Agenda — Ridgecrest City Council, November 6, 2024

Agendas are available on the City Website
https://www.ridgecrest-ca.gov/council-agendas
Ridgecrest City Council
Successor Redevelopment Agency
Financing Authority
Housing Authority
AGENDA
November 6, 2024
Closed Session 5:30 p.m.

Regular Session 6:00 p.m.

City Hall, Council Chambers
100 100 West California Avenue
Ridgecrest CA 93555
Ricca Charlon, CMC
City Clerk
[email protected]
(760) 499-5002
In compliance with the Americans with Disabilities Act, if you are a disabled person and you need a disability-related modification or accommodation to participate in the meeting, please contact Ricca Charlon at (760) 499-5002. Requests must be made as early as possible and at least one full business day before the start of the meeting.

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CITY COUNCIL
Eric A. Bruen, Mayor
Solomon P. Rajaratnam, Mayor Pro-Tem
Kyle Blades, Vice Mayor
L. Scott Hayman, Council Member
John ‘Skip’ Gorman, Council Member
Ron Strand, City Manager
Keith Lemieux, City Attorney
Martin Koczanowicz, City Attorney
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100 W. CALIFORNIA AVE. | RIDGECREST, CA 93555
Phone 760.499.5000 | Fax 760.499.1520
www.ridgecrest-ca.gov

NOTICE AND CALL OF A SPECIAL CLOSED SESSION MEETING OF THE

RIDGECREST CITY COUNCIL / SUCCESSOR REDEVELOPMENT AGENCY /

HOUSING AUTHORITY / FINANCING AUTHORITY

TO THE MEMBERS OF THE RIDGECREST CITY COUNCIL / SUCCESSOR

REDEVELOPMENT AGENCY / HOUSING AUTHORITY / FINANCING AUTHORITY, PUBLIC AND CITY CLERK:

PUBLIC NOTICE that a SPECIAL CLOSED SESSION MEETING of the Ridgecrest City Council/Successor Redevelopment Agency/Housing Authority/Financing Authority is hereby called on:

Wednesday, November 6, 2024 @ 5:30 p.m.

City Council Chambers
100 W. California Avenue
Ridgecrest, California
Said SPECIAL CLOSED SESSION MEETING shall be for the purpose of:

CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION
Pursuant to Government Code § 54956.9 Subparts (a), (d)(2) and (e)(1) – One case

CONFERENCE WITH LEGAL COUNSEL
Existing Litigation Government Code Section 54956.9.

Finley v. Ridgecrest et al Kern County Superior Court Case No. BCV-22-100048 Dated: September 30, 2024
Eric A. Bruen, Mayor / Chair
ATTEST:

Ricca Charlon, City Clerk
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RIDGECREST CITY COUNCIL

SUCCESSOR REDEVELOPMENT AGENCY

FINANCING AUTHORITY

HOUSING AUTHORITY

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AGENDA
Wednesday, November 6, 2024 Closed Session – 5:30 p.m.

Regular Session – 6:00 p.m.

CALL TO ORDER - Roll call

APPROVAL OF AGENDA

CLOSED SESSION
CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION
Pursuant to Government Code § 54956.9 Subparts (a), (d)(2) and (e)(1) – One case

CONFERENCE WITH LEGAL COUNSEL
Existing Litigation Government Code Section 54956.9.

Finley v. Ridgecrest et al Kern County Superior Court Case No. BCV-22-100048

REGULAR SESSION
• Pledge Of Allegiance
• Invocation

PRESENTATION
Law Enforcement Records And Support Personnel Appreciation Week Proclamation Council PUBLIC COMMENT OF ITEMS NOT ON THE AGENDA - Persons wishing to address the Council on matters that are within the Council’s jurisdiction and DO NOT ALREADY APPEAR ON THE AGENDA, may do so at this time.

COUNCIL ANNOUNCEMENTS/DIRECTION
CONSENT CALENDAR – All Matters Listed Under The Consent Calendar Are To Be Considered Routine And Enacted By One Motion Unless Pulled By A Council Member Or A Member Of The Public.

1. Proposed Action To Approve Draft Minutes Of The Ridgecrest City Council Regular Meeting Dated October 16, 2024 Charlon

2. Authorization For The City Manager, Ron Strand To Sign The Notice Of Completion For The Correction Of Deficiencies In The Emergency Sprinkler System In The Kerr McGee Community Center And Ridgecrest Police Department; For The City Clerk To File The Notice Of Completion; And For City Staff To Release Retention In The Amount Of One Thousand Six Hundred Fifty-Three Dollars And Thirty Cents ($1,653.30) To The Contractor, RLH Protection Inc., Within Thirty (30) Days After Recordation Of The Notice Of Completion Wegener

3. A Resolution Of The Ridgecrest City Council Approving The Addition Of An Accounts Receivable Specialist Position To The Classification Plan Freese

AGENDA - CITY COUNCIL / SUCCESSOR REDEVELOPMENT AGENCY / FINANCING AUTHORITY / HOUSING AUTHORITY REGULAR – November 6, 2024

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DISCUSSION / ACTION

4. Consideration Of Temporary Suspension Of Business Licenses For Heritage Inn And Super 8 Hotels And Setting A License Revocation Hearing For The 11.20.24 City Council Meeting Attorney

5. Approve A Grant Application To The Office Of Local Defense Community Cooperation (OLDCC) For Federal Funding To Enhance The Resilience Of The Naval Air Weapons Station (NAWS) China Lake And The Surrounding Ridgecrest Community Strand

6. A Resolution Of The Ridgecrest City Council Designating Persons To Execute Documents To Obtain Financial Assistance Under P.L. 93-288 As Amended By The Robert T. Stafford Disaster Relief And Emergency Assistance Act Of 1988, And/Or State Financial Assistance Under The California Disaster Assistance Act Reed

COMMITTEE REPORTS
City Organization and Services Committee (‘City Org’)
Members: Mayor Eric A. Bruen and Skip Gorman
Meeting: 1
st Thursday each month at 5:30 p.m.

Location: City Hall Council Chambers
➢ Next meeting November 7, 2024
Economic Development Committee
Members: Kyle Blades and Solomon Rajaratnam
Meeting: 1st Monday of the month @ 5:15 p.m.

Location: City Hall Conference Room B, 1
st Floor
➢ Report from November 4, 2024
Finance Committee
Members: Mayor Eric A. Bruen and Scott Hayman
Meeting: 2nd Tuesday each month at 5:30 p.m.

Location: City Hall Conference Room B, 1
st Floor
➢ Next meeting November 12, 2024
Infrastructure Committee
Members: Solomon Rajaratnam and Kyle Blades
Meeting: 4
th Thursday each month at 5:00 p.m.

Location: City Hall Conference Room B, 1
st Floor
➢ Report from October 24, 2024
Parks, Recreation, and Quality of Life Committee
Members: Mayor Eric A. Bruen and Skip Gorman
Meeting: 1
st Tuesday each month at 5:30 p.m.

Location: City Hall Council Chambers
➢ Report from November 5, 2024
Ridgecrest Area Convention and Visitor Bureau (RACVB)
Members: Solomon Rajaratnam and Jennifer Rickets (staff) Meeting: 4th Wednesday each month at 9:00 a.m.

Location: California Welcome Center
➢ Next meeting November 20, 2024

AGENDA - CITY COUNCIL / SUCCESSOR REDEVELOPMENT AGENCY / FINANCING AUTHORITY / HOUSING AUTHORITY REGULAR – November 6, 2024

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OTHER COMMITTEES, BOARDS, OR COMMISSIONS

CITY MANAGER REPORT

FUTURE AGENDA ITEMS

MAYOR AND COUNCIL COMMENTS

ADJOURNMENT
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A Proclamation of
The City of Ridgecrest, California
Honoring

LAW ENFORCEMENT RECORDS AND SUPPORT PERSONNEL
APPRECIATION WEEK NOVEMBER 11-15, 2024
WHEREAS, the Ridgecrest Police Department, and all law enforcement agencies throughout the State, depend upon law enforcement records and support personnel to provide them with vital services; and, WHEREAS, the Ridgecrest Police Department Records Bureau and support personnel are crucial to helping law enforcement agencies identify, pursue, capture, and process suspected law breakers; and, WHEREAS, these professionals continually use their expertise and experience to assist in tracking felons, maintaining criminal statistics, and improving apprehension strategies; and, WHEREAS, the Ridgecrest Police Department Records Bureau staff entered thousands of documents into the Records Management System, processed multiple subpoenas as court liaisons, and provided Live Scan services to hundreds of citizens; and,
WHEREAS, it is important to recognize California’s law enforcement records and support personnel for their valuable contributions to our law enforcement system; and, WHEREAS, the State Executive Board of the California Law Enforcement Association of Records Supervisors has proclaimed November 11-15, 2024 “Law Enforcement Records and Support Personnel Appreciation Week.”
NOW THEREFORE, I, Eric Bruen, Mayor of the City of Ridgecrest, on behalf of the City Council, do hereby proclaim November 11th through November 15th, 2024, as “Law Enforcement Records and Support Personnel Appreciation Week” in the City of Ridgecrest, and extend our gratitude to the Ridgecrest Police Department’s Records Bureau staff and support personnel for their dedicated service to our community, their diligence, and their commitment to keeping our City and citizens safe.

Proclaimed this 6
th Day of November, 2024
Eric A. Bruen
Mayor

Kyle Blades
Vice Mayor
Solomon P. Rajaratnam
Mayor Pro Tem
L. Scott Hayman
Council Member
John ‘Skip’ Gorman
Council Member
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Ridgecrest City Council
Successor Redevelopment Agency
Financing Authority
Housing Authority

STAFF REPORT
SUBJECT: Proposed Action To Approve Draft Minutes Of The Ridgecrest City Council Regular Meeting Dated October 16, 2024
PRESENTED BY: Ricca Charlon, City Clerk
SUMMARY:

Draft Minutes of the City Council / Successor Redevelopment Agency / Housing Authority / Financing Authority Regular Meeting Dated October 16, 2024 FISCAL IMPACT: None
ACTION REQUESTED: Approve minutes
CITY MANAGER’S RECOMMENDATION: Action as requested
Submitted by: Ricca Charlon Action Date: November 6, 2024 This Page Intentionally Left Blank

RIDGECREST CITY COUNCIL

SUCCESSOR REDEVELOPMENT AGENCY

FINANCING AUTHORITY

HOUSING AUTHORITY

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DRAFT MINUTES
Wednesday, October 16, 2024 Regular Session – 6:00 p.m.

This meeting was recorded and will be on file in the Office of the City Clerk for a certain period of time from date of approval by the Ridgecrest City Successor Agency/Financing Authority/Housing Authority. Meetings are recorded solely for the purpose of preparation of minutes.

ROLL CALL – 6:00 p.m.

Council Present: Mayor Eric A. Bruen; Mayor Pro-Tem Solomon P. Rajaratnam; Council Member L. Scott Hayman

Absent: Vice Mayor Kyle Blades; Council Member Skip Gorman Staff Present: City Attorney M. Koczanowicz; City Clerk Charlon; Chief Ysit; Finance Director Freese

APPROVAL OF AGENDA
Motion To Approve Agenda with addition of needs arose closed session at end of meeting – Rajaratnam - Hayman 3 Ayes; 2 Absent
NOTE: The vote is displayed in bold below each item. For example, Blades-Rajaratnam denotes Council Member Blades made the motion and Council Member Rajaratnam seconded the motion. Ayes, Noes, Absents, Abstentions follow.

PRESENTATIONS
Elks Drug Awareness Program Proclamation Council
PUBLIC COMMENT OF ITEMS NOT ON THE AGENDA - A. Estrada

COUNCIL ANNOUNCEMENTS/DIRECTION

CONSENT CALENDAR

1. Proposed Action To Approve Draft Minutes Of The Ridgecrest City Council Regular Meeting Dated October 2, 2024 Charlon
Motion To Approve – Rajaratnam - Hayman – 3 Ayes; 2 Absent

DISCUSSION / ACTION

2. Discussion Regarding The Board Of The Indian Wells Valley Groundwater Authority (IWVGA) Hayman

COMMITTEE REPORTS
City Organization and Services Committee (‘City Org’)
Members: Mayor Eric A. Bruen and Skip Gorman
Meeting: 1st Thursday each month at 5:30 p.m.

Location: City Hall Council Chambers
➢ Report from October 3, 2024
Economic Development Committee
Members: Kyle Blades and Solomon Rajaratnam
Meeting: 1st Monday of the month @ 5:15 p.m.

Location: City Hall Conference Room B, 1
st Floor
➢ Report from October 7, 2024

DRAFT MINUTES - CITY COUNCIL / SUCCESSOR REDEVELOPMENT AGENCY / FINANCING AUTHORITY / HOUSING AUTHORITY REGULAR – October 16, 2024

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Finance Committee
Members: Mayor Eric A. Bruen and Scott Hayman
Meeting: 2nd Tuesday each month at 5:30 p.m.

Location: City Hall Conference Room B, 1
st Floor
➢ Report from October 8, 2024
Infrastructure Committee
Members: Solomon Rajaratnam and Kyle Blades
Meeting: 4
th Thursday each month at 5:00 p.m.

Location: City Hall Conference Room B, 1
st Floor
➢ Next meeting October 24, 2024
Parks, Recreation, and Quality of Life Committee
Members: Mayor Eric A. Bruen and Skip Gorman
Meeting: 1
st Tuesday each month at 5:30 p.m.

Location: City Hall Council Chambers
➢ Next meeting November 5, 2024
Ridgecrest Area Convention and Visitor Bureau (RACVB)
Members: Solomon Rajaratnam and Jennifer Rickets (staff) Meeting: 4th Wednesday each month at 9:00 a.m.

Location: California Welcome Center
➢ Next meeting October 23, 2024

OTHER COMMITTEES, BOARDS, OR COMMISSIONS

CITY MANAGER REPORT

FUTURE AGENDA ITEMS

MAYOR AND COUNCIL COMMENTS
CLOSED SESSION - 6:38 p.m.

CONFERENCE WITH LEGAL COUNSEL
Existing Litigation Government Code Section 54956.9
City of Ridgecrest v. Heritage Living LLC
ATTORNEY REPORT OUT OF CLOSED SESSION No reportable action taken

ADJOURNMENT
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Ridgecrest City Council
Successor Redevelopment Agency
Financing Authority
Housing Authority

STAFF REPORT
SUBJECT: Authorization For The City Manager, Ron Strand To Sign The Notice Of Completion For The Correction Of Deficiencies In The Emergency Sprinkler System In The Kerr McGee Community Center And Ridgecrest Police Department. For The City Clerk To File The Notice Of Completion And For City Staff To Release Retention In The Amount Of One Thousand Six Hundred Fifty-Three Dollars And Thirty Cents ($1,653.30) To The Contractor, RLH Protection Inc. Within Thirty (30) Days After Recordation Of The Notice Of Completion PRESENTED BY: Nerissa Wegener, Parks and Recreation Director SUMMARY:

The Contractor, RLH Protection Inc., has finished the project that consisted of the correction of deficiencies in the emergency sprinkler system in the Kerr McGee Community Center and Ridgecrest Police Department, with the work being completed on October 17, 2024. The project accounting is as follows:

The original budget amount: $32,044
Original Estimate $29,849
Change Order #1: $1,872
Change Order #2: $1,345
Revised total contract amount: $33,066
With the work completed and the exception of the retention amount of One Thousand Six Hundred Fifty-Three Dollars and Thirty Cents ($1,653.30) the contractor RLH Protection Inc. has been paid in full.

The City Staff will authorize release of retention within thirty (30) days from the filing of the Notice of Completion as long as no claims have been filed against the retained funds and the City of Ridgecrest has accepted all work.

FISCAL IMPACT: General fund FY24 budgeted project in the amount of $33,066.

ACTION REQUESTED:

1. Authorizes the City Manager to sign the Notice of Completion

2. Authorizes the City Clerk to file the Notice of Completion

3. Authorizes City Staff to release retention in the amount of $1,653.30 to the Contractor, RLH Protection Inc. within thirty (30) days after recordation of the Notice of Completion provided no claims have been filed against said retained funds.

CITY MANAGER’S RECOMMENDATION: Action as Requested
Submitted by: Nerissa Wegener Action Date: November 6, 2024 This Page Intentionally Left Blank
RESOLUTION NO. 24-Xx

AUTHORIZATION FOR THE CITY MANAGER, RON STRAND, TO SIGN THE

NOTICE OF COMPLETION FOR THE CORRECTION OF DEFICIENCIES IN

THE EMERGENCY SPRINKLER SYSTEM IN THE KERR MCGEE
COMMUNITY CENTER AND RIDGECREST POLICE DEPARTMENT; FOR
THE CITY CLERK TO FILE THE NOTICE OF COMPLETION; AND FOR CITY

STAFF TO RELEASE RETENTION IN THE AMOUNT OF ONE THOUSAND SIX HUNDRED FIFTY-THREE DOLLARS AND THIRTY CENTS ($1,653.30) TO THE CONTRACTOR, RLH PROTECTION INC., WITHIN THIRTY (30)

DAYS AFTER RECORDATION OF THE NOTICE OF COMPLETION
WHEREAS, the Contractor, RLH Protection Inc. has completed the correction of deficiencies in the emergency sprinkler system in the Kerr McGee Community Center and Ridgecrest Police Department; and,
WHEREAS, with the work completed and the exception of the retention amount of One Thousand Six Hundred Fifty-Three Dollars and Thirty Cents ($1,653.30) the contractor all RLH Protection Inc. has been paid in full; and,
WHEREAS, the City Staff will authorize release of retention within thirty (30) days from the filing of the Notice of Completion so long as no claims have been filed against the retained funds and the City of Ridgecrest has accepted all work.

NOW THEREFORE, BE IT RESOLVED that the City Council of the City of Ridgecrest hereby:

1. Authorizes the City Manager to sign the Notice of Completion; and

2. Authorizes the City Clerk to file the Notice of Completion for recordation for the correction of deficiencies in the emergency sprinkler system in the Kerr McGee Community Center and Ridgecrest Police Department

3. Authorizes City Staff to release retention in the amount of One Thousand Six Hundred Fifty-Three Dollars and Thirty Cents ($1,653.30) the contractor RLH Protection Inc. within thirty (30) days after recordation of the Notice of Completion provided no claims have been filed against said retained funds.

APPROVED AND ADOPTED this 6
th day of November 2024 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Eric Bruen, Mayor
ATTEST:

Ricca Charlon, City Clerk
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Recording Requested By:

CITY OF RIDGECREST
When Recorded Mail to:

City of Ridgecrest
City Clerk
100 West California Avenue
Ridgecrest, CA 93555

NOTICE OF COMPLETION
NOTICE IS HEREBY GIVEN THAT:

1. The undersigned is OWNER or Agent of the OWNER of the interest or estate stated below in the property hereinafter described.

2. The FULL NAME of the OWNER is City of Ridgecrest

3. The FULL ADDRESS of the OWNER is 100 West California Avenue, Ridgecrest, CA 93555

4. The NATURE OF THE INTEREST or ESTATE of the undersigned is: In Fee. (if other than fee, Strike "In Fee" and insert, for example, "Purchaser under contract of purchase," or "Lessee.")

5. The FULL NAMES and FULL ADDRESSES of ALL PERSONS, if any, WHO HOLD SUCH INTEREST or ESTATE with the undersigned as JOINT TENANTS IN COMMON are:

Names Addresses

6. The full names and full addresses of the predecessors in interest of the undersigned if the property was transferred subsequent to the commencement of the work of improvement herein referred to:

Names Addresses

7. A work of improvement on the property hereinafter described was COMPLETED October 16, 2024

8. The work of improvement completed is described as follows: Correct deficiencies noted on the annual inspection At the Kerr McGee Community Center and the Ridgecrest Police Department

9. The NAME OF THE ORIGINAL CONTRACTOR, if any, for such work of improvement is: RLH Protection Services Inc.

10. The street address of said property is: 100 W California Ave, Ridgecrest CA

11. The property on which said work of improvement was completed is in the City of Ridgecrest County of Kern, State of California, and is described as follows:

Kerr McGee Community Center and City Hall (Police Department)

Date Ronald Strand, City Manager
Verification for INDIVIDUAL owner
I, the undersigned, declare under penalty of perjury under the laws of the State of California that I am the owner of the aforesaid interest or estate in the property described in the above notice; that I have said notice, that I know and understand the contents thereof, and that the facts stated therein are true and correct.

Date and Place Signature of Owner named in paragraph 2
Verification for NON-INDIVIDUAL owner: I, the undersigned, declare under penalty of perjury under the laws of the State of California that I am the City Manager of the aforesaid interest or estate in the property described in the above notice; that I have read the said notice, that I know and understand the contents thereof, and that the facts stated therein are true and correct.

Date and Place Ronald Strand, City Manager
SUBSCRIBED AND SWORN TO before me on
Ricca Charlon, City Clerk Revised 9/22/2003
Document Title(s):

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Ridgecrest City Council
Successor Redevelopment Agency
Financing Authority
Housing Authority

STAFF REPORT
SUBJECT: A Resolution Of The Ridgecrest City Council Approving The Addition Of An Accounts Receivable Specialist Position To The Classification Plan PRESENTED BY: Cheri Freese, Finance Director
SUMMARY:

The City Council, in its adoption of the Fiscal Year 2024-2025 budget, adopted a classification plan that governs approved position descriptions for the City. This plan requires that the City Council authorize the adoption of new position descriptions prior to opening the position for employment purposes. The Finance Department requests City Council approval to create a new Accounts Receivable Specialist position. This position is necessary to accommodate changes in our approach to Transient Occupancy Tax (TOT) collection and other accounts receivable functions. The proposal includes promoting the current Account Clerk to this new role, with a salary range from Step 1:
$23.1620 to Step 11: $33.4458.

The City of Ridgecrest currently contracts with HdL for services related to the collection and administration of TOT. However, after a thorough review, the Finance Department recommends canceling this contract and bringing the TOT functions in-house. This change will not only provide cost savings but also enhance local oversight of these critical operations.

Proposal:

The addition of the Accounts Receivable Specialist position within the Finance Department. The specialist will be responsible for managing all accounts receivable functions, including the creation and implementation of a more efficient and transparent TOT collection process.

Specifically, this position will:
• Manage all aspects of the TOT collection process, including the development and continuous updating of procedures.
• Build relationships with local hotels to ensure compliance with TOT regulations and payments. • Require that all hotels submit a financial system report that matches their TOT payments, providing transparency and accountability.
• Eliminate the need for external TOT audits by ensuring accurate and timely payments through this new process.
• Continue to do the current responsibilities of the Account Clerk The creation of this position will be offset by the cancellation of the HdL contract, resulting in net financial savings for the City while providing greater local control over TOT collections. This structure will ensure both operational oversight and strategic direction for the TOT process.

The Accounts Receivable Specialist will report directly to the Assistant Finance Director, and will work together with the Finance Director to create the necessary policies and procedures needed for the more efficient TOT process.

It is recommended that this resolution be adopted authorizing the adoption of an Accounts Receivable Specialist as described in the attached job description.

Ridgecrest City Council
Successor Redevelopment Agency
Financing Authority
Housing Authority

STAFF REPORT
FISCAL IMPACT: No Direct Impact. Promoting the current Account Clerk to this new position will allow us to leverage existing experience and knowledge within the department while saving on the costs previously associated with HdL services.

ACTION REQUESTED: It is recommended that the City Council approve the creation of the Accounts Receivable Specialist position and authorize the promotion of the current Account Clerk to this role, with the salary range from Step 1: $23.1620 to Step 11: $33.4458.

CITY MANAGER’S RECOMMENDATION: Approve as requested.

Submitted by: Cheri Freese Action Date: November 6, 2024 RESOLUTION NO. 24-XX

A RESOLUTION OF THE RIDGECREST CITY COUNCIL APPROVING

THE ADDITION OF AN ACCOUNTS RECEIVABLE SPECIALIST

POSITION TO THE CLASSIFICATION PLAN
WHEREAS, the City Council of the City of Ridgecrest has, by previous resolution, adopted a classification plan that governs approved position descriptions, and; WHEREAS, this plan requires that the City Council authorize the adoption of new position descriptions prior to opening the position for employment purposes, and; WHEREAS, the City Council in its adoption of the Fiscal Year 2024-2025 budget did not approve an Accounts Receivable Specialist position.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Ridgecrest authorize the adoption of an Accounts Receivable Specialist position job description “Exhibit A” into the City’s current classification plan as outlined in “Exhibit B” APPROVED AND ADOPTED, this 6
th day of November 2024, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

Eric A. Bruen, Mayor
ATTEST:

Ricca Charlon, CMC
City Clerk
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CITY OF RIDGECREST Date Adopted: 11/06/2024
Accounts Receivable Specialist

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DEFINITION
Under general supervision, the Accounts Receivable Specialist is responsible for managing the city’s accounts receivable functions, including ensuring accurate billing, timely collection of revenues, and maintaining financial records. Assists the public in services provided by the Finance Department; performs related duties as required. In addition, this position will create, implement, and continuously update the Transient Occupancy Tax (TOT) collection process, manage all TOT collections, and build and maintain relationships with local hotels to ensure timely and accurate payments.

CLASS CHARACTERISTICS
This journey-level position requires specialized knowledge in accounts receivable management and public revenue collection. The incumbent must demonstrate proficiency in accounts receivable procedures and be able to manage complex tasks with minimal supervision.

ESSENTIAL FUNCTIONS
Oversee the city’s accounts receivable operations, ensuring accurate invoicing, processing of payments, and timely follow-up on outstanding accounts.

Participate in the development and implementation of operational and administrative programs, policies and procedures, ensuring that the programs meet current legal and financial requirements.

Serve as the primary contact for hotel operators, establishing and maintaining strong professional relationships to facilitate accurate TOT reporting and payments.

Track and reconcile TOT payments, ensuring all amounts are received on time and for the correct amounts; investigate discrepancies and take corrective action when necessary.

Generate reports on TOT collections and other accounts receivable functions, and present findings to management as required.

Verifies claims, warrants, deposit slips, computer source documents, application, invoices, and records for arithmetical accuracy, consistency, and budget classifications requiring application of established coding and record keeping practices.

Prepare comprehensive technical records and reports pertaining to accounts receivable and TOT; conduct research and comprehensive data collection efforts to support analyses.

Maintain up-to-date records on all receivable accounts, including reconciliations, adjustments, and reporting.

Prepare and issue invoices and receipts for services, and generate manual warrants when necessary.

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Monitor aging of receivables, including regular follow-up on overdue accounts and the preparation of collection letters.

Responds to inquiries in person or by phone/email, providing explanation of established procedures and work unit policies; issues routine correspondence to vendors, businesses, or the public, according to established procedure, including routine collection correspondence.

Perform other related duties as required.

QUALIFICATIONS GUIDELINES
Education and/or Experience:

Any combination of education and/or experience that has provided the knowledge, skills, and abilities necessary for satisfactory job performance. A typical way of obtaining the required qualifications is:

Completion of high school or equivalent with coursework in bookkeeping, accounting, or business administration.

Three years of increasingly responsible experience in accounts receivable, financial record keeping, or public revenue collection, including experience with customer service and account management.

Knowledge, Skills, and Abilities:

Thorough knowledge of accounts receivable practices and procedures, including billing, collections, reconciliations, and reporting.

Familiarity with legal requirements and processes related to TOT or similar public tax collections.

Proficiency in accounting software and spreadsheet applications.

Strong interpersonal and communication skills for maintaining relationships with external parties and city departments.

Ability to prioritize tasks, meet deadlines, and handle multiple projects simultaneously.

Excellent problem-solving skills, with attention to detail in investigating and resolving discrepancies.

Special Requirements
Possession of or ability to obtain a Class C California driver’s license.

Ability to pass a background investigation, physical examination, and drug screening.

PHYSICAL PROFILE: I, 4, 7, 12
TITLE GRADE STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 STEP 7 STEP 8 STEP 9 STEP 10 STEP 11 Hourly 17.4201 18.2911 19.2057 20.1660 21.1743 22.2330 22.7888 23.3585 23.9425 Monthly 3,019.48 3,170.46 3,328.99 3,495.44 3,670.21 3,853.72 3,950.06 4,048.81 4,150.03 Accounts Payable Hourly 17.4202 18.2912 19.2058 20.1661 21.1744 22.2331 22.7889 23.3586 23.9426 24.5412 25.1547 Technician Monthly 3,019.50 3,170.47 3,329.01 3,495.46 3,670.23 3,853.74 3,950.08 4,048.82 4,150.05 4,253.81 4,360.15 Accounts Receivable Hourly 23.1620 24.3201 25.5361 26.8129 28.1535 29.5612 30.3002 31.0577 31.8341 32.6300 33.4458 Specialist Monthly 4,014.75 4,215.48 4,426.26 4,647.57 4,879.94 5,123.94 5,252.03 5,383.33 5,517.91 5,655.87 5,797.27 Hourly 28.5486 29.9760 31.4748 33.0485 34.7009 36.4359 37.3468 38.2805 39.2375 40.2184 41.2239 Monthly 4,948.42 5,195.84 5,455.63 5,728.41 6,014.82 6,315.56 6,473.45 6,635.29 6,801.17 6,971.19 7,145.48 Administrative Hourly 25.2517 26.5143 27.8400 29.2320 30.6936 32.2283 33.0340 33.8599 34.7064 35.5741 36.4635 Analyst I Monthly 4,376.96 4,595.81 4,825.60 5,066.88 5,320.22 5,586.24 5,725.89 5,869.05 6,015.78 6,166.18 6,320.34 Administrative Hourly 29.5685 31.0469 32.5992 34.2292 35.9407 37.7377 38.6811 39.6481 40.6393 41.6553 42.6967 Analyst II Monthly 5,125.21 5,381.46 5,650.53 5,933.06 6,229.72 6,541.20 6,704.72 6,872.34 7,044.15 7,220.25 7,400.76 Cultural Affairs Hourly 18.3031 19.2183 20.1792 21.1882 22.2476 23.3600 23.9440 24.5426 25.1562 25.7851 26.4297 Coordinator Monthly 3,172.54 3,331.17 3,497.73 3,672.62 3,856.25 4,049.07 4,150.29 4,254.05 4,360.41 4,469.42 4,581.15 Human Resources Hourly 29.5685 31.0469 32.5992 34.2292 35.9407 37.7377 38.6811 39.6481 40.6393 41.6553 42.6967 Administrator Monthly 5,125.21 5,381.46 5,650.53 5,933.06 6,229.72 6,541.20 6,704.72 6,872.34 7,044.15 7,220.25 7,400.76 Information Systems Hourly 29.5685 31.0469 32.5992 34.2292 35.9407 37.7377 38.6811 39.6481 40.6393 41.6553 42.6967 Specialist Monthly 5,125.21 5,381.46 5,650.53 5,933.06 6,229.72 6,541.20 6,704.72 6,872.34 7,044.15 7,220.25 7,400.76 Information Systems Hourly 19.8450 20.8373 21.8792 22.9732 24.1219 25.3280 25.9612 26.6102 27.2755 27.9574 28.6563 Technician Monthly 3,439.80 3,611.80 3,792.39 3,982.02 4,181.13 4,390.19 4,499.94 4,612.43 4,727.75 4,845.95 4,967.09 Junior Hourly 23.1620 24.3201 25.5361 26.8129 28.1535 29.5612 30.3002 31.0577 31.8341 32.6300 33.4458 Accountant Monthly 4,014.75 4,215.48 4,426.26 4,647.57 4,879.94 5,123.94 5,252.03 5,383.33 5,517.91 5,655.87 5,797.27 Hourly 25.8093 27.0998 28.4548 29.8775 31.3714 32.9400 33.7635 34.6076 35.4728 36.3596 37.2686 Monthly 4,473.61 4,697.30 4,932.17 5,178.77 5,437.71 5,709.60 5,852.34 5,998.65 6,148.62 6,302.33 6,459.89 Hourly 25.2517 26.5143 27.8400 29.2320 30.6936 32.2283 33.0340 33.8599 34.7064 35.5741 36.4635 Monthly 4,376.96 4,595.81 4,825.60 5,066.88 5,320.22 5,586.24 5,725.89 5,869.05 6,015.78 6,166.18 6,320.34 Hourly 17.3644 18.2326 19.1442 20.1014 21.1065 22.1618 22.7158 23.2837 23.8658 24.4624 25.0740 Monthly 3,009.83 3,160.32 3,318.33 3,484.24 3,658.46 3,841.38 3,937.41 4,035.84 4,136.74 4,240.15 4,346.16 Hourly 19.1569 20.1147 21.1204 22.1764 23.2852 24.4495 25.0607 25.6872 26.3294 Monthly 3,320.53 3,486.55 3,660.87 3,843.91 4,036.10 4,237.91 4,343.85 4,452.45 4,563.76 Transit Road Safety/ Hourly 18.6430 19.5752 20.5540 21.5817 22.6608 23.7938 24.3886 24.9983 25.6233 Driver Trainer Monthly 3,231.45 3,393.03 3,562.69 3,740.83 3,927.87 4,124.26 4,227.36 4,333.04 4,441.37 Wastewater Hourly 33.2056 34.8659 36.6092 38.4397 40.3617 42.3798 Foreman Monthly 5,755.64 6,043.42 6,345.59 6,662.88 6,996.03 7,345.83 7625
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Police Clerk Supervisor
Recreation Assistant
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Salary Schedule for Confidential Group
Effective on July 1, 2024
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Account Clerk
Accountant
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Ridgecrest City Council
Successor Redevelopment Agency
Financing Authority
Housing Authority

STAFF REPORT
SUBJECT:

Request for a temporary suspension of Business Licenses for Heritage Living LLC and Suite and Super 8 Hotels and scheduling of a Hearing for Permanent Revocation of such Licenses (Ridgecrest Municipal Code Section 9-236)
PRESENTED BY: Martin D. Koczanowicz, City Attorney
BACKGROUND:

For over a year staff, City’s tax consultant Hdl and the City Attorney have been attempting to collect unpaid Transient Occupancy Taxes from the owners and operators of Super 8 and Heritage Living LLC (Heritage). These two hotels appear to be owned by the same group of operators, Biagvat Kaplesh Solanki and Tumas Raju Patel. The operators’ failure to comply with the Municipal Code provisions for TOT collection, reporting and payments, resulted in the City Council directing our office to file a legal action to collect City’s taxes. As of the time of the filing of those Complaints the taxes that were kept by the operators and not paid to the City were estimated at approximately $100,000 each. Those estimates are likely low. The litigation is ongoing with the Defendants being currently in default for failure to timely respond to the Complaints.

TEMPORARY SUSPENSION:

Ridgecrest Municipal Code (RMC) Section 9-236 provides the City Council with authority to suspend, revoke, or cancel a Business License for good cause shown. Such good cause includes any violation of City’s Ordinances. Failure to timely and accurately report and remit collected TOT to the City, or failure to collect such TOT from the hotel guests, is a violation of RMC Section 9-143. As the TOT is not, at any point in time, the property of the hotel operator, not remitting the TOT to the City, constitutes embezzlement, which is a crime.

Attached to this staff report as Exhibit A is a chart which shows the months and year for which payments have not been submitted by either hotel. Attached as Exhibit B are the Complaints that have been filed against Heritage and Super 8 for failure to remit the TOT to the City per RMC provisions. Attached as Exhibit C, based on newly obtained information, is a chart that shows the amounts that were actually collected from their guests vs. reported by Heritage.

Staff suspects that the same underreporting practices are in place in Super 8 location and will seek to verify that information. In either event,Super-8 has failed to pay TOT to the City, even based on the lower occupancy estimates.

Consistent with the provisions of the RMC Section 9-236(3) staff is requesting that City Council temporarily suspend the Business Licenses for Heritage and Super 8, set a public hearing for November 20th, 2024 Council Meeting to revoke those licenses and direct staff to send Notice (Exhibit D) of the suspension and hearing to the Licensees.

Ridgecrest City Council
Successor Redevelopment Agency
Financing Authority
Housing Authority

STAFF REPORT
At the revocation hearing staff will present more detailed chronology and evidence to support the ongoing violations and the request for permanent revocation of the licenses. Should the licenses be revoked, these two Hotels will lose their right to operate their business in the City.

CEQA: This is not a Project under CEQA Guidelines.

FISCAL IMPACT:

There is no fiscal impact from the recommended action.

ACTION REQUESTED:

Staff requests that the Council receive and consider the staff report and supporting documents, along with any public comment or testimony, issue an order temporarily suspending the Business Licenses for Super 8 and Heritage, schedule a hearing for Revocation of those Licenses for the November 20th 2024 Council meeting and direct staff to serve the notice the Notice (Exhibit B) on the operators and their counsel.

CITY MANAGER’S RECOMMENDATION:

Concur with Recommended action
Submitted by: Martin D. Koczanowicz City Attorney Action Date: November 6, 2023 (Revised Jan2019)

EXHIBIT A
Gross
Receipts Exemptions Penalties/ Interest TOT RTID Total Gross Receipts Exemptions Penalties/ Interest TOT RTID Total May 2023 $ 170,339.22 $ 2,895.76 $ 17,033.92 $ 5,110.18 $ 22,144.10 $ 18,750.00 $ 318.75 $ 1,875.00 $ 562.50 $ 2,437.50 June 2023 $ 155,265.19 $ 2,561.87 $ 15,526.52 $ 4,657.96 $ 20,184.47 $ 17,300.00 $ 285.45 $ 1,730.00 $ 519.00 $ 2,249.00 July 2023 $ 104,271.27 $ 1,668.34 $ 10,427.13 $ 3,128.14 $ 13,555.27 $ 21,750.00 $ 348.00 $ 2,175.00 $ 652.50 $ 2,827.50 August 2023 $ 220,924.80 $ 2,209.25 $ 22,092.48 $ 6,627.74 $ 28,720.22 $ 20,340.00 $ 315.27 $ 2,034.00 $ 610.20 $ 2,644.20 September 2023 $ 226,568.36 $ 3,398.52 $ 22,656.84 $ 6,797.05 $ 29,453.89 $ 16,500.00 $ 247.50 $ 1,650.00 $ 495.00 $ 2,145.00 October 2023 $ 241,579.54 $ 64,311.00 $ 1,772.69 $ 17,726.85 $ 5,318.06 $ 23,044.91 $ 241,579.54 $ 64,311.00 $ 1,861.32 $ 17,726.85 $ 5,318.06 $ 23,044.91 November 2023 $ 187,725.43 $ 1,877.25 $ 18,772.54 $ 10,794.21 $ 29,566.76 $ 181,523.82 $ 1,905.99 $ 18,152.38 $ 10,437.62 $ 28,590.00 December 2023 $ 50,717.98 $ - $ 5,071.80 $ 2,916.28 $ 7,988.08 $ 48,533.00 $ - $ 4,853.30 $ 2,790.65 $ 7,643.95 January 2024 $ 103,022.87 $ 1,236.28 $ 10,302.29 $ 5,923.82 $ 16,226.10 $ 22,000.00 $ 275.00 $ 2,200.00 $ 1,265.00 $ 3,465.00 February 2024 $ 49,775.49 $ 572.41 $ 4,977.55 $ 2,862.09 $ 7,839.64 $ 19,785.00 $ 237.42 $ 1,978.50 $ 1,137.64 $ 3,116.14 March 2024 $ 73,816.15 $ 811.98 $ 7,381.62 $ 4,244.43 $ 11,626.04 $ 27,750.00 $ 319.13 $ 2,775.00 $ 1,595.63 $ 4,370.63 April 2024 $ 102,817.27 $ 1,079.58 $ 10,281.73 $ 5,911.99 $ 16,193.72 $ 24,737.00 $ 272.11 $ 2,473.70 $ 1,422.38 $ 3,896.08 May 2024 $ 100,902.78 $ 1,009.03 $ 10,090.28 $ 5,801.91 $ 15,892.19 $ 20,722.00 $ 217.58 $ 2,072.20 $ 1,191.52 $ 3,263.72 June 2024 $ 172,458.25 $ - $ 17,245.83 $ 9,916.35 $ 27,162.17 $ 19,612.00 $ - $ 1,961.20 $ 1,127.00 $ 3,088.20 TOTAL WITH PEN/INT $ 290,690.54 TOTAL WITH PEN/INT $ 99,385.35 TOTAL W/O PEN/INT $ 269,597.56 TOTAL W/O PEN/INT $ 92,781.83 $ 238,702.03
$ 176,815.73
Gross Receipts
Exemptions
TOT
RTID
Penalties/Interest
HdL Companies
SkyTouch Technology
Note: The TOTAL OWED WITH PEN/INT includes a 25% penalty, due to suspected fraud, on the TOT, according to Ridgecrest Municipal Code Section 9-146(b).

Reporting Period
This is the total rental revenue received by the hotel for the reporting period.

This is rental revenue that is exempt, due to long term occupancy or federal/state exemption.

Transient Occupancy Tax is charged at a rate of 10% of the gross receipts.

Ridgecrest Tourism Improvement District is a pass through payment paid to the RACVB for aid in tourism and destination marketing. From May 2023 to October 2023, it is charged at a rate of 3% of the gross receipts. As of November 2023, it is

5.75%.

For any late payment, 10% of TOT is charged first day the payment is late. For every month payment is late, there is an additional 1/2% interest added.

Legend
*This is an estimated total due per the
information provided by SkyTouch Technology.

Information Provided by SkyTouch Technology Reported to HdL Companies A hotel property management systems that Heritage Inn & Suites utilizes to store occupancy data.

Estimated Transient Occupancy Payment Summary
Heritage Inn & Suites March 2023 - June 2024

TOTAL OWED WITH PEN/INT

TOTAL OWED W/O PEN/INT
A TOT management company that manages and processes TOT accounts for the City of Ridgecrest.

EXHIBIT B
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01351.0116/984553.2

COMPLAINT FOR TRANSIENT OCCUPANCY TAX

ALESHIRE & WYNDER, LLP
MARTIN KOCZANOWICZ, State Bar No. 128290
[email protected]
STEPHEN R. ONSTOT, State Bar No. 139319
[email protected]
JI HEA OH, State Bar No. 351608
[email protected]
2659 Townsgate Rd., Suite 226
Westlake Village, California 91361
Telephone: (805) 495-4770
Facsimile: (949) 223-1180
Attorneys for Plaintiff CITY OF RIDGECREST

SUPERIOR COURT OF THE STATE OF CALIFORNIA

COUNTY OF KERN
CITY OF RIDGECREST, a municipal
corporation,
Plaintiff,
v.

TUMAS RAJU PATEL an individual, dba
SUPER 8 RIDGECREST, a sole
proprietorship, KAL SOLANKI, an individual,
and DOES 1-10, inclusive,
Defendant.

Case No.

COMPLAINT FOR:

1. AMOUNT OF TRANSIENT
OCCUPANCY TAX OWED;

2. PENALTIES AND INTEREST; AND

3. CONVERSION.

PLAINTIFF CITY OF RIDGECREST ALLEGES AS FOLLOWS:

PARTIES

1. Plaintiff CITY OF RIDGECREST (“Plaintiff” or “City”) is and at all relevant times has been, a municipal corporation in the County of Kern, State of California, and is organized under the laws of the State of California.

2. Plaintiff is informed and believes, and based on such information and belief alleges, that Defendant TUMAS RAJU PATEL is, and at all relevant times has been, an individual residing in Chino, California.
/ / /
/ / /
[Exempt From Filing Fee
Government Code § 6103]

ELECTRONICALLY FILED
6/12/2024 3:08 PM
Kern County Superior Court
By Julia Barrera, Deputy
BCV-24-101988
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COMPLAINT FOR TRANSIENT OCCUPANCY TAX

3. Plaintiff is informed and believes, and based on such information and belief alleges, that SUPER 8 RIDGECREST is, and at all relevant times has been, a sole proprietorship owned by Defendant TUMAS RAJU PATEL.

4. Plaintiff is informed and believes, and based on such information and belief alleges, that Defendant KAL SOLANKI is, and at all relevant times has been, an individual and the managing director of the SUPER 8 RIDGECREST.

5. Plaintiff is ignorant of the true names and/or capacities of Defendants sued herein as DOES 1-10, and as such, sues said DOE Defendants by their fictitious names pursuant to Code of Civil Procedure section 474. Plaintiff will amend this Complaint to show their true names and capacities at such time as they are ascertained. Plaintiff is informed and believes, and based thereon alleges, that each of the Defendants designated herein as a DOE is legally responsible in some manner for the events alleged in this Complaint. References to “Defendants” shall mean each of the Defendants (TUMAS RAJU PATEL an individual, dba SUPER 8 RIDGECREST, a sole proprietorship, KAL SOLANKI, an individual, and DOES 1-10) individually.

6. Plaintiff is informed and believes, and on the basis of this information and belief alleges, that at all times herein mentioned, each Defendant herein was the agent and/or employee of each of the other Defendants named herein, and in doing the things herein mentioned, was acting within the scope of his/her/its authority of such agency and/or employment, and with the permission and consent of said other Defendants.

7. Plaintiff brings this action to remedy violations of the Ridgecrest Municipal Code (“RMC”) sections 9-143 and 9-146 in connection with Defendants’ failure to remit the required Transient Occupancy Tax (“TOT”).

8. Plaintiff is informed and believes, and based on such information and belief alleges, that at all relevant times, Defendants operated a hotel at 426 China Lake Blvd., Ridgecrest, California 93555.

9. Venue is proper in this judicial district as the hotel business activities which underlie this lawsuit occurred within the City of Ridgecrest, County of Kern, State of California. 1 2
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01351.0116/984553.2 -3-

COMPLAINT FOR TRANSIENT OCCUPANCY TAX

FACTUAL ALLEGATIONS

10. Pursuant to Chapter 9, Article V of the RMC, the City authorized imposition and collection a TOT, and section 9-145 of the RMC authorized a TOT audit of Defendants, which the City recently concluded.

11. Throughout the auditing process, Defendants were uncooperative and refused the City’s request for records necessary to determine TOT liability.

12. On or about March 20, 2024, the City generated an audit report and determined Defendants owed $82,134.46 in TOT, $8,243.71 in penalties, and $5,535.79 in interest for a total of $95,913.95 for the reporting period covering January 1, 2020 through May 31, 2023.

13. On or about April 2, 2024, the TOT Audit Division of the City, under direction of the City’s Finance Director, sent Defendants a letter by FedEx summarizing the TOT audit findings (the “Notice”). The Notice was also sent to Defendants by U.S. mail through the City’s auditor, HdL Companies. The Notice provided information on Defendants’ outstanding amount of TOT due and provided Defendants with an opportunity to submit a written dispute by email until April 11, 2024.

The Notice also stated that if the Defendants did not dispute the audit findings, the outstanding TOT amount would be due by April 18, 2024. A true and correct copy of the Notice is attached as Exhibit A.

14. On or about April 3, 2024, the Notice was delivered by FedEx. A true and correct copy of the FedEx delivery confirmation is attached as Exhibit B.

15. Defendants have failed to dispute or remit any portion of the outstanding TOT, penalties and interest. The City has satisfied all prerequisites to bringing suit herein.

FIRST CAUSE OF ACTION
VIOLATION OF RIDGECREST MUNICIPAL CODE § 9-143 – AMOUNT OF

TRANSIENT OCCUPANCY TAXES OWED
(Against All Defendants and DOES 1-10)

16. The City repeats and realleges each and every allegation contained in the foregoing paragraphs 1-15, and incorporates them herein by reference. 1 2
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01351.0116/984553.2 -4-

COMPLAINT FOR TRANSIENT OCCUPANCY TAX

17. The City has the police power, pursuant to Article XI, Section 7 of the California Constitution, to make and enforce within its limits all local, police, sanitary, and other ordinances and regulations not in conflict with general laws.

18. The City has the authority to collect TOT pursuant to California Revenue and Taxation Code section 7280.

19. RMC section 9-143(b) provides that each operator of a transient lodging facility shall collect TOT from every transient.

20. RMC section 9-141 provides each transient is subject to and shall pay TOT in the amount of ten percent of the rent charged by the operator.

21. RMC section 9-143(c) provides that each operator shall, on or before the last day of the month, following the close of each reporting month, make a return to the tax administrator of the total transient rents charged and received and the amount of TOT collected. The full amount of TOT must be remitted to the tax administrator when the return is filed.

22. RMC section 9-145 provides that if any operator shall fail to timely make any report of the TOT, the tax administrator shall proceed in such manner as he may deem best to obtain facts and information on which to base an estimate of the TOT due. As soon as such facts are available, the tax administrator shall determine and assess against such operator the TOT, interest and penalties. The tax administrator shall give a notice of the amount so assessed by serving it personally or by depositing it in the United States mail, postage prepaid, addressed to the operator so assessed at his last known place of address. The operator shall, within ten days, pay the amount after the serving or mailing of such notice.

23. RMC section 9-140 defines “operator” as the person who is proprietor of the hotel, whether in the capacity of licensee, or any other capacity. Where the operator performs his function through a managing agent of any type or character other than an operator for the purposes of this section, they shall have the same duties and liabilities as his principal. Compliance with the provisions of this section by either the principal or the managing agent shall, however, be considered to be compliance by both.
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COMPLAINT FOR TRANSIENT OCCUPANCY TAX

24. RMC section 9-140 defines “person” as any individual, firm, partnership, joint venture, association, social club, fraternal organization, joint stock company, corporation, estate, trust, business trust, receiver, trustee, syndicate, or any other group or combination acting as a unit.

25. RMC section 9-140 defines “hotel” as any structure, or any portion of any structure, which is occupied or intended or designed for occupancy by transients for dwelling, lodging or sleeping purposes, and including any hotel, inn, tourist home or house, motel, studio hotel, bachelor hotel, lodging house, rooming house, apartment house, dormitory, public or private club, mobile home or house trailer at a fixed location, or other similar structure or portion thereof.

26. RMC section 9-140 defines “transient” as any person who, for any period of not more than 30 consecutive days, either at his own expense or at the expense of another, obtains lodging or the use of any lodging space in any hotel, for which lodging or use of lodging space a charge is made.

27. RMC section 9-140 defines “tax administrator” as the finance director or designee.

28. RMC section 9-143(d) further provides that it shall be the duty of every operator to keep and preserve, for a period of three years, all records as may be necessary to determine the amount of such tax as he may have been liable for the collection of any payment to the City, which records the tax administrator shall have the right to inspect at all reasonable times.

29. Pursuant to RMC section 9-143(b) and 9-143(c) it is unlawful for Defendants, who are operators and persons under RMC section 9-140, to fail to remit TOT.

30. Defendants are also in violation of RMC section 9-143(d) by refusing to provide the City with the relevant records for the reporting period of January 1, 2020 through May 31, 2023.

31. The City provided more than the required ten days under RMC section 9-145 to remit payment of the outstanding TOT. Still, Defendants failed to respond to the City’s Notice.

32. As of the date of filing this Complaint, Defendant has failed to make any payment to the City for the TOT owed under the RMC, and thus, is indebted to the City in an amount to be proved at trial, but for a principal sum of not less than $82,134.46. / / /
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01351.0116/984553.2 -6-

COMPLAINT FOR TRANSIENT OCCUPANCY TAX

SECOND CAUSE OF ACTION
VIOLATION OF RIDGECREST MUNICIPAL CODE § 9-146 – AMOUNT OF

PENALTIES AND INTEREST OWED
(Against All Defendants and DOES 1-10)

33. The City repeats and realleges each and every allegation contained in the foregoing paragraphs 1-32, and incorporates them herein by reference.

34. RMC section 9-146(a) provides that any operator who fails to remit any tax imposed by this article within the time required shall pay a penalty of ten percent of the amount of the tax in addition to the amount of the tax.

35. RMC section 9-146(c) provides that in addition to the penalties imposed, any operator who fails to remit any tax imposed by this article shall pay interest at the rate of one-half of one percent per month or fraction thereof on the amount of the tax, exclusive of penalties, from the date on which the remittance first became delinquent until paid.

36. Defendants failed to make any payment to the City for the outstanding TOT owed within the necessary timeframe. Thus, Defendant is indebted to the City for all applicable penalties and interest, in an amount to be proved at trial, but for a sum of not less than $13,779.50.

THIRD CAUSE OF ACTION

CONVERSION
(Against All Defendants and DOES 1-10)

37. The City repeats and realleges each and every allegation contained in the foregoing paragraphs 1-36, and incorporates them herein by reference.

38. RMC section 9-143(c) provides that all taxes collected by operators shall be held in trust for the account of the City until payment thereof is made to the tax administrator.

39. RMC section 9-146(d) provides that every penalty imposed and such interest as accrues shall become a part of the tax required to be paid.

40. At all times alleged herein, the City was and is the sole rightful owner of the outstanding TOT amount under the RMC, and all penalties and interest assessed pursuant to the RMC are also part of the debt owed by Defendants to the City. 1 2
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COMPLAINT FOR TRANSIENT OCCUPANCY TAX

41. At all times alleged herein, the money due and owing to the City was and is in the possession and control of Defendants. Defendants have taken the outstanding TOT amount for their own use and benefit, thereby permanently depriving the City of the use and benefit thereof.

42. Defendants have failed to comply with the City’s express demand that Defendants remit payment of the outstanding TOT, penalties and interest.

43. At all times alleged herein, Defendants acted willfully, wantonly, with oppression, and with a conscious disregard of the rights of the City, such that the City requests that the trier of fact, in the exercise of sound discretion, award the City additional damages for the sake of example and in sufficient amount to punish Defendants for their conduct.

44. As a direct and proximate result of Defendants’ conduct, the City has, and will continue to, suffer damage in an amount to be determined according to proof at the time of trial.

PRAYER FOR RELIEF
WHEREFORE, Plaintiff prays for judgment against Defendants, and each of them, as follows:

1. For unpaid TOT in an amount to be proven at trial, but in the sum of at least $82,134.46.

2. For penalties and interest in an amount to be proven at trial, but in the sum of at least $13,779.50.

3. For punitive damages according to proof.

4. For costs of suit incurred herein and attorneys’ fees to the extent allowed by law.

5. For such other relief as the Court may deem just and proper.

DATED: June 11, 2024 ALESHIRE & WYNDER, LLP

MARTIN KOCZANOWICZ
STEPHEN R. ONSTOT

JI HEA OH
By:

JI HEA OH
Attorneys for CITY OF RIDGECREST, a
municipal corporation r :P

EXHIBIT A
TOT Audit Division
8839 N. Cedar Avenue #212
Fresno, CA 93720
Telephone: (559) 221-4710
Email: [email protected]
Super 8 March 28, 2024
Attention: TOT Processor
426 China Lake Blvd
Ridgecrest, CA 93555 10300019

TOT AUDIT FINDINGS
Dear Lodging Provider:

Thank you for your assistance during our audit review of your City of Ridgecrest Transient Occupancy Tax (TOT) filings for, and for extending your cooperation to our auditor during the review. The TOT audit review spanned the calendar years from January 1, 2020, through May 31, 2023.

The purpose of this letter is to inform you of the City’s decision regarding the audit findings, and to inform you of the amount owed resulting from the audit.

Findings Summary Table
Finding 1: Recorded vs. Reported
Summary: Auditors found a discrepancy between the hotels’ reported tax filings and the rental revenue reported in its accounting systems and/or third-party revenue reports. For example, the hotel filed $41,110.00 in taxable rent for the 2022 calendar-year period.

However, the hotel reported $292,744.28 in rental revenue on its Statistics Report for the same period, creating a discrepancy of $251,634.28. Auditors gave the hotel ample opportunity to provide evidence to show the discrepancy is incorrect, but the hotel was unable to provide such evidence. Therefore, the $251,634.28 discrepancy is considered taxable rent.

Where Was it Found? Statistics Report
How was it Calculated? HdL added all taxable amounts and compared them to the TOT returns filed.

Supporting Evidence
Recorded vs. Reported Calculations:

Hdl9 Lodging Tax
Label Rent TOT Penai!Ues: I interest Total
Find i nl:!11 - Recorded vs. Reported 610,8216.95 iSlll,082.70 6,138.53 3,946.91 71,168.13 Finding 2 ~ Assessment 210,5,17.63 2Jl,051.76 2,105.18 1,588,88 24,745,.82 Total 821,344.58 82,13:4.46 8,243.71 5,535.79 95,913:95 TOT Audit Division
8839 N. Cedar Avenue #212
Fresno, CA 93720
Telephone: (559) 221-4710
Email: [email protected]
Hdl9 Lodging Tax
TOT
lnterut Statistics Report Returns Tallilble
Months Period - Re-ttnue filfil Rt'nt TOT Penally Interest Total 32 / 31/2021 23, 65.8S 26, 91.86 $ (3,026.01) 1302.60) I 02.60 31 6/30/2021 31 278.82 30,815.21 $ •s3.61 ,s.36 7.03 S6.93 30 7/ 31/2021 1,035.29 39,040. 0 $ 1, .89 199. 9 19.95 29.92 249.36 8/ 1/2021 0,499. 0 39,087 2 $ 1 l 78 141. 8 u o. 7 11s.n 28 9/ 0/2021 30,252.7 0,147.74 $ 105.00 IO.SO 105 1 7 13.02 27 10/31/2021 27,579,66 26,963 5 s 616.12 61.61 6.16 8.32 76.09 26 11/ 0/ 0 1 31, .31 29,905 87 $ 502. 150. 5.02 19.53 184.80 ZS 12/ 1/2021 30,674 0 9,10000 $ 21,574 80 2,157. 215.75 26 .69 2,6 2.91 24 1/31/2021 17,417,15 . ,30000 $ 13,117.15 l.311.72 131.17 157 1 1,600.29 23 2/28/2022 22,763.30 5,100.00 $ 17,663.30 1,766.33 176.63 0313 2,146.09 22 /31/2022 8, .71 3,900.00 $ 24, .71 2, 78. 7 247.S.S 272. 3 2,9 .9 21 / 0/2022 25,3 .28 5,20000 $ 20,1 .28 2,01 . 3 201. 211.41 2,426.18 20 S/31/2021 15,820.75 3,70000 $ 12,120.75 1.211..08 121,21 121.21 6/30/2022 2,.500.00 $ 11,905. 1. 190.58 119.06 11311
18 7/31/2022 ,000.00 $ 22,198.4 2,219.85 221. 199.79
17 8/31/2021 37,001.23 3,50000 $ 33,501.2] 3,350,12 335 01 284 76 3,969,90 16 9/30/2021 30,9 33 2,000.00 $ 28,9 .33 2,898. 3 289.84 231.87 3, 20.15 15 10/31/ 022 31.701.l 3, 10.00 $ 2B, 91.2 ,829.1 28 .91 212.18 3,3 . 2 1 11/ 0/2022 20,513.13 2,200.00 $ 18, 13.1 1,831. 1 8313 128.19 2,1 2.64 13 11/31/2022 22,919.83 2,30000 $ 20,619 3 2,061.98 206.20 B403 2,401.21 12 1/31/20 3 31.519.36 , .000.00 $ 27,519.36 2,751.94 275.19 165.12 3,192.25 11 2/28/2023 l S63.69 ,500.00 $ 8.06 . 3,806. 7 o. 209.3S r 96, 6 10 /31/202 ,038.01 2,95000 $ 1 088.01 4,108.80 410.88 ,725.12 9 /30/2023 36,319.13 3,25000 $ 33,069.23 3,306.92 330.69 3,786. 3 8 5/ 1/2023 5,3 .73 $ 45,3 .73 ,53 .87 5,169.76
7 6/ 0/202 5,320.~8 $ 35,320.28 3,532.03 ,008.85
6 7/31/2023 $ 39, 37.75 3,9 3.78 ,456, 7
s 8/31/2023 $ 38,5 16 3,8 . 2 96.46 ,340.72
9/ 0/2023 $ 36,128.33 3,612.88 72.26 4,046. 3
To I 6,2n.~ 610,8 .9 61,08 .70 .91 71,1
TOT Audit Division
8839 N. Cedar Avenue #212
Fresno, CA 93720
Telephone: (559) 221-4710
Email: [email protected]
Finding 2: Assessment
Summary: HdL found the hotel to be uncooperative through the audit.

Additionally, HdL found the hotel did has not filed any TOT returns since May 2023, to present.

Where Was it Found? TOT returns.

How was it Calculated? HdL used the actual data provided by the hotel owners when filing their TOT returns and marked it up 20%
Supporting Evidence
Assessment Calculations:

Hdl9 Lodging Tax
Interest Markup
Months Period Gross Rent (20%) TOT Penalty Interest Total 48 1/31/2020 28,015.00 5,603 560.30 56.03 134.47 750.80 47 2/28/2020 33,360.36 6,672 667.21 66.72 156.79 890.72 46 3/31/2020 14.460.94 2,892 289.22 28.92 66.52 384.66
5 4/30/2020 7,383.09 1, 77 147.66 14.77 33.22 195.65
44 5/31/2020 15,712.07 3,142 314.24 31.42 69.13 414.80
43 6/30/2020 21,709.33 4,342 434.19 43.42 93.3S 570.96
42 7/31/2020 25,106.50 5,021 502.13 50.21 105.45 657.79 41 8/31/2020 33,540.55 6,708 670.81 67.08 137.52 875.41 40 9/30/2020 27.49163 5, 98 549.83 S .98 109.97 714.78
39 10/3 /2020 28,0 6.49 5,613 5 1.33 56.13 109.4 726.92 38 11/30/2020 22,288.92 4,458 5.78 .58 8 .70 575.05
37 12/3 /2020 2 . 9.46 4,730 472.99 7.30 87.50 607.79
36 1/31/2021 34,553.4 6,911 691.07 69.11 124.39 884.57
35 2/28/2021 8,425.62 1,685 168.51 16.85 29.49 21 .85
34 3/31/2021 10,011.00 2,002 200.22 20.02 3 .04 254.28
33 4/30/2021 22,293.70 , 59 4 5.87 4.59 73.57 564.03
3 10/31/2023 38,695.56 6, 35 4,643.47 464 .35 69.65 5,177.47 2 11/30/2023 38,695.56 46, 35 ,643.47 46 .35 46.43 5,154.25 1 12/31/2023 38,695.56 46, 35 4,643.47 464.35 23.22 5,131.03 Total 472,154.75 210,517.63 21,051.76 2,105.18 1,588.88 24,745.82 TOT Audit Division
8839 N. Cedar Avenue #212
Fresno, CA 93720
Telephone: (559) 221-4710
Email: [email protected]
Please contact HdL Lodging Tax, the City’s TOT Processor, by email if you have any questions. If you disagree with the audit findings, email a written dispute, attach all supporting documentation demonstrating the filings submitted were properly made and email to [email protected] no later than April 11, 2024.

Should you fail to do so, the City’s will finalize the preliminary assessment of TOT liability in the total amount of $95,913.95 by April 18, 2024. Make Check payable to The City of Ridgecrest attach a copy of this letter and mail to the following address:

The payment remittance address is:

TOT AUDIT DIVISION
Attention: Danielle Pilo-Ferguson
8839 N Cedar Ave Suite 212
Fresno, CA. 93720
Your failure to pay the unpaid amounts by April 18, 2024, will result in legal action to recover those amounts along with any costs and attorney’s fees.

Best Regards
The City of Ridgecrest
TOT Audit Division
Hdl9 Lodging Tax

EXHIBIT B
Recipient: Shipper:

ATTN TOTO PRIOCS, SUPER 8'
426 CHINA LK BLVD
RIDGECREST, CA, US, 93555

FINANCE, CITY OF RIDGECREST
100 W CALIFORNIA AVE
RIDGECREST, CA, US, 935554054
The following is the proof-of-delivery for tracking number: 872965004248 Thank you for choosing FedEx
Status:

Signed for by:

Service type:

Special Handling:

Delivered To:

Delivery Location:

Delivery date:

Delivery Information:

Shipping Information:

Tracking number: Ship Date:

Weight:

Deliver Weekday;
Direct Signature Required
Receptionist/Front Desk FedEx Standard Overnight D.DEBORAH 872965004248 Apr 3, 2024 17:01 Delivered April 04, 2024 Dear Customer, 426 S CHINA LAKE BLVD Apr 2, 2024 RIDGECREST, CA, 93555 1 2
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01351.0116/984807.2

COMPLAINT FOR TRANSACTIONS AND USE TAX OWED

SUPERIOR COURT OF THE STATE OF CALIFORNIA

COUNTY OF KERN
CITY OF RIDGECREST, a municipal
corporation,
Plaintiff,
v.

HERITAGE LIVING, LLC, and DOES 1-10,
inclusive,
Defendant.

Case No.

COMPLAINT FOR:

1. AMOUNT OF TRANSIENT
OCCUPANCY TAX OWED;

2. PENALTIES AND INTEREST; AND

3. CONVERSION.

PLAINTIFF CITY OF RIDGECREST ALLEGES AS FOLLOWS:

PARTIES

2. Plaintiff is informed and believes, and based on such information and belief alleges, that Defendant HERITAGE LIVING, LLC, is and at all relevant times has been, a California limited liability company.

3. Plaintiff is ignorant of the true names and/or capacities of Defendants sued herein as DOES 1-10, and as such, sues said DOE Defendants by their fictitious names pursuant to Code of Civil Procedure section 474. Plaintiff will amend this Complaint to show their true names and [Exempt From Filing Fee
Government Code § 6103]
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01351.0116/984807.2 -2-

COMPLAINT FOR TRANSACTIONS AND USE TAX OWED
capacities at such time as they are ascertained. Plaintiff is informed and believes, and based thereon alleges, that each of the Defendants designated herein as a DOE is legally responsible in some manner for the events alleged in this Complaint. References to “Defendants” shall mean each of the Defendants (HERITAGE LIVING, LLC a California Limited Liability Company, and DOES 1- 10) individually..

4. Plaintiff is informed and believes, and on the basis of this information and belief alleges, that at all times herein mentioned, each Defendant herein was the agent and/or employee of each of the other Defendants named herein, and in doing the things herein mentioned, was acting within the scope of his/her/its authority of such agency and/or employment, and with the permission and consent of said other Defendants.

5. Plaintiff brings this action to remedy violations of the Ridgecrest Municipal Code (“RMC”) sections 9-143 and 9-146 in connection with Defendant’s failure to remit the required Transient Occupancy Tax (“TOT”).

6. Plaintiff is informed and believes, and based on such information and belief alleges, that at all relevant times, Defendant operated a hotel at 1050 N. Norma St., Ridgecrest, CA 92555.

7. Venue is proper in this judicial district as the hotel business activities which underlie this lawsuit occurred within the City of Ridgecrest, County of Kern, State of California.

FACTUAL ALLEGATIONS

8. Pursuant to Chapter 9, Article V of the RMC, the City authorized imposition and collection of TOT, and section 9-145 authorized a TOT audit of Defendant, which City recently conducted.

9. Throughout the auditing process, Defendant was uncooperative and refused the City’s request for records necessary to determine TOT liability.

10. On or about March 20, 2024, the City generated an audit report and determined Defendant owed $90,040.26 in TOT, $9,004.03 in penalties, and $2,701.21 in interest for a total of $101,745.49 for the reporting period covering January 1, 2020 through May 31, 2023.

11. On or about April 2, 2024, the TOT Audit Division, under direction of the City’s Finance Director, sent Defendant a letter by FedEx summarizing the TOT audit findings (the 1 2
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01351.0116/984807.2 -3-

COMPLAINT FOR TRANSACTIONS AND USE TAX OWED
“Notice”). The Notice was also sent to Defendant by U.S. mail through the City’s auditor, HdL Companies. The Notice provided information on Defendant’s outstanding amount of TOT due and provided Defendant with an opportunity to submit a written dispute by email until April 11, 2024.

The Notice also stated that if the Defendant did not dispute the audit findings, the outstanding TOT amount would be due by April 18, 2024. A true and correct copy of the Notice is attached as Exhibit A.

12. On or about April 3, 2024, the Notice was delivered by FedEx. A true and correct copy of the FedEx delivery confirmation is attached as Exhibit B.

13. Defendant has failed to dispute or remit any portion of the outstanding TOT, penalties and interest. The City has satisfied all prerequisites to filing this suit.

FIRST CAUSE OF ACTION
VIOLATION OF RIDGECREST MUNICIPAL CODE § 9-143 – AMOUNT OF

TRANSIENT OCCUPANCY TAXES OWED
(Against All Defendants and DOES 1-10)

14. The City repeats and realleges each and every allegation contained in the foregoing paragraphs 1-13, and incorporates them herein by reference.

15. The City has the police power, pursuant to Article XI, Section 7 of the California Constitution, to make and enforce within its limits all local, police, sanitary, and other ordinances and regulations not in conflict with general laws.

16. The City has the authority to collect TOT pursuant to California Revenue and Taxation Code section 7280.

17. RMC section 9-143(b) provides that each operator of a transient lodging facility shall collect TOT from every transient.

18. RMC section 9-141 provides that each transient is subject to and shall pay TOT in the amount of ten percent of the rent charged by the operator.

19. RMC section 9-143(c) provides that each operator shall, on or before the last day of the month following the close of each reporting month, make a return to the tax administrator of the 1 2
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COMPLAINT FOR TRANSACTIONS AND USE TAX OWED
total transient rents charged and received and the amount of TOT collected. The full amount of TOT must be remitted to the tax administrator when the return is filed.

20. RMC section 9-145 provides that if any operator shall fail to timely make any report of the TOT, the tax administrator shall proceed in such manner as he may deem best to obtain facts and information on which to base an estimate of the TOT due. As soon as such facts are available, the tax administrator shall determine and assess against such operator the TOT, interest and penalties. The tax administrator shall give a notice of the amount so assessed by serving it personally or by depositing it in the United States mail, postage prepaid, addressed to the operator so assessed at his last known place of address. The operator shall, within ten days, pay the amount after the serving or mailing of such notice.

21. RMC section 9-140 defines “operator” as the person who is proprietor of the hotel, whether in the capacity of licensee, or any other capacity. Where the operator performs his function through a managing agent of any type or character other than an operator for the purposes of this section, they shall have the same duties and liabilities as his principal. Compliance with the provisions of this section by either the principal or the managing agent shall, however, be considered to be compliance by both.

22. RMC section 9-140 defines “person” as any individual, firm, partnership, joint venture, association, social club, fraternal organization, joint stock company, corporation, estate, trust, business trust, receiver, trustee, syndicate, or any other group or combination acting as a unit.

23. RMC section 9-140 defines “hotel” as any structure, or any portion of any structure, which is occupied or intended or designed for occupancy by transients for dwelling, lodging or sleeping purposes, and including any hotel, inn, tourist home or house, motel, studio hotel, bachelor hotel, lodginghouse, roominghouse, apartment house, dormitory, public or private club, mobilehome or house trailer at a fixed location, or other similar structure or portion thereof.

24. RMC section 9-140 defines “transient” as any person who, for any period of not more than 30 consecutive days, either at his own expense or at the expense of another, obtains lodging or the use of any lodging space in any hotel, for which lodging or use of lodging space a charge is made.
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01351.0116/984807.2 -5-

COMPLAINT FOR TRANSACTIONS AND USE TAX OWED

25. RMC section 9-140 defines “tax administrator” as the finance director or designee.

26. RMC section 9-143(d) further provides that it shall be the duty of every operator to keep and preserve, for a period of three years, all records as may be necessary to determine the amount of such tax as he may have been liable for the collection of any payment to the City, which records the tax administrator shall have the right to inspect at all reasonable times.

27. Pursuant to RMC section 9-143(b) and 9-143(c) it is unlawful for Defendant, who is an operator and person under RMC section 9-140, to fail to remit TOT.

28. Defendant is also in violation of RMC section 9-143(d) by refusing to provide the City with the relevant records for the reporting period of January 1, 2020 through May 31, 2023.

29. The City provided more than the required ten days under RMC section 9-145 to remit payment of the outstanding TOT. Still, Defendant failed to respond to the City’s Notice.

30. As of the date of filing this Complaint, Defendant has failed to make any payment to the City for the TOT owed under the RMC, and thus, is indebted to the City in an amount to be proved at trial, but for a principal sum of not less than $90,040.26.

SECOND CAUSE OF ACTION
VIOLATION OF RIDGECREST MUNICIPAL CODE § 9-146 – AMOUNT OF

PENALTIES AND INTEREST OWED
(Against All Defendants and DOES 1-10)

31. The City repeats and realleges each and every allegation contained in the foregoing paragraphs 1-30, and incorporates them herein by reference.

32. RMC section 9-146(a) provides that any operator who fails to remit any tax imposed by this article within the time required shall pay a penalty of ten percent of the amount of the tax in addition to the amount of the tax.

33. RMC section 9-146(c) provides that in addition to the penalties imposed, any operator who fails to remit any tax imposed by this article shall pay interest at the rate of one-half of one percent per month or fraction thereof on the amount of the tax, exclusive of penalties, from the date on which the remittance first became delinquent until paid. 1 2
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01351.0116/984807.2 -6-

COMPLAINT FOR TRANSACTIONS AND USE TAX OWED

34. Defendant failed to make any payment to the City for the outstanding TOT owed within the necessary timeframe. Thus, Defendant is indebted to the City for all applicable penalties and interest, in an amount to be proved at trial, but for a sum of not less than $11,705.24.

THIRD CAUSE OF ACTION

CONVERSION
(Against All Defendants and DOES 1-10)

35. The City repeats and realleges each and every allegation contained in the foregoing paragraphs 1-34, and incorporates them herein by reference.

36. RMC section 9-143(c) provides that all taxes collected by operators shall be held in trust for the account of the City until payment thereof is made to the tax administrator.

37. RMC section 9-146(d) provides that every penalty imposed and such interest as accrues shall become a part of the tax required to be paid.

38. At all times alleged herein, the City was and is the sole rightful owner of the outstanding TOT amount under the RMC, and all penalties and interest assessed pursuant to the RMC are also part of the debt owed by Defendant to the City.

39. At all times alleged herein, the money due and owing to the City was and is in the possession and control of Defendant. Defendant has taken the outstanding TOT amount for its own use and benefit, thereby permanently depriving the City of the use and benefit thereof.

40. Defendant has failed to comply with the City’s express demand that Defendant remit payment of the outstanding TOT, penalties and interest.

41. At all times alleged herein, Defendant acted willfully, wantonly, with oppression, and with a conscious disregard of the rights of the City, such that the City requests that the trier of fact, in the exercise of sound discretion, award the City additional damages for the sake of example and in sufficient amount to punish Defendant for their conduct.

42. As a direct and proximate result of Defendant’s conduct, the City has, and will continue to, suffer damage in an amount to be determined according to proof at the time of trial. / / /
/ / /
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01351.0116/984807.2 -7-

COMPLAINT FOR TRANSACTIONS AND USE TAX OWED

PRAYER FOR RELIEF
WHEREFORE, Plaintiff prays for judgment against Defendant, and each of them, as follows:

1. For unpaid TOT in an amount to be proven at trial, but in the sum of at least $90,040.26.

2. For penalties and interest in an amount to be proven at trial, but in the sum of at least $11,705.24.

3. For punitive damages in an amount to be proven at trial.

4. For costs of suit incurred herein and attorneys’ fees to the extent allowed by law.

5. For such other relief as the Court may deem just and proper.

DATED: June 11, 2024 ALESHIRE & WYNDER, LLP

MARTIN KOCZANOWICZ
STEPHEN R. ONSTOT

JI HEA OH
By:

JI HEA OH
Attorneys for CITY OF RIDGECREST, a
municipal corporation

EXHIBIT C
TOT Audit Division
8839 N. Cedar Avenue #212
Fresno, CA 93720
Telephone: (559) 221-4710
Email: [email protected]
Super 8 March 28, 2024
Attention: TOT Processor
426 China Lake Blvd
Ridgecrest, CA 93555 10300019

TOT AUDIT FINDINGS
Dear Lodging Provider:

The purpose of this letter is to inform you of the City’s decision regarding the audit findings, and to inform you of the amount owed resulting from the audit.

Where Was it Found? Statistics Report
How was it Calculated? HdL added all taxable amounts and compared them to the TOT returns filed.

Supporting Evidence
Recorded vs. Reported Calculations:

TOT Audit Division
8839 N. Cedar Avenue #212
Fresno, CA 93720
Telephone: (559) 221-4710
Email: [email protected]
TOT Audit Division
8839 N. Cedar Avenue #212
Fresno, CA 93720
Telephone: (559) 221-4710
Email: [email protected]
Finding 2: Assessment
Summary: HdL found the hotel to be uncooperative through the audit.

Additionally, HdL found the hotel did has not filed any TOT returns since May 2023, to present.

Where Was it Found? TOT returns.

How was it Calculated? HdL used the actual data provided by the hotel owners when filing their TOT returns and marked it up 20%
Supporting Evidence
Assessment Calculations:

TOT Audit Division
8839 N. Cedar Avenue #212
Fresno, CA 93720
Telephone: (559) 221-4710
Email: [email protected]
Please contact HdL Lodging Tax, the City’s TOT Processor, by email if you have any questions. If you disagree with the audit findings, email a written dispute, attach all supporting documentation demonstrating the filings submitted were properly made and email to [email protected] no later than April 11, 2024.

The payment remittance address is:

Best Regards
The City of Ridgecrest
TOT Audit Division
TOT Audit Division
8839 N. Cedar Avenue #212
Fresno, CA 93720
Telephone: (559) 221-4710
Email: [email protected]
Heritage Inn March 28, 2024
Attention: TOT Processor
1050 N Norma Street
Ridgecrest, CA 93555-3151 10300017

TOT AUDIT FINDINGS
Dear Lodging Provider:

The purpose of this letter is to inform you of the City’s decision regarding the audit findings, and to inform you of the amount owed resulting from the audit.

Findings Summary Table
Finding 1: Missing Filing Periods
Summary: HdL found the hotel did not file any TOT returns for the periods of May 2023 – September 2023.

How was it Calculated? HdL calculated the average filing amount for 2023 for the periods Jan 2023 – Apr 2023 and Oct 2023 – Dec 2023. HdL multiplied the average amount by 20% and added back the average to determine that amount as the taxable rent owed to the City of Ridgecrest.

Supporting Evidence
Missing Filing Periods Calculations:

Should you fail to do so, the City’s will finalize the preliminary assessment of TOT liability in the total amount of $101,745.49 by April 18, 2024. Make Check payable to The City of Ridgecrest attach a copy of this letter and mail to the following address:

The payment remittance address is:

Best Regards
The City of Ridgecrest
TOT Audit Division

EXHIBIT D
Martin Koczanowicz | [email protected]
p (805) 495-4770 | awattorneys.com
2659 Townsgate Rd., Suite 226 | Westlake Village, CA 91361 November 7, 2024
Heritage Inn & Suite
c/o: K. Solanki and P. Patel
1050 N. Norma Street
Ridgecrest CA 93555
Frank A. Wiser Esq.

Law Offices of Frank A. Weiser
3460 Wilshire Blvd, Suite 1212
Los Angeles, CA 90010
Notice of Temporary Suspension of Business License and
Notice of a Revocation Hearing for such Business License Date and Time: November 20, 2024 6:00pm
Location: Ridgecrest City Hall 100 W. California Ave
Ridgecrest CA 93555
Dear Messrs. Weiser, Solanki and Patel:

Please take notice the City Council at the November 6, 2024 Council meeting temporarily suspended your Business License to operate your hotel in the City of Ridgecrest. This is a request that you immediately cease operating your business till the outcome of the revocation hearing at the next Council meeting.

Please also take notice that on November 20, 2024 at 6:00 pm or as soon thereafter as the agenda permits, the City Council of the City of Ridgecrest will hold a Business License Revocation Hearing pertaining to your license to operate the Heritage Inn (aka Heritage Living LLC) hotel in the City. Staff will be requesting that the Council permanently revoke your license due to the continued non-payment and under reporting of the amounts that are collected by your business for the City’s Transient Occupancy Tax (TOT). The TOT collected from your guests as part of the hotel room charge is the property of the City. The Municipal Code requires that the TOT be submitted to the City on monthly basis, along with the report. Failure to do so, or to do so accurately, is a violation of the Municipal Code and State law.

K. Solanki and P. Patel
Frank A. Wiser Esq.

November 7, 2024

Page 2 ends

The revocation hearing will be in accordance with Ridgecrest Municipal Code Section 9-236 and it will be held in a public Council meeting. Copy of the applicable Code section is attached for your convenience.

ALESHIRE & WYNDER, LLP
Martin Koczanowicz
City Attorney
mt
Sec. 9-236. - Compliance with city ordinances; revocation or suspension of license.

Persons securing licenses under the business license regulations, article VI of this chapter, shall be subject to all regulations and ordinances adopted by the city, including all the regulations set forth in this section and nothing in this section contained shall be construed to create any vested right in any person to the assignment, renewal, reissuance, or continuance of any license and such rights shall be, and remain at all times, vested in the city council.
(1)
The city council may suspend or revoke and cancel any license for good cause shown, which may include, but not be limited to, fraud or misrepresentation in its procurement, or for a violation of any of the provisions of this section, or of any other ordinance of the city, or any state or federal statute, relating to gambling or the sale of intoxicating liquors, committed or permitted on the licensed premises or any other conduct or act permitted on the premises tending to render such premises a common nuisance or a menace to the health, peace, morals, or general welfare of the city, or whenever in the judgment of the city council the public safety demands such revocation or suspension. A public hearing on the issue of suspension, revocation, or cancellation may be requested by the applicant, licensee, or concerned citizens.
(2)
Whenever the council shall receive satisfactory evidence that any operator, his officers, employees, partners, or agents have caused, committed or allowed any act provided in subsection (a) of this section to be grounds for the suspension or revocation of any license issued hereunder, the council may, by written notice serve upon said licensed person, or persons, temporarily suspend such license pending a hearing on the permanent suspension or revocation of such license, which hearing is to be held not more than ten working days after notice of such temporary suspension.
(3)
The notice of the temporary suspension, together with the notice of the hearing thereon, shall be given in writing, and served at least five days prior to the date of the hearing thereon, such service to be upon the licensed operator and/or employee and such notice shall state the grounds of complaint against said licensed operator and/or employee, and the time when, and the place where such hearing shall be held. Deposit of such notice in a United States mail box in a correctly addressed, stamped envelope shall constitute service. The council shall hold the hearing and shall give notice of the determination of the council in the same manner as set forth above.

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CITY COUNCIL/SUCCESSOR REDEVELOPMENT AGENCY/

HOUSING AUTHORITY/FINANCING AUTHORITY AGENDA ITEM
SUBJECT:

Approve A Grant Application To The Office Of Local Defense Community Cooperation (OLDCC) For Federal Funding To Enhance The Resilience Of The Naval Air Weapons Station (NAWS) China Lake And The Surrounding Ridgecrest Community
PRESENTED BY:

Ron Strand, City Manager
SUMMARY:

The City of Ridgecrest is submitting a grant application to the Office of Local Defense Community Cooperation (OLDCC) for federal funding to enhance the resilience of the Naval Air Weapons Station (NAWS) China Lake and the surrounding Ridgecrest community. This project builds upon the 2023 Military Installation Resiliency (MIR) Study, which identified key vulnerabilities and opportunities to strengthen the community’s ability to support the military installation and its mission. This grant is critical not only to maintain the operational readiness of NAWS China Lake but also to address broader community needs, including housing and infrastructure.

Background
NAWS China Lake is a vital military installation located directly north of Ridgecrest. It serves as the Navy’s largest landholder and plays an essential role in research, development, testing, and evaluation (RDAT&E) for cutting-edge weapons systems. The installation's success is intricately linked to the surrounding community, as Ridgecrest provides essential services such as housing, healthcare, and infrastructure to the installation's workforce. Most of the personnel who work at the base live in Ridgecrest, making the city an indispensable partner in supporting the base’s mission readiness.

The 2023 MIR Study, funded by a previous OLDCC grant, identified several risks that could jeopardize both the community and the installation. These risks include natural hazards such as floods and earthquakes, as well as man-made challenges like insufficient workforce housing. Additionally, the base’s access is vulnerable during extreme weather, which poses a direct threat to its operations. The proposed follow-on project is designed to address these concerns by improving land use planning, flood mitigation, and housing availability.

The Proposed Grant
This grant application, titled "Naval Air Weapons China Lake - Military Installation Resilience Follow-On," seeks to build upon the previous study’s findings and implement solutions that will benefit both NAWS China Lake and the Ridgecrest community. The total project cost is estimated at $886,663, with $872,196 requested from federal funds and $14,467 provided by the City of Ridgecrest.

Key Focus Areas
Land Use Compatibility Plan:

The City will develop a Land Use Compatibility Plan (LUCP) that addresses the potential for civilian development to encroach upon military operations. This plan will identify areas around NAWS China Lake that are most vulnerable to such conflicts and provide a framework for future development that ensures both the installation and the community can thrive without compromising each other’s interests. Budget $95,000.

Workforce Housing Needs Assessment:

NAWS China Lake has a highly skilled workforce, but the availability of suitable housing in Ridgecrest is limited. This shortage has made it difficult for the installation to recruit and retain personnel. The proposed housing assessment will analyze current housing conditions and forecast future needs, identifying areas where the City can incentivize development to meet the growing demand for workforce housing. Budget: $80,000.

Bowman Channel Flood Mitigation Project:

Access to NAWS China Lake is often disrupted during heavy rains due to flooding at the installation’s back gate. The Bowman Channel project will provide detailed design plans for a drainage system that will mitigate flooding risks, ensuring that the base remains accessible during extreme weather events. Budget: $560,000.

Tabletop Exercise for Resilience:

A critical component of the project is the organization of a resilience tabletop exercise, where key stakeholders from both the military and civilian communities will come together to assess potential emergency scenarios.

This exercise will help the City and the installation develop coordinated responses to infrastructure disruptions, such as utility failures, flooding, or healthcare crises. The findings from this exercise will inform future planning efforts and improve the region's preparedness for emergency situations. Budget: $75,000.

The grant will also fund a part time position in the city to help manage and coordinate the grant. Budget:
$42,098.

Funding Breakdown
The project is expected to be largely funded by federal dollars, with the City of Ridgecrest contributing a small portion. The $14,467 contribution from the City will primarily cover personnel and indirect costs related to grant management. The federal government will provide $872,196, making up the vast majority of the funding.

Conclusion
The City of Ridgecrest and NAWS China Lake have a deeply interdependent relationship, and both will benefit from the proposed grant project. By addressing key vulnerabilities related to land use, housing, and infrastructure, this project will ensure that the community and the installation are more resilient in the face of future challenges. The staff recommends that the City Council approve this grant application to OLDCC, as it will help safeguard the future of NAWS China Lake and improve the quality of life for the Ridgecrest community.

FISCAL IMPACT: Reimbursement grant: $872,196 with a City in-kind/indirect cost of $14,467.

ACTION REQUESTED: Approve the Resolution
CITY MANAGER / EXECUTIVE DIRECTOR RECOMMENDATION: As requested.

Submitted by: Ronald Strand Action Date: November 6, 2024 RESOLUTION NO. 24-xx

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RIDGECREST TO

APPROVE GRANT APPLICATION TO THE OFFICE OF LOCAL DEFENSE

COMMUNITY COOPERATION (OLDCC) FOR FEDERAL FUNDING TO ENHANCE

THE RESILIENCE OF THE NAVAL AIR WEAPONS STATION (NAWS) CHINA

LAKE AND THE SURROUNDING RIDGECREST AREA
WHEREAS, NAWS China Lake is a critical national military installation located adjacent to the City of Ridgecrest and serves as the Navy’s largest landholder, providing essential support for the U.S. Department of Defense’s research, development, testing, and evaluation (RDAT&E) missions; and,
WHEREAS, the City of Ridgecrest is a key partner in supporting the installation by providing essential services, including housing and infrastructure to its workforce; and, WHEREAS, the City of Ridgecrest previously conducted a Military Installation Resilience Study (MIR) in 2023 that identified key vulnerabilities such as flood risks, housing shortages, and the need for improved land use planning; and,
WHEREAS, the City of Ridgecrest is applying for a federal grant under the Office of Local Defense Community Cooperation’s (OLDCC) Military Installation Resilience program to address these vulnerabilities and strengthen the resilience of both the installation and the surrounding community; and,
WHEREAS, the proposed project, titled “Naval Air Weapons China Lake - Military Installation Resilience Follow-On,” will deliver key outcomes, including a Land Use Compatibility Plan, flood mitigation designs for the Bowman Channel, a workforce housing needs assessment, and a resilience tabletop exercise to prepare for emergency scenarios; and, WHEREAS, the total project cost is estimated at $886,663, with $872,196 to be provided by the federal government, and $14,467 to be contributed by the City of Ridgecrest.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Ridgecrest hereby approves the submission of a grant application to the Office of Local Defense Community Cooperation (OLDCC) for the Naval Air Weapons China Lake - Military Installation Resilience Follow-On Project and:
1) Authorize the City Manager to sign the agreement and any amendments. 2) Authorize the Finance Director to make the necessary adjustments to the FY25 budget to accommodate the grant.

NOW, THEREFORE, BE IT FURTHER RESOLVED that the City Council of the City of Ridgecrest does hereby agree to the above and adopt this resolution.

APPROVED AND ADOPTED this 6
th day of November 2024 by the following vote.

AYES:

NOES:

ABSENT:

ABSTAIN:

Eric Bruen, Mayor
ATTEST:

Ricca Charlon, City Clerk
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Ridgecrest City Council
Successor Redevelopment Agency
Financing Authority
Housing Authority

STAFF REPORT
SUBJECT: A Resolution Of The Ridgecrest City Council Designating Persons To Execute Documents To Obtain Financial Assistance Under P.L. 93-288 As Amended By The Robert T.

Stafford Disaster Relief And Emergency Assistance Act Of 1988, And/Or State Financial Assistance Under The California Disaster Assistance Act
PRESENTED BY: Travis Reed- Deputy City Manager
SUMMARY:

The California Office of Emergency Services (Cal OES) requires that non-State agencies have a current (within the last three years) Resolution on file in order to obtain financial assistance under P.L. 93-288 as amended by the Robert T. Stafford Disaster Relief and Emergency Assistance Act of 1988, and/or state financial assistance under the California Disaster Assistance Act. It is necessary to designate employees occupying certain positions within the City as authorized signers on applications and documents necessary to obtain financial assistance in the event of a qualifying emergency;
On August 19, 2023, Governor’s Proclamations were issued to secure funding to help local jurisdictions respond and recover from the Hurricane Hillary Natural Disaster. The incident period is August 19, 2023, and continuing. The Hurricane Hilliary incident (DR-4750-CA) makes available CDAA funding for eligible costs in Kern, San Bernardino and other Counties.

CDAA application packets must contain the following:
• Project Application California Disaster Assistance Act Program (Cal OES 126) • List of Projects (Cal OES 95)
• Designation of Applicant’s Agent Resolution (Cal OES 130) This resolution and signing authority is needed to help expedite certain reimbursement costs incurred by the City.

FISCAL IMPACT: To be determined.

ACTION REQUESTED:

Authorize the individuals employed in the following designated positions to execute for and on behalf of the City of Ridgecrest applications and documents for the purpose of obtaining financial assistance under Public Law 93-288, 1988 and amendments thereto, and for the purpose of obtaining financial assistance under California Disaster Assistance Act, Chapter 7.5, Division 1 of Title 2 of the Government Code, beginning at section 8680 thereof:
• City Manager, Deputy City Manager & Finance Director
CITY MANAGER’S RECOMMENDATION:

Action as requested
Submitted by: Travis Reed Action Date: Nov. 6th, 2024
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RESOLUTION NO. 24-Xx

A RESOLUTION OF THE RIDGECREST CITY COUNCIL DESIGNATING

PERSONS TO EXECUTE DOCUMENTS TO OBTAIN FINANCIAL ASSISTANCE UNDER P.L. 93-288 AS AMENDED BY THE ROBERT T. STAFFORD
DISASTER RELIEF AND EMERGENCY ASSISTANCE ACT OF 1988, AND/OR

STATE FINANCIAL ASSISTANCE UNDER THE CALIFORNIA DISASTER

ASSISTANCE ACT
WHEREAS, the California Office of Emergency Services (Cal OES) requires that nonState agencies have a current (within the last three years) Resolution on file in order to obtain financial assistance under P.L. 93-288 as amended by the Robert T. Stafford Disaster Relief and Emergency Assistance Act of 1988, and/or state financial assistance under the California Disaster Assistance Act; and,
(a) It is necessary to designate employees occupying certain positions within the City as authorized signers on applications and documents necessary to obtain financial assistance in the event of a qualifying emergency;
WHEREAS, it is resolved by the City Council of the City of Ridgecrest, County of Kern, State of California, as follows;
(1) The above recited facts are true and correct.
(2) The City Council hereby authorizes individuals employed in the following designated positions to execute for, and on behalf of the City of Ridgecrest, applications and documents for the purpose of obtaining financial assistance under Public Law 93-288, 1988 and amendments thereto, and for the purpose of obtaining financial assistance under California Disaster Assistance Act, Chapter 7.5, Division 1 of Title 2 of the Government Code, beginning at section 8680 thereof:
• City Manager
• Deputy City Manager
• Finance Director
(3) The Ridgecrest City Clerk shall send copies of this Resolution to the following:
• Kern County Office of Emergency Services
• Inland Region Administrator of the California Office of Emergency Services • Public Assistance Section of the California Office of Emergency Services APPROVED AND ADOPTED on the 6
th day of November, 2024, by the following vote.

AYES:

NOES:

ABSTAIN:

ABSENT:

______
Eric Bruen, Mayor
ATTEST:

Ricca Charlon, CMC
City Clerk
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CITY OF RIDGECREST
Telephone 760 499-5002
FAX 760 499-1500
100 West California Avenue, Ridgecrest, California 93555-4054 November 6, 2024
California Office of Emergency Services
Public Assistance Section
3650 Schriever Avenue
Mather, CA 95655
Subject: Authorized Agents Names and Titles
Attached is a copy of the Designation of the Applicant’s Agent Resolution that was passed by the Ridgecrest City Council on November 6th, 2024. The names of those individuals associated with the positions designated in the resolution are as follows:
• Ronald Strand, Ridgecrest City Manager
• Travis Reed, Ridgecrest Deputy City Manager
• Cheri Freese, Ridgecrest Finance Director
Please let me know if you need additional information and if I may be of any further assistance.

Please contact me directly anytime you have additional questions or requests at (760) 499-5002 (office) or email me at [email protected]. I appreciate your time and consideration.

Sincerely,
Ricca Charlon, CMC
Ridgecrest City Clerk
Attachment: Cal OES 130
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Ridgecrest City CouncilNovember 6, 2024

Ridgecrest City Council
November 6, 2024