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 20, 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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To participate with verbal comments, please call (760) 499-5010. This phone line will allow only one caller at a time, so if the line is busy, please continue to dial. We will be allowing a 20-30 second delay between callers to give time for media delays and callers to dial in. If you wish to comment on multiple items you will need to call in as each item is presented.
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 20, 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 – two cases
Existing Litigation Government Code Section 54956.9.
City of Ridgecrest v. Heritage Living LLC
City of Ridgecrest v. Super 8 Hotels
Dated: November 14, 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
AGENDA
Wednesday, November 20, 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 – two cases
Existing Litigation Government Code Section 54956.9.
City of Ridgecrest v. Heritage Living LLC
City of Ridgecrest v. Super 8 Hotels
REGULAR SESSION
• Pledge Of Allegiance
• Invocation
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 Special Meeting Dated October 30, 2024 Charlon
2. Proposed Action To Approve Draft Minutes Of The Ridgecrest City Council Regular Meeting Dated November 6, 2024 Charlon
3. Authorization For The City Manager, Ron Strand, To Sign The Notice Of Completion For The Demolition Of Pinney Pool Site; For The City Clerk To File The Notice Of Completion And For City Staff To Release Retention In The Amount Of Sixteen Thousand Two Hundred Fifty Dollars And Zero Cents ($16,250.00) To The Contractor, Resource Environmental Inc., Within Thirty (30) Days After Recordation Of The Notice Of Completion Wegener
PUBLIC HEARING
4. Public Hearing And Request For The Permanent Revocation Of Business Licenses For Heritage Living LLC And Super 8 Hotels (Ridgecrest Municipal Code Section 9-236) Attorney
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 December 5, 2024
AGENDA - CITY COUNCIL / SUCCESSOR REDEVELOPMENT AGENCY / FINANCING AUTHORITY / HOUSING AUTHORITY REGULAR – November 20, 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
➢ Next meeting December 2, 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
➢ Report from 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
➢ Next meeting November 28, 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 December 3, 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
➢ Report from November 20, 2024
OTHER COMMITTEES, BOARDS, OR COMMISSIONS
CITY MANAGER REPORT
FUTURE AGENDA ITEMS
MAYOR AND COUNCIL COMMENTS
ADJOURNMENT
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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 Special Meeting Dated October 30, 2024
PRESENTED BY: Ricca Charlon, City Clerk
SUMMARY:
Draft Minutes of the City Council / Successor Redevelopment Agency / Housing Authority / Financing Authority Special Meeting Dated October 30, 2024 FISCAL IMPACT: None
ACTION REQUESTED: Approve minutes
CITY MANAGER’S RECOMMENDATION: Action as requested
Submitted by: Ricca Charlon Action Date: November 20, 2024 This Page Intentionally Left Blank
RIDGECREST CITY COUNCIL
SUCCESSOR REDEVELOPMENT AGENCY
FINANCING AUTHORITY
HOUSING AUTHORITY
DRAFT MINUTES
Wednesday, October 30, 2024 Special Session – 5:15 p.m.
ROLL CALL – 5:15 p.m.
Council Present: Mayor Pro-Tem Solomon P. Rajaratnam; Vice Mayor Kyle Blades; Council Member L. Scott Hayman; Council Member Skip Gorman
Absent: Mayor Eric A. Bruen
Staff Present: City Attorney M. Koczanowicz (WebEx); City Manager Strand; City Clerk Charlon; Parks & Rec Director Wegener; Public Works Director Reed
APPROVAL OF AGENDA
Motion To Approve Agenda – Blades - Hayman 4 Ayes; 1 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.
REGULAR SESSION
COUNCIL ANNOUNCEMENTS/DIRECTION
DISCUSSION / ACTION
Approval Of Additional Expenditures From The Park Impact Fees Account To Correct The Orientation Of The Pickleball Lines On The Tennis Courts From East/West To North/South Wegener Public Comment – B. Bechtel; P. Fry
Motion To Approve – Blades - Gorman – 4 Ayes; 1 Absent
CITY MANAGER REPORT
MAYOR AND COUNCIL COMMENTS
ADJOURNMENT - 5:28 p.m.
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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 November 6, 2024
PRESENTED BY: Ricca Charlon, City Clerk
SUMMARY:
Draft Minutes of the City Council / Successor Redevelopment Agency / Housing Authority / Financing Authority Regular Meeting Dated November 6, 2024 FISCAL IMPACT: None
ACTION REQUESTED: Approve minutes
CITY MANAGER’S RECOMMENDATION: Action as requested
Submitted by: Ricca Charlon Action Date: November 20, 2024 This Page Intentionally Left Blank
RIDGECREST CITY COUNCIL
SUCCESSOR REDEVELOPMENT AGENCY
FINANCING AUTHORITY
HOUSING AUTHORITY
DRAFT MINUTES
Wednesday, November 6, 2024 Closed Session – 5:30 p.m.
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 – 5:30 p.m.
Council Present: Mayor Eric A. Bruen; Mayor Pro-Tem Solomon P. Rajaratnam; Vice Mayor Kyle Blades; Council Member L. Scott Hayman; Council Member Skip Gorman
Absent: None
Staff Present: City Attorney M. Koczanowicz; City Manager Strand; City Clerk Charlon; Chief Ysit; Finance Director Freese; PW Director Reed
APPROVAL OF AGENDA
Motion To Approve Agenda– 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.
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 6:00 p.m.
ATTORNEY REPORT OUT OF CLOSED SESSION – No reportable action
PRESENTATION
Law Enforcement Records And Support Personnel Appreciation Week Proclamation Council PUBLIC COMMENT OF ITEMS NOT ON THE AGENDA – E. Hutmacher
COUNCIL ANNOUNCEMENTS/DIRECTION
CONSENT CALENDAR
1. Proposed Action To Approve Draft Minutes Of The Ridgecrest City Council Regular Meeting Dated October 16, 2024 Charlon
DRAFT MINUTES - CITY COUNCIL / SUCCESSOR REDEVELOPMENT AGENCY / FINANCING AUTHORITY / HOUSING AUTHORITY REGULAR – November 6, 2024
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
Motion To Approve Consent Calendar – Blades - Gorman – 5 Ayes
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 Attorney shared staff report. Recommends no action today based upon current conversations and for setting a license revocation hearing for Nov. 20th @ 6pm. Counsel for hotels waves notice.
Public Comment – F. Wiser
Motion To Approve Attorney Recommendation– Hayman - Gorman – 5 Ayes
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
Public Comment – None
Motion To Approve – Blades - Hayman – 5 Ayes
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
Public Comment – None
Motion To Approve – Gorman - Blades – 5 Ayes
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 - canceled
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 - canceled
DRAFT MINUTES - CITY COUNCIL / SUCCESSOR REDEVELOPMENT AGENCY / FINANCING AUTHORITY / HOUSING AUTHORITY REGULAR – November 6, 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
OTHER COMMITTEES, BOARDS, OR COMMISSIONS
CITY MANAGER REPORT
FUTURE AGENDA ITEMS
MAYOR AND COUNCIL COMMENTS
ADJOURNMENT – 7:11 p.m.
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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 Demolition Of Pinney Pool Site; For The City Clerk To File The Notice Of Completion And For City Staff To Release Retention In The Amount Of Sixteen Thousand Two Hundred Fifty Dollars And Zero Cents ($16,250.00) To The Contractor, Resource Environmental Inc., Within Thirty (30) Days After Recordation Of The Notice Of Completion
PRESENTED BY: Nerissa Wegener, Parks and Recreation Director SUMMARY: The Contractor, Resource Environmental Inc. has finished the project that consisted of the demolition of the Pinney Pool facility. With the work being completed on October 10, 2024. The project accounting is as follows:
The original budget amount including 10% Contingency: $357,500 BID Amount: $325,000
Construction Contingency: $32,500
Total contract Amount: $325,000
Project was delivered under budget.
With the work completed and the exception of the 5% retention in the amount of Sixteen Thousand Two Hundred Fifty Dollars and Zero Cents ($16,250.00) the contractor Resource Environmental 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: Use of already budgeted Measure P Funds for the Pinney Pool Demo project in the amount of $325,000. There is a total project remainder amount of $32,500.00 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 $16,250.00 to the Contractor, Resource Environmental 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 20, 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 DEMOLITION OF PINNEY POOL SITE; FOR
THE CITY CLERK TO FILE THE NOTICE OF COMPLETION AND FOR CITY STAFF
TO RELEASE RETENTION IN THE AMOUNT OF SIXTEEN THOUSAND TWO HUNDRED FIFTY DOLLARS AND ZERO CENTS ($16,250.00) TO THE CONTRACTOR, RESOURCE ENVIRONMENTAL INC., WITHIN THIRTY (30) DAYS
AFTER RECORDATION OF THE NOTICE OF COMPLETION
WHEREAS, the Contractor, Resource Environmental Inc., has completed the Demolition of the Pinney Pool located at 205 S. Warner St.; and, WHEREAS, with the work completed and the exception of the retention amount of Sixteen Thousand Two Hundred Fifty Dollars and Zero Cents ($16,250.00) the contractor Resource Environmental 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 demolition of the Pinney Pool Site
3. Authorizes City Staff to release retention in the amount of Sixteen Thousand Two Hundred Fifty Dollars and Zero Cents ($16,250.00) the contractor Resource Environmental 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 20th 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 10, 2024
8. The work of improvement completed is described as follows: Demolition of the existing pool site
9. The NAME OF THE ORIGINAL CONTRACTOR, if any, for such work of improvement is: Resource Environmental, Inc
10. The street address of said property is: 205 S. Warner St, 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:
Sgt. John Pinney Pool
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: Public Hearing And Request For The Permanent Revocation Of Business Licenses For Heritage Living LLC And Super 8 Hotels (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 (TOT) 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 retained by the operators and not paid to the City were estimated at approximately $100,000 each. As of October 2024, the amount of TOT and penalties owed by operators has increased to over $120,000 for Super 8 and over $355,000 for Heritage. Operators have received credit for a $13,818.17 payment but have otherwise failed to remit additional payment in any amount toward the total owed. The litigation is ongoing with the Defendants being currently in default for failure to timely respond to the Complaints. Default hearing is expected to be set by the Court before the end of the year.
At the last Council meeting the attorney for the hotels expressed his clients’ interest in resolving the matter. As of the time of this staff report a settlement demand that was sent to Mr. Weiser on November 12 has not been responded to.
PERMANENT REVOCATION:
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 years for which payments have not been submitted by either hotel. Attached as Exhibit B, 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.
Ridgecrest City Council
Successor Redevelopment Agency
Financing Authority
Housing Authority
STAFF REPORT
Consistent with the provisions of the RMC Section 9-236(3) staff is requesting that City Council permanently revoke the Business Licenses for Heritage and Super 8,and direct staff to send Notice and a Cease and Desist Order (Exhibit C) of revocation to the Licensees.
This request is based on the fact that both businesses have been operating in violation of City’s Ordinances, as well as state laws.
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:
Revocation of the Business Licenses and closure of the two hotels will result in potential decrease in available lodging when the City “sells out” a few times a year, but on regular basis the difference will be absorbed by other hotels in town. Costs of any legal action to enforce the closure would be recoverable by the City when it prevails.
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 permanently revoking the Business Licenses for Super 8 and Heritage at the hearing for Revocation of those Licenses for the November 20th 2024 Council meeting.
CITY MANAGER’S RECOMMENDATION:
Concur with Recommended action
Submitted by: Martin D. Koczanowicz City Attorney Action Date: November 20 2024 (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
Gross
Receipts Exemptions Penalties/ Interest TOT RTID Total Gross Receipts Exemptions Penalties/ Interest TOT RTID Total 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 July 2024 $ 226,783.25 $ 2,381.22 $ 22,678.33 $ 13,040.04 $ 35,718.36 $ 9,827.00 $ 108.10 $ 982.70 $ 565.05 $ 1,547.75 August 2024 $ 205,086.49 $ 2,153.41 $ 20,508.65 $ 11,792.47 $ 32,301.12 $ 8,627.00 $ 90.58 $ 862.70 $ 496.05 $ 1,358.75 September 2024 $ 226,568.36 $ 2,265.68 $ 22,656.84 $ 13,027.68 $ 35,684.52 $ 11,250.00 $ 118.13 $ 1,125.00 $ 646.88 $ 1,771.88 October 2024 $ 241,579.54 $ - $ 24,157.95 $ 13,890.82 $ 38,048.78 $ 15,612.00 $ - $ 1,561.20 $ 897.69 $ 2,458.89 TOTAL WITH PEN/INT $ 312,451.93 TOTAL WITH PEN/INT $ 93,021.26 TOTAL W/O PEN/INT $ 297,292.39 TOTAL W/O PEN/INT $ 87,615.90 $ 267,393.73
$ 209,676.49
Legend *
Gross Receipts
Exemptions
TOT
RTID
Penalties/Interest
HdL Companies
SkyTouch Technology
Note:
Estimated Transient Occupancy Payment Summary
Heritage Inn & Suites October 2023 - October 2024
TOTAL OWED WITH PEN/INT
TOTAL OWED W/O PEN/INT
*This is an estimated total due per the information provided by SkyTouch Technology. **Estimated Gross Receipts for Septemeber and October 2024 are based off the previous year's gross receipts.
Reporting Period
Information Provided by SkyTouch Technology Reported to HdL Companies For any late payment, 10% of TOT is charged first day the A TOT management company that manages and processes TOT A hotel property management systems that Heritage Inn & Suites The TOTAL OWED WITH PEN/INT includes a 25% penalty, due 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 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 Reporting Period Gross
Receipts Exemptions Penalties/ Interest TOT RTID Total
October 2023 $ 14,811.16 $ 229.57 $ 1,481.12 $ 444.33 $ 1,925.45 November 2023 $ 14,811.16 $ 222.17 $ 1,481.12 $ 851.64 $ 2,332.76 December 2023 $ 14,811.16 $ 214.76 $ 1,481.12 $ 851.64 $ 2,332.76 January 2024 $ 14,811.16 $ 207.36 $ 1,481.12 $ 851.64 $ 2,332.76 February 2024 $ 14,811.16 $ 199.95 $ 1,481.12 $ 851.64 $ 2,332.76 March 2024 $ 14,811.16 $ 192.55 $ 1,481.12 $ 851.64 $ 2,332.76 April 2024 $ 14,811.16 $ 185.14 $ 1,481.12 $ 851.64 $ 2,332.76 May 2024 $ 14,811.16 $ 177.73 $ 1,481.12 $ 851.64 $ 2,332.76 June 2024 $ 14,811.16 $ 170.33 $ 1,481.12 $ 851.64 $ 2,332.76 July 2024 $ 14,811.16 $ 162.92 $ 1,481.12 $ 851.64 $ 2,332.76 August 2024 $ 14,811.16 $ 155.52 $ 1,481.12 $ 851.64 $ 2,332.76 September 2024 $ 14,811.16 $ 148.11 $ 1,481.12 $ 851.64 $ 2,332.76 October 2024 $ 14,811.16 $ - $ 1,481.12 $ 851.64 $ 2,332.76 TOTAL WITH PEN/INT $ 32,184.65
TOTAL W/O PEN/INT $ 29,918.54
Legend
Gross Receipts
Exemptions
TOT
RTID
Penalties/Interest
HdL Companies A TOT management company that manages and processes TOT accounts for the City of Ridgecrest as well as audits them.
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.
Estimated Transient Occupancy Payment Summary
Super 8 October 2023 - October 2024
*This is an estimated total based on an average of Super 8's gross receipts that they reported from when they purchased the property to when they stopped paying plus 20% markup due to the audit findings of HdL Companies.
Transient Occupancy Tax is charged at a rate of 10% of the gross receipts.
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.
EXHIBIT C
Martin Koczanowicz | [email protected]
p (805) 495-4770 | awattorneys.com
2659 Townsgate Rd., Suite 226 | Westlake Village, CA 91361 November 20, 2024
Heritage Inn & Suite
C/o: K. Solanki and P. Patel
1050 N. Norma Street
Ridgecrest CA 93555
Notice of REVOCATION of Business License and
ORDER to cease and desist operation of HERITAGE INN AND SUITE hotel Dear Messrs.: Solanki and Patel:
Please take notice the City Council at the November 20, 2024 Council meeting, based on evidence presented by all interested parties revoked the Business License to operate your hotel in the City of Ridgecrest. This is an order that you immediately cease operating your business.
This revocation and a cease and desist order are based on 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.
The revocation and cease and desist order are issued in accordance with Ridgecrest Municipal Code Section 9-236 and, if needed will be enforced by Court Action.
ALESHIRE & WYNDER, LLP
Martin Koczanowicz
City Attorney
mt
Martin Koczanowicz | [email protected]
p (805) 495-4770 | awattorneys.com
2659 Townsgate Rd., Suite 226 | Westlake Village, CA 91361 November 20, 2024
Super 8 Ridgecrest
C/o: Manager and K. Solanki and P. Patel
426 S. China Lake Blvd.
Ridgecrest CA 93555
Notice of REVOCATION of Business License and
ORDER to cease and desist operation of SUPER 8 RIDGECREST hotel Dear Messrs.: Solanki and Patel:
Please take notice the City Council at the November 20, 2024 Council meeting, based on evidence presented by all interested parties revoked the Business License to operate your hotel in the City of Ridgecrest. This is an order that you immediately cease operating your business.
This revocation and a cease and desist order are based on 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.
The revocation and cease and desist order are issued in accordance with Ridgecrest Municipal Code Section 9-236 and, if needed will be enforced by Court Action.
ALESHIRE & WYNDER, LLP
Martin Koczanowicz
City Attorney
mt