c. Termination for Cause. If through any cause, either Party shall fail to timely and adequately fulfill its obligations under this MOU, or if either Party violates any of the covenants, terms, or stipulations of this MOU, the non-breaching Party shall thereupon have the right to terminate the MOU by giving not less than ten (10) calendar days written notice to the breaching Party of the intent to terminate and specifying the effective date thereof. The non-breaching Party shall provide a reasonable opportunity for the breaching Party to cure prior to termination. In no event shall such opportunity to cure extend beyond the term of the MOU. In the event that SCAG invokes this termination for cause provision, all finished or unfinished Work Products shall be provided to SCAG at its option.
18. Records Retention
a. Sub-Recipient and its Consultant(s) shall maintain all source documents, books and records connected with the Projects, all procurements related to the Projects, all work performed under this MOU, and evidence demonstrating the funding was used for the appropriate purposes for a minimum of five (5) years after December 31, 2026. Wherever practicable, such records should be collected, transmitted, and stored in open and machine-readable formats. b. If any litigation, claim, negotiation, audit, monitoring, inspection, or other action has been started before the expiration of the required record retention period, all records shall be retained by SubRecipient and its Consultant(s) for five (5) years after: (a) the conclusion or resolution of the matter; (b) the date an audit resolution is achieved for each annual SCAG OWP; or (c) December 31, 2026, whichever is later.
19. Monitoring and Audits
a. SCAG may monitor expenditures and activities of Sub-Recipient and its Consultant(s) as SCAG deems necessary to ensure compliance with the MOU, the Statutes, the REAP 2.0 Guidelines and the Program Guidelines.
b. At any time during the term of this MOU, SCAG, HCD, the California Department of General Services, the California Bureau of State Audits, or their designated representatives may perform or cause to be performed a financial audit of any and all phases of the Projects. At their request, Sub-Recipient shall provide, at its own expense, a financial audit prepared by an independent certified public accountant.
c. Sub-Recipient agrees that SCAG, HCD, the California Department of General Services, the California Bureau of State Audits, or their designated representatives shall have the right to review, obtain, and copy all records and supporting documentation related to the performance of this MOU. Sub-Recipient agrees to provide any relevant information requested. Copies shall be made and furnished to SCAG upon request at no cost to SCAG.
d. Sub-Recipient agrees to permit SCAG, HCD, the California Department of General Services, the California Bureau of State Audits, or their designated representatives access to its premises, upon reasonable notice, during normal business hours for the purpose of interviewing employees who might reasonably have information related to such records and inspecting and copying such books, records, accounts, and other material that may be relevant to a matter under investigation for the DocuSign Envelope ID: 12459E1A-3BF7-4055-80FE-6FA679629E9A Agenda Item No. 12 Page 28 of 53 CC Agenda 08-18-2025
MOU No. :M-010-24
SCAG Project/OWP No. :305-4926.01
purpose of determining compliance with this MOU, the Statutes, the REAP 2.0 Guidelines, or applicable state and federal laws, rules, and regulations. e. If there are audit findings from SCAG or HCD’s audit, Sub-Recipient must submit a detailed response acceptable to SCAG or HCD for each audit finding within ninety (90) days of the audit finding report.
20. Small Business and Disabled Veteran Business Enterprise Participation a. If for this MOU Sub-Recipient made a commitment to achieve small business participation, then Sub-Recipient must within 60 days of receiving final payment under this MOU (or within such other time period as may be specified elsewhere in this MOU) report to SCAG the actual percentage of small business participation that was achieved. (Gov. Code § 14841.) b. If for this MOU Sub-Recipient made a commitment to achieve disabled veteran business enterprise (“DVBE”) participation, then Sub-Recipient must within 60 days of receiving final payment under this MOU (or within such other time period as may be specified elsewhere in this MOU) certify in a report to SCAG: (1) the total amount the Sub-Recipient received under the MOU; (2) the name and address of the DVBE(s) that participated in the performance of the MOU; (3) the amount each DVBE received from the Sub-Recipient; (4) that all payments under the MOU have been made to the DVBE; and (5) the actual percentage of DVBE participation that was achieved. A person or entity that knowingly provides false information shall be subject to a civil penalty for each violation. (M&V Code § 999.5(d); Gov. Code § 14841.)
21. Compliance with Laws, Rules, and Regulations
a. Sub-Recipient agrees to comply with all federal, state and local laws, rules and regulations applicable to this MOU.
b. Non-Discrimination/Equal Employment Opportunity
i. During the performance of this MOU, Sub-Recipient assures that no person shall be denied the MOU’s benefits, be excluded from participation or employment, be denied Project benefits, or be subjected to discrimination based on race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status, under the Projects or any program or activity funded by this MOU, as required by Title VI of the Civil Rights Act of 1964, the Fair Housing Act (42 U.S.C. §§ 3601-20) and all implementing regulations, the Americans with Disabilities Act (“ADA”) of 1990 (42 U.S.C. §§ 12101 et seq.) and all applicable regulations and guidelines issued pursuant to the ADA, and the Age Discrimination Act of 1975 and all implementing regulations. Sub-Recipient shall ensure that the evaluation and treatment of employees and applicants for employment are free of such discrimination. ii. Sub-Recipient shall comply with the provisions of the Fair Employment and Housing Act (Gov. Code § 12900 et seq.), the regulations promulgated thereunder (Cal. Code Regs. tit. 2, § 11000 et seq.), the provisions of Article 9.5, Chapter 1, Part 1, Division 3, Title 2 of the DocuSign Envelope ID: 12459E1A-3BF7-4055-80FE-6FA679629E9A Agenda Item No. 12 Page 29 of 53 CC Agenda 08-18-2025
MOU No. :M-010-24
SCAG Project/OWP No. :305-4926.01
Government Code (Gov. Code §§ 11135-11139.5), and the regulations or standards adopted by HCD to implement such article.
iii. Sub-Recipient shall permit access by representatives of the Department of Fair Employment and Housing, SCAG, and HCD upon reasonable notice at any time during the normal business hours, but in no case less than 24 hours’ notice, to such of its books, records, accounts, and all other sources of information and its facilities as the Department of Fair Employment and Housing, SCAG, or HCD shall require to ascertain compliance with this Section. iv. Sub-Recipient shall give written notice of its obligations under this Section to labor organizations with which they have a collective bargaining or other agreement. v. Sub-Recipient shall adopt and implement affirmative processes and procedures that provide information, outreach and promotion of opportunities in the Projects to encourage participation of all persons regardless of race, color, national origin, sex, religion, familial status, or disability. This includes, but is not limited to, a minority outreach program to ensure the inclusion, to the maximum extent possible, of minorities and women, and entities owned by minorities and women, as required by 24 C.F.R. § 92.351. c. Recycling Certification. Sub-Recipient shall certify in writing under penalty of perjury, the minimum, if not exact, percentage of post-consumer material as defined in the Public Contract Code Section 12200, in products, materials, goods, or supplies offered or sold to SCAG regardless of whether the product meets the requirements of Public Contract Code Section 12209. With respect to printer or duplication cartridges that comply with the requirements of Section 12156(e), the certification required by this subdivision shall specify that the cartridges so comply (Pub.
Contract Code § 12205).
d. Anti-Trust Claims. Sub-Recipient, by signing this MOU, hereby certifies that if these services or goods are obtained by means of a competitive bid, the Sub-Recipient shall comply with Title 1, Division 5, Chapter 11 of the California Government Code (Gov. Code §§ 4550-4554). e. Child Support Compliance Act. If the Grant Funds provided under this MOU are in excess of $100,000, Sub-Recipient acknowledges in accordance with Public Contract Code 7110, that:
i. Sub-Recipient recognizes the importance of child and family support obligations and shall fully comply with all applicable state and federal laws relating to child and family support enforcement, including, but not limited to, disclosure of information and compliance with earnings assignment orders, as provided in Chapter 8 (commencing with Section 5200) of Part 5 of Division 9 of the Family Code; and
ii. Sub-Recipient, to the best of its knowledge is fully complying with the earnings assignment orders of all employees and is providing the names of all new employees to the New Hire Registry maintained by the California Employment Development Department. f. Priority Hiring Considerations. If this MOU includes services in excess of $200,000, the SubRecipient shall give priority consideration in filling vacancies in positions funded by the MOU to DocuSign Envelope ID: 12459E1A-3BF7-4055-80FE-6FA679629E9A Agenda Item No. 12 Page 30 of 53 CC Agenda 08-18-2025
MOU No. :M-010-24
SCAG Project/OWP No. :305-4926.01
qualified recipients of aid under Welfare and Institutions Code Section 11200 in accordance with Pub. Contract Code §10353.
g. Loss Leader. If this MOU involves the furnishing of equipment, materials, or supplies then the following statement is incorporated: It is unlawful for any person engaged in business within this state to sell or use any article or product as a “loss leader” as defined in Section 17030 of the Business and Professions Code. (PCC §10344(e).)
22. Public Works and Construction
Without limiting the generality of Section 21.a., Sub-Recipient agrees to ensure compliance with all applicable legal authority regarding construction standards and requirements, including but not limited to the following:
a. Labor Code Requirements
i. Sub-Recipient is hereby put on notice that the one or more of the Projects under the MOU may qualify as a public works project and Sub-Recipient will therefore be required to determine whether the Project falls under a classification that would require payment of prevailing wages.
Services constituting public works are described in California Labor Code Sections 1720-1861, as may be amended or recodified by legislative action from time-to-time. ii. If a Project qualifies as a public works project, Sub-Recipient shall be the Awarding Body for the public works project and required to comply with all requirements applicable to the Awarding Body.
iii. If Sub-Recipient or its Consultant(s) will perform services that require payment of prevailing wages, they are required to register with the California Department of Industrial Relations (DIR) in order to be compliant with the law. Neither Sub-Recipient nor its Consultant(s) may work on a public works project without a current and active DIR registration. iv. In the event that Sub-Recipient or its Consultant(s) engages in the performance of a public work under this MOU as defined by Labor Code Section 1770 et seq., Sub-Recipient and its Consultant(s) shall be required to cause such employees who are entitled to prevailing wages, to be paid the required wage amounts pursuant to applicable state law. Sub-Recipient and its Consultant(s) shall ensure compliance with the State of California’s General Prevailing Wage Rate requirements in accordance with California Labor Code, Section 1770, and all Federal, State, and local laws and ordinances applicable to the work.
v. Sub-Recipient further acknowledges that any work that qualifies as a public work within the meaning of California Labor Code Section 1720 shall require Sub-Recipient and its Consultant(s) to comply with the provisions of California Labor Code Sections 1775 et seq. Sub-Recipient agrees to ensure compliance with Labor Code Section 1776 regarding retention and inspection of payroll records and noncompliance penalties, Labor Code Section 1777.5 regarding employment of registered apprentices, and Labor Code Section 1813 regarding forfeiture for violations of the maximum hours per day and per week provisions contained in the same chapter.
DocuSign Envelope ID: 12459E1A-3BF7-4055-80FE-6FA679629E9A Agenda Item No. 12 Page 31 of 53 CC Agenda 08-18-2025
MOU No. :M-010-24
SCAG Project/OWP No. :305-4926.01
b. Sub-Recipient shall comply with all applicable federal, state, and local procurement requirements for public works and construction projects and shall advertise, open bids, award, and approve all construction contracts in accordance with the California Public Contract Code and the California Labor Code.
c. All construction contracts for the Projects shall be administered and managed by Sub-Recipient.
Sub-Recipient shall prepare or have prepared a detailed schedule of performance for the Projects, ensuring that all construction is completed within the timeline allowed by the MOU. Sub-Recipient shall be responsible for requiring the construction contractor to furnish any applicable labor and material bonds and payments and performance bonds naming the Sub-Recipient as obligee, and SCAG as additional obligee, or an insurance policy in lieu of such bonds. d. Sub-Recipient agrees to procure any and all permits, licenses and approvals necessary to complete the Projects, including those necessary to perform design, construction, operation and maintenance, and to comply with all California Environmental Quality Act requirements applicable to the Projects. Sub-Recipient shall pay all charges and fees and give all notices necessary or incidental to the Projects.
e. Sub-Recipient shall prepare, or have prepared, all plans, specifications and estimates for the Projects and ensure that the Projects comply with all applicable federal and state accessibility requirements, including but not limited to the Americans with Disabilities Act, including its implementing regulations at 24 CFR Part 8 and any amendments, and California Government Code Section 4450, and applicable requirements and guidance provided in Title 24 of the California Code of Regulations, for the construction of buildings, structures, sidewalks, curbs and related facilities for accessibility and usability.
f. Sub-Recipient shall conduct all necessary due diligence for the Projects, including but not limited to performing necessary environmental assessments/review of environmental hazard reports, conducting engineer/geotechnical review, commissioning title reports to identify and evaluate the condition of title and encumbrances on the subject property, determining the entity(ies) with site control, including whether any third parties have ownership or site control rights, and determining the suitability for the Project.
g. Sub-Recipient shall ensure any contractors or subcontractors are paid in accordance with applicable laws and regulations.
h. Sub-Recipient shall comply with the procedure set forth in Public Contracts Code Section 9204 for processing contractor claims, paying undisputed amounts, and requiring mediation of disputed amounts.
i. Sub-Recipient shall be responsible for ensuring ongoing maintenance of the Projects after completion.
SCAG shall not be responsible for ongoing maintenance of the Projects after completion.
23. Conflict of Interest
The Parties shall comply with all applicable federal and state conflict of interest laws, regulations, and policies.
DocuSign Envelope ID: 12459E1A-3BF7-4055-80FE-6FA679629E9A Agenda Item No. 12 Page 32 of 53 CC Agenda 08-18-2025
MOU No. :M-010-24
SCAG Project/OWP No. :305-4926.01
24. Independent Contractor
Sub-Recipient and its Consultant(s) shall be independent contractors in the performance of this MOU, and not officers, employees, or agents of SCAG.
25. Assignment
Neither Party shall assign any rights or interests in this MOU, or any part thereof, without the written consent of each Party to this MOU, which consent may be granted, withheld or conditioned in the consenting Party’s sole and absolute discretion. Any assignment without such written consent shall be void and unenforceable. The covenants and agreement of this MOU shall inure to the benefit of and shall be binding upon each of the Parties and their respective successors and assignees.
26. Release of Information
Sub-Recipient shall not release any information or Work Products to a third party or otherwise publish or utilize any information or Work Products obtained or produced by it as a result of or in connection with the performance of services under this MOU without the prior written authorization of SCAG, except as provided under this MOU or as required by law (including, without limitation, pursuant to the California Public Records Act).
All public-facing communications materials relating to this MOU or its subject matter shall acknowledge SCAG. Communications materials include, but are not limited to, site signage, printed information materials, print and online publications, websites, advertisements, video, public service announcements, social media postings, events, media advisories, news releases, and all other related materials.
To ensure consistency of public information about SCAG programs and funded work products, SubRecipient is required to notify and coordinate with SCAG’s Manager of Media & Public Affairs or a specified designee on any media inquiries or plans for proactively providing information to media outlets.
All communication materials must be provided to SCAG prior to completion so that inclusion of this element can be confirmed. SCAG will reply within three business days; if no reply is received, the Sub-Recipient can proceed without comments.
SCAG Communication Contact:
Alisha James
[email protected]
(213) 236-1884
27. Non-Exclusivity
Nothing herein is intended nor shall be construed as creating an exclusive arrangement between SCAG and Sub-Recipient. This MOU shall not restrict SCAG from acquiring similar, equal or like services from other entities or sources.
DocuSign Envelope ID: 12459E1A-3BF7-4055-80FE-6FA679629E9A Agenda Item No. 12 Page 33 of 53 CC Agenda 08-18-2025
MOU No. :M-010-24
SCAG Project/OWP No. :305-4926.01
28. Severability
If any provision of this MOU is held to be illegal, invalid, or unenforceable, in whole or in part, such provision shall be modified to the minimum extent necessary to make it legal, valid, and enforceable, and the legality, validity, and enforceability of the remaining provisions shall not be affected thereby.
29. Survival
The following sections survive expiration or termination of this MOU:
Section 10 (Work Products)
Section 12 (Notices)
Section 13 (Insurance)
Section 14 (Indemnification)
Section 15 (Disputes)
Section 18 (Records Retention)
Section 19 (Monitoring and Audits)
Section 21 (Compliance with Laws, Rules, and Regulations) Section 22 (Public Works and Construction)
Section 23 (Conflict of Interest)
Section 26 (Release of Information)
Section 31 (Jurisdiction and Venue)
Section 32 (Waiver)
30. Flow-Down Provisions
Sub-Recipient shall include the following provisions in all agreements entered into containing funds provided under this MOU, require the provisions below that survive expiration or termination of this MOU to survive, and shall include a requirement in all agreements that each of them in turn include the requirements in all contracts and subcontracts they enter into to perform work under the Project.
SCAG does not have a contractual relationship with Sub-Recipient’s Consultants, and Sub-Recipient shall be fully responsible for monitoring and ensuring compliance with these provisions.
Section 3.c. (Scope of Work and Sub-Recipient’s Responsibilities – nexus to REAP 2.0) Section 3.e. – 3.g. (Scope of Work and Sub-Recipient’s Responsibilities – procurements) Section 3.k. (Scope of Work and Sub-Recipient’s Responsibilities – penalty of perjury) Section 5.e. (Funding – repayment of ineligible costs)
Section 6 (Invoices)
Section 7 (Reporting)
Section 8 (Accounting)
Section 9 (Allowable Uses of Grant Funds)
Section 10 (Work Products)
Section 13 (Insurance)
Section 14 (Indemnification)
Section 18 (Records Retention)
Section 19 (Monitoring and Audits)
Section 21 (Compliance with Laws, Rules, and Regulations) DocuSign Envelope ID: 12459E1A-3BF7-4055-80FE-6FA679629E9A Agenda Item No. 12 Page 34 of 53 CC Agenda 08-18-2025
MOU No. :M-010-24
SCAG Project/OWP No. :305-4926.01
Section 22 (Public Works and Construction)
Section 23 (Conflict of Interest)
Section 24 (Independent Contractor)
Section 25 (Assignment)
Section 26 (Release of Information)
Upon SCAG’s request, Sub-Recipient shall provide SCAG a copy of any such agreement.
31. Jurisdiction and Venue
This MOU shall be deemed an agreement under the laws of the State of California and for all purposes shall be interpreted in accordance with such laws. Subject to the provisions in Section 15, the Parties hereby agree and consent to the exclusive jurisdiction of the courts of the State of California and that the venue of any action brought thereunder shall be Los Angeles County, California.
32. Waiver
No delay or failure by either Party to exercise or enforce at any time any right or provision of this MOU shall be considered a waiver thereof of such Party’s right thereafter to exercise or enforce each and every right and provision of this MOU. A Waiver to be valid shall be in writing but need not be supported by consideration. No single waiver shall constitute a continuing or subsequent waiver.
33. Standard of Care
Sub-Recipient and its Consultant(s) shall perform the work required for the Project under this MOU in accordance with generally accepted industry standards, practices, and principles applicable to such work.
34. Force Majeure
Neither Party shall be liable or deemed to be in default for any delay or failure in performance under this MOU or interruption of services resulting, directly or indirectly, from acts of nature, civil or military authority, acts of public enemy, war, strikes, labor disputes, pandemics, or any other similar cause beyond the reasonable control of the Parties, provided that the Party seeking to delay or excuse its performance as a result of such event shall notify the other Party in writing of such circumstances within not more than ten (10) days following the first occurrence of the event forming the basis of the delay or excuse of performance. In the event that the Party seeking to delay or excuse its performance fails to timely deliver the notice described in the previous sentence, then such event shall not relieve the Party from its timely performance.
35. Entire MOU
This MOU, comprised of these terms and conditions, the attached exhibits, and any properly executed amendments, represents and contains the entire agreement of the Parties with respect to the matters set forth herein. This MOU supersedes any and all prior negotiations, discussions and, if any, previous agreements between the Parties with respect to the matters set forth herein.
DocuSign Envelope ID: 12459E1A-3BF7-4055-80FE-6FA679629E9A Agenda Item No. 12 Page 35 of 53 CC Agenda 08-18-2025
MOU No. :M-010-24
SCAG Project/OWP No. :305-4926.01
36. Execution
This MOU, or any amendments related thereto, may be executed in multiple counterparts, each of which shall be deemed to be an original, but all of which shall constitute one and the same agreement.
The signature page of this MOU or any amendments may be executed by way of a manual or authorized digital signature. Delivery of an executed counterpart of a signature page to this MOU or an amendment by electronic transmission scanned pages shall be deemed effective as a delivery of a manually or digitally executed counterpart to this MOU or any amendment.
37. Effective Date
This MOU shall be effective as of the last date on which the document is executed by all Parties.
38. Authority
Sub-Recipient warrants and certifies that it possesses the legal authority to execute this MOU and to undertake the Projects, and, if applicable, that a resolution, motion, or similar action has been fully adopted or passed, as an official act of Sub-Recipient's governing body, authorizing receipt of the Grant Funds, and directing and designating the authorized representative(s) of Sub-Recipient to act in connection with the Projects and to provide such additional information as may be required by SCAG.
DocuSign Envelope ID: 12459E1A-3BF7-4055-80FE-6FA679629E9A Agenda Item No. 12 Page 36 of 53 CC Agenda 08-18-2025
SIGNATURE PAGE TO
MEMORANDUM OF UNDERSTANDING
No. M-010-24
IN WITNESS WHEREOF, the Parties have caused this Memorandum of Understanding to be executed by their duly authorized representatives as of the dates indicated below:
SOUTHERN CALIFORNIA ASSOCIATION OF GOVERNMENTS (“SCAG”) By: _______________________________________________ _________________ Cindy Giraldo Date
Chief Financial Officer
APPROVED AS TO FORM:
By: _______________________________________________ _________________ Jeffery Elder Date
Acting Chief Counsel
VENTURA COUNTY TRANSPORTATION COMMISSION (“Sub-Recipient”) By: _______________________________________________ _________________ Martin R. Erickson Date
Executive Director
APPROVED AS TO FORM:
By: _______________________________________________ _________________ Steven T. Mattas Date
General Counsel
DocuSign Envelope ID: 12459E1A-3BF7-4055-80FE-6FA679629E9A 12/13/2023
12/18/2023
12/18/2023
12/19/2023
Agenda Item No. 12 Page 37 of 53 CC Agenda 08-18-2025
VCTC: Exhibit A1‐A4 – Scopes of Work
Exhibit A‐1 – VC01
Project Title: Countywide Transit Stops and Stations Needs Assessment and Infrastructure Improvements
Project Description: This project will conduct an inventory of all bus stops and train stations in Ventura County and will fund capital improvements at transit stops and stations owned by transit agencies and municipalities. Capital improvements that result from this project can be paired with future affordable housing investments within Ventura County to foster inclusive development and boost accessibility and mobility for historically disadvantaged communities.
Final Deliverable:
Transit Stops and StaƟons Final Report
ConstrucƟon Improvements at Transit Stops and StaƟons Project Budget: $1,500,000
DocuSign Envelope ID: 12459E1A-3BF7-4055-80FE-6FA679629E9A Agenda Item No. 12 Page 38 of 53 CC Agenda 08-18-2025
Exhibit A‐2 – VC02
Project Title: Santa Paula Branch Line Trail Master Plan and Environmental Impact Report Update Project Description: The project advances the Santa Paula Branch Line Trail Master Plan, including conceptual design, environmental, and permitting phases to improve active transportation connections to housing, transit, and job centers in the Santa Clara River Valley.
Final Deliverable:
Final Master Plan
Final EIR/EIS
Environmental Permits Obtained
Project Budget: $1,677,000
DocuSign Envelope ID: 12459E1A-3BF7-4055-80FE-6FA679629E9A Agenda Item No. 12 Page 39 of 53 CC Agenda 08-18-2025
Exhibit A‐3 – VC03
Project Title: Countywide Paratransit Integration Analysis Project Description: The project will evaluate and provide recommendations for consolidation of all demand‐response (paratransit and dial‐a‐ride) operations into a new countywide agency with a single call/dispatch center. By improving paratransit service, Ventura County will be able to more effectively and efficiently serve more locations enabling residents to maintain their mobility and independence while remaining connected to their community.
Final Deliverable:
ImplementaƟon Plan
Finance Plan
Project Budget: $300,000
DocuSign Envelope ID: 12459E1A-3BF7-4055-80FE-6FA679629E9A Agenda Item No. 12 Page 40 of 53 CC Agenda 08-18-2025
Exhibit A‐4 – VC04
Project Title: Community Traffic Calming and Pedestrian and Bicycle Safety Program Project Description: The project will establish a Community Traffic Calming Program in Ventura County.
The program will target areas with excessive vehicle speeds, identify concepts for permanent infrastructure improvements, and develop and implement a comprehensive traffic calming program incorporating the SCAG Go Human toolkit.
Final Deliverable:
Safety EducaƟonal Campaign AcƟviƟes
Preliminary Engineering and Cost EsƟmates
Final Summary of Community Traffic Calming and Bicycle Safety Program and Safety EducaƟonal Campaign
Project Budget: $300,000
DocuSign Envelope ID: 12459E1A-3BF7-4055-80FE-6FA679629E9A Agenda Item No. 12 Page 41 of 53 CC Agenda 08-18-2025
Regional Early Action Planning Grants of 2021 (REAP 2.0) County Transportation Commission Partnership Program
Scope of Work Approval Form - Project Summary
1 CTC:
Project:
☐Original Scope of Work Approval
☐Revision Requested - Add, Remove, or Change Project Manager ☐Revision Requested to Project Tasks (Please check all that apply) ☐Revise/Delete a Previously Approved Task ☐ Task Budget Revision ☐Project/Task Date Change ☐Change in Deliverable (Interim)
SCAG Approval Date: ___________________________
Revision No. NUMBER
Revision Effective Date: _________________________
Original Approved Summary of Projects Tasks (approved on DATE) Project/Activity Tasks Outline
Task and sub-tasks Staff/Consultant/
Both
Estimated cost Begin date End date Deliverable
1.0 Project
Administration and
Management
Both $Click or
tap here to
enter text.
Both $Click or
tap here to
enter text.
Click to
enter a
date.
Click to enter
a date.
Both $Click or
tap here to
enter text.
Click to
enter a
date.
Click to enter
a date.
Both $Click or
tap here to
enter text.
Click to
enter a
date.
Click to enter
a date.
Both $Click or
tap here to
enter text.
Click to
enter a
date.
Click to enter
a date.
Total Project Cost $Click to
enter text.
☐Other (Please describe)
Exhibit B – Scope of Work Approval Form
DocuSign Envelope ID: 12459E1A-3BF7-4055-80FE-6FA679629E9A Agenda Item No. 12 Page 42 of 53 CC Agenda 08-18-2025
Regional Early Action Planning Grants of 2021 (REAP 2.0) County Transportation Commission Partnership Program
Scope of Work Approval Form - Project Summary
2 Requested Revisions to Project Tasks If a revision is requested, please also update the project/activity task outline(s) below and highlight the changes.
Revised Project/Activity Tasks Outline
Task and sub-tasks Staff/Consultant/
Both
Estimated cost Begin date End date Deliverable
1.0 Project
Administration and
Management
Both $Click or
tap here to
enter text.
Both $Click or
tap here to
enter text.
Click to
enter a
date.
Click to enter
a date.
Both $Click or
tap here to
enter text.
Click to
enter a
date.
Click to enter
a date.
Both $Click or
tap here to
enter text.
Click to
enter a
date.
Click to enter
a date.
Both $Click or
tap here to
enter text.
Click to
enter a
date.
Click to enter
a date.
Total Project Cost $Click to
enter text.
Route all budget changes to Accounting and B&G.
Signatures below to approve revisions also indicate approval of any modifications to subsequent pages.
Revision Approval Requested By: Revision Approved By:
CTC PROJECT MANAGER SCAG Deputy Director or Authorized Designee Name / Title Name / Title
_______________________________________ _______________________________________ Signature Date Signature Date
DocuSign Envelope ID: 12459E1A-3BF7-4055-80FE-6FA679629E9A Agenda Item No. 12 Page 43 of 53 CC Agenda 08-18-2025
Regional Early Action Planning (REAP) Grant
Subregional Partnership Program
Scope of Work Approval Form – New Project Sheets
3 Project Metrics
Each REAP 2.0 project requires metrics to quantitatively measure the outcome of the project. Project metrics selected on this form will be included in the REAP 2.0 CTC quarterly progress reporting form. Please select all metrics that will apply to your approved projects:
1. Sample
☐ Sample
DocuSign Envelope ID: 12459E1A-3BF7-4055-80FE-6FA679629E9A Agenda Item No. 12 Page 44 of 53 CC Agenda 08-18-2025
Regional Early Action Planning (REAP) Grant
Subregional Partnership Program
Scope of Work Approval Form – New Project Sheets
4 1 Project
☐ Metrics for this project have been selected in the “Project Metrics” portion of this form. _____ (Insert Number of) Procurements Expected for this Project Brief Description of Project: (Pulled from project application) Alignment with SCAG Connect SoCal regional priorities:
Connection to REAP 2.0 Objectives (AFFH, Reducing VMT, Accelerating Infill Development):
Signatures on this page indicate approval of initial SAF in its entirety. Revisions do not require new signatures in this section.
Approved By:
CTC Project Manager SCAG Project Manager
Name / Title Name / Title
________________________________________ ______________________________________ Signature Date Signature Date
Initial SAF Approved By:
SCAG Deputy Director
________________________________________
Signature Date
DocuSign Envelope ID: 12459E1A-3BF7-4055-80FE-6FA679629E9A Agenda Item No. 12 Page 45 of 53 CC Agenda 08-18-2025
Exhibit C – Invoice Report
Invoice Attachments
Cost Reimbursement Summary (A)
Progress Report (B)
Line-Item Billing (C)
Labor Summary Report/Payroll Report (D)
ODC Summary (E)
Proof of Payments (F)
(A) The Cost Reimbursement Summary summarizes the information at the task level.
1. Acceptable proof of payments are in the form of copy of checks or ACH payment confirmations. In addition, copy of paid invoices should also be provided for any consultants charges and payroll report/journal for all sub-recipient's direct labor charges.
2. Include a summary report from your financial accounting system showing total costs incurred to date (if available).
Note: Sub-recipient is responsible for reviewing in detail all their consultant's charges and their subconsultant’s charges, and verifying those charges are in compliance with the award and have been rendered in compliance with the Scope of Work. Subrecipient shall retain all source documentation that account for Sub-recipient costs and payments made to consultants, contractors, vendors and subcontractors, including but not limited to, purchase orders, receipts, progress payments, subcontractor's invoices, timesheets, logs, travel requests, proof of payment, and financial reports. While some of these documents are not required to be submitted as part of the payment request, SCAG may request access to these documents at any time. Sub-recipient must retain these records as per Section 18 of the MOU and must ensure that only allowable costs are claimed.
(D) The Labor Summary Report/Payroll Report must account for the total SCAG activity for each employee during the pay period applicable to the project billed on the invoice. (E) Provide a summary of Other Direct Costs (ODCs), itemized by category. An example is provided. (F) Submit proof of payments for all charges included in the Line-Item Billing.
3. If the Indirect/Overhead Rate and/or Fringe Rate changed from the original approved rates, submit supporting documentation for review and approval with the invoice. (G) Must submit electronic Excel file and signed PDF file.
4. Reference all supporting documentation to the Line-Item Billing.
Cost
Reimbursement
(B) The Progress Report shall describe the percentage and status of work completed at the task and overall level. The progress report should include the overall progress narrative including the work completed by the consultants. The progress report can be submitted in Word or PDF format, if desired.
(C) Enter all charges on the Line-Item Billing tab (direct labor, fringe, indirect/overhead, other direct costs, and consultants).
The Sub-recipient can only claim costs incurred and paid to date. Reference all supporting documentation to the Line-Item Billing (in Column A)
Invoice Submittal Instructions
This checklist shows the required documents that must be included when submitting an invoice.
Data input is required in all tabs.
NOTE: Sub-recipient can only claim costs incurred and paid to date.
DocuSign Envelope ID: 12459E1A-3BF7-4055-80FE-6FA679629E9A Agenda Item No. 12 Page 46 of 53 CC Agenda 08-18-2025
Email Excel file and PDF file to: Date:
[email protected] Invoice #:
Cindy Giraldo Billing Period:
Chief Financial Officer MOU #:
Southern California Association of Governments OWP #:
900 Wilshire Blvd., Ste 1700 MOU Term Date:
Los Angeles, CA 90017 Project Title:
Full Project Budget Amount $ -
Remaining Budget $ -
Percentage of Project Budget Spent #DIV/0!
Overall Percentage of Work Completion 0.00%
Cost Categories Budget Current Invoice Previously
Invoiced
YTD
Expenditure Balance
Task #1 $ - $ -$ -$ -$ -
Task #2 $ - $ -$ -$ -$ -
Task #3 $ - $ -$ -$ -$ -
Task #4 $ - $ -$ -$ -$ -
Task #5 $ - $ -$ -$ -$ -
Task #6 - 5% Admin $ - $ -$ -$ -$ -
GRAND TOTAL -$ -$ -$ -$ -$
Please send check to:
CTC Name
Address
City/State/ZIP
Signature of an Authorized Official
Full Name of an Official who is Authorized to
Legally Bind the Organization
Printed copy should be in Agency Letterhead
Cost Reimbursement Summary
By signing this report under penalty of perjury, I certify to the best of my knowledge and belief that the report is true, complete, and accurate, and the expenditures, disbursements and cash receipts are for the purposes and objectives set forth in the terms and conditions of the award. I am aware that any false, fictitious, or fraudulent information, or the omission of any material fact, may subject me to criminal, civil or administrative penalties for fraud, false statements, false claims or otherwise. I will retain all supporting documentation as required and make it available upon request. I will refund any audit disallowances to SCAG.
Title
Date
DocuSign Envelope ID: 12459E1A-3BF7-4055-80FE-6FA679629E9A Agenda Item No. 12 Page 47 of 53 CC Agenda 08-18-2025
Invoice #:
Billing Period:
MOU #:
Overall Percentage of Work Completion: 0.00%
Task 1: 0.00%
●
●
●
PENDING NEXT MONTH
●
●
Task 2: 0.00%
●
●
●
PENDING NEXT MONTH
●
●
Task 3: 0.00%
●
●
●
PENDING NEXT MONTH
●
●
Task 4: 0.00%
●
●
●
PENDING NEXT MONTH
●
●
Task 5: 0.00%
●
●
●
PENDING NEXT MONTH
●
●
Task 6 - 5% Admin: 0.00%
●
●
●
PENDING NEXT MONTH
●
●
Task Name
0 Progress Report
Task Name
Task Name
Task Name
0 0
0 Task Name
Task Name
DocuSign Envelope ID: 12459E1A-3BF7-4055-80FE-6FA679629E9A Agenda Item No. 12 Page 48 of 53 CC Agenda 08-18-2025
CTC Project Manager Name: Invoice #:
CTC Name Billing Period:CTC Address MOU #:
Project Title:
Task #1 Task #2 Task #3 Task #4 Task #5 Task #6 - 5% Admin Task Name Task Name Task Name Task Name Task Name Task Name Amount Amount Amount Amount Amount Amount
Direct Labor Classification(s):
Project Staff per Labor Summary Report/Payroll Report -$ - $ - $ - $ - $ - $ - $ Subtotal - Direct Labor - $ - $ - $ - $ - $ - $ - $
Indirect/Overhead & Fringe (inc. G&A):
Indirect/Overhead 0.00% - $ - $ - $ - $ - $ - $ - $
Fringe 0.00% - $ - $ - $ - $ - $ - $ - $
Subtotal - Overhead & Fringe (inc G&A): - $ - $ - $ - $ - $ - $ - $ Other Direct Costs (ODCs)
Travel -$ - $ - $ - $ - $ - $
Printing - Directly Chargeable only -$ - $ - $ - $ - $ - $ Other -$ - $ - $ - $ - $ - $
Subtotal - ODCs: - $ - $ - $ - $ - $ - $
Consultant(s)
Consultant 1 -$ - $ - $ - $ - $ - $
Consultant 2 -$ - $ - $ - $ - $ - $
Consultant 3 -$ - $ - $ - $ - $ - $ Consultant 4 -$ - $ - $ - $ - $ - $ Subtotal - Consultant(s): - $ - $ - $ - $ - $ - $
GRAND TOTAL -$ - $ - $ - $ - $ - $ - $ OVERALL PERCENTAGE OF COMPLETION FROM PROGRESS REPORT 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%BUDGET -$ - $ - $ - $ - $ - $ - $ PREVIOUSLY (CUMULATIVE) REIMBURSED AMOUNT AFTER DISALLOWANCES -$ - $ - $ - $ - $ - $ - $ YTD EXPENDITURES (BILLED TO DATE) -$ - $ - $ - $ - $ - $ - $ EARNED TO DATE -$ - $ - $ - $ - $ - $ - $ VARIANCE -$ - $ - $ - $ - $ - $ - $
#DIV/0!
Line-Item Billing
Reference
No.
Cost Categories Approved
Rates
Grand Total
(All tasks)
0000
Grand Total
(All tasks)
DocuSign Envelope ID: 12459E1A-3BF7-4055-80FE-6FA679629E9A Agenda Item No. 12 Page 49 of 53 CC Agenda 08-18-2025
Labor Summary Report/Payroll Report
CTC is required to provide a labor summary report/payroll report that supports the Direct Labor costs for Project Staff billed in the Line-Item Billing.
The report should detail employee's name, hours, and pay rate. Report total must reconcile to the total labor costs billed and segregate employee labor costs to be charged to the 5% Admin portion of the project staff costs.
DocuSign Envelope ID: 12459E1A-3BF7-4055-80FE-6FA679629E9A Agenda Item No. 12 Page 50 of 53 CC Agenda 08-18-2025
Invoice #:
Billing Period:
MOU #:
Travel
Date Type Purpose Cost
$0.00
Printing - Directly Chargeable only
Date Type Purpose Cost
$0.00
$0.00
Other
Date Type Purpose Cost
$0.00
$0.00
Total ODC $0.00 matches
Other Direct Costs (ODC) Summary
0 0
0 0
DocuSign Envelope ID: 12459E1A-3BF7-4055-80FE-6FA679629E9A Agenda Item No. 12 Page 51 of 53 CC Agenda 08-18-2025
Invoice #:
Billing Period:
MOU #:
Travel
Date Type Purpose Cost
2/13/2019 Transportation Meeting w/ Project Manager - Lunch $50.00 2/13/2019 Transportation Travel back home from meeting - Mileage $25.00 $75.00
Printing - Directly Chargeable only
Date Type Purpose Cost
2/7/2019 Printing Marketing Posters $200.00
$200.00
Total ODC $275.00
ODC Receipt Samples - (receipts to be retained by CTC for audit purposes):
LA01 Enhanced GoSGV E-Bike Share Program
1 02/1/19-06/30/23
M-008-24
Other Direct Costs (ODC) Summary
DocuSign Envelope ID: 12459E1A-3BF7-4055-80FE-6FA679629E9A Agenda Item No. 12 Page 52 of 53 CC Agenda 08-18-2025
Exhibit D – Sub-Recipient Report Template
PENDING GUIDANCE FROM HCD
DocuSign Envelope ID: 12459E1A-3BF7-4055-80FE-6FA679629E9A Agenda Item No. 12 Page 53 of 53 CC Agenda 08-18-2025
DATE: August 18, 2025
TO: Honorable City Council
FROM: James Vega, City Manager
Brian Popovich, City Manager’s Analyst
SUBJECT: APPROVAL OF A LETTER OF SUPPORT FOR ASSEMBLY BILL 564:
CANNABIS EXCISE TAX: RATE INCREASE REPEAL
RECOMMENDATION:
It is recommended that City Council approve a letter of support for Assembly Bill 564, and authorize the City Manager to sign the letter.
BACKGROUND/ANALYSIS:
California’s legal-cannabis market recently had a 4 percent excise-tax hike on July 1, 2025, as the statewide rate rose from 15 percent to 19 percent of gross receipts. The California Department of Tax and Fee Administration (CDTFA) states that the adjustment backfills revenue once generated by the former cultivation tax and is scheduled to be recalculated every two years thereafter. Local retailers report that the higher price point is already hurting sales and could steer customers towards the illicit market, threatening legitimate jobs and eroding the City’s sales and cannabis-tax base. Consistent with the City’s Economic Development Plan, which states that the City will make efforts to continue to support the stabilization of the City’s cannabis businesses, staff recommends advocating on behalf of reducing the excise tax to reduce this impact on local businesses.
Assembly Bill 564, introduced by Assemblymember Matt Haney, responds by restoring competitiveness to licensed businesses. The measure keeps the 19 percent rate only through September 30, 2025, then lowers the excise tax back to 15 percent for a fiveyear window ending June 30, 2030. It also postpones any future biennial adjustments until Fiscal Year 2030-31 and caps those increases at the current 19 percent ceiling. By reversing the July increase, AB 564 aims to stabilize lawful operators, retain jobs, and preserve the municipal revenues that fund public safety and community programs. At the time if writing this report, AB 564 has advanced to the Senate Appropriations Committee after clearing the Senate Business, Professions and Economic Development Committee on a 5-0 vote; a hearing is set for August 18, 2025.
Supporting AB 564 aligns with several priorities in the City’s 2025 Legislative Platform.
Section 3.2, Business Establishments/Licenses, urges support for legislation that Agenda Item No. 13 Page 1 of 7 CC Agenda 08-18-2025
AB 564 Letter of Support
August 18, 2025
“enhances local control to license and/or regulate … marijuana dispensaries,” authority that depends on those dispensaries remaining economically viable; lowering the state excise tax helps ensure that viability, keeping regulation in the City’s hands. Section 3.4, Economic Development, calls for “tools and incentives to support job creation and retention,” including State tax incentives that bolster local economies; AB 564’s five-year rollback of the excise rate functions as precisely such an incentive, protecting cannabissector jobs and related municipal revenues. Finally, Section 5.1, Public Protection – Marijuana Regulation, supports legislation that “enhances and protects maximum local regulatory, land-use, and enforcement authority in relation to … cannabis businesses,” a goal best served when consumers patronize the legal market rather than illicit sellers, something a more affordable excise tax helps achieve.
Based on the alignment with the City’s Legislative Platform, staff has prepared the attached letter of support for AB 564 for Council consideration.
FISCAL IMPACT:
None. This item does not require expenditure of funds. Indirectly, passage of AB 564 would help preserve City cannabis-tax and sales-tax revenues that might otherwise decline.
STRATEGIC PLAN:
Primary Strategic Pillar(s) and Initiative(s):
Fiscal & Economic Excellence
• Consider the feasibility and long-term value of economic and physical development of the beaches and other high potential sections of the City Innovation & Opportunity
• Retain and maximize opportunities for local businesses as the backbone of our community
ATTACHMENTS:
A. AB 564 Letter of Support
B. AB 564 Text: Amended July 10, 2025
Agenda Item No. 13 Page 2 of 7 CC Agenda 08-18-2025
August 18, 2025
The Honorable Steve Bennett
Member, California State Assembly
P.O. Box 942849
Sacramento, CA 94249
The Honorable Monique Limón
Member, California State Senate
1021 O St., Ste. 6510
Sacramento, CA 95814
Re: Cannabis Excise Tax Rate Increase Repeal (AB 564) Letter of Support Dear Assemblymember Bennett and Senator Limón,
On behalf of the City of Port Hueneme, we write in strong support of Assembly Bill 564 (Haney), which will roll back the statewide cannabis excise tax from its current 19 percent to 15 percent beginning October 1, 2025, and hold that lower rate through June 30, 2030.
The July 1, 2025 tax increase has already placed significant strain on Port Hueneme’s licensed cannabis retailers, which supply jobs for our community and generate vital revenues for public safety, youth services, and infrastructure. Higher prices are driving consumers toward illicit sellers, eroding local tax receipts, undermining state regulatory goals, and threatening the financial viability of compliant operators.
AB 564 directly addresses these concerns by restoring a competitive excise-tax rate and delaying any subsequent rate adjustments until the 2030-31 fiscal year. Its provisions align with the City’s Legislative Platform in three key areas. Section 3.2 (Business Establishments/Licenses) supports legislation that enhances local control over marijuana dispensaries; that control is meaningful only when licensed businesses can survive in the regulated marketplace. Section 3.4 (Economic Development) calls for tools and incentives that foster job creation and retention; lowering the tax rate functions as an essential incentive that protects local employment and ancillary economic activity. Section
5.1 (Public Protection - Marijuana Regulation) seeks to preserve maximum local regulatory, land-use, and enforcement authority over cannabis businesses; a thriving Attachment A
Agenda Item No. 13 Page 3 of 7 CC Agenda 08-18-2025
AB 564 Letter of Support
legal market strengthens our ability to regulate effectively and keeps consumers out of unsafe, unregulated channels.
For these reasons, the City of Port Hueneme respectfully urges your support and votes in favor of AB 564. We appreciate your leadership in supporting legislation that sustains local businesses, protects public health, and preserves municipal revenue streams.
Should you have any questions or require additional information, please contact me at [email protected].
Sincerely,
James Vega
City Manager
City of Port Hueneme
Agenda Item No. 13 Page 4 of 7 CC Agenda 08-18-2025
ASSEMBLY BILL NO. 564
Bill Text: CA AB564 | 2025-2026 | Regular Session | Amended California Assembly Bill 564
Bill Title: Cannabis: excise tax: rate increase repeal.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed) 2025-07-10 - Read second time and amended. Re-referred to Com. on APPR. [AB564 Detail] Download: California-2025-AB564-Amended.html
AMENDED IN SENATE JULY 10, 2025
AMENDED IN ASSEMBLY MAY 07, 2025
CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION
Introduced by Assembly Member Haney
February 12, 2025
An act to amend Section 34011.2 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
AB 564, as amended, Haney. Cannabis: excise tax: rate increase repeal.
Existing law, the Control, Regulate and Tax Adult Use of Marijuana Act (AUMA), an initiative measure, authorizes a person who obtains a state license under AUMA to engage in commercial adult-use cannabis activity pursuant to that license and applicable local ordinances. The Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), among other things, consolidates the licensure and regulation of commercial medicinal and adult-use cannabis activities.
Existing law, the Cannabis Tax Law, imposes an excise tax upon purchasers of cannabis or cannabis products sold in this state at the rate of 15% of the gross receipts of any retail sale by a cannabis retailer, and, as enacted by AUMA, imposed a cultivation tax on all harvested cannabis that entered the commercial market, as specified. Chapter 56 of the Statutes of 2022 (AB 195) amended AUMA to, among other things, discontinue the imposition of the cultivation tax on July 1, 2022. AB 195, beginning in the 2025–26 fiscal year and every 2 years thereafter, requires the California Department of Tax and Fee Administration to adjust the cannabis excise tax rate by a percentage that will generate an amount of revenue that would have been collected pursuant to the cultivation tax imposed prior to its discontinuation, as specified, not to exceed 19% of the gross receipts of retail sale. Pursuant to that law, the department increased the cannabis excise tax rate to 19% for the 2025–26 fiscal year.
This bill would delay the requirement that the department adjust the cannabis excise tax rate, as described above, to the 2030–31 fiscal year. revise the above-described provisions governing the cannabis excise tax rate. Specifically, the bill would, for the period from July 1, 2025, to September 30, inclusive, 2025, retain the existing cannabis excise tax rate of 19%. For the period from October 1, 2025, to June 30, inclusive, 2030, the bill would decrease the excise tax rate to 15%. Beginning in the 2030–31 fiscal year and every 2 years thereafter, the bill would require the department to adjust the cannabis excise tax rate by a percentage that will generate an amount of revenue that would have been collected pursuant to the cultivation tax imposed prior to its discontinuation, as specified, not to exceed 19%.
Attachment B
Agenda Item No. 13 Page 5 of 7 CC Agenda 08-18-2025
Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals that the tax expenditure will achieve, detailed performance indicators, and data collection requirements.
This bill also would include additional information required for any bill authorizing a new tax expenditure.
This bill would take effect immediately as a tax levy.
Digest Key
Vote: majority Appropriation: no Fiscal Committee: yes Local Program: no Bill Text
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 34011.2 of the Revenue and Taxation Code is amended to read:
34011.2. (a) (1) Effective on and after January 1, 2023, a cannabis excise tax shall be imposed upon purchasers of cannabis or cannabis products sold in this state at 15 percent of the gross receipts of any retail sale by a cannabis retailer. (2) Notwithstanding paragraph (1), on and after July 1, 2025, and before October 1, 2025, the cannabis excise tax rate imposed in paragraph (1) shall be 19 percent of the gross receipts of any retail sale by a cannabis retailer as determined by the department, in consultation with the Department of Finance, pursuant to this section as added by Section 22 of Chapter 56 of the Statutes of 2022. (2)
(3) For the 2030–31 fiscal year and every two years thereafter, the department, in consultation with the Department of Finance, shall, on or before May 1 of the fiscal year immediately preceding the applicable fiscal year, adjust the cannabis excise tax rate upon purchasers of cannabis or cannabis products imposed in paragraph (1) by the additional percentage of the gross receipts of any retail sale by a cannabis retailer that the department estimates will generate an amount of revenue equivalent to the amount that would have been collected in the previous fiscal year pursuant to the weight-based cultivation tax imposed under Section 34012 as it read on July 1, 2022. June 29, 2022. In no case shall the cannabis excise tax exceed 19 percent of the gross receipts of retail sale. The department shall round the rate calculated under this subdivision to the nearest one-quarter of 1 percent. The adjusted rate shall become operative the following July 1.
(3)
(4) On or before May 1, 2030, and each May 1 every two years thereafter, the department, in consultation with the Department of Finance, shall estimate the amount of revenue that would have been collected in the previous fiscal year pursuant to the weightbased cultivation tax imposed under Section 34012 as it read on July 1, 2022. June 29, 2022. The department shall estimate this amount by projecting the revenue from weight-based cultivation taxes that would have been collected in the previous calendar year based on information available to the department, including, but not limited to, information in the track and trace system required pursuant to Chapter 6.5 (commencing with Section 26067) of Division 10 of the Business and Professions Code, or any implementing regulations, as a percentage of gross receipts from the retail sale of cannabis and cannabis products by cannabis retailers in the previous calendar year.
(b) A purchaser’s liability for the cannabis excise tax is not extinguished until the cannabis excise tax has been paid to this state, except that an invoice, receipt, or other document from a cannabis retailer given to the purchaser pursuant to this section is sufficient to relieve the purchaser from further liability for the tax to which the invoice, receipt, or other document refers. (c) A cannabis retailer shall be responsible for collecting the cannabis excise tax from the purchaser and remitting that tax to the department in accordance with this division.
(d) The cannabis retailer shall provide each purchaser with an invoice, receipt, or other document that separately states the cannabis excise tax.
(e) The cannabis excise tax imposed by this section shall be in addition to the sales and use tax imposed by the state and local governments.
(f) Gross receipts from the sale of cannabis or cannabis products for purposes of assessing the sales and use taxes under Part 1 (commencing with Section 6001) shall include the tax levied pursuant to this section. (g) Cannabis or cannabis products shall not be sold to a purchaser unless the cannabis excise tax imposed by this section has been paid by the purchaser at the time of sale.
(h) This section shall not be construed to impose a cannabis excise tax upon medicinal cannabis, or medicinal cannabis product, donated for no consideration to a medicinal cannabis patient pursuant to Section 26071 of the Business and Professions Code. (i) (1) This section shall not be construed to impose a cannabis excise tax upon cannabis or cannabis products designated as a trade sample pursuant to Section 26153.1 of the Business and Professions Code.
Agenda Item No. 13 Page 6 of 7 CC Agenda 08-18-2025
(2) A person licensed under Division 10 (commencing with Section 26000) of the Business and Professions Code that sells cannabis or cannabis products designated as a trade sample pursuant to Section 26153.1 of the Business and Professions Code shall be liable for the cannabis excise tax imposed by this section as if the person were a cannabis retailer at the time of sale.
SEC. 2. (a) For purposes of complying with Section 41 of the Revenue and Taxation Code, as it pertains to the reduction of the cannabis excise tax rate allowed pursuant to Section 34011.2 of the Revenue and Taxation Code as amended by this act, the Legislature finds and declares the following:
(1) The specific goal of the cannabis excise tax rate reduction is to provide immediate tax relief to the cannabis industry. (2) The efficacy of this goal may be measured by the Legislature by the amount of gain or loss in cannabis excise tax revenues resulting from the cannabis excise tax rate reduction allowed by this act. (b) On or before December 1, 2026, June 1, 2027, and annually thereafter, the California Department of Tax and Fee Administration shall submit a report to the Legislature, in compliance with Section 9795 of the Revenue and Taxation Government Code, detailing the estimated amount of gain or loss in cannabis excise tax revenues resulting from the cannabis excise tax rate reduction allowed by this act.
(c) This section shall remain in effect only until January 1, 2031, and as of that date is repealed.
SEC. 3. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.
Agenda Item No. 13 Page 7 of 7 CC Agenda 08-18-2025
DATE: August 18, 2025
TO: Honorable City Council
FROM: James Vega, City Manager
Fred Camarillo, Public Works Director
SUBJECT: AUTHORIZATION TO PRE-PURCHASE A 7,000 GALLON FIBERGLASS
DOUBLE-WALLED AND DUAL-COMPARTMENT FUEL TANK AND TANK
ACCESSORIES WITH NORTHWEST PUMP & EQUIPMENT COMPANY
TO MEET STATE GROUNDWATER REQUIREMENTS
RECOMMENDATION:
It is recommended that City Council:
1. Authorize the City Manager to accept the July 30, 2025 Proposal from Northwest Pump & Equipment Company and execute a Proposal Addendum for the prepurchase of a 7,000-gallon fiberglass double-walled, and dual-compartment fuel tank and tank accessories in the amount of $109,748.06 to meet State of California groundwater requirements.
2. Adopt a Resolution entitled, “A Resolution of the City Council of the City of Port Hueneme, California, Authorizing the City Manager to Accept and Execute a Proposal and Proposal Addendum for the Pre-Purchase of a 7,000-Gallon Double-Walled and Dual-Compartment Fiberglass Fuel Tank and Tank Accessories with Northwest Pump & Equipment Company”.
BACKGROUND/ANALYSIS:
The City of Port Hueneme must remove two underground single-walled steel fuel tanks and the fuel island at the Public Works Department Corporation Yard located at 700 E.
Port Hueneme Road. The State of California has mandated that single-walled fuel tanks be removed by December 31, 2025, to protect groundwater resources. At present, the City’s 4,000-gallon diesel fuel and 2,000-gallon unleaded fuel tanks are not leaking.
The two single-walled steel tanks will be replaced with a double-walled, dualcompartment fiberglass fuel tank. One compartment will hold 3000 gallons of diesel fuel, and the other compartment will hold 4000 gallons of unleaded fuel. These fiberglass underground fuel tanks are in high demand. These tanks require a payment of 25% of the tank’s total purchase price before the manufacturer will begin fabrication of the new tank.
The anticipated fiberglass tank and tank accessories will be ready for delivery between February and April 2026. Upon delivery of the finished tank, the City will pay the balance owed.
Agenda Item No. 14 Page 1 of 13 CC Agenda 08-18-2025
Pre-Purchase Fiberglass Fuel Tank
August 18, 2025
The Public Works Department (PWD) advertised and solicited a public bid with tank vendors to pre-purchase the double-walled fiberglass fuel tank. Unfortunately, no vendor bids were submitted by the July 29, 2025, deadline. Following the bid deadline, PWD contacted Northwest Pump & Equipment Company because they are a certified Xerxes Corporation vendor – Xerxes Corporation being the preferred tank manufacturer, for both PWD and the project’s consultant design engineer. Per City Municipal code (§)2573(j), if no bids are received, the project may be performed by negotiated contract.
Working with the City Attorney, PWD has created a Proposal Addendum that adds the required insurance and bond requirements for Northwest Pump & Equipment Company to have in place for the duration of the pre-purchase period, as Xerxes Corporation is manufacturing the fuel tank.
A Resolution is attached that describes the doubled-walled fiberglass fuel tank prepurchase and delivery terms with Northwest Pump & Equipment Company. It is recommended that the City Council authorize the City Manager or his designee to accept the proposal from Northwest Pump & Equipment Company and execute the Resolution entitled, “A Resolution of the City Council of the City of Port Hueneme, California, Authorizing the City Manager to Accept and Execute a Proposal and Proposal Addendum for the Pre-Purchase of a 7,000-Gallon Double-Walled and Dual-Compartment Fiberglass Fuel Tank and Tank Accessories with Northwest Pump & Equipment Company”.
Staff will return to the City Council for award of contracts to physically remove the two single-walled underground fuel tanks by December 31, 2025, and to install the new underground fiberglass fuel tank with a new fuel island and upgraded fuel inventory monitoring system. While the tanks are out of service, City staff will be obtaining fuel for vehicles offsite with a negotiated vendor.
FISCAL IMPACT:
The total estimated cost for the pre-purchase of a 7,000-gallon doubled-walled and dualcompartment fiberglass fuel tank and tank accessories is $109,748.06. Funds for this prepurchase are available in EN2402.
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:
A. Resolution
- Exhibit A: Proposal from Northwest Pump & Equipment Company (3 pages) - Exhibit B: Proposal Addendum (4 pages)
Agenda Item No. 14 Page 2 of 13 CC Agenda 08-18-2025
RESOLUTION NO. ____
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORT HUENEME,
CALIFORNIA, AUTHORIZING THE CITY MANAGER TO ACCEPT AND
EXECUTE A PROPOSAL AND PROPOSAL ADDENDUM FOR THE PREPURCHASE OF A 7,000-GALLON DOUBLE-WALLED AND DUALCOMPARTMENT FIBERGLASS FUEL TANK AND TANK ACCESSORIES WITH
NORTHWEST PUMP & EQUIPMENT COMPANY
WHEREAS, the State of California has mandated the removal of all single-walled underground fuel tanks by December 31, 2025 to protect groundwater resources; and WHEREAS, the City of Port Hueneme must remove two existing single-walled steel fuel tanks and the fuel island at the Public Works Corporation Yard located at 700 E. Port Hueneme Road; and
WHEREAS, the City intends to replace the existing tanks with a double-walled, dualcompartment fiberglass fuel tank, with one compartment holding 3,000 gallons of diesel fuel and the other holding 4,000 gallons of unleaded fuel; and
WHEREAS, the Public Works Department solicited bids for the pre-purchase of the replacement tank and accessories, and although no bids were received by the deadline, Northwest Pump & Equipment Company submitted a proposal dated July 30, 2025, and is a certified vendor for Xerxes Corporation, the preferred tank manufacturer; and WHEREAS, the City Attorney and Public Works Department have prepared a Proposal Addendum to include insurance and bonding requirements for the duration of the tank’s fabrication period; and
WHEREAS, the total cost for the pre-purchase of the fuel tank and accessories is $109,748.06, and funds are available in the appropriate account.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PORT HUENEME, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1: The City Council hereby authorizes the City Manager to accept the July 30, 2025 Proposal from Northwest Pump & Equipment Company (Exhibit A) and execute the Proposal Addendum (Exhibit B), which includes bonding and insurance provisions required for the duration of the tank fabrication period, and for the pre-purchase of a 7,000-gallon doubled-walled and dualcompartment fiberglass fuel tank and tank accessories. The Proposal dated July 30, 2025, and the Proposed Proposal Addendum dated August 18,2025, are attached hereto and incorporated herein by reference.
SECTION 2: The City Manager, or his designee, is hereby authorized to execute all documents including any amendments or related agreements necessary to carry out the intent of this Resolution, including authorization to issue an advance payment of 25% of the total contract value upon receipt of an invoice and confirmation of production start from the manufacturer provided that all payments are made in accordance with City’s purchasing policies and subject to verification of compliance with bonding and insurance requirements.
SECTION 3: The City Manager, or his designee, is further authorized to take all actions necessary to implement the pre-purchase and delivery of the fuel tank in accordance with the terms outlined in the Proposal and Proposal Addendum, including anticipated delivery on or Attachment A
Agenda Item No. 14 Page 3 of 13 CC Agenda 08-18-2025
before April 1, 2026, and optional post-fabrication storage of up to 30 calendar days at no additional cost, and shall require the Vendor to submit monthly written status reports detailing fabrication progress and any changes to lead time, with final payment to be made Net 30 following successful delivery, inspection, and acceptance of the tank and accessories by the City.
SECTION 4: This Resolution shall take effect immediately upon its passage.
SECTION 5: The City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions.
PASSED, APPROVED, AND ADOPTED this 18th day of August, 2025. ________________________________
Martha R. McQueen-Legohn, Mayor
ATTEST:
________________________________
Georgianna Nicole Alvarez
City Clerk
Agenda Item No. 14 Page 4 of 13 CC Agenda 08-18-2025
TELEPHONE: Email QUOTE NUMBER
PHONE NUMBER Customer Email
DATE OF QUOTATION:
07/30/25 PM PORT TANKS
CUSTOMER / CONTACT:
Charles / Raymond
City of Port Hueneme Public Works Department
700B E Port Hueneme Rd
Port Hueneme, CA 93041
N.W. Pump is not responsible for delays in delivery due to strikes, accidents, priority restrictions or other conditions beyond our control or its failure or delay to order or deliver due to the purchaser's failure to pay N.W.Pump any monies owed on an open job account or job basis. The prices herein do not apply in the event of an underground obstruction, including but not limited to utilities and impenetrable soil, is discovered after this proposal is made. In such event, Buyer is liable for all increased costs.
Buyer may cancel by giving written notice, however, Buyer is liable for all costs incurred by N.W. Pump to the date notice is received. Cancellations or returns are subject to a minimum fifteen (15%) percent restocking charge. Payment terms are net cash on delivery, unless N.W. Pump has approved credit terms or otherwise specified within. If litigation is necessary to enforce this agreement, the prevailing party will be entitled to reasonable attorney's fees, court costs, and interest.
Products carry only the manufacturer's warranty, if any. NWP makes no representations as to product compliance with government regulations. There are no expressed or implied warranties as to goods or services provided by NWP, including the implied warranty of merchantability or fitness for a particular purpose. Statements by a NWP representative that differ from the foregoing shall have no effect. NWP will not be liable for direct, indirect, special or consequential damages, business interruption or loss of profits damages, sustained by Customer or any party claiming by, through or under Customer.
EQUIPMENT SUBTOTAL: $ 98,630.72
$ -
The above price, specifications and conditions are satisfactory and are hereby ESTIMATED SALES TAX: * $ 9,123.34 accepted. You are authorized to supply equipment and/or labor as specified. INCOMING FREIGHT: $ 1,994.00 Payment will be made as outlined above. I understand acceptance of the *Actual sales tax may vary, the customer quotation does not constitute an order until credit has been approved. needs pay the tax shown on the invoice.
I understand that Northwest Pump may file a Right to Lien against TOTAL: $ 109,748.06 the equipment/labor.
1. Price excludes tank offloading, electrical, piping and installation.
2. All Prices are FOB Northwest Pump warehouse except where noted differently.
3. Terms: _25_% down. Tanks and dispensers balance due on completion at factory. Net 30 upon approved credit
4. Terms: _50_% down on all EVR/ISD systems. Non Returnable/Non Refundable
5. Prices are good for 10 days from date of quotation.
QUOTED BY: ACCEPTED BY: TITLE:
Paul Martinez
SIGNATURE SIGNATURE DATE
Paul Martinez 07/30/25 Charles / Raymond
PRINT NAME DATE PRINT NAME
Northwest Pump City of Port Hueneme Public Works Department Desired Delivery Date:
COMPANY: City of Port Hueneme Public Works Department DATE OF QUOTATION QUOTE NUMBER prices in effect at the time of delivery
Equipment prices are subject to all applicable taxes.
Return of non-stock and special order items are subject to restock charges or may not be returnable.
Acceptance of Proposal: SALES TOTALS
TERMS AND CONDITIONS OF SALE
This offer to furnish equipment on the following terms
and conditions expires 10 days from the above date.
N.W. Pump, Inc. reserves the right to
adjust equipment prices to conform to
Northwest Pump and Equipment Co. has been a Petroleum Equipment Distributor since 1959. We are the West's largest distributor of tanks, piping, pumps, meters, tank monitoring systems, leak monitoring systems and lubrication equipment. We are pleased to offer this quotation for the referenced project. Please contact me if you need additional information. 28908 N Ave Paine, Unit B, Valencia, CA 91355 661.294.7866 PROJECT / LOCATION:
City of Port Hueneme Public Works Department
XERXES Tanks
700B E Port Hueneme Rd
Port Hueneme, CA 93041
6. Gilbarco / Gasboy Terms: Special terms apply to the Gilbarco/Gasboy Equipment. Prices reflect a 3% cash discount. Payments must be received within 10 days of invoice. Invoices are sent upon completion of the order at the factory. 3% will be added to invoice and may be deducted if paid within 10 days. Credit card payment not applicable with these terms.
BY SIGNING AND ACCEPTING THIS QUOTATION, CUSTOMER ACKNOWLEDGES THAT HE/SHE HAS READ, UNDERSTANDS
AND AGREES WITH ALL OF THE TERMS AND CONDITIONS LISTED WITHIN GVR Surcharge:
Northwest Pump Equipment Co.
Exhibit A
Agenda Item No. 14 Page 5 of 13 CC Agenda 08-18-2025
COMPANY: City of Port Hueneme Public Works Department QUOTE NUMBER PROJECT: XERXES Tanks
DATE OF QUOTATION
07/30/25 PM PORT TANKS
QTY Part Number DESCRIPTION UNIT PRICE EXTENDED
1 Tanks:
1 XER-TNK
4x3-6' Double Wall-Double
Bulkhead Multi-Compartment
Tank
46,727.57 $ 46,727.57
2 Double Wall Collar &
Sump Packages 9,896.31 $ 19,792.62
2 Double Wall Collar &
Sump Packages 12,023.30 $ 24,046.60
1 Straps, Deadmen &
Turnbuckles for 4x3-6' DW 1,339.55 $ 1,339.55
1 Straps, Deadmen &
Turnbuckles for 4x3-6' DW 4,907.16 $ 4,907.16
1 Straps, Deadmen &
Turnbuckles for 4x3-6' DW 1,817.22 $ 1,817.22
1 1 1
1 1
1 1
1 1
1 1
Exclusions:
Northwest Pump quoted pricing is valid for 10 days from the date of this quote. However, except as otherwise expressly stated, Northwest Pump’s quoted pricing is exclusive of any applicable taxes, duties, fees or other charges of any kind including, but not limited to, sales or use taxes, excise taxes, tariffs, duties, customs or inspection fees, VAT, any other tax, fee or charge (collectively, “Taxes”) incurred by Northwest Pump or its suppliers in connection with the production, sale, distribution, the delivery of goods.
Buyer is responsible for all such Taxes, and any increase. In the event that Northwest Pump or its suppliers are required to pay any such Taxes (including any increase in the amount), regardless whether such Taxes (or increase in the amount) are imposed before or after Northwest Pump’s acceptance of your order, delivery of the goods and/or your payment, you shall be responsible to reimburse NWP for the payment of such Taxes (or increase in the amount thereof). Northwest Pump may add the amount to be reimbursed to the price of the goods or invoice it separately. If Northwest Pump’s prices include or are intended to cover any Taxes, any increase in such Taxes shall be the basis for a price adjustment PCI Compliance Disclaimer: It is solely the Customers responsibility to verify PCI Compliance and Network Processing Compliance with their Merchant Provider. NWP will not be liable for direct, special or consequential damages, business interruption or loss of profits, sustained by Customer or any party claiming by, through or under the Customer.
Merchandise Returns: New Unused Stocking items must be returned within 30 days of the original purchase for full credit. Special ordered items will be charged a minimum 25% restock fee if returned new unused. Cores must be returned within 20 days of the original purchase for full credit.
Please note: Installation and use of all above-ground fuel storage systems carry inherent risks and are subject to regulations and standards established by Federal, State and Local agencies such as the EPA, Building and Fire authorities etc. By signing this document, customer accepts full responsibility for investigation and implementation of technologies required to meet any applicable regulations and requirements related to the parts and or system(s) in this proposal. Customer also accepts full responsibility for any decision to comply or to not comply with applicable rules and regulations. Furthermore, by signing this document, customer agrees to hold harmless and defend Northwest Pump & Equipment Co. and its affiliates from any liability, penalty or disciplinary action that may occur as a result of decisions by customer, their employees or contractor’s to ignore, circumvent or otherwise fail to obey any and all applicable federal, state and local rules and regulations and standards of good, safe, practice.
Northwest Pump standard payment terms must be met as materials arrive at your job site or designated storage facility. Failure to meet payment terms and/or take delivery of your purchased products, will subject your order to any price increases which affect those items therein. Our facilities are best used for the distribution of our products, not the long-term storage of customers property. Please work with your NWP Sales Representative to manage this process.
XERXES 4x3-6' Double Wall-Double Bulkhead Multi-Compartment Tank 1 4x3-6' Double Wall-Double Bulkhead Multi-compartment tank 1 4x3-6' DW-CT brine-interstice
2 22" Manway - DW
6 4" Manway Cover Fitting(s) (Half Cplg.)
4 4" Tank Wall Fitting, half coupling DW
XERXES
2 Double Wall Collar & Sump Package: 42" diameter DW
Round Collar Containment with 42" x 60" DW Sump with
Open Top, 37-1/4" O.D. Access (FibreLite SS Ring by others), Brine and FRP Bonding Kits
XERXES
2 Double Wall Collar & Sump Package: 48" diameter DW
Round Containment Collar with 48" x 60" DW Sump with 36" Watertight Lid, Brine and FRP Bonding Kits
XERXES
4x3-6' Turnbuckles - 10
XERXES
4x3-6' Stnd Straps Set of 5
XERXES
4x3-6' Deadmen
Northwest Pump Equipment Co.
Agenda Item No. 14 Page 6 of 13 CC Agenda 08-18-2025
COMPANY: City of Port Hueneme Public Works Department QUOTE NUMBER PROJECT: XERXES Tanks
DATE OF QUOTATION
07/30/25 PM PORT TANKS
QTY Part Number DESCRIPTION UNIT PRICE EXTENDED
1 1
1 1 1
1 1
1 1
1 1
1 1
1 1
1 1
1 1
1 1
1 1
1 1
Beginning January 1st, 2024, we will be charging a fee of $100 per dispenser per month, for materials stored over 30 days. The first full month of storage is complimentary.
I AGREE TO ALL TERMS ABOVE : Customer Initials:_______
Equipment Storage: Equipment billed and held in our warehouse may be subject to a monthly storage fee. **60 month lease option for this project shown above. Actual monthly payment is calculated by Patriot Capital Corporation and is subject to their qualifications to acquire this lease payment structure. Lease is structured with a One Dollar Purchase Option, ownership of the equipment takes place at the end of the lease term. For more information, contact Geoff Smith at 404-915-9749 PCI Compliance Disclaimer: It is solely the Customers responsibility to verify PCI Compliance and Network Processing Compliance with their Merchant Provider. NWP will not be liable for direct, special or consequential damages, business interruption or loss of profits, sustained by Customer or any party claiming by, through or under the Customer.
Above Specifications Exclude the Following (Unless Otherwise Noted): Plans, Permits, Inspection, All Testing, Labor to Assemble or Install, Miscellaneous Pipe Fittings and Accessories, Any Electrical Consideration, Offloading or Setting Any Equipment or Tank, Site Improvements, Guard Barriers, Any Other Items (s) Not Specifically Mentioned Above Equipment Only: No Installation. Subject to engineer's approval. This quotation does not include or imply any equipment or quantities other than listed herein. Contractor to determine actual quantities required. No retainage to apply.
Performance: Performance of equipment listed is based upon the accuracy of the information supplied to NW Pump and Equipment Co. by the customer or customer's engineer. Guarantee of performance may require approval by a licensed engineer at the customer's expense. NWP is not responsible for any warranty outside of standard manufacturer warranties.
Tank Submittal Drawings: Tanks require approved, signed drawings before production of the tank may begin. Any quoted lead time is based on production time required once approved submittal drawings have been received by Northwest Pump & Equipment.
Method of Payment: Private Party Pay____ / Lease Finance ____ / Bank Finance____ Equipment & Storage Fees: Unpaid equipment and/or storage fees may result in cancelation of the order and the equipment will be made available to others.
Gilbarco / Gasboy Terms: Special terms apply to the Gilbarco/Gasboy Equipment. Prices reflect a 3% cash discount. Payments must be received within 10 days of invoice. Invoices are sent upon completion of the order at the factory. 3% will be added to invoice and may be deducted if paid within 10 days. Credit card payment not applicable with these terms.
Verifone Terms: Special terms apply to the Verifone Equipment. Prices reflect a 3% cash discount. Payments must be received within 10 days of invoice. 3% will be added to invoice and may be deducted if paid within 10 days. Credit card payment not applicable with these terms.
Northwest Pump Equipment Co.
Agenda Item No. 14 Page 7 of 13 CC Agenda 08-18-2025
This Page Intentionally Left Blank
Agenda Item No. 14 Page 8 of 13 CC Agenda 08-18-2025
City of Port Hueneme, 250 N. Ventura Road, Port Hueneme, CA 93041 Page 1 of 4 Proposal Addendum
Fuel Tank and Accessories Purchase
from Northwest Pump & Equipment Company
Project Name: Pre-Purchase of Underground Double-Walled, Dual-Compartment FRP Fuel Storage Tank and Accessories (Project No. EN2402) – City of Port Hueneme, California
Vendor: Northwest Pump & Equipment Company, 28908 N. Ave Paine, Unit B, Valencia, CA 91355 / Phone: 661-294-7866
Proposal Date: July 30, 2025
Quote Number: PM PORT TANKS
Total Quote Amount: $109,748.06
Total Pages in Proposal: 3
Vendor Contact: Northwest Pump & Equipment Company: Paul Martinez, Sales Rep / Phone: 805-405-8157 / email: [email protected] This Proposal Addendum (“Addendum”) is entered into by and between the City of Port Hueneme (“City”) and Northwest Pump & Equipment Company (“Vendor”), and shall be attached to and incorporated into the Vendor’s threepage Proposal dated July 30, 2025. The purpose of this Addendum is to supplement and amend the Vendor’s Proposal with the following additional terms and conditions, which shall govern in the event of any conflict with the original Proposal.
1. Surety Bonds
Vendor shall furnish a Performance Bond for Delivery of Materials in the amount of $109,748.06 and a Payment Bond for Material Supply, each in the amount of $109,748.06. Both bonds must be executed using City of Port Hueneme bond forms and delivered to the City prior to issuance of any Notice to Proceed. The City shall retain the bonds for a period of up to 60 calendar days following the successful delivery of the fuel tank and accessories.
2. Insurance
Vendor shall submit a Certificate of Insurance that fully complies with the City's indemnification and insurance requirements. No work may begin until the City has received and approved the required insurance documentation.
Indemnity: To the fullest extent permitted by law, Vendor shall indemnify, defend (with independent counsel approved by City) and hold harmless City, and its directors, officers, and employees from and against all liabilities (including without limitation all claims, losses, damages, penalties, fines and judgments, associated investigation and administrative expenses, and defense costs, Exhibit B
Agenda Item No. 14 Page 9 of 13 CC Agenda 08-18-2025
City of Port Hueneme, 250 N. Ventura Road, Port Hueneme, CA 93041 Page 2 of 4 including but not limited to reasonable attorneys’ fees, court costs and costs of alternative dispute resolution) regardless of nature or type that arise out of, pertain to, or relate to the negligence, reckless, or willful misconduct of Vendor or the acts or omissions of an employee, agent or subcontractor of Vendor. In the event that a third party institutes such an action against City which pertains to the Services, whether City is named or not, Vendor shall provide a defense of said action at its sole expense, and shall indemnify City from any costs or expenses related to said action and any judgments rendered therein. No settlement of such an action may occur without the express written consent of City. The provisions of this paragraph survive completion of the Services or the termination of this Agreement. The provisions of this section are not limited by the provisions relating to insurance.
Insurance Requirements:
The City Of Port Hueneme Is To Be Named As An Additional Insured: VENDOR,
AT ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL
FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY
RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN
DESCRIBED, INSURING NOT ONLY VENDOR AND ITS SUBCONTRACTORS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’
COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL
INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES.
Commercial General Liability (CGL) Insurance
• Minimum Limit: $2,000,000 per occurrence / $4,000,000 aggregate Contractor’s Pollution Liability (CPL)
• Limit: $1,000,000 minimum.
Automobile Liability Insurance
• Limit: $1,000,000 combined single limit.
Workers’ Compensation and Employer’s Liability
• Statutory Workers’ Compensation (California)
• Employer’s Liability: $1,000,000 per accident
3. City Business License & Tax Payer ID Number
Vendor shall obtain and maintain a current City of Port Hueneme Business License for the duration of the work. Vendor shall provide a W-9 and taxpayer ID number prior to execution of this Addendum.
Agenda Item No. 14 Page 10 of 13 CC Agenda 08-18-2025
City of Port Hueneme, 250 N. Ventura Road, Port Hueneme, CA 93041 Page 3 of 4
4. Shop Drawings and Submittals
Vendor shall submit shop drawings and submittals for the fuel tank and accessories to the City for review and written approval prior to initiating fabrication. No manufacturing shall begin until the City provides written approval of the submittals.
5. Optional Storage Period
Upon completion of fabrication, the City may request that the tank and accessories be held by Vendor at no additional charge for a period of up to 30 calendar days. Any storage beyond this period shall be subject to mutually agreed terms.
6. Delivery Coordination
Vendor shall coordinate delivery with the City at least ten (10) working days in advance. Delivery shall occur during normal City working hours and timed to facilitate unloading and immediate underground placement.
7. Monthly Status Reports
Vendor shall provide monthly written status updates, due on the first of each month, regarding estimated fabrication completion and any changes to lead time once production begins.
8. Advance Payment Terms
The City agrees to pay up to 25% of the total contract value as a deposit to initiate tank production. This payment shall be made only after Vendor issues an invoice for the deposit amount. Vendor shall provide written confirmation from the tank manufacturer of the production start date and acknowledgment of receipt of funds within ten (10) working days of deposit receipt.
9. City Credit Application to Northwest Pump and Equipment Company The City agrees to complete and return a standard Vendor credit application within ten (10) working days from the execution date of this Addendum to establish an account.
10. Final Payment Terms
Final payment shall be made Net 30 from the date of final invoice, provided that delivery has been completed and accepted by the City’s Public Works Department and the tank and accessories pass visual and leak inspections upon delivery.
11. Manufacturing and Delivery Timeline
The parties acknowledge that fiberglass underground fuel tanks are subject to extended manufacturing lead times due to national supply backlogs. The Agenda Item No. 14 Page 11 of 13 CC Agenda 08-18-2025
City of Port Hueneme, 250 N. Ventura Road, Port Hueneme, CA 93041 Page 4 of 4 anticipated manufacturing start date and anticipated delivery date shall be mutually agreed upon and entered below at the time of execution:
- Anticipated Manufacturing Start Date: ____________________________ - Anticipated Delivery Date to City Site (700B E Port Hueneme Road):
_______________________________________________________.
These dates are non-binding estimates based on current manufacturer scheduling forecasts. Vendor shall make all reasonable efforts to meet the stated delivery date but shall promptly notify the City in writing if any delays become known. Monthly progress updates shall continue per Section 7 of this Addendum.
In no case shall delivery occur later than April 1, 2026, without the express written approval of the City. If delays extend beyond this date, the City reserves the right to reevaluate the agreement terms or pursue remedies available under applicable California law.
12. Warranty
Vendor shall obtain a written warranty for the tank and tank accessories from the Xerxes Corporation that meets or exceeds the “thirty (30) years will not fail due from natural external corrosion, internal corrosion, and/or structural failure from the date of original delivery” as shown in the “Xerxes Corporation Limited Warranty Underground Petroleum Storage Tanks” dated May 1, 2019.
IN WITNESS WHEREOF, the parties have caused this Addendum to be executed by their duly authorized representatives:
CITY OF PORT HUENEME
By: ____________________________________ _________________ James Vega, City Manager Date
NORTHWEST PUMP AND EQUIPMENT COMPANY
By: ____________________________________ _________________ Name: _________________________________ Date
Title: ___________________________________
Agenda Item No. 14 Page 12 of 13 CC Agenda 08-18-2025
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 ____ day of August 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Dated:
_______________________________
Georgianna Nicole Alvarez
City Clerk
Agenda Item No. 14 Page 13 of 13 CC Agenda 08-18-2025
DATE: August 18, 2025
TO: Honorable City Council
FROM: James Vega, City Manger
Frank Lee, HR/Risk Manager
SUBJECT: RATIFICATION OF LABOR CONTRACT WITH PORT HUENEME POLICE
OFFICERS ASSOCATION
RECOMMENDATION:
It is recommended that the City Council approve and ratify a two-year Memorandum of Agreement (MOA) and Salary Schedule between the City of Port Hueneme and the Port Hueneme Police Officers Association (POA) for the contract period July 1, 2025 – June 30, 2027.
BACKGROUND/ANALYSIS:
The City’s negotiating team met in good faith with POA represented employees and the association’s legal representative in accordance with the Meyers-Milias-Brown Act regarding salaries, benefits, and other terms and conditions of employment. A tentative agreement was reached and on August 12, 2025 and the POA membership ratified the terms of such agreement for a two-year contract period from July 1, 2025 through June 30, 2027.
As the City engaged with the POA in negotiation, the City expressed the economic uncertainty and budgetary challenges the City is facing in the next few years. The POA recognized City financial concerns related to economic uncertainty, and supports the City’s efforts to ensure responsible staffing and fiscal stewardship during this period of uncertainty, and to ensure that public safety services will not be adversely impacted. To accomplish this one currently vacant position will remain unfilled until the City determines in its discretion that the position shall be filled.
The contract includes:
• 4% COLA increase in year 1 and 2% COLA increase in year 2 • Vacant position to remain unfilled at the City’s discretion to offset cost increase
• Added Parking Enforcement Officers to POA from SEIU and Senior (4/10 schedule)
Agenda Item No. 15 Page 1 of 34 CC Agenda 08-18-2025
Ratification of Labor Contract with POA
August 18, 2025
• Schedule updates
• Experience Differential – added language that allows separating employees to receive pay at the time of separation rather than at end of year • Use of 40 hours of annual leave prior to Annual conversion to Cash • Discontinue - Defined contribution to Health Savings Account • Flex Time Cap modified to reflect two typical shifts (generally from 20 hours to 24 hours based on 12 hour shifts).
• Administrative Changes:
o Removed outdated language
o References of MOU rather than MOA was corrected
o Table of Contents was brought to the top of the MOA
FISCAL IMPACT:
The adopted budget included a proposed COLA of approximately 2% of total compensation ($120,000 in year one). The proposed contract, which includes an offset utilizing vacancy savings from an unfilled position, results in the proposed contract and COLA staying within the adopted budget totals over a two-year period.
ATTACHMENTS:
A. Resolution approving Memorandum of Agreement
B. Memorandum of Agreement between the City of Port Hueneme and POA C. PHPOA Fiscal Year 2026 - 2027 Salary Schedule
Agenda Item No. 15 Page 2 of 34 CC Agenda 08-18-2025
RESOLUTION NO. ______
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORT HUENEME,
CALIFORNIA, APPROVING A MEMORANDUM OF AGREEMENT AND
SALARY SCHEDULE WITH THE CITY OF PORT HUENEME POLICE
OFFICERS’ ASSOCIATION
WHEREAS, the City of Port Hueneme endeavors to recruit and retain the most qualified and talented employees to serve its citizens; and
WHEREAS, the salary and benefits offered by the City to its employees are designed to aid in the City’s recruitment and retention efforts; and WHEREAS, the City and the Port Hueneme Police Officers’ Association entered into a Memorandum of Agreement for the term from July 1, 2025 through June 30, 2027; and WHEREAS, the City and the Port Hueneme Police Officers’ Association have met and conferred regarding salary and benefits and have come to an agreement on a new fair and equitable package of compensation; and
WHEREAS, the members of the Port Hueneme Police Officers’ Association have voted in favor of entering into the new Memorandum of Agreement.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF PORT HUENEME, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1: That the Memorandum of Agreement with the Port Hueneme Police Officers’ Association, is approved substantially as to form, with an effective date of the term from July 1, 2025 through June 30, 2027.
SECTION 2: That the City Manager is hereby authorized and directed to execute and implement the Memorandum of Agreement on behalf of the City Council.
SECTION 3: This Resolution shall take effect immediately upon its passage.
SECTION 4: The City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions.
PASSED, APPROVED, AND ADOPTED on this 18th day of August 2025. _________________________________
Martha R. McQueen-Legohn, Mayor
ATTEST:
________________________________
Georgianna Nicole Alvarez
City Clerk
Attachment A
Agenda Item No. 15 Page 3 of 34 CC Agenda 08-18-2025
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 __ day of ____, 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Dated:
Georgianna Nicole Alvarez
City Clerk
Agenda Item No. 15 Page 4 of 34 CC Agenda 08-18-2025
COMPREHENSIVE MEMORANDUM OF AGREEMENT
BETWEEN
THE CITY OF PORT HUENEME
AND
THE PORT HUENEME POLICE OFFICERS’ ASSOCIATION
JULY 1, 2025 TO JUNE 30, 20252027
Attachment B
Agenda Item No. 15 Page 5 of 34 CC Agenda 08-18-2025
TABLE OF CONTENTS
Page No.
ARTICLE 1. IMPLEMENTATION ............................................................................1 ARTICLE 2. TERM ..................................................................................................1 ARTICLE 3. DEFINITION OF SWORN AND NON-SWORN EMPLOYEES............1 ARTICLE 4. CAFETERIA PLAN .............................................................................2 ARTICLE 5. HOLIDAYS..........................................................................................3 ARTICLE 6. WORK SCHEDULE ............................................................................4 ARTICLE 7. EXPERIENCE DIFFERENTIAL.........................................................54 ARTICLE 8. POLICE OFFICERS’ ASSOCIATION LEAVE BANK.........................5 ARTICLE 9. RANK SEPARATION..........................................................................5 ARTICLE 10. SALARY RANGE INCREASES........................................................65 ARTICLE 11. UNIFORM ALLOWANCE ...................................................................6 ARTICLE 12. ASSOCIATION DUES ........................................................................7 ARTICLE 13. PERS RETIREMENT SYSTEM AMENDMENT ..................................7 ARTICLE 14. COMPENSATORY TIME BANK.......................................................10 ARTICLE 15. DEPENDENT CARE ASSISTANCE PROGRAM .............................10 ARTICLE 16. DETECTIVE UNIT PREMIUM PAY...................................................10 ARTICLE 17. CALL-OUT PAY: DETECTIVES.......................................................10 ARTICLE 18. DETECTIVE STAND-BY PAY ..........................................................10 ARTICLE 19. MINIMUM CALL-BACK PAY........................................................1110 ARTICLE 20. CALL-OUT PAY POLICY CLARIFICATION: PATROL
OFFICERS ........................................................................................11 ARTICLE 21. CANINE CARE COMPENSATION ...................................................11 ARTICLE 22. COURT STANDBY PAY...................................................................11 ARTICLE 23. INCENTIVE PAY...............................................................................12 Agenda Item No. 15 Page 6 of 34 CC Agenda 08-18-2025
ARTICLE 24. DENTAL, VISION, HEALTH & LONG-TERM DISABILITY GROUP INSURANCE PLAN ........................................................1412 ARTICLE 25. VEHICLE USE BY CANINE HANDLER, MOTOR OFFICER, AND DETECTIVES................................................................................1413 ARTICLE 26. PROBATIONARY PERIOD...........................................................1413 ARTICLE 27. TUITION REIMBURSEMENT .......................................................1513 ARTICLE 28. DISCIPLINARY HEARINGS .........................................................1514 ARTICLE 29. PROVISIONS OF LAW.................................................................1514 ARTICLE 30. DIRECT DEPOSIT ........................................................................1514 ARTICLE 31. PAYROLL .....................................................................................1614 ARTICLE 32. OUT OF COUNTY TRAINING ......................................................1614 ARTICLE 33. PERSONNEL HANDBOOK ..........................................................1614 ARTICLE 34. LAYOFFS......................................................................................1615 ARTICLE 35. PRIOR AGREEMENTS.................................................................1615 ARTICLE 36. ANNUAL LEAVE ..........................................................................1615 ARTICLE 37. BILINGUAL PAY...........................................................................2018 ARTICLE 38. RETIREE MEDICAL INSURANCE ...............................................2018 ARTICLE 39. SOCIAL SECURITY/MEDICARE TAX..........................................2118 ARTICLE 40. OVERTIME...................................................................................2118 ARTICLE 41. DEFERRED COMPENSATION PLAN..........................................2219 Agenda Item No. 15 Page 7 of 34 CC Agenda 08-18-2025
-1-
COMPREHENSIVE MEMORANDUM OF AGREEMENT
BETWEEN
THE CITY OF PORT HUENEME
AND
THE PORT HUENEME POLICE OFFICERS’ ASSOCIATION
JULY 1, 2022 2025 TO JUNE 30, 202527
ARTICLE 1. IMPLEMENTATION
This Memorandum of Agreement constitutes a mutual recommendation by the authorized representatives of the City of Port Hueneme (City) and the authorized representatives of the Police Unit (Employees) to be submitted to the City Council of the City of Port Hueneme. The recommendations contained herein shall be binding on the City and the Employees only if said City Council approves this Memorandum of Agreement. Approval by said City Council shall consist of the following: (a) a motion or resolution of said City Council approving this Memorandum of Agreement which receives at least three “yes” votes; and (b) enactment of necessary amendments to City ordinances, resolutions, or policies to implement fully the provisions of this Memorandum of Agreement; and (c) action by said City Council to appropriate the necessary funds required to implement fully the provisions of this Memorandum of Agreement which require funding.
ARTICLE 2. TERM
This Memorandum of Agreement shall be binding from 12:01 a.m. on July 1, 20222025, until 12:00 midnight on June 30, 20257, at which time it shall expire and be fully terminated.
However, the personnel policies, procedures and practices shall continue beyond the termination of this Memorandum of Agreement unless modified in accordance with California law or expressly limited within the terms contained herein. During the term of the Memorandum of Agreement, there shall be no strikes, work slowdowns, or other employee conduct designed to interfere with or adversely affect public safety.
ARTICLE 3. DEFINITION OF SWORN AND NON-SWORN EMPLOYEES
The designation Police Unit “Sworn Employees” shall refer to all full-time employees in the following classifications:
Police Officer - Patrol
Police Officer - Detective
Police Officer - Homeless Liaison
Police Officer - Senior
Police Officer - Traffic
Police Sergeant - Patrol
Police Sergeant - Detective
Police Sergeant - Traffic
Canine Officer - Patrol
The designation Police Unit “Non-Sworn Employees” shall refer to all full-time employees in the following classifications:
Agenda Item No. 15 Page 8 of 34 CC Agenda 08-18-2025
-2-
Community Services Officer
Public Safety Dispatch Supervisor
Public Safety Dispatcher,
Police Records Technician, Senior
Property and Evidence Supervisor
Property and Evidence/Crime Scene Technician
Parking Enforcement Officer
Parking Enforcement Officer, Senior
ARTICLE 4. CAFETERIA PLAN
The City shall continue to pay the PERS minimum mandated amount of the premium for employee’s health insurance. The City will contribute towards employees’ Cafeteria Plan in the amount of $1,000 per month inclusive of the statutory PERS minimum contribution. In the event the cost for health insurance incurred by an employee for himself/herself and any dependents exceeds $1,000 per month, the City will pay any additional amount for medical, dental and vision, but in a cumulative amount not to exceed a total of $1,441.70 per month.
Beginning with the first full pay period after Council ratifies this MOA, the monthly contribution shall increase to $1,100 per month inclusive of the statutory PERS minimum contribution. In the event the cost of health insurance selected by the employee for himself/herself and any dependents exceeds $1,100 per month, the City will pay any additional amount for medical, dental and vision, but in a cumulative amount not to exceed a total of $1,541.70 per month. The increase in employer contributions described in this paragraph shall be retroactive up to the first full pay period in July 2022, for those employees still employed by the City at the time that the Council ratifies this MOA.
Beginning with the start of the first full pay period in July 2023, the monthly contribution shall increase to $1,200 per month inclusive of the statutory PERS minimum contribution. In the event the cost of health insurance selected by the employee for himself/herself and any dependents exceeds $1,200 per month, the City will pay any additional amount for medical, dental and vision, but in a cumulative amount not to exceed a total of $1,641.70 per month.
Beginning with the start of the first full pay period in July 2024, the monthly contribution shall increase to $1,300 per month inclusive of the statutory PERS minimum contribution. In the event the cost of health insurance selected by the employee for himself/herself and any dependents exceeds $1,300 per month, the City will pay any additional amount for medical, dental and vision, but in a cumulative amount not to exceed a total of $1,741.70 per month.
The increases in employer contributions shall be used for benefits only and shall neither increase theopt out payment, nor increase the maximum cash in lieu available to employees who do not participate in the City’s insurance programs. The maximum cash in lieu shall be fixed at the maximum amount that was available as of June 30, 2019, as follows:
employee only $279.23
employee + dependents $300.16
Agenda Item No. 15 Page 9 of 34 CC Agenda 08-18-2025
-3-
All EMPLOYEES must enroll in an available City health program unless they opt out. An EMPLOYEE may receive cash in lieu for opting out of the City's health insurance program if he/she provides proof that the employee and all individuals for whom the employee intends to claim a personal exemption deduction for the taxable year or years that begin or end in or with the City's plan year to which the opt out applies ("tax family"), have or will have minimum essential coverage through another source (other than coverage in the individual market, whether or not obtained through Covered California) for the plan year to which the opt out arrangement applies ("opt out period"), by signing an attestation to that effect. An employee must provide the attestation every plan year at open enrollment or within 30 days after the start of the plan year. The opt- out payment cannot be made and the City will not in fact make payment if the employer knows or has reason to know that the employee or tax family member does not have such alternative coverage, or if the conditions in this paragraph are not otherwise satisfied.
Employees who opt out of the CalPERS Health Program and comply with the attestation requirement will be given a City contribution amount (Cafeteria Allowance) of seven hundred dollars ($700) per month. These amounts may be applied toward the cost of any dental and/or vision coverage. Any unused amount will be paid to the employee as taxable compensation.
ARTICLE 5. HOLIDAYS
Employees of the Police Department shall be paid ten (10) or twelve (12) hours of straight time pay dependent upon the assignment to a 4/10 or 3/12 work schedule, or receive ten (10) or twelve (12) hours paid time off for each of the following holidays:
New Year’s Day January 1
Martin Luther King Day Third Monday in January
Washington’s Birthday (Third Monday in February)
Memorial Day Last Monday in May
Juneteenth June 19
Independence Day July 4
Labor Day First Monday in September
California Admission’s Day (September 9)
Veteran’s Day November 11
Thanksgiving Day Fourth Thursday in November
Day After Thanksgiving
Christmas Eve Day December 24
Christmas Day December 25
Any employee who is required to work on any legal holiday recognized by the City shall be paid on the basis of time and one-half the employees’ regular rate of pay for all hours he or she actually works plus ten (10) or twelve (12) hours of straight time pay for the holiday dependent upon working the 4/12 or 3/12.
Employees will be granted a Flex Day leave bank of 240 hours per fiscal year. Request for use of this bank of hours must be requested as per Article 36. Management retains the right to determine when these hours can be used so as not to incur overtime. Any hours not used by the last pay period of the fiscal year cannot be carried into the new fiscal year (use or lose). These hours have no cash-value and are not compensable during employment nor upon separation.
Agenda Item No. 15 Page 10 of 34 CC Agenda 08-18-2025
-4-
ARTICLE 6. WORK SCHEDULE
The work schedule for the Unit shall be as follows:
Police Officers, Senior Police Officers, Police Sergeants, Canine Officers Public Safety Dispatch Supervisor and Public Safety Dispatcher s will be on a 3/12, 4/12 Plan, which shall consist of alternate workweeks of:
(1) Three (3) consecutive workdays of twelve (12) consecutive work-hours followed by four (4) consecutive days off; and
(2) Four (4) consecutive workdays of twelve (12) consecutive hours followed by three (3) consecutive days off.
The weekly work schedule of the following assignments and classifications shall be a 4/10 work schedule, which consists of four (4) consecutive work days of ten (10) consecutive working hours each, followed by three (3) consecutive days off:
(3) Motor Officer;
(4)(3) Crime Suppression Unit;
(5)(4) Clerical Employees;
(5) Police Community Services Officer;
(6) Police Officers (Detectives).;
(7) Police Sergeant (Detectives).
(8) Parking Enforcement Officer
(6)(9) Parking Enforcement Officer, Senior
The weekly work schedule for Police Officer-Homeless Liaison and Police Sergeant – Admin shall be 4/10.5 consisting of four (4) consecutive work days of ten and one-half (10.5) consecutive hours each, followed by (3) consecutive days off, followed four (4) consecutive workdays of ten and one-half (10.5) _ hours each.
Canine Officers will work a 4/ 10.5 schedule when working a “cover shift” overlapping patrol shift. However, canine officers will still have the ability to work a 12-hour shift if they are assigned to a traditional 12 shift patrol team (1 supervisor and 2 officers shift) for a deployment The Property and Evidence/Crime Scene Technician shall be on a 9/80 schedule.
Two (2) consecutive workdays of twelve (12) consecutive work-hours followed by two (2) consecutive days off; and three (3) consecutive workdays of twelve (12) consecutive work-hours followed by two (2) consecutive days off; and two (2) consecutive work-days, one of twelve (12) Agenda Item No. 15 Page 11 of 34 CC Agenda 08-18-2025
-5-
consecutive work-hours and one of eight (8) consecutive work-hours followed by three (3) consecutive days off.
Subject to determinations made solely by the Chief of Police based upon her assessment of promoting Department efficiency, shift rotations shall generally occur at six (6) month intervals.
All schedules may be changed by mutual agreement between the POA and the Chief of Police.
However, all schedules for all Unit employees are subject to change in cases of emergency at the sole discretion of the Chief of Police.
ARTICLE 7. EXPERIENCE DIFFERENTIAL
The City shall provide a four percent (4%) experience differential payment for eligible regular full-time employees of the Police Unit who have been employed by the City andCity and/or another police agency for a period of five completed (5) - nine completed (9) years. The City shall provide a six percent (6%) experience differential payment for eligible regular full-time employees of the Police Unit who have been employed by the City and/or another police agency for a period of ten completed (10) years or longer. The amounts described herein shall not be cumulative.
Employees hired on or after City Council adoption of a 2013-2015 MOU MOA shall not be eligible to receive any experience differential pay for the period of July 1, 2022 through Council ratification of this MOA unless the employee is still employed by the City on the date that this MOA is ratified by the City Council.
Payment to eligible employees will be made in a lump sum between December 1 and December 15 of each year but shall be reported to CalPERS retroactively over the prior year. Employees who separate or retire during the course the year, prior to December 1 and 15, will receive experience differential pro-rated up to their separation date at the time of separation. The payment will be included in their final paycheck and reported in accordance to CalPERS’ requirements.
ARTICLE 8. POLICE OFFICERS’ ASSOCIATION LEAVE BANK
The City agrees that beginning July 1, 1998, and effective January 1 of each year thereafter, one hundred twenty (120) hours will be placed into an Association leave bank to be used by employees for Association related business. The leave bank will be administered by members of the Association with review and final approval for use of those hours to be given by the Chief of Police. It is agreed that up to eightyto eighty (80) hours of unused leave from the leave bank may be carried over to the following year. It is further agreed that the leave bank may not exceed two hundred (200) hours. All employees using leave shall reduce the leave bank balance (e.g., 3 employees participating in a 1 hour1-hour meeting = 3 hours from leave bank).
ARTICLE 9. RANK SEPARATION
The City agrees to maintain a five percent (5%) minimum separation in base salary between the top step patrol officer’s salary and the bottom step sergeant’s salary.
Agenda Item No. 15 Page 12 of 34 CC Agenda 08-18-2025
-6-
ARTICLE 10. SALARY RANGE INCREASES
An individual employee’s salary within the range is governed by the provisions of the Personnel Handbook and increases will be granted only for continued meritorious and efficient service by the employee in the effective performance of the employee’s duties. (a) Beginning with the first full pay period after ratification of the MOA by the City Council: For employees employed by the City at the time the City Council ratifies this MOA: Individual salary and salary ranges for all employees of this bargaining unit shall increase by 4.0%.effective with the first full pay period in July, 2022:
Salary ranges for Public Safety Dispatch Supervisor, Public Safety Dispatcher and Police Officer – Senior shall receive market adjustments, as follows:
Public Safety Dispatcher: __ _ 10%_
Public Safety Dispatch Supervisor __ _8%_
Police Officer-Senior: 8%
The salary ranges of all classifications in the unit, including those that received the market adjustment, shall increase 5.0%
These increases shall be retroactive up to the first pay period in July, 2022 for those employees employed by the City on the date that the MOA is ratified by the City Council.
(b) Individual salary and salary ranges for all employees of this bargaining unit shall increase by 52.0% effective with the first full pay period beginning in July 20263. (c) Individual salary and salary ranges for all employees of this bargaining unit shall increase by 5.0% effective with the first full pay period beginning in July 2024..
LUMP SUM PAYMENTThe City shall make a lump sum payment to all unit employees employed by the City at the time the City Council ratifies this MOA and who are still employed on the date of distribution, equal to 6% of the employee’s base pay as of June 30, 2022. If employee qualifies for the lump sum payment but was hired after June 30, 2022, the lump sum shall be 6% of the employee’s starting base salary. The City shall make the distribution with the payroll for the first full pay period after ratification of this MOA by the City Council. This payment does not qualify as special compensation or pensionable compensation and shall not be reported as compensation to CalPERS.
The POA recognizes City financial concerns related to economic uncertainty at this time, and will support the City’s efforts to ensure responsible staffing and fiscal stewardship during this period of uncertainty, and ensure that public safety services will not be adversely impacted. To accomplish this one currently vacant position will remain unfilled until the City determines in its discretion that the position shall be filled.
ARTICLE 11. UNIFORM ALLOWANCE
City employees shall receive Forty-five Dollars ($45.00) per month for uniform cleaning. In addition to the above uniform allowance amount, a full-time officer assigned as a Canine Agenda Item No. 15 Page 13 of 34 CC Agenda 08-18-2025
-7-
Handler and a full-time employee assigned as a Motor Officer shall receive Fifty Dollars ($50.00) per month ,formonth, for Canine Handler and Motorcycle Uniform Allowance. All uniform allowances shall be paid bi-weekly.
The City agrees to issue each non-sworn employee in the classifications of Police Communications Officer I and Policy Communications Officer II uniforms to be worn while performing their police communications duties. The uniform items of clothing to be provided will be determined by the Chief of Police or his/her designee.
The City agrees to replace any uniform item damaged while on duty or otherwise deemed unfit for continued use by the Chief of Police or his/her designee. Items lost by the employee will be replaced by the employee at his/her own expense.
The City agrees to issue to each newly hired sworn officer the following uniform items:
1) One winter jacket
2) One lightweight windbreaker
3) One dress jacket
4) Three pairs uniform pants
5) Three short sleeve uniform shirts
6) Two long sleeve uniform shirts
7) One cap
8) One tie
The City agrees to replace any uniform item damaged on duty or deemed to be unfit for continued use by the Chief of Police or his/her designee. Items lost by the officer will be replaced by the officer at his/her own expense.
Officers agree to maintain the uniforms in a manner designated by the Chief of Police. Uniform Allowance shall be reported to CalPERS each pay period.
ARTICLE 12. ASSOCIATION DUES
The City shall deduct membership dues each pay period in accordance with the City procedures and provisions of applicable law from the salary of each full time employee who the Port Hueneme Police Officers’ Association certifies to the City has authorized such deductions be made. The City shall remit the aggregate amount of all such dues to Port Hueneme Police Officers’ Association at the conclusion of each month in which the dues were deducted. The Port Hueneme Police Officers’ Association shall provide the City promptly with updated information on changes to the list of employees authorizing deductions.
ARTICLE 13. PERS RETIREMENT SYSTEM AMENDMENT
A. All unit safety employees defined by the Public Employees Pension Reform Act of 2013 as “classic” employees will have the following retirement benefits through CalPERS:
(1) 3% @ 55, as set forth in California Government Code § 21363.1. (2) Employer payment of the member contribution pursuant to California Government Code § 20691.
Agenda Item No. 15 Page 14 of 34 CC Agenda 08-18-2025
-8-
(3) EPMC Conversion, as set forth in California Government Code § 20692. (4) Cost sharing of 3.232% of compensation pursuant to Government Code section 20516(a)-(d) or if section 20516(a)-(d) is not applicable, then pursuant to section 20516(f).
(5) One Year Final Compensation Period, as set forth in California Government Code § 20042.
(6) Pre Retirement Optional Settlement 2 Death Benefit pursuant to California Government Code § 21548.
B. All unit miscellaneous employees defined by the Public Employees Pension Reform Act of 2013 as “classic” employees will have the following retirement benefits through CalPERS:
(1) One Year Final Compensation Period, as set forth in California Government Code § 20042.
(2) 2.7% @ 55 Retirement Formula pursuant to California Government Code § 21354.5.
(3) Employer payment of the member contribution pursuant to California Government Code § 20691, subject to the 0.201% and the 1.201% reductions in employer paid member contributions, as set forth below. (4) EPMC Conversion, as set forth in California Government Code § 20692. (5) Effective as soon after July 1, 2011 as is reasonably possible, the City shall amend its contract with PERS to provide for a Government Code § 20516(a) authorized sharing by miscellaneous (non-sworn) association unit members of the cost of optional retirement benefits. In conjunction with the July 1, 2011 contract amendment, miscellaneous association unit members shall participate in cost sharing by contributing 4.799% of member compensation toward the current service cost of benefits. This
4.799% member contribution shall be normal contributions over and above normal contributions otherwise required by statute and shall be treated as normal contributions to the extent mandated by statute.
In addition to and prior to implementing the above 4.799% Government Code § 20516(a) member contribution, effective concurrent with City Council adoption of the 2011-13 MOUMOA, each miscellaneous (nonsworn) unit member shall contribute and fund member contributions in the amount of 0.201% of compensation. Effective July 1, 2012, said contribution amount shall increase to 1.201% of compensation. it is the agreement of the parties that unless and/or until modified pursuant to the meet and confer process or as mandated by law, these designated non-sworn (miscellaneous) cost sharing member contributions shall continue until the July 17, 2026 “expiration date” and shall concurrently revert to the amount of 1.922% on July 17, 2026, unless Agenda Item No. 15 Page 15 of 34 CC Agenda 08-18-2025
-9-
and/or until said amount is modified pursuant to the meet and confer process and/or requirements of law. In no case, shall Government Code § 20516 cost sharing exceed 4.799% of miscellaneous member compensation.
C. The parties further agree and acknowledge that if during the term of the MOA, State statutory or other requirements of law change to mandate modifications to substantive retirement benefits and/or the manner of funding such benefits, the parties shall promptly reconvene the meet and confer process in order to address any such mandatory statutory or other changes in the law. MOU MOA changes which are required in order to bring the Agreement into conformance with mandatory statutory or other requirements, shall be implemented concurrent with the effective date of said statutory/other changes of law, regardless of the meet and confer process having been convened or completed.
Moreover, if during the term of the MOA, State statutory or other requirements of law change to mandate “classic” employee payment of some or all the required employee contribution to CalPERS, the parties shall immediately take whatever action is required to decrease the Government Code § 20516(f) or §20516(a) method of cost sharing, whichever is then in effect, by the amount of the “classic” employee’s required payment of the employee contribution to CalPERS. For example, if a law is passed that requires that “classic” employees pay 4% of their retirement costs, and at such time sworn and non-sworn employees are paying 6% and 4.799%, respectively, through the Government Code § 20516(f) method of cost sharing, the parties shall immediately take all action necessary to reduce the employee’s payment of the 20516(f) cost sharing by 4%, to 2% for sworn employees and 0.799% for non-sworn employees.
D. AB 340 (as modified by AB 197) the California Public Employees’ Pension Reform Act of 2013 (PEPRA.)
AB 340, as it may from time to time exist, shall in its entirety be given full force and effect during and after the term of the 2013-2015 MOUMOA. Any provision in the 2013-2015 MOU MOA which contradicts any provision of AB 340, shall be deemed null and void, with the contrary AB 340 provision(s) being given full force and effect. Therefore, no provision of AB 340 shall be deemed to impair any provision of the 2013-2015 MOU MOA or any MOUMOA, Agreement, Rule or Regulation predating the 2013-2015 MOUMOA.
Unit members hired on and after January 1, 2013, deemed to be a “new member” as defined in Government Code § 7522.04, shall individually pay an initial Member CALPERS contribution rate of 50% of the normal cost rate for the Defined Benefit Plan in which said ”new member” is enrolled, rounded to the nearest quarter of 1%, or the current contribution rate of similarly situated employees, whichever is greater. (AB 340 – Government Code section 7522.30) In addition, “new members” shall also pay the Government Code § 20516 “cost sharing” described in Article 13 A(4) and 13(B)(5) above.
Unit members who are “new members” and miscellaneous employees on and after January 1, 2013, shall be enrolled in the AB 340 provided for 2% @ 62 retirement formula (Govt. Code § 7522.20), and such “new members” who are safety employees Agenda Item No. 15 Page 16 of 34 CC Agenda 08-18-2025
-10-
shall be enrolled in the AB 340 provided for 2.7% @ 57 retirement formula (Section 7522.25.)
Unit members who are “new members” on and after January 1, 2013, shall have “final compensation” measured by the highest average annual pensionable compensation earned by the member during a period of at least 36 consecutive months (Section 7522.32.)
E. Except as provided for herein, the City agrees to maintain all other CalPERS benefits currently in effect for safety and miscellaneous employees.
ARTICLE 14. COMPENSATORY TIME BANK
Employees may not elect compensatory time-off in lieu of overtime pay for time spent in briefing or for time worked on a City holiday.
Full-time employees will be permitted to accrue a maximum of two hundred (200) hours of compensatory time.
Beginning in December 2019 and each December thereafter, any employee who wishes to cash out compensatory time shall make an irrevocable election in writing as to the number of compensatory time hours that they accrue in the following calendar year that they want to cash out. The City will provide a form for employees to make the irrevocable election. The cash out will occur with the second payroll distributed in November of each calendar year.
ARTICLE 15. DEPENDENT CARE ASSISTANCE PROGRAM
It is agreed that the City will continue the Dependent Care Assistance Program (DECAP) for Employees to voluntarily reduce their gross wages (within guidelines established by the Internal Revenue Service) to pay for job related child care expenses.
ARTICLE 16. DETECTIVE UNIT PREMIUM PAY
An officer assigned to Detective shall be paid 11.0% percent above his/her current base salary.
Provision of the 11.0% Detective compensation is in consideration for elimination of the Special Problems Unit.
ARTICLE 17. CALL-OUT PAY: DETECTIVES
For call-outs on off-duty hours during the hours of 11:00 p.m. and 6:00 a.m., the City agrees to pay detectives a minimum of four (4) hours at time plus one-half; for call-outs during other offduty hours, the minimum will be two (2) hours at time plus one-half.
ARTICLE 18. DETECTIVE STAND-BY PAY
The City shall compensate a detective at the rate of Twenty Dollars ($20.00) per day for each day that the detective is assigned to detective stand-by duty.
Agenda Item No. 15 Page 17 of 34 CC Agenda 08-18-2025
-11-
ARTICLE 19. MINIMUM CALL-BACK PAY
The City agrees to pay any employee who is called back for work which requires less than one (1) hour of the employee’s time a minimum of one (1) hour’s regular pay if the call back is not due to the employee’s error or omission. An employee shall be deemed to have been called back if he/she has physically left the premises at the end of his/her shift and is called back to authorized duty.
ARTICLE 20. CALL-OUT PAY POLICY CLARIFICATION: PATROL OFFICERS For call-outs on off-duty hours, the City agrees to pay patrol officers from the time leaving a residence or other location, to the time the officer returns home. This means travel from the area of the assignment directly to the employee’s residence without any non-work related stops in between.
ARTICLE 21. CANINE CARE COMPENSATION
The City and the canine handler(s), by and through the Association, have agreed that a reasonable estimate of the amount of time spent during off-duty hours caring for the canine(s) is one-half hour for each and every day for the week. Accordingly, the canine handler(s) shall be paid for 1 hour every day of their normal work schedule not to exceed 7 hours in a two week pay period, and such time shall be regarded as “hours worked” for purposes of calculating entitlement to overtime compensation. (Note: Each 14-day pay period the canine handler(s) shall be paid for, and credited with, 7 “hours worked” associated with the off duty care of the canine(s).) In lieu of being paid for the off-duty care of the canine(s), the canine handler(s) may be dismissed one hour earlier than their normal work shift if the opportunity allows. This is subject to the determination and approval of the supervisor.
It is expressly understood by the parties that the canine handler(s) is entitled to receive compensation for the off-duty care of the canine even when the employee is off work due to the use of annual leave and caring for the canine. When an employee is off of work, whether partially or in full, the first hour will be compensated as regular pay as Canine Care Compensation, the remaining unworked hours will be compensated through the use of the officer’s personal accruals (e.g. annual leave, compensatory time off).” ARTICLE 22. COURT STANDBY PAY
The City agrees to compensate all sworn personnel and police communications officers who are placed on “standby” status for a court or administrative proceeding that is scheduled to occur while the employee is off duty. For each morning session for which the employee is in a standby status, the employee shall receive an amount equal to three hours at that employee’s regular rate of pay and for each afternoon session for which the employee is in a standby status, the employee shall receive an amount equal to three hours at that employee’s regular rate of pay. If an employee is on standby for a morning session and later is required to appear in the afternoon session, the employee shall receive standby pay for the morning session and appearance pay for the afternoon session. An employee cannot receive standby pay and appearance pay for the same court session.
Court standby pay will not be paid for court or administrative proceedings that are trailing.
Employees are required to contact the appropriate witness coordination office to determine if the case is trailing or has a scheduled starting date.
Agenda Item No. 15 Page 18 of 34 CC Agenda 08-18-2025
-12-
ARTICLE 23. INCENTIVE PAY
Incentive Pay requirements: Upon qualification, employees of the Police Department shall be eligible for one of the following incentive pay plans:
Upon receipt of an Associate Degree a full-time employee of the Police Department shall receive premium pay of five percent (5%) of the employee’s monthly base salary.
Remuneration for the Basic POST certificate shall terminate on December 31, 2011 at 2359 hours.
Upon receipt of a Bachelor of Arts or Science Degree or an Intermediate P.O.S.T. Certificate, a full-time employee of the Police Department shall receive premium pay of ten percent (10%) of the employee’s monthly base salary.
Upon receipt of a Bachelor of Arts or Science Degree and an Intermediate P.O.S.T. Certificate, a full-time employee of the Police Department shall receive premium pay of twelve percent (12%) of the employee’s monthly base salary.
Upon receipt of an Advanced P.O.S.T Certificate, a full-time employee of the Police Department shall receive monthly an additional fifteen percent (15%) of the employee’s monthly base salary.
Upon receipt of a Masters in Art or Science Degree and an Advanced P.O.S.T Certificate, a fulltime employee of the Police Department shall receive premium pay of fifteen percent (15%) of the employee’s monthly base salary, except for those employees already possessing these degrees and Advanced P.O.S.T. Certificate on January 16, 2016. These employees, who already receive a premium pay of seventeen percent (17%) of the employee’s monthly base salary, shall continue to receive premium pay of seventeen percent (17%) of monthly base salary.
Employees employed on the date that the City Council ratifies this MOA who are Field Training Officers or Communications Training Officers, shall receive incentive pay while training equal to 4% of base salary, which pay shall be retroactive to the first full pay period in July, 2022.
The amounts in this article shall not be pyramided and the employee shall receive only the highest level premium pay for which he/she qualifies. All incentive pay will be paid on a biweekly basis.
A “degree” shall be awarded by an institution accredited by the State of California, by the United States Department of Education, the Council for Higher Education, and/or or the Distance Education Training Council.
Non-Sworn Certificate Pay
For non-sworn employees, beginning with the first full pay period after this MOA is ratified by the City Council, the City shall pay certification pay as described below, to qualifying employees. All requirements must be met before the employee is eligible for the certificate pay These certificationThese certifications pays do not qualify as special compensation or pensionable compensation and shall not be reported to as compensation to CalPERS. These certification Agenda Item No. 15 Page 19 of 34 CC Agenda 08-18-2025
-13-
pays shall be retroactive up to the first pay period of July, 2022 for all qualified employees who are employed by the City at the time this MOA is ratified.
Property and Evidence Supervisor
Intermediate Level Certification
$75.00 per pay period for employees who obtain the following:
10 years of service with the City’s Police Department, 30 College Units and passing grades in the following POST certified courses:
Field evidence technician course
Evidence and property function course
Public Records Act course
Advanced Level Certification
$125.00 per pay period for employees who:
Meet all of the requirements for the Intermediate level certificate pay plus have an additional 5 years of service with the City’s Police Department (15 total years) and have passing grades in 15 additional College Units (45 total units).
Police Records Technician
Intermediate Level Certification
$75.00 per pay period for employees who obtain the following:
10 years of service with the City’s Police Department and passing grades in the following POST certified courses:
Records clerk course
Records supervisor course
Public Records Act Course
30 college Units
Advanced Level Certification
$125.00 per pay period for employees who:
Meet all of the requirements for the Intermediate level certificate pay plus have an additional 5 years of service with the City’s Police Department (15 total years) and have passing grades in 15 additional College Units (45 total units).
Community Service Officer
$75.00 per pay period for employees who obtain the following:
Agenda Item No. 15 Page 20 of 34 CC Agenda 08-18-2025
-14-
10 years of service with the City’s Police Department and passing grades in the following POST certified courses:
832 PC course
Field evidence technician course
Basic traffic investigation course
30 College Units
$125.00 per pay period for employees who:
Meet all of the requirements for the Intermediate level certificate pay plus have an additional 5 years of service with the City’s Police Department (15 total years) and have passing grades in 15 additional College Units (45 total units).
“College units” as referenced herein are those issued by an institution accredited by the State of California, by the United States Department of Education, the Council for Higher Education, and/or or the Distance Education Training Council.
ARTICLE 24. DENTAL, VISION, HEALTH & LONG-TERM DISABILITY GROUP INSURANCE PLAN
Each full-time employee may choose to be enrolled in the dental, vision, or health insurance plan. The long-term disability insurance plan is fully paid by the City.
ARTICLE 25. VEHICLE USE BY CANINE HANDLER, MOTOR OFFICER, AND DETECTIVES A full-time officer, assigned as a Canine Handler, shall be permitted to use a police vehicle for transporting the police canine provided the Canine Handler resides within the County of Ventura. A police vehicle cannot be used by the Canine Handler to transport the canine to the Canine Handler’s residence, if that residence is outside the boundaries of Ventura County. The Canine Handler’s use of the police vehicle will also be subject to all City rules and regulations pertaining to the use of City vehicles.
Motor Officers may use their City-issued motorbikes as transportation to and from work. As such, Motor Officers are authorized to leave their motorbikes at their place of residence. Use of the police motorbike will also be subject to all City rules and regulations pertaining to the use of City vehicles.
Detectives may use their City-issued vehicles as transportation to and from work. As such Detectives are authorized to leave their City-issued vehicles at their place of residence. Use of the police vehicle will also be subject to all City rules and regulations pertaining to the use of City vehicles
ARTICLE 26. PROBATIONARY PERIOD
The probationary period for all employees of the Police Department hired or promoted shall be one year from date of hiring on a permanent basis or one year from date of promotion. The probationary period shall be extended in an amount equal to the number of scheduled work hours not performed by the probationer during the probationary testing period, provided, Agenda Item No. 15 Page 21 of 34 CC Agenda 08-18-2025
-15-
however, that the City shall notify each affected probationary employee in writing prior to the date on which the employee’s probation was to have expired, of the term of the extension and the new date on which the probationary period shall terminate.
ARTICLE 27. TUITION REIMBURSEMENT
Tuition reimbursement will be made in accordance with the on-campus fees or the extension fees of the California State University System, whichever is appropriate, not to exceed $1,500.00 per fiscal year. Section 26.12 of the Personnel Rules is further amended as to this unit only, to provide:
If an employee separates or is separated from City employment less than three (3) years after receiving tuition reimbursement, the employee shall reimburse the City in a pro-rated amount for each month or part thereof which constitutes less than three (3) years post-reimbursement service. For example, if an employee receives $1,000.00 in tuition reimbursement and separates from the City 30 months thereafter, the employee owes the City $170.00. The employee receiving tuition reimbursement shall sign an agreement as a condition precedent to distribution of tuition reimbursement, authorizing the City to deduct owed monies from a closing check without the City obtaining a judgment, and evidencing agreement to the content of this provision.
Tuition reimbursement shall not be provided for courses offered by diploma mills and/or any educational institution not accredited as described in ARTICLE 23 above.
ARTICLE 28. DISCIPLINARY HEARINGS
In those situations, in which an employee is entitled to, and has procedurally qualified for, an evidentiary hearing as part of his or her appeal of a disciplinary action consisting of a termination of the employee’s employment, the evidentiary hearing shall be conducted by a hearing officer mutually selected by the parties or from a list of seven (7) candidates provided by the State Mediation and Conciliation Service. The hearing officer shall provide recommendations to the City Manager with regard to the charges and the discipline. The City Manager, in his or her discretion, may consider the hearing officer’s advisory opinion, but shall not be bound by the advisory opinion in making his/her final decision on the charges and discipline.
ARTICLE 29. PROVISIONS OF LAW
This Memorandum of Agreement is subject to all current and future applicable federal and state laws and federal and state regulations. If any part of the provisions of the Memorandum of Agreement is in conflict or inconsistent with such applicable laws or regulations or is otherwise held to be invalid or unenforceable by a tribunal of competent jurisdiction, such part or provision shall be suspended by such applicable law or regulation and the remainder of the Memorandum of Agreement shall not be affected thereby.
ARTICLE 30. DIRECT DEPOSIT
It is in the mutual interest of the City and its employees to use the available direct deposit system. Thus, all employees who are using the direct deposit system on January 1, 2002 shall continue to use it or its successor program. Any employee who begins using the direct deposit system after January 1, 2002 shall continue to use it or its successor program. Employees Agenda Item No. 15 Page 22 of 34 CC Agenda 08-18-2025
-16-
hired after January 1, 2002 shall be required to utilize the direct deposit system or its successor program. Requests for exemption from this direct deposit policy may be submitted to the City Manager for hardship consideration.
ARTICLE 31. PAYROLL
For efficiency and ease of accounting, the City will calculate and make payroll deductions based upon twenty-four (24) pay periods per year.
ARTICLE 32. OUT OF COUNTY TRAINING
If training occurs out of Ventura County, then all training classes that are 8 hours or longer shall be considered to satisfy the employee’s work shift. If training occurs in Ventura County, then the employee must return to work or, with the approval of the employee’s supervisor, use accrued leave for the portion of the day not spent in training and/or travel connected therewith.
ARTICLE 33. PERSONNEL HANDBOOK
The parties agree that they have met and conferred in good faith concerning the rules set forth in the City’s Personnel Handbook and that Personnel Handbook is incorporated herein by reference. In the event a provision of the Personnel Handbook is inconsistent with any provision in the MOA, the MOA provision will take precedent over the conflicting provision in the Personnel Handbook.
ARTICLE 34. LAYOFFS
Layoffs will occur pursuant to the City’s Personnel Rules, except that Rule 17.0.1(b) is specifically modified to provide that regular sworn employees will be laid off in inverse order of seniority (i.e., most senior employee laid off last). With regard to the five (5) least senior sworn employees in the bargaining unit, layoffs may occur based upon consideration of work records, including disciplinary records, in addition to seniority.
ARTICLE 35. PRIOR AGREEMENTS
In the event that any provision of any prior existing Memorandums of Agreement, Letters of Agreement, Addendums, Side Letters, and other such documents between the parties are inconsistent with any provision in the MOA, the MOA provision will take precedent over the conflicting provision in any such documents.
ARTICLE 36. ANNUAL LEAVE
Regular, full-time Police Unit employees shall accrue annual leave with pay to be used as leave for vacation, illnesses, and other personal purposes. Police Unit employees may accrue such paid leave as provided by this provision to be used in the future or may convert annual leave to salary compensation under the conditions contained in these regulations.
Accumulation Rates:
a) Police Unit employees with less than five (5) complete years of City service shall earn annual leave at the rate of one hundred forty-eight (148) hours per year;
Agenda Item No. 15 Page 23 of 34 CC Agenda 08-18-2025
-17-
b) Police Unit employees with five (5) complete years of City service shall earn annual leave at the rate of one hundred eighty (180) hours per year; c) Police Unit employees with six (6) complete years of City service shall earn annual leave at the rate of one hundred eighty-eight (188) hours per year;
d) Police Unit employees with seven (7) complete years of City service shall earn annual leave at the rate of one hundred ninety-six (196) hours per year;
e) Police Unit employees with eight (8) complete years of City service shall earn annual leave at the rate of two hundred and four (204) hours per year;
f) Police Unit employees with nine (9) complete years of City service shall earn annual leave at the rate of two hundred and twelve (212) hours per year; and
g) Police Unit employees with ten (10) complete years of City service shall earn annual leave at the rate of two hundred and twenty (220) hours per year.
h) Police Unit employees with eleven (11) complete years of City service shall earn annual leave at the rate of two hundred and twenty-eight (228) hours per year.
i) Police Unit employees with twelve (12) complete years of City service shall earn annual leave at the rate of two hundred and thirty-six (236) hours per year.
j) Police Unit employees with thirteen (13) complete years of City service shall earn annual leave at the rate of two hundred and forty-four (244) hours per year.
k) Police Unit employees with fourteen (14) complete years of City service shall earn annual leave at the rate of two hundred and fifty-two (252) hours per year.
l) Police Unit employees with fifteen (15) complete years of City service shall earn annual leave at the rate of two hundred and sixty (260) hours per year.
m) Police Unit employees with sixteen (16) complete years of City service shall earn annual leave at the rate of two hundred and sixty-eight (268) hours per year.
n) Police Unit employees with seventeen (17) complete years of City service shall earn annual leave at the rate of two hundred and seventy-six (276) hours per year.
o) Police Unit employees with eighteen (18) complete years of City service shall earn annual leave at the rate of two hundred and eighty-four (284) hours per year.
p) Police Unit employees with nineteen (19) or more complete years of City service, shall earn annual leave at the rate of two hundred and ninety-two (292) hours per year.
Agenda Item No. 15 Page 24 of 34 CC Agenda 08-18-2025
-18-
Maximum Accumulation:
The maximum accumulation of annual leave shall be five hundred (500) hours. If an employee has accumulated five hundred (500) hours, the employee’s accumulation of annual leave will be discontinued and shall only resume on the first day of the pay period following a reduction in accumulations below five hundred (500) hours.
Conversion to Salary:
Police Unit employees may convert a maximum of one hundred and twenty (120) hours of annual leave to salary compensation per year. Beginning in December 2019, and in each December thereafter, employees who wish to convert vacation hours to salary in the following calendar year, may do so by making an irrevocable election in writing of the number of hours they will accrue in the next calendar year that they choose to cash out. Employees who make the irrevocable election may choose to receive the cash out in July and/or December. The maximum cash out that can be elected to be paid out in July is limited by the employee’s accrual from January 1 through June 30. This is in addition to the limitations described below. Such conversions shall be paid in the first pay period in July and at the second pay period in December of each year.
In order to be eligible to convert annual leave to salary, the employee must:
a) convert a minimum of sixteen (16) hours to pay;
b) upon making the conversion to pay, the employee must be left with a minimum of one hundred and twenty (120) hours of annual leave; c) have used at least forty (40) hours of annual leave one (1) calendar year prior to the day the conversion is being requested, except in the event a member decides to split the conversion between July and December, a rolling one (1) year look back will be applied.
Taking leave prevents the negative effects of burnout, mental or physical illness, and ultimately contributes the overall wellness and wellbeing of our employees.Police Unit employees may convert a maximum of one hundred and twenty (120) hours of annual leave to salary compensation per year. Beginning in December 2019, and in each December thereafter, employees who wish to convert vacation hours to salary in the following calendar year, may do so by making an irrevocable election in writing of the number of hours they will accrue in the next calendar year that they choose to cash out. Employees who make the irrevocable election may choose to receive the cash out in July and/or December. The maximum cash out that can be elected to be paid out in July is limited by the employee’s accrual from January 1 through June 30. This is in addition to the limitations described below. Such conversions shall be paid in the first pay period in July and at the second pay period in December of each year.
In order to be eligible to convert annual leave to salary, the employee must: (a) convert a minimum of sixteen (16) hours to pay, and (b) upon making the Agenda Item No. 15 Page 25 of 34 CC Agenda 08-18-2025
-19-
conversion to pay, the employee must be left with a minimum of one hundred and sixty (160) hours of annual leave.
The City shall have a form available to employees to make this election.
In addition, the City shall make a form available for employees to request an exception to the irrevocable election requirement for unforeseeable emergencies occurring after the election window period. The request for an exception is subject to City approval. The City’s decision on a request for an exception shall not be subject to the grievance procedure.
Notification and Approval:
Annual leave shall be scheduled in advance by the employee whenever possible, subject to the approval of the Chief of Police. It is the responsibility of the employee to provide the supervisor or Chief of Police with reasonable notice of an absence. The Chief of Police shall have the authority to approve or deny the use of annual leave for any period of absence. The scheduling of the use of annual leave shall be by the Chief of Police with due regard to the wishes of the employee and for the needs of the City. Employees who are off for extended periods due to illness or injury may be required to provide a physician's statement authorizing their return to work.
The Department implemented restrictions on the use of accrued leave between March 22, 2020 and June 14, 2020 due to the state of emergency caused by the COVID-19 pandemic leave restrictions. Employees who are employed by the City on the date this MOA is ratified by the City Council who were unable to accrue annual leave when the Department implemented these leave restrictions because they had reached the maximum accrual but were denied use of leave, shall have that leave that they did not accrue restored to their bank even if it results in exceeding the maximum.
Separation from Employment:
Police Unit employees who separate their employment from the City shall have all annual leave accumulations converted to salary compensation at the employee's current regular rate of pay. Compensation shall be paid in one lump sum. Annual leave shall not be used to extend an employee's actual date of separation. When notice is given by an employee that he/she is terminating, the use of annual leave shall be suspended. The only exception to this provision is that with the approval of the employee's supervisor, the employee may be granted short term leaves (one to three days) to attend to personal business or illness. However, such short termshort-term leaves may not be conducted consecutively and with a frequency to create in effect, a long termlong-term leave.
Agenda Item No. 15 Page 26 of 34 CC Agenda 08-18-2025
-20-
Service Credit Conversion:
a) Upon retirement an employee may have unused Annual Leave converted to Service Credit with the Public Employees Retirement System (PERS). b) Annual Leave will be converted to Sick Leave for PERS at the rate of one (1) hour of Annual Leave equals one (1) hour of sick leave. c) When unused Annual Leave is converted to sick leave, for a service credit conversion, an employee may not receive additional cash compensation for the unused leave.
ARTICLE 37. BILINGUAL PAY
Upon qualification, employees of the Police Department shall be eligible to receive forty-five dollars ($45.00) in bilingual pay per pay period. This pay shall increase to one-hundred ($100.00) per pay period. effective with the first full pay period after Council ratification of this MOA for all qualified employees. The increase shall be retroactive up to July 2022 for qualified employees that are employed by the City on the date the Council ratifies this MOU.
ARTICLE 38. RETIREE MEDICAL INSURANCE
Employees who retire on or before July 1, 2011 and who had 15 or more years of full time City service, shall continue to receive lifetime medical annuity for the purchase of medical insurance in an amount equal to the dollar value of the two party HMO plan.
Employees who retire after July 1, 2011 with fifteen (15) years or more of full time City service with the Port Hueneme Police Department at the time of retirement, shall receive a lifetime payment for the purchase of retiree and eligible dependents medical insurance, but in an amount, not to exceed $668.00 per month including the mandated PEMCHA minimum contribution by the City.
Any employee who has at least twelve and a half (12.5) years of full time City service with the Port Hueneme Police Department, and who retires due to an industrial disability will receive a lifetime payment for the purchase of medical insurance, in an amount not less than the PEMHCA mandated minimum employer contribution to retiree medical insurance, but not to exceed Three Hundred Twenty-five dollars ($325.00) per month.
The above benefits shall only apply to employees who retire from the City and who, within One Hundred Twenty (120) days of their retirement, receive a pension from CalPERS.
These premium payments in excess of the minimum mandated PEMHCA amount shall be inapplicable to employees hired on or after July 1, 2011.
DEFINED CONTRIBUTION RETIREE MEDICAL ACCOUNT CONTRIBUTIONS As soon as reasonably practicable after the Council ratifies this MOA, the City will establish a Retiree Medical Trust or equivalent savings plan, or amend an existing plan to allow for contributions on behalf of bargaining unit members. For the term of this MOA, the City shall make a single lump sum contribution to that plan in the amount of three-thousand six hundred dollars ($3,600.00) per employee employed on the date of the contribution. This payment represents a front-loading of the City’s maximum contributions during the 36 month term of the Agenda Item No. 15 Page 27 of 34 CC Agenda 08-18-2025
-21-
MOA at one-hundred dollars ($100.00) per month. The City’s ongoing contribution shall be one hundred dollars ($100.00) per employee per month at the expiration of this MOA, unless modified or eliminated by the parties by agreement or imposition of terms and conditions of employment following negotiations for the successor MOA to this MOA.
Employees hired after the City Council ratifies this MOA shall receive $100 monthly contributions during the term of this MOA, but not the three-thousand six hundred dollar ($3,600.00) lump sum contribution described above.
ARTICLE 39. SOCIAL SECURITY/MEDICARE TAX
All employees shall be required to pay 100% of the employee’s portion of Social Security and Medicare taxes.
ARTICLE 40. OVERTIME
The City has adopted/implemented an FLSA 7k exemption, consisting of 86 hours in a 14 day work period. As regards any and all unit members, paid leave time shall not be considered hours worked for overtime computation purposes, whether pursuant to the FLSA or pursuant to “contract” overtime.
Concurrent with adoption/implementation of the above FLSA 7k exemption consisting of 86 hours in a 14 day work period, the City shall provide “contract overtime” as an offset against FLSA-mandated overtime. Therefore:
(1) Employees subject to the FLSA 7k exemption shall also be eligible for overtime for hours actually worked in excess of the number of hours scheduled for work during each designated week (a seven (7) day, 168 hour168-hour period.) For example, if such an employee was scheduled to work 48 hours in a week, and actually worked 50, the employee would be entitled to two (2) hours of contract overtime.
(2) As further examples, if because of use of annual leave, compensatory time or any other paid leave time only 36 hours were worked, no contract overtime would be earned. If in one week where 48 hours of work are scheduled, an employee worked 16 hours in one day, and was on annual leave, compensatory time or any other paid leave time, the remainder of the week, no contract overtime would be earned because of paid leave time not being considered hours worked for overtime computation purposes.
City practices being utilized prior to the adoption date of the 2011-2013 MOAU, shall continue in force and effect and shall be utilized to determine the starting and ending dates and times of all work periods and work weeks described herein. The City shall promptly notify each unit employee in writing of the start and end of the designated 14-day FLSA work period and the seven-day work period used to calculate that employee’s “contract overtime.” Additionally, for all non-safety employees working a 9/80 or 3/12 work schedule, their work week shall begin exactly four (4) hours into their eight (8) hour shift on the day of the week which constitutes their alternating regular day off.
Agenda Item No. 15 Page 28 of 34 CC Agenda 08-18-2025
-22-
ARTICLE 41. DEFERRED COMPENSATION PLAN
The City shall provide a matching contribution, up to 3% of base salary, to the City’s deferred compensation plan to the account of those employees who contribute up to 3% of base salary to the City’s deferred compensation plan.
IN WITNESS WHEREOF, the parties hereto have caused their duly authorized representatives to execute this Memorandum of Agreement on the day, month and year indicated below:
POLICE OFFICERS ASSOCIATION
Michael Hamrick, President
Henry Montelongo, Vice President
CITY OF PORT HUENEME
James Vega, City Manager
Frank Lee, HR/Risk Manager
Zach Frum, Treasurer
Kimberly Mora, Secretary
Michael Galvan, Secretary/Treasurer
Mike McGill, Ferrone Law Group
Agenda Item No. 15 Page 29 of 34 CC Agenda 08-18-2025
-iTABLE OF CONTENTS
Page No.
ARTICLE 1. IMPLEMENTATION ............................................................................1 ARTICLE 2. TERM ..................................................................................................1 ARTICLE 3. DEFINITION OF SWORN AND NON-SWORN EMPLOYEES............1 ARTICLE 4. CAFETERIA PLAN .............................................................................2 ARTICLE 5. HOLIDAYS..........................................................................................3 ARTICLE 6. WORK SCHEDULE ............................................................................4 ARTICLE 7. EXPERIENCE DIFFERENTIAL...........................................................4 ARTICLE 8. POLICE OFFICERS’ ASSOCIATION LEAVE BANK.........................5 ARTICLE 9. RANK SEPARATION..........................................................................5 ARTICLE 10. SALARY RANGE INCREASES..........................................................5 ARTICLE 11. UNIFORM ALLOWANCE ...................................................................6 ARTICLE 12. ASSOCIATION DUES ........................................................................7 ARTICLE 13. PERS RETIREMENT SYSTEM AMENDMENT ..................................7 ARTICLE 14. COMPENSATORY TIME BANK.......................................................10 ARTICLE 15. DEPENDENT CARE ASSISTANCE PROGRAM .............................10 ARTICLE 16. DETECTIVE UNIT PREMIUM PAY...................................................10 ARTICLE 17. CALL-OUT PAY: DETECTIVES.......................................................10 ARTICLE 18. DETECTIVE STAND-BY PAY ..........................................................10 ARTICLE 19. MINIMUM CALL-BACK PAY............................................................10 ARTICLE 20. CALL-OUT PAY POLICY CLARIFICATION: PATROL
OFFICERS ........................................................................................11 ARTICLE 21. CANINE CARE COMPENSATION ...................................................11 ARTICLE 22. COURT STANDBY PAY...................................................................11 ARTICLE 23. INCENTIVE PAY...............................................................................12 Agenda Item No. 15 Page 30 of 34 CC Agenda 08-18-2025
-iiARTICLE 24. DENTAL, VISION, HEALTH & LONG-TERM DISABILITY GROUP INSURANCE PLAN ............................................................12 ARTICLE 25. VEHICLE USE BY CANINE HANDLER, MOTOR OFFICER, AND DETECTIVES....................................................................................13 ARTICLE 26. PROBATIONARY PERIOD...............................................................13 ARTICLE 27. TUITION REIMBURSEMENT ...........................................................13 ARTICLE 28. DISCIPLINARY HEARINGS .............................................................14 ARTICLE 29. PROVISIONS OF LAW.....................................................................14 ARTICLE 30. DIRECT DEPOSIT ............................................................................14 ARTICLE 31. PAYROLL .........................................................................................14 ARTICLE 32. OUT OF COUNTY TRAINING ..........................................................14 ARTICLE 33. PERSONNEL HANDBOOK ..............................................................14 ARTICLE 34. LAYOFFS..........................................................................................15 ARTICLE 35. PRIOR AGREEMENTS.....................................................................15 ARTICLE 36. ANNUAL LEAVE ..............................................................................15 ARTICLE 37. BILINGUAL PAY...............................................................................18 ARTICLE 38. RETIREE MEDICAL INSURANCE ...................................................18 ARTICLE 39. SOCIAL SECURITY/MEDICARE TAX..............................................18 ARTICLE 40. OVERTIME.......................................................................................18 ARTICLE 41. DEFERRED COMPENSATION PLAN..............................................19 Agenda Item No. 15 Page 31 of 34 CC Agenda 08-18-2025
This Page Intentionally Left Blank
Agenda Item No. 15 Page 32 of 34 CC Agenda 08-18-2025
Classification Employee Group Step Hourly Monthly Annual Base $30.06 $5,211 $62,529
Mid $34.56 $5,991 $71,895
Top $39.07 $6,772 $81,260
Base $46.42 $8,449 $101,383
Mid $53.39 $9,717 $116,599
Top $60.35 $10,985 $131,815
Base $54.67 $9,949 $119,389
Mid $62.87 $11,442 $137,300
Top $71.07 $12,934 $155,211
Base $31.71 $5,497 $65,960
Mid $36.46 $6,320 $75,839
Top $41.21 $7,143 $85,718
Base $63.36 $11,531 $138,374
Mid $72.88 $13,264 $159,170
Top $82.40 $14,997 $179,967
Base $30.76 $5,332 $63,987
Mid $35.37 $6,131 $73,570
Top $39.98 $6,929 $83,153
Base $41.05 $7,115 $85,381
Mid $47.21 $8,182 $98,189
Top $53.36 $9,250 $110,996
Base $41.05 $7,115 $85,381
Mid $47.21 $8,182 $98,189
Top $53.36 $9,250 $110,996
Base $34.88 $6,046 $72,556
Mid $40.11 $6,952 $83,423
Top $45.33 $7,857 $94,290
Base $26.63 $4,615 $55,382
Mid $30.62 $5,307 $63,689
Top $34.61 $6,000 $71,997
Base $34.21 $5,929 $71,150
Mid $39.34 $6,818 $81,820
Top $44.47 $7,707 $92,490
$33.71
Parking Enforcement Officer PHPOA
Parking Enforcement Officer-Senior PHPOA
Police Officer Trainee Unrep
Property and Evidence Supervisor PHPOA
Public Safety Dispatch Supervisor PHPOA
Public Safety Dispatcher PHPOA
Police Records Technician Senior PHPOA
Police Sergeant PHPOA
Property and Evidence/Crime Scene Technician PHPOA
City of Port Hueneme
FY26 Police Officer's Association Salary Schedule (eff 9/1/2025 - 4% COLA) Police Community Services Officer PHPOA
Police Officer PHPOA
Police Officer - Senior PHPOA
Attachment C
Agenda Item No. 15 Page 33 of 34 CC Agenda 08-18-2025
Classification Employee Group Step Hourly Monthly Annual Base $30.66 $5,315 $63,780
Mid $35.26 $6,111 $73,333
Top $39.85 $6,907 $82,886
Base $47.35 $8,618 $103,411
Mid $54.46 $9,911 $118,931
Top $61.56 $11,204 $134,451
Base $55.76 $10,148 $121,777
Mid $64.12 $11,671 $140,046
Top $72.49 $13,193 $158,315
Base $32.35 $5,607 $67,279
Mid $37.19 $6,446 $77,356
Top $42.03 $7,286 $87,432
Base $64.62 $11,762 $141,141
Mid $74.34 $13,529 $162,353
Top $84.05 $15,297 $183,566
Base $31.38 $5,439 $65,266
Mid $36.08 $6,253 $75,041
Top $40.78 $7,068 $84,816
Base $41.87 $7,257 $87,089
Mid $48.15 $8,346 $100,152
Top $54.43 $9,435 $113,216
Base $41.87 $7,257 $87,089
Mid $48.15 $8,346 $100,152
Top $54.43 $9,435 $113,216
Base $35.58 $6,167 $74,007
Mid $40.91 $7,091 $85,091
Top $46.24 $8,015 $96,175
Base $27.16 $4,707 $56,490
Mid $31.23 $5,414 $64,963
Top $35.31 $6,120 $73,437
Base $34.89 $6,048 $72,573
Mid $40.12 $6,955 $83,456
Top $45.36 $7,862 $94,340
Police Officer Trainee Unrep $34.38
Public Safety Dispatcher PHPOA
Parking Enforcement Officer PHPOA
Parking Enforcement Officer-Senior PHPOA
Property and Evidence/Crime Scene Technician PHPOA
Property and Evidence Supervisor PHPOA
Public Safety Dispatch Supervisor PHPOA
Police Officer - Senior PHPOA
Police Records Technician Senior PHPOA
Police Sergeant PHPOA
City of Port Hueneme
FY27 Police Officer's Association Salary Schedule (eff 7/6/2026 - % 2 COLA) Police Community Services Officer PHPOA
Police Officer PHPOA
Agenda Item No. 15 Page 34 of 34 CC Agenda 08-18-2025
DATE: August 18, 2025
TO: Honorable City Council
FROM: James Vega, City Manager
Charles Peretz, Deputy City Manager
SUBJECT: INTRODUCTION OF AN ORDINANCE TO AMEND CHAPTER 7 OF
ARTICLE III OF THE PORT HUENEME MUNICIPAL CODE FOR THE
PURPOSE OF ADDING SMOKING RESTRICTIONS INCLUDING A
SMOKING PROHIBITION WITHIN MULTI-UNIT RESIDENTIAL
PROPERTIES
RECOMMENDATION:
It is recommended the City Council:
1. Open the public hearing to take testimonial and documentary evidence; and
2. Close the public hearing and consider the evidence; and
3. Introduce for first reading, by title only, waiving further reading of an Ordinance entitled, “An Ordinance of the City Council of the City of Port Hueneme, California Amending Chapter 7 of Article III of the Port Hueneme Municipal Code, for the Purpose of Adding Smoking Restrictions Including a Smoking Prohibition with MultiUnit Properties”; and
4. Take such additional, related, action that may be desirable.
BACKGROUND/ANALYSIS:
On November 20, 2023, the City Council received public comments requesting that the City prohibit smoking in multi-unit residential buildings. At multiple subsequent meetings, the City Council has received and considered information pertaining to the impacts of smoking in such residences and potential regulatory changes. These meetings have included: a) additional public input regarding the effects of second-hand smoke and requests to ban smoking within multi-unit housing; b) a review of the City’s existing smoking regulations and review of ordinances from nearby jurisdictions that prohibit smoking in multi-unit residences; c) results from a survey of property owners and managers of multi-unit residential properties in Port Hueneme; and d) a review of potential changes to the City’s current smoking regulations.
On October 21, 2024, the City Council voted unanimously to direct staff to prepare an ordinance that would prohibit smoking in multi-unit residential properties. The motion included the directive that the ordinance be reflective of the questions and comments Agenda Item No. 16 Page 1 of 17 CC Agenda 08-18-2025
Amended Smoking Ordinance – Multi-Unit Residences
August 18, 2025
posed by the Council during its discussion. Those questions and comments, along with staff’s response, can be summarized as follows:
- Approach to enforcement
Consistent with how other local jurisdictions have crafted similar ordinances, City involvement would be limited. If the City receives a complaint related to smoking in multi-unit residences, information about the potential violation would be forwarded to the alleged violator and person legally responsible for the unit. Those individuals will be responsible for taking action to investigate and enforce the ordinance.
- Obligations to enforce
During October 21, 2024 meeting, the City Attorney clarified that the City has multiple governmental immunities and lack of enforcement would likely not generate liability for the City.
- Ventilation systems
In follow-up to the Council discussion about the effectiveness of unit-specific ventilation systems, staff communicated with the Public Health Law Center (an organization devoted to developing and defending laws that promote health and well-being). The Center has determined that such systems do not effectively prevent the dangers of secondhand smoke and noted that research from the CDC and Nonsmokers’ Rights Foundation supports this finding. The proposed ordinance does not provide an exemption for units with such systems.
- Application to rented and/or owner-occupied units
Council discussion included an inquiry regarding whether the ordinance would apply to both rented and owner-occupied units. Staff indicated that the proposal was to apply the restriction to all units, regardless of rent/own status, which is the case with many other municipal ordinances. The ordinance’s definition of multi-unit residences includes language which makes clear that it includes both owner-occupied and rented units.
- Definition of Multi-Unit residence
During the Council’s discussion of the definition of this term, there was discussion about its applicability to townhomes. The definition has been amended to include this term to clarify that such residences are included.
At the October 21, 2024 meeting the Council received and considered specific information regarding smoking restrictions in multi-unit residence in the cities of Ojai, Moorpark and Carpinteria. These cities define multi-unit residences similarly and have adopted similar requirements and approaches to enforcement. In all three cases, City code enforcement plays a limited role, with responsibility for enforcement falling to property owners or managers, or through legal action by and between private parties. Similarly, Port Hueneme’s approach would be focused on informing and educating residents about the ordinance. If violations are reported to the City, staff would issue a letter containing information about the ordinance prohibiting smoking within multi-unit residences to the alleged violator and property manager/owner.
Agenda Item No. 16 Page 2 of 17 CC Agenda 08-18-2025
Amended Smoking Ordinance – Multi-Unit Residences
August 18, 2025
To ensure public awareness and provide time for landlords and property managers to take actions required by the proposed ordinance (e.g. removal of smoking related items and posting of signs), it is recommended that the prohibition have an effective date of October 1, 2026. In addition to using social media channels and the City’s newsletter, outreach efforts would include direct communications to the City’s Homeowners Associations, Ventura County Coastal Association of Realtors, and registered owners of multi-unit residential buildings in Port Hueneme.
Summary of Amended Ordinance
The primary purpose of the proposed amendment to the City’s smoking ordinance is to prohibit smoking within multi-unit housing, including both individual units and common areas, in order to better protect residents from the health risks of secondhand smoke.
However, the proposed amendment also includes updates that create a more comprehensive and modern smoking ordinance. Collectively, the proposed changes are expected to improve the grade assigned to the City of Port Hueneme by the American Lung Association in its State of Tobacco Control report.
The proposed changes which are summarized below, are shown comprehensively in Attachment A, which is a redlined version of the City’s smoking ordinance.
Section 3602 – Definitions
• A new definition for “Common Area” was added to describe specific areas within multi-unit residences (e.g., lobbies, hallways, playgrounds). • A new definition for “Electronic Smoking Device” was added to provide greater clarity for the definition of ‘smoke’ (which currently utilizes this term). • A new definition for “Landlord” was added to describe the person legally for responsible for a leased unit within multi-unit housing. • A new definition for “Multi-Unit Residence” was added to provide a clear explanation of what types of properties are subject to specific prohibitions. • The definition for “Service Line” was amended.
• The definition of “Smoke” and “Smoking” was amended to include nicotine and cannabis.
• A new definition for “Unit” was added to describe personal dwelling units in multiunit residence (inclusive of balconies, porches and patios).
Section 3605 – Regulation of smoking in multi-unit residences (new section) • Smoking prohibited in all units of multi-unit residences • Allows for the establishment of smoking areas subject to specific conditions Agenda Item No. 16 Page 3 of 17 CC Agenda 08-18-2025
Amended Smoking Ordinance – Multi-Unit Residences
August 18, 2025
• “No Smoking” signage requirements
• Landlords must remove ash trays, ash cans and other designated smoking amenities from common areas
• Property owners/managers with knowledge of violations to take action • Leases and sales contracts must be amended to reflect the smoking prohibition within one-year after adoption
• Property owners/managers shall issue written notices to all tenants and/or property owners regarding smoking prohibitions (unless such restrictions are already in place)
• Absolves landlords and property owners that comply with ordinance requirements from liability related violations committed by tenants/owner-occupants FISCAL IMPACT:
While it is difficult to estimate the number of violations that may be reported to the City, based on the recommended approach, it is anticipated that City involvement would be limited to approximately 40-50 hours annually. Sufficient funds are available in the operating budget account number 101-332-5100 for Code Compliance.
STRATEGIC PLAN
Primary Strategic Pillar and Initiative:
Safe, Secure and Beautiful Community
• We invest in efforts to keep our environment and all parts of our physical spaces accessible, inviting and safe
ATTACHMENTS:
A. Ordinance
- Exhibit A (Redline version of Port Hueneme’s Smoking Ordinance) Agenda Item No. 16 Page 4 of 17 CC Agenda 08-18-2025
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PORT HUENEME, CALIFORNIA, AMENDING CHAPTER 7 OF ARTICLE III, OF THE CITY OF
PORT HUENEME MUNICIPAL CODE FOR THE PURPOSE OF ADDING
SMOKING RESTRICTIONS INCLUDING A SMOKING PROHIBTION WITHIN
MULTI-UNIT RESIDENTIAL PROPERTIES
WHEREAS, numerous studies have found that tobacco smoke and smoke from any other weed or plant is a major contributor to indoor air pollution; and WHEREAS, studies have shown that breathing secondhand smoke is a significant health hazard and can induce lung cancer, respiratory infection, decreased exercise tolerance and decreased respiratory function; and
WHEREAS, smoking is a danger to health and a cause of material annoyance, inconvenience, discomfort and health hazards to those that are present in areas exposed to second hand smoke; and
WHEREAS, the City Council received public input regarding the adverse impacts of smoking in multi-unit residential properties; and
WHEREAS, guiding principles embedded in the City’s Strategic Plan include applying health and safety measures that meet the needs of the whole community; and WHEREAS, on October 21, 2024, the City Council voted unanimously to direct staff to prepare an ordinance that would modify Port Hueneme’s smoking ordinance to prohibit smoking in multi-unit residences.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PORT HUENEME DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1: RECITALS AND FINDINGS. The above recitals are all true and correct:
SECTION 2: Chapter 7 of Article III of the Port Hueneme Municipal Code is hereby amended as shown on Exhibit A, attached hereto and incorporated herein.
SECTION 3: ENVIRONMENTAL REVIEW. The Council exercises its independent judgment and finds that the proposed ordinance is Categorically Exempt from the California Environmental Quality Act (CEQA), pursuant to Section 15061(b)(3) of Title 14 of the California Code of Regulations (CEQA Guidelines), because the subject regulations will have no potential for resulting in any significant adverse physical change to the environment, either directly or indirectly.
SECTION 4: ENFORCEABILITY. Repeal of any provision of the Port Hueneme Municipal Code does not affect any penalty, forfeiture, or liability incurred before, or preclude prosecution and imposition of penalties for any violation occurring before this Ordinance’s effective date. Any such repealed part will remain in full force and effect for sustaining action or prosecuting violations occurring before the effective date of this Ordinance.
SECTION 5: SEVERABILITY. If any section, subsection, sentence, clause, phrase, or portion of this Chapter is held to be invalid or unconstitutional by any court of competent jurisdiction for any reason, such decision shall not affect the validity of the remaining portions of this Chapter. The Attachment A
Agenda Item No. 16 Page 5 of 17 CC Agenda 08-18-2025
Ordinance No. ___, Page 2 of 3
Council declares that it would have adopted each section, subsection, sentence, clause, phrase, or portion of this Chapter irrespective of whether one or more sections, subsections, sentences, clauses, phrases, or portions of this Chapter be declared invalid or unconstitutional.
SECTION 6: EFFECTIVE DATE. This Ordinance shall take effect on October 1, 2026.
SECTION 7: REPEAL OF CONFLICTING PROVISIONS. All of the provisions of the City Municipal Code as heretofore adopted by the Council that are in conflict with the provisions of this Ordinance are hereby repealed.
SECTION 8: CERTIFICATION. 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 ____ 2025.
Martha R. McQueen-Leoghn
Mayor
ATTEST:
________________________________
Georgianna Nicole Alvarez
City Clerk
APPROVED AS TO FORM:
________________________________
Joan Stevens Smyth
City Attorney
Agenda Item No. 16 Page 6 of 17 CC Agenda 08-18-2025
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 _____, 2025, and duly adopted at the regular meeting of ________, 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Dated:
Georgianna Nicole Alvarez
City Clerk
Agenda Item No. 16 Page 7 of 17 CC Agenda 08-18-2025
This Page Intentionally Left Blank
Agenda Item No. 16 Page 8 of 17 CC Agenda 08-18-2025
EXHIBIT A
3601 – Findings and purpose.
The Council does hereby find:
(a) Numerous studies have found that tobacco smoke and the smoke of any other weed or plant is a major contributor to indoor air pollution; and (b) Reliable studies have shown that breathing secondhand smoke is a significant health hazard for several population groups, including elderly persons, individuals with cardiovascular disease, and individuals with impaired respiratory function, including asthmatics and those with obstructive airway disease; and (c) Health hazards induced by breathing second-hand smoke include lung cancer, respiratory infection, decreased exercise tolerance, decreased respiratory function, bronchoconstriction, and bronchospasm; and
(d) Nonsmokers who suffer allergies, respiratory diseases, and other ill-effects of breathing second-hand smoke may experience a loss of job productivity or may be forced to take periodic sick leave because of such reactions; and
(e) Numerous studies have shown that a majority of both nonsmokers and smokers desire to have restrictions on smoking in public places and places of employment; and (f) Smoking is a potential cause of fires, and cigarette and cigar burns and ash stains on merchandise and fixtures cause losses to the businesses; and (g) Smoking is a danger to health and a cause of material annoyance, inconvenience, discomfort, and health hazards to those who are present in areas exposed to secondhand and/or side-stream smoke; and
(h) Accordingly, the Council finds and declares that the purposes of this ordinance are (1) to protect the public health and welfare prohibiting smoking in public places except in designated smoking areas, and by regulating smoking in places of employment; and (2) to strike a reasonable balance between the needs of persons who smoke and the need of nonsmokers to breathe smoke-free air, and to recognize that, where these needs conflict, the need to breathe smoke-free air shall have priority. 3602 – Definitions.
The following words and phrases, whenever used in this Article, shall be used as defined in this Section.
Exhibit A
Agenda Item No. 16 Page 9 of 17 CC Agenda 08-18-2025
(a) "Bar" means an area which is devoted to the serving of alcoholic beverages for consumption by guests on the premises and in which the serving of food is only incidental to the consumption of such beverages. Although a restaurant may contain a bar, the term "bar" shall not include the restaurant dining area. (b) "Bingo Game Establishments" means the facilities used by organizations operating bingo games pursuant to Sec. 326.5 of the California Penal Code. (c) "Business" means any sole proprietorship, partnership, joint venture, corporation, or other business entity formed for profit-making purposes, including retail establishments where goods or services are sold as well as professional corporations and other entities where legal, medical, dental, engineering architectural or other professional services are delivered.
(d) “Common Area” means every enclosed and unenclosed area of a multi-unit residence that residents of more than one unit are entitled to enter or use, including, but not limited to halls, pathways, lobbies, courtyards, stairs, community rooms, playgrounds, gym facilities, swimming pools, parking areas, restrooms, laundry rooms, cooking areas, and eating areas.
(e) "Dining Area" means any area containing a counter or tables upon which meals are served.
(d)(f) “Electronic Smoking Device” means an electronic or batter-operated device that may be used to deliver any aerosolized or vaporized substance to the person inhaling from the device, including, but not limited to, an electronic cigarette, electronic cigar, electronic pipe or vape pen. The term does not include any product specifically approved by the United States Food and Drug Administration for use in the mitigation, treatment or prevention or diseases.
(e)(g) "Employee" means any person who is employed by any employer in the consideration for direct or indirect monetary wages or profit, and any person who volunteers his or her services for a non-profit entity. (f)(h) "Employer" means any person, partnership, corporation, including a public agency or nonprofit entity, who employs more than one employee. (i) "Enclosed Area" means all space between a floor and ceiling which is enclosed on all sides by solid walls or windows (exclusive of door or passageways) which extend from the floor to the ceiling, including all space therein screened by partitions which do not extend to the ceiling or not solid, "office landscaping" or similar structures. (g)(j) “Landlord” means any person or agent of a person who owns, manages or is otherwise legally responsible for a unit in a multi-unit residence that is leased to a residential tenant. For purposes of this chapter, a resident who sublets their unit (e.g., a sublessor) is not a landlord.
Formatted: Left, Indent: Left: 0.5", No bullets or
numbering
Formatted: Left, Indent: Left: 0.5", No bullets or
numbering
Formatted: Left, Indent: Left: 0.5", No bullets or
numbering
Agenda Item No. 16 Page 10 of 17 CC Agenda 08-18-2025
(k) "Motion Picture Theatre" means any theatre engaged in the business of exhibiting motion pictures.
(l) “Multi-Unit Residence” means a residential property containing two or more units, whether owner-occupied or rented, including but not limited to, apartment buildings, condominium complexes, townhomes, senior and assisted living facilities, group homes, and long-term care facilities. The following types of housing are specifically excluded from this definition:
1. Single family homes
2. Detached or attached accessory dwelling units on property zoned for singlefamily use.
3. Hotels and motels
(h)
(i)(m) "Non-Profit Entity" means any corporation, unincorporated association or other entity created from charitable, philanthropic, educational, character building, political, social, or other similar purposes, the net proceeds from the operations of which are committed to the promotion of the objects or purposes of the organization and not to private financial gain. A public agency is not a “non-profit entity” within the meaning of this Section.
(j)(n) “Open Space” means a natural, undeveloped, and unenclosed area of land owned, used, or maintained by the City, and devoted to habitat, agriculture, or passive recreation and not designated a park by the City.
(k)(o) "Place of Employment" means any enclosed area under the control of a public or private employer which employees normally frequent during the course of employment, including, but not limited to, work areas, employee lounges and restrooms, conference and classrooms, employee cafeterias and hallways. (1) A private residence is not a "place of employment" unless it is used as a child ca re or health facility.
(2) The dining area of a restaurant is not a "place of employment." (l)(p) “Public Place" means any area to which the public is invited or in which the public is permitted, including but not limited to, banks, educational facilities, health facilities, public transportation facilities, reception areas, restaurants, retail food production and marketing establishments, retail service establishments, retail stores, theatres and waiting rooms. A private residence is not a "public place." (m)(q) “Public Park” means any park, reservation, playground, swimming pool, recreation center or any other area in the City, owned or used by the City and devoted to active or passive recreation.
Formatted: Left, Indent: Left: 0.5", No bullets or
numbering
Formatted: Left, Indent: Left: 0.5", No bullets or
numbering
Formatted: Normal, No bullets or numbering
Agenda Item No. 16 Page 11 of 17 CC Agenda 08-18-2025
(n)(r) "Restaurant" means any coffee shop, cafeteria, luncheonette, tavern, cocktail lounge, sandwich stand, soda fountain, private and public school cafeteria or eating establishment, and any other eating establishment, organization, club, including veterans' club, boardinghouse, or guesthouse, which gives or offers for sale food to the public, guests, patrons or employees as well as kitchens in which food is prepared on the premises for serving elsewhere, including catering facilities, except that the term "restaurant" shall not include a cocktail lounge or tavern if said cocktail lounge or tavern is a "bar" as defined in Section 3402(a).
(o)(s) "Retail Tobacco Store" means a retail store utilized exclusively or the sale of tobacco products and accessories and in which the sale of other products is merely incidental.
(p)(t) "Service LineArea" means any indoor or outdoor publicly or privately owned area, including streets and sidewalks, designed to be used by line at which one (1) or more persons to receive or wait to receive are waiting for or receiving a service of any kind, whether or not such service involves the exchange of money. (q)(u) “Smoke” or “Smoking” means the carrying, inhaling, or emitting the fumes or vapors of a lighted or activated pipe, cigar, cigarette, electronic smoking device, or any other lighted or activated smoking product or equipment used to burn any tobacco product, nicotine, cannabis, weed, plant, or other combustible substance in any manner or in any form. Smoke does not mean the combustion of material solely for olfactory purposes such as, for example, smoke from incense, that does not contain any tobacco or nicotine, or the emissions from a product specifically approved by the United State Food and Drug Administration for use in mitigating or preventing disease. (v) "Sports Arena" means sports pavilions, gymnasiums, health spas, boxing arenas, swimming pools, roller and ice rinks, bowling alleys and other similar places where members of the general public assemble either to engage in physical exercise, participate in athletic competition or witness sports events. (r)(w) “Unit” means any personal dwelling space in a multi-unit residence, and shall include any associated exclusive-use area, including, but not limited to private balconies, porches, or patios.
3603 – Application of this Article to City-Owned Facilities.
All enclosed facilities owned, leased, or controlled by the City of Port Hueneme shall be subject to the provisions of this Article.
3604 – Prohibition of smoking in public places.
(a) Smoking shall be prohibited in public places within the City, including, but not limited to, the following places, and with the following exceptions:
Formatted: Left, Indent: Left: 0.5", No bullets or
numbering
Agenda Item No. 16 Page 12 of 17 CC Agenda 08-18-2025
(1) Elevators.
(2) Buses, taxicabs, and other means of public transit under the authority of the City of Port Hueneme, and ticket, boarding, and waiting areas of public transit depots. This prohibition does not prevent a business or other entity from establishing separate waiting areas for smokers and nonsmokers in compliance with this Chapter. (3) Restrooms.
(4) Service linesareas.
(5) Retail stores, except areas in said stores not open to the public and all areas within retail tobacco stores.
(6) All areas available to and customarily used by the general public in all businesses and non-profit entities patronized by the public, including but not limited to, professional offices and other offices and banks.
(7) Restaurants, including outdoor seating areas, whether or not in private clubs. (8) Galleries, libraries, and museums.
(9) Any building, open to the sky, which is primarily used for, or designed for the primary purpose of exhibiting any motion picture, stage, drama, lecture, musical recital, or other similar performance, except when smoking is a part of the stage production.
(10) Indoor and outdoor sports arenas and health and fitness clubs, auditoriums, and entertainment centers.
(11) Every room, chamber, place of meeting or public assembly including school buildings under the control of any board, council, commission, committee, including joint committees, or agencies or the City or any political subdivision of the State during such time as a public meeting is in progress, to the extent such place is subject to the jurisdiction of the City.
(12) All indoor and outdoor reception and/or waiting areas. (13) Polling places.
(14) Retail food marketing establishments, including, but not limited to, grocery stores, supermarkets, and farmer’s markets.
(15) Beauty and personal care salons and barber shops.
Agenda Item No. 16 Page 13 of 17 CC Agenda 08-18-2025
(16) Laundromats.
(17) Common areas in of multi-unit residences apartment buildings, condominiums, retirement facilities, nursing homes, and dormitories. (18) Not less than 80 percent of units and all common areas of hotel and motel facilities.
(19) Any public park, public garden or open space owned by the City. (20) Inside all facilities owned, leased, or controlled by the City. (b) Notwithstanding any other provision of this Section, any owner, operator, manager, or other person who controls any establishment or facility described in this section may declare that entire establishment or facility as a nonsmoking establishment. 3605– Regulation of smoking in multi-unit residences
(a) Effective October 1, 2026 smoking shall be prohibited within all units in multi-unit residences.
(b) As an exception to the prohibition described in 3604(a)(17) of this chapter, smoking will be permitted in designated smoking areas which meet the following conditions:
(1) Smoking areas will be no less than 25 feet from playgrounds, building entrances and operable windows
(2) Smoking area shall be posted with one or more “Designated Smoking Area” signs in a form consistent with Section 3608 of this ordinance (3) Smoking areas shall contain ash cans allowing for proper disposal and property owner/manager shall ensure such cans are regularly maintained (c) Persons with legal control over common areas, other than designated smoking areas as described in 3605(2), shall post and maintain clear and unambiguous “No Smoking” signs, in a form consistent with section 3608 of this ordinance, in sufficient numbers and locations.
(d) Landlords, property owners and property managers with knowledge of violations of this section shall take reasonable steps to investigate and enforce the regulations, including written notice of the violation, a request to cease the violation and the course of action to be taken if the violation is not corrected. (e) Upon adoption of this ordinance and prior to its effective date of October 1, 2026, persons will legal responsibility for units shall:
Formatted: Font: Not Bold
Formatted: List Paragraph, Numbered + Level: 1 +
Numbering Style: 1, 2, 3, … + Start at: 3605 + Alignment:
Left + Aligned at: 0.25" + Indent at: 0.58"
Formatted: Font: Not Bold, Not Highlight
Formatted: Font: Not Bold
Formatted: Font: Not Bold
Formatted: Font: Not Bold
Formatted: Indent: Left: 0.75", No bullets or numbering Formatted: Left, Indent: Left: 0.5", No bullets or
numbering
Formatted: Indent: Left: 1", No bullets or numbering
Formatted: Left, Indent: Left: 0.5", No bullets or
numbering
Formatted: Left, Indent: Left: 0.5", No bullets or
numbering
Formatted: Indent: Left: 0.75", No bullets or numbering Formatted
Formatted: Indent: Left: 1", No bullets or numbering
Formatted: List Paragraph, Numbered + Level: 1 +
Numbering Style: a, b, c, … + Start at: 1 + Alignment: Left + Aligned at: 0.5" + Indent at: 0.75"
Agenda Item No. 16 Page 14 of 17 CC Agenda 08-18-2025
(1) Provide notice of this ordinance and the associated smoking prohibition to existing tenants
(2) Ensure that rental and sales contracts associated with the lease or sale of units subject to this section incorporate language substantially consistent with the following: “Pursuant to section 3605 of Port Hueneme’s Municipal Code, smoking is prohibited in common areas and individual units of multi-unit residences.”
(f) The tenant(s) of a unit, or owner-occupants(s) of an owner-occupied unit, shall be the person(s) responsible for the violation where the violation was caused by the tenant(s) or owner-occupant(s) of the unit, or person(s) subject to the control of, or present by invitation or permission of, the tenant(s) or owner-occupant(s). (g) Any person may bring a civil action to enforce this section to recover damages and/or to prevent future violations. However, landlords, property owners and property managers who fully comply with the requirements of this Chapter shall not be criminally or civilly liable for a person’s breach of any smoking provision within the multi-unit residence.
3605 3606 – Regulation of smoking in places of employment.
All employers shall comply with State law regarding smoking or vaping in enclosed spaces in places of employment, which explicitly preempt local regulation on the subject. 3606 3607 – Where smoking not regulated.
(a) Notwithstanding any other provision of this Article to the contrary, the following areas shall not be subject to the smoking restrictions in this Article:
(1) Private residences, other than those specifically identified in Section 3605 and residences except when used as a childcare or health care facility. (2) Retail and wholesale tobacco shops in conformity with State law. 3607 3608 – Posting of signs.
(a) “Smoking” or “No Smoking” signs, whichever are appropriate shall be clearly and conspicuously posted in every building or other place where smoking is regulated by this Article, by the owner, operator-manager, or other person having control of such building or other places. Such signs shall have letters of not less than one inch (1”) in height or the international “No Smoking” symbol (consisting of a pictorial representation of a burning cigarette enclosed in a red circle with a red bar across it).
Formatted: Normal, No bullets or numbering
Formatted: Indent: Left: 1", No bullets or numbering
Formatted: Indent: Left: 1", No bullets or numbering
Formatted: Indent: Left: 0.75", No bullets or numbering Formatted: Numbered + Level: 1 + Numbering Style: a, b, c, … + Start at: 1 + Alignment: Left + Aligned at: 0.5" + Indent at: 0.75"
Formatted: Font: Not Bold
Agenda Item No. 16 Page 15 of 17 CC Agenda 08-18-2025
(b) Every theatre owner, manager, or operator shall conspicuously post signs in the lobby stating that smoking is prohibited within the theatre or auditorium, and in the case of motion picture theatres, such information shall be shown upon the screen for at least five (5) seconds prior to the showing of each feature motion picture. (c) Every restaurant shall have posted at every public entrance a conspicuous sign clearly stating that smoking prohibited.
3608 3609 – Enforcement.
Enforcement of this Article shall be in accordance with the policies and procedures of Article I of the Municipal Code of the City of Port Hueneme. 361009 – Violations and Penalties.
(a) It shall be unlawful for any person to smoke in any area where smoking is prohibited by the provisions of this Article.
(b) Any person who violates any provision of this Article shall be subject to a criminal prosecution or administrative citation in accordance with Article I of this Code. (c) Penalties for violations of this Article shall be consistent with Section 1102 of Article I of this Code.
3610 3611 – Exemptions.
(a) Any person, owner, or manager of a property or other establishment that is subject to this Article may apply to the City Manager or his or her designee for an exemption or modification to any of the provisions of this Article due to unusual circumstances or conditions. A person, owner, or manager must make an affirmative showing in writing that any exemption would not be injurious to public health, welfare, or safety and would further legitimate business or personal interests by clear and convincing evidence. (b) If such application for exemption from any provision of this Article is denied by the City Manager or his or her designee, the applicant may appeal the City Manager’s decision to the City Council in writing within ten (10) days of the issuance of decision.
The burden of proof will be on the applicant that the City Manager’s decisions was not based upon substantial evidence, was arbitrary or capricious, and not in accordance with this Code.
(c) The applicant for an exemption shall be required to pay a reasonable fee to cover costs and expenses of any hearing, as set forth in the City’s most current fee schedule set by City Council resolution.
3611 3612 – Other applicable laws.
Agenda Item No. 16 Page 16 of 17 CC Agenda 08-18-2025
This Article shall not be interpreted or construed to permit smoking or vaping where it is otherwise restricted by any other applicable law or regulation.
Agenda Item No. 16 Page 17 of 17 CC Agenda 08-18-2025
DATE: August 18, 2025
TO: Honorable City Council
FROM: James Vega, City Manager
Brian Popovich, City Manager’s Analyst
SUBJECT: SHORT-TERM RENTAL COMMUNITY ENGAGEMENT FINDINGS AND
POTENTIAL REGULATORY FRAMEWORK
RECOMMENDATION:
It is recommended that the City Council receive this report on Short-Term Rental Regulations, and community engagement findings, and provide direction to staff to draft a Short-Term Rental ordinance using the moderate framework consistent with this report, or provide alternate direction as desired.
BACKGROUND/ANALYSIS:
At the February 18, 2025 City Council Meeting, Council directed staff to move forward with additional community engagement, document the community’s preferred solutions to short-term rental issues, and return with ordinance frameworks. Over the following four months, staff carried out that directive through an internet survey and community forum at City Hall. This report gives a brief overview of short-term rentals, followed by detailing the engagement process, presents findings, and explains how those findings shaped the recommended moderate framework.
Short-Term rentals
Short-term rentals (STRs) refer to the practice of renting out a residence for fewer than 30 consecutive days, a model increasingly popularized by online platforms like Airbnb and VRBO. STRs can bring tourism dollars, supplement homeowner income, and contribute to local revenue through the Transient Occupancy Tax (TOT). However, the rise of STRs also raises concerns about neighborhood disruptions, such as noise, parking shortages, improper trash disposal, and reducing the availability of long-term housing.
Given that much of the City is in the California Coastal Zone (map included as Attachment A), the regulation of STRs would need to account for the California Coastal Act and the City’s Local Coastal Program (LCP). The California Coastal Commission (CCC) has consistently expressed a preference for balanced STR policies that preserve coastal access for visitors. Complete bans or severe restrictions on STRs in the Coastal Zone often face scrutiny or opposition from the CCC unless backed by compelling justifications Agenda Item No. 17 Page 1 of 21 CC Agenda 08-18-2025
Short-Term Rental Regulatory Options
August 18, 2025
tied to community welfare and resource protection. Any ordinance that substantially affects STRs in the Coastal Zone would require review and approval from the CCC.
Currently, the City does not have regulations restricting short-term rentals in the Municipal Code. There are currently 14 confirmed STRs located within the City that have previously reported and paid TOTs amounting to $24,000 - $29,000 annually. There are approximately 100 units that have been issued business licenses, which could potentially be STRs. However, some likely serve as long-term rentals, since the City does not require license holders to specify the type of rental when applying. At the time of writing this report, there are currently 46 listings on Airbnb and 12 listings on Vrbo available in Port Hueneme, with the majority of the listings being located within the Coastal Zone. This indicates that there may be several short-term rentals operating without paying TOT.
According to an Airbnb representative, the typical listing was booked for 5 nights per month in 2023 in the City.
Coastal Commission Considerations
Because the Coastal Commission’s mandate is to protect and enhance public access to the California coast, cities must consider coastal access when implementing new policies for visitor-serving uses like STRs. Recent Coastal Commission guidance underscores that any local regulation of STRs in the Coastal Zone should preserve visitor access and address legitimate community concerns in a measured fashion. Potential regulations often require a Local Coastal Program amendment, which requires the Coastal Commission review to ensure consistency with the Coastal Act.
The Coastal Commission has historically supported regulations that limit the total number of vacation rentals allowed within certain areas, such as by neighborhood or according to a communitywide ratio. In addition, they have advocated for restricting the types of housing that can be used as vacation rentals, such as disallowing their use in affordable housing contexts, and placing caps on maximum occupancies as well as on the amount of time a residential unit can be rented out over a given period. The Commission also endorses requirements for 24-hour management or response capabilities, whether onsite or within a specified distance, as well as requirements addressing onsite parking, garbage, and noise. Furthermore, the Commission has called for clear signage that includes 24-hour contact information for management and posts requirements and restrictions within the units, incorporating operational rules and penalties for violations (such as the forfeiture of deposits) into rental agreements. Ensuring payment of transient occupancy tax (TOT) is another key point, along with strong enforcement protocols that include prompt response to complaints and permit revocation for significant or repeated violations of vacation rental requirements. A letter from the Coastal Commission regarding their viewpoints on STRs is included as Attachment B.
Based on the pre-existing coastal development rule, an HOA regulating short term rentals in the coastal zone requires a Coastal Development Permit (CDP), but if there is evidence that the rule existed before the effective date of the Coastal Act and that it conformed with all applicable laws and ordinances at the time, no CDP would be required. However, any changes to the rule after January 1, 1977 would require a CDP. If an HOA in the coastal zone desired to create new CC&Rs to ban STRs, it would be unlikely that the Coastal Agenda Item No. 17 Page 2 of 21 CC Agenda 08-18-2025
Short-Term Rental Regulatory Options
August 18, 2025
Commission would approve the new CDP based on their stance of preserving coastal access.
Community Engagement
Based on City Council direction, staff launched an online survey which ran from March 24, 2025 to May 16, 2025 to engage with the community. The link appeared on the City’s homepage, in social media posts, and in the City’s monthly newsletter, which resulted in 203 individual responses to the survey. Results from the Survey are included as Attachment B.
Following the closure of the survey, staff hosted a short-term rental community forum at City Hall on June 25, 2025, which was well attended with active engagement from the attendees. The community forum began with a presentation of the survey results, followed by a question-and-answer session with the community, which yielding fourteen questions/comments from residents representing coastal HOAs, small gated complexes, compliant hosts who already remit TOT, and residents living adjacent to suspected STRs.
The feedback received was consistent to the online survey, with one perceived difference being a heightened concern for a concentration of STRs in a single location compared to the survey results.
For the survey, respondents could select multiple roles; counts included 176 homeowners, 19 renters, 11 short-term rental operators, 12 business owners, and 7 vacationers. Residency status tallied 144 full-time residents, 37 part-time residents, and 19 non-residents. A separate neighborhood prompt collected 187 location entries, with coastal neighborhoods most frequently cited as their place of residence.
What residents see in their neighborhoods
When asked about the perceived effect of short-term rentals in their neighborhood, 83 respondents said mostly negative, 53 said both positive and negative, 46 said mostly positive, and 18 reported no impact. These counts translate to approximately 42 percent negative, 27 percent mixed, 23 percent positive, and 9 percent no impact out of 200 total responses to that question.
Perceived scale varies by area. To the question “How many short-term rentals are you aware of in your neighborhood?” 66 answered one to five, 27 answered six to ten, 24 answered more than ten, 44 answered none, and 40 were unsure. That distribution indicates that about one third of respondents observe at least one to five nearby rentals, while roughly one in five either see none or are unsure.
What problems the community most wants solved
Concern patterns in the survey and the forum focused on daily livability: parking congestion, trash overflow and bin misuse, noise, the lack of a timely response from the property owner or manager, and the loss of neighborhood feeling. These emerged as the most frequently selected concern categories and in which over 50 percent of respondents selected concerned in the questionnaire and were echoed repeatedly in spoken comments at the forum.
Agenda Item No. 17 Page 3 of 21 CC Agenda 08-18-2025
Short-Term Rental Regulatory Options
August 18, 2025
Where and how short-term rentals should be allowed
Respondents favored allowing short-term rentals in single-family homes most strongly, with 119 selecting that option, followed by 93 for multifamily, and 74 for commercial areas; 30 checked “other.” These were multi-select responses, indicating many see a place for rentals in more than one housing type.
On whether short-term rentals should require a City permit and pay taxes similarly to hotels, 108 strongly agreed and 30 agreed, with 26 neutral, 18 disagreeing, and 21 strongly disagreeing. In total, 138 of 203 responses expressed agreement, approximately 68 percent.
When asked about a minimum-stay rule, in general, 89 strongly agreed and 33 agreed, with 26 neutral, 31 disagreeing, and 23 strongly disagreeing. When asked to choose a specific minimum, 56 picked one night, 56 picked three nights, 35 picked seven nights, and 51 picked ten or more nights. On seasonal rules, 154 opposed seasonal variation and preferred a single year-round standard, while 44 supported some seasonal adjustment.
Regarding accountability, 124 strongly agreed and 42 agreed that a responsible caretaker should be available at all times, with only 14 total disagreeing. This confirms broad support for a posted 24-hour local contact with defined response expectations. This was further confirmed at the community forum as a main point of concern for the community.
On limits to annual nights, a majority opposed caps on nights per unit: 113 selected “no limit,” while 51 preferred a maximum of 90 nights, 19 preferred 120 nights, and 12 preferred 180 nights. On spacing, 109 preferred no minimum distance between units, while 61 chose 400 feet, 18 chose 200 feet, and 5 chose 100 feet. On a citywide cap, the top single choice was “up to 10 percent of properties” with 82 selections, followed by “no limit” with 69; 23 selected 20 percent, 10 selected 30 percent, and 9 selected more than 30 percent.
Moderate regulatory framework
Generally, feedback indicated moderate, reasonable regulation is desired. A moderate framework is built around “good neighbor” requirements and the five day-to-day issues that residents most want addressed. It adds an annual STR permit on top of the business license and remitting TOT, while setting clear operating rules and accountability to the property owners so issued are handled quickly without a 24/7 City-run hotline.
Occupancy and hours
• Max two overnight guests per bedroom plus two additional guests, hard cap of ten. • Quiet hours from 10 p.m. to 7 a.m.
Property operations
• Clear trash and bin-placement instructions with compliance to pick up schedules. • At least one off-street parking space per rented bedroom.
Complaint handling and response (no 24/7 City hotline)
• Operator or designated local manager is the primary 24-hour contact.
Agenda Item No. 17 Page 4 of 21 CC Agenda 08-18-2025
Short-Term Rental Regulatory Options
August 18, 2025
• Acknowledge complaints within 15 minutes during quiet hours and 30 minutes at other times.
• If needed, arrive on site within 30 minutes during quiet hours and 60 minutes at other times.
Posting and transparency
• Exterior display of contact information, house rules, and valid City permit number for neighbor reporting.
Supply and spacing
• STR licenses capped at 10% of total units; lottery if applications exceed the cap. • One Night minimum stay requirements, reflecting split survey preference between one night and three nights.
• Optional minimum distance between STRs to prevent clustering; survey leaned against it, but community forum expressed more concern in favor.
Fees and administration
• Annual permit fee of $995 to fund staff time for STR administration/compliance and online monitoring, while keeping participation affordable enough to discourage illegal operations.
Enforcement, complaint handling, staffing, and funding
Escalating administrative citation fees would be included, up to revocation of the permit upon a third substantiated violation within twenty-four months or for failure to maintain an effective 24-hour contact. The City will maintain a business-hours complaint line and allow for online complaint submissions via email or the GoHueneme app. The Moderate program is designed to be fee and TOT self-funded with additional staff resources, up to one full time equivalent staff member if the demand necessitates, and an online monitoring subscription.
Coastal Commission pathway and phasing
The California Coastal Commission has repeatedly supported reasonable regulation that preserves visitor access while addressing real impacts. The Moderate package keeps access intact and focuses on enforceable operating rules, which staff anticipates will be supported by the Coastal Commission as the program would consist of regulatory measures they have previously approved.
STR Monitoring
City staff has communicated with HdL Companies, who currently handles the TOT tax collection for the City. Based on the current contract with HdL, they will monitor major STR rental platforms to identify properties and help bring them into compliance with proper TOT procedures. If Council desires to proceed with STR regulations, they will help to ensure that properties obtain the correct licensing and pay proper taxes. They currently estimate there are roughly 40-55 active STRs within City limits. Additionally, community members will also be able to send City staff information regarding unauthorized STRs so that they may be further investigated and brought to compliance.
STR Regulatory Options from Nearby Cities
Many nearby cities have implemented STR regulations, including those with properties in the Coastal Zone. Because of their proximity and size, we have highlighted key aspects Agenda Item No. 17 Page 5 of 21 CC Agenda 08-18-2025
Short-Term Rental Regulatory Options
August 18, 2025
of the STR regulations for the City of Oxnard, the City of Ventura, and the City of Carpinteria which were used to guide the recommended moderate framework for Port Hueneme.
City of Oxnard
• Permit System: Operators must obtain a Short-Term Rental Permit and Business License each year. All new STR applications are required to submit a payment of $1,595. This fee covers the registration process, including both Phase 1 and Phase 2, as well as mailing costs. If the property does not qualify for an STR permit based on separation or neighborhood cap requirements, the application fee will be fully refunded. The Annual Renewal Fee is $1,214.25, which includes the renewal processing fee and mailing fee. The renewal fee does not include the Business License fee.
• Transient Occupancy Tax (TOT): The City imposes a 10% TOT. Owners must register with the City’s finance department, collect TOT from guests, and remit it on a monthly basis.
• Vacation Rental Permit Cap: The number of vacation rental permits is limited to 10% in the Residential Beach Front zone (R-BF) and limited to a 5% cap per the Neighborhood Map in the General Plan in the rest of the city. STRs must be rented for a minimum of three consecutive nights and may be rented for up to 100 rental days per calendar year.
• Occupancy & “Good Neighbor” Rules: Oxnard generally limits overnight occupancy to two guests per bedroom plus two additional guests, with a maximum of 10 total guests. Operators must maintain sufficient off-street parking (one space for a single bedroom and two or more spaces for two or more bedrooms) and are subject to quiet hours (10:00 PM–7:00 AM).
• Local Notification: The operator must notify adjacent neighbors of the STR, supply the City with a 24-hour contact number, and post an emergency contact sign onsite.
County of Ventura
• Permit System: To operate a short-term rental, the applicant must obtain a Temporary Rental Unit (TRU) permit from the Ventura County Resource Management Agency. The annual permit fee is $1,195. Additionally, there is a compliance monitoring deposit fee of $500 for STRs and $100 for homeshares.
The Code Compliance division will review your application and may conduct inspections to ensure compliance with county regulations. The TRU permit pricing does not include the Business License fee.
• TOT Collection: Ventura County charges an 8% TOT to STRs within the unincorporated areas of the county. The county requires timely submission of TOT on a quarterly basis.
Agenda Item No. 17 Page 6 of 21 CC Agenda 08-18-2025
Short-Term Rental Regulatory Options
August 18, 2025
• Host Presence & Types of Rentals: The County distinguishes between homeshare rentals where the owner resides on the property and rents out a portion of their home. Short-Term Rentals are where the entire dwelling is rented out and the owner is not required to be present.
• Operational Standards: Homeshare operations are limited to a maximum of two bedrooms for rental, with overnight occupancy capped at five guests. STRs are limited to five bedrooms, with overnight occupancy limited to two persons per bedroom plus two additional persons, up to a maximum of 10 guests. Quiet hours are enforced between 10:00 p.m. and 7:00 a.m., during which no outdoor amplified music is allowed. Adequate waste collection facilities must be provided at all times.
On-site parking requirements vary based on the type of rental and number of bedrooms: a studio or single-bedroom short-term rental requires one parking space, homeshares and STRs with two to four bedrooms require two, and homeshares and STRs with five bedrooms require three.
• Parties or Celebrations: Unlike other cities, the County does allow a renter to book a homestay or STR for a celebration. In both the Non-Coastal Zone and Coastal Zone, the use of the unit is limited by the occupancy and noise standards.
Occupancy standards vary based on the number of bedrooms, however, in no case can more than 11 people (including the owners) be present on a homeshare property or no more than 16 people on a STR property at one time. • Notifications and Postings: Operators are required to provide a Nuisance Response Plan and post contact information on-site to address complaints.
Property managers or owners must respond to complaints within 30 minutes (or 15 minutes during quiet hours). The County may conduct inspections to ensure compliance with all regulations.
• Penalties: Violations can result in citations, and repeat offenses risk license revocation.
City of Ventura
• Permit System: Short-Term Vacation Rentals (STVRs) applicants pay an initial inspection fee of $168 to the City. After payment is processed and upon passing the inspection, the applicant must then pay any remaining fees, including a variable business license fee and a $974 STRV permit fee. The business license must be renewed annually, however, the STRV permit does not need to be renewed. • Vacation Rental Permit Cap: Ventura divided the city into different areas with the following SVTR permit limits. A maximum of 100 rental permits downtown and 100 in the Pierpont area. The Ventura Harbor and Keys will have up to 35 and the area around Ventura Avenue 40. Permits in the midtown and eastside areas will total
75. Rentals must be a minimum of seven nights beginning the second Friday in June and continuing to the last Friday in August of each year. At all other times the owner may rent a minimum stay of two nights no more than once in any consecutive seven-day period.
Agenda Item No. 17 Page 7 of 21 CC Agenda 08-18-2025
Short-Term Rental Regulatory Options
August 18, 2025
• TOT Collection: The city collects a 10% TOT from STR operators. Ventura requires timely submission of TOT along with periodic reporting of rental activity. Ventura recently approved an annual minimum TOT of $1,000.
• Host Presence & Types of Rentals: Ventura distinguishes between “home-stay” rentals (where the owner remains on-site) and “whole-home” rentals (where the owner is off-site). Home-stays are allowed throughout the City, whereas wholehome rentals have additional location and licensing conditions. • Operational Standards: Ventura’s regulations allow two overnight guests per bedroom, capped at ten total occupants. Operators must provide a minimum of one off-street parking space per bedroom. Large events like weddings, parties, or commercial gatherings are prohibited. Quiet hours typically begin at 9:00 PM, and owners must post house rules visibly inside the unit.
• Notification & Inspections: STR owners must notify neighbors within a 300-foot radius. The City conducts both scheduled and random inspections to verify compliance, particularly in areas heavily impacted by tourism. • Penalties: Violations can result in citations and repeat offenses may result in permit suspension of revocation.
City of Carpinteria
• Permit System: The initial application fee for a Short-term Rental License is $390, which includes the base tax fee and a State-mandated Disability Access Fee of $4. The annual renewal of an existing Short-term Rental License will be $80. There is no separate fee for the Registration Certificate issued with the Short-term Rental License.
• Zoning Overlay & Licensing: STRs are generally permitted only within a Vacation Zone Overlay District (VRCD) concentrated near the beach. Operators in this overlay must obtain a Short-Term Rental License, renewed annually. Outside the overlay, STRs are prohibited.
• Vacation Rental Overlay District: The City divides the VRCD into four areas, each of which has an annual cap for STR licenses. The cap of licenses for all four areas combined is 218.
• TOT Collection: The city collects a 12% TOT from STR operators. Carpinteria requires timely submission of TOT on a quarterly basis. • Host Presence & Types of Rentals: Carpinteria distinguishes between “home-stay” rentals (where the owner remains on-site) and “whole-home” rentals (where the owner is off-site). Home-stays are allowed throughout the City, whereas wholehome rentals have additional location and licensing conditions. • Occupancy & Parking: The City caps occupancy at two adults per bedroom, typically not exceeding eight guests in total. Operators must provide at least one off-street parking space to minimize curbside congestion.
Agenda Item No. 17 Page 8 of 21 CC Agenda 08-18-2025
Short-Term Rental Regulatory Options
August 18, 2025
• Neighborhood Notification & Posting: Owners must notify neighbors within 500 feet, keep a guest log for City review, and post a visible placard with emergency contact information.
• Enforcement & Fines: Violations can result in citations, and repeat offenses risk license revocation. Carpinteria’s Code Enforcement Division frequently checks listings for unauthorized rentals outside the overlay.
FISCAL IMPACT:
The Moderate STR framework is intended to be cost neutral based on an annual STR permit fee and Transient Occupancy Tax receipts and are expected to offset the additional staff time and resources required to administer permitting, compliance review, complaint intake during business hours, enforcement, and online monitoring tools. No General Fund expenditure is anticipated under the recommended fee.
STRATEGIC PLAN:
Primary Strategic Pillar(s) and Initiative(s):
Optimal Levels of Service for Residents and Businesses
• Increase communication, outreach and proactive engagement of all members of our population
Strategic Partnerships
• Establish a mechanism for engagement, information sharing, dialogue and ongoing cooperative decision-making with key stakeholders ATTACHMENTS:
A. Map of California Coastal Zone Boundary
B. Survey Results
Agenda Item No. 17 Page 9 of 21 CC Agenda 08-18-2025
This Page Intentionally Left Blank
Agenda Item No. 17 Page 10 of 21 CC Agenda 08-18-2025
Coastal Zone Boundary
• Surfside 1,2,3,4
• Surfside Village
• Pacific Collection
• Bungalows
• Pacific Collection
• Hemlock-Victoria
• Marina-Victoria
• Hueneme Shores
• Shell Harbor
• Harbor Villages
• Marlborough/Seaside
• Anacapa View Beach homes
• Anacapa View Condos
• Hideaway
• Beachport cottages
• Beachport Villas
• Portside Homes
• Willow brook area
• Areas west of Ventura Road &
South of Pleasant Valley
• Areas South of Hueneme Road
• Areas around Civic Center
City of Port Hueneme Communities within the Coastal Zone Attachment A
Agenda Item No. 17 Page 11 of 21 CC Agenda 08-18-2025
This Page Intentionally Left Blank
Agenda Item No. 17 Page 12 of 21 CC Agenda 08-18-2025
Responses Overview Closed
1. Please select the option that best describes your role: (Choose all that apply)
2. Please select the option that best describes your role: (Choose all that apply) Responses
203
Average Time
08:04
Duration
60 Homeowner 176
Renter 19
Vacationer/Visitor in Port Hueneme 7
Short-Term Rental Operator 11
Full-time Port Hueneme Resident 144
Part-time Port Hueneme Resident 37
Non-resident of Port Hueneme 19
Business owner in Port Hueneme 12
Days
Attachment B
Agenda Item No. 17 Page 13 of 21 CC Agenda 08-18-2025
3. Please indicate the neighborhood or area in Port Hueneme where you reside or manage your short-t erm rental:
187
Responses
Latest Responses
"Anacapa view"
"Surfside"
"Surfside III"
. . .
4. How many short-term rentals are you aware of in your neighborhood? 32 respondents (17%) answered Anacapa view for this question.
Anacapa view
Beach Homes
view beach Surfside III
Hueneme Beach
Port Hueneme
Hueneme Rd
Hueneme Bay Surfside Village View Homes
beach condos Beach House
Beach Park
Hideaway at Beach View Condo
surfside lll
Homes Association
Anacapa-Surfside
Surfside and hueneme
access to the beach
None 44
1-5 66
6-10 27
More than 10 24
Unknown 40
Agenda Item No. 17 Page 14 of 21 CC Agenda 08-18-2025
5. How do you perceive the presence of short-term rentals in your neighborhood?
6. Short-term rentals should be permitted in the following locations (select all that apply):
They have a positive impact 46
They positive and negative impacts 53
They have a negative impact 83
They have no impact 18
Single-family homes 119
Multifamily (including apartments and duplexes) 93
Commercial areas 74
Other 30
Agenda Item No. 17 Page 15 of 21 CC Agenda 08-18-2025
7. Short-term rentals should be required to obtain a permit and pay taxes similar to hotels:
8. Short-term rentals should have a minimum night stay requirement:
Strongly Agree 108
Agree 30
Neutral 26
Disagree 18
Strongly disagree 21
Strongly Agree 89
Agree 33
Neutral 26
Disagree 31
Strongly disagree 23
Agenda Item No. 17 Page 16 of 21 CC Agenda 08-18-2025
9. What is the minimum number of nights a Short-term rental should be rented out for (minimum stay r equirement)?
10. Should there be seasonal adjustments to the minimum rental duration? 1 Night 56
3 Nights 56
7 Nights 35
10 or More Nights 51
Yes, longer duration during peak tourist season 35
Yes, Shorter during off-season 9
No, keep consistent year-round 154
Agenda Item No. 17 Page 17 of 21 CC Agenda 08-18-2025
11. Short-term rental properties should have a responsible caretaker available at all times:
12. Should a Short-term rental property be limited to a maximum number of rentals per year? Strongly Agree 124
Agree 42
Neutral 21
Disagree 9
Strongly disagree 5
No, there should not be a limit 113
STRs should not be rented more than 90 nights per
year
51 STRs should not be rented more than 120 nights per
year
19 STRs should not be rented more than 180 nights per
year
12 Agenda Item No. 17 Page 18 of 21 CC Agenda 08-18-2025
13. What minimum distance should there be between Short-term rentals?
14. Should there be a limit on the number of properties allowed to operate as a Short-term rental? No minimum distance required 109
100 feet apart 5
200 feet apart 18
400 feet apart 61
No limit 69
Up to 10% of properties 82
Up to 20% of properties 23
Up to 30% of properties 10
More than 30% of properties 9
Agenda Item No. 17 Page 19 of 21 CC Agenda 08-18-2025
15. Do you have any concerns regarding Short-term rentals in your neighborhood? Concerned Somewhat Concerned Not Concerned
Noise
Parking
Traffic
Lack of a timely response from owner/management company Trash/dumping
Reduction in amount of available housing
Trespassing/invasion of privacy
Impacts on roads and infrastructure
Loss of neighborhood feeling/familiarity
Not sure who to call or how to report an issue
Agenda Item No. 17 Page 20 of 21 CC Agenda 08-18-2025
16. Please provide any additional feedback, concerns, or suggestions. 93 Responses
Latest Responses
"Started as short term rental tenants and now semi-permane…" "The owner I deal with is very responsible and the complex’s…" . . .
42 respondents (45%) answered term rentals for this question. term rentals
short term
community
city
str
people
owners
Port hueneme
term renters
Longer term
property owners
local community
rental properties
rental housing
rentals in my neighborhood
shorter the rental
rentals or our city
rentals in our HOA
Airbnb rental
rental units
Agenda Item No. 17 Page 21 of 21 CC Agenda 08-18-2025
DATE: August 18, 2025
TO: Honorable City Council
FROM: James Vega, City Manager
Fred Camarillo, Public Works Director
Ashley Chaparro, Finance Director
SUBJECT: AUTHORIZATION TO AWARD CONTRACT FOR UTILITY RATE STUDY RECOMMENDATION:
It is recommended that the City Council authorize the City Manager to enter into a contract with Willdan Financial Services, to conduct a Water, Wastewater, and Solid Waste rate study to analyze the rates associated with each city utility and provide recommendations regarding rates for future City Council consideration.
BACKGROUND/ANALYSIS:
On December 2, 2024, Council authorized staff to solicit proposals for a utility rate study for each of the Enterprise Funds. The goal of the rate study is to ensure fees and charges are distributed in a fair and equitable manner and adequate to ensure the continued fiscal health of the Solid Waste, Water, and Wastewater funds into the future. This does not necessarily translate into across-the-board rate increases, nor is it a foregone conclusion that any rates will increase, although that may be an outcome based on the analysis results. The purpose of pursuing an analysis of the City’s enterprise rates, is to avoid negative cash positions and ensure the enterprise operations are self-sustaining.
Proposals were posted May 2, 2025, with a due date of June 9, 2025. Four proposals were submitted to the City. A selection committee (comprised of the Public Works Director, Finance Director, and City Manager) reviewed the proposals based on the consultant’s understanding of the project, the technical approach to developing the rate study, the firm’s capability to handle the project, and cost, which was considered after rating the firms based upon their respective qualifications. It is recommended Willdan Financial Services perform this work due to its project approach (which lays out project methodology step by step, recognizes the importance of involving staff, policy makers, and the public in this process), provides a clear understanding of the City’s objectives for a rate study, and clearly presents the company’s technical competence, and its considerable experience in the area of rate studies.
Agenda Item No. 18 Page 1 of 39 CC Agenda 08-18-2025
Award Rate Study Contract
August 18, 2025
Involvement of policy makers and the public, along with clear communication between all parties involved, is an important component of any rate study and is necessary to obtain community support and understanding of any proposed changes. During this rate study there will be opportunities scheduled, such as Council workshops, and other public education activities to allow for input from concerned parties.
The city has not conducted current studies for the utility enterprise funds. The industry standard is to perform comprehensive rate studies every three to five years. The Wastewater and Solid Waste rate studies were completed in 2009 or 15 years ago. The Water utility study was more recent and was completed in 2019. Costs that the City pays related to these services have increased and it is appropriate to analyze these costs and determine if adjustments are needed for the cost of providing these utilities.
Water Utility - The last rate study for the Water Utility was completed in December 2019.
The study provided water rate recommendations for 5 years or for fiscal years 2020 – 2024. Water purchase costs have continued to increase, and the increases are being absorbed by the water fund. Concurrently, the Water Master Plan is also being finalized and will have updated project recommendations along with engineers estimates of cost.
As of June 30, 2026, the Water Utility fund balance is estimated to be $16.1 million but is anticipated to be declining on an annual basis due to water purchase costs increasing steadily.
Wastewater Utility –The last study was conducted in 2009. The study provided with proposed wastewater rates for the years of 2010 through 2013. Since 2013, the wastewater enterprise fund has not conducted a study or increased rates. With no rate increase since 2013, it is likely that rates have fallen behind the cost of providing the service. As of June 30, 2026, the Wastewater Utility fund balance is estimated to be $3.3 million. A rate study is necessary to restore financial stability and keep up with the cost of providing this service.
Solid Waste Utility –The last study conducted for solid waste was completed in 2009. The rate study provided proposed solid waste rates for four years or for the years 2010 to 2014. Since 2014, the solid waste rates have not been increased or adjusted to reflect the increases in cost of providing the service. As of June 30, 2026, the Solid Waste fund balance is estimated at $1.9 million. A rate study is necessary to ensure financial stability and keep up with the cost of providing this service.
It is anticipated a Notice to Proceed will be issued in September 2025. To allow time for data collection, model development, workshops, Council presentations, and/or other public involvement activities, the rate study is anticipated to be finalized in Spring of 2026.
FISCAL IMPACT:
The total cost for this contract is a $76,145 base amount, plus a $15,000 (20%) contingency. Sufficient funding has been budgeted in each of the enterprise funds’ FY25- 26 operating budget.
Agenda Item No. 18 Page 2 of 39 CC Agenda 08-18-2025
Award Rate Study Contract
August 18, 2025
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, and funding, for all City functions • Increase communication, outreach and proactive engagement of all members of our population
ATTACHMENTS:
A. Willdan Financial Services Proposal
Agenda Item No. 18 Page 3 of 39 CC Agenda 08-18-2025
This Page Intentionally Left Blank
Agenda Item No. 18 Page 4 of 39 CC Agenda 08-18-2025
Comprehensive Utility Rate Study i
City of Port Hueneme, CA Table of Contents
Cover Letter ........................................................................................................................................................... ii Company and Staff Information ................................................................................................................. 1 Firm Profile .............................................................................................................................................. 1 Background Experience ......................................................................................................................... 2 Proposed Project Team .......................................................................................................................... 4 Staffing Capacity ..................................................................................................................................... 4 Resumes .................................................................................................................................................. 4 Chris Fisher .............................................................................................................................................. 5 Jeffrey McGarvey ..................................................................................................................................... 7 Michael Cronan ........................................................................................................................................ 8 Tiffany Sturms, MSA ................................................................................................................................ 9 Work Plan ............................................................................................................................................................. 10 City of Port Hueneme Background and Project Understanding ...................................................... 10 Project Approach .................................................................................................................................. 12 Project Methodology ............................................................................................................................. 13 Scope of Work ....................................................................................................................................... 17 Project Disclaimer ................................................................................................................................. 23 Project Management and Quality Assurance/Control Approach .................................................... 24 Project Timeline .................................................................................................................................... 26 References ............................................................................................................................................................. 1 Utility Rate Project Experience .............................................................................................................. 3 Insurance ............................................................................................................................................................... 4 Compensation ...................................................................................................................................................... 5 Water, Wastewater, and Solid Waste Rate Study ................................................................................ 5 Notes......................................................................................................................................................... 5 Hourly Rates ............................................................................................................................................ 6 Attachment A
Agenda Item No. 18 Page 5 of 39 CC Agenda 08-18-2025
T 951.587.3500 800.755.6864 | F 951.587.3510 888.326.6864 | 27368 Via Industria, Suite 200, Temecula, CA 92590 | www.willdan.com ii Cover Letter
June 9, 2025
Mr. Fred Camarillo
Public Works Director
City of Port Hueneme
250 N Ventura Rd
Port Hueneme, CA 93041
Re: Proposal to Conduct a Comprehensive Utility Rate Study for the City of Port Hueneme Dear Mr. Camarillo:
Willdan Financial Services (“Willdan”) is pleased to submit the following proposal to conduct a Water, Wastewater, & Solid Waste Rate Study on behalf of the City of Port Hueneme (“City”). We are excited at this opportunity to work with the City and possess extensive experience in all three areas of work requested by the City that ensures we are able to address the objectives identified in the RFP for this study. Team members assigned to the project team all have combined experience in water, wastewater and solid waste rate studies, and would work collectively on the three phases of the overall project, allowing for a seamless and cost-effective project approach.
Willdan has worked with several cities recently where rates had not been increased for a period of years – longer than the typical five-year rate cycle. In some cases, increases were delayed during the period of the pandemic, in others they were delayed for political or other reasons. Most of these situations resulted in greater rate increases than otherwise might have been necessary. This recent direct experience highlights our understanding of how to present results and recommendations with an emphasis on clearly explaining the underlying reasons to elected officials and other stakeholders, and just as importantly, with sensitivity to the impacts on utility customers.
Willdan’s interactive approach will result in a customized Excel financial model, that the City will retain, and a focused and tailored analysis of the City’s current rates, revenues, capital project and operational expenditures, debt commitments, reserve funding, and other financial data. The culmination of our analysis will be a comprehensive financial management plan that develops projected system operating results for the next ten (10) fiscal years, and suggested rates for up to five (5) years. We will employ our proven interactive approach, supported with advanced financial modeling techniques, to develop a sophisticated and flexible financial model to help us guide the City through operating and financial scenarios, evaluate the impact of policy assumptions, and perform sensitivity analysis on utility rates and financial strategies.
Our ability to focus on the financial aspects of operating publicly owned utility systems is coupled with recognized leadership in strategic planning and operations and enables us to bring unmatched value to our clients. Our team brings a set of nationally recognized qualifications and experts that sets us apart. These qualifications include:
Unique Approach — Our approach to the development of utility rates has been carefully honed over the years. We will work collaboratively with City staff to carefully assess and understand the City’s unique utility system concerns and issues, clarify goals and objectives for the study, and develop a tailored approach that will best serve your needs. We do not use a “cookie-cutter” approach, but rather bring a combination of planning and financial expertise providing a thorough understanding of utility operations and management.
A key to our approach is the use of a sophisticated and dynamic model and dashboard that allows us to quickly evaluate alternatives resulting from changes in assumptions and input variables, to address different policy and financial objectives. This allows us to work collaboratively and transparently, to provide comprehensive business solutions. Our objective is to educate and inform throughout the process, not just at the completion of the project.
Recent Experience with Cities and Projects with Same Objectives as Port Hueneme — Willdan has worked recently with numerous cities on utility rate studies with objectives that closely mirror those outlined by the City and discussed above – analyzing the current financial plan for the utility, understanding the impact of capital projects and changing operations, and ensuring sufficient and stable funding for ongoing and projected needs. Also, as mentioned above, we have recently worked with cities to address longer than typical lags in rate increases, similar to the circumstance faced by Port Hueneme, particularly for the wastewater and solid waste utilities. We recently completed successful comprehensive studies for the Cities of Dinuba, Farmersville, Fillmore, Lakeport, Grover Beach, McFarland, the McKinleyville Community Services District, and are currently working with the Cities of Buellton, Hemet, La Palma, Vacaville, and Guadalupe, with objectives and experience that relate closely to the goals of the City’s proposed study.
Agenda Item No. 18 Page 6 of 39 CC Agenda 08-18-2025
Mr. Fred Camarillo, Public Works Director
City of Port Hueneme
Proposal to Conduct a Comprehensive Utility Rate Study
June 9, 2025 | Page iii
Unmatched Experience Developing and Implementing Utility Rates — Willdan is nationally recognized for its expertise in developing and implementing utility system financial planning, rate, and impact fee studies, and has extensive experience in California implementing Proposition 218 compliant rate structures.
Communicating the Results — Sound technical analysis is only one element of this process. It will be equally important to effectively communicate results and implications of the proposed rate structure to City staff, City Council, key stakeholders, and ultimately to those that will be subject to new rates.
Most of our projects incorporate significant community and/or stakeholder involvement and education efforts, and our experienced consultants are able to communicate complicated technical analysis in a manner that is easy to follow and understand.
The intuitive setup of our financial models allows Willdan to discuss and present critical information in a way that maximizes engagement and facilitates outreach. Our reports and presentations provide a solid understanding of the project and the rationale behind the development of the rates.
I, Chris Fisher, will serve as the primary contact person for this proposal; as an officer of the firm, I am authorized to negotiate and bind Willdan Financial Services. Provided in the table below is our legal name and contact information.
Willdan Financial Services
Proposal Contact
Chris Fisher Vice President / Director
27368 Via Industria, Suite 200 | Temecula, CA 92590
Tel#: (951) 587-3500 | Email: [email protected]
Willdan maintains exceptional experience in utility cost of service and rate design and is excited about this opportunity to use our skills and expertise to serve the City of Port Hueneme once again.
Sincerely,
WILLDAN FINANCIAL SERVICES
Chris Fisher
Vice President / Director
Agenda Item No. 18 Page 7 of 39 CC Agenda 08-18-2025
Comprehensive Utility Rate Study 1
City of Port Hueneme, CA
Company and Staff Information
Firm Profile
Willdan Group, Inc. (WGI), was founded in 1964 as an
engineering firm working with local governments. Today, WGI is a publicly traded company (WLDN). WGI, through
its divisions, provides professional technical and consulting services that ensure the quality, value and security of our nation’s infrastructure, systems, facilities, and
environment. The firm has pursued two primary service
objectives since its inception—ensuring the success of its clients and enhancing its communities.
A financially stable company, Willdan has approximately 1,700 employees working in more than 50 offices across
the U.S. Our employees include a number of nationally
recognized Subject Matter Experts for all areas related to the broadest definition of connected communities—four of whom are committed to contribute their expertise
throughout the duration of the City of Port Hueneme’s
Comprehensive Rate Study engagement.
We have solved economic, engineering and energy
challenges for local communities and delivered industryleading solutions that have transformed government and commerce. Today, Willdan is leading our clients into a
future accelerated by a change in resources, infrastructure, technology, regulations, and industry trends.
Willdan Financial Services
Willdan Financial Services, a California Corporation, is an operating division within Willdan Group, Inc. Willdan Financial Services, established on June 24, 1988, is a national firm and one of the largest public sector economic and financial analysis consulting firms in the United States. Since that time, we have helped over 800 public agencies successfully address a broad range of infrastructure challenges.
Our staff of 80 full-time employees support our clients by conducting year-round workshops and on-site training to assist them in keeping current with the latest developments in our areas of expertise. Willdan assists local public agencies by providing the following services:
Willdan Financial Services
Services Provided ▪ Utility rate and cost of service studies; ▪ User fee studies; ▪ Cost allocation plan studies; ▪ Real estate economic analysis; ▪ Municipal advisory services; ▪ District administration services; ▪ Property tax audits; ▪ Economic development strategic plans; ▪ Development impact fee establishment and analysis; ▪ Tax increment finance district formation and amendment; ▪ Feasibility studies; ▪ Housing development and implementation strategies; ▪ Arbitrage and continuing disclosure services; ▪ Debt issuance support; and ▪ Long-term financial plans and cash flow modeling.
Agenda Item No. 18 Page 8 of 39 CC Agenda 08-18-2025
Comprehensive Utility Rate Study 2
City of Port Hueneme, CA
Background Experience
For over two decades, Willdan team members have provided professional consulting services, which entail financial planning; rate and cost-of-service studies including wholesale analysis; alternative and feasibility analyses; and operational and management studies for water, reclaimed water, sewer, solid waste, and stormwater utility clients across the United States.
Willdan team members are involved with the development of the rate-setting methodologies set forth in the American Water Works Association (AWWA) M1 manual “Principles of Water Rates, Fees and Charges,” and the AWWA M29 manual, “Water Utility Capital Financing.” Willdan is nationally recognized for its expertise with team members frequently being called upon to speak or instruct on utility financial matters, as subject matter experts, including at the AWWA Utility Management conference.
We are also deeply familiar with the procedural and substantive requirements of Proposition 218. Willdan staff (including Mr. Fisher, proposed as the principal-in-charge/project manager for this engagement) speak regularly to California industry groups such as the California Special Districts Association (CSDA) and the California Society of Municipal Finance Offices (CSMFO). Further, we recently completed a water and wastewater study for the City of Lakeport where the same team proposed for this engagement worked closely with a leading Proposition 218 law firm in the state to update their tiered water rate structure to be compliant with the requirements of Proposition 218 and the City of San Juan Capistrano decision. We will bring this recent experience and insight to the City of Port Hueneme. Willdan team members are experienced in a broad range of utility planning services and therefore understand the importance of an approach that integrates elements of utility planning, engineering, and finance. Willdan team members possess considerable experience in utility rate and cost-of-service studies and have performed these services for hundreds of utilities throughout the country. Our team includes staff with public sector experience spanning 30 years, and staff on the forefront of utility ratemaking and rate-modeling. In addition, team members have held positions as finance directors, deputy city managers, and auditors, and therefore understand the financial, operational, and political realities faced by governmental staff and management; we develop solutions that take these realities into account.
Willdan Financial Services
Utility Experience and Expertise ▪ Retail and wholesale rate studies ▪ Revenue sufficiency analyses ▪ Utility management and policy assistance ▪ Connection fee / tap fee studies ▪ Miscellaneous fee and charge studies ▪ Renewal and replacement sufficiency analyses ▪ Comprehensive alternatives analyses ▪ Capital project funding studies ▪ Interactive rate model development with dashboards
showing key performance indicators ▪ CIP financial scenario planning ▪ Rate ordinance drafting ▪ Billing system validation/rate testing ▪ Bond feasibility reports ▪ Valuation/divestiture studies ▪ Life Cycle Costs Analyses Willdan will work with the City to identify and prioritize operational and fiscal objectives, and match these to specific rate attributes; and use this information throughout the engagement to develop a comprehensive financial plan and design utility rates that effectively meet these goals. The culmination of our analyses will be rate policies that guide the rate setting process, and a financial management plan that develops projected system operating results for the utility for the forecasted period. Willdan will employ its proven interactive approach, coupled with advanced financial modeling techniques to design rates and a financial plan that meet established goals and performance criteria. These modeling techniques serve as a powerful decisionmaking tool and provide the City with genuine business solutions and recommendations as to the strategic direction of its utilities.
During rate and financial planning projects we employ tools and techniques which focus on consensus building among stakeholders to ensure the team understands the future financial implications of current management decisions. Our extensive project expertise is bolstered by our unique interactive financial planning process and model.
At present Mr. Kevin Burnett,
a Willdan Principal Consultant,
is involved in the current update
to the M1 manual.
Agenda Item No. 18 Page 9 of 39 CC Agenda 08-18-2025
Comprehensive Utility Rate Study 3
City of Port Hueneme, CA
Organizational Chart
The organization chart located below denotes the reporting structure of Willdan Financial Services.
Slate of Officers
Willdan Financial Services
Slate of Officers
Michael Bieber – Willdan Group President & CEOMark J. Risco President and CEO
Creighton K. Early
Chief Financial Officer
Chris Fisher - Vice President/Group Director Gladys Medina - Vice President/Group Director Dan Jackson - Vice President Jeff McGarvey - Vice President Jason Gray - Vice President Kate Nguyen - Secretary Rebekah Smith - Assistant Secretary Engagement Office
Willdan’s Financial Consulting Services group is composed of a team of over 20 senior-level professional consultants.
Three subject matter experts have been assigned to the City of Port Huemene engagement, which will be conducted from the Temecula headquarters.
City of Port Hueneme
Engagement Office
27368 Via Industria, Suite 200 | Temecula, CA 92590
Tel#: (951) 587-3500 | Email: [email protected]
Agenda Item No. 18 Page 10 of 39 CC Agenda 08-18-2025
Comprehensive Utility Rate Study 4
City of Port Hueneme, CA
Proposed Project Team
Our management and supervision of the project team is very simple: fill every position with experienced, capable personnel in sufficient numbers to deliver a superior product to the City, on time and on budget. With that philosophy in mind, we have selected the following professionals for this engagement. We are confident that our team possesses the depth of experience that will successfully fulfill your desired work performance.
City of Port Hueneme
Project Team
Key Team Member Project Role Responsibility to the Engagement Chris Fisher
Vice President/Director
Principal-in-Charge /
Project Manager ▪ Project and task oversight; ▪ Produce key elements of the analysis; ▪ Responsible for project deliverables; ▪ Model development; ▪ Stakeholder Outreach; and ▪ Meeting and presentation attendance.
Jeffrey McGarvey
Managing Principal
Quality Assurance/
Technical Advisor ▪ Quality assurance & control; ▪ Technical guidance; and ▪ Report evaluation.
Michael Cronan
Project Manager
Lead Consultant ▪ Collect, interpret, and analyze key data; ▪ Produce key elements of the analysis; ▪ Lead for model development and analysis; ▪ Report preparation; and ▪ Meeting and presentation attendance.
Tiffany Sturms, MSA
Senior Financial Analyst
Project Analyst ▪ Collect, coordinate, interpret, and analyze key data; ▪ Assistance with model development; and ▪ Report preparation.
Staffing Capacity
Mr. Chris Fisher has been assigned to serve as the City’s representative; and has been selected for this role due to his extensive experience, which includes the preparation and supervision of numerous utility rate studies, as well as his experience presenting to governing bodies, stakeholders, and industry groups.
Resumes
Resumes for Willdan’s project team are presented on the following pages.
It is important to note that
Mr. Fisher has been with Willdan
for 26 years, ensuring the City of
Port Hueneme of continuity and
dedication in staffing during the
completion of the project.
Agenda Item No. 18 Page 11 of 39 CC Agenda 08-18-2025
Comprehensive Utility Rate Study 5
City of Port Hueneme, CA
Chris Fisher
Principal-in-Charge/Project Manager
Mr. Chris Fisher has been selected to serve as the principal-in-charge and project manager of the City’s engagement, due to his experience managing multi-disciplinary teams. He also possesses extensive knowledge specific to Proposition 218 compliance.
Mr. Fisher is a Willdan Financial Services Vice President and Financial Consulting Services Director.
With 26 years at Willdan, he has managed an array of financial consulting projects for public agencies throughout California, Arizona, Texas, Colorado, and Florida; coordinating the activities of resources within Willdan, as well as those from other firms working on these projects.
Select Relevant Experience
City of La Palma, CA — Water and Wastewater Utility Rate Study: Mr. Fisher served as the Project Manager for the City of La Palma’s last two water and wastewater utility rate studies. Both studies included a five-year model and financial plan that included a proposed five-year schedule of adjusted rates to ensure continued revenue sufficiency and stability.
City of Lomita, CA — Water Rate Study: Mr. Fisher was the assigned principal-in-charge for the City’s Water Rate Study. The study included detailed capital plan analysis, reserve analysis, and live evaluation of alternatives to mitigate necessary revenue and rate adjustments with a rate subcommittee as well as the City Council.
City of Calexico, CA — Water & Sewer Utility Rate Study: Mr. Fisher served in the role of principalin-charge of the City’s comprehensive water and sewer rate study. He led the development of the financial plan and model, and the rate analysis, and participated in the presentation of results to City Staff and the City Council. His responsibilities also included the scheduling of key meetings and deliverables, review of progress throughout the development of the project, and quality control.
Town of Apple Valley, CA — Wastewater Rate Study: Mr. Fisher oversaw a comprehensive wastewater rate study for the Town. The study encompassed the preparation of a financial plan and rate model, and a thorough review and update of the Town’s rate structure. The Town had seen significant scrutiny of its water rates, so it wanted to be sure the wastewater rates and the report were thorough and defensible. The Town uses an EDU based rate structure, which Willdan evaluated and adjusted where necessary. This engagement also included comparison of current and proposed rates, and rates of similar agencies. Mr. Fisher provided technical assistance throughout this project, including the preparation of the rate report. The analytical portion of the project is complete and pending the completion of the Proposition 218 approval process.
City of McFarland, CA — Water, Sewer, and Solid Waste Rate Study and Cost Allocation Plan:
In the role of principal-in-charge, Mr. Fisher led the City’s Water, Sewer, and Solid Waste Rate Study and Cost Allocation Plan. Mr. Fisher oversaw the development of a comprehensive model and five year financial plan, required reports and documents, recommended rate updates, and presented results to the City management team and the City Council.
City of Lakeport, CA — Water and Wastewater Fee Study: Mr. Fisher led the engagement for Lakeport in the role of the principal-in-charge. The project included the completion of a comprehensive financial model, with multiple iterations and alternatives to address a situation where the City had not increased rates in several years. He led discussions with staff to outline the options and make adjustments, as necessary. He also worked closely with the City and its legal counsel to update rates and to incorporate tiers while ensuring compliance with Proposition 218 and the San Juan Capistrano Court decision.
City of Grover Beach, CA — Water and Wastewater Rate Study: In the role of principal-in-charge, Mr. Fisher led the City’s utility rate study, which included the preparation of a comprehensive financial plan, along with cost-of-service analysis and development of updated rates. The financial plan prepared contained various options and scenarios for City Staff’s consideration, including shifting from a uniform water rate structure to either a two- or three-tiered structure. The City’s utilities were in relatively good health, so major increases were not recommended.
Education
Bachelor of
Science, Finance;
San Francisco
State University
Areas of Expertise
Multi-disciplinary Team
Management
Special District
Formations
Cost of Service
Studies
Proposition 218
Utility Rate Studies
Affiliations
California Society of
Municipal Finance
Officers
Municipal Management
Association of
Northern California
California Municipal
Treasurers Association
26 Years’ Experience
Agenda Item No. 18 Page 12 of 39 CC Agenda 08-18-2025
Comprehensive Utility Rate Study 6
City of Port Hueneme, CA
City of Claremont, CA — Sewer Rate Study: Mr. Fisher was the principal-in-charge for the City’s sewer rate study. The team generated multiple alternative rate structures for the City in preparation of updating their sewer utility rates and presented them to staff for their consideration.
City of Sebastopol, CA — Water and Wastewater Rate Study: Mr. Fisher led the City of Sebastopol engagement in the role of the principal-in-charge. The objective of the study was to update water and wastewater rates to address capital needs for both utilities, and ensure rates provided adequate funding for ongoing operations and maintenance. Project work included development of a comprehensive financial model and preparation of rate scenarios for evaluation by staff and the City Council. Mr. Fisher and the project team presented the results to the City Council and instructed staff on the use of the model.
City of Guadalupe, CA — Water and Sewer Utility Rate Study: Mr. Fisher served as the principalin-charge for the City’s recent water and sewer rate study, providing technical assistance throughout the project, conducting working discussions with City Staff to evaluate financial and rate options, and coordinating the project. He oversaw the development of the comprehensive financial plan, and preparation of rate alternatives and analysis. This engagement included the development of a comprehensive financial model and updated water and sewer rates, including identification of the rates of comparable jurisdictions and a comparative rate and cost analysis.
City of Richmond, CA — Wastewater Rate Study: Mr. Fisher led the City of Richmond engagement as the principal-in-charge. The objective of the study was to prepare a comprehensive financial plan and updated wastewater rates to address funding for capital and operating needs. The effort included development of a comprehensive financial model and report, and preparation of rate scenarios, including revised scenarios to address the impacts of the COVID pandemic, for evaluation by staff and the City Council. Mr. Fisher and the project team presented the results to the City Council, whereby rate increases were approved.
McKinleyville Community Services District, CA — Water and Wastewater Capacity Fee Study:
Mr. Fisher served as principal-in-charge of this project. The prior connection fees had not been updated for a number of years and were relatively low in comparison to similar agencies. In addition, there were several new local development projects in the planning stages requiring the District to provide utility services; placing even greater demand upon existing facilities and possibly requiring expansion of existing facilities, or construction of new ones. Willdan worked with staff to compile a list of proposed capital improvements and their estimated cost and conducted an analysis of existing and proposed development within the District’s service boundaries.
City of Twentynine Palms, CA — Sewer Treatment Facility Fair Share and Sewer Rate Analysis:
Mr. Fisher served as the Principal-in-Charge/Project Manager on the City of Twentynine Palms’ sewer treatment facility fair share analysis. The purpose of this analysis was to develop an allocation of costs associated with the completion of a wastewater treatment plant (and other related costs) project, in the downtown area of the City, as well as the development of specialized sewer rates who will be served by the new treatment plant. We developed a model and numerous scenarios for evaluation by the City, and presented results to the City Council.
C. Fisher
Resume Continued
Agenda Item No. 18 Page 13 of 39 CC Agenda 08-18-2025
Comprehensive Utility Rate Study 7
City of Port Hueneme, CA
Education
Bachelor of Science,
Finance, University
of Central Florida
Areas of Expertise
Alternatives Analysis
Strategic Planning
Rate Studies
Cost of Service
Studies
Revenue Bonds
Feasibility Analyses
Capital Funding
Acquisitions
Valuation Analyses
Affiliations
American Water
Works Association
The Water
Environment
Federation
The Utility
Management
Conference
The WateReuse
Foundation
32 Years’ Experience
Jeffrey McGarvey
Technical Advisor/Quality Control
Mr. Jeffrey McGarvey is a Managing Principal and Vice President in Willdan’s Financial Consulting Services group. For 32 years he has provided professional consulting services to municipal water, wastewater, solid waste, electric, and natural gas utilities throughout the country. He possesses a broad range of municipal utility systems’ experience, including special expertise in complex alternatives analyses; utility rate analyses; utility valuations and acquisitions; regionalization and consolidation studies; debt issuance support, such as the preparation of financial feasibility analyses associated with revenue bond issuance; capital financing analyses; strategic planning; rate and regulatory assistance; and instituting financial mechanisms to provide the sufficient recovery of operating and capital costs.
Select Relevant Experience
McKinleyville Community Services District, CA — Water and Wastewater Capacity Fee Study:
Mr. McGarvey provided technical support, as well as quality assurance/quality control, to this engagement. The prior connection fees had not been updated for a number of years and were relatively low in comparison to similar agencies. In addition, there were several new local development projects in the planning stages requiring the District to provide utility services; placing even greater demand upon existing facilities and possibly requiring expansion of existing facilities, or construction of new ones. Willdan worked with staff to compile a list of proposed capital improvements and their estimated cost and conducted an analysis of existing and proposed development within the District boundaries. Finally, the team analyzed existing demand on the current utility systems and calculated remaining capacity in order to develop fair and equitable capacity fees.
City of Atwater, CA — Solid Waste Rate Study: Mr. McGarvey was the lead technical consultant for the completion of this recent study for the City. He led the development of the analysis and model, served as the solid waste technical expert, prepared study documents and presentations, and presented study results to City Staff and the City Council.
City of Claremont — Sanitation Rate Study: Mr. McGarvey was the lead technical consultant for the completion of this study for the City. He led the development of the analysis and model, served as the solid waste technical expert, prepared study documents and presentations, and presented study results to City Staff and the City Council.
City of Crescent City, CA — Water and Wastewater Rate and Capacity Fee Analysis: Willdan completed a water and wastewater rate and capacity fee analysis for the City of Crescent. The utility rates and fees calculated by Willdan will provide sufficient revenue to cover the repayment of a State Revolving Fund loan secured by the City to finance the costs of construction, ensure adequate funding for repair and periodic maintenance of the new and existing facilities, for ongoing operations, and routine maintenance. Mr. McGarvey provided technical guidance specific to the analysis of the water and wastewater financial models.
City of Flagstaff, AZ — Water, Wastewater and Reclaimed Water Rate Study: Mr. McGarvey served as the technical advisor of the City of Flagstaff’s utility rate analysis. In the wake of six water main breaks, the City was faced with decreasing revenues and increasing capital and operational costs. The proposed rates developed by Willdan reversed the City’s trajectory of a falling operating reserve and provide the City with sufficient revenue to cover existing and future operations, maintenance, and debt service; all while being financially prudent and responsive to the concerns of the City’s Water Commission. The proposed residential inclining block rate appropriately spreads the burden of increased costs based on a comprehensive analysis of customer demands.
City of Durango, CO — Water and Wastewater Rate Study: Mr. McGarvey led the preparation of a long-term financial plan, cost of service-based rates and updated plant investment fees. The City needs to perform $50 million in improvements to the wastewater treatment plant to comply with State wastewater treatment standards and to provide available capacity for new growth. A balanced financial plan was developed incorporating rate increases and anticipated debt to fully fund requirements and minimize customer impact.
Agenda Item No. 18 Page 14 of 39 CC Agenda 08-18-2025
Comprehensive Utility Rate Study 8
City of Port Hueneme, CA
Education
Bachelor of Arts
and Science;
University of Central
Florida
Areas of Expertise
Utility Rate Studies
User Fee Studies
Financial Forecast
Modeling
8 Years’ Experience
Michael Cronan
Lead Consultant
Mr. Michael Cronan is a project manager with 8 years of experience within Willdan’s Financial Consulting Services group. His primary function is to support project managers and senior analysts with utility rate studies. He specializes in analysis for a variety of clients, including cities, water districts, and public utilities.
Select Relevant Experience
City of Vacaville, CA — Water & Sewer Utility Rate Study: Mr. Cronan is the project manager and led the technical work and development of a comprehensive financial and rate model and multiple alternative financial plans for a Water and Sewer Rate Study for the City of Vacaville. All technical work for the study is concluded, reports have been submitted, the public hearing scheduled and the Prop 218 notices have been mailed. He collected and verified all data, led the development of the financial plan and model, including multiple scenarios to address different potential approaches to the City’s capital plan, prepared the report and participated in all meetings.
City of La Palma, CA — Water and Wastewater Utility Rate Study: Mr. Cronan was assigned to the La Palma engagement as the lead financial analyst. He worked directly with staff at the City to conduct financial analysis, which included the evaluation of alternatives for rate adjustments that incorporated different capital funding scenarios and operating budget assumptions, as well as the preparation of reports and Prop 218 documents. He was also instrumental in the development of the financial model.
City of Guadalupe, CA — Water and Wastewater Rate Study: Mr. Cronan provided analytical support for the City’s utility rate study. He was responsible for gathering and verifying data, as well as assisting with the development of the model. He also worked directly with City Staff to present results and options and develop alternatives.
City of Richmond, CA — Wastewater Rate Study: Mr. Cronan served as the project analyst and provided support for the City’s rate study. He gathered and verified data for the project manager and lead project consultant and played a significant role in the development of the customer database and financial model.
City of Lakeport, CA — Water and Sewer Rate Study: Mr. Cronan provided analytical support to the senior project team members and led the development of the financial model as the project analyst for the City’s ongoing utility rate study. He worked directly with staff at the City to evaluate financial plan alternatives, particularly for sewer where years of deferred rate increases, and a significant capital plan required careful consideration. He also led the revamp of the City’s cost-ofservice approach, working closely with a leading Prop 218 attorney, to ensure rates were compliant with State law.
McKinleyville Community Services District, CA — Water and Sewer Utility Rate Study: Willdan was retained to update the models, develop the CSD’s water and sewer rates and assist with the required Proposition 218 noticing process. Mr. Cronan provided analytical support to the project’s senior team and is providing the same support for the ongoing update to the previous study.
City of Claremont, CA — Sewer Rate Study: Mr. Cronan provided analytical support for the City’s sewer rate study. He gathered and verified data for the project manager and principal consultant.
City of Twentynine Palms, CA — Sewer Treatment Facility Fair Share and Sewer Rate Analysis:
Mr. Cronan provided analytical support in the development of the model to support to the project’s senior team on the City of Twentynine Palms’ sewer treatment facility fair share analysis. This study also included a sewer rate study, specific to the new treatment plant and its customers.
City of Denver, CO — Sanitary Sewer and Storm Drainage Benchmarking and Storm Drainage Impact Fee Study: Mr. Cronan served as the lead analyst on a benchmarking study to review and compare the City’s current rate structures to those of other front range and national utilities. The intent of the study was to identify potential areas for refinement to the City’s current rate structures. Mr.
Cronan also served as the lead analyst for developing and implementing first time storm drainage impact fees for the City.
Agenda Item No. 18 Page 15 of 39 CC Agenda 08-18-2025
Comprehensive Utility Rate Study 9
City of Port Hueneme, CA
Education
Master of Science
Accounting,
Indiana Wesleyan
University
Bachelor of Science,
Accounting,
Indiana Wesleyan
University
Areas of Expertise
Utility Rate Studies
Revenue Bonds
Capital & Financial
Planning
Impact/Connection
Fee Studies
Utility Valuations,
Assessment Programs
Utility Optimization
Services
7 Years’ Experience
Tiffany Sturms, MSA
Project Analyst
Ms. Sturms is a Senior Project Analyst within Willdan's Financial Consulting Services group. Her focal purpose is to assist principal consultants with utility rate and user fee studies, assessments/non-ad valorem studies, and other financial analyses. She is proficient with Microsoft Excel and has implemented vigorous analyses for a diversity of entities, including cities, counties, public service districts and investor-owned utilities.
Ms. Sturms has conducted an eclectic assortment of financial engagements, including credit default swaps (COVID-19 Pandemic, Sovereign Debt Crisis), mutual funds and hedge fund performance and style evaluations, investment strategies, leveraged portfolios, efficient frontier of optimal portfolios, constrained optimization, strategic analysis and recommendations, commercial banks ratio, liabilities/deposits, lending portfolio, non-interest income/expense, risk management, financing, and valuation analyses. Outlined below is Ms. Sturms' relevant and recent project experience.
Select Relevant Experience
Utility Rate Study Experience ▪ City of Calexico, CA (Water & Sewer Rate Study) ▪ City of Hercules, CA (Sewer Rate Study) ▪ City of Hemet, CA (Water & Sewer Rate Study) ▪ City of Buellton, CA (Water & Sewer Rate Study) ▪ City of Guadalupe, CA (Water & Sewer Rate Study) ▪ Bay Laurel Center CDD, FL (Water, Sewer & Reclaimed Rate Study and Misc. Charges) ▪ City of Oviedo, FL (Water, Sewer & Reclaimed Rate Study) ▪ City of Orange Beach, FL (Water & Sewer Rate Study) ▪ City of Ormond Beach, FL (Water & Sewer Rate Study) ▪ Bella Collina CDD, FL (Water & Sewer Rate Study) ▪ City of South Daytona, FL (Water, Sewer & Stormwater Rate Study) ▪ City of DeLand, FL (Stormwater Rate Study) ▪ Starr-Iva Water & Sewer District, SC (Water Rate Study) ▪ City of West Columbia, SC (Water & Sewer Rate Study) ▪ City of Aiken, SC (Water, Sewer & Stormwater Rate Study) ▪ City of Fort Mills, SC (Water & Sewer Rate Study) ▪ City of Brentwood, TN (Water & Sewer Rate Study) ▪ Town of Vienna, VA (Water & Sewer Rate Study) Impact/Capacity Fee Studies ▪ Town of Lake Hamilton, FL (police, transportation, parks, municipal facilities) ▪ City of Gastonia, NC (water and sewer system development fee) ▪ City of Woodruff, SC (sewer system development fee) Assessments ▪ City of North Port, FL (roads and drainage) ▪ City of Oviedo, FL (streetlights) ▪ City of Oviedo, FL (fire) Agenda Item No. 18 Page 16 of 39 CC Agenda 08-18-2025
Comprehensive Utility Rate Study 10
City of Port Hueneme, CA
Work Plan
City of Port Hueneme Background and Project Understanding The following project approach and scope of services is based on Willdan’s current understanding of the City of Port Hueneme’s (“City”) needs for a comprehensive utility rate study. We understand that the City’s primary objective is to ensure that these utilities have rates that provide adequate funding for current and future operations, maintenance, replacement and repair of aging or worn system components, capital projects, and debt service costs, while also establishing and maintaining healthy reserve levels. While this approach and scope is informed by our initial research, we will begin this project by working with the City to enhance our understanding of the City’s current financial situation and objectives through further research and data gathering and detailed discussions regarding your goals and priorities for this study. As outlined below, through our review of City documents we have established an understanding of the City’s utilities, allowing us to engage quickly on work for these important studies.
The last rate studies for the Wastewater and Solid Waste utilities were conducted in 2009, and the most recent Water rate study was completed in 2019, emphasizing the City’s need for a thorough review and realignment of its utility rates in accordance with industry best practices and financial sustainability.
Port Hueneme is a full-service Charter city, located along Ventura County’s Gold Coast with a population of approximately 23,000 residents. Its unique role as home to the Port of Hueneme and Naval Base Ventura County further emphasizes the importance of reliable, well-funded utility systems. Given the City’s compact structure and six-department framework, our team will tailor its efforts to align with internal capacity, ensure close collaboration with staff, and develop solutions that are both technically sound and administratively practical.
The City has approximately 6,000 utility accounts for water and wastewater service. The City relies potable water from the Port Hueneme Water Agency, which consists of groundwater from the United Water Conservation District and imported water from the Calleguas Municipal Water District. The City also has a direct connection to the Oxnard-Hueneme Pipeline and standby groundwater wells that can be used in case of emergency.
Current water rates consist of a fixed charge based on the meter size for all customers, tiered volumetric rates for singlefamily residential customers, and uniform volumetric rates for multi-family residential, commercial and City customers.
The Wastewater Division operates and maintains the City’s five wastewater pump stations and approximately 32 miles of underground wastewater collection system piping, much of which is 50 years old or greater. The primary function of the Wastewater Division is to protect the health and safety of the public, as well as the environment. The City’s system transports sewer flows from the Naval Base Ventura County Construction Battalion Center, Oxnard Harbor District and the City of Port Hueneme. Collected wastewater is conveyed to the regional wastewater treatment facility that is owned and operated by the City of Oxnard for treatment, testing and discharge into the Pacific Ocean.
Wastewater rates consist of a fixed charge for residential customers, a minimum fixed charge and a volumetric charge for three categories of commercial customers and one for schools, based on the strength of their effluent.
Services provided by the Solid Waste Division include trash and recyclables pick up from commercial and residential customers on set schedules throughout the City. Special services are provided for green waste products, bulky items, and construction or large clean-up activities. Rates for residential customers are based on standard service for weekly pickup, with additional charges for added containers, and for commercial customers for standard containers depending on pickup frequency.
The City maintains enterprise funds including: ▪ Water Utility and Water Plant Operations Funds - account for the activities associated with providing water services to the residents of the City. ▪ Wastewater Utility Fund – accounts for the activities associated with maintaining sanitary sewer and storm drain systems within the City. ▪ Solid Waste Utility Fund – accounts for the activities associated with refuse removal within the City.
Agenda Item No. 18 Page 17 of 39 CC Agenda 08-18-2025
Comprehensive Utility Rate Study 11
City of Port Hueneme, CA
In preparing our response to the City’s solicitation, Willdan reviewed the City’s Annual Comprehensive Financial Report (“ACFR”) for each of the funds.
Historically the financial position for the three utilities seems to be healthy. The latest two years of available ACFRs, for the Fiscal Years Ending (FYE) June 30, 2022 and 2023 show positive operating results: ▪ Water - for FYE June 2023, operating revenues were $6.99M, operating expenses were $4.65M, for a positive operating result of $2.35M. The previous year (FYE June 2022) had a positive operating result of $2.63M; ▪ Wastewater - for FYE June 2023, wastewater had operating revenues of $3.63M compared to operating expenses of $2.25M, for a positive operating result of $1.38M. The previous year (FYE June 2022) showed a positive operating result of $415K; ▪ Solid Waste - for FYE June 2023, operating revenues were $4.83M, operating expenses were $2.7M, for a positive operating result of $2.13M. The previous year (FYE June 2022) had a positive result of $430K; The adopted Biennial Budget for Fiscal Years 2023/24 and 2024/25 projects mixed results going forward, along with anticipated capital projects: ▪ Water Operations Fund – revenues and expenses are projected to increase for each of the two years in the budget, with revenues exceeding expenses in both years and positive operating results budgeted; ▪ Water Plant Operations Fund – revenues and expenses are both projected to increase for each of the two years in the budget, but with expenses increasing more than revenues, and modest deficits projected for both years; ▪ Wastewater Fund – revenues and expenses both budgeted to increase, however, expenses are projected to increase at a greater pace, resulting in projected deficits of $426K for FY 2023/24 and $272K FOR FY 2024/25; ▪ Solid Waste – with increased revenues and expenditures the solid waste is projected to have a $467K deficit for 2023/24, but be close to break-even for FY 2024/25;
Days cash on-hand for all three utilities appears strong, based on a review of ACFR statements from 2019 through 2023.
Finally, the budget also outlines capital projects for the water and wastewater utilities: ▪ Water - $5.59 in capital projects for FY 2023/24; the most significant being the Cross Base Waterline project, for $4M; ▪ Wastewater - $1.2M in projects in the FY 2023/24 plan, consisting of a range of pipeline and rehabilitation projects.
The above-mentioned factors necessitate the need for a comprehensive review of the current rates and financial condition of each of the three utilities, and the development of a financial plan for the next five years focused on key the financial objectives. Willdan will develop a comprehensive financial plan that includes provision for: ▪ Sufficient and stable revenue for operations and routine maintenance; ▪ Capital project costs; ▪ Anticipated and routine repair and replacement of existing aging collection infrastructure. ▪ Adequate debt service payments and coverage for existing and proposed future debt; ▪ Accumulation and maintenance of appropriate reserves (i.e., operating reserves for cash flow management, rate stabilization, emergencies, capital reservices, etc.); ▪ Cost increases through the projection period and term of recommended rates; and ▪ Functional cost-of-service analysis consistent with Proposition 218 and industry rate-making standards.
Through this study, we will help the City assess the financial health of each enterprise, identify cost recovery gaps, and develop a clear, equitable, and transparent rate structure that supports long-term infrastructure reinvestment and service delivery goals. Our approach begins with gaining a comprehensive understanding of the City’s operations, capital improvement needs, customer base, and financial position.
We will develop a comprehensive and detailed analysis of the utilities to ensure the rates are able to generate sufficient revenue to meet the needs outlined above. Our approach and model incorporate a robust Capital Plan Analysis to ensure the utilities will be best equipped to address upcoming projects and their funding over the next five years, while maintaining required debt service coverage and appropriate reserve fund balances. Our objective is to provide Staff and the Council with the information it needs to understand water, wastewater, and solid waste utility current and projected financial conditions, understand key drivers behind recommendations, evaluate options for moving forward, and make informed decisions based on this process.
Agenda Item No. 18 Page 18 of 39 CC Agenda 08-18-2025
Comprehensive Utility Rate Study 12
City of Port Hueneme, CA
We will develop a five-year financial plan, model, and schedule of recommended rates and fees, with the financial model extended out to 10 years to provide long-term visibility of financial needs. We will also work with the City to provide a model for their use that can estimate revenue and costs, as well as resulting rate increases, over a longer time horizon, to the best extent possible given limitations in these types of projections and the ability to feasibly model them.
The project will entail three primary phases. The first is the review and evaluation of the previous rate study and development of objectives, development of a comprehensive financial plan for each utility, with projections for the next five years for the purposes of recommending rate adjustments extended out to ten years to provide a longer view of potential utility needs, particularly capital projects.
The purpose of the financial plan is to arrive at the required revenue for each utility, which serves as the basis for recommendations going forward, and the development of updated rates, if necessary. Then, once the results of the financial plan are reviewed with City staff, we will proceed with the cost-of-service analysis and development of rates, and preparation of a report.
This financial plan will serve as the basis for a full cost of service analysis and ultimately the development of recommendations for updated rates. The cost-of-service analysis will be conducted to ensure any new recommended rates comply with the requirements of Proposition 218, Proposition 26 and recent legal decisions.
The financial plan will be created using a highly flexible and interactive model and dashboard that will allow us to work collaboratively with the City to present and evaluate different financial scenarios and quickly make changes in underlying assumptions based on feedback and discussions. Our goal will be to arrive at a financial plan that meets the City’s objectives, and that provides understanding and education to City staff and ultimately the Council, as they make decisions regarding the proposed rates.
Project Approach
The following project approach and scope of services is based on Willdan’s current understanding of the City of Port Hueneme’s needs and objectives for Water, Wastewater, & Solid Waste Rate Study. While this approach and scope is informed by our initial research, we will begin this project by working with the City to complete this research and understanding of the City’s current financial situation and conducting meaningful discussions to more fully understand your objectives and priorities for this study. Our objective is to provide Staff and the City Council with the information it needs to fully understand the utilities current and projected financial condition, evaluate options for moving forward, and make informed decisions based on this process.
The intent of the study is to independently evaluate the City’s current utility rates and develop an updated schedule of rates that are simple, equitable, and most importantly, structured to meet the future financial needs of the utilities. The proposed rate structure must adequately fund the ongoing operating, maintenance and capital improvement needs of the utilities.
For this project it will be critical to take a deeper look at the financial performance of the previous five years and project results forward, taking into account capital projects and anticipated debt, to evaluate the ability of current rates to provide sufficient revenue. We will create a comprehensive financial plan and model that allows us to work with the City to evaluate and test alternatives and demonstrate the impact of capital and reserve funding scenarios and their associated impacts on overall financial performance.
The City wishes to undertake this study to review water and sewer rates from both a policy and analytical standpoint.
Willdan will prepare a comprehensive ten (10) year financial plan and analyses of rate alternatives; evaluate the current rate structure; and determine whether adjustments in the rates are necessary going forward. This analysis will include development of the financial plan and cost of service analysis necessary to arrive at informed recommendations and defensible Prop 218 compliant rates. We will also identify potential challenges and issues associated with implementing new rates, and work with the City to develop strategies to address these.
Div Description GENERAL MANAGER DIVISION
2010 GENERAL MANAGER 2020 COMMUNICATIONS AND PUBLIC AFFAIRS 2030 HUMAN RESOURCES ADMINISTRATIVE SERVICES DIVISION 3010 ADMINISTRATIVE SERVICES 3020 FINANCE & ACCOUNTING 3030 CUSTOMER SERV ICE 3040 OFFICE SUPPORT 3050 PURCHASING 3060 METER OPERATIONS 3070 INFORMATION TECHNOLOGY ENGINEERING & ENVIRONMENTAL SERVICES DIVISION 5010 ENVIRONMENTAL & ENGINEERING SERV ICES ADMINISTRATION 5020 SAFETY 5110 ENGINEERING DESIGN & CONSTRUCTION SUPERVISION 5120 CIVIL & STRUCTURAL DESIGN 5140 CONSTRUCTION MANAGEMENT 5210 OPS SUPERVISION 5220 ENGINEERING PLANNING
5250 WATER SYSTEM OPERATIONS 5310 ENGINEERING SUPPORT SUPERVISION Incorporates City’s data
and account structure
creating transparency
Agenda Item No. 18 Page 19 of 39 CC Agenda 08-18-2025
Comprehensive Utility Rate Study 13
City of Port Hueneme, CA
Project Methodology
As described herein, and detailed in our work plan, our approach to this water and sewer rate study is built around three primary objectives:
Primary Objectives
Working collaboratively with the
City of Port Hueneme to develop the
comprehensive financial plan and
model for the utilities
Using the model to develop and
evaluate various rate, financial and
capital funding scenarios
Arriving at a final plan and set
of recommended rates that
have a clear and transparent
rationale and basis
We propose to conduct this process in a way in which staff and stakeholders gain understanding throughout the process of how the plan is developed, and how policy and financial decisions affect it, so that we can clearly communicate the process and results to the City Council and the community. The communication part of the process is critical in gaining acceptance and understanding of the broader community.
The culmination of the revenue requirements analysis, which will include a capital project financing plan, and cost of service allocations, will be alternative rate plans which will provide sufficient revenue to meet the ongoing funding needs of the system, while recovering costs from customers in a manner which is fair, equitable and within reasonable customer impact parameters.
We will develop a robust 10-year pro forma financial model to demonstrate the results of various analyses and aid detailed policy and education discussions with City staff and City Council. It will serve as the basis for developing rate structures that provide for long-term financial stability, reflect levels of service demand for different customer classes, and comply with the requirements of Proposition 218.
During this project, we will utilize our Microsoft Excel-based model, with its interactive dashboard, as a comprehensive financial tool to allow planning and evaluation of variable inputs and assumptions, thereby creating a thorough analysis of revenue requirements to address the City’s goal of ensuring predictable and stable revenue. This analysis is then seamlessly integrated with the rate development component of the model to demonstrate and project various rate design alternatives, and the effects they would have on the City’s financial outlook. The model is used in meetings, in order to efficiently cycle through rate scenarios and establish the most viable rate plans for the City. During these interactive meetings, we invite City staff to participate in scenario planning / “what-if” sessions, where we use the dashboard to demonstrate and evaluate the financial/rate impact of alternative data (CIP, operating costs, etc.) and assumptions (interest rates, customer growth, cost escalation, etc.) in real-time to focus on the most critical drivers of the analysis. This ensures the resulting rate plan alternatives are viable from a financial, operational, managerial, and political perspective. To the extent revenues are not projected to be sufficient to meet requirements including operating expenses, debt service payments and coverage requirements, planned capital expenditures and targeted operating reserves, the model can be used to evaluate variable outcomes and alternatives, providing basis for meaningful discussions with elected officials and stakeholders well in advance of the actual rate increase process.
Real-Time Financial Modeling
The goal of financial forecasting is to provide clear vision regarding the potential financial outcomes of current
management decisions, or just as importantly, potential decisions. Willdan’s approach helps the City staff mold the existing knowledge base into a viable financial management and capital financing plan.
Any model is only as effective as the expertise of those who develop it; our state-of-the-art financial modeling techniques allow us to incorporate our considerable experience by asking the correct questions, evaluating, and incorporating appropriate data, providing interactive consulting services, and evaluating multiple scenarios with the City in a real-time setting.
0% FY 04 FY 05 FY 06 FY 07 FY 08 D/S Cov-Rcov 2.19 2.36 1.04 1.16 0.84 D/S Cov-Parity NA NA 1.04 NA 0.84 RATE INCR.% 3.0% 3.0% 3.0% 3.0% 3.0% Sample Utility Revenue Sufficiency Analysis Dashboard Rate Revenue Increase Required
3.0% 3.0% 3.0% 3.0% 3.0%
0.0%
10.0%
20.0%
30.0%
Rate Incr 3.0% 3.0% 3.0% 3.0% 3.0%
Last FY 04 FY 05 FY 06 FY 07 FY 08 Working Capital - 20,000,000 40,000,000
60,000,000
80,000,000
100,000,000 Actual 94,509,622 54,544,605 21,300,439 20,421,433 14,244,837 Last Target 20,077,706 20,680,037 21,300,439 21,939,452 22,597,635 FY 04 FY 05 FY 06 FY 07 FY 08 3 Working Capital Tar get (Expr essed as Months of O&M) Capital Projects - 20,000,000
40,000,000
60,000,000
80,000,000
100,000,000CIP 45,000,000 45,000,000 85,000,000 45,000,000 45,000,000 Last FY 04 FY 05 FY 06 FY 07 FY 08 Percent of CIP Spent 100% Debt Funded Capital - 50,000,000
100,000,000
150,000,000CIP - - 97,831,133 - 88,750,000 Last FY 04 FY 05 FY 06 FY 07 FY 08 Yrs to Bundle Debt 2 Rate Revenue Requirements
Financial Planning
Model
Rate Design Model 0% FY 04 FY 05 FY 06 FY 07 FY 08 D/S Cov-Rcov 2.19 2.36 1.04 1.16 0.84 D/S Cov-Parity NA NA 1.04 NA 0.84 RATE INCR.% 3.0% 3.0% 3.0% 3.0% 3.0% Sample Utility Revenue Sufficiency Analysis Dashboard Rate Revenue Increase Required
3.0% 3.0% 3.0% 3.0% 3.0%
0.0%
10.0%
20.0%
30.0%
Rate Incr 3.0% 3.0% 3.0% 3.0% 3.0%
Last FY 04 FY 05 FY 06 FY 07 FY 08 Working Capital - 20,000,000 40,000,000
60,000,000
80,000,000
100,000,000 Actual 94,509,622 54,544,605 21,300,439 20,421,433 14,244,837 Last Target 20,077,706 20,680,037 21,300,439 21,939,452 22,597,635 FY 04 FY 05 FY 06 FY 07 FY 08 3 Working Capital Tar get (Expr essed as Months of O&M) Capital Projects - 20,000,000
40,000,000
60,000,000
80,000,000
100,000,000CIP 45,000,000 45,000,000 85,000,000 45,000,000 45,000,000 Last FY 04 FY 05 FY 06 FY 07 FY 08 Percent of CIP Spent 100% Debt Funded Capital - 50,000,000
100,000,000
150,000,000CIP - - 97,831,133 - 88,750,000 Last FY 04 FY 05 FY 06 FY 07 FY 08 Yrs to Bundle Debt 2 Rate Revenue Requirements
Financial Planning
Model
Rate Design Model
Agenda Item No. 18 Page 20 of 39 CC Agenda 08-18-2025
Comprehensive Utility Rate Study 14
City of Port Hueneme, CA
Because our interactive model will be populated with specific data from the City (i.e., division and account structure), each alternative reviewed in real-time during interactive meetings with the City can be done with a complete understanding of specific customer impacts. Further, our experience ensures that the data loaded into the model is vetted and validated, and that the baseline results from which forecasts are developed are fully understood from the beginning, so that more time is spent on evaluation of potential solutions, rather than questioning whether the underlying data and assumptions are correct.
Model Development as Part of the Consulting Process
The financial planning model will be designed with the following elements: ▪ Graphical dashboard to clearly show the results of various scenarios to the user; ▪ Easily reviewed and modified assumptions; ▪ Validated data tables generated from the City’s financial and operational information; and ▪ A powerful calculation engine.
The model will be “baselined” after an initial meeting with staff to ensure that we have the correct data and a basic understanding of the financial dynamics of your system. We will then conduct interactive financial planning sessions with the City staff.
After validating our data, calculation approach, and baseline assumptions, we will explore alternative scenarios, varying a number of assumptions and financial planning techniques including: ▪ Rate increase magnitude and timing; ▪ Alternative timing of capital projects; ▪ Alternative financing options (alternative combinations of pay-as-you-go, revenue bond debt and other debt, for example); ▪ Alternative growth/demand forecasts and other “what if” analyses such as the impact of a loss of one or more service areas or significant customers; and ▪ Effect of increases in other sources of funds.
Given any combination of cost requirements (both operating and capital), non-rate sources of funds, and forecast assumptions, the Willdan team will work with the City to develop a financial plan that: ▪ Meets specified reserve targets; ▪ Addresses identified benchmarks or key performance indicators; ▪ Fully funds capital expenditures using specified financing techniques; and ▪ Meets legal, policy and contractual requirements that are financially measurable, such as debt service coverage on revenue bonds.
Subsequent to careful development and validation of the baseline forecast, a series of alternative forecasts will be prepared illustrating various results in the following general categories: ▪ What if things turn out differently? These alternatives will demonstrate the sensitivity of the forecast to the significant assumptions used. This results in a sound understanding of areas where a conservative forecast approach is warranted; ▪ What happens when we try this? This series of alternatives focuses on different financial management approaches. For example, the use of different financing techniques such as capitalized interest, interim short-term financing, and capital appreciation bonds may be explored; ▪ What can we do to make it better? This approach to forecasting identifies the factors that may be causing significant rate increases in a given year and explores alternatives. For example, if a large capital project in a single year is the culprit, we would work with staff and the consulting engineers to determine whether this project could be phased or delayed; and ▪ How will any adjustments affect our customers? In examining rate structure alternatives, we will demonstrate and discuss how users in various categories or classifications will be impacted. Our consultants will use our rate design model to explore the impact of various rate structures on bills for each customer class over the relevant consumption range.
Agenda Item No. 18 Page 21 of 39 CC Agenda 08-18-2025
Comprehensive Utility Rate Study 15
City of Port Hueneme, CA
Communication as Part of the Consulting Process
Willdan’s experienced professionals are accustomed to communicating with a variety of stakeholder groups, from management and staff, boards, and commissions, as well as the community. Our analytical and modeling approach will be customized to the City’s specific needs. As mentioned, the custom graphical interfaces imbedded in our models allow our consultants to easily track key performance metrics and work through alternative scenarios with the City staff and management. Features of the Excel-based analysis model include the ability to incorporate line-item data and assumptions that are then summarized in a graphic dashboard to show key financial indicators for the utility systems.
The sample dashboard below illustrates how we can summarize data, assumptions, and calculations into an easy-tounderstand graphical interface that updates with each alternative scenario evaluated. A copy of the final dashboard model will be provided to the City upon completion of the project.
Agenda Item No. 18 Page 22 of 39 CC Agenda 08-18-2025
Comprehensive Utility Rate Study 16
City of Port Hueneme, CA
Rate Study Objectives
The overarching rate study objectives are outlined below.
Rate Setting Process
The graphic below summarizes the standard approach commonly employed to develop utility rates. Willdan’s rate-setting process and model has been developed through the completion of many successful studies over the course of time and continues to be the basis for developing proven, well-balanced financial plans that are supported by equitable rate structures. Willdan’s combination of consulting experience and technical expertise helps distill the complex decisions into a clear and easy-to-understand process. As there are often competing objectives, for a successful rate study it is necessary to understand not only the technical details and corresponding rates, but also the social and political corollaries that can often jeopardize the implementation of a technically sound rate structure. Our rate experience goes beyond simply “running the numbers” by creating numerous scenarios and considering stakeholder considerations, such as customer impact (ability to pay) to ensure a complete and unimpeded rate analysis.
Each step of the three-step approach is typically performed in tandem. Although presented sequentially, the overall analysis is circular – as variables in one analysis may influence another. Thus, it is imperative to constantly review assumptions to determine if variables are fixed (i.e., debt service) or flexible (i.e., consumption or treatment) and monitor how changes in certain variables affect the overall analysis.
Agenda Item No. 18 Page 23 of 39 CC Agenda 08-18-2025
Comprehensive Utility Rate Study 17
City of Port Hueneme, CA
Scope of Work
The following proposed scope of work is intended to capture the goals and objectives of the City, and for brevity outlines the steps and work plans for the water, wastewater, and solid waste utilities. Willdan is confident the following will effectively meet the stated project objectives. A final scope and schedule will be determined following the selection of a consultant and based on further discussions with staff. Willdan’s work plan will culminate in the successful development of water, sewer and solid waste projections and rates for five years, an extended ten-year financial plan, and the education of staff and key stakeholders.
Project Initiation
Task 1.1 – Data Collection and Review
Task 1.1.1 – Data Collection. The City will be provided with an initial list of basic data needed to conduct the study.
The data request may include, but will not be limited to: ▪ Financial and operating data (budgets, audits, financial statements, cash balances, etc.); ▪ Customer account and billing data; ▪ Related reports prepared by others (i.e., Master Plans, UWMP); ▪ System operating data for the utilities; ▪ Capital improvement programs, fixed asset records; ▪ ▪ Bond statements, debt service schedules; ▪ Ordinances, previous rate studies, City codes; and ▪ City financial, debt and reserve policies.
Task 1.1.2 – Data Review. We propose to conduct initial data collection and review prior to the kick-off meeting to allow for a more meaningful discussion to occur. This will allow for our review of data in advance of the meeting so that we can request clarifications or follow-up information, as necessary. However, if the City’s preference is to conduct the kick-off prior to collecting data, we will accommodate that request. The data will be reviewed for completeness and to ensure a sufficient understanding of historical utility operations. The data collection and review process will be ongoing throughout the process as the need for additional information arises.
Task 1.2 – Kick-off Meeting and Planning Discussion
Task 1.2.1 – Project Kick-off. Following initial data collection and review, Willdan will conduct a kick-off meeting with City Staff. During this meeting we will discuss goals and objectives of the study, the schedule, constraints, or challenges that may be encountered, stakeholder considerations and objectives, and political concerns. Discussions may center around the following: ▪ Review of previous rate studies and existing rate structure and areas where existing rates have been successful and/or specific areas of focus; ▪ Review of recent financial performance for the utilities; ▪ Recent developments in tiered rates and effects of legal actions; ▪ Discussion of anticipated significant events (i.e., loss or gain of any major customers); ▪ Components to incorporate into the updated revenue requirements; such as capital improvements, debt repayment, reserves, annual repair and replacement, ongoing maintenance, cost of imported water, etc.; ▪ Conduct a detailed review of the data used in the baseline financial forecast; and ▪ Review and resolve (or develop a plan for resolving) data issues and questions.
For further efficiency and collaboration, the kick-off meeting will include a financial policy discussion. This will serve to address and document the City's financial policies for the utilities to be studied.
Topics of discussion may include: ▪ Rate design approaches and alternatives; ▪ Rate policy objectives; ▪ City financial policies; ▪ Reserve options and target levels (operating, debt services, rate stabilization, repair, and replacement); ▪ Conservation objectives and rate options; ▪ Capital Improvement Plan (CIP) financing options – i.e., PAYGO vs. debt vs. grants; ▪ Customer characteristics and classifications; and ▪ Cost of service factors and Proposition 218.
Agenda Item No. 18 Page 24 of 39 CC Agenda 08-18-2025
Comprehensive Utility Rate Study 18
City of Port Hueneme, CA
Water and Wastewater Rate Study
Task 2.1 – Development of Financial Model and Plan, Revenue Requirements and Rate Determinants The following sub tasks encompass the development of detailed historical customer and system analysis, creation of the comprehensive financial and cost-of-service rate model, formulation of cash flow projections of revenues and expenditures over five- and ten-year periods, and the calculation of the required revenue for the water and wastewater utilities, all of which will serve as the basis for recommendations for updated rates. The financial and rate model will provide detailed and comprehensive projections that will be used in the development of rates over the initial five-year period, and projections extended out to ten years for internal City planning.
Task 2.1.1 – Historical Billing Data Analysis. The data request document will provide instructions for the development of historical customer billing information. It is anticipated that the billing information will be provided in a format necessary to summarize the water and wastewater system accounts and billable flows by customer class for a recent historical period for which audited revenues exist. The customers and flows provide the basis on which operating revenues are derived and are therefore the primary factors utilized in reviewing the user rates and charges. As such, the historical billing data provides an important basis for analyses that will be used to develop assumptions for projecting revenues under existing and/or proposed rates.
Task 2.1.2 – Customer and Flow Projections. The water and wastewater accounts and billable flows will be forecasted for a five-year planning period. Such projections will be developed by considering historical growth trends, peak demands, local economic conditions, potential for adding/losing major utility customers, changes in customer class usage patterns over time, and experienced judgment. The billable flow projections will be based on the projected number of utility accounts and a usage per account analysis to differentiate the historical effects of account growth and increased (decreased) average usage by customer class.
Task 2.1.3 – Projected Revenues Under Existing Rates. Projections of utility system revenues under existing rates for the five-year planning period will be developed for water and sewer, recognizing projected accounts, flow volumes, and usage patterns by customer class (as determined in the billing analysis under the previous tasks).
Task 2.1.4 – Projected Revenue Requirements. Revenue requirements (i.e., system expenditures) will be developed for the utility systems based on an analysis of historical, currently budgeted, and anticipated operating and capital expenditures, with appropriate escalation factors applied. The revenue requirements will be projected on a fiscal year cash flow basis, considering expected operational changes, changes in staffing or operating expenditures for new facilities, system growth occurring from new development, anticipated extraordinary expenses, and allowances for inflation. The projections will include, but not be limited to, the following:
Operation and maintenance expenses;
Direct and indirect costs utilizing the cost allocation model currently in process for the City;
Outlay for annual capital additions and replacements;
Debt service payments and coverage requirements
for existing and anticipated debt;
Funding of adequate and appropriate reserves; and
Other expenditures and transfers.
Task 2.1.5 – Projected Operating Results Based on Existing Rates. The projected revenues and revenue requirements will be summarized into a five and ten-year cash flow statement providing the projected operating results of the water and wastewater systems under the existing
rates.
The cash flow statement will be used to estimate annual adjustments in utility revenues necessary to fund
operating and capital expenditure requirements, meet
existing bond covenant requirements, and maintain
prudent utility management practices. The estimated
timing and magnitude of future debt issues required, if any, to finance proposed capital improvements will also be shown. Concurrent with the development of the
projected operating results, the study will review the
general financial health of the utility operations and, as necessary, make recommendations for changes in fund
balances, reserves, and debt service coverage ratios to maintain financial integrity and a stable bond rating. The graphic demonstrates the general rate study
methodology and major components of the rate process.
Agenda Item No. 18 Page 25 of 39 CC Agenda 08-18-2025
Comprehensive Utility Rate Study 19
City of Port Hueneme, CA
Task 2.2 – Capital Plan Analysis
Task 2.2.1 – Review Capital Improvement Program (CIP) and Asset Replacement Schedules. The City’s existing utility system five-year CIP, master plans, and asset replacement schedules will be reviewed in conjunction with conversations with City Staff. The objective of such a review is to gain an understanding of the types of projects scheduled; the timing associated with such projects, associated expenditure requirements and the sources of funding each project.
Examining the impacts on the financial objectives of the water and wastewater utilities, as well as capital projects associated with rehabilitation and replacement of existing facilities, will be a key objective of not only this task but the entire project. The results of the financial plan will also help the City to prioritize projects identified within the CIP.
Task 2.2.2 – Develop Capital Needs Plan. Based on the findings made in the previous task and the Projected Operating Results described in Task 2.1.5, a plan will be developed to provide for the anticipated capital expenditure activities, including debt issuances, relative to the CIP. Such a plan will include consideration for the use of restricted and unrestricted funds, surplus operating reserves, capital recovery fees, and future rate adjustments. The analysis will also develop a projection of reserve fund balances and level of liquidity.
Task 2.2.3 – Capital Projects Model. The CIP will drive the future funding options and will directly impact rates. Therefore, the rate analysis will incorporate the City’s current five-year CIP.
The rate model will have the ability to run various CIP funding scenarios and quickly show the estimated impact on utility rates.
Since we are not serving as the financial/municipal advisor to the City for this project, we will rely on information relative to proposed debt or financing structures provided by the City or its designated financial/municipal advisor.
Task 2.3 – Cost-of-Service Allocations
Task 2.3.1 – Functional Cost Allocations. The analysis will allocate the Test Year revenue requirement (i.e., costs of providing service) to the various cost/rate components that constitute functional classifications of the types of service provided. The functional cost allocations will evaluate such aspects as fixed costs, customer-related costs and volumetric/usage related costs.
The evaluation of allocation
factors associated with
applicable costs will be based on
existing rate structures applied
by the City, meter size, rate
structures applied by other
comparable utility systems in the region, common industry practice and standard rate-making principals.
Task 2.3.2 – Determination of Revenue Adequacy. Comparisons of revenues under the existing water and wastewater rates with the allocated costs of service will be evaluated in order to determine the degree of cost recovery by the various cost components, and to identify areas that may possibly require adjustments to align the revenues from each rate component with the allocated costs.
Task 2.4 – Rate Analysis and Design
Task 2.4.1 – Evaluation of Existing Rate Structures. The existing rate structures will be further evaluated for their effectiveness in equitably recovering costs of utility service from each customer class. The City’s current rate structure will be evaluated, and recommendations will be made for potential modifications to the current rates.
As part of the rate design process, Willdan will discuss with departmental staff the current trends and philosophies in utility ratemaking. Based on these discussions, the analysis will develop and recommend a rate design and philosophy that best meets the objectives of the City. The analysis model will be developed in a dynamic manner allowing the City to compare alternative annual incremental/phasing adjustments to achieve funding goals.
Agenda Item No. 18 Page 26 of 39 CC Agenda 08-18-2025
Comprehensive Utility Rate Study 20
City of Port Hueneme, CA
Basic standards for rate design accepted by the industry are: ▪ Full Cost Recovery – rate revenue should provide sufficient income so that, when combined with other sources of funds, funding requirements for the system are covered including, all current long-term liabilities, debt obligations and future expansion-related and R&R-related capital needed to replace aging and infrastructure. ▪ Fairness and Equity – based on cost responsibility as reflected in cost-of-service allocations, in accordance with industry standards. ▪ Technically Defensible – apply industry proven standards and methodologies to help shield the City from potential legal challenges associated with the proposed utility rates. ▪ Resource Conservation – under conditions of scarcity, the pricing of water as a commodity should promote voluntary conservation, discourage unnecessary service use and extend the availability of supply. ▪ Administrative Efficiency – rates should be understandable to customers and efficiently administered by staff. ▪ Customer Acceptance – customers understand the rates, view them as fair, and consider them to be reasonable compared to other costs and other utilities. ▪ Public Health and Welfare – rates are structured so that essential service usage is encouraged through affordability.
Task 2.4.2 – Rate Structure Alternatives. The rate model will be developed in a dynamic manner such that the Willdan Team and City Staff will be able to analyze “what if” scenarios detailing the financial impacts under each scenario utilizing an iterative dashboard view. Baseline rate structures will be recommended as required to fund the utility systems and consider annual inflationary indexed adjustments to rates as needed to maintain each utility. We will coordinate with City Staff to ensure suggested rate structures are compatible with the City’s utility billing software.
We will develop and assist the City in evaluating options for drought surcharges for the water utility. These surcharges could be implemented based on requirements of the City’s drought ordinances, to ensure the water utility is still able to generate sufficient revenue to cover its obligations under water restrictions that would likely reduce water sales.
Task 2.4.3 – Projected Operating Results Based on Proposed Rates. The proposed user rates and/or rate structures will be applied to the projected customers and flows in order to estimate the revenues to be generated from the proposed rates for the Test Year and the subsequent years of the projection period. The projected revenues will consider possible elasticity effects associated with changes in usage characteristics that may occur from revising the rate structure.
In addition, similar to the process described in Task 2.1, the five-year forecast will identify annual adjustments in utility system revenues necessary to meet existing bond covenant requirements, prudent management practices, and/or sound capital financing considerations.
Task 2.4.4 – Typical Bill Comparison. Comparisons of typical utility bills under the existing and proposed rates will be developed for each customer class under various levels of usage. The selected customer class usage levels will reflect the results of the billing analysis to better demonstrate rate impacts on typical customer accounts in each class.
Task 2.4.5 – Neighboring Utility Comparison. A comparison will be prepared to assess the difference between existing and proposed rates of the City with those of other comparable municipal utility systems in Ventura County, or reasonable proximity.
Solid Waste Rate Study
The following section outlines the work tasks that will be executed to conduct the solid waste rate study.
Task 3.1 – Develop Revenue Requirements
The first task in conducting the solid waste cost of service analysis will be the development of the annual revenue requirements. This represents the total revenue that the Disposal Enterprise Fund will need to recover during the year to fund expenses associated with the provision of services. Willdan will work with City Staff to select a one-year period that reflects typical operations. We will then review financial data and work with City Staff to make adjustments to costs in order to be representative of a typical year.
Willdan will work with staff to project changes in costs due to inflation, salary increases, new equipment, new customers, etc. The result will be a five-year revenue requirement forecast. Utility 1 Existing Rates Utility 2 Utility 3 Utility 4 Proposed Rates Utility 5 Utility 6 Utility 7 Utility 8 Utility 9 Utility 10 Utility 11 Utility 12 $0.00
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
$70.00 Comparison With Other Utility Systems 6,000 Gallons Per Month Average of Other Utilities Agenda Item No. 18 Page 27 of 39 CC Agenda 08-18-2025
Comprehensive Utility Rate Study 21
City of Port Hueneme, CA
Task 3.2 – Allocate Costs to Service Categories
Following the development of the revenue requirements, Willdan will assign and allocate costs to various service categories. The service categories represent the primary services provided by the Disposal Enterprise Fund.
Willdan will also identify and analyze direct costs within the solid waste utility’s adopted budget. The intent is to capture overhead, personnel, administrative and operational costs to ensure that applicable costs of service are being fully accounted for and are allocated amongst the customer classes in a fair and equitable manner.
Task 3.3 – Allocate Costs to Customer Classes
Once the allocation of costs has been identified by overall service categories, Willdan will group the service categories based upon the customer classes that will recover each category's costs.
Task 3.4 – Determination of Billing Units
Willdan will identify the appropriate billing units for each customer class, incorporating existing policies and formulas as appropriate, to ensure the updated rates provide sufficient cost recovery and follow the cost-of-service principles of Proposition 218. Since the City’s disposal fund also maintains the street sweeping and alley maintenance programs, the recommended rate structure will ensure these programs remain viable.
Preparation of Reports and Proposition 218 Assistance
Task 4.1 – Reports, Model and Deliverables
Task 4.1.1 – Preliminary Draft Report. A draft report will be developed to address study findings and proposed recommendations. Contents will also include assumptions relied upon for the projection of customers and usage characteristics, revenue requirements, revenues, operating results, the cost recovery profile for each class, the results of the fully allocated cost of service analyses and any proposed adjustments to the utility rates. Upon completion, an electronic PDF copy and ten copies of the draft report will be provided to staff for review. The report and presentations will also include a comparison of the City’s current and proposed water and wastewater rates with five other public agencies.
Task 4.1.2 – Final Report. Based on comments received from staff and other participants during the presentation of the Preliminary Draft Report, the Final Report will be revised to incorporate the agreed upon changes. Upon completion, an electronic PDF copy and two (2) copies of the Final Rate Study Report will be provided to the City.
Task 4.1.3 – Rate Model. The financial rate model developed through the course of this study of both utilities, including the interactive dashboard, will be provided to the City for its unrestricted use. Our model is developed using Excel and will not contain any proprietary components. We will provide guidance and education on the use of the model, including how to incorporate updated financial information and data, such as budgets, fund balances, capital plans and cost escalators, and see the results and impacts on projected future rates. To the best extent possible and feasible, given limitations in long-term projections and the ability to effectively model them, we will work with the City to evaluate which factors to incorporate into the model, to allow the ability to develop projections over an extended 30 year timeline.
Task 4.2 – Proposition 218 Notice Preparation Assistance Task 4.2.1 – Proposition 218 Notices. We understand that the City intends to coordinate the printing and mailing of the required Prop 218 notice, however, based on our over 26-year history with Proposition 218 compliance, we can assist with the development of the notices by providing or assisting with notice content that will explain: ▪ The purpose of the rates; ▪ The reason for the increases; ▪ How the rates are structured; ▪ The date, time, and place of the public hearing; and ▪ Details on what constitutes the existence of a majority protest, as it relates to the implementation of a new/increased utility rate structure.
Agenda Item No. 18 Page 28 of 39 CC Agenda 08-18-2025
Comprehensive Utility Rate Study 22
City of Port Hueneme, CA
Communicating Results - Presentations & Meetings
Task 5.1 – Meetings and Presentations
Task 5.1.1 – Project Kick-Off. As detailed in Task 1.2, a kick-off meeting will be scheduled with City Staff at the start of the project to discuss project requirements, finalize project scheduling/milestones and reporting requirements, and receive overall project direction. This discussion will provide the opportunity to review current utility rates, fees, charges, issues, and deficiencies with staff.
Task 5.1.2 – Project Progress Web Conferences. During the project, and prior to meetings with the City Council, team web conferences will be scheduled to present the progression of the analysis to staff in order to obtain input and feedback associated with any rate adjustments that may be presented. These web meetings will assist in the completion of rate design for the utility systems and guide the development of the draft report.
Task 5.1.3 – Public Outreach. As necessary, we will work with City Staff to develop a public outreach strategy, should communications beyond the Proposition 218 notice be required.
Task 5.1.4 – Draft Financial Plan Meeting. The results of the Preliminary Financial Plan and Revenue Requirements will be presented to staff for comment, feedback, and direction. We have also included provision for one (1) meeting with the City Council for a workshop, if necessary, prior to the presentation of the Final Report and setting of the Public Hearing date, and virtual 1 by 1 or 2 by 2 meetings with the Council if needed.
Task 5.1.5 – Draft Study/Final Report Meeting/Public Hearing. The draft report will be reviewed with City Staff to discuss findings and recommendations, gather feedback and address questions, then presented to the City Council. The results of the Final Report will be presented to the City Council during two (2) public City Council meetings, including the Public Hearing required by Proposition 218. Willdan’s project manager will be present to address any questions or concerns raised during the public hearings.
City Staff Support
Willdan recommends that the City of Port Hueneme assign a key individual as a project manager. As our analyses is developed, the City’s appointed project manager will: ▪ Coordinate responses to informational requests; ▪ Coordinate review of work products; and ▪ Identify appropriate staff members for participation in meetings and facilitate in scheduling.
We will ask for responses to initial information, follow-up requests and comments on reports within five business days or otherwise agreed upon timetable. If there are delays, the project manager will follow up with the parties involved to establish an estimated date for the delivery of information and/or feedback.
To ensure continued progression, the project manager will reconvene with the rest of the team to identify tasks that can be started while waiting for requested data.
Agenda Item No. 18 Page 29 of 39 CC Agenda 08-18-2025
Comprehensive Utility Rate Study 23
City of Port Hueneme, CA
Project Disclaimer
The City of Port Hueneme further represents, acknowledges, and agrees that:
(i) The City uses, or may use, the services of one or more municipal advisors registered with the U.S. Securities and Exchange Commission (“SEC”) to advise it in connection with municipal financial products and the issuance of municipal securities;
(ii) The City is not looking to Willdan to provide, and City shall not otherwise request or require Willdan to provide, any advice or recommendations with respect to municipal financial products or the issuance of municipal securities (including any advice or recommendations with respect to the structure, timing, terms, and other similar matters concerning such financial products or issues);
(iii) The provisions of this proposal and the services to be provided hereunder as outlined in the scope of services are not intended (and shall not be construed) to constitute or include any municipal advisory services within the meaning of Section 15B of the U.S. Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the rules and regulations adopted thereunder;
(iv) For the avoidance of doubt and without limiting the foregoing, in connection with any revenue projections, cash-flow analyses, feasibility studies and/or other analyses Willdan may provide the City with respect to financial, economic or other matters relating to a prospective, new or existing issuance of municipal securities of the City, (A) any such projections, studies and analyses shall be based upon assumptions, opinions or views (including, without limitation, any assumptions related to revenue growth) established by the City, in conjunction with such of its municipal, financial, legal and other advisers as it deems appropriate; and (B) under no circumstances shall Willdan be asked to provide, nor shall it provide, any advice or recommendations or subjective assumptions, opinions or views with respect to the actual or proposed structure, terms, timing, pricing or other similar matters with respect to any municipal financial products or municipal securities issuances, including any revisions or amendments thereto; and (v) Notwithstanding all of the foregoing, the City recognizes that interpretive guidance regarding municipal advisory activities is currently quite limited and is likely to evolve and develop during the term of the potential engagement and, to that end, the City will work with Willdan throughout the term of the potential Agreement to ensure that the Agreement and the services to be provided by Willdan hereunder, is interpreted by the parties, and if necessary amended, in a manner intended to ensure that the City is not asking Willdan to provide, and Willdan is not in fact providing or required to provide, any municipal advisory services.
Agenda Item No. 18 Page 30 of 39 CC Agenda 08-18-2025
Comprehensive Utility Rate Study 24
City of Port Hueneme, CA
Project Management and Quality Assurance/Control Approach Project Management
At Willdan, we utilize a Project Management Process/Approach that ensures projects are completed on time, within budget and most importantly yield results that match our clients’ expectations. We will document discussions leading to important policy decisions and/or the choice of critical assumptions used in constructing the analysis and model. Following key stakeholder discussions, we will schedule a call to summarize findings and direction with City staff, to make certain that we are in agreement with stated objectives, and that feedback is incorporated as appropriate. Through the process of providing regular updates and conducting status conference calls, potential issues will be highlighted, discussed, and resolved. Any deviances from the project timeline will be identified and plans will be developed for course corrections. If necessary, changes in approach or strategy will be discussed with City staff, to meet the needs of the City of Port Hueneme. In doing this, we will ensure the project stays on track and evolves, based upon current thinking and outside dynamics.
Project Management
Define the
Project Plan the Project Manage the
Project
Review the
Project
Communicate
the Project ▪ Identify the project
scope, set
objectives, list
potential constraints,
document
assumptions. ▪ Define a course of
action and develop
an effective
communication plan. ▪ Provide a forum for
applying the team’s
collective expertise
to solving difficult
analytical issues that
arise in complex
projects.
▪ Collaborate with the
project team and
client staff and
agree upon timeline
to meet the
estimated project
timeline. ▪ Assign workload
functions to
appropriately
qualified staff to
ensure milestones
are met, on time. ▪ Pre-schedule quality
control meetings
with project team to
maintain the
progressive motion
of the project.
▪ Manage the
execution of the
project. ▪ Direct existing and
upcoming project
tasks. ▪ Control and monitor
work in progress. ▪ Provide feedback to
client and project
team. ▪ Identify and resolve
deviances from
project timeline.
▪ Review all work
product and
deliverables. ▪ Utilize structured
quality assurance
process involving
up to three levels
of review at the
peer level, project
manager level. ▪ Procure executive
officer level
review.
▪ Communicate with
the client regarding
work status and
progress. ▪ Ensure client is in
receipt of regular
status updates. ▪ Schedule regular
conference calls to
touch base. ▪ Inform client of
roadblocks, work
outside of projected
scope.
Agenda Item No. 18 Page 31 of 39 CC Agenda 08-18-2025
Comprehensive Utility Rate Study 25
City of Port Hueneme, CA
Quality Assurance / Quality Control Process
Our quality control program is incorporated as a required element of Willdan’s day-to-day activities. There are three levels of reviews incorporated for our deliverables:
1) Peer review;
2) Project Manager review; and
3) Final quality assurance manager
review.
Peer reviews involve one analyst
reviewing the work of another, while
project manager reviews are
conducted prior to delivery to the
quality assurance manager. The
quality assurance manager then
performs a final review. This assures
that our final product has been
thoroughly evaluated for potential
errors; thus, providing quality client
deliverables, and high levels of
integrity and outcomes.
The primary mission of our quality control plan is to provide staff with the technical and managerial expertise to plan, organize, implement, and control the overall quality effort, thereby ensuring the completion of a quality project within the time and budget established.
Quality Assurance Goals
Goal Lead Task
Quality Assurance /
Control Process Chris Fisher ▪ Establish a set of planned and systematic actions for maintaining a high level of quality in the professional services performed; ▪ Emphasize quality in every phase of work; ▪ Ensure efficient use of resources; ▪ Establish a consistent and uniform approach to the services performed; and ▪ Implement appropriate quality control measures for each work task of the project.
Quality Control Plan Chris Fisher
Jeffrey McGarvey ▪ Contract deliverables; ▪ Specific quality control procedures; ▪ Special quality control emphasis; ▪ Budget and manpower requirements; ▪ Overall project schedule and budget; and ▪ Project documentation requirements.
Agenda Item No. 18 Page 32 of 39 CC Agenda 08-18-2025
Comprehensive Utility Rate Study 26 City of Port Hueneme, CA Project Timeline The following outlines the estimated number of weeks to complete each task outlined in our scope of services. A specific project schedule will be developed following consultation with, and in concert with, City staff.
Agenda Item No. 18 Page 33 of 39 CC Agenda 08-18-2025
Comprehensive Utility Rate Study 1
City of Port Hueneme, CA References
Provided below are recent project descriptions, including client contact information, project team, and project hours that are similar in nature to those requested by the City. We are proud of our reputation for customer service and encourage you to contact our past clients regarding our commitment to completing these assignments within the agreed upon project budget and schedules.
City of Vacaville, CA
Water and Wastewater Utility Rate Study
Willdan is in the final stages of a two-year effort with the City of Vacaville to complete a comprehensive water and wastewater rate study. The City hadn’t increased rates for several years and sought guidance and development of alternatives to address a number of financial objectives, including completion of numerous capital projects, and ensuring funding for increasing costs of operation and maintenance for each system and designated reserve funds.
The study included the development of the above-mentioned alternatives that incorporated capital plan and reserve funding analysis for presentation, discussion and evaluation with City staff, and ultimately presentation to elected officials in small workshop sessions to solicit feedback and questions.
Finally, the recommended financial plan and proposed rate adjustments were presented to the City Council. The Public Hearing is scheduled for May 2025. Our work also included the development of all documents and reports, including the creating and executing the mailing of the required Proposition 218 notice.
Client Contact: Justen Cole, Director of Utilities
650 Merchant Street, Vacaville, CA 95688
Tel #: (707) 469-6404 x124 | Email: [email protected] Project Budget: $74,495 Project Dates: May 2022 – Ongoing
City of Farmersville, CA
Water and Wastewater Utility Rate Study
Willdan is currently concluding work on a comprehensive water and wastewater study for the City. The study is complete, the Prop 218 public hearing is scheduled, and notices have been mailed. Our team worked with City Staff to develop an interactive model with financial plans and projections for both utilities and prepare and present scenarios to evaluate budget and financial scenarios. We also worked with the City’s financial advisor and legal counsel to implement a rate stabilization reserve to allow more flexibility in the financial plan and mitigate rate increases. We developed capital funding scenarios and rate structure options and presented them to staff for discussion and evaluation. Once the final financial plan was approved, we completed the cost-of-service analysis and calculated new rates, prepared the rate study report and Prop 218 notice, presented the results to the City Council, and coordinated the mailing of the notice.
Willdan gathered and validated financial data for the project, including budget, fund balances, capital plans, historical financial results, debt service schedules and debt covenants, and financial policy documents. The study also included the cost-of-service analysis, as required under Prop 218, and changes were made to the rate structure as a result.
Client Contact: Steve Huntley, Director of Finance and Administration 909 West Visalia Rd, Farmersville, CA 93223
Tel #: (559) 747-0458 | Email: [email protected] Project Budget: $46,590 Project Dates: April 2023 – January 2024
Agenda Item No. 18 Page 34 of 39 CC Agenda 08-18-2025
Comprehensive Utility Rate Study 2
City of Port Hueneme, CA City of McFarland, CA
Cost Allocation Plan and Utility Rate Study
Willdan worked with the City of McFarland to complete a utility rate study for its water, sewer, and solid waste enterprises along with a cost allocation plan. The study included the development of a comprehensive financial plan and model, and the evaluation of alternatives for funding operations and capital projects, and for recommended rate adjustments. The City had not increased its rates for several years, including the COVID period, and was facing increased costs of operations, needs for additional staffing, and multiple capital projects. We presented numerous alternative scenarios, with adjustments and changes based on feedback from City Staff.
Willdan gathered and validated financial data for the project, including budget, historical financial results, and capital plans, evaluated adjustments to the base water, sewer, and solid waste rate structures, prepared a comprehensive financial model, and presented alternatives and scenarios to City Staff. The updated rates were successfully adopted in December 2023.
Client Contact: Diego Viramontes, Finance Director
401 W. Kern Ave, McFarland, CA 93250
Tel #: (661) 792-3091 | Email: [email protected] Project Budget: $82,595 Project Dates: March 2023 – August 2023
City of Dinuba, CA
Water and Wastewater Utility Rate Study
Willdan worked with the City of Dinuba to complete a utility rate study for its water and wastewater enterprises. The study included the development of a comprehensive financial plan and model, and the evaluation of alternatives for rate adjustments. The City had not increased its rates for several years, including the COVID period, and was facing increased costs of operations, needs for additional staffing, and multiple capital projects. We presented numerous alternative scenarios, with adjustments and changes based on feedback from City Staff.
Willdan gathered and validated financial data for the project, including budget, historical financial results, and capital plans, evaluated adjustments to the base water and wastewater rate structures, prepared a comprehensive financial model, and presented alternatives and scenarios to City Staff. The updated rates were successfully adopted in September 2023.
Client Contact: George Avila, Interim Public Works Director 1088 E. Kamm Avenue, Dinuba, CA 93618
Tel #: (559) 591-5924 | Email: [email protected] Project Budget: $75,410 Project Dates: January 2022 – April 2023
City of Lakeport, CA
Water and Sewer Rate Study
Willdan assisted the City of Lakeport with the development of a water and wastewater utility rate study. The scope of services included development of the financial plan, model, and reports, including the adjustment of the tiered rate structure. The City was in the position of needing potentially significant rate increases, so we worked collaboratively with them throughout the process to evaluate options for the financial plan to address the needs of the utilities, while balancing the impact on ratepayers.
Willdan team members worked closely with the City’s Proposition 218 legal counsel to update the City’s water rate structure while ensuring compliance with the applicable provisions of the California Constitution, as well as the San Juan Capistrano court decision.
Client Contact: Nick Walker, Assistant City Manager, Finance Director 225 Park Street, Lakeport, CA 95453
Tel #: (707) 263-5615 x 301 | Email: [email protected] Project Budget: $44,750
Project Dates: January 2021 – June 2021
Agenda Item No. 18 Page 35 of 39 CC Agenda 08-18-2025
Comprehensive Utility Rate Study 3
City of Port Hueneme, CA Utility Rate Project Experience The abbreviated table of experience below outlines projects that are similar in nature to those requested conducted from the Temecula office in the previous five years.
Willdan Financial Services
Utility Related Experience
Agency Project
City of Albany, CA Sewer Rate Study
City of Arvin, CA Sewer Rate Study and Cost Allocation Plan City of Atwater, CA Solid Waste Rate Study
City of Avenal, CA Water and Sewer Rate Study
City of Bell, CA Sewer Rate Study
City of Blythe, CA Water and Sewer Rate Study
City of Brighton, CO Water Rate Study
City of Buellton, CA Water and Sewer Rate and Connection Fee Study City of Calexico, CA Water and Sewer Rate and Connection Fee Study City of Claremont, CA Sewer Rate Study and Sanitation Rate Study City of Coachella, CA Proposition 218 Sewer Mailing
City of Delano, CA Water, Sanitary Sewer, Solid Waste Utility Rate Study City & County of Denver, CO Sanitary Sewer & Storm Drainage Benchmarking and Storm Drainage Impact Fee Study
City of Dinuba, CA Water, Sewer, & Solid Waste Rate Study City of Durango, CO Water and Wastewater Rate Study
City of Farmersville, CA Water and Wastewater Utility Rate Study City of Fillmore, CA Water and Sewer Rate Study
City of Grover Beach, CA Water, Wastewater, and Stormwater Financial Plan and Utility Rate Study
City of Guadalupe, CA Water and Sewer Rate Study
City of Hemet, CA Water and Sewer Rate Study
City of Hercules, CA Wastewater Financial Plan and Connection Fee Study City of Kingman, AZ Water and Sewer Rate Study
City of La Palma, CA Water and Sewer Rate Study
City of Lakeport, CA Water and Sewer Rate Study, and Connection Fee Study City of Lomita, CA Water Rate Study
City of McFarland, CA Water, Sewer, and Solid Waste Rate Study and Cost Allocation Plan City of Norwalk, CA Water Rate Study
City of Pinole, CA Wastewater Rate and Fee Study
City of Richmond, CA Wastewater Rate Study
City of Seaside, CA Water Rate and Capacity Fee Study
City of Soledad, CA Water Rate Study Consulting Services City of Stanton, CA Sewer Rate and Connection Fee Study City of Tulare, CA Water and Wastewater Rate Study
City of Twentynine Palms, CA Sewer Treatment Facility Fair Share and Sewer Rate Analysis City of Vacaville, CA Water and Wastewater Rate Study
County of San Diego, CA Sewer Rate and Standby Charge Study McKinleyville CSD, CA Water and Wastewater Rate and Capacity Fee Study Town of Apple Valley, CA Sewer Rate and Nexus Study
Town of Gilbert, AZ Water and Sewer Rate Study
Agenda Item No. 18 Page 36 of 39 CC Agenda 08-18-2025
Comprehensive Utility Rate Study 4
City of Port Hueneme, CA
Insurance
Willdan confirms that we will maintain insurance coverage acceptable to the City of Port Hueneme, including professional liability, errors and omissions, and workers' compensation insurance, and will provide evidence of such coverage prior to the commencement of work.
Agenda Item No. 18 Page 37 of 39 CC Agenda 08-18-2025
Comprehensive Utility Rate Study 5
City of Port Hueneme, CA Compensation
Water, Wastewater, and Solid Waste Rate Study
Based on our work plan provided in the scope of services, we propose a total fixed fee of $76,145. The table below provides a breakdown of these fees by task and project team member.
Notes ▪ If the City wishes for Willdan to attend additional in-person meetings, the fee is $1,850 per meeting. ▪ The City will be invoiced on a monthly percentage-completion basis. ▪ Invoices will include a description of services, as well as a summary of costs to date by task. ▪ Willdan will rely on the validity and accuracy of the City’s data and documentation to complete our analysis. Willdan will rely on the data as being accurate without performing an independent verification of accuracy, and that we will not be responsible for any errors that result from inaccurate data provided by the client or a third party. ▪ The City shall reimburse Willdan for any costs Willdan incurs, including without limitation, copying costs, digitizing costs, travel expenses, employee time and attorneys' fees, to respond to the legal process of any governmental agency relating to the City or relating to this project. Reimbursement shall be at Willdan's rates in effect at the time of such response.
Agenda Item No. 18 Page 38 of 39 CC Agenda 08-18-2025
Comprehensive Utility Rate Study 6
City of Port Hueneme, CA Hourly Rates
We will perform additional tasks, outside our scope of services, as requested and authorized by the City for an additional fee. Additional services may be authorized by the City and will be billed at our then-current hourly rates. Our current hourly rates are listed below.
Willdan Financial Services
Hourly Rate Schedule
Position Team Member Hourly Rate Position Team Member Hourly Rate Vice President / Director Chris Fisher $310 Managing Principal Jeffrey McGarvey $300 Principal Consultant $270 Project Manager Michael Cronan $210 Senior Project Analyst Tiffany Sturms $150 Senior Analyst $135 Agenda Item No. 18 Page 39 of 39 CC Agenda 08-18-2025
DATE: August 18, 2025
TO: Honorable City Council
FROM: James Vega, City Manager
SUBJECT: ECONOMIC DEVELOPMENT PLAN
RECOMMENDATION:
It is recommended that City Council receive a presentation on the Economic Development Plan and provide direction to:
1. Proceed with a wayfinding signage and style update project and explore an opportunity with the Port of Hueneme to include the project as a potential Community Benefit Fund project.
2. Prepare a Request for Proposal for Campground/Lodging Operator for Hueneme Beach as identified in the City’s adopted Parks Master Plan to obtain proposals which would be presented to the City Council and the public in the future for consideration.
BACKGROUND/ANALYSIS:
The City’s 2045 General Plan was adopted by the City Council in October 2021. That Plan includes an Economic Development Element which outlines the City’s fundamental challenges to economic expansion and develops related goals. The City utilized contract services for economic development efforts, but progress was limited from 2021 through late 2023.
On September 5, 2023, staff recommended that the City focus its efforts on developing a cohesive plan, and City Council agreed, authorizing staff to send out a Request for Proposals (RFP) to hire a firm to produce a more focused economic development plan.
The City selected PFM Consulting Group, LLC (“PFM”) to prepare the report and perform public outreach as part of the process. A contract between the City and PFM was entered into on December 18, 2023.
Work on the plan began in early 2024. To prepare the plan, PFM reviewed the City’s unique economic context including the City’s relatively small size that contains both the Naval Base Ventura County “NBVC” and Port of Hueneme within the city limits, distance from 101 Freeway, being landlocked and nearly built-out, a lack of functional Chamber of Commerce, aging centers, the City’s cannabis industry, etc. PFM also reviewed the City’s recently adopted General Plan, Parks Master Plan, Strategic Plan and Landscape Design Agenda Item No. 19 Page 1 of 66 CC Agenda 08-18-2025
Economic Development Plan
August 18, 2025