HUENEME, a California municipal corporation organized and existing under laws of the State of California ("City") and BLEU DIAMOND, LLC, a California Limited Liability Company (“Developer”). The parties to this Agreement may be hereinafter be referred to individually as “Party” or jointly as “Parties”.
RECITALS
WHEREAS, the Parties to this Amendment No.1 previously entered into a Development Agreement dated July 20, 2020 (the “Original Development Agreement”) which was approved by Ordinance of the City Council of the City of Port Hueneme pertaining to the operation of a commercial cannabis business in the City located at 501 Channel Islands Blvd., Suite #202, Port Hueneme, all as more fully described in the Original Development Agreement; and
WHEREAS, the Parties deem it desirable to enter into this Amendment No.1 for the purposes of modifying certain terms and provisions of the Original Development Agreement to: (i) amend the definition of Gross Revenues as provided in Section 12 a. of the Original Development Agreement; (ii) modify the audit requirements as provided in Section 12 c. of the Original Development Agreement; and (iii) add clarifying language regarding Community Benefit Contributions.
NOW, THEREFORE, pursuant to the authority of California Government Code Sections 65864 through 65869.5 and the procedures set forth in the Port Hueneme Municipal Code and in consideration of the mutual covenants and promises of the Parties herein contained the Parties agree as follows:
AGREEMENT
A. AMENDMENT OF SECTION 12 a. Section 12 a. of the Original Development Agreement shall be revised to include excise taxes as part of the taxes paid by the Developer which are not to be included in the definition of Gross Revenues.
B. AMENDMENT OF SECTION 12 c. The first sentence of Section 12 c. of the Original Development Agreement is hereby revised to read as follows:
The Developer agrees to pay the cost of an annual audit of its records whether conducted by the City’s in-house staff based upon comparable labor and other costs to private organizations, or by private accounting or audit firms.
C. AMENDMENT OF SECTION 9 e. Section 9 e. shall be amended to read as follows:
Community Benefit Contributions. In addition to all other obligations of the Developer under this Agreement, the Developer shall be obligated to annually expend not Agenda Item No. 15 Page 16 of 129 CC Agenda 06-17-2024
less than one percent (1%) of its gross revenues, as defined hereinabove, for community benefits, which are benefits that improve the City, the life quality or economic life of the City’s residents or are to recognized charitable or other 501(c) organizations where the contribution will benefit the City’s residents in a direct manner. The Developer shall report their contribution monthly on a form that is provided by the City and provide proper support for the contribution to the satisfaction of the City. The City reserves the right to disallow the contribution if it is not properly substantiated and/or does not directly benefit the City’s residents. The satisfaction of this requirement, as well as of the other requirements of this Agreement, are issues which will be reviewed in the annual performance examination of the Developer’s obligations under this Agreement, the CUP and any other agreements or City regulations which may pertain at the time.
D. FULL FORCE AND EFFECT. Except as modified by this Amendment No. 1 the entire Original Development Agreement shall remain in full force-and-effect.
E. RECITALS. The Recitals set forth above are true and correct and incorporated herein by reference.
F. AMENDMENT EFFECTIVE DATE. This Amendment No. 1 shall become effective 30 days following the adoption of Ordinance No.________ by the City Council and subsequent signature by the Mayor (the “Amendment Effective Date”).
IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the day and year first above-written.
Agenda Item No. 15 Page 17 of 129 CC Agenda 06-17-2024
CITY OF PORT HUENEME
By:
Misty Perez
Mayor
ATTEST:
By:
Georgianna Nicole Alvarez
City Clerk
APPROVED AS TO FORM:
By:
Joan Stevens Smyth
City Attorney
APPROVED AS TO CONTENT:
By:
James Vega
City Manager
DEVELOPER:
BLEU DIAMOND, LLC.
By:
Kristina Valdez
Member and Manager
P:\APPS\WPDATA\PHNE\0005 - Community Development\0005-26 Bleu Diamond\DOCS\001.2 Amendement DA Bleu Diamond 5-28-24 draft.docx
Agenda Item No. 15 Page 18 of 129 CC Agenda 06-17-2024
ORDINANCE NO. _____
AN ORDINANCE OF THE COUNCIL OF THE CITY OF PORT HUENEME,
CALIFORNIA, APPROVING AND ADOPTING AN AMENDED DEVELOPMENT AGREEMENT UNDER GOVERNMENT CODE SECTIONS 65864 TO 65869.5 AND ORDINANCE NO. 796 OF THE PORT HUENEME MUNICIPAL CODE RELATING TO THE OPERATION OF A CANNABIS FACILITY [BLEU
DIAMOND, LLC]
THE CITY COUNCIL DOES ORDAIN AS FOLLOWS:
A. On March 4, 2024, the City Council approved Ordinance No. 796 that amends Article III, Chapter 12 of the Port Hueneme Municipal Code (“PHMC”), entitled "Cannabis Activity"; B. The Ordinance establishes the general requirements for obtaining approval for operating a commercial cannabis activity within the City of Port Hueneme and allowing cultivation for personal medicinal use;
C. The Ordinance requires that an applicant approved to operate a commercial cannabis facility with the City of Port Hueneme shall enter into a Development Agreement with the City;
D. On March 4, 2024, the City Council adopted Resolution No. 4483, which established the procedures and requirements for the consideration of development agreements; E. Bleu Diamond, LLC (hereinafter, the “Applicant”) is an approved applicant under Ordinance 796 and is thereby authorized, subject to completion of the City’s requirements, to operate a cannabis delivery service within the City; and F. The Applicant and the City have agreed to enter into that certain Amended Development Agreement dated June 17, 2024 between the City and Bleu Diamond, LLC.
SECTION 1: The City Council finds and determines as follows:
A. The Applicant has been approved through the City’s required procedures as an operator of a cannabis delivery service (the “Business”) located at 501 W. Channel Islands Blvd., #202, Port Hueneme, California, subject only to the issuance of a Conditional Use Permit for the development and construction of the Business and the approval of this Ordinance.
B. The Development Agreement is in a form authorized by Resolution 4483, and drafted, entered into and presented to the City Council in accordance with all requirements of said resolutions and of Ordinance 796.
C. The Development Agreement is:
1. Consistent with the objectives, policies, land uses and programs specified in the general plan and any applicable specific plan of the City;
2. Compatible with the uses and regulations for the land-use area in which the Business is located;
3. In conformity with public convenience, general welfare and good land-use practice;
4. Not detrimental to the health, safety and general welfare; and Agenda Item No. 15 Page 19 of 129 CC Agenda 06-17-2024
Ordinance No. ___, Page 2 of 3
5. Offers the City and the public substantial benefit in exchange for the vested right benefit granted to the Applicant.
D. In approving this Ordinance, the City has complied with the requirements of the California Environmental Quality Act.
SECTION 2: This ordinance is adopted pursuant to the authority granted by the California Constitution and State Law and the Charter of the City of Port Hueneme. The City Manager is authorized to administer this Ordinance and to promulgate such administrative policies and procedures that may be required to implement these Ordinances.
SECTION 3: This Ordinance will take effect on the 31st day following its final adoption and passage.
SECTION 4: The City Clerk of the City is hereby directed to certify to the passage and adoption of this Ordinance and to cause it to be published as required by law.
PASSED and ADOPTED on this ___ day of 2024.
Misty Perez
Mayor
ATTEST:
________________________________
Georgianna Nicole Alvarez
City Clerk
APPROVED AS TO FORM:
________________________________
Joan Stevens Smyth
City Attorney
Agenda Item No. 15 Page 20 of 129 CC Agenda 06-17-2024
Ordinance No. ___, Page 3 of 3
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF VENTURA ) SS.
CITY OF PORT HUENEME )
I, Georgianna Nicole Alvarez, City Clerk of the City of Port Hueneme, California, do hereby certify that the foregoing Ordinance No. ____ was introduced at the regular meeting of _____, 2024, and duly adopted at the regular meeting of ________, 2024, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Dated:
Georgianna Nicole Alvarez
City Clerk
Agenda Item No. 15 Page 21 of 129 CC Agenda 06-17-2024
AMENDMENT No. 1 TO
DEVELOPMENT AGREEMENT
BY AND BETWEEN
CITY OF PORT HUENEME
AND
FRONT DOOR ENTERPRISES, LLC,
(DBA ECOMEDS)
Agenda Item No. 15 Page 22 of 129 CC Agenda 06-17-2024
THIS FIRST AMENDMENT TO DEVELOPMENT AGREEMENT (“Amendment No. 1”) is dated for reference purposes as of June 17, 2024, and is being entered into by and between the CITY OF PORT HUENEME, a California municipal corporation organized and existing under laws of the State of California ("City") and FRONT DOOR ENTERPRISES, LLC, a California Limited Liability Company, doing business as EcoMeds (“Developer”). The parties to this Agreement may be hereinafter be referred to individually as “Party” or jointly as “Parties”.
RECITALS
WHEREAS, the Parties to this Amendment No.1 previously entered into a Development Agreement dated September 8th, 2020 (the “Original Development Agreement”) which was approved by Ordinance of the City Council of the City of Port Hueneme pertaining to the operation of a commercial cannabis business in the City located at 521 W. Channel Islands Blvd., Suite 13, Port Hueneme, all as more fully described in the Original Development Agreement; and
WHEREAS, the Parties deem it desirable to enter into this Amendment No.1 for the purposes of modifying certain terms and provisions of the Original Development Agreement to: (i) amend the definition of Gross Revenues as provided in Section 12 a. of the Original Development Agreement; (ii) modify the audit requirements as provided in Section 12 c. of the Original Development Agreement; and (iii) add clarifying language regarding Community Benefit Contributions.
NOW, THEREFORE, pursuant to the authority of California Government Code Sections 65864 through 65869.5 and the procedures set forth in the Port Hueneme Municipal Code and in consideration of the mutual covenants and promises of the Parties herein contained the Parties agree as follows:
AGREEMENT
A. AMENDMENT OF SECTION 12 a. Section 12 a. of the Original Development Agreement shall be revised to include excise taxes as part of the taxes paid by the Developer which are not to be included in the definition of Gross Revenues.
B. AMENDMENT OF SECTION 12 c. The first sentence of Section 12 c. of the Original Development Agreement is hereby revised to read as follows:
The Developer agrees to pay the cost of an annual audit of its records whether conducted by the City’s in-house staff based upon comparable labor and other costs to private organizations, or by private accounting or audit firms.
C. AMENDMENT OF SECTION 9 e. Section 9 e. shall be amended to read as follows:
Agenda Item No. 15 Page 23 of 129 CC Agenda 06-17-2024
Community Benefit Contributions. In addition to all other obligations of the Developer under this Agreement, the Developer shall be obligated to annually expend not less than one percent (1%) of its gross revenues, as defined hereinabove, for community benefits, which are benefits that improve the City, the life quality or economic life of the City’s residents or are to recognized charitable or other 501(c) organizations where the contribution will benefit the City’s residents in a direct manner. The Developer shall report their contribution monthly on a form that is provided by the City and provide proper support for the contribution to the satisfaction of the City. The City reserves the right to disallow the contribution if it is not properly substantiated and/or does not directly benefit the City’s residents. The satisfaction of this requirement, as well as of the other requirements of this Agreement, are issues which will be reviewed in the annual performance examination of the Developer’s obligations under this Agreement, the CUP and any other agreements or City regulations which may pertain at the time.
D. FULL FORCE AND EFFECT. Except as modified by this Amendment No. 1 the entire Original Development Agreement shall remain in full force-and-effect.
E. RECITALS. The Recitals set forth above are true and correct and incorporated herein by reference.
F. AMENDMENT EFFECTIVE DATE. This Amendment No. 1 shall become effective 30 days following the adoption of Ordinance No.________ by the City Council and subsequent signature by the Mayor (the “Amendment Effective Date”).
IN WITNESS WHEREOF, the Parties hereto have caused this Amendment No. 1 to the Original Development Agreement to be executed as of the day and year first written above.
Agenda Item No. 15 Page 24 of 129 CC Agenda 06-17-2024
CITY OF PORT HUENEME
By:
Misty Perez
Mayor
ATTEST:
By:
Georgianna Nicole Alvarez
City Clerk
APPROVED AS TO FORM:
By:
Joan Stevens Smyth
City Attorney
APPROVED AS TO CONTENT:
By:
James Vega
City Manager
DEVELOPER:
FRONT DOOR ENTERPRISES, LLC.
By:
Jon Burga
Member and Manager
P:\APPS\WPDATA\PHNE\0005 - Community Development\0005-27 EcoMeds\Docs\001-2 Amendment DA EcoMeds 5.28.24.docx
Agenda Item No. 15 Page 25 of 129 CC Agenda 06-17-2024
ORDINANCE NO. _____
AN ORDINANCE OF THE COUNCIL OF THE CITY OF PORT HUENEME,
CALIFORNIA, APPROVING AND ADOPTING AN AMENDED DEVELOPMENT AGREEMENT UNDER GOVERNMENT CODE SECTIONS 65864 TO 65869.5 AND ORDINANCE NO. 796 OF THE PORT HUENEME MUNICIPAL CODE RELATING TO THE OPERATION OF A CANNABIS FACILITY [FRONT DOOR
ENTERPRISES, LLC]
THE CITY COUNCIL DOES ORDAIN AS FOLLOWS:
A. On March 4, 2024, the City Council approved Ordinance No. 796 that amends Article III, Chapter 12 of the Port Hueneme Municipal Code (“PHMC”), entitled "Cannabis Activity"; B. The Ordinance establishes the general requirements for obtaining approval for operating a commercial cannabis activity within the City of Port Hueneme and allowing cultivation for personal medicinal use;
C. The Ordinance requires that an applicant approved to operate a commercial cannabis facility with the City of Port Hueneme shall enter into a Development Agreement with the City;
D. On March 4, 2024, the City Council adopted Resolution No. 4483, which established the procedures and requirements for the consideration of development agreements; E. Front Door Enterprises, LLC (hereinafter, the “Applicant”) is an approved applicant under Ordinance 796 and is thereby authorized, subject to completion of the City’s requirements, to operate a cannabis delivery service within the City; and F. The Applicant and the City have agreed to enter into that certain Amended Development Agreement dated June 17, 2024 between the City and Front Door Enterprises, LLC.
SECTION 1: The City Council finds and determines as follows:
A. The Applicant has been approved through the City’s required procedures as an operator of a cannabis delivery service (the “Business”) located at 521 W. Channel Islands Blvd., #13, Port Hueneme, California, subject only to the issuance of a Conditional Use Permit for the development and construction of the Business and the approval of this Ordinance.
B. The Development Agreement is in a form authorized by Resolution 4483, and drafted, entered into and presented to the City Council in accordance with all requirements of said resolutions and of Ordinance 796.
C. The Development Agreement is:
1. Consistent with the objectives, policies, land uses and programs specified in the general plan and any applicable specific plan of the City;
2. Compatible with the uses and regulations for the land-use area in which the Business is located;
3. In conformity with public convenience, general welfare and good land-use practice;
4. Not detrimental to the health, safety and general welfare; and Agenda Item No. 15 Page 26 of 129 CC Agenda 06-17-2024
Ordinance No. ___, Page 2 of 3
5. Offers the City and the public substantial benefit in exchange for the vested right benefit granted to the Applicant.
D. In approving this Ordinance, the City has complied with the requirements of the California Environmental Quality Act.
SECTION 2: This ordinance is adopted pursuant to the authority granted by the California Constitution and State Law and the Charter of the City of Port Hueneme. The City Manager is authorized to administer this Ordinance and to promulgate such administrative policies and procedures that may be required to implement these Ordinances.
SECTION 3: This Ordinance will take effect on the 31st day following its final adoption and passage.
SECTION 4: The City Clerk of the City is hereby directed to certify to the passage and adoption of this Ordinance and to cause it to be published as required by law.
PASSED and ADOPTED on this ___ day of 2024.
Misty Perez
Mayor
ATTEST:
________________________________
Georgianna Nicole Alvarez
City Clerk
APPROVED AS TO FORM:
________________________________
Joan Stevens Smyth
City Attorney
Agenda Item No. 15 Page 27 of 129 CC Agenda 06-17-2024
Ordinance No. ___, Page 3 of 3
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF VENTURA ) SS.
CITY OF PORT HUENEME )
I, Georgianna Nicole Alvarez, City Clerk of the City of Port Hueneme, California, do hereby certify that the foregoing Ordinance No. ____ was introduced at the regular meeting of _____, 2024, and duly adopted at the regular meeting of ________, 2024, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Dated:
Georgianna Nicole Alvarez
City Clerk
Agenda Item No. 15 Page 28 of 129 CC Agenda 06-17-2024
AMENDMENT No. 1 TO
DEVELOPMENT AGREEMENT
BY AND BETWEEN
CITY OF PORT HUENEME
AND
PH INVESTMENT GROUP, LLC,
(DBA ELEMENT 7 PORT HUENEME)
Agenda Item No. 15 Page 29 of 129 CC Agenda 06-17-2024
THIS FIRST AMENDMENT TO DEVELOPMENT AGREEMENT (“Amendment No. 1”) is dated for reference purposes as of June 17, 2024, and is being entered into by and between the CITY OF PORT HUENEME, a California municipal corporation organized and existing under laws of the State of California ("City") and PH INVESTMENTS GROUP, LLC, DBA ELEMENT 7 PORT HUENEME, a single member California Limited Liability Company (“Developer”). The parties to this Agreement may be hereinafter be referred to individually as “Party” or jointly as “Parties”.
RECITALS
WHEREAS, the Parties to this Amendment No.1 previously entered into a Development Agreement dated April 5th, 2021 (the “Original Development Agreement”) which was approved by Ordinance of the City Council of the City of Port Hueneme pertaining to the operation of a commercial cannabis business in the City located at 455 W. Channel Islands Boulevard, Port Hueneme, all as more fully described in the Original Development Agreement; and
WHEREAS, the Parties deem it desirable to enter into this Amendment No.1 for the purposes of modifying certain terms and provisions of the Original Development Agreement to: (i) amend the definition of Gross Revenues as provided in Section 12 a. of the Original Development Agreement; (ii) modify the audit requirements as provided in Section 12 c. of the Original Development Agreement; and (iii) add clarifying language regarding Community Benefit Contributions.
NOW, THEREFORE, pursuant to the authority of California Government Code Sections 65864 through 65869.5 and the procedures set forth in the Port Hueneme Municipal Code and in consideration of the mutual covenants and promises of the Parties herein contained the Parties agree as follows:
AGREEMENT
A. AMENDMENT OF SECTION 12 a. Section 12 a. of the Original Development Agreement shall be revised to include excise taxes as part of the taxes paid by the Developer which are not to be included in the definition of Gross Revenues.
B. AMENDMENT OF SECTION 12 c. The first sentence of Section 12 c. of the Original Development Agreement is hereby revised to read as follows:
The Developer agrees to pay the cost of an annual audit of its records whether conducted by the City’s in-house staff based upon comparable labor and other costs to private organizations, or by private accounting or audit firms.
C. AMENDMENT OF SECTION 9 e. Section 9 e. shall be amended to read as follows:
Agenda Item No. 15 Page 30 of 129 CC Agenda 06-17-2024
Community Benefit Contributions. In addition to all other obligations of the Developer under this Agreement, the Developer shall be obligated to annually expend not less than one percent (1%) of its gross revenues, as defined hereinabove, for community benefits, which are benefits that improve the City, the life quality or economic life of the City’s residents or are to recognized charitable or other 501(c) organizations where the contribution will benefit the City’s residents in a direct manner. The Developer shall report their contribution monthly on a form that is provided by the City and provide proper support for the contribution to the satisfaction of the City. The City reserves the right to disallow the contribution if it is not properly substantiated and/or does not directly benefit the City’s residents. The satisfaction of this requirement, as well as of the other requirements of this Agreement, are issues which will be reviewed in the annual performance examination of the Developer’s obligations under this Agreement, the CUP and any other agreements or City regulations which may pertain at the time.
D. FULL FORCE AND EFFECT. Except as modified by this Amendment No. 1 the entire Original Development Agreement shall remain in full force-and-effect.
E. RECITALS. The Recitals set forth above are true and correct and incorporated herein by reference.
F. AMENDMENT EFFECTIVE DATE. This Amendment No. 1 shall become effective 30 days following the adoption of Ordinance No.________ by the City Council and subsequent signature by the Mayor (the “Amendment Effective Date”).
IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the day and year first above-written.
Agenda Item No. 15 Page 31 of 129 CC Agenda 06-17-2024
CITY OF PORT HUENEME
By:
Misty Perez
Mayor
ATTEST:
By:
Georgianna Nicole Alvarez
City Clerk
APPROVED AS TO FORM:
By:
Joan Stevens Smyth
City Attorney
APPROVED AS TO CONTENT:
By:
James Vega
City Manager
DEVELOPER:
PH INVESTMENTS GROUP, LLC.
DBA ELEMENT 7 PORT HUENEME
By:
Robert M. Divito, Jr.
Member and Manager
P:\APPS\WPDATA\PHNE\0005 - Community Development\0005-28 Element 7\Docs\001-3 Amendment DA Element 7 draft watermark 5.31.24.docx
Agenda Item No. 15 Page 32 of 129 CC Agenda 06-17-2024
ORDINANCE NO. _____
AN ORDINANCE OF THE COUNCIL OF THE CITY OF PORT HUENEME,
CALIFORNIA, APPROVING AND ADOPTING AN AMENDED DEVELOPMENT AGREEMENT UNDER GOVERNMENT CODE SECTIONS 65864 TO 65869.5 AND ORDINANCE NO. 796 OF THE PORT HUENEME MUNICIPAL CODE RELATING TO THE OPERATION OF A CANNABIS FACILITY [PH INVESTMENTS, LLC] THE CITY COUNCIL DOES ORDAIN AS FOLLOWS:
A. On March 4, 2024, the City Council approved Ordinance No. 796 that amends Article III, Chapter 12 of the Port Hueneme Municipal Code (“PHMC”), entitled "Cannabis Activity"; B. The Ordinance establishes the general requirements for obtaining approval for operating a commercial cannabis activity within the City of Port Hueneme and allowing cultivation for personal medicinal use;
C. The Ordinance requires that an applicant approved to operate a commercial cannabis facility with the City of Port Hueneme shall enter into a Development Agreement with the City;
D. On March 4, 2024, the City Council adopted Resolution No. 4483, which established the procedures and requirements for the consideration of development agreements; E. PH Investments Group, LLC (hereinafter, the “Applicant”) is an approved applicant under Ordinance 796 and is thereby authorized, subject to completion of the City’s requirements, to operate a cannabis dispensary with ancillary delivery service within the City; and F. The Applicant and the City have agreed to enter into that certain Amended Development Agreement dated June 17, 2024 between the City and PH Investments, LLC.
SECTION 1: The City Council finds and determines as follows:
A. The Applicant has been approved through the City’s required procedures as an operator of a cannabis dispensary with ancillary delivery service (the “Business”) located at 455 W. Channel Islands Blvd., Port Hueneme, California, subject only to the issuance of a Conditional Use Permit for the development and construction of the Business and the approval of this Ordinance.
B. The Development Agreement is in a form authorized by Resolution 4483, and drafted, entered into and presented to the City Council in accordance with all requirements of said resolutions and of Ordinance 796.
C. The Development Agreement is:
1. Consistent with the objectives, policies, land uses and programs specified in the general plan and any applicable specific plan of the City;
2. Compatible with the uses and regulations for the land-use area in which the Business is located;
3. In conformity with public convenience, general welfare and good land-use practice;
4. Not detrimental to the health, safety and general welfare; and Agenda Item No. 15 Page 33 of 129 CC Agenda 06-17-2024
Ordinance No. ___, Page 2 of 3
5. Offers the City and the public substantial benefit in exchange for the vested right benefit granted to the Applicant.
D. In approving this Ordinance, the City has complied with the requirements of the California Environmental Quality Act.
SECTION 2: This ordinance is adopted pursuant to the authority granted by the California Constitution and State Law and the Charter of the City of Port Hueneme. The City Manager is authorized to administer this Ordinance and to promulgate such administrative policies and procedures that may be required to implement these Ordinances.
SECTION 3: This Ordinance will take effect on the 31st day following its final adoption and passage.
SECTION 4: The City Clerk of the City is hereby directed to certify to the passage and adoption of this Ordinance and to cause it to be published as required by law.
PASSED and ADOPTED on this ___ day of 2024.
Misty Perez
Mayor
ATTEST:
________________________________
Georgianna Nicole Alvarez
City Clerk
APPROVED AS TO FORM:
________________________________
Joan Stevens Smyth
City Attorney
Agenda Item No. 15 Page 34 of 129 CC Agenda 06-17-2024
Ordinance No. ___, Page 3 of 3
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF VENTURA ) SS.
CITY OF PORT HUENEME )
I, Georgianna Nicole Alvarez, City Clerk of the City of Port Hueneme, California, do hereby certify that the foregoing Ordinance No. ____ was introduced at the regular meeting of _____, 2024, and duly adopted at the regular meeting of ________, 2024, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Dated:
Georgianna Nicole Alvarez
City Clerk
Agenda Item No. 15 Page 35 of 129 CC Agenda 06-17-2024
AMENDMENT No. 1 TO
DEVELOPMENT AGREEMENT
BY AND BETWEEN
CITY OF PORT HUENEME
AND
EMERALD PERSPECTIVE COOPERATIVE, INC.
Agenda Item No. 15 Page 36 of 129 CC Agenda 06-17-2024
THIS FIRST AMENDMENT TO DEVELOPMENT AGREEMENT (“Amendment No. 1”) is dated for reference purposes as of June 17, 2024, and is being entered into by and between the CITY OF PORT HUENEME, a California municipal corporation organized and existing under laws of the State of California ("City") and EMERALD PERSPECTIVE COOPERATIVE, INC., a California Non-Profit Corporation (“Developer”). The parties to this Agreement may be hereinafter be referred to individually as “Party” or jointly as “Parties”.
RECITALS
WHEREAS, the Parties to this Amendment No.1 previously entered into a Development Agreement dated April 16, 2018 (the “Original Development Agreement”) which was approved by Ordinance of the City Council of the City of Port Hueneme pertaining to the operation of a commercial cannabis business in the City located at 100 W. Pleasant Valley Road, Port Hueneme, all as more fully described in the Original Development Agreement; and
WHEREAS, the Parties deem it desirable to enter into this Amendment No.1 for the purposes of modifying certain terms and provisions of the Original Development Agreement to: (i) amend the definition of Gross Revenues as provided in Section 9 a. of the Original Development Agreement; (ii) modify the audit requirements as provided in Section 9 c. of the Original Development Agreement; and (iii) add clarifying language regarding Community Benefit Contributions.
NOW, THEREFORE, pursuant to the authority provided California Government Code Sections 65864 through 65869.5 and the procedures set forth in the Port Hueneme Municipal Code and in consideration of the mutual covenants and promises of the Parties herein contained the Parties agree as follows:
AGREEMENT
A. AMENDMENT OF SECTION 9 a. of the Original Development Agreement shall be revised to include any excise taxes as part of any taxes paid by the Developer which are not to be included in the definition of Gross Revenues.
B. AMENDMENT OF SECTION 9 c. The first sentence of Section 9 c. of the Original Development Agreement is hereby revised to read as follows:
The Developer agrees to pay the cost of an annual audit of its records whether conducted by the City’s in-house staff, based upon comparable labor and other costs to private organizations, or by private accounting or audit firms.
C. ADDITION OF NEW SECTION 9 f. A new section 9 f. shall be added to the Original Development Agreement to read as follows:
Agenda Item No. 15 Page 37 of 129 CC Agenda 06-17-2024
Community Benefit Contributions. In addition to all other obligations of the Developer under this Agreement, the Developer shall be obligated to annually expend not less than one percent (1%) of its gross revenues, as defined hereinabove, for community benefits, which are benefits that improve the City, the life quality or economic life of the City’s residents or are to recognized charitable or other 501(c) organizations where the contribution will benefit the City’s residents in a direct manner. The Developer shall report their contribution monthly on a form that is provided by the City and provide proper support for the contribution to the satisfaction of the City. The City reserves the right to disallow the contribution if it is not properly substantiated and/or does not directly benefit the City’s residents. The satisfaction of this requirement, as well as of the other requirements of this Agreement, are issues which will be reviewed in the annual performance examination of the Developer’s obligations under this Agreement, the CUP and any other agreements or City regulations which may pertain at the time.
D. FULL FORCE AND EFFECT. Except as modified by this Amendment No. 1 the Development Agreement shall remain in full force-and-effect.
E. RECITALS. The Recitals set forth above are true and correct and incorporated herein by reference.
F. AMENDMENT EFFECTIVE DATE. This Amendment No. 1 shall become effective 30 days following the adoption of Ordinance No.________ by the City Council and subsequent signature by the Mayor (the “Amendment Effective Date”).
IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the day and year first written above.
Agenda Item No. 15 Page 38 of 129 CC Agenda 06-17-2024
CITY OF PORT HUENEME
By:
Misty Perez
Mayor
ATTEST:
By:
Georgianna Nicole Alvarez
City Clerk
APPROVED AS TO FORM:
By:
Joan Stevens Smyth
City Attorney
APPROVED AS TO CONTENT:
By:
James Vega
City Manager
DEVELOPER: EMERALD PERSPECTIVE
COOPERATIVE, INC.
By:
R. Mead Whippo Jr.
President
P:\APPS\WPDATA\PHNE\0005 - Community Development\0005-12 Emerald Perspective Dispensary\DOC\007-6 Amendment DA 5-31-24 Draft.docx
Agenda Item No. 15 Page 39 of 129 CC Agenda 06-17-2024
ORDINANCE NO. _____
AN ORDINANCE OF THE COUNCIL OF THE CITY OF PORT HUENEME,
CALIFORNIA, APPROVING AND ADOPTING AN AMENDED DEVELOPMENT AGREEMENT UNDER GOVERNMENT CODE SECTIONS 65864 TO 65869.5 AND ORDINANCE NO. 796 OF THE PORT HUENEME MUNICIPAL CODE RELATING TO THE OPERATION OF A CANNABIS FACILITY [EMERALD PERSPECTIVE COOPERATIVE, INC.]
THE CITY COUNCIL DOES ORDAIN AS FOLLOWS:
A. On March 4, 2024, the City Council approved Ordinance No. 796 that amends Article III, Chapter 12 of the Port Hueneme Municipal Code (“PHMC”), entitled "Cannabis Activity"; B. The Ordinance establishes the general requirements for obtaining approval for operating a commercial cannabis activity within the City of Port Hueneme and allowing cultivation for personal medicinal use;
C. The Ordinance requires that an applicant approved to operate a commercial cannabis facility with the City of Port Hueneme shall enter into a Development Agreement with the City;
D. On March 4, 2024, the City Council adopted Resolution No. 4483, which established the procedures and requirements for the consideration of development agreements; E. Emerald Perspective Cooperative, Inc. (hereinafter, the “Applicant”) is an approved applicant under Ordinance 796 and is thereby authorized, subject to completion of the City’s requirements, to operate a cannabis dispensary with ancillary delivery service within the City; and
F. The Applicant and the City have agreed to enter into that certain Amended Development Agreement dated June 17, 2024 between the City and Emerald Perspective Cooperative, Inc.
SECTION 1: The City Council finds and determines as follows:
A. The Applicant has been approved through the City’s required procedures as an operator of a cannabis dispensary with ancillary delivery service (the “Business”) located at 100 W. Pleasant Valley Road, Port Hueneme, California, subject only to the issuance of a Conditional Use Permit for the development and construction of the Business and the approval of this Ordinance.
B. The Development Agreement is in a form authorized by Resolution 4483, and drafted, entered into and presented to the City Council in accordance with all requirements of said resolutions and of Ordinance 796.
C. The Development Agreement is:
1. Consistent with the objectives, policies, land uses and programs specified in the general plan and any applicable specific plan of the City;
2. Compatible with the uses and regulations for the land-use area in which the Business is located;
3. In conformity with public convenience, general welfare and good land-use practice;
Agenda Item No. 15 Page 40 of 129 CC Agenda 06-17-2024
Ordinance No. ___, Page 2 of 3
4. Not detrimental to the health, safety and general welfare; and
5. Offers the City and the public substantial benefit in exchange for the vested right benefit granted to the Applicant.
D. In approving this Ordinance, the City has complied with the requirements of the California Environmental Quality Act.
SECTION 2: This ordinance is adopted pursuant to the authority granted by the California Constitution and State Law and the Charter of the City of Port Hueneme. The City Manager is authorized to administer this Ordinance and to promulgate such administrative policies and procedures that may be required to implement these Ordinances.
SECTION 3: This Ordinance will take effect on the 31st day following its final adoption and passage.
SECTION 4: The City Clerk of the City is hereby directed to certify to the passage and adoption of this Ordinance and to cause it to be published as required by law.
PASSED and ADOPTED on this ___ day of 2024.
Misty Perez
Mayor
ATTEST:
________________________________
Georgianna Nicole Alvarez
City Clerk
APPROVED AS TO FORM:
________________________________
Joan Stevens Smyth
City Attorney
Agenda Item No. 15 Page 41 of 129 CC Agenda 06-17-2024
Ordinance No. ___, Page 3 of 3
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF VENTURA ) SS.
CITY OF PORT HUENEME )
I, Georgianna Nicole Alvarez, City Clerk of the City of Port Hueneme, California, do hereby certify that the foregoing Ordinance No. ____ was introduced at the regular meeting of _____, 2024, and duly adopted at the regular meeting of ________, 2024, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Dated:
Georgianna Nicole Alvarez
City Clerk
Agenda Item No. 15 Page 42 of 129 CC Agenda 06-17-2024
AMENDMENT No. 1 TO
DEVELOPMENT AGREEMENT
BY AND BETWEEN
CITY OF PORT HUENEME
AND
THE FIRE GARDEN
Agenda Item No. 15 Page 43 of 129 CC Agenda 06-17-2024
THIS FIRST AMENDMENT TO DEVELOPMENT AGREEMENT (“Amendment No. 1”) is dated for reference purposes as of June 17, 2024, and is being entered into by and between the CITY OF PORT HUENEME, a California municipal corporation organized and existing under laws of the State of California ("City") and THE FIRE GARDEN, a California Limited Liability Company (“Developer”). The parties to this Agreement may be hereinafter be referred to individually as “Party” or jointly as “Parties”.
RECITALS
WHEREAS, the Parties to this Amendment No.1 previously entered into a Development Agreement dated March 7, 2022 (the “Original Development Agreement”) which was approved by Ordinance of the City Council of the City of Port Hueneme pertaining to the operation of a commercial cannabis business in the City located at 2661 N. Ventura Road, Port Hueneme, all as more fully described in the Original Development Agreement; and
WHEREAS, the Parties deem it desirable to enter into this Amendment No.1 for the purposes of modifying certain terms and provisions of the Original Development Agreement to: (i) amend the definition of Gross Revenues as provided in Section 12 a. of the Original Development Agreement; (ii) modify the audit requirements as provided in Section 12 c. of the Original Development Agreement; and (iii) add clarifying language regarding Community Benefit Contributions.
NOW, THEREFORE, pursuant to the authority of California Government Code Sections 65864 through 65869.5 and the procedures set forth in the Port Hueneme Municipal Code and in consideration of the mutual covenants and promises of the Parties herein contained the Parties agree as follows:
AGREEMENT
A. AMENDMENT OF SECTION 12 a. Section 12 a. of the Original Development Agreement shall be revised to include excise taxes as part of the taxes paid by the Developer which are not to be included in the definition of Gross Revenues.
B. AMENDMENT OF SECTION 12 c. The first sentence of Section 12 c. of the Original Development Agreement is hereby revised to read as follows:
The Developer agrees to pay the cost of an annual audit of its records whether conducted by the City’s in-house staff based upon comparable labor and other costs to private organizations, or by private accounting or audit firms.
C. AMENDMENT OF SECTION 9 e. Section 9 e. shall be amended to read as follows:
Community Benefit Contributions. In addition to all other obligations of the Developer under this Agreement, the Developer shall be obligated to annually expend not Agenda Item No. 15 Page 44 of 129 CC Agenda 06-17-2024
less than one percent (1%) of its gross revenues, as defined hereinabove, for community benefits, which are benefits that improve the City, the life quality or economic life of the City’s residents or are to recognized charitable or other 501(c) organizations where the contribution will benefit the City’s residents in a direct manner. The Developer shall report their contribution monthly on a form that is provided by the City and provide proper support for the contribution to the satisfaction of the City. The City reserves the right to disallow the contribution if it is not properly substantiated and/or does not directly benefit the City’s residents. The satisfaction of this requirement, as well as of the other requirements of this Agreement, are issues which will be reviewed in the annual performance examination of the Developer’s obligations under this Agreement, the CUP and any other agreements or City regulations which may pertain at the time.
D. FULL FORCE AND EFFECT. Except as modified by this Amendment No. 1 the entire Original Development Agreement shall remain in full force-and-effect.
E. RECITALS. The Recitals set forth above are true and correct and incorporated herein by reference.
F. AMENDMENT EFFECTIVE DATE. This Amendment No. 1 shall become effective 30 days following the adoption of Ordinance No.________ by the City Council and subsequent signature by the Mayor (the “Amendment Effective Date”).
IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the day and year first above-written.
Agenda Item No. 15 Page 45 of 129 CC Agenda 06-17-2024
CITY OF PORT HUENEME
By:
Misty Perez
Mayor
ATTEST:
By:
Georgianna Nicole Alvarez
City Clerk
APPROVED AS TO FORM:
By:
Joan Stevens Smyth
City Attorney
APPROVED AS TO CONTENT:
By:
James Vega
City Manager
DEVELOPER:
THE FIRE GARDEN
By:______________________________
David Albanese
Owner
P:\APPS\WPDATA\PHNE\0005 - Community Development\0005-26 FireGarden\DOCS\001.2 Amendement DA The Fire Garden 5-29-24 draft.docx
Agenda Item No. 15 Page 46 of 129 CC Agenda 06-17-2024
ORDINANCE NO. _____
AN ORDINANCE OF THE COUNCIL OF THE CITY OF PORT HUENEME,
CALIFORNIA, APPROVING AND ADOPTING AN AMENDED DEVELOPMENT AGREEMENT UNDER GOVERNMENT CODE SECTIONS 65864 TO 65869.5 AND ORDINANCE NO. 796 OF THE PORT HUENEME MUNICIPAL CODE RELATING TO THE OPERATION OF A CANNABIS FACILITY [THE FIRE GARDEN, LLC]
THE CITY COUNCIL DOES ORDAIN AS FOLLOWS:
A. On March 4, 2024, the City Council approved Ordinance No. 796 that amends Article III, Chapter 12 of the Port Hueneme Municipal Code (“PHMC”), entitled "Cannabis Activity"; B. The Ordinance establishes the general requirements for obtaining approval for operating a commercial cannabis activity within the City of Port Hueneme and allowing cultivation for personal medicinal use;
C. The Ordinance requires that an applicant approved to operate a commercial cannabis facility with the City of Port Hueneme shall enter into a Development Agreement with the City;
D. On March 4, 2024, the City Council adopted Resolution No. 4483, which established the procedures and requirements for the consideration of development agreements; E. The Fire Garden, LLC (hereinafter, the “Applicant”) is an approved applicant under Ordinance 796 and is thereby authorized, subject to completion of the City’s requirements, to operate a cannabis dispensary with ancillary delivery service within the City; and F. The Applicant and the City have agreed to enter into that certain Amended Development Agreement dated June 17, 2024 between the City and The Fire Garden, LLC.
SECTION 1: The City Council finds and determines as follows:
A. The Applicant has been approved through the City’s required procedures as an operator of a cannabis dispensary with ancillary delivery service (the “Business”) located at 2661 N. Ventura Road, Port Hueneme, California, subject only to the issuance of a Conditional Use Permit for the development and construction of the Business and the approval of this Ordinance.
B. The Development Agreement is in a form authorized by Resolution 4483, and drafted, entered into and presented to the City Council in accordance with all requirements of said resolutions and of Ordinance 796.
C. The Development Agreement is:
1. Consistent with the objectives, policies, land uses and programs specified in the general plan and any applicable specific plan of the City;
2. Compatible with the uses and regulations for the land-use area in which the Business is located;
3. In conformity with public convenience, general welfare and good land-use practice;
4. Not detrimental to the health, safety and general welfare; and Agenda Item No. 15 Page 47 of 129 CC Agenda 06-17-2024
Ordinance No. ___, Page 2 of 3
5. Offers the City and the public substantial benefit in exchange for the vested right benefit granted to the Applicant.
D. In approving this Ordinance, the City has complied with the requirements of the California Environmental Quality Act.
SECTION 2: This ordinance is adopted pursuant to the authority granted by the California Constitution and State Law and the Charter of the City of Port Hueneme. The City Manager is authorized to administer this Ordinance and to promulgate such administrative policies and procedures that may be required to implement these Ordinances.
SECTION 3: This Ordinance will take effect on the 31st day following its final adoption and passage.
SECTION 4: The City Clerk of the City is hereby directed to certify to the passage and adoption of this Ordinance and to cause it to be published as required by law.
PASSED and ADOPTED on this ___ day of 2024.
Misty Perez
Mayor
ATTEST:
________________________________
Georgianna Nicole Alvarez
City Clerk
APPROVED AS TO FORM:
________________________________
Joan Stevens Smyth
City Attorney
Agenda Item No. 15 Page 48 of 129 CC Agenda 06-17-2024
Ordinance No. ___, Page 3 of 3
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF VENTURA ) SS.
CITY OF PORT HUENEME )
I, Georgianna Nicole Alvarez, City Clerk of the City of Port Hueneme, California, do hereby certify that the foregoing Ordinance No. ____ was introduced at the regular meeting of _____, 2024, and duly adopted at the regular meeting of ________, 2024, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Dated:
Georgianna Nicole Alvarez
City Clerk
Agenda Item No. 15 Page 49 of 129 CC Agenda 06-17-2024
AMENDMENT No. 1 TO
THE AMENDED DEVELOPMENT AGREEMENT
BY AND BETWEEN
CITY OF PORT HUENEME
AND
FTE ENTERPRISES, LLC.
(DBA FROM THE EARTH)
Agenda Item No. 15 Page 50 of 129 CC Agenda 06-17-2024
THIS FIRST AMENDMENT TO AMENDED DEVELOPMENT AGREEMENT
(“Amendment No. 1”) is dated for reference purposes as of June 17, 2024, and is being entered into by and between the CITY OF PORT HUENEME, a California municipal corporation organized and existing under laws of the State of California ("City") and FTE ENTERPRISES, LLC. A California Limited Liability Company (“Developer”). The parties to this Agreement may be hereinafter referred to individually as “Party” or jointly as “Parties”.
RECITALS
WHEREAS, the Parties to this Amendment No.1 previously entered into that certain Development Agreement dated April 16, 2018, by and between the City and DBO Investments PH, LLC, which is the predecessor in interest to Developer (the “Original Development Agreement”) which was approved by Ordinance of the City Council of the City of Port Hueneme pertaining to the operation of a commercial cannabis business in the City located at 2675 North Ventura Road, Port Hueneme, all as more fully described in the Original Development Agreement. DBO Investments PH, LLC subsequently changed its name to FTE Enterprises, LLC; and
WHEREAS, the Parties subsequently entered into an Amended Development Agreement dated May 21, 2018 approved by Ordinance of the City Council making certain revisions to the Original Development Agreement (the “Amended Development Agreement”). The Amended Development Agreement essentially superseded the Original Development Agreement. Hereinafter the Original Development Agreement and the Amended Development Agreement shall be collectively referred to as the “Development Agreement”; and
WHEREAS, the Parties deem it desirable to enter into this Amendment No.1 for the purposes of modifying certain terms and provisions of the Original Development Agreement as modified by the Amended Development Agreement to: (i) amend the definition of Gross Revenues as provided in Section 9 a. of the Amended Development Agreement; (ii) modify the audit requirements as provided in Section 9 c. of the Amended Development Agreement; and (iii) add clarifying language regarding Community Benefit Contributions.
NOW, THEREFORE, pursuant to the authority provided California Government Code Sections 65864 through 65869.5 and the procedures set forth in the Port Hueneme Municipal Code and in consideration of the mutual covenants and promises of the Parties herein contained the Parties agree as follows:
AGREEMENT
A. AMENDMENT OF SECTION 9 a. of the Amended Development Agreement shall be revised to include any excise taxes as part of any taxes paid by the Developer which are not to be included in the definition of Gross Revenues.
Agenda Item No. 15 Page 51 of 129 CC Agenda 06-17-2024
B. AMENDMENT OF SECTION 9 c. The first sentence of Section 9 c. of the Amended Development Agreement is hereby revised to read as follows:
The Developer agrees to pay the cost of an annual audit of its records whether conducted by the City’s in-house staff, based upon comparable labor and other costs to private organizations, or by private accounting or audit firms.
C. ADDITION OF NEW SECTION 9 e. A new section 9 e. shall be added to the Amended Development Agreement to read as follows:
Community Benefit Contributions. In addition to all other obligations of the Developer under this Agreement, the Developer shall be obligated to annually expend not less than one percent (1%) of its gross revenues, as defined hereinabove, for community benefits, which are benefits that improve the City, the life quality or economic life of the City’s residents or are to recognized charitable or other 501(c) organizations where the contribution will benefit the City’s residents in a direct manner. The Developer shall report their contribution monthly on a form that is provided by the City and provide proper support for the contribution to the satisfaction of the City. The City reserves the right to disallow the contribution if it is not properly substantiated and/or does not directly benefit the City’s residents. The satisfaction of this requirement, as well as of the other requirements of this Agreement, are issues which will be reviewed in the annual performance examination of the Developer’s obligations under this Agreement, the CUP and any other agreements or City regulations which may pertain at the time.
D. FULL FORCE AND EFFECT. Except as modified by this Amendment No. 1 the Amended Development Agreement shall remain in full force-and-effect.
E. RECITALS. The Recitals set forth above are true and correct and incorporated herein by reference.
F. AMENDMENT EFFECTIVE DATE. This Amendment No. 1 shall become effective 30 days following the adoption of Ordinance No.________ by the City Council and subsequent signature by the Mayor (the “Amendment Effective Date”).
IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the day and year first above-written.
Agenda Item No. 15 Page 52 of 129 CC Agenda 06-17-2024
CITY OF PORT HUENEME
By:
Misty Perez
Mayor
ATTEST:
By:
Georgianna Nicole Alvarez
City Clerk
APPROVED AS TO FORM:
By:
Joan Stevens Smyth
City Attorney
APPROVED AS TO CONTENT:
By:
James Vega
City Manager
DEVELOPER:
FTE ENTERPRISES, LLC
By:
Kintu Patel
Managing Member
P:\APPS\WPDATA\PHNE\0005 - Community Development\0005-09 DBO- Dispensary\DOC\001.3 Amendment DA FTE ENTERPRISES DBA FROM THE EARTH 5.30.24.docx
Agenda Item No. 15 Page 53 of 129 CC Agenda 06-17-2024
ORDINANCE NO. _____
AN ORDINANCE OF THE COUNCIL OF THE CITY OF PORT HUENEME,
CALIFORNIA, APPROVING AND ADOPTING AN AMENDED DEVELOPMENT AGREEMENT UNDER GOVERNMENT CODE SECTIONS 65864 TO 65869.5 AND ORDINANCE NO. 796 OF THE PORT HUENEME MUNICIPAL CODE RELATING TO THE OPERATION OF A CANNABIS FACILITY [FTE
ENTERPRISES, INC.]
THE CITY COUNCIL DOES ORDAIN AS FOLLOWS:
A. On March 4, 2024, the City Council approved Ordinance No. 796 that amends Article III, Chapter 12 of the Port Hueneme Municipal Code (“PHMC”), entitled "Cannabis Activity"; B. The Ordinance establishes the general requirements for obtaining approval for operating a commercial cannabis activity within the City of Port Hueneme and allowing cultivation for personal medicinal use;
C. The Ordinance requires that an applicant approved to operate a commercial cannabis facility with the City of Port Hueneme shall enter into a Development Agreement with the City;
D. On March 4, 2024, the City Council adopted Resolution No. 4483, which established the procedures and requirements for the consideration of development agreements; E. FTE Enterprises, Inc. (hereinafter, the “Applicant”) is an approved applicant under Ordinance 796 and is thereby authorized, subject to completion of the City’s requirements, to operate a cannabis dispensary with ancillary delivery service within the City; and F. The Applicant and the City have agreed to enter into that certain Amended Development Agreement dated June 17, 2024 between the City and FTE Enterprises, Inc.
SECTION 1: The City Council finds and determines as follows:
A. The Applicant has been approved through the City’s required procedures as an operator of a cannabis dispensary with ancillary delivery service (the “Business”) located at 2675 N. Ventura Road #106-108, Port Hueneme, California, subject only to the issuance of a Conditional Use Permit for the development and construction of the Business and the approval of this Ordinance.
B. The Development Agreement is in a form authorized by Resolution 4483, and drafted, entered into and presented to the City Council in accordance with all requirements of said resolutions and of Ordinance 796.
C. The Development Agreement is:
1. Consistent with the objectives, policies, land uses and programs specified in the general plan and any applicable specific plan of the City;
2. Compatible with the uses and regulations for the land-use area in which the Business is located;
3. In conformity with public convenience, general welfare and good land-use practice;
4. Not detrimental to the health, safety and general welfare; and Agenda Item No. 15 Page 54 of 129 CC Agenda 06-17-2024
Ordinance No. ___, Page 2 of 3
5. Offers the City and the public substantial benefit in exchange for the vested right benefit granted to the Applicant.
D. In approving this Ordinance, the City has complied with the requirements of the California Environmental Quality Act.
SECTION 2: This ordinance is adopted pursuant to the authority granted by the California Constitution and State Law and the Charter of the City of Port Hueneme. The City Manager is authorized to administer this Ordinance and to promulgate such administrative policies and procedures that may be required to implement these Ordinances.
SECTION 3: This Ordinance will take effect on the 31st day following its final adoption and passage.
SECTION 4: The City Clerk of the City is hereby directed to certify to the passage and adoption of this Ordinance and to cause it to be published as required by law.
PASSED and ADOPTED on this ___ day of 2024.
Misty Perez
Mayor
ATTEST:
________________________________
Georgianna Nicole Alvarez
City Clerk
APPROVED AS TO FORM:
________________________________
Joan Stevens Smyth
City Attorney
Agenda Item No. 15 Page 55 of 129 CC Agenda 06-17-2024
Ordinance No. ___, Page 3 of 3
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF VENTURA ) SS.
CITY OF PORT HUENEME )
I, Georgianna Nicole Alvarez, City Clerk of the City of Port Hueneme, California, do hereby certify that the foregoing Ordinance No. ____ was introduced at the regular meeting of _____, 2024, and duly adopted at the regular meeting of ________, 2024, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Dated:
Georgianna Nicole Alvarez
City Clerk
Agenda Item No. 15 Page 56 of 129 CC Agenda 06-17-2024
AMENDMENT No. 1 TO
THE SECOND AMENDED DEVELOPMENT AGREEMENT
BY AND BETWEEN
CITY OF PORT HUENEME
AND
HUENEME PATIENT CONSUMER COLLECTIVE, LLC.
Agenda Item No. 15 Page 57 of 129 CC Agenda 06-17-2024
THIS FIRST AMENDMENT TO THE SECOND AMENDED DEVELOPMENT
AGREEMENT (“Amendment No. 1”) is dated for reference purposes as of June 17, 2024, and is being entered into by and between the CITY OF PORT HUENEME, a California municipal corporation organized and existing under laws of the State of California ("City") and HUENEME PATIENT CONSUMER COLLECTIVE, LLC. a California Limited Liability Company (“Developer”). The parties to this Agreement may be hereinafter referred to individually as “Party” or jointly as “Parties”.
RECITALS
WHEREAS, the Parties to this Amendment No.1 previously entered into a Development Agreement dated October 16, 2017 (the “Original Development Agreement”) which was approved by Ordinance of the City Council of the City of Port Hueneme pertaining to the operation of a commercial cannabis business in the City located at 501 W. Channel Islands Boulevard, Suites #302-303, Port Hueneme, all as more fully described in the Original Development Agreement; and WHEREAS, the Parties subsequently entered into an Amended Development Agreement dated May 21, 2018 approved by Ordinance of the City Council making certain revisions to the Original Development Agreement (the “Amended Development Agreement”). The Amended Development Agreement essentially superseded the Original Development Agreement; and
WHEREAS, The Parties subsequently entered into a Second Amended Development Agreement dated January 21, 2020 (the “Second Amended Development Agreement”) pursuant to which Developer was able to expand its operations into adjoining suite #301 of 501 W. Channel Islands Blvd., all as more fully described in the Second Amended Development Agreement; and
WHEREAS, the Parties deem it desirable to enter into this Amendment No.1 for the purposes of modifying certain terms and provisions of the Second Amended Development Agreement to: (i) amend the definition of Gross Revenues as provided in Section 12 a. of the Second Amended Development Agreement; (ii) modify the audit requirements as provided in Section 9 c. of the Second Amended Development Agreement; and (iii) add clarifying language regarding Community Benefit Contributions.
NOW, THEREFORE, pursuant to the authority provided California Government Code Sections 65864 through 65869.5 and the procedures set forth in the Port Hueneme Municipal Code and in consideration of the mutual covenants and promises of the Parties herein contained the Parties agree as follows:
AGREEMENT
A. AMENDMENT OF SECTION 12 a. The first sentence of Section 12 a. of the Second Amended Development Agreement shall be revised to include any excise taxes as part Agenda Item No. 15 Page 58 of 129 CC Agenda 06-17-2024
of any taxes paid by the Developer which are not to be included in the definition of Gross Revenues.
B. AMENDMENT OF SECTION 12 c. The first sentence of Section 12 c. of the Second Amended Development Agreement is hereby revised to read as follows:
The Developer agrees to pay the cost of an annual audit of its records whether conducted by the City’s in-house staff, based upon comparable labor and other costs to private organizations, or by private accounting or audit firms.
C. ADDITION OF NEW SECTION 12 e. A new section 12 e. shall be added to the Second Amended Development Agreement to read as follows:
Community Benefit Contributions. In addition to all other obligations of the Developer under this Agreement, the Developer shall be obligated to annually expend not less than one percent (1%) of its gross revenues, as defined hereinabove, for community benefits, which are benefits that improve the City, the life quality or economic life of the City’s residents or are to recognized charitable or other 501(c) organizations where the contribution will benefit the City’s residents in a direct manner. The Developer shall report their contribution monthly on a form that is provided by the City and provide proper support for the contribution to the satisfaction of the City. The City reserves the right to disallow the contribution if it is not properly substantiated and/or does not directly benefit the City’s residents. The satisfaction of this requirement, as well as of the other requirements of this Agreement, are issues which will be reviewed in the annual performance examination of the Developer’s obligations under this Agreement, the CUP and any other agreements or City regulations which may pertain at the time.
D. FULL FORCE AND EFFECT. Except as modified by this Amendment No. 1 the Second Amended Development Agreement shall remain in full force-and-effect.
E. RECITALS. The Recitals set forth above are true and correct and incorporated herein by reference.
F. AMENDMENT EFFECTIVE DATE. This Amendment No. 1 shall become effective 30 days following the adoption of Ordinance No.________ by the City Council and subsequent signature by the Mayor (the “Amendment No. 1 Effective Date”).
IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the day and year first above-written.
Agenda Item No. 15 Page 59 of 129 CC Agenda 06-17-2024
CITY OF PORT HUENEME
By:
Misty Perez
Mayor
ATTEST:
By:
Georgianna Nicole Alvarez
City Clerk
APPROVED AS TO FORM:
By:
Joan Stevens Smyth
City Attorney
APPROVED AS TO CONTENT:
By:
James Vega
City Manager
DEVELOPER: HUENEME PATIENT
CONSUMER COLLECTIVE, LLC
By:
Beth Thuna
Managing Member
P:\APPS\WPDATA\PHNE\0005 - Community Development\0005-06 Hueneme Patient Consumer Coop\DOC\001.2 Amendment DA Hueneme Patient Consumer Collective 5.30.24.docx Agenda Item No. 15 Page 60 of 129 CC Agenda 06-17-2024
ORDINANCE NO. _____
AN ORDINANCE OF THE COUNCIL OF THE CITY OF PORT HUENEME,
CALIFORNIA, APPROVING AND ADOPTING AN AMENDED DEVELOPMENT AGREEMENT UNDER GOVERNMENT CODE SECTIONS 65864 TO 65869.5 AND ORDINANCE NO. 796 OF THE PORT HUENEME MUNICIPAL CODE RELATING TO THE OPERATION OF A CANNABIS FACILITY [HUENEME PATIENT CONSUMER COLLECTIVE, LLC]
THE CITY COUNCIL DOES ORDAIN AS FOLLOWS:
A. On March 4, 2024, the City Council approved Ordinance No. 796 that amends Article III, Chapter 12 of the Port Hueneme Municipal Code (“PHMC”), entitled "Cannabis Activity"; B. The Ordinance establishes the general requirements for obtaining approval for operating a commercial cannabis activity within the City of Port Hueneme and allowing cultivation for personal medicinal use;
C. The Ordinance requires that an applicant approved to operate a commercial cannabis facility with the City of Port Hueneme shall enter into a Development Agreement with the City;
D. On March 4, 2024, the City Council adopted Resolution No. 4483, which established the procedures and requirements for the consideration of development agreements; E. Hueneme Patient Consumer Collective, LLC (hereinafter, the “Applicant”) is an approved applicant under Ordinance 796 and is thereby authorized, subject to completion of the City’s requirements, to operate a cannabis dispensary with ancillary delivery service within the City; and
F. The Applicant and the City have agreed to enter into that certain Amended Development Agreement dated June 17, 2024 between the City and Hueneme Patient Consumer Collective, LLC.
SECTION 1: The City Council finds and determines as follows:
A. The Applicant has been approved through the City’s required procedures as an operator of a cannabis dispensary with ancillary delivery services (the “Business”) located at 501 W. Channel Islands Boulevard, Suites 301-303, Port Hueneme, California, subject only to the issuance of a Conditional Use Permit for the development and construction of the Business and the approval of this Ordinance.
B. The Development Agreement is in a form authorized by Resolution 4483, and drafted, entered into and presented to the City Council in accordance with all requirements of said resolutions and of Ordinance 796.
C. The Development Agreement is:
1. Consistent with the objectives, policies, land uses and programs specified in the general plan and any applicable specific plan of the City;
2. Compatible with the uses and regulations for the land-use area in which the Business is located;
3. In conformity with public convenience, general welfare and good land-use practice;
Agenda Item No. 15 Page 61 of 129 CC Agenda 06-17-2024
Ordinance No. ___, Page 2 of 3
4. Not detrimental to the health, safety and general welfare; and
5. Offers the City and the public substantial benefit in exchange for the vested right benefit granted to the Applicant.
D. In approving this Ordinance, the City has complied with the requirements of the California Environmental Quality Act.
SECTION 2: This ordinance is adopted pursuant to the authority granted by the California Constitution and State Law and the Charter of the City of Port Hueneme. The City Manager is authorized to administer this Ordinance and to promulgate such administrative policies and procedures that may be required to implement these Ordinances.
SECTION 3: This Ordinance will take effect on the 31st day following its final adoption and passage.
SECTION 4: The City Clerk of the City is hereby directed to certify to the passage and adoption of this Ordinance and to cause it to be published as required by law.
PASSED and ADOPTED on this ___ day of 2024.
Misty Perez
Mayor
ATTEST:
________________________________
Georgianna Nicole Alvarez
City Clerk
APPROVED AS TO FORM:
________________________________
Joan Stevens Smyth
City Attorney
Agenda Item No. 15 Page 62 of 129 CC Agenda 06-17-2024
Ordinance No. ___, Page 3 of 3
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF VENTURA ) SS.
CITY OF PORT HUENEME )
I, Georgianna Nicole Alvarez, City Clerk of the City of Port Hueneme, California, do hereby certify that the foregoing Ordinance No. ____ was introduced at the regular meeting of _____, 2024, and duly adopted at the regular meeting of ________, 2024, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Dated:
Georgianna Nicole Alvarez
City Clerk
Agenda Item No. 15 Page 63 of 129 CC Agenda 06-17-2024
AMENDMENT No. 1 TO
DEVELOPMENT AGREEMENT
BY AND BETWEEN
CITY OF PORT HUENEME
AND
INNOVATIVE CONCEPTS INVESTMENTS GROUP, LLC
(DBA I HEART CANNABIS)
Agenda Item No. 15 Page 64 of 129 CC Agenda 06-17-2024
THIS FIRST AMENDMENT TO DEVELOPMENT AGREEMENT (“Amendment No. 1”) is dated for reference purposes as of June 17, 2024, and is being entered into by and between the CITY OF PORT HUENEME, a California municipal corporation organized and existing under laws of the State of California ("City") and INNOVATIVE CONCEPTS INVESTMENTS GROUP, LLC, a California Limited Liability Company (“Developer”). The parties to this Agreement may be hereinafter be referred to individually as “Party” or jointly as “Parties”.
RECITALS
WHEREAS, the Parties to this Amendment No.1 previously entered into a Development Agreement dated May 4
TH, 2020 (the “Original Development Agreement”)
which was approved by Ordinance of the City Council of the City of Port Hueneme pertaining to the operation of a commercial cannabis business in the City located at 521 W. Channel Islands Blvd., Suite # 11, Port Hueneme, all as more fully described in the Original Development Agreement; and
WHEREAS, the Parties deem it desirable to enter into this Amendment No.1 for the purposes of modifying certain terms and provisions of the Original Development Agreement to: (i) amend the definition of Gross Revenues as provided in Section 12 a. of the Original Development Agreement; (ii) modify the audit requirements as provided in Section 12 c. of the Original Development Agreement; and (iii) add clarifying language regarding Community Benefit Contributions.
NOW, THEREFORE, pursuant to the authority of California Government Code Sections 65864 through 65869.5 and the procedures set forth in the Port Hueneme Municipal Code and in consideration of the mutual covenants and promises of the Parties herein contained the Parties agree as follows:
AGREEMENT
A. AMENDMENT OF SECTION 12 a. Section 12 a. of the Original Development Agreement shall be revised to include excise taxes as part of the taxes paid by the Developer which are not to be included in the definition of Gross Revenues.
B. AMENDMENT OF SECTION 12 c. The first sentence of Section 12 c. of the Original Development Agreement is hereby revised to read as follows:
The Developer agrees to pay the cost of an annual audit of its records whether conducted by the City’s in-house staff based upon comparable labor and other costs to private organizations, or by private accounting or audit firms.
C. AMENDMENT OF SECTION 9 e. Section 9 e. shall be amended to read as follows:
Agenda Item No. 15 Page 65 of 129 CC Agenda 06-17-2024
Community Benefit Contributions. In addition to all other obligations of the Developer under this Agreement, the Developer shall be obligated to annually expend not less than one percent (1%) of its gross revenues, as defined hereinabove, for community benefits, which are benefits that improve the City, the life quality or economic life of the City’s residents or are to recognized charitable or other 501(c) organizations where the contribution will benefit the City’s residents in a direct manner. The Developer shall report their contribution monthly on a form that is provided by the City and provide proper support for the contribution to the satisfaction of the City. The City reserves the right to disallow the contribution if it is not properly substantiated and/or does not directly benefit the City’s residents. The satisfaction of this requirement, as well as of the other requirements of this Agreement, are issues which will be reviewed in the annual performance examination of the Developer’s obligations under this Agreement, the CUP and any other agreements or City regulations which may pertain at the time.
D. FULL FORCE AND EFFECT. Except as modified by this Amendment No. 1 the entire Original Development Agreement shall remain in full force-and-effect.
E. RECITALS. The Recitals set forth above are true and correct and incorporated herein by reference.
F. AMENDMENT EFFECTIVE DATE. This Amendment No. 1 shall become effective 30 days following the adoption of Ordinance No.________ by the City Council and subsequent signature by the Mayor (the “Amendment Effective Date”).
IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the day and year first above-written.
Agenda Item No. 15 Page 66 of 129 CC Agenda 06-17-2024
CITY OF PORT HUENEME
By:
Misty Perez
Mayor
ATTEST:
By:
Georgianna Nicole Alvarez
City Clerk
APPROVED AS TO FORM:
By:
Joan Stevens Smyth
City Attorney
APPROVED AS TO CONTENT:
By:
James Vega
City Manager
DEVELOPER: INNOVATIVE CONCEPTS
INVESTMENTS GROUP, LLC
By:
Joel Conception
Member and Manager
P:\APPS\WPDATA\PHNE\0005 - Community Development\0005-25 Innovative Concepts Invetsment Group\DOCS\001.3 Amendement DA INNOVATIVE CONCEPTS INV. 5-30-24 draft.docx Agenda Item No. 15 Page 67 of 129 CC Agenda 06-17-2024
ORDINANCE NO. _____
AN ORDINANCE OF THE COUNCIL OF THE CITY OF PORT HUENEME,
CALIFORNIA, APPROVING AND ADOPTING AN AMENDED DEVELOPMENT AGREEMENT UNDER GOVERNMENT CODE SECTIONS 65864 TO 65869.5 AND ORDINANCE NO. 796 OF THE PORT HUENEME MUNICIPAL CODE RELATING TO THE OPERATION OF A CANNABIS FACILITY [INNOVATIVE CONCEPTS INVESTMENTS GROUP, LLC]
THE CITY COUNCIL DOES ORDAIN AS FOLLOWS:
A. On March 4, 2024, the City Council approved Ordinance No. 796 that amends Article III, Chapter 12 of the Port Hueneme Municipal Code (“PHMC”), entitled "Cannabis Activity"; B. The Ordinance establishes the general requirements for obtaining approval for operating a commercial cannabis activity within the City of Port Hueneme and allowing cultivation for personal medicinal use;
C. The Ordinance requires that an applicant approved to operate a commercial cannabis facility with the City of Port Hueneme shall enter into a Development Agreement with the City;
D. On March 4, 2024, the City Council adopted Resolution No. 4483, which established the procedures and requirements for the consideration of development agreements; E. Innovative Concepts Investments Group, LLC (hereinafter, the “Applicant”) is an approved applicant under Ordinance 796 and is thereby authorized, subject to completion of the City’s requirements, to operate a cannabis delivery service within the City; and F. The Applicant and the City have agreed to enter into that certain Amended Development Agreement dated June 17, 2024 between the City and Innovative Concepts Investments Group, LLC.
SECTION 1: The City Council finds and determines as follows:
A. The Applicant has been approved through the City’s required procedures as an operator of a cannabis delivery service (the “Business”) located at 521 W. Channel Islands Blvd. #11, Port Hueneme, California, subject only to the issuance of a Conditional Use Permit for the development and construction of the Business and the approval of this Ordinance.
B. The Development Agreement is in a form authorized by Resolution 4483, and drafted, entered into and presented to the City Council in accordance with all requirements of said resolutions and of Ordinance 796.
C. The Development Agreement is:
1. Consistent with the objectives, policies, land uses and programs specified in the general plan and any applicable specific plan of the City;
2. Compatible with the uses and regulations for the land-use area in which the Business is located;
3. In conformity with public convenience, general welfare and good land-use practice;
4. Not detrimental to the health, safety and general welfare; and Agenda Item No. 15 Page 68 of 129 CC Agenda 06-17-2024
Ordinance No. ___, Page 2 of 3
5. Offers the City and the public substantial benefit in exchange for the vested right benefit granted to the Applicant.
D. In approving this Ordinance, the City has complied with the requirements of the California Environmental Quality Act.
SECTION 2: This ordinance is adopted pursuant to the authority granted by the California Constitution and State Law and the Charter of the City of Port Hueneme. The City Manager is authorized to administer this Ordinance and to promulgate such administrative policies and procedures that may be required to implement these Ordinances.
SECTION 3: This Ordinance will take effect on the 31st day following its final adoption and passage.
SECTION 4: The City Clerk of the City is hereby directed to certify to the passage and adoption of this Ordinance and to cause it to be published as required by law.
PASSED and ADOPTED on this ___ day of 2024.
Misty Perez
Mayor
ATTEST:
________________________________
Georgianna Nicole Alvarez
City Clerk
APPROVED AS TO FORM:
________________________________
Joan Stevens Smyth
City Attorney
Agenda Item No. 15 Page 69 of 129 CC Agenda 06-17-2024
Ordinance No. ___, Page 3 of 3
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF VENTURA ) SS.
CITY OF PORT HUENEME )
I, Georgianna Nicole Alvarez, City Clerk of the City of Port Hueneme, California, do hereby certify that the foregoing Ordinance No. ____ was introduced at the regular meeting of _____, 2024, and duly adopted at the regular meeting of ________, 2024, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Dated:
Georgianna Nicole Alvarez
City Clerk
Agenda Item No. 15 Page 70 of 129 CC Agenda 06-17-2024
AMENDMENT No. 1 TO
DEVELOPMENT AGREEMENT
BY AND BETWEEN
CITY OF PORT HUENEME
AND
PORT HUENEME ORGANIC TEAM, INC.
Agenda Item No. 15 Page 71 of 129 CC Agenda 06-17-2024
THIS FIRST AMENDMENT TO DEVELOPMENT AGREEMENT (“Amendment No. 1”) is dated for reference purposes as of June 17, 2024, and is being entered into by and between the CITY OF PORT HUENEME, a California Municipal Corporation organized and existing under laws of the State of California ("City") and PORT HUENEME ORGANIC TEAM, INC. a California Corporation (“Developer”). The parties to this Agreement may be hereinafter be referred to individually as “Party” or jointly as “Parties”.
RECITALS
WHEREAS, the Parties to this Amendment No.1 previously entered into a Development Agreement dated November 18, 2019 (the “Original Development Agreement”) which was approved by Ordinance of the City Council of the City of Port Hueneme pertaining to the operation of a commercial cannabis business in the City located at 475 W. Channel Islands Blvd., suites 102, 103, 104, 107 and 201-213, Port Hueneme, all as more fully described in the Original Development Agreement; and WHEREAS, the development of the Project has been delayed to date but, notwithstanding such delays, the Parties seek to cooperate in good faith to cause the development of the Project in a manner consistent with the intent of the Original Development Agreement and as such, deem it necessary to establish a Completion Date for the Project; and
WHEREAS, the Parties deem it desirable to enter into this Amendment No.1 for the purposes of modifying certain terms and provisions of the Original Development Agreement to: (i) establish a new Project Completion Deadline; (ii) redefine the amounts representing “ Additional Revenue” as defined in Section 12 of the Original Development Agreement; (iii) amend the definition of Gross Revenues as provided in Section 12 a. of the Original Development Agreement; (iv) modify the audit requirements as provided in Section 12 c. of the Original Development Agreement; and (v) add clarifying language regarding Community Benefit Contributions.
NOW, THEREFORE, pursuant to the authority of California Government Code Sections 65864 through 65869.5 and the procedures set forth in the Port Hueneme Municipal Code and in consideration of the mutual covenants and promises of the Parties herein contained the Parties agree as follows:
AGREEMENT
A. AMENDMENT OF SECTION 7. Section 7 of the Original Development Agreement will be amended in its entirety to read as follows:
Deadline for Project Completion. The Developer shall complete its Project and open the Project for operation and generation of revenues prior to June 30th, 2025. A failure to obtain a Certificate of Occupancy for the Property prior to June 30th, 2025, shall nullify this Agreement.
Agenda Item No. 15 Page 72 of 129 CC Agenda 06-17-2024
B. AMENDMENT OF SECTION 12. The third sentence of the first paragraph of Section 12 entitled City Goals shall be revised in its entirety to read as follows:
In addition to the employment opportunities provided by the operation of the Project, and to the increase in sales taxes applicable to the sale of cannabis products as may be applied to such sales, the City’s primary benefit, and its primary consideration for entering into this Agreement, is the agreement, covenant and promise by the Developer to pay to the City and annual amount equal to, five percent (5%) of the annual gross retail and distribution revenues of the Project and three percent (3%) of any revenues derived from cannabis cultivation related to the Project (the “Additional Revenues”).
C. AMENDMENT OF SECTION 12 a. Section 12 a. of the Original Development Agreement shall be revised to include excise taxes as part of the taxes paid by the Developer which are not to be included in the definition of Gross Revenues.
D. AMENDMENT OF SECTION 12 c. The first sentence of Section 12 c. of the Original Development Agreement is hereby revised to read as follows:
The Developer agrees to pay the cost of an annual audit of its records whether conducted by the City’s in-house staff based upon comparable labor and other costs to private organizations, or by private accounting or audit firms.
E. ADDITION OF NEW SECTION 12 e. A new Section 12 e. shall be added to the Original Development Agreement to read as follows:
Community Benefit Contributions. In addition to all other obligations of the Developer under this Agreement, the Developer shall be obligated to annually expend not less than one percent (1%) of its gross revenues, as defined hereinabove, for community benefits, which are benefits that improve the City, the life quality or economic life of the City’s residents or are to recognized charitable or other 501(c) organizations where the contribution will benefit the City’s residents in a direct manner. The Developer shall report their contribution monthly on a form that is provided by the City and provide proper support for the contribution to the satisfaction of the City. The City reserves the right to disallow the contribution if it is not properly substantiated and/or does not directly benefit the City’s residents. The satisfaction of this requirement, as well as of the other requirements of this Agreement, are issues which will be reviewed in the annual performance examination of the Developer’s obligations under this Agreement, the CUP and any other agreements or City regulations which may pertain at the time.
F. FULL FORCE AND EFFECT. Except as modified by this Amendment No. 1, the entire Original Development Agreement shall remain in full force-and-effect.
G. RECITALS. The Recitals set forth above a true and correct incorporated herein by reference.
Agenda Item No. 15 Page 73 of 129 CC Agenda 06-17-2024
H. AMENDMENT EFFECTIVE DATE. This Amendment No. 1 shall become effective 30 days following the adoption of Ordinance No.________ by the City Council and subsequent signature by the Mayor (the “Amendment Effective Date”).
IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the day and year first above-written.
Agenda Item No. 15 Page 74 of 129 CC Agenda 06-17-2024
CITY OF PORT HUENEME
By:
Misty Perez
Mayor
ATTEST:
By:
Georgianna Nicole Alvarez
City Clerk
APPROVED AS TO FORM:
By:
Joan Stevens Smyth
City Attorney
APPROVED AS TO CONTENT:
By:
James Vega
City Manager
DEVELOPER:
PORT HUENEME ORGANIC TEAM, INC.
By:
Reuben Hoang
Chief Executive Officer
Agenda Item No. 15 Page 75 of 129 CC Agenda 06-17-2024
ORDINANCE NO. _____
AN ORDINANCE OF THE COUNCIL OF THE CITY OF PORT HUENEME,
CALIFORNIA, APPROVING AND ADOPTING AN AMENDED DEVELOPMENT AGREEMENT UNDER GOVERNMENT CODE SECTIONS 65864 TO 65869.5 AND ORDINANCE NO. 796 OF THE PORT HUENEME MUNICIPAL CODE RELATING TO THE OPERATION OF A CANNABIS FACILITY [PORT
HUENEME ORGANIC TEAM, INC.]
THE CITY COUNCIL DOES ORDAIN AS FOLLOWS:
A. On March 4, 2024, the City Council approved Ordinance No. 796 that amends Article III, Chapter 12 of the Port Hueneme Municipal Code (“PHMC”), entitled "Cannabis Activity"; B. The Ordinance establishes the general requirements for obtaining approval for operating a commercial cannabis activity within the City of Port Hueneme and allowing cultivation for personal medicinal use;
C. The Ordinance requires that an applicant approved to operate a commercial cannabis facility with the City of Port Hueneme shall enter into a Development Agreement with the City;
D. On March 4, 2024, the City Council adopted Resolution No. 4483, which established the procedures and requirements for the consideration of development agreements; E. Port Hueneme Organic Team, Inc. (hereinafter, the “Applicant”) is an approved applicant under Ordinance 796 and is thereby authorized, subject to completion of the City’s requirements, to operate a cannabis microbusiness, consisting of a retail dispensary with delivery services, cultivation and ancillary distribution components within the City; and F. The Applicant and the City have agreed to enter into that certain Amended Development Agreement dated June 17, 2024 between the City and Port Hueneme Organic Team, Inc.
SECTION 1: The City Council finds and determines as follows:
A. The Applicant has been approved through the City’s required procedures as an operator of a cannabis microbusiness, consisting of a retail dispensary with delivery services, cultivation and ancillary distribution components (the “Business”) located at 475 W. Channel Islands Blvd. #102-104, 107, and 201-213, Port Hueneme, California, subject only to the issuance of a Conditional Use Permit for the development and construction of the Business and the approval of this Ordinance.
B. The Development Agreement is in a form authorized by Resolution 4483, and drafted, entered into and presented to the City Council in accordance with all requirements of said resolutions and of Ordinance 796.
C. The Development Agreement is:
1. Consistent with the objectives, policies, land uses and programs specified in the general plan and any applicable specific plan of the City;
2. Compatible with the uses and regulations for the land-use area in which the Business is located;
Agenda Item No. 15 Page 76 of 129 CC Agenda 06-17-2024
Ordinance No. ___, Page 2 of 3
3. In conformity with public convenience, general welfare and good land-use practice;
4. Not detrimental to the health, safety and general welfare; and
5. Offers the City and the public substantial benefit in exchange for the vested right benefit granted to the Applicant.
D. In approving this Ordinance, the City has complied with the requirements of the California Environmental Quality Act.
SECTION 2: This ordinance is adopted pursuant to the authority granted by the California Constitution and State Law and the Charter of the City of Port Hueneme. The City Manager is authorized to administer this Ordinance and to promulgate such administrative policies and procedures that may be required to implement these Ordinances.
SECTION 3: This Ordinance will take effect on the 31st day following its final adoption and passage.
SECTION 4: The City Clerk of the City is hereby directed to certify to the passage and adoption of this Ordinance and to cause it to be published as required by law.
PASSED and ADOPTED on this ___ day of 2024.
Misty Perez
Mayor
ATTEST:
________________________________
Georgianna Nicole Alvarez
City Clerk
APPROVED AS TO FORM:
________________________________
Joan Stevens Smyth
City Attorney
Agenda Item No. 15 Page 77 of 129 CC Agenda 06-17-2024
Ordinance No. ___, Page 3 of 3
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF VENTURA ) SS.
CITY OF PORT HUENEME )
I, Georgianna Nicole Alvarez, City Clerk of the City of Port Hueneme, California, do hereby certify that the foregoing Ordinance No. ____ was introduced at the regular meeting of _____, 2024, and duly adopted at the regular meeting of ________, 2024, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Dated:
Georgianna Nicole Alvarez
City Clerk
Agenda Item No. 15 Page 78 of 129 CC Agenda 06-17-2024
AMENDMENT No. 1 TO
DEVELOPMENT AGREEMENT
BY AND BETWEEN
CITY OF PORT HUENEME
AND
RED MULE GROUP, LLC.
Agenda Item No. 15 Page 79 of 129 CC Agenda 06-17-2024
THIS FIRST AMENDMENT TO DEVELOPMENT AGREEMENT (“Amendment No. 1”) is dated for reference purposes as of June 17, 2024, and is being entered into by and between the CITY OF PORT HUENEME, a California Municipal Corporation organized and existing under laws of the State of California ("City") and RED MULE GROUP, LLC. a California Limited Liability Company (“Developer”). The parties to this Agreement may be hereinafter be referred to individually as “Party” or jointly as “Parties”.
RECITALS
WHEREAS, the Parties to this Amendment No.1 previously entered into a Development Agreement (the “Original Development Agreement”) which was approved by Ordinance of the City Council of the City of Port Hueneme on July 19, 2021 pertaining to the operation of a commercial cannabis business in the City located at 700 E. Port Hueneme Road, Port Hueneme, all as more fully described in the Original Development Agreement; and
WHEREAS, the development of the Project has been delayed to date but, notwithstanding such delays, the Parties seek to cooperate in good faith to cause the development of the Project in a manner consistent with the intent of the Original Development Agreement and as such, deem it necessary to establish a Completion Date for the Project; and
WHEREAS, the Parties further deem it desirable to enter into this Amendment No.1 for the purposes of modifying certain terms and provisions of the Original Development Agreement to: (i) amend the definition of Gross Revenues as provided in Section 11 (e) (i) of the Original Development Agreement; (ii) modify the audit requirements as provided in Section 11 (e) (iv) of the Original Development Agreement; and (iii) add clarifying language regarding Community Benefit Contributions.
NOW, THEREFORE, pursuant to the authority of California Government Code Sections 65864 through 65869.5 and the procedures set forth in the Port Hueneme Municipal Code and in consideration of the mutual covenants and promises of the Parties herein contained the Parties agree as follows:
AGREEMENT
A. AMENDMENT OF SECTION 10. Section 10 of the Original Development Agreement is hereby amended by the addition of a second paragraph to read as follows:
Further, notwithstanding anything to the contrary herein the Developer shall cause the completion of the Project prior to June 30, 2025. A failure to obtain a Certificate of Occupancy for the Project prior to June 30, 2025, shall nullify this Agreement unless said date is extended in writing by the Parties hereto.
Agenda Item No. 15 Page 80 of 129 CC Agenda 06-17-2024
B. AMENDMENT OF SECTION 11 (e) (i). Section 11 (e) (i) of the Original Development Agreement shall be revised to include excise taxes as part of the taxes paid by the Developer which are not to be included in the definition of Gross Revenues.
C. AMENDMENT OF SECTION 11 (e) (ii). Section 11 (e) (ii) of the Original Development Agreement is hereby amended to read as follows:
In addition, Developer will utilize an ongoing amount for the term of the Development Agreement of one percent (1%) of the Gross Revenues per year to support community non-profit organizations and associations whose efforts are directed solely toward improving the City or the quality of life of its residents, and such other similar purposes as the City may approve in writing (the “Community Contributions”). The contributions discussed in this subsection (ii) are part of the Additional Revenues. The Developer shall report their contribution monthly on a form that is provided by the City and provide proper support for the contribution to the satisfaction of the City. The City reserves the right to disallow the contribution if it is not properly substantiated and/or does not directly benefit the City’s residents. Developer understands and agrees that the annual review of its performance under the Development Agreement can and will consider the payment of all of the Additional Revenues, both as to amount and timeliness.
D. AMENDMENT OF SECTION 11 (e) (iv). The first sentence of Section 11 (e) (iv) of the Original Development Agreement is hereby revised to read as follows:
The Developer agrees to pay the cost of an annual audit of its records whether conducted by the City’s in-house staff based upon comparable labor and other costs to private organizations, or by private accounting or audit firms.
E. FULL FORCE AND EFFECT. Except as modified by this Amendment No. 1, the entire Original Development Agreement and any Exhibits thereto shall remain in full force-andeffect.
F. RECITALS. The Recitals set forth above a true and correct incorporated herein by reference.
G. AMENDMENT EFFECTIVE DATE. This Amendment No. 1 shall become effective 30 days following the adoption of Ordinance No.________ by the City Council and subsequent signature by the Mayor (the “Amendment Effective Date”).
IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the day and year first above-written.
Agenda Item No. 15 Page 81 of 129 CC Agenda 06-17-2024
CITY OF PORT HUENEME
By:
Misty Perez
Mayor
ATTEST:
By:
Georgianna Nicole Alvarez
City Clerk
APPROVED AS TO FORM:
By:
Joan Stevens Smyth
City Attorney
APPROVED AS TO CONTENT:
By:
James Vega
City Manager
DEVELOPER:
RED MULE GROUP, LLC.
By:
Christopher Dery
Managing Member
By:_______________________________
Developer’s Counsel
P:\APPS\WPDATA\PHNE\0005 - Community Development\0005-16 700 E. Hueneme Rd (Red Mule as of 9-18)\DOCS\9.3 Amendment DA RED MULE GROUP,LLC 5-31-24 .docx Agenda Item No. 15 Page 82 of 129 CC Agenda 06-17-2024
ORDINANCE NO. _____
AN ORDINANCE OF THE COUNCIL OF THE CITY OF PORT HUENEME,
CALIFORNIA, APPROVING AND ADOPTING AN AMENDED DEVELOPMENT AGREEMENT UNDER GOVERNMENT CODE SECTIONS 65864 TO 65869.5 AND ORDINANCE NO. 796 OF THE PORT HUENEME MUNICIPAL CODE RELATING TO THE OPERATION OF A CANNABIS FACILITY [RED MULE GROUP, LLC]
THE CITY COUNCIL DOES ORDAIN AS FOLLOWS:
A. On March 4, 2024, the City Council approved Ordinance No. 796 that amends Article III, Chapter 12 of the Port Hueneme Municipal Code (“PHMC”), entitled "Cannabis Activity"; B. The Ordinance establishes the general requirements for obtaining approval for operating a commercial cannabis activity within the City of Port Hueneme and allowing cultivation for personal medicinal use;
C. The Ordinance requires that an applicant approved to operate a commercial cannabis facility with the City of Port Hueneme shall enter into a Development Agreement with the City;
D. On March 4, 2024, the City Council adopted Resolution No. 4483, which established the procedures and requirements for the consideration of development agreements; E. Red Mule Group, LLC (hereinafter, the “Applicant”) is an approved applicant under Ordinance 796 and is thereby authorized, subject to completion of the City’s requirements, to operate a cannabis microbusiness, consisting of manufacturing, distribution and ancillary retail dispensary with delivery service components within the City; and F. The Applicant and the City have agreed to enter into that certain Amended Development Agreement dated June 17, 2024 between the City and Red Mule Group, LLC.
SECTION 1: The City Council finds and determines as follows:
A. The Applicant has been approved through the City’s required procedures as an operator of a cannabis microbusiness, consisting of manufacturing, distribution and ancillary retail dispensary with delivery service components (the “Business”) located at 700 E. Port Hueneme Road, Port Hueneme, California, subject only to the issuance of a Conditional Use Permit for the development and construction of the Business and the approval of this Ordinance.
B. The Development Agreement is in a form authorized by Resolution 4483, and drafted, entered into and presented to the City Council in accordance with all requirements of said resolutions and of Ordinance 796.
C. The Development Agreement is:
1. Consistent with the objectives, policies, land uses and programs specified in the general plan and any applicable specific plan of the City;
2. Compatible with the uses and regulations for the land-use area in which the Business is located;
3. In conformity with public convenience, general welfare and good land-use practice;
Agenda Item No. 15 Page 83 of 129 CC Agenda 06-17-2024
Ordinance No. ___, Page 2 of 3
4. Not detrimental to the health, safety and general welfare; and
5. Offers the City and the public substantial benefit in exchange for the vested right benefit granted to the Applicant.
D. In approving this Ordinance, the City has complied with the requirements of the California Environmental Quality Act.
SECTION 2: This ordinance is adopted pursuant to the authority granted by the California Constitution and State Law and the Charter of the City of Port Hueneme. The City Manager is authorized to administer this Ordinance and to promulgate such administrative policies and procedures that may be required to implement these Ordinances.
SECTION 3: This Ordinance will take effect on the 31st day following its final adoption and passage.
SECTION 4: The City Clerk of the City is hereby directed to certify to the passage and adoption of this Ordinance and to cause it to be published as required by law.
PASSED and ADOPTED on this ___ day of 2024.
Misty Perez
Mayor
ATTEST:
________________________________
Georgianna Nicole Alvarez
City Clerk
APPROVED AS TO FORM:
________________________________
Joan Stevens Smyth
City Attorney
Agenda Item No. 15 Page 84 of 129 CC Agenda 06-17-2024
Ordinance No. ___, Page 3 of 3
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF VENTURA ) SS.
CITY OF PORT HUENEME )
I, Georgianna Nicole Alvarez, City Clerk of the City of Port Hueneme, California, do hereby certify that the foregoing Ordinance No. ____ was introduced at the regular meeting of _____, 2024, and duly adopted at the regular meeting of ________, 2024, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Dated:
Georgianna Nicole Alvarez
City Clerk
Agenda Item No. 15 Page 85 of 129 CC Agenda 06-17-2024
AMENDMENT No. 1 TO
THE AMENDED DEVELOPMENT AGREEMENT
BY AND BETWEEN
CITY OF PORT HUENEME
AND
HARBOR MANAGEMENT GROUP, LLC.
(DBA SAFEPORT)
Agenda Item No. 15 Page 86 of 129 CC Agenda 06-17-2024
THIS FIRST AMENDMENT TO AMENDED DEVELOPMENT AGREEMENT
(“Amendment No. 1”) is dated for reference purposes as of June 17, 2024, and is being entered into by and between the CITY OF PORT HUENEME, a California municipal corporation organized and existing under laws of the State of California ("City") and HARBOR MANAGEMENT GROUP, LLC. a Limited Liability California Corporation (“Developer”). The parties to this Agreement may be hereinafter referred to individually as “Party” or jointly as “Parties”.
RECITALS
WHEREAS, the Parties to this Amendment No.1 previously entered into a Development Agreement dated December 4, 2017 (the “Original Development Agreement”) which was approved by Ordinance of the City Council of the City of Port Hueneme pertaining to the operation of a commercial cannabis business in the City located at 353 W. Channel Islands Boulevard, Port Hueneme, all as more fully described in the Original Development Agreement; and
WHEREAS, the Parties subsequently entered into an Amended Development Agreement dated May 21, 2018 approved by Ordinance of the City Council making certain revisions to the Original Development Agreement (the “Amended Development Agreement”). The Amended Development Agreement essentially superseded the Original Development Agreement. Hereinafter the Original Development Agreement and the Amended Development Agreement shall be collectively referred to as the “Development Agreement”; and
WHEREAS, the Parties deem it desirable to enter into this Amendment No.1 for the purposes of modifying certain terms and provisions of the Original Development Agreement as modified by the Amended Development Agreement to: (i) amend the definition of Gross Revenues as provided in Section 9 a. of the Amended Development Agreement; (ii) modify the audit requirements as provided in Section 9 c. of the Amended Development Agreement; and (iii) add clarifying language regarding Community Benefit Contributions.
NOW, THEREFORE, pursuant to the authority provided California Government Code Sections 65864 through 65869.5 and the procedures set forth in the Port Hueneme Municipal Code and in consideration of the mutual covenants and promises of the Parties herein contained the Parties agree as follows:
AGREEMENT
A. AMENDMENT OF SECTION 9 a. of the Amended Development Agreement shall be revised to include any excise taxes as part of any taxes paid by the Developer which are not to be included in the definition of Gross Revenues.
Agenda Item No. 15 Page 87 of 129 CC Agenda 06-17-2024
B. AMENDMENT OF SECTION 9 c. The first sentence of Section 9 c. of the Amended Development Agreement is hereby revised to read as follows:
The Developer agrees to pay the cost of an annual audit of its records whether conducted by the City’s in-house staff, based upon comparable labor and other costs to private organizations, or by private accounting or audit firms.
C. ADDITION OF NEW SECTION 9 f. A new section 9 f. shall be added to the Amended Development Agreement to read as follows:
Community Benefit Contributions. In addition to all other obligations of the Developer under this Agreement, the Developer shall be obligated to annually expend not less than one percent (1%) of its gross revenues, as defined hereinabove, for community benefits, which are benefits that improve the City, the life quality or economic life of the City’s residents or are to recognized charitable or other 501(c) organizations where the contribution will benefit the City’s residents in a direct manner. The Developer shall report their contribution monthly on a form that is provided by the City and provide proper support for the contribution to the satisfaction of the City. The City reserves the right to disallow the contribution if it is not properly substantiated and/or does not directly benefit the City’s residents. The satisfaction of this requirement, as well as of the other requirements of this Agreement, are issues which will be reviewed in the annual performance examination of the Developer’s obligations under this Agreement, the CUP and any other agreements or City regulations which may pertain at the time.
D. FULL FORCE AND EFFECT. Except as modified by this Amendment No. 1 the Amended Development Agreement shall remain in full force-and-effect.
E. RECITALS. The Recitals set forth above are true and correct and incorporated herein by reference.
F. AMENDMENT EFFECTIVE DATE. This Amendment No. 1 shall become effective 30 days following the adoption of Ordinance No.________ by the City Council and subsequent signature by the Mayor (the “Amendment Effective Date”).
IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the day and year first above-written.
Agenda Item No. 15 Page 88 of 129 CC Agenda 06-17-2024
CITY OF PORT HUENEME
By:
Misty Perez
Mayor
ATTEST:
By:
Georgianna Nicole Alvarez
City Clerk
APPROVED AS TO FORM:
By:
Joan Stevens Smyth
City Attorney
APPROVED AS TO CONTENT:
By:
James Vega
City Manager
DEVELOPER: HARBOR MANAGEMENT
GROUP, LLC
By:
Lonnie Jarvis
Managing Member
P:\APPS\WPDATA\PHNE\0005 - Community Development\0005-08 Safe Port Jarvis\DOC\001.3 Amendment DA Harbor Management Group ( Safe Port) 5-29-24.docx
Agenda Item No. 15 Page 89 of 129 CC Agenda 06-17-2024
ORDINANCE NO. _____
AN ORDINANCE OF THE COUNCIL OF THE CITY OF PORT HUENEME,
CALIFORNIA, APPROVING AND ADOPTING AN AMENDED DEVELOPMENT AGREEMENT UNDER GOVERNMENT CODE SECTIONS 65864 TO 65869.5 AND ORDINANCE NO. 796 OF THE PORT HUENEME MUNICIPAL CODE RELATING TO THE OPERATION OF A CANNABIS FACILITY [HARBOR MANAGEMENT GROUP, LLC, DBA SAFEPORT]
THE CITY COUNCIL DOES ORDAIN AS FOLLOWS:
A. On March 4, 2024, the City Council approved Ordinance No. 796 that amends Article III, Chapter 12 of the Port Hueneme Municipal Code (“PHMC”), entitled "Cannabis Activity"; B. The Ordinance establishes the general requirements for obtaining approval for operating a commercial cannabis activity within the City of Port Hueneme and allowing cultivation for personal medicinal use;
C. The Ordinance requires that an applicant approved to operate a commercial cannabis facility with the City of Port Hueneme shall enter into a Development Agreement with the City;
D. On March 4, 2024, the City Council adopted Resolution No. 4483, which established the procedures and requirements for the consideration of development agreements; E. Harbor Management Group, LLC. Dba “SafePort” (hereinafter, the “Applicant”) is an approved applicant under Ordinance 796 and is thereby authorized, subject to completion of the City’s requirements, to operate a cannabis dispensary with ancillary delivery service within the City; and
F. The Applicant and the City have agreed to enter into that certain Amended Development Agreement dated June 17, 2024 between the City and Harbor Management Group, LLC.
SECTION 1: The City Council finds and determines as follows:
A. The Applicant has been approved through the City’s required procedures as an operator of a cannabis dispensary with ancillary delivery service (the “Business”) located at 353 W. Channel Islands Blvd., Port Hueneme, California, subject only to the issuance of a Conditional Use Permit for the development and construction of the Business and the approval of this Ordinance.
B. The Development Agreement is in a form authorized by Resolution 4483, and drafted, entered into and presented to the City Council in accordance with all requirements of said resolutions and of Ordinance 796.
C. The Development Agreement is:
1. Consistent with the objectives, policies, land uses and programs specified in the general plan and any applicable specific plan of the City;
2. Compatible with the uses and regulations for the land-use area in which the Business is located;
3. In conformity with public convenience, general welfare and good land-use practice;
Agenda Item No. 15 Page 90 of 129 CC Agenda 06-17-2024
Ordinance No. ___, Page 2 of 3
4. Not detrimental to the health, safety and general welfare; and
5. Offers the City and the public substantial benefit in exchange for the vested right benefit granted to the Applicant.
D. In approving this Ordinance, the City has complied with the requirements of the California Environmental Quality Act.
SECTION 2: This ordinance is adopted pursuant to the authority granted by the California Constitution and State Law and the Charter of the City of Port Hueneme. The City Manager is authorized to administer this Ordinance and to promulgate such administrative policies and procedures that may be required to implement these Ordinances.
SECTION 3: This Ordinance will take effect on the 31st day following its final adoption and passage.
SECTION 4: The City Clerk of the City is hereby directed to certify to the passage and adoption of this Ordinance and to cause it to be published as required by law.
PASSED and ADOPTED on this ___ day of 2024.
Misty Perez
Mayor
ATTEST:
________________________________
Georgianna Nicole Alvarez
City Clerk
APPROVED AS TO FORM:
________________________________
Joan Stevens Smyth
City Attorney
Agenda Item No. 15 Page 91 of 129 CC Agenda 06-17-2024
Ordinance No. ___, Page 3 of 3
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF VENTURA ) SS.
CITY OF PORT HUENEME )
I, Georgianna Nicole Alvarez, City Clerk of the City of Port Hueneme, California, do hereby certify that the foregoing Ordinance No. ____ was introduced at the regular meeting of _____, 2024, and duly adopted at the regular meeting of ________, 2024, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Dated:
Georgianna Nicole Alvarez
City Clerk
Agenda Item No. 15 Page 92 of 129 CC Agenda 06-17-2024
AMENDED
DEVELOPMENT AGREEMENT
BY AND BETWEEN
CITY OF PORT HUENEME
AND
FREEDOM 1ST ASSOCIATION INC.
(DBA SKUNKMASTERS)
Agenda Item No. 15 Page 93 of 129 CC Agenda 06-17-2024
THIS FIRST AMENDMENT TO DEVELOPMENT AGREEMENT (“Amendment No. 1”) is dated for reference purposes as of June 17, 2024, and is being entered into by and between the CITY OF PORT HUENEME, a California municipal corporation organized and existing under laws of the State of California ("City") and FREEDOM 1ST ASSOCIATION INC. a California Corporation (“Developer”). The parties to this Agreement may be hereinafter be referred to individually as “Party” or jointly as “Parties”.
RECITALS
WHEREAS, the Parties to this Amendment No.1 previously entered into a Development Agreement dated October 21, 2019 (the “Original Development Agreement”) which was approved by Ordinance of the City Council of the City of Port Hueneme pertaining to the operation of a commercial cannabis business in the City located at 233 E. Channel Islands Boulevard, all as more fully described in the Original Development Agreement; and
WHEREAS, the Parties subsequently entered into a Supplemental Development Agreement dated November 21, 2022 approved by Ordinance of the City Council governing the operation of a cannabis consumption lounge in conjunction with the commercial cannabis business (the “Supplemental Development Agreement”). The Supplemental Development Agreement essentially superseded the Original Development Agreement. Hereinafter, the Original Development Agreement and the Supplemental Development Agreement shall be collectively referred to as the “Development Agreement”; and
WHEREAS, the Parties deem it desirable to enter into this Amendment No.1 for the purposes of modifying certain terms and provisions of the Original Development Agreement as modified by the Supplemental Development Agreement to: (i) amend the definition of Gross Revenues as provided in Section 12 a. of the Supplemental Development Agreement; (ii) modify the audit requirements as provided in Section 12 c. of the Supplemental Development Agreement; and (iii) add clarifying language regarding Community Benefit Contributions.
NOW, THEREFORE, pursuant to the authority of California Government Code Sections 65864 through 65869.5 and the procedures set forth in the Port Hueneme Municipal Code and in consideration of the mutual covenants and promises of the Parties herein contained the Parties agree as follows:
AGREEMENT
A. AMENDMENT OF SECTION 12 a. Section 12 a. of the Supplemental Development Agreement shall be revised to include excise taxes as part of the taxes paid by the Developer which are not to be included in the definition of Gross Revenues.
Agenda Item No. 15 Page 94 of 129 CC Agenda 06-17-2024
B. AMENDMENT OF SECTION 12 c. The first sentence of Section 12 c. of the Supplemental Development Agreement is hereby revised to read as follows:
The Developer agrees to pay the cost of an annual audit of its records whether conducted by the City’s in-house staff based upon comparable labor and other costs to private organizations, or by private accounting or audit firms.
C. AMENDMENT OF SECTION 9 e. Section 9 e. of the Supplemental Development Agreement shall be amended to read as follows:
Community Benefit Contributions. In addition to all other obligations of the Developer under this Agreement, the Developer shall be obligated to annually expend not less than one percent (1%) of its gross revenues, as defined hereinabove, for community benefits, which are benefits that improve the City, the life quality or economic life of the City’s residents or are to recognized charitable or other 501(c) organizations where the contribution will benefit the City’s residents in a direct manner. The Developer shall report their contribution monthly on a form that is provided by the City and provide proper support for the contribution to the satisfaction of the City. The City reserves the right to disallow the contribution if it is not properly substantiated and/or does not directly benefit the City’s residents. The satisfaction of this requirement, as well as of the other requirements of this Agreement, are issues which will be reviewed in the annual performance examination of the Developer’s obligations under this Agreement, the CUP and any other agreements or City regulations which may pertain at the time.
D. FULL FORCE AND EFFECT. Except as modified by this Amendment No. 1 the entire Supplemental Development Agreement shall remain in full force-and-effect.
E. RECITALS. The Recitals set forth above are true and correct and incorporated herein by reference.
F. AMENDMENT EFFECTIVE DATE. This Amendment No. 1 shall become effective 30 days following the adoption of Ordinance No.________ by the City Council and subsequent signature by the Mayor (the “Amendment Effective Date”).
IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the day and year first above-written.
Agenda Item No. 15 Page 95 of 129 CC Agenda 06-17-2024
CITY OF PORT HUENEME
By:
Misty Perez
Mayor
ATTEST:
By:
Georgianna Nicole Alvarez
City Clerk
APPROVED AS TO FORM:
By:
Joan Stevens Smyth
City Attorney
APPROVED AS TO CONTENT:
By:
James Vega
City Manager
DEVELOPER:
FREEDOM 1st ASSOCIATION, INC.
By:
Patricia Tatum
Managing Member
Agenda Item No. 15 Page 96 of 129 CC Agenda 06-17-2024
ORDINANCE NO. _____
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORT HUENEME,
CALIFORNIA, APPROVING AND ADOPTING AN AMENDED DEVELOPMENT AGREEMENT UNDER GOVERNMENT CODE SECTIONS 65864 TO 65869.5 AND ORDINANCE NO. 796 OF THE PORT HUENEME MUNICIPAL CODE RELATING TO THE OPERATION OF A CANNABIS FACILITY [FREEDOM 1st ASSOCIATION, INC.]
THE CITY COUNCIL DOES ORDAIN AS FOLLOWS:
A. On March 4, 2024, the City Council approved Ordinance No. 796 that amends Article III, Chapter 12 of the Port Hueneme Municipal Code (“PHMC”), entitled "Cannabis Activity"; B. The Ordinance establishes the general requirements for obtaining approval for operating a commercial cannabis activity within the City of Port Hueneme and allowing cultivation for personal medicinal use;
C. The Ordinance requires that an applicant approved to operate a commercial cannabis facility with the City of Port Hueneme shall enter into a Development Agreement with the City;
D. On March 4, 2024, the City Council adopted Resolution No. 4483, which established the procedures and requirements for the consideration of development agreements; E. Freedom 1st Association, Inc. (hereinafter, the “Applicant”) is an approved applicant under Ordinance 796 and is thereby authorized, subject to completion of the City’s requirements, to operate a cannabis dispensary with ancillary delivery service and an accessory cannabis consumption lounge within the City; and
F. The Applicant and the City have agreed to enter into that certain Amended Development Agreement dated June 17, 2024 between the City and Freedom 1st Association, Inc.
SECTION 1: The City Council finds and determines as follows:
A. The Applicant has been approved through the City’s required procedures as an operator of a cannabis dispensary with ancillary delivery service and an accessory cannabis consumption lounge (the “Business”) located at 233 E. Channel Islands Blvd., Port Hueneme, California, subject only to the issuance of a Conditional Use Permit for the development and construction of the Business and the approval of this Ordinance.
B. The Development Agreement is in a form authorized by Resolution 4483, and drafted, entered into and presented to the City Council in accordance with all requirements of said resolutions and of Ordinance 796.
C. The Development Agreement is:
1. Consistent with the objectives, policies, land uses and programs specified in the general plan and any applicable specific plan of the City;
2. Compatible with the uses and regulations for the land-use area in which the Business is located;
3. In conformity with public convenience, general welfare and good land-use practice;
Agenda Item No. 15 Page 97 of 129 CC Agenda 06-17-2024
Ordinance No. ___, Page 2 of 3
4. Not detrimental to the health, safety and general welfare; and
5. Offers the City and the public substantial benefit in exchange for the vested right benefit granted to the Applicant.
D. In approving this Ordinance, the City has complied with the requirements of the California Environmental Quality Act.
SECTION 2: This ordinance is adopted pursuant to the authority granted by the California Constitution and State Law and the Charter of the City of Port Hueneme. The City Manager is authorized to administer this Ordinance and to promulgate such administrative policies and procedures that may be required to implement these Ordinances.
SECTION 3: This Ordinance will take effect on the 31st day following its final adoption and passage.
SECTION 4: The City Clerk of the City is hereby directed to certify to the passage and adoption of this Ordinance and to cause it to be published as required by law.
PASSED and ADOPTED on this ___ day of 2024.
Misty Perez
Mayor
ATTEST:
________________________________
Georgianna Nicole Alvarez
City Clerk
APPROVED AS TO FORM:
________________________________
Joan Stevens Smyth
City Attorney
Agenda Item No. 15 Page 98 of 129 CC Agenda 06-17-2024
Ordinance No. ___, Page 3 of 3
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF VENTURA ) SS.
CITY OF PORT HUENEME )
I, Georgianna Nicole Alvarez, City Clerk of the City of Port Hueneme, California, do hereby certify that the foregoing Ordinance No. ____ was introduced at the regular meeting of _____, 2024, and duly adopted at the regular meeting of ________, 2024, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Dated:
Georgianna Nicole Alvarez
City Clerk
Agenda Item No. 15 Page 99 of 129 CC Agenda 06-17-2024
AMENDMENT No. 1 TO
DEVELOPMENT AGREEMENT
BY AND BETWEEN
CITY OF PORT HUENEME
AND
TECH DELIVERY SOLUTIONS, LLC.
Agenda Item No. 15 Page 100 of 129 CC Agenda 06-17-2024 THIS FIRST AMENDMENT TO DEVELOPMENT AGREEMENT (“Amendment No. 1”) is dated for reference purposes as of June 17, 2024, and is being entered into by and between the CITY OF PORT HUENEME, a California Municipal Corporation organized and existing under laws of the State of California ("City") and TECH DELIVERY SOLUTIONS, LLC. a California Limited Liability Company (“Developer”). The parties to this Agreement may be hereinafter be referred to individually as “Party” or jointly as “Parties”.
RECITALS
WHEREAS, the Parties to this Amendment No.1 previously entered into a Development Agreement dated December 16, 2019 (the “Original Development Agreement”) which was approved by Ordinance of the City Council of the City of Port Hueneme pertaining to the operation of a commercial cannabis business in the City located at 501 W. Channel Islands Blvd., Suite 204, Port Hueneme, all as more fully described in the Original Development Agreement; and
WHEREAS, the Parties deem it desirable to enter into this Amendment No.1 for the purposes of modifying certain terms and provisions of the Original Development Agreement to: (i) amend the definition of Gross Revenues as provided in Section 12 a. of the Original Development Agreement; (ii) modify the audit requirements as provided in Section 12 c. of the Original Development Agreement; and (iii) add clarifying language regarding Community Benefit Contributions.
NOW, THEREFORE, pursuant to the authority of California Government Code Sections 65864 through 65869.5 and the procedures set forth in the Port Hueneme Municipal Code and in consideration of the mutual covenants and promises of the Parties herein contained the Parties agree as follows.
AGREEMENT
A. AMENDMENT OF SECTION 12 a. Section 12 a. of the Original Development Agreement shall be revised to include excise taxes as part of the taxes paid by the Developer which are not to be included in the definition of Gross Revenues.
B. AMENDMENT OF SECTION 12 c. The first sentence of Section 12 c. of the Original Development Agreement is hereby revised to read as follows:
The Developer agrees to pay the cost of an annual audit of its records whether conducted by the City’s in-house staff based upon comparable labor and other costs to private organizations, or by private accounting or audit firms.
C. ADDITION OF NEW SECTION 12 e. A new section 12 e. shall be added to the Original Development Agreement to read as follows:
Agenda Item No. 15 Page 101 of 129 CC Agenda 06-17-2024 Community Benefit Contributions. In addition to all other obligations of the Developer under this Agreement, the Developer shall be obligated to annually expend not less than one percent (1%) of its gross revenues, as defined hereinabove, for community benefits, which are benefits that improve the City, the life quality or economic life of the City’s residents or are to recognized charitable or other 501(c) organizations where the contribution will benefit the City’s residents in a direct manner. The Developer shall report their contribution monthly on a form that is provided by the City and provide proper support for the contribution to the satisfaction of the City. The City reserves the right to disallow the contribution if it is not properly substantiated and/or does not directly benefit the City’s residents. The satisfaction of this requirement, as well as of the other requirements of this Agreement, are issues which will be reviewed in the annual performance examination of the Developer’s obligations under this Agreement, the CUP and any other agreements or City regulations which may pertain at the time.
D. FULL FORCE AND EFFECT. Except as modified by this Amendment No. 1, the entire Original Development Agreement shall remain in full force-and-effect.
E. RECITALS. The Recitals set forth above are true and correct and incorporated herein by reference.
F. AMENDMENT EFFECTIVE DATE. This Amendment No. 1 shall become effective 30 days following the adoption of Ordinance No.________ by the City Council and subsequent signature by the Mayor (the “Amendment Effective Date”).
IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the day and year first above-written.
Agenda Item No. 15 Page 102 of 129 CC Agenda 06-17-2024
CITY OF PORT HUENEME
By:
Misty Perez
Mayor
ATTEST:
By:
Georgianna Nicole Alvarez
City Clerk
APPROVED AS TO FORM:
By:
Joan Stevens Smyth
City Attorney
APPROVED AS TO CONTENT:
By:
James Vega
City Manager
DEVELOPER:
TECH DELIVERY SOLUTIONS, LLC.
By:
Arman Mejlumyan
Owner
By:
Zhora Mejlumyan
Owner
P:\APPS\WPDATA\PHNE\0005 - Community Development\0005-23 Tech Delivery Solutions\DOCS\1.1 Amendment DA TECH DELIVERY SOULTIONS 5-30-24 draft.docx Agenda Item No. 15 Page 103 of 129 CC Agenda 06-17-2024 ORDINANCE NO. _____
AN ORDINANCE OF THE COUNCIL OF THE CITY OF PORT HUENEME,
CALIFORNIA, APPROVING AND ADOPTING AN AMENDED DEVELOPMENT AGREEMENT UNDER GOVERNMENT CODE SECTIONS 65864 TO 65869.5 AND ORDINANCE NO. 796 OF THE PORT HUENEME MUNICIPAL CODE RELATING TO THE OPERATION OF A CANNABIS FACILITY [TECH
DELIVERY SOLUTIONS, LLC]
THE CITY COUNCIL DOES ORDAIN AS FOLLOWS:
A. On March 4, 2024, the City Council approved Ordinance No. 796 that amends Article III, Chapter 12 of the Port Hueneme Municipal Code (“PHMC”), entitled "Cannabis Activity"; B. The Ordinance establishes the general requirements for obtaining approval for operating a commercial cannabis activity within the City of Port Hueneme and allowing cultivation for personal medicinal use;
C. The Ordinance requires that an applicant approved to operate a commercial cannabis facility with the City of Port Hueneme shall enter into a Development Agreement with the City;
D. On March 4, 2024, the City Council adopted Resolution No. 4483, which established the procedures and requirements for the consideration of development agreements; E. Tech Delivery Solutions, LLC (hereinafter, the “Applicant”) is an approved applicant under Ordinance 796 and is thereby authorized, subject to completion of the City’s requirements, to operate a cannabis delivery service within the City; and F. The Applicant and the City have agreed to enter into that certain Amended Development Agreement dated June 17, 2024 between the City and Tech Delivery Solutions, LLC.
SECTION 1: The City Council finds and determines as follows:
A. The Applicant has been approved through the City’s required procedures as an operator of a cannabis delivery service (the “Business”) located at 501 W. Channel Islands Blvd., #204, Port Hueneme, California, subject only to the issuance of a Conditional Use Permit for the development and construction of the Business and the approval of this Ordinance.
B. The Development Agreement is in a form authorized by Resolution 4483, and drafted, entered into and presented to the City Council in accordance with all requirements of said resolutions and of Ordinance 796.
C. The Development Agreement is:
1. Consistent with the objectives, policies, land uses and programs specified in the general plan and any applicable specific plan of the City;
2. Compatible with the uses and regulations for the land-use area in which the Business is located;
3. In conformity with public convenience, general welfare and good land-use practice;
4. Not detrimental to the health, safety and general welfare; and Agenda Item No. 15 Page 104 of 129 CC Agenda 06-17-2024 Ordinance No. ___, Page 2 of 3
5. Offers the City and the public substantial benefit in exchange for the vested right benefit granted to the Applicant.
D. In approving this Ordinance, the City has complied with the requirements of the California Environmental Quality Act.
SECTION 2: This ordinance is adopted pursuant to the authority granted by the California Constitution and State Law and the Charter of the City of Port Hueneme. The City Manager is authorized to administer this Ordinance and to promulgate such administrative policies and procedures that may be required to implement these Ordinances.
SECTION 3: This Ordinance will take effect on the 31st day following its final adoption and passage.
SECTION 4: The City Clerk of the City is hereby directed to certify to the passage and adoption of this Ordinance and to cause it to be published as required by law.
PASSED and ADOPTED on this ___ day of 2024.
Misty Perez
Mayor
ATTEST:
________________________________
Georgianna Nicole Alvarez
City Clerk
APPROVED AS TO FORM:
________________________________
Joan Stevens Smyth
City Attorney
Agenda Item No. 15 Page 105 of 129 CC Agenda 06-17-2024 Ordinance No. ___, Page 3 of 3
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF VENTURA ) SS.
CITY OF PORT HUENEME )
I, Georgianna Nicole Alvarez, City Clerk of the City of Port Hueneme, California, do hereby certify that the foregoing Ordinance No. ____ was introduced at the regular meeting of _____, 2024, and duly adopted at the regular meeting of ________, 2024, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Dated:
Georgianna Nicole Alvarez
City Clerk
Agenda Item No. 15 Page 106 of 129 CC Agenda 06-17-2024 AMENDMENT No. 1 TO
DEVELOPMENT AGREEMENT
BY AND BETWEEN
CITY OF PORT HUENEME
AND
TRADECRAFT FARMS - PORT HUENEME, LLC.
Agenda Item No. 15 Page 107 of 129 CC Agenda 06-17-2024 THIS FIRST AMENDMENT TO DEVELOPMENT AGREEMENT (“Amendment No. 1”) is dated for reference purposes as of June 17, 2024, and is being entered into by and between the CITY OF PORT HUENEME, a California Municipal Corporation organized and existing under laws of the State of California ("City") and TRADECRAFT FARMS - PORT HUENEME, LLC. a California Limited Liability Company (“Developer”). The parties to this Agreement may be hereinafter be referred to individually as “Party” or jointly as “Parties”.
RECITALS
WHEREAS, the Parties to this Amendment No.1 previously entered into a Development Agreement dated January 22, 2019 (the “Original Development Agreement”) which was approved by Ordinance of the City Council of the City of Port Hueneme pertaining to the operation of a commercial cannabis business in the City located at 2597 Bolker Drive, Port Hueneme, all as more fully described in the Original Development Agreement; and
WHEREAS, the complete development of the Project has been delayed to date but, notwithstanding such delays, the Parties seek to cooperate in good faith to cause the development of the Project in a manner consistent with the intent of the Original Development Agreement and as such, deem it necessary to establish a Completion Date for the Project; and
WHEREAS, the Parties deem it desirable to enter into this Amendment No.1 for the purposes of modifying certain terms and provisions of the Original Development Agreement to: (i) establish a new Project Completion Deadline for what has now become two (2) phases of the Project all as more fully described on “Attachment 1” attached hereto and incorporated by this reference; (ii) redefine the amounts representing “Additional Revenue” as defined in Section 12 of the Original Development Agreement; (iii) amend the definition of Gross Revenues as provided in Section 12 a. of the Original Development Agreement; (iv) modify the audit requirements as provided in Section 12 c. of the Original Development Agreement; and (v) add clarifying language regarding Community Benefit Contributions.
NOW, THEREFORE, pursuant to the authority of California Government Code Sections 65864 through 65869.5 and the procedures set forth in the Port Hueneme Municipal Code and in consideration of the mutual covenants and promises of the Parties herein contained the Parties agree as follows:
AGREEMENT
A. AMENDMENT OF SECTION 12. The third sentence of the first paragraph of Section 12 entitled City’s Goals shall be revised in its entirety to read as follows:
In addition to the employment opportunities provided by the operation of the Project, and to the increase in sales taxes applicable to the sale of cannabis products as Agenda Item No. 15 Page 108 of 129 CC Agenda 06-17-2024 may be applied to such sales, the City’s primary benefit, and its primary consideration for entering into this Agreement, is the agreement, covenant and promise by the Developer to pay to the City and annual amount equal to, five percent (5%) of the annual gross retail and distribution revenues of the Project and three percent (3%) of any gross revenues derived from cannabis cultivation related to the Project (the “Additional Revenue”).
B. AMENDMENT OF SECTION 12 a. Section 12 a. of the Original Development Agreement shall be revised to include excise taxes as part of the taxes paid by the Developer which are not to be included in the definition of Gross Revenues.
C. AMENDMENT OF SECTION 12 c. The first sentence of Section 12 c. of the Original Development Agreement is hereby revised to read as follows:
The Developer agrees to pay the cost of an annual audit of its records whether conducted by the City’s in-house staff based upon comparable labor and other costs to private organizations, or by private accounting or audit firms.
D. ADDITION OF NEW SECTION 12 e. A new Section 12 e. shall be added to the Original Development Agreement to read as follows:
Community Benefit Contributions. In addition to all other obligations of the Developer under this Agreement, the Developer shall be obligated to annually expend not less than one percent (1%) of its gross revenues, as defined hereinabove, for community benefits, which are benefits that improve the City, the life quality or economic life of the City’s residents or are to recognized charitable or other 501(c) organizations where the contribution will benefit the City’s residents in a direct manner. The Developer shall report their contribution monthly on a form that is provided by the City and provide proper support for the contribution to the satisfaction of the City. The City reserves the right to disallow the contribution if it is not properly substantiated and/or does not directly benefit the City’s residents. The satisfaction of this requirement, as well as of the other requirements of this Agreement, are issues which will be reviewed in the annual performance examination of the Developer’s obligations under this Agreement, the CUP and any other agreements or City regulations which may pertain at the time.
E. SECTION 13 REVISIONS. Section 13 shall be revised in its entirety to read as follows:
13. Time of Performance. Notwithstanding any other provision of this Development Agreement to the contrary, the Parties acknowledge and agree that in consideration of the City’s reliance upon the promise of the Developer to undertake the Development of the Property so as to be able to operate the Project and generate substantial revenues which will accrue to the City, the Developer agrees that it will take every step necessary to commence (i.e., make permitted physical alterations to the Property) the completion of Development of the Property at the first reasonable opportunity after the Effective Date. The Developer hereby covenants to operate the Project at the Property for the Term and as otherwise agreed in this Development Agreement and the Related Agreements. Compliance with this section shall be an Agenda Item No. 15 Page 109 of 129 CC Agenda 06-17-2024 element of this Development Agreement considered in the annual reviews of the Developer’s performance, as provided herein.
F. NEW COMPLETION DATES SHALL BE AS FOLLOWS: The Developer shall complete Phase 1 of the Project as described on Attachment 1 hereto prior to June 30, 2025, and Phase 2 of the Project as described on Attachment 1 hereto prior to June 30, 2026. A failure to obtain a Certificate of Occupancy for the Property prior to June 30, 2026, shall nullify this Agreement.
G. FULL FORCE AND EFFECT. Except as modified by this Amendment No. 1, the entire Original Development Agreement and any exhibits thereto shall remain in full forceand-effect.
H. RECITALS. The Recitals set forth above are true and correct and incorporated herein by reference.
I. AMENDMENT EFFECTIVE DATE. This Amendment No. 1 shall become effective 30 days following the adoption of Ordinance No.________ by the City Council and subsequent signature by the Mayor (the “Amendment Effective Date”).
IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the day and year first above-written.
Agenda Item No. 15 Page 110 of 129 CC Agenda 06-17-2024
CITY OF PORT HUENEME
By:
Misty Perez
Mayor
ATTEST:
By:
Georgianna Nicole Alvarez
City Clerk
APPROVED AS TO FORM:
By:
Joan Stevens Smyth
City Attorney
APPROVED AS TO CONTENT:
By:
James Vega
City Manager
DEVELOPER: TRADECRAFT FARMSPORT HUENEME, LLC.
By:
Barry Walker
Member and Manager
P:\APPS\WPDATA\PHNE\0005 - Community Development\0005-19 2597 Bolker Drive (Tradecraft)\DOC\2.3 Amendment DA TRADECRAFT FARMS 5.31-24 .docx
Agenda Item No. 15 Page 111 of 129 CC Agenda 06-17-2024 ATTACHMENT 1
Phase 1: Phase 1 of the completion of the buildout of the Tradecraft Farms - Port Hueneme, LLC facility shall consist of the second Flower Room on the first floor, the Immature Plant (“Veg”) Room on the first floor, and the Dry Room/Processing Room on the second floor, and the Packaging and Distribution areas on the second floor.
Phase 2: Phase 2 shall consist of the remainder of the buildout of the facility as approved per the Certificate of Approval and Conditional Use Permit No. PHCU-842 for the operation of the Tradecraft Farms cannabis microbusiness, located at 2597 Bolker Drive, Port Hueneme.
Agenda Item No. 15 Page 112 of 129 CC Agenda 06-17-2024 ORDINANCE NO. _____
AN ORDINANCE OF THE COUNCIL OF THE CITY OF PORT HUENEME,
CALIFORNIA, APPROVING AND ADOPTING AN AMENDED DEVELOPMENT AGREEMENT UNDER GOVERNMENT CODE SECTIONS 65864 TO 65869.5 AND ORDINANCE NO. 796 OF THE PORT HUENEME MUNICIPAL CODE RELATING TO THE OPERATION OF A CANNABIS FACILITY [TRADECRAFT FARMS – PORT HUENEME, LLC]
THE CITY COUNCIL DOES ORDAIN AS FOLLOWS:
A. On March 4, 2024, the City Council approved Ordinance No. 796 that amends Article III, Chapter 12 of the Port Hueneme Municipal Code (“PHMC”), entitled "Cannabis Activity"; B. The Ordinance establishes the general requirements for obtaining approval for operating a commercial cannabis activity within the City of Port Hueneme and allowing cultivation for personal medicinal use;
C. The Ordinance requires that an applicant approved to operate a commercial cannabis facility with the City of Port Hueneme shall enter into a Development Agreement with the City;
D. On March 4, 2024, the City Council adopted Resolution No. 4483, which established the procedures and requirements for the consideration of development agreements; E. Tradecraft Farms – Port Hueneme, LLC (hereinafter, the “Applicant”) is an approved applicant under Ordinance 796 and is thereby authorized, subject to completion of the City’s requirements, to operate a cannabis microbusiness, consisting of a retail dispensary with delivery services, cultivation and ancillary distribution components within the City; and F. The Applicant and the City have agreed to enter into that certain Amended Development Agreement dated June 17, 2024 between the City and Tradecraft Farms – Port Hueneme, LLC.
SECTION 1: The City Council finds and determines as follows:
A. The Applicant has been approved through the City’s required procedures as an operator of a cannabis microbusiness, consisting of a retail dispensary with delivery services, cultivation and ancillary distribution components (the “Business”) located at 2597 Bolker Drive, Port Hueneme, California, subject only to the issuance of a Conditional Use Permit for the development and construction of the Business and the approval of this Ordinance.
B. The Development Agreement is in a form authorized by Resolution 4483, and drafted, entered into and presented to the City Council in accordance with all requirements of said resolutions and of Ordinance 796.
C. The Development Agreement is:
1. Consistent with the objectives, policies, land uses and programs specified in the general plan and any applicable specific plan of the City;
2. Compatible with the uses and regulations for the land-use area in which the Business is located;
3. In conformity with public convenience, general welfare and good land-use practice;
Agenda Item No. 15 Page 113 of 129 CC Agenda 06-17-2024 Ordinance No. ___, Page 2 of 3
4. Not detrimental to the health, safety and general welfare; and
5. Offers the City and the public substantial benefit in exchange for the vested right benefit granted to the Applicant.
D. In approving this Ordinance, the City has complied with the requirements of the California Environmental Quality Act.
SECTION 2: This ordinance is adopted pursuant to the authority granted by the California Constitution and State Law and the Charter of the City of Port Hueneme. The City Manager is authorized to administer this Ordinance and to promulgate such administrative policies and procedures that may be required to implement these Ordinances.
SECTION 3: This Ordinance will take effect on the 31st day following its final adoption and passage.
SECTION 4: The City Clerk of the City is hereby directed to certify to the passage and adoption of this Ordinance and to cause it to be published as required by law.
PASSED and ADOPTED on this ___ day of 2024.
Misty Perez
Mayor
ATTEST:
________________________________
Georgianna Nicole Alvarez
City Clerk
APPROVED AS TO FORM:
________________________________
Joan Stevens Smyth
City Attorney
Agenda Item No. 15 Page 114 of 129 CC Agenda 06-17-2024 Ordinance No. ___, Page 3 of 3
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF VENTURA ) SS.
CITY OF PORT HUENEME )
I, Georgianna Nicole Alvarez, City Clerk of the City of Port Hueneme, California, do hereby certify that the foregoing Ordinance No. ____ was introduced at the regular meeting of _____, 2024, and duly adopted at the regular meeting of ________, 2024, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Dated:
Georgianna Nicole Alvarez
City Clerk
Agenda Item No. 15 Page 115 of 129 CC Agenda 06-17-2024 AMENDMENT No. 1 TO
DEVELOPMENT AGREEMENT
BY AND BETWEEN
CITY OF PORT HUENEME
AND
PORT RETAIL, LLC.
(DBA TREE FACTORY)
Agenda Item No. 15 Page 116 of 129 CC Agenda 06-17-2024 THIS FIRST AMENDMENT TO DEVELOPMENT AGREEMENT (“Amendment No. 1”) is dated for reference purposes as of June 17, 2024, and is being entered into by and between the CITY OF PORT HUENEME, a California Municipal Corporation organized and existing under laws of the State of California ("City") and PORT RETAIL, LLC. a California Limited Liability Corporation, doing business as “TREE FACTORY” (“Developer”). The parties to this Agreement may be hereinafter be referred to individually as “Party” or jointly as “Parties”.
RECITALS
WHEREAS, the Parties to this Amendment No.1 previously entered into a Development Agreement dated June 18, 2018 (the “Original Development Agreement”) which was approved by Ordinance of the City Council of the City of Port Hueneme pertaining to the operation of a commercial cannabis business in the City located at 437 W. Channel Islands Blvd., Port Hueneme, all as more fully described in the Original Development Agreement; and
WHEREAS, the Parties deem it desirable to enter into this Amendment No.1 for the purposes of modifying certain terms and provisions of the Original Development Agreement to: (i) amend the definition of Gross Revenues as provided in Section 9 a. of the Original Development Agreement; (ii) modify the audit requirements as provided in Section 9 c. of the Original Development Agreement; and (iii) add clarifying language regarding Community Benefit Contributions.
NOW, THEREFORE, pursuant to the authority of California Government Code Sections 65864 through 65869.5 and the procedures set forth in the Port Hueneme Municipal Code and in consideration of the mutual covenants and promises of the Parties herein contained the Parties agree as follows:
AGREEMENT
A. AMENDMENT OF SECTION 9 a. Section 9 a. of the Original Development Agreement shall be revised to include excise taxes as part of the taxes paid by the Developer which are not to be included in the definition of Gross Revenues.
B. AMENDMENT OF SECTION 9 c. The first sentence of Section 9 c. of the Original Development Agreement is hereby revised to read as follows:
The Developer agrees to pay the cost of an annual audit of its records whether conducted by the City’s in-house staff based upon comparable labor and other costs to private organizations, or by private accounting or audit firms.
C. ADDITION OF NEW SECTION 9 e. A new section 9 e. shall be added to the Original Development Agreement to read as follows:
Agenda Item No. 15 Page 117 of 129 CC Agenda 06-17-2024 Community Benefit Contributions. In addition to all other obligations of the Developer under this Agreement, the Developer shall be obligated to annually expend not less than one percent (1%) of its gross revenues, as defined hereinabove, for community benefits, which are benefits that improve the City, the life quality or economic life of the City’s residents or are to recognized charitable or other 501(c) organizations where the contribution will benefit the City’s residents in a direct manner. The Developer shall report their contribution monthly on a form that is provided by the City and provide proper support for the contribution to the satisfaction of the City. The City reserves the right to disallow the contribution if it is not properly substantiated and/or does not directly benefit the City’s residents. The satisfaction of this requirement, as well as of the other requirements of this Agreement, are issues which will be reviewed in the annual performance examination of the Developer’s obligations under this Agreement, the CUP and any other agreements or City regulations which may pertain at the time.
D. FULL FORCE AND EFFECT. Except as modified by this Amendment No. 1, the entire Original Development Agreement shall remain in full force-and-effect.
E. RECITALS. The Recitals set forth above are true and correct and incorporated herein by reference.
F. AMENDMENT EFFECTIVE DATE. This Amendment No. 1 shall become effective 30 days following the adoption of Ordinance No.________ by the City Council and subsequent signature by the Mayor (the “Amendment Effective Date”).
IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the day and year first above-written.
Agenda Item No. 15 Page 118 of 129 CC Agenda 06-17-2024
CITY OF PORT HUENEME
By:
Misty Perez
Mayor
ATTEST:
By:
Georgianna Nicole Alvarez
City Clerk
APPROVED AS TO FORM:
By:
Joan Stevens Smyth
City Attorney
APPROVED AS TO CONTENT:
By:
James Vega
City Manager
DEVELOPER:
PORT RETAIL, LLC.
By:
Maria Valadez
Chief Operating Officer
P:\APPS\WPDATA\PHNE\0005 - Community Development\0005-14 Port Retail\1.1 Amendment DA 5-29-
24.docx
Agenda Item No. 15 Page 119 of 129 CC Agenda 06-17-2024 ORDINANCE NO. _____
AN ORDINANCE OF THE COUNCIL OF THE CITY OF PORT HUENEME,
CALIFORNIA, APPROVING AND ADOPTING AN AMENDED DEVELOPMENT AGREEMENT UNDER GOVERNMENT CODE SECTIONS 65864 TO 65869.5 AND ORDINANCE NO. 796 OF THE PORT HUENEME MUNICIPAL CODE RELATING TO THE OPERATION OF A CANNABIS FACILITY [PORT RETAIL, LLC]
THE CITY COUNCIL DOES ORDAIN AS FOLLOWS:
A. On March 4, 2024, the City Council approved Ordinance No. 796 that amends Article III, Chapter 12 of the Port Hueneme Municipal Code (“PHMC”), entitled "Cannabis Activity"; B. The Ordinance establishes the general requirements for obtaining approval for operating a commercial cannabis activity within the City of Port Hueneme and allowing cultivation for personal medicinal use;
C. The Ordinance requires that an applicant approved to operate a commercial cannabis facility with the City of Port Hueneme shall enter into a Development Agreement with the City;
D. On March 4, 2024, the City Council adopted Resolution No. 4483, which established the procedures and requirements for the consideration of development agreements; E. Port Retail, LLC (hereinafter, the “Applicant”) is an approved applicant under Ordinance 796 and is thereby authorized, subject to completion of the City’s requirements, to operate a cannabis dispensary with ancillary delivery service within the City; and F. The Applicant and the City have agreed to enter into that certain Amended Development Agreement dated June 17, 2024 between the City and Port Retail, LLC.
SECTION 1: The City Council finds and determines as follows:
A. The Applicant has been approved through the City’s required procedures as an operator of a cannabis dispensary with ancillary delivery service (the “Business”) located at 437 W. Channel Islands Blvd., Port Hueneme, California, subject only to the issuance of a Conditional Use Permit for the development and construction of the Business and the approval of this Ordinance.
B. The Development Agreement is in a form authorized by Resolution 4483, and drafted, entered into and presented to the City Council in accordance with all requirements of said resolutions and of Ordinance 796.
C. The Development Agreement is:
1. Consistent with the objectives, policies, land uses and programs specified in the general plan and any applicable specific plan of the City;
2. Compatible with the uses and regulations for the land-use area in which the Business is located;
3. In conformity with public convenience, general welfare and good land-use practice;
4. Not detrimental to the health, safety and general welfare; and Agenda Item No. 15 Page 120 of 129 CC Agenda 06-17-2024 Ordinance No. ___, Page 2 of 3
5. Offers the City and the public substantial benefit in exchange for the vested right benefit granted to the Applicant.
D. In approving this Ordinance, the City has complied with the requirements of the California Environmental Quality Act.
SECTION 2: This ordinance is adopted pursuant to the authority granted by the California Constitution and State Law and the Charter of the City of Port Hueneme. The City Manager is authorized to administer this Ordinance and to promulgate such administrative policies and procedures that may be required to implement these Ordinances.
SECTION 3: This Ordinance will take effect on the 31st day following its final adoption and passage.
SECTION 4: The City Clerk of the City is hereby directed to certify to the passage and adoption of this Ordinance and to cause it to be published as required by law.
PASSED and ADOPTED on this ___ day of 2024.
Misty Perez
Mayor
ATTEST:
________________________________
Georgianna Nicole Alvarez
City Clerk
APPROVED AS TO FORM:
________________________________
Joan Stevens Smyth
City Attorney
Agenda Item No. 15 Page 121 of 129 CC Agenda 06-17-2024 Ordinance No. ___, Page 3 of 3
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF VENTURA ) SS.
CITY OF PORT HUENEME )
I, Georgianna Nicole Alvarez, City Clerk of the City of Port Hueneme, California, do hereby certify that the foregoing Ordinance No. ____ was introduced at the regular meeting of _____, 2024, and duly adopted at the regular meeting of ________, 2024, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Dated:
Georgianna Nicole Alvarez
City Clerk
Agenda Item No. 15 Page 122 of 129 CC Agenda 06-17-2024
AMENDED DEVELOPMENT AGREEMENT
BY AND BETWEEN
CITY OF PORT HUENEME
AND
WESTSIDE PROFESSIONAL MANAGEMENT, LLC.
(DBA WHEELHOUSE)
Agenda Item No. 15 Page 123 of 129 CC Agenda 06-17-2024 THIS FIRST AMENDMENT TO DEVELOPMENT AGREEMENT (“Amendment No. 1”) is dated for reference purposes as of June 17, 2024, and is being entered into by and between the CITY OF PORT HUENEME, a California municipal corporation organized and existing under laws of the State of California ("City") and WESTSIDE PROFESSIONAL MANAGEMENT, LLC. a California Limited Liability Company, doing business as WHEELHOUSE (“Developer”). The parties to this Agreement may be hereinafter referred to individually as “Party” or jointly as “Parties”.
RECITALS
WHEREAS, the Parties to this Amendment No.1 previously entered into a Development Agreement dated May 7, 2018 (the “Original Development Agreement”) which was approved by Ordinance of the City Council of the City of Port Hueneme pertaining to the operation of a commercial cannabis business in the City located at 521 W. Channel Islands Boulevard, suites 1-6, Port Hueneme, all as more fully described in the Original Development Agreement; and
WHEREAS, the Parties subsequently entered into a Supplemental Amended Development Agreement dated September 19, 2022 approved by Ordinance of the City Council making certain revisions to the Original Development Agreement to facilitate the development of a cannabis lounge (the “Supplemental Development Agreement”). The Amended Development Agreement essentially superseded the Original Development Agreement. Hereinafter, the Original Development Agreement and the Amended Development Agreement shall be collectively referred to as the “Development Agreement”; and
WHEREAS, the Parties deem it desirable to enter into this Amendment No.1 for the purposes of modifying certain terms and provisions of the Original Development Agreement and as amended by the Supplemental Development Agreement to: (i) amend the definition of Gross Revenues as provided in Section 12 a. of the Supplemental Development Agreement; (ii) modify the audit requirements as provided in Section 12 c. of the Supplemental Development Agreement; and (iii) add clarifying language regarding Community Benefit Contributions.
NOW, THEREFORE, pursuant to the authority of California Government Code Sections 65864 through 65869.5 and the procedures set forth in the Port Hueneme Municipal Code and in consideration of the mutual covenants and promises of the Parties herein contained the Parties agree as follows:
AGREEMENT
A. AMENDMENT OF SECTION 12 a. Section 12 a. of the Supplemental Development Agreement shall be revised to include excise taxes as part of the taxes paid by the Developer which are not to be included in the definition of Gross Revenues.
Agenda Item No. 15 Page 124 of 129 CC Agenda 06-17-2024 B. AMENDMENT OF SECTION 12 c. The first sentence of Section 12 c. of the Supplemental Development Agreement is hereby revised to read as follows:
The Developer agrees to pay the cost of an annual audit of its records whether conducted by the City’s in-house staff based upon comparable labor and other costs to private organizations, or by private accounting or audit firms.
C. AMENDMENT OF SECTION 9 e. Section 9 e. of the Supplemental Development Agreement shall be amended to read as follows:
Community Benefit Contributions. In addition to all other obligations of the Developer under this Agreement, the Developer shall be obligated to annually expend not less than one percent (1%) of its gross revenues, as defined hereinabove, for community benefits, which are benefits that improve the City, the life quality or economic life of the City’s residents or are to recognized charitable or other 501(c) organizations where the contribution will benefit the City’s residents in a direct manner. The Developer shall report their contribution monthly on a form that is provided by the City and provide proper support for the contribution to the satisfaction of the City. The City reserves the right to disallow the contribution if it is not properly substantiated and/or does not directly benefit the City’s residents. The satisfaction of this requirement, as well as of the other requirements of this Agreement, are issues which will be reviewed in the annual performance examination of the Developer’s obligations under this Agreement, the CUP and any other agreements or City regulations which may pertain at the time.
D. FULL FORCE AND EFFECT. Except as modified by this Amendment No. 1 the entire Supplemental Development Agreement shall remain in full force-and-effect.
E. RECITALS. The Recitals set forth above are true and correct and incorporated herein by reference.
F. AMENDMENT EFFECTIVE DATE. This Amendment No. 1 shall become effective 30 days following the adoption of Ordinance No.________ by the City Council and subsequent signature by the Mayor (the “Amendment Effective Date”).
IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the day and year first above-written.
Agenda Item No. 15 Page 125 of 129 CC Agenda 06-17-2024
CITY OF PORT HUENEME
By:
Misty Perez
Mayor
ATTEST:
By:
Georgianna Nicole Alvarez
City Clerk
APPROVED AS TO FORM:
By:
Joan Stevens Smyth
City Attorney
APPROVED AS TO CONTENT:
By:
James Vega
City Manager
DEVELOPER:
WESTSIDE PROFESSIONAL
MANAGEMENT, LLC
By:
Zahur Lalji
Managing Member
By:
Sergio Burga
Managing Member
P:\APPS\WPDATA\PHNE\0005 - Community Development\0005-13 Cannabis Healing Center (Wheelhouse)\DOC\001-2 Amendment DA Westside Professionals Managmeent (DBA Wheelhouse)
5.30.docx
Agenda Item No. 15 Page 126 of 129 CC Agenda 06-17-2024 ORDINANCE NO. _____
AN ORDINANCE OF THE COUNCIL OF THE CITY OF PORT HUENEME,
CALIFORNIA, APPROVING AND ADOPTING AN AMENDED DEVELOPMENT AGREEMENT UNDER GOVERNMENT CODE SECTIONS 65864 TO 65869.5 AND ORDINANCE NO. 796 OF THE PORT HUENEME MUNICIPAL CODE RELATING TO THE OPERATION OF A CANNABIS FACILITY [WESTSIDE PROFESSIONAL MANAGEMENT, LLC DBA WHEELHOUSE]
THE CITY COUNCIL DOES ORDAIN AS FOLLOWS:
A. On March 4, 2024, the City Council approved Ordinance No. 796 that amends Article III, Chapter 12 of the Port Hueneme Municipal Code (“PHMC”), entitled "Cannabis Activity"; B. The Ordinance establishes the general requirements for obtaining approval for operating a commercial cannabis activity within the City of Port Hueneme and allowing cultivation for personal medicinal use;
C. The Ordinance requires that an applicant approved to operate a commercial cannabis facility with the City of Port Hueneme shall enter into a Development Agreement with the City;
D. On March 4, 2024, the City Council adopted Resolution No. 4483, which established the procedures and requirements for the consideration of development agreements; E. Westside Professional Management, dba “Wheelhouse” (hereinafter, the “Applicant”) is an approved applicant under Ordinance 796 and is thereby authorized, subject to completion of the City’s requirements, to operate a cannabis dispensary with ancillary delivery service and an accessory cannabis consumption lounge within the City; and F. The Applicant and the City have agreed to enter into that certain Amended Development Agreement dated June 17, 2024 between the City and Westside Professional Management, LLC.
SECTION 1: The City Council finds and determines as follows:
A. The Applicant has been approved through the City’s required procedures as an operator of a cannabis dispensary with ancillary delivery service and an accessory cannabis consumption lounge (the “Business”) located at 521 W. Channel Islands Blvd., #1-6, Port Hueneme, California, subject only to the issuance of a Conditional Use Permit for the development and construction of the Business and the approval of this Ordinance.
B. The Development Agreement is in a form authorized by Resolution 4483, and drafted, entered into and presented to the City Council in accordance with all requirements of said resolutions and of Ordinance 796.
C. The Development Agreement is:
1. Consistent with the objectives, policies, land uses and programs specified in the general plan and any applicable specific plan of the City;
2. Compatible with the uses and regulations for the land-use area in which the Business is located;
3. In conformity with public convenience, general welfare and good land-use practice;
Agenda Item No. 15 Page 127 of 129 CC Agenda 06-17-2024 Ordinance No. ___, Page 2 of 3
4. Not detrimental to the health, safety and general welfare; and
5. Offers the City and the public substantial benefit in exchange for the vested right benefit granted to the Applicant.
D. In approving this Ordinance, the City has complied with the requirements of the California Environmental Quality Act.
SECTION 2: This ordinance is adopted pursuant to the authority granted by the California Constitution and State Law and the Charter of the City of Port Hueneme. The City Manager is authorized to administer this Ordinance and to promulgate such administrative policies and procedures that may be required to implement these Ordinances.
SECTION 3: This Ordinance will take effect on the 31st day following its final adoption and passage.
SECTION 4: The City Clerk of the City is hereby directed to certify to the passage and adoption of this Ordinance and to cause it to be published as required by law.
PASSED and ADOPTED on this ___ day of 2024.
Misty Perez
Mayor
ATTEST:
________________________________
Georgianna Nicole Alvarez
City Clerk
APPROVED AS TO FORM:
________________________________
Joan Stevens Smyth
City Attorney
Agenda Item No. 15 Page 128 of 129 CC Agenda 06-17-2024 Ordinance No. ___, Page 3 of 3
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF VENTURA ) SS.
CITY OF PORT HUENEME )
I, Georgianna Nicole Alvarez, City Clerk of the City of Port Hueneme, California, do hereby certify that the foregoing Ordinance No. ____ was introduced at the regular meeting of _____, 2024, and duly adopted at the regular meeting of ________, 2024, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Dated:
Georgianna Nicole Alvarez
City Clerk
Agenda Item No. 15 Page 129 of 129 CC Agenda 06-17-2024
DATE: June 17, 2024
TO: Honorable City Council
FROM: James Vega, City Manager
Fred Camarillo, Public Works Director
SUBJECT: LEVY AND COLLECTION OF THE ANNUAL ASSESSMENTS FOR ASSESSMENT DISTRICT NO. 87-1, ASSESSMENT DISTRICT NO. 91-1, AND ASSESSMENT DISTRICT NO. 95-3; AND, AGREEMENT WITH
THE VENTURA COUNTY AUDITOR-CONTROLLER FOR BILLING OF
DIRECT ASSESSMENTS
RECOMMENDATION:
It is recommended that City Council:
1. Adopt a Resolution of the City Council of the City of Port Hueneme, California, Ordering the Levy and Collection of Assessments within the Lighting Maintenance Assessment District No. 87-1 for the Fiscal Year Beginning July 1, 2024, and Ending June 30, 2025, Pursuant to the Landscape and Lighting Act of 1972;
2. Adopt a Resolution of the City Council of the City of Port Hueneme, California, Ordering the Levy and Collection of Assessments within the Parkway and Median Maintenance Assessment District No. 91-1 for the Fiscal Year Beginning July 1, 2024, and Ending June 30, 2025, Pursuant to the Landscape and Lighting Act of 1972;
3. Adopt a Resolution of the City Council of the City of Port Hueneme, California, Ordering the Levy and Collection of Assessments within the Port Hueneme Drainage Maintenance Assessment District No. 95-3 for the Fiscal Year Beginning July 1, 2024, and Ending June 30, 2025, Pursuant to the Landscape and Lighting Act of 1972;
4. Authorize the City Manager to execute the agreement.
BACKGROUND/ANALYSIS:
The City of Port Hueneme formed its Lighting Maintenance Assessment District No. 87- 1 in 1988 for the purpose of maintaining and servicing public lighting facilities owned by either the City or Southern California Edison and located within public rights-of-way. The Parkway and Median Maintenance Assessment District No. 91-1 was formed in 1991 for the purpose of maintaining landscaping in the parkways and medians within the public rights-of-way. In 1995, the City formed the Port Hueneme Park Maintenance Agenda Item No. 16 Page 1 of 53 CC Agenda 06-17-2024
Levy and Collection of Annual Assessments for Assessment District Nos. 87-1, 91-1, and 95-3 June 17, 2024
Assessment District No. 95-3 for the purpose of maintaining City parks. In 1997, this latter District was renamed the Port Hueneme Drainage Maintenance Assessment District and the description of maintenance and improvements was modified to conform with the requirements of Proposition 218.
At its meeting of June 3
rd
, 2024 the City Council adopted Resolutions of Intention which initiated the annual proceedings relating to the Districts for fiscal year 2024-25; set forth the work to be done in the Districts; preliminarily approved the Engineer’s Reports for the Districts; set June 17th, 2024, at 6:30 p.m., in the City Hall Council Chamber as the time and place for the required public hearings to review the cost for the capital maintenance and operations of the Districts; to receive and consider any protests to the work or assessments; and to set the annual assessments on properties within the Districts.
The Resolutions Ordering the Levy and Collection of the Assessments within the Districts presented herewith for consideration and adoption are the final Resolutions that must be adopted to levy the annual assessments for the three existing Assessment Districts. The Resolutions approve and adopt the Engineer’s Reports on file with the City Clerk, confirm the diagrams and assessments prepared in connection with the Districts, order the levy and collection of assessments within the Districts, and authorize and direct the City Clerk to file certified copies of the diagrams and assessments with the County Auditor of the County of Ventura no later than July 5, 2024.
The Engineer’s Reports describe the improvements, maintenance, and assessment methodology relating to each District. Due to the requirements of Proposition 218, the same assessment calculation methodology has been used in the FY 2024-25 Engineer’s Reports as was used in the FY 2023-24 Engineer’s Reports. If an increase in rates to cover the actual costs for maintaining the assessment districts is desired, then Proposition 218 requirements would need to be followed. This procedure would require an election to approve the new tax. The contemplated work for FY 2024-25 relates exclusively to improvements and maintenance work which are intended to qualify for the capital costs, maintenance, and operations exemption (one of the grandfather exemptions set forth in Proposition 218). The rates this year are the same as prior years.
FISCAL IMPACT:
Funding for the proposed maintenance and improvement expenses will be provided by the assessment charges in the Engineer’s Reports and will be levied against those properties receiving a special benefit from the services provided. The total estimated revenue generated from these assessments will be $485,717.00.
The fees for services to be collected by the Ventura County Auditor-Controller are dictated by the Agreement for Billing of Direct Assessments.
Agenda Item No. 16 Page 2 of 53 CC Agenda 06-17-2024
Levy and Collection of Annual Assessments for Assessment District Nos. 87-1, 91-1, and 95-3 June 17, 2024
STRATEGIC PLAN:
Primary Strategic Pillar(s) and Initiative(s):
Optimal Levels of Service for Residents and Businesses
• Promote operational excellence in all City functions and embody best practices as a municipality
• Establish desired service levels for all City functions ATTACHMENTS:
A. Resolution District No. 87-1
B. Resolution District No. 91-1
C. Resolution District No. 95-3
D. Engineer’s Report District No. 87-1
E. Engineer’s Report District No. 91-1
F. Engineer’s Report District No. 95-3
G. Agreement for Billing of Direct Assessments
Agenda Item No. 16 Page 3 of 53 CC Agenda 06-17-2024
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Agenda Item No. 16 Page 4 of 53 CC Agenda 06-17-2024
ATTACHMENT A
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORT HUENEME,
CALIFORNIA, ORDERING THE LEVY AND COLLECTION OF
ASSESSMENTS FOR THE "LIGHTING MAINTENANCE ASSESSMENT
DISTRICT NO. 87-1" FOR THE FISCAL YEAR BEGINNING JULY 1, 2024, AND ENDING JUNE 30, 2025, PURSUANT TO THE LANDSCAPE AND LIGHTING ACT OF 1972
WHERAS, on June 15, 1988, the City Council of the City of Port Hueneme (the "City") adopted Resolution No. 2396 ordering the formation of the Lighting Maintenance Assessment District No. 87-1 (the "District") pursuant to the provisions of the "Landscape and Lighting Act of 1972," being Division 15, Part 2 of the Streets and Highways Code of the State of California (the "Act"); and
WHEREAS, on June 3, 2024, the City Council adopted Resolution No. 4495 (the “Resolution of Intention”) initiating proceedings for the levy and collection of annual assessments within the District for fiscal year 2024-25, for the purposes provided therefore in the Act and preliminarily approved an Engineer’s Report (“Engineer’s Report”) and declared its intent to levy and collect assessments for fiscal year 2024-25 within the District and set a time and place for a public hearing. The Resolution of Intention was duly and legally published in the time, form, and manner as required by law, shown by the Affidavit of Publication of the Resolution of Intention on file in the office of the City Clerk; and WHEREAS, the City held a required public hearing on June 17, 2024, in the City Hall Council Chamber, 250 N. Ventura Road, Port Hueneme, CA, regarding its Levy and Collection of Assessments, wherein, among other things, members of the public and other interested entities were provided proper legal notice and the opportunity to submit testimony, including objections to the proposed boundary, work or assessment, in connection with the Levy and Collection of Assessments and the proposed adoption thereof; and WHEREAS, the City Council considered and overruled all written protest, if any, against the proposed boundary, work, or assessment made by any interested person; and WHEREAS, the City Council, having duly received and considered oral and documentary evidence concerning the jurisdictional facts in this proceeding and concerning the necessity for the contemplated work and the benefits to be derived therefrom, has acquired jurisdiction to order the proposed assessment.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PORT HUENEME, CALIFORNIA, DOES HERBY RESOLVE AS FOLLOWS:
SECTION 1: The Engineer’s Report on file with the City Clerk, and each component part of it, including each exhibit incorporated by reference, as amended, if applicable, is hereby finally approved and adopted.
SECTION 2: The diagram and assessment prepared in connection with the District are hereby confirmed.
SECTION 3: The land within the District will be benefited by the work described in the Engineer’s Report. The district includes all of the lands so benefited and the amount to be assessed is apportioned by a formula and method which fairly distributes the reasonable costs among all assessable lots or parcels in proportion to the estimated special benefit to be received from the work.
Agenda Item No. 16 Page 5 of 53 CC Agenda 06-17-2024
CC Resolution No. ___, Page 2 of 3
SECTION 4: The public interest and convenience require the ordering of the levy and collection of assessments for fiscal year 2024-25 and the City Council hereby orders the levy and collection of assessments within the District, as set forth and described in the Resolution of Intention and in the Engineer’s Report.
SECTION 5: The adoption of this Resolution constitutes the levy of assessments as set forth in the Engineer’s Report for fiscal year 2024-25.
SECTION 6: The assessments authorized under this Resolution are in conformance with Proposition 218.
SECTION 7: The City Clerk is authorized and directed to file a certified copy of the diagram and assessment with the County Auditor.
SECTION 8: This Resolution shall take effect immediately upon its passage.
SECTION 9: The City Clerk shall certify the adoption of this Resolution and enter it into the book of original Resolutions.
PASSED, APPROVED, AND ADOPTED, this 17th day of June, 2024 Misty Perez
Mayor
ATTEST:
Georgianna Nicole Alvarez
City Clerk
Agenda Item No. 16 Page 6 of 53 CC Agenda 06-17-2024
CC Resolution No. ___, Page 3 of 3
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF VENTURA ) SS.
CITY OF PORT HUENEME )
I, Georgianna Nicole Alvarez, City Clerk of the City of Port Hueneme, California, do hereby certify that the foregoing Resolution No. ____ was duly adopted at the regular meeting of the City Council on the 17th day of June, 2024, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Dated:
Georgianna Nicole Alvarez
City Clerk
Agenda Item No. 16 Page 7 of 53 CC Agenda 06-17-2024
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Agenda Item No. 16 Page 8 of 53 CC Agenda 06-17-2024
ATTACHMENT B
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORT HUENEME,
CALIFORNIA, ORDERING THE LEVY AND COLLECTION OF
ASSESSMENTS FOR THE "PARKWAY AND MEDIAN MAINTENANCE
ASSESSMENT DISTRICT NO. 91-1" FOR THE FISCAL YEAR BEGINNING JULY 1, 2024, AND ENDING JUNE 30, 2025, PURSUANT TO THE LANDSCAPE AND LIGHTING ACT OF 1972
WHEREAS, on July 17, 1991, the City Council of the City of Port Hueneme (the "City") adopted Resolution No. 2590 ordering the formation of the Parkway and Median Maintenance Assessment District No. 91-1 (the "District") pursuant to the provisions of the "Landscape and Lighting Act of 1972," being Division 15, Part 2 of the Streets and Highways Code of the State of California (the "Act"); and
WHEREAS, on June 3, 2024, the City Council adopted Resolution No. 4496 (the “Resolution of Intention”) initiating proceedings for the levy and collection of annual assessments within the District for fiscal year 2024-25, for the purposes provided therefore in the Act and preliminarily approved an Engineer’s Report (“Engineer’s Report”) and declared its intent to levy and collect assessments for fiscal year 2024-25 within the District and set a time and place for a public hearing. The Resolution of Intention was duly and legally published in the time, form, and manner as required by law, shown by the Affidavit of Publication of the Resolution of Intention on file in the office of the City Clerk; and WHEREAS, the City held a required public hearing on June 17, 2024, in the City Hall Council Chamber, 250 N. Ventura Road, Port Hueneme, CA, regarding its Levy and Collection of Assessments, wherein, among other things, members of the public and other interested entities were provided proper legal notice and the opportunity to submit testimony, including objections to the proposed boundary, work or assessment, in connection with the Levy and Collection of Assessments and the proposed adoption thereof; and WHEREAS, the City Council considered and overruled all written protest, if any, against the proposed boundary, work, or assessment made by any interested person; and WHEREAS, the City Council, having duly received and considered oral and documentary evidence concerning the jurisdictional facts in this proceeding and concerning the necessity for the contemplated work and the benefits to be derived therefrom, has acquired jurisdiction to order the proposed assessment.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF PORT HUENEME, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1: The Engineer’s Report on file with the City Clerk, and each component part of it, including each exhibit incorporated by reference, as amended, if applicable, is hereby finally approved and adopted.
SECTION 2: The diagram and assessment prepared in connection with the District are hereby confirmed.
SECTION 3: The land within the District will be benefited by the work described in the Engineer’s Report. The district includes all of the lands so benefited and the amount to be assessed is apportioned by a formula and method which fairly distributes the reasonable costs among all assessable lots or parcels in proportion to the estimated special benefit to be received from the work.
Agenda Item No. 16 Page 9 of 53 CC Agenda 06-17-2024
CC Resolution No. ___, Page 2 of 3
SECTION 4: The public interest and convenience require the ordering of the levy and collection of assessments for fiscal year 2024-25 and the City Council hereby orders the levy and collection of assessments within the District, as set forth and described in the Resolution of Intention and in the Engineer’s Report.
SECTION 5: The adoption of this Resolution constitutes the levy of assessments as set forth in the Engineer’s Report for fiscal year 2024-25.
SECTION 6: The assessments authorized under this Resolution are in conformance with Proposition 218.
SECTION 7: The City Clerk is authorized and directed to file a certified copy of the diagram and assessment with the County Auditor.
SECTION 8: This Resolution shall take effect immediately upon its passage.
SECTION 9: The City Clerk shall certify the adoption of this Resolution and enter it into the book of original Resolutions.
PASSED, APPROVED. and ADOPTED, this 17th day of June, 2024.
Misty Perez
Mayor
ATTEST:
Georgianna Nicole Alvarez
City Clerk
Agenda Item No. 16 Page 10 of 53 CC Agenda 06-17-2024
CC Resolution No. ___, Page 3 of 3
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF VENTURA ) SS.
CITY OF PORT HUENEME )
I, Georgianna Nicole Alvarez, City Clerk of the City of Port Hueneme, California, do hereby certify that the foregoing Resolution No. ____ was duly adopted at the regular meeting of the City Council on the 17th day of June, 2024, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Dated:
Georgianna Nicole Alvarez
City Clerk
Agenda Item No. 16 Page 11 of 53 CC Agenda 06-17-2024
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Agenda Item No. 16 Page 12 of 53 CC Agenda 06-17-2024
ATTACHMENT C
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORT HUENEME,
CALIFORNIA, ORDERING THE LEVY AND COLLECTION OF
ASSESSMENTS FOR THE "PORT HUENEME DRAINAGE MAINTENANCE
ASSESSMENT DISTRICT NO. 95-3" FOR THE FISCAL YEAR BEGINNING JULY 1, 2024, AND ENDING JUNE 30, 2025, PURSUANT TO THE LANDSCAPE AND LIGHTING ACT OF 1972
WHEREAS, on March 15, 1995, the City Council of the City of Port Hueneme (the "City") adopted Resolution No. 2865 initiating proceedings for the formation of the Port Hueneme Park Maintenance Assessment District No. 95-3 (the “District”) pursuant to the provisions of the "Landscape and Lighting Act of 1972," being Division 15, Part 2 of the Streets and Highways Code of the State of California (the "Act"), which District was renamed on May 7, 1997 pursuant to Resolution No. 3020, the Port Hueneme Drainage Maintenance Assessment District No. 95- 3; and
WHEREAS, on June 3, 2024, the City Council adopted Resolution No. 4497 (the “Resolution of Intention”) initiating proceedings for the levy and collection of annual assessments within the District for fiscal year 2024-25, for the purposes provided therefore in the Act and preliminarily approved an Engineer’s Report (“Engineer’s Report”) and declared its intent to levy and collect assessments for fiscal year 2024-25 within the District and set a time and place for a public hearing. The Resolution of Intention was duly and legally published in the time, form, and manner as required by law, shown by the Affidavit of Publication of the Resolution of Intention on file in the office of the City Clerk; and WHEREAS, the City held a required public hearing on June 17, 2024, in the City Hall Council Chamber, 250 N. Ventura Road, Port Hueneme, CA, regarding its Levy and Collection of Assessments, wherein, among other things, members of the public and other interested entities were provided proper legal notice and the opportunity to submit testimony, including objections to the proposed boundary, work or assessment, in connection with the Levy and Collection of Assessments and the proposed adoption thereof; and WHEREAS, the City Council considered and overruled all written protest, if any, against the proposed boundary, work, or assessment made by any interested person; and WHEREAS, the City Council, having duly received and considered oral and documentary evidence concerning the jurisdictional facts in this proceeding and concerning the necessity for the contemplated work and the benefits to be derived therefrom, has acquired jurisdiction to order the proposed assessment.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF PORT HUENEME, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1: The Engineer’s Report on file with the City Clerk, and each component part of it, including each exhibit incorporated by reference, as amended, if applicable, is hereby finally approved and adopted.
SECTION 2: The diagram and assessment prepared in connection with the District are hereby confirmed.
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CC Resolution No. ___, Page 2 of 3
SECTION 3: The land within the District will be benefited by the work described in the Engineer’s Report. The district includes all of the lands so benefited and the amount to be assessed is apportioned by a formula and method which fairly distributes the reasonable costs among all assessable lots or parcels in proportion to the estimated special benefit to be received from the work.
SECTION 4: The public interest and convenience require the ordering of the levy and collection of assessments for fiscal year 2024-25 and the City Council hereby orders the levy and collection of assessments within the District, as set forth and described in the Resolution of Intention and in the Engineer’s Report.
SECTION 5: The adoption of this Resolution constitutes the levy of assessments as set forth in the Engineer’s Report for fiscal year 2024-25.
SECTION 6: The assessments authorized under this Resolution are in conformance with Proposition 218.
SECTION 7: The City Clerk is authorized and directed to file a certified copy of the diagram and assessment with the County Auditor.
SECTION 8: This Resolution shall take effect immediately upon its passage.
SECTION 9: The City Clerk shall certify the adoption of this Resolution and enter it into the book of original Resolutions.
PASSED, APPROVED, AND ADOPTED, this 17th day of June, 2024.
Misty Perez
Mayor
ATTEST:
Georgianna Nicole Alvarez
City Clerk
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CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF VENTURA ) SS.
CITY OF PORT HUENEME )
I, Georgianna Nicole Alvarez, City Clerk of the City of Port Hueneme, California, do hereby certify that the foregoing Resolution No. ____ was duly adopted at the regular meeting of the City Council on the 17th day of June, 2024, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Dated:
Georgianna Nicole Alvarez
City Clerk
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ATTACHMENT G
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DATE: June 17, 2024
TO: Honorable City Council
FROM: James Vega, City Manager
Tony Stewart, AICP, Community and Economic Development Director SUBJECT: APPROVAL OF MURAL DESIGN
RECOMMENDATION:
It is recommended the City Council approve the draft mural design and authorize the Mural Committee to move forward with coordinating completion of the project.
BACKGROUND/ANALYSIS:
Project Creation
On November 1, 2021, the City Council created the “Monument and Mural” Community Benefit Fund (“CBF”) project and ad hoc committee to carry out the development of a public monument honoring a local historic figure and a permanent mural in the City of Port Hueneme. Council Members Hernandez and Martinez currently represent the City Council on the Committee. At the time, $15,000 was allocated for the project in the 2021 CBF.
On April 21, 2022, the City Council approved $25,000 for the permanent mural project as part of the CBF. This was ultimately approved jointly by the City and Port of Hueneme on October 21, 2022. At that time, it was decided the monument project would be championed by the Port and therefore, became a separate item in the CBF from the mural project.
On October 2, 2023, the City Council authorized the City to enter into an agreement with the Oxnard Performing Arts Center (“OPAC”) to guide the mural project. Since then, the Port Hueneme Mural Committee has been meeting regarding the logistics for producing a mural on an exterior wall of the Ray D. Prueter Library.
Sub-Committee and Semi-Finalists
A key component of the project is to select the artist that will facilitate the production of the mural. Since this mural is the first public arts installation of its kind in the City, it was Agenda Item No. 17 Page 1 of 28 CC Agenda 06-17-2024
Approval of Mural Design
June 17, 2024
determined a professional artist would be preferred to complete the project. Therefore, OPAC sent out a Request for Proposals to artists from Ventura, Santa Barbara and Los Angeles Counties, for submissions of proposals for the mural project.
To ensure community input throughout the process, on December 4, 2023, the City Council authorized the Mural Committee to establish a sub-committee of eight community members with an interest in the arts, to perform the first review of the artists’ submissions.
The sub-committee was made up of individuals selected by each of the five City Council Members, as well as one selected by the Port of Hueneme, one selected from the Ventura County Library, and the Ventura County Arts & Culture Manager. The sub-committee reviewed 38 submissions and narrowed the field down to the top nine semi-finalists.
The Mural Committee then met to review the nine semi-finalist submittals. Upon review, the Committee chose three finalist artist teams, who were then invited to tour the City and the project site and provide a draft mural design for further consideration by the Committee.
Mural Committee’s Selection of Finalist Artist Team
On May 22, 2024, the Committee virtually met with the three artist teams to review and discuss their proposals for the mural design and their public engagement concepts. Upon review, the Committee unanimously recommended the proposal presented by Renee fox and David Russell, aka “Mobile Mural Lab”.
Entire Mural as Proposed by Mobile Mural Lab
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Mural Detail (facing Library parking lot)
Per the artists:
“Our mural design is inspired by maritime stories of Port Hueneme, past, present and future. These are stories of humans who have flourished here, as compassionate stewards of the rich local coast environment. These stories include bright visions for the future, indigenous migrant agricultural workers and farmers, Chumash peoples, overseas traders, visionaries, visitors who come for recreation, and all who are benefited by the forward-thinking green technologies developed by scientists and Naval contributions. As educators, we want to share the stories we’ve learned that contributed to our design. Our concept is a mural that educates viewers about stories they are a part of, by living, working or visiting Port Hueneme.
“Our design combines symbols and images from our research that refer to different stories. A flowing water graphic is the connecting element creating movement throughout our design representing Port Hueneme’s intrinsic, and ancient identity as a gateway city between land and sea, used for trade, sustenance, migration and recreation. This inlet, protected by the Channel Islands, has brought economic and technological growth to local people since the Chumash, to whom we pay respect Agenda Item No. 17 Page 3 of 28 CC Agenda 06-17-2024
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and acknowledge as the traditional custodians of the land that inspires our mural.
Chumash culture is represented in our mural by symbols copied from the Santa Barbara Chumash cave paintings. The center of the mural is anchored by a Chumash Tomol (boat) that wraps around both walls. The boat, used for trade and fishing, would have been brought ashore to Hueneme (the resting place), bringing goods with it to and from the Channel islands.
“Port Hueneme’s present-day and recent history include stories of agriculture, migration and environmental sustainability. In our mural design, a cluster of Lemon blossoms crowning the prow of the Chumash boat recognize that local agriculture (grown and shipped elsewhere) has driven significant growth of the local economy, in large part by the hard labor of over 20,000 Mixtec indigenous Mexican farmworkers who live and work in Ventura County. Monarch butterflies in the mural serve as symbols of migration for the diverse population of people who live and work in Ventura County and Port Hueneme. Purple silhouettes of the shipping Port’s contemporary clean power electric cranes tell Port Hueneme’s story of a commitment to ecological sustainability with green technology that will help to secure a healthy future for the City.…Additionally, the area’s endangered and sensitive populations of wetland birds are represented by a Great Blue Heron, featured on the main mural wall.
“Finally, it is important to us that the formal composition of our design highlights and elevates the existing beauty of the Library’s architecture and entry floor tile mural of swirling water rivulets. We chose to complement and preserve the look of the building by floating the mural within the shape of it’s walls, rather than painting walls from top to bottom. This way, the building’s architecture and the mural can both be appreciated.”
Artists’ Public Outreach/Internship Proposal
The artists also provided what the Mural Committee felt was the best public outreach plan of the three finalist teams. The artists proposed to connect with the local Chumash tribe to obtain information and validate the designs used in the mural. Further, the team proposed the following public engagement opportunities:
• Create an educational website (including a QR code embedded into the mural installation) to allow users to interpret the mural and educate viewers. • Provide access to documents within the library , such as interactive worksheets, coloring pages, etc., that directly correspond with the mural design to engage local youth with the mural.
• Establish an internship experience with a local youth (age 16-22 years) who would work with the muralists on the fabrication and installation of the mural on-site, and who could then, through this experience, potentially go on to contribute to future art projects in the City.
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This last item was of particular interest to the Committee, since it would enable a local student to assist the professional artists with the creation of the mural. The artists anticipate hiring the intern in late summer to assist with the mural installation.
A copy of the artists’ May 22, 2024 proposal is provided as Attachment A. Examples of some of the artists’ other completed mural projects is provided as Attachment B.
Upon review of the design and the artists’ ideas behind the concept, the Committee felt the proposed mural best exemplified the City’s past, present and future in a varied yet cohesive manner, which was also vibrant, colorful and respectful of the library building’s unique architecture.
Committee’s Suggested Revisions to Design
It should be noted that the Committee recommended a couple of minor revisions to be made to the design, which are being shared with the artist. The Committee felt that the lemon blossoms were more representative of other areas in Ventura County, but not Port Hueneme. Therefore, it was recommended that the lemon blossoms be replaced with one or two flowering plants native to the Port Hueneme coastal area. Additionally, the Committee felt that the wall area covered by the mural should be extended to the around the northwest portion of the building (i.e., under the “Ray D. Prueter” lettering and around to the front of the building) and include additional “water” graphics and a depiction of one or more Snowy Plovers.
Next Steps
As noted above, the Mural Committee unanimously recommended the proposed design by the Mobile Mural Lab, along with their public outreach plan, as the best of the three teams. They also noted that the other two teams could be considered for future projects in the City.
At this time, the project is on schedule per OPAC’s proposed timeline, with the artists preparing to engage in public outreach and hire an intern over the summer and then prepare the final design upon the approval of the City Council. The timeline then calls for the actual mural installation to occur in early fall, with the formal unveiling proposed to occur concurrently with the re-opening of the library itself. (Note that the original time frame called for only the mural to be unveiled in October/November 2024, since the flood that damaged the library was not accounted for.)
Therefore, In order to keep with the current timeline, it is requested that the City Council approve the draft mural concept presented above and on the attached pages and authorize the Mural Committee to coordinate the completion of the project with the artists.
Strategic Plan
Primary Strategic Pillar(s) and Initiative(s):
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June 17, 2024
Safe, Secure, & Beautiful Community
• Upgrade our beach, parks, City-owned facilities and structures to provide a better experience for our residents, employees, commuters, and visitors FISCAL IMPACT:
The cost for the entire mural project will be paid from the City/Port Community Benefit Fund and therefore, there will be no impact to the General Fund.
ATTACHMENTS:
A. May 22, 2024 presentation by Renee Fox and David Russell B. Samples of completed works by Renee Fox and David Russell Agenda Item No. 17 Page 6 of 28 CC Agenda 06-17-2024
Mural Proposal for Ray D. Prueter Library
Port Hueneme
By Renée Fox & David Russell
Attachment A
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Maritime Stories of Port Hueneme
By Renée Fox & David Russell
We are pleased to present our proposal for the Ray Prueter Library mural in celebration of Port Hueneme’s 75th anniversary. Our mural design is inspired by maritime stories of Port Hueneme, past, present and future. These are stories of humans who have flourished here, as compassionate stewards of the rich local coast environment. These stories include bright visions for the future, indigenous migrant agricultural workers and farmers, Chumash peoples, overseas traders, visionaries, visitors who come for recreation, and all who are benefited by the forward-thinking green technologies developed by scientists and Naval contributions. As educators, we want to share the stories we’ve learned that contributed to our design. Our concept is a mural that educates viewers about stories they are a part of, by living, working or visiting Port Hueneme.
The accessibility of public art requires artists to uphold a level of responsible art-making. As such, research and social connections need to be forged in order to create a public work that is authentic and meaningful to the served community. Our design combines symbols and images from our research that refer to different stories. A flowing water graphic is the connecting element creating movement throughout our design representing Port Hueneme’s intrinsic, and ancient identity as a gateway city between land and sea, used for trade, sustenance, migration and recreation. This inlet, protected by the Channel Islands, has brought economic and technological growth to local people since the Chumash, to whom we pay respect and acknowledge as the traditional custodians of the land that inspires our mural.
Chumash culture is represented in our mural by symbols copied from the Santa Barbara Chumash cave paintings. The center of the mural is anchored by a Chumash Tomol (boat) that wraps around both walls. The boat, used for trade and fishing, would have been brought ashore to Hueneme (the resting place), bringing goods with it to and from the Channel islands. Included in the mural design are the Chumash word for ocean sxa ‘min, and Mixteca word for story yatatu’un in reference to our title. We understand the importance of accurately representing the stories of people who are a part of Port Hueneme’s rich history and culture, as well as the significance of Native American peoples’ place in the learning and research activities of this library. If our proposal is commissioned, we plan to engage people from the local Chumash and Mixteco communities to help inform the indigenous language in the mural design.
Port Hueneme’s present-day and recent history include stories of agriculture, migration and environmental sustainability. In our mural design, a cluster of Lemon blossoms crowning the prow of the Chumash boat recognize that local agriculture Agenda Item No. 17 Page 11 of 28 CC Agenda 06-17-2024
(grown and shipped elsewhere) has driven significant growth of the local economy, in large part by the hard labor of over 20,000 Mixtec indigenous Mexican farmworkers who live and work in Ventura County. Monarch butterflies in the mural serve as symbols of migration for the diverse population of people who live and work in Ventura County and Port Hueneme. Purple silhouettes of the shipping Port’s contemporary clean power electric cranes tell Port Hueneme’s story of a commitment to ecological sustainability with green technology that will help to secure a healthy future for the City. We were thrilled to find that through its efforts to reduce greenhouse gasses and air pollutants, in 2023, the Port of Hueneme was among the highest scoring Ports in California for environmental action. Additionally, the area’s endangered and sensitive populations of wetland birds are represented by a Great Blue Heron, featured on the main mural wall. The important role of environmental stewardship defines the future of Port Hueneme, and beyond. With a commitment to protect local wildlife and scientific research to support the health of our oceans, Port Hueneme will surely lead the way for efficient and non- polluting technologies. In turn, this will set a precedent for international trade and ensure future populations have access to clean water and healthy food sources.
Finally, it is important to us that the formal composition of our design highlights and elevates the existing beauty of the Library’s architecture and entry floor tile mural of swirling water rivulets. We chose to complement and preserve the look of the building by floating the mural within the shape of it’s walls, rather than painting walls from top to bottom. This way, the building’s architecture and the mural can both be appreciated. Our design takes inspiration from the building’s references to water; an elegant roofline arch like a wave and flowing curves in the sidewalks leading to the library and hints at these through the flow of one element to the next.
Each element’s placement recognizes the building’s shape- for example the top Chumash symbol nestled into the apex of the main wall that creates a place for the eyes to rest and center the mural, the undulating line that the water shapes create, moving the eye along the building to the shape of a flying Blue Heron, framed by the upward reaching prow of the Chumash boat. The Monarch butterflies at both sides of the entry draw viewers and visitors into the Library. The mural site’s intimate neighborhood location, connection to the beautiful Bubbling Springs Park and closeness to the coast contributed to our selection of a serene and uplifting color palette.
We feel that community representation within a public artwork is essential for connectivity, inclusiveness, equity and stewardship. The proposed mural design represents and celebrates the community, past, present, and future of Port Hueneme. We intend for viewers to be inspired not only by the aesthetic beauty of the design but to become curious and go deeper. We hope the design inspires the public to learn the meanings behind the symbols and iconography. To gain an Agenda Item No. 17 Page 12 of 28 CC Agenda 06-17-2024
appreciation and respect for the past, guiding a sustainable, healthy unified future for their respective community from a social, ecological, and cultural perspective.
Please know that while this proposal is a result of much research and concept development, we are amendable to modify aspects of our design based on the feedback of Port Hueneme Stakeholders and the mural committee.
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Maritime Stories of Port Hueneme
Community Engagement
By Renée Fox & David Russell
As professional artists and educators, pedagogy and context-driven research informs our design process and approach to community engagement. We are inspired by this project for the opportunity to represent the rich history and culture of the City of Port Hueneme, but also because the mural site is a public library and a center for learning and growing. As the City of Port Hueneme’s name is derived from indigenous culture, we feel that acknowledging the present-day indigenous culture will solidify the historical fabric of the community by preserving their languages.
We would like to connect with the Wishtoyo Chumash Foundation to validate our research/ data and possibly participate in an acknowledgment ceremony. (Mural Iconography includes Chumash cave paintings and historical Tomol/ sea vessel) We also would like to engage with MICOP organization /Mixteco community, who we see as essential to the local agricultural history and economy of Ventura County, to interpret indigenous languages such as Mixteco, Triqui, Zapoteco, Chatino, Amuzgo, Tlapaneco, and Pure´pecha and to validate research/ data and possibly participate in an acknowledgment ceremony. People we engage for information and activities will be compensated for their time.
Below are 3 different possibilities for community engagement we feel would be relevant to this project and meaningful. We welcome the mural committee's feedback to decide what approach is best.
1- We can see engaging current and future generations by using social media and a web presence to educate viewers. In this case, we would create an educational website that would serve as a didactic for interpreting the mural and also share stories from local residents as well as scientific information, and links to stakeholders.
A QR code embedded into the final mural installation would easily access the website.
2- A playful way we could engage and educate viewers and visitors to the library is to provide access to documents accessible to the public within the library space. These would take the shape of interactive worksheets (word searches and coloring pages) that directly correspond with the mural design. This is an opportunity to directly engage local youth in a fun and impactful way to teach art, science, culture and history.
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3- Another impactful way to engage the community is through an internship experience. We could offer a local youth (16-22 years old) an opportunity to learn by working with us on the fabrication/ installation of the mural on-site. The selected student would participate and learn the process of professional mural production from two Otis College Professors with no cost to them. The lasting impact of this arrangement would be to invest in the education of a young local artist who will contribute to the art community and City of Port Hueneme in the future. This internship would require help from the City/ Library to distribute a call, criteria for the selected young artist, and help to form a panel to select the artist.
Thank you for your consideration!
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ATTACHMENT B
(Fox-Russell Other Works, Resume and Write-Up for Mural Sub-Committee) “Dream Big” – Westchester Family YMCA, Westchester, CA
“Symbols of Crossroads” - Crossroads Elementary School, Santa Monica Agenda Item No. 17 Page 17 of 28 CC Agenda 06-17-2024
“Welcome to Westchester” – Westchester/LAX
“Where We Are From” – Dockweiler Beach, Los Angeles
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Sunrise over the San Gabriels – Olive View Village, Sylmar, CA “Technicolor Pandemonium” – LAX, Terminal 2
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“Songs of Freedom” – LAX, Terminal 7
“Springtide” – Otis College, Westchester, CA
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Ray D, Preuter Library Mural Project, Port Hueneme, CA
Renée Fox + David Russell of Mobile Mural Lab Team Application _____________________________________________________________________________ Artist Team Resume
Renée A. Fox
B. Frederick, MD 1973
1133 N La Brea Ave, Inglewood CA 90302 | 310.621.5416
[email protected] | reneeafox.com
Education
1998-2000 Corcoran School of Art & Design, DC
2002 BFA- Otis College of Art and Design, CA
Public Art
2023 Dream Big, Mural, Mobile Mural Lab, Westchester Family YMCA, CA 2022 Technicolor Pandemonium, Mural, City of Los Angeles DCA, LAX Airport, LA, CA Sunrise Over the San Gabriel Foothills, Permanent mural, UCLA Olive View Restorative Care Village, Sylmar, CA
Symbols of Crossroads, Mural, Crossroads School, LA, CA 2019 Songs of Freedom: Renée A Fox & Write Girl, curated by Elizabeta Betinski, Mural, City of Los Angeles DCA, LAX airport, LA, CA
2017 The Corruption of Faustus, Mural, Otis College of Art and Design, LA, CA Appropriate Inhabitants, SPARC (South Pasadena Arts Council), Mural, Pasadena, CA 2012 Birthing Rite, Mural, Coagula Curatorial, LA, CA
Renée A. Fox: A Decadent Work, Mural, West LA College, LA, CA Teaching Experience
2019 - Present- OTIS College of Art & Design, Drawing + Painting I&II, Sophomore, Comm Arts, Alternate Materials + Entrepreneurship, Senior Community Service
2018-2019 District 2 Arts Commissioner, Inglewood, CA
2006-2018 Founder/ Organizer, Inglewood Open Studios
2021- Present President, Inglewood Open Studios, 501(c)(3) Agenda Item No. 17 Page 21 of 28 CC Agenda 06-17-2024
David K Russell
www.davidkentrussell.com
8127 Truxton Ave. | Los Angeles, CA| 90045
[email protected] | 720-810-1563 | www.MobileMuralLab.com Education
2009-2011 Otis College of Art & Design, M.F.A. Public Practice 2010 Open University- Anyang, Korea- Urbanism/ Gentrification 1999-2001 Metropolitan State College of Denver, K-12 Art Education 1994-1998 University of Tulsa, B.F.A. Painting/ Art History 1996/97 Richmond College- Florence, Italy, Art History/ Painting Teaching Experience
2010-Present Otis College of Art and Design- (Senior Lecturer) 2019-Present Loyola Marymount University- (Lecturer)
Designed/ Implemented Elementary Art Program, Art Instructor (grades K-6) 2001-2004 A.P. Drawing/ Painting & Commercial Art Instructor, (grades 9-12) 2004-2008 Mobile Mural Lab / 2010-Present
(Selected) Projects/ Public Works
Westchester/ Drollinger Properties/ Otis College- Original Hand Painted Mural/ 10,000 sq. ft. 2018
METRO (Los Angeles MTA)- Art Education Residency w MOCA teens 2017 18th St Arts Center- Mural Installation
2015 Los Angeles High School – Art Education Residency/ Mural Installation 2015 Grand Park L.A. - Civic Engagement- July 4th Event, 2012 Dockweiler Beach- Mural Installation
2011 Project Row House- Mural Installation for Andrea Bowers 2011 Artist Restoration Team- Great Wall of L.A. - Social and Public Art Resource Center (SPARC-Judy Baca)
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_____________________________________________________________________________ Artist Team Statement
As artists and outdoor enthusiasts in our own right, we are inspired by our love of nature and the beauty of our home state of California. When engaged in public practice, we pride ourselves on being educators and facilitators who create art through a process of civic and community engagement that fosters diversity, empowers communities, and instills hope and pride in place. Inspired by a keen interest in natural and social histories, our practice involves significant research and engagement with project stakeholders. We believe art, especially public art, belongs to all of us and has the power to change the world for the better by elevating human experience and strengthening bonds between people.
_____________________________________________________________________________ Statement of Interest
To Whom it concerns,
We are writing to express our collective interest in the Ray D, Preuter Library Mural Project in Port Hueneme.
Together and between us, we have successfully completed numerous public projects in various scale and budget. At its core, our process involves inviting artists to collaborate in the creation of responsible public art that becomes an integral part of the communities it serves, celebrating their unique identity. Our mission is rooted in collaboration, education, inclusiveness and responsible public art making with the intention of representing and celebrating the unique identity of people and place.
Together we bring a strong practice with over 20 years of teaching and community engagement experience as well as large project management and OSHA certification.
We are eager to leverage our strengths in community collaboration and engagement to bring a distinctive project to life that also addresses the rich history and celebrates the City’s past, present, and future.
Our process aims to engage all stakeholders - including The City of Port Hueneme, the Ventura County Library (VCL) and the Oxnard Performing Arts Center Corporation (OPAC) and others - through youth workshops, workshops and conversations with community stakeholders, and in-depth research of the site's history and use.
Workshops will educate participants on mural production while gaining important Agenda Item No. 17 Page 23 of 28 CC Agenda 06-17-2024
contextual information to inform the mural design. These collaborative efforts will be carefully documented to extract important concepts, images, and ideas that will shape a comprehensive Design Brief, which is further developed by ongoing community feedback. Our installation process involves active community engagement on-site, fostering a sense of ownership and connection to the artwork. An example of this process can be seen in Image #3 of “Lavender Cheveevi” where we collaborated with a Tongva tribal council member to inform symbols, signs and icons representing historical indigenous values/ concepts.
Port Hueneme and the Ventura County coastal region holds a special place for David personally. As an oceanic and historical enthusiast, David spends ample time in the area surfing, fishing and sailing. Having been to the Channel Islands numerous times to experience the local flora/ fauna and imagine the lives of the indigenous peoples has been a major inspiration for his art public practice. Education and community engagement through visual narratives and histories can inspire cultural and environmental preservation which we strive to include within the conceptual framework of every project.
Collectively, we bring over 20 years of professional public art-making experience to the table, demonstrating strengths in collaboration, community involvement, education at all levels, administration, budgeting, organization, timeliness, material knowledge, professionalism, and a shared desire to create relevant, responsible artwork that communities can take pride in. We have both worked with County and City departments and various art organizations and business entities on long term projects and do well navigating and building on these relationships. Our portfolio includes significant permanent public art pieces commissioned by DCA, LACDAC, METRO, YMCA, LAWA, among others, that continue to stand the test of time.
Thank you for considering our team for this meaningful opportunity.
Renée Fox
David Russell
Agenda Item No. 17 Page 24 of 28 CC Agenda 06-17-2024
_____________________________________________________________________________ References
Iris Regn, Civic Art Project Manager, Special Projects Los Angeles County Department of Arts and Culture
[email protected]
323 327 7595
Felicia Filer, Director, Public Art Division
City of Los Angeles Department of Cultural Affairs
[email protected]
213-855-7159
John Loussararian, Senior Executive Director
YMCA of Metropolitan Los Angeles
[email protected]
310 981 5347
______________________________________________________________________________ Image List
Image1
Mobile Mural Lab & Renée Fox
Dream Big, 2023
Enamel, fine ground oil, Montana aerosol paint, Mural Shield UV top coat/ graffiti coat 35 x 280 feet
$80,000 completed in 2023
Commissioned by/ located at: Westchester Family YMCA Westchester, CA We worked with the YMCA mural task force and did engaged YMCA youth to develop content with 3 workshops and a youth paint day. The uplifting theme is two children making origami and dreaming their creations into reality- flying cranes and butterflies.
Image2
Mobile Mural Lab & Renée Fox
Symbols of Crossroads, 2022
Enamel, Mural Shield UV top coat/ graffiti coat
17 x 160 feet
$35000, completed in 2022
Agenda Item No. 17 Page 25 of 28 CC Agenda 06-17-2024
Commissioned by/ located at: Crossroads Elementary School of Arts & Sciences, Santa Monica, CA
We created and taught a 6 class curriculum of mural workshops with K-6 to develop a selection of symbols made by the students that were used to create the final mural Image3
Mobile Mural Lab
Lavender Cheveevi, 2021
Enamel, Mural Shield UV top coat/ graffiti coat
17’ x 200’
$40000, completed in 2021
Commissioned by: Los Angeles Dept of Arts and Culture/ Council District 8 Located at: Stoneview Nature Center, Culver City, CA
Lavender Cheveevi is a research based mural depicting local flora fauna and local Tongva indigenous culture.
Image4
Mobile Mural Lab
Welcome to Westchester, 2018
Enamel and Aerosol, Mural Shield UV top coat/ graffiti coat 65’x 150’
$35000, completed in 2018
Commissioned by: Drollinger Family & DCA
Located at: Westchester/ LAX
This research based mural represents the local community and its’ historical monuments/ events.
Image5
Mobile Mural Lab
Where We Are From, 2012
Latex and Aerosol, Mural Shield UV top coat/ graffiti coat,1 facade features phosphorescent imagery
10’x7 facades/ 3 building structures- 300 total linear feet $80000, completed in 2012
Commissioned by: Los Angeles Dept. of Arts and Culture/ Dept. of Beaches and Harbors
Location: Dockweiler Beach, LA, CA
This mural was created through a process of civic engagements and a youth engagement paint day to elicit design assets.
Agenda Item No. 17 Page 26 of 28 CC Agenda 06-17-2024
Image6
Renée Fox
Sunrise over the San Gabriels, 2022
Fade proof mineral paint on aluminum
20 x 40 feet
$160000, completed in 2022
Commissioned by: Los Angeles County Department of Arts & Culture Located at: Olive View Restorative Care Village, UCLA Medical Center, Sylmar, CA Renée’s personal experience with a family member with mental illness inspired this mural which helped to create a healing uplifting atmosphere for the Olive View Restorative Care Village, an extended care facility treating mental illness, homelessness and drug abuse victims. The mountains cape echoes the foothills behind the mural and the birds are popular local animals.
Image7
Renée Fox
Technicolor Pandemonium, 2022
Acrylic, Graphite on Pellon, UV coat
9 x 208 feet, Los Angeles International
$20000, completed in 2022
Commissioned by: DCA and LAWA
Located at: LAX Airport, Terminal 2, Westchester, CA
Research based mural on LA icons, pandemoniums of wild parrots and invasive passionflower vines.
Image8
Renée Fox & Write Girl
Songs of Freedom (curated by Elizabeta Betinski), 2021
Acrylic, graphite on Pellon, UV coat
13 x 36 feet
$18000, completed in 2021
Commissioned by: DCA and LAWA
Located at: LAX Airport, Terminal 7, Westchester, CA
The artist collaborated with a class of young authors from WriteGirl in a call and response process to create haiku poems by the girls and imagery by the artist Image9
Renée Fox
Springtide, 2015
Acrylic and Graphite on Pellon, UV coat
Agenda Item No. 17 Page 27 of 28 CC Agenda 06-17-2024
$12000, completed in 2015
Commissioned by and located at: Otis College of Art & Design, Bolsky Gallery, Westchester, CA
Springtide is representative of the artist’s feminist practice using popular perceptions of nature and women to create powerful imagery. Here, an orchid/ corpse flower erupts with flying birds to symbolize the Spring season.
Image10
Renée Fox
Sage of the Diviners, 2017
Acrylic and Graphite on Pellon, UV coat
$12000, completed in 2017
Commissioned by and Located at: Otis College of Art & Design, Bolsky Gallery, Westchester, CA
Commissioned by a private client for a drought tolerant garden with an experimental water reservoir beneath. This mural elevates flowers to the status of goddess like figures worshipped by hummingbirds.
Agenda Item No. 17 Page 28 of 28 CC Agenda 06-17-2024
DATE: June 17, 2024
TO: Honorable City Council
FROM: James Vega, City Manager
Michael Federico, Chief of Police
SUBJECT: AUTHORIZATION TO PURCHASE A SEARCH ONLY NONAPPREHENSION POLICE CANINE RECOMMENDATION:
It is recommended that City Council authorize the purchase of a search only nonapprehension police canine and any related items with an estimated cost of approximately $25,000 to $30,000 using identified funds as indicated in the report.
BACKGROUND/ANALYSIS:
The Police Department currently has no police canines. The department previously had a long successful history of police canines and at one point had 5 working canines at the same time. The Port Hueneme Police Department was credited with being the first police department in Ventura County, and one of the first in the state, to have a canine program.
In 2023, officers secured 69 guns into our Property and Evidence Unit. Among those guns were 37 that were seized related to crimes or firearms prohibitions within our community.
The canine would be a firearms/explosives search dog. This would reduce the threat of gun violence on our community’s streets. In addition, this dog could be utilized for security within the Port of Hueneme and assist with security measures for our naval base. This dog is not intended to be an apprehension dog use to take suspects into custody. This canine would be a search dog only. In addition, similar “search only, non-apprehension” dogs in other law enforcement agencies have become friendly faces in their communities and de-facto wellness therapy dogs in police stations and at community events.
The estimated cost to purchase a Police canine and related items (outfitting an existing vehicle, supplies, etc.) is approximately $25,000 to $30,000. The associated training costs are available in the approved budget for next fiscal year; thus, no additional training costs are being requested and the City’s policy provider, Lexipol, has policies available related to police canines and best practices. Authorizing the purchase of the canine and Agenda Item No. 18 Page 1 of 2 CC Agenda 06-17-2024
Police Canine Purchase
June 17, 2024
related items using vacancy savings will allow staff to take the steps needed to reinstate a search only non-apprehension police canine.
Staff recommends Council authorize the purchase for a police canine, not to exceed $30,000 which will be funded from the Department’s salary savings resulting from an unfilled position, which is currently being recruited and estimated to be filled in October 2024 or later. Due to the vacancy savings, this purchase can be made without a new General Fund impact. The City had previously identified funding sources for a canine – such as a potential partnership with REACH or other agencies. If authorized, staff may seek funding from these sources and also submit for grants and other funding opportunities that may reduce the cost to the City for this item.
FISCAL IMPACT:
Funds for the purchase of a police canine in the amount not to exceed $30,000 are available from salary savings within the department’s fiscal year 2024-25 adopted budget.
The estimated salary savings from one unfilled police officer position for 3 months (July to September) is estimated at $42,000, sufficient to cover the purchase of the Police Canine.
Approval of this item requires an appropriation of $30,000 in account 101-441-5600.
STRATEGIC PLAN:
Primary Strategic Pillar(s) and Initiative(s):
Optimal Levels of Service for Residents and Businesses
• Promote operational excellence in all City functions and embody best practices as a municipality.
ATTACHMENTS:
None.
Agenda Item No. 18 Page 2 of 2 CC Agenda 06-17-2024
DATE: June 17, 2024
TO: Honorable City Council
FROM: James Vega, City Manager
Charles Peretz, Deputy City Manager
SUBJECT: USAGE DATA FOR OPEN PLAY AT BOYS AND GIRLS CLUB, THREE
POINT BASKETBALL CONTEST AND BASKETBALL LEAGUE COSTS,
RESOURCES AND CONSIDERATIONS
RECOMMENDATION:
It is recommended that the City Council:
1. Receive information pertaining to the usage of the Boys and Girls Club for the City’s open basketball play program;
2. Consider whether to approve a three-point basketball shooting contest as identified in the staff report and/or modifications, and
3. Receive information related to resources, costs and other considerations associated with the creation of a basketball league.
BACKGROUND/ANALYSIS:
At the January 16, 2024 City Council meeting, Councilmember Martinez requested an agenda item to allow the Council to review data related to participation in the basketball open play hours at the Boys and Girls Club of Greater Oxnard and Port Hueneme (BGC) and receive information pertaining to the establishment of a basketball league. Earlier this Fiscal Year, the City and BGC entered into an agreement which allows for the City to use the BCG facility for open play programs. The agreement stipulates that the City will pay BGC for staffing costs associated with program attendants and custodial services.
To assess demand, the City began offering open play basketball on Tuesday evenings beginning at 6:30 and Saturdays beginning at 10:00 a.m.
Through the month of May, participation in basketball activity, which began last September has averaged more than 17 people on Tuesdays, with the highest single day attendance of 35, and more than 10 people on Saturdays, with the highest single day attendance of 29.
Based on approved funding levels, the City has the funds necessary to expand programming for an additional 3 hours per week during desired periods of the year. City Agenda Item No. 19 Page 1 of 3 CC Agenda 06-17-2024
BGC Info
June 17, 2024
Council could choose to designate additional hours at this time or have hours available to respond to community needs throughout the year.
For example, the City also had a pilot project that allowed Pickleball on Thursday nights between January 9 and March 7. That program averaged 11 participants with the highest single day attendance of 19. This program used hours available under the contract within the City’s approved budget.
Upcoming Gym Renovation and Impact on City Programming
At the January 16 City Council meeting, staff was asked to identify the potential costs and resources associated with operating a basketball league at the gym. Staff researched this request based on the assumption that a successful basketball league would require 8-10 teams, involving 60-70 registrants, and would consist of a 10-week season (including playoffs). League play would require a minimum of 8 hours per week of gym time, necessitating an amendment to the existing agreement and additional budget appropriations to expand the number of hours available for city programing.
It is important to note that the Boys and Girls Club has also advised the City that the gymnasium will be under renovation beginning in early/mid-August with the project planned to be completed by end of January. It is unclear of the exact impact of the renovation, however with this in mind, staff does not recommend pursuing additional efforts related to the league at this time, as the facility may not be available for league play. If Council is interested in the development and implementation of a basketball league after the facility renovation is complete, it may provide such direction to staff. With such direction, staff would research an efficient and cost-effective way to obtain on-site services associated with league play, e.g. officials, score keepers, etc. and develop a team registration fee to be included in the City’s Master Fee Schedule.
It is estimated that costs associated with on-site staff/contractors and expanded facility rental will total approximately $6,000 per 10-week season. Based on current staffing levels, it is anticipated that independent contractor would be used to provide on-site assignments associated with league operation. In addition to these costs, it is estimated that city staff members would need to commit approximately 150 hours per season for various administrative tasks, e.g. program marketing/promotion, registration, scheduling, and contractor management.
Three-Point Basketball Contest
At the June 3, 2024 City Council meeting, Councilmember Martinez inquired about the possibility of holding a three-point basketball competition. This is the proposed plan from Staff for how and when the City could hold such competition if approved by the City Council, including details on the resources that would be utilized for the competition:
Volunteer time will also be sought, Non-shooting participants will be expected to assist with rebounding/ball retrieval during the competition. Staff intends to contract with a DJ to enhance the event with music and fun commentary during the competition. To proceed with the event, staff estimates that the event cost will be not-to-exceed $2,000.
Agenda Item No. 19 Page 2 of 3 CC Agenda 06-17-2024
BGC Info
June 17, 2024
The proposed date would be Saturday, August 3, 2024. Staff anticipates that 2-3 staff members would be needed to support the event, each working up to 5 hours on the day of event for set up, take down, and the event, plus preparation time leading up to the event.
Format: Two rounds (subject to change depending on number of participants).
Shooting Locations: 5 locations around the three-point line will be marked to indicate the shooting spots.
Scoring System: Each made shot earns the shooter 1 point. The “Money ball” (last ball shot from each location) will earn shooters 2 points if made.
Time Limit: Each participant will be given 60 seconds to complete their round.
Winner Determination: The cumulative scores from all rounds determine the winner, with the participant with the highest overall score being declared the winner.
Tiebreaker: In case of a tie, one additional round will be held to determine the winner.
The contest will be staffed by City employees who will coordinate participant check-in, explain contest rules, keep score during the competition and make any contest related determinations that may be necessary.
FISCAL IMPACT:
The cost associated with the three-point basketball contest, which include materials, sports equipment, materials, and contract and personnel costs are being researched but are expected to be less than $2,000. The Boys and Girls Club facility renovation will decrease the City’s use and reduce facility rental costs in FY 24-25. These anticipated savings can be used to cover the costs associated with the 3-point contest.
STRATEGIC PLAN:
Primary Strategic Pillar(s) and Initiative(s):
Optimal Levels of Service for Residents and Businesses
• Promote operational excellence in all City functions and embody best practices as a municipality
• Support and establish programs and events that created a strong sense of community pride and a connection to our history and heritage ATTACHMENTS:
None.
Agenda Item No. 19 Page 3 of 3 CC Agenda 06-17-2024
DATE: June 17, 2024
TO: Honorable City Council
FROM: James Vega, City Manager
SUBJECT: REGIONAL DEFENSE PARTNERSHIP’S BUDGET REQUEST FOR FISCAL YEAR 2024/25
RECOMMENDATION:
It is recommended that City Council consider approval of an increased budget appropriation in the amount of $8,362.39 and annual cost of living adjustments, from $5,000 in prior years, to continue participation with the Regional Defense Partnership (RDP) for Fiscal Year (FY) 24/25.
BACKGROUND/ANALYSIS:
The Regional Defense Partnership (RDP) is Ventura County’s community-based organization that advocates for and supports the county’s military facilities and defense contractors as community assets and being essential to national defense. The RDP is a working partnership that includes elected officials from the County of Ventura and the 10 cities in the county, retired federal and state political leaders, senior military officials, defense contractors, local colleges, and others.
The RDP states that their efforts have brought more than $80 million in new work per year to the Naval Base Ventura County (NVBC), which is Ventura County’s largest employer.
The Navy, alone and not counting the Air Guard or Coast Guard, employs 24,000 civilians and 4,091 active-duty, with a payroll of $4.6 billion.
In the prior two decades since the formation of the RDP, membership dues had not increased and had remained at $5,000 annually. A recent budgetary analysis conducted by the Board determined that an increase in dues is necessary due to increased expenses since for formation of RDP in 1996. The increased expenses include a DC lobbyist, a retired Admiral in San Diego to liaison with Navy Southwest, a part-time Executive Director, a part-time administrative assistant, and a retired Navy “specialist” who writes white papers for the offices they visit during their annual DC lobbying trip.
The annual dues for FY 24/25 have increased from $5,000 to $8,362.39. Additionally, it was determined that annual dues will increase based on the cost of living annually moving Agenda Item No. 20 Page 1 of 4 CC Agenda 06-17-2024
RDP Budget Request
June 17, 2024
forward. The amount of each city’s dues is determined by the percentage of civilian employees whose W-2 forms are sent to their ZIP codes.
Options:
1. Approve budget appropriation of $8,362.39 for FY 24/25;
2. Request additional information from RDP;
3. Decline, which would require follow up conversation with RDP regarding options
FISCAL IMPACT:
Sufficient funds are available.
STRATEGIC PLAN:
Primary Strategic Pillar(s) and Initiative(s):
Strategic Partnerships
• Establish a mechanism for engagement, information sharing, dialogue and ongoing cooperative decision-making with key stakeholders ATTACHMENTS:
A. RDP Budget Request for FY 24/25
Agenda Item No. 20 Page 2 of 4 CC Agenda 06-17-2024
1000 Town Center Drive Suite 300 #22, Oxnard, CA, 93036 February 28, 2024
Attn: James Vega, City of Port Hueneme
RE: RDP BUDGET REQUEST FOR 24/25
The Regional Defense Partnership (RDP) thanks your city for its continuing participation, and requests that you designate $8,362.39 for RDP in your FY 24/25 budget. An explanation for the increase in dues follows.
RDP dues have not increased in the two decades since we formed. However, our Board recently considered the organization’s expenses and income, and determined that an increase in dues is necessary. The expenses include a DC lobbyist, a retired Admiral in San Diego to liaison with Navy Southwest, a part-time Executive Director, a part-time administrative assistant, and a retired Navy “specialist” who writes white papers for the offices we visit during our annual DC lobbying trip. Additionally, we pay for a small office, storage space and memberships in state and national organizations so we can keep track of what is going on, militarily. All of these costs have increased since 1996, when we formed.
What past BRACs (Base Realignment and Closures) taught us was that we needed to relocate tenant activities to Naval Base Ventura County (NVBC) from whatever base they are slated to leave, in order to diversify the range of activity at NVBC, and we have done that! We lobbied many years to bring 30 additional tenant commands here, including an E-2 squadron and school, the Coast Guard’s helicopter unit from LAX, the Navy’s only Directed Energy Test Facility, and the Unmanned Systems Complex (air, surface and subsurface). We also lobbied for and got eight C130J aircraft and a better fire-fighting system for the Air National Guard, as well as a training simulator, and that doesn’t count more than $180 million in military construction projects.
Our efforts have brought more than $80 million in new work per year to the installation, which is Ventura County’s largest employer. The Navy, alone and not counting the Air Guard or the Coast Guard, employs 24,000 civilians and 4,091 active-duty, with a payroll of $4,6 billion. Loss of NBVC would be extremely detrimental to our economy.
While we are proud of our efforts, we can’t sit on our laurels or ease up one bit. Old programs go and we must continue to lure new programs and programs that exist elsewhere which would be a good fit if relocated to NBVC, all in our attempt to “BRAC-proof” the base. When Congress votes again to cut the military budget by closing bases, we still must be prepared to fight as we have done in the three previous BRAC rounds. We do have a reserve to start an anti-BRAC campaign, but it is only a small fraction of what the total cost would be.
We regret the large increase in dues for the coming year; to prevent that from happening again, our Board voted at its last meeting to annually increase dues by the cost of living, unless something extraordinary happens. The percentage formula used to derive dues is the same one Rdp21.org [email protected]
Attachment A
Agenda Item No. 20 Page 3 of 4 CC Agenda 06-17-2024
1000 Town Center Drive Suite 300 #22, Oxnard, CA, 93036 developed by the City Managers and County CEO when we were first formed: each city’s share is determined by the percentage of civilian employees whose W-2 forms are sent to its ZIP codes, with the County paying the cost of the DC lobbyist. Periodically we ask our Congress person to obtain current ZIP data for us, but the proportion of civilian employees who live in each jurisdiction remains surprisingly stable. We have also tried and tried to get similar ZIP data for employees of contractors, but that information is just not available.
The RDP Board is made up of two members of the Board of Supervisors, a Council member from each dues-paying city and 6 members of the public, consisting of retired civilians and military leaders of NBVC, a representative from Cal State Channel Islands, and a former Camarillo City Councilmember/long-time RDP Treasurer.
We look forward to continuing to work with your city to retain and increase the military presence in Ventura County, as well as the economic benefits we derive from it.
Sincerely,
Charlotte Craven,
RDP Treasurer
Agenda Item No. 20 Page 4 of 4 CC Agenda 06-17-2024