CALL TO ORDER / FLAG SALUTE/ROLL CALL

INSPIRATION
ITEM #1 - Sergeant Promotions of: Mike Hamrick, Baltazar Tapia, and Rocque Lopez
PUBLIC COMMENT
AGENDA APPROVAL FOR CITY COUNCIL
CONFLICT OF INTEREST DECLARATION PRESENTATIONS
CONSENT CALENDAR
BUSINESS ITEMS
ITEM #6 - Approval of General Fund Capital Reserve Policy
ITEM #7 - Discussion of Potential Revisions to Cannabis Program
PUBLIC HEARINGS
ITEM #8 - Continued Hearing on Annual Development Agreement Compliance Review for Tradecraft Farms and Finding of Exemption from CEQA
CITY MANAGER COMMENTS AND REPORTS COUNCILMEMBERS’ REPORTS AND COMMENTS
REQUEST FOR FUTURE AGENDA ITEMS
ADJOURNMENT
Welcome everyone to the City Council regular meeting. I am calling this meeting to order. The time is now 630. 00:01:03
Please stand and. 00:01:11
For the flag salute. 00:01:14
Begin. 00:01:21
I pledge allegiance to. 00:01:22
And second problem city. 00:01:26
The injustice. 00:01:32
Madam Clerk, may you please take. 00:01:43
Councilmember Gama, Councilmember Hernandez, Council Member McQueen Lejeune, Mayor Pro Temperez and Mayor Martinez. 00:01:46
Tonight's inspiration will be given by Council member. 00:01:55
Thank you, Mayor Martinez. A couple days ago I went over. 00:01:59
Teen Center at the Boys and Girls Club over there at. 00:02:04
At the Orvine Carpenter Community Center. 00:02:08
Osvaldo is organizing teens to clean up bubbling springs. 00:02:12
And we're talking. And I was giving him some buckets. 00:02:17
So that he could have the kids participate in taking care of building springs and we were talking and somehow, some way. 00:02:21
Father came. 00:02:28
And he says, yo, my dad does this and. 00:02:30
He goes that's what he picks U trash out of Bubbling Springs Creek. I go really. I noticed this guy over there anyways. 00:02:32
Bottom line is Javier Godina has been doing this for a very long time. 00:02:39
And it really shows and. 00:02:44
The great inspirational story, so I'm just going to tell it real quickly. 00:02:47
Javier Godina immigrated to the USA in 1980 at the age of 18. He lives in Colonia. He came from a town called Zacatecas. 00:02:51
He was raised in a small ranching community. His first job in Oxnard was lemon packaging. His second job was at the mushroom farm 00:03:01
for nearly 24 years. 00:03:05
He bought his first home before he bought his first car in Port Hueneme. 00:03:10
At the age of 25. 00:03:16
After the mushroom farm 24 years there, he became a plumber and he has been working independently ever since. 00:03:18
Currently, he lives in Winemia and takes care of the Creek behind his condo. He pulls out the trash and sometimes there's big 00:03:24
stuff in there and he's taking it upon himself to keep that Creek nice and clean. 00:03:29
And it it. 00:03:35
The environment it helps our city, but more importantly, it gives. 00:03:37
Mr. Godina, a sense of pride in in. 00:03:43
In his living space. And So what we like to say is just a little bit every week. If you pick up just a little bit of litter every 00:03:47
week, it'll make a big. 00:03:52
A big difference overtime and you can see the wildlife is thriving there. 00:03:58
And we really appreciate Mr. Godina for his efforts in keeping this Creek beautiful and free of rubbish. 00:04:03
Would. 00:04:13
And here he is with his family, interesting and left. His children are highly educated. 00:04:15
And he has five children, three boys and two girls. All have bachelor degrees. 00:04:20
Who went to UCLA to went to Northridge One to Cal State Channel Islands. The oldest is an Army combat veteran. 00:04:26
And. 00:04:33
It's the American dream and it's very inspiration. So all you young kids out here today. 00:04:35
Tonight. 00:04:40
We wish you success like Mr. Godina and Mr. Godina, if you could meet me down at the. 00:04:42
Podium, I'd like to give you a certificate. 00:04:48
I'd like to just read it real quickly and we'll get on with this meeting. 00:05:06
Javier Godina is an inspiration to his community as he has for many years taken the responsibility of keeping Bubbling Springs 00:05:09
Creek litter free behind his home. 00:05:14
He has shown all a little bit goes a long. 00:05:19
With community service and adds up to a large positive impact for his community. Not only does the Creek benefit, but the wildlife 00:05:24
does as well. His efforts in removing rubbish is improving our coastal environment. I hereby recognize his efforts as an 00:05:29
inspiration to all. 00:05:34
Thank you Councilmember Gama, for your wonderful inspiration. 00:05:49
At this. 00:05:53
When in time, I'm going to propose that we actually do the. 00:05:54
Sergeant Promotions presentation first, since we have quite a number of. 00:05:58
Public comments. I'm making the motion that we move the Sergeant presentation first. 00:06:03
May we take? 00:06:10
Ro. 00:06:12
All in favor. 00:06:13
Alright. 00:06:14
All. 00:06:15
Hearing none motion passes unanimously. 00:06:16
I'd like to call up Police Chief Federic. 00:06:19
For our next 4 hour presentation. 00:06:22
Thank you. 00:06:31
We are here tonight to acknowledge the promotions of Mike. 00:06:33
Balthazar Tapia and Roki Lopez. 00:06:37
To the rank of. 00:06:39
And to honor them for their dedicated service to public safety and our community. 00:06:43
The role of. 00:06:48
Is so incredibly important in any Police Department. 00:06:50
But so much more important in a smaller agency like Port Windy. 00:06:54
As shift supervisors and team unit supervisors, they are the link between the community and the Police Department on a daily 00:06:59
basis. 00:07:03
They will be your watch commanders and your detective supervisors. 00:07:08
There are also the link between the frontline police employee and police management. 00:07:12
They have tremendous impact on the lives and careers of officers and professional staff. 00:07:18
As they are not only the ones who lead and hold others accountable. 00:07:24
They are teachers and mentors to their less tenured team members. 00:07:29
For the first time in the city's history, we get to promote 3 Sergeant positions at the same time. 00:07:35
And folks, this is. 00:07:42
To the cooperative efforts of the Police Department, city staff, your city manager and your City Council and creating an 00:07:45
additional police Sergeant position earlier this year. 00:07:50
You will hear that all. 00:07:58
Of. 00:08:00
News sergeants have extensive. 00:08:01
In our. 00:08:05
And service to our. 00:08:06
And when I say service to our community, I mean beyond the walls of the police station and their roles as peacekeepers. 00:08:09
All three have been part of helping out our community and capacity, such as football coaches. 00:08:16
Youth mentors and helping out nonprofits and charities. 00:08:22
They are all examples of your dedicated members. 00:08:26
Of your ORT when you mean Police Department. 00:08:30
Now, first one I'd like to bring. 00:08:34
Is. 00:08:36
Sergeant Mike Hamrick started his law enforcement career in 1992 with the San Bernardino Police Department. 00:08:49
During his 18 years with the San Bernardino Bernardino Police Department. 00:08:55
He worked the city's first Operation Safe Streets program, Multiple Enforcement Team Gang Enforcement Unit and was a gang 00:09:00
awareness instructor. 00:09:04
And he was also a SWAT team. 00:09:09
He eventually promoted to the rank of corporal and detective as a mid level supervisor and failed training officer. 00:09:12
As a detective in San Bernardino, he worked. 00:09:18
The specialized Crime division and investigated crimes against children, domestic violence and sexual assaults. 00:09:20
He was also assigned to the homicide detail, investigating homicides, officer involved, shootings in high profile death 00:09:27
investigations. 00:09:31
Fortunately in 20. 00:09:36
He. 00:09:38
To our port winding police. 00:09:39
During his time here at PHPD, he has served as a field training officer and as the Police Officers Union Board president. 00:09:43
He was assigned to detectives for several years, working all assignments in investigations, including Major Crimes. 00:09:50
Micros promoted a senior officer where he was a mid level supervisor on patrol. 00:09:59
Just prior to his promotion. Now to. 00:10:04
Would you like to talk about family? Sure, sure. Thank you. 00:10:09
Thank you, Chair. 00:10:13
Thank you, City Council. Thank you City Manager. Thank all of you for for this opportunity. Thank you Chief Federico. 00:10:15
Command Staff Commander Al. 00:10:20
And my colleagues, thank all of you very much. This has been a journey 31 years to get to this level. 00:10:23
So I truly appreciate all your sacrifices you've made for me and believing in me. 00:10:30
Um. 00:10:36
I'd be remiss though. 00:10:37
Obviously think some very, very special people in my life. 00:10:38
I'll try not to get emotional because it's a very emotional time for me. 00:10:43
No, I'm not. 00:10:46
I want to thank my family first and foremost. 00:10:49
I have some some brother-in-law's here, Sister-in-law's. I have some nieces and nephews here. 00:10:52
Umm. 00:10:59
I have some very, very special people in my life. My three sons. Thank you guys for your support. Thanks for pushing, Dad. I 00:11:00
appreciate you being in my corner. 00:11:04
My brother who surprised me today from Oklahoma. 00:11:09
Came out here, he's a retired law enforcement. 00:11:12
He came out and surprised me for this. 00:11:15
He's been there for for a lot of these. 00:11:19
Long talks, especially at night, working nights, you know, Should I stay in the game? He's had a huge, huge shoulder to lean on, 00:11:22
so I appreciate it. 00:11:26
And lastly, I'd be remiss if I didn't. I didn't discuss and introduce my beautiful wife. 00:11:30
Bernie 30 years of marriage. 00:11:36
Sacrificed. We all know that our wife sacrificed tremendous for this career. 00:11:39
She's been there with the sacrifices for me, her unwavering support. She's the best cut man in the business. She put me back in 00:11:44
the fight every time. 00:11:49
And. 00:11:53
That's the reason why I'm here. 00:11:55
Thank you guys very much. I love you all very much. 00:11:56
And as tradition. 00:12:08
He will. His wife will do a badge pinning for his new Sergeant bench. 00:12:10
M. 00:12:22
That's under. 00:12:23
And and every officer has a watch commander. But we always say in our industry, the other watch commander is the spouse. They 00:13:12
always have to check in with the spouse about everything they do. 00:13:16
And folks, I might have mentioned at the last council meeting, but not this one, We didn't loosen our facial standards. 00:13:20
Are growing our facial hair for November Men's health awareness. 00:13:27
We're adopted the Movember movement for men's health. So this month, only December 1st they're coming off and then they can be mad 00:13:32
at me for making them shaving off so. 00:13:35
Baltazar Tapia. 00:13:43
Some of these are special for me because, you know, I started out at the department 30 years ago and then I left. Santa Monica 00:13:52
came back. 00:13:55
Some of these kids were here and now. 00:13:59
Veter. 00:14:02
These. 00:14:04
Or the reason I'm back, you know, so very. 00:14:06
Not Mike. Mike's got more years on than me. 00:14:11
Umm. 00:14:16
During the past 25 years. 00:14:17
Sergeant Happy has climbed the ranks and was assigned to a variety of positions within. 00:14:20
The department. 00:14:24
Including our former youth program, the STAR program as a coordinator. 00:14:26
As an Explorer, Advisor, Reserve Officer, Coordinator, Field Training Officer. 00:14:30
Property Crimes Detective Major Crimes Detect. 00:14:35
Special problems unit member and AK-9 handler, and at one point we had multiple canines. He was the team leader supervising a team 00:14:37
of 5K9 handlers. 00:14:42
Along with the above assignment Sergeant Tappy also. 00:14:48
A drug recognition expert and instructor not only in Ventura County folks, but throughout the state. 00:14:51
He has worked with the Ventura County Auto Theft Task Force, where he received state commendations for his work. 00:14:57
He was also assigned to the Ventura County Sheriff's Narcotic Task Force as a narcotics investigator who participated in numerous 00:15:04
narcotics investigations. 00:15:08
Along with other experience, investigators and law enforcement personnel, including the US Marshals. 00:15:12
The DEA and the FBI. 00:15:17
These investigations involve the UN. 00:15:20
Import and distribution of controlled substances by cartel. 00:15:24
And included laundering of narcotics proceeds. 00:15:28
His duties include being the lead case agent, conducting surveillance, debriefing defendants witnesses. 00:15:31
And recruiting and directing informants. 00:15:38
And obtaining and executing search. 00:15:41
After the task force, Sergeant Happier returned to the Port Winnie Police Department, where he began. 00:15:45
Assisting with Major Crimes Investigations as the Major Crimes Detective and he was also, prior to his promotion, the Interim 00:15:49
Detective Sergeant as he mentored our newer detectives. 00:15:54
Congratulations, Walt. 00:16:01
I want me to say a few words and talk about the family. 00:16:05
First and foremost, Mayor, council members, thank you everyone here. 00:16:11
You know, it's not just me, it's the other two sergeants that got promoted. But I truly just want to say that I'm homegrown. 00:16:16
Born in Oxnard, went to winning. 00:16:22
This is the career that I wanted to do. 00:16:25
My senior year in high school when I met Chief. 00:16:30
Chief Federico now we met when he was an officer. He is now my 7th chief. 00:16:33
I've been here. I know the culture. I give my all to this city. 00:16:38
And I couldn't do that without the support of my family, which has always been there. It's been like my rock. 00:16:43
My wife, Susan and my kids. 00:16:49
Thank you so much. 00:16:52
I I. 00:16:53
I can't say any more than that because. 00:16:54
I I try to show them, not just tell them. 00:16:57
So again, thank you. 00:17:00
And I appreciate the recognition so. 00:17:02
No. 00:17:05
Rocky Lopez. 00:18:00
Also, I sat. 00:18:13
Oral board with Ron. 00:18:15
On his first hire into the. 00:18:18
Over 20 years ago. 00:18:21
Um. 00:18:23
That I'm back here and now he's one of my veteran officers is incredible. 00:18:26
In 2002, Roki Lopez began his career as a reserve police officer for the poor. Whitney Police Department, 2003. 00:18:32
He was hired as a full time police. 00:18:40
And subsequently promoted to senior officer. 00:18:42
During his twenty year career, he has been assigned as a patrol officer. 00:18:45
In a canine police officer. 00:18:50
And he was a sign in the special problems. 00:18:52
As an investigator with his canine. 00:18:55
He's been a drug recognition expert, field training officer, arrest and control instructor. 00:18:59
Taser Instructor, Pepper Ball Instructor, Firearms and Range Master. 00:19:05
And prior to this position, a senior police officer. 00:19:10
But in one of the last assignments, as a senior officer, he was entrusted in the role of Acting Sergeant, which he successfully 00:19:15
filled just prior to this appointment. 00:19:19
Due to our shortage of SER. 00:19:23
He has a permanent. 00:19:26
Congratulations. 00:19:28
Thank you. I want to thank Council. 00:19:37
The opportunity, Chief. 00:19:40
Commander. 00:19:42
My colleagues, I have had really good mentors over 20 years. 00:19:43
Career here, some of which are still working here. Sergeant Tapia is one of them. 00:19:48
Sergeant Perez has helped guide me. 00:19:54
Drag me sometimes to help find the way. 00:19:57
I'm in a unique opportunity here at the Police Department. My father was working here in the 80s. 00:20:02
As a reserve. 00:20:08
He got out of the business per SE for a while and. 00:20:11
He recommended I. 00:20:14
Because he enjoyed it so. 00:20:16
So I applied and I've been here ever since and when I got off training. 00:20:18
I started being able to take on right along as my dad wanted to come on a ride along with me. 00:20:24
He ended up watching me get a foot pursuit and it sparked a bug to come back, and he did. 00:20:31
And. 00:20:37
Working with them now here at the Police Department. 00:20:38
So. So I'm appreciative of my father. 00:20:41
Because I get to work with him, because he's guided me through. 00:20:44
In my career. 00:20:48
It's been amazing. 00:20:49
So I'm appreciative for. 00:20:51
My family. 00:20:53
She's my hair. 00:21:05
My Backbone. 00:21:08
I have 5 kids. 00:21:13
I want to thank. 00:21:17
20 years here I try to put my best foot forward. 00:21:19
And sometimes that means that you, you miss birthdays, you miss holidays. 00:21:25
And without the support of your family, you can't. You can't do those things. 00:21:30
So I'm. 00:21:35
My wife, Grace. 00:21:36
I love her. 00:21:41
I don't know how, but she she's stuck with me and I I'm very appreciative of it and helped me. 00:21:45
Tremendously my kids, for all the times that. 00:21:50
I wasn't there, and I should. 00:21:53
And it's not necessarily that their years of experience can help them accomplish anything on this job. Sometimes it's because 00:22:32
they've had five kids and so they can handle anything. So it's pretty amazing. Thank you all. I appreciate you. Appreciate this 00:22:36
community. Thank you. 00:22:40
Thank you, Chief Federico. 00:22:47
Council like to say some words. 00:22:53
I know we have a lot to do this evening. I did want to just congratulate Sergeants Hamrick, Tapia and Lopez. It's really nice to 00:22:58
see that these individuals have come up through the Port Hueneme Police Department and have accomplished a goal to make it to 00:23:06
Sergeant. So looking forward to just seeing you all on the streets. 00:23:14
Mentoring the other officers and I hope this is going to help some of you decide to stay just a little longer. 00:23:22
Thank you all for serving our community so well. We look forward to seeing you out there in the streets. Look forward to many more 00:23:32
years of a safe community and congratulations to all. 00:23:38
I'd also like to offer my congratulations to our three new sergeants. I was doing the numbers up here and and it's almost 80 years 00:23:48
of combined experience that you bring to your new positions. And I took the opportunity this weekend to watch the November 6th 00:23:55
meeting of the the special meeting at Santa Paula's City Council where they are losing their officers to the Sheriff's Department 00:24:02
and to other agencies. And I'm just glad that we have the budget and we have the ability to. 00:24:09
Provide promotability here for our police officers and to pay them the wages that they deserve. So thank you very much for your 00:24:17
service, really appreciate it. 00:24:22
Well, Sergeant Tapia, Hamrick and Roki. 00:24:30
You three are some of my favorite people. I've gotten to know you from my husband. 00:24:33
O I've watched how you are as police officers, as family men, as people, and you're the next generation of command staff for this 00:24:38
agency. And I think looking at you and knowing who you are as people, we're in good hands. And I'm glad to see you all promoting 00:24:43
it's it's definitely something. 00:24:49
That was well deserved, so stay safe out there. 00:24:56
And take care. And I thank the families for their sacrifice. 00:25:00
Because we know. 00:25:03
And it's trying and. 00:25:05
Including my own can be difficult. 00:25:07
But that's the best. 00:25:10
O Thank you for your service to our community, thank you for your dedication and take care. 00:25:12
And I will just echo what the Council has said. Congratulations to our new sergeants. Thank you. 00:25:21
And I hope it was OK with the public that we decided to do the presentation first, especially because we have a lot of public 00:25:33
comments and I know a lot of people leave right after the public comments. 00:25:38
So I think this was actually. 00:25:43
For some of the youth that's going to come up and say some public comments to have seen the presentation. 00:25:45
I I do also want to mention seeing as we have over 20 some public comments we're going to. 00:25:52
To 3 minutes. 00:26:00
The process will be the same pertaining to. 00:26:01
Agenda item. 00:26:05
Madam. 00:26:07
Can you decide who's going to come up first? 00:26:09
Mr. Mayor, I just wanted to confirm the time limit. 00:26:11
2 minutes 2. 00:26:14
Oh, sorry, Candy Bonos. 00:26:22
Dear council members, good afternoon. My name is Candy Bundles and I am the Communication Director of Port Hueneme, Future Leaders 00:26:38
of America, Master Achievers, Flamas Student Council. 00:26:43
I am here today to ask you to action to take action on a smoke free multi unit housing policy for the City of Port Hueneme. 00:26:48
Smoking is linked to an increased risk of age-related muscular degeneration AMD which is a leading cause of vision loss in older 00:26:57
adults. I am concerned about the harm the most vulnerable in our community face against second and third hand smoke. 00:27:05
Taking an action on a smoke free multi unit housing policy is not just a step forward on a healthier living environment, but a 00:27:14
commitment to the health of our residents. Let us unite in this shared vision and please take action on the smoke free environment 00:27:21
that enhances the well-being of each community member living in multi unit housing. Thank you. 00:27:28
I'd actually would like to invite the entire group to come on up. Maybe you guys might feel a little stronger United. 00:27:40
And our next speaker? 00:28:04
And I'm going to do the timer on my phone, for it's not allowing me to do it on here. So if you start to go over, I'll just let 00:28:06
you know. 00:28:11
I'm going to do the timer on my phone. 00:28:18
So we have Jav. 00:28:22
Garnica, OK. 00:28:25
Hello council members. My name is Javier Garnica. I am the Port Hueneme Youth organizer with future leaders of America. 00:28:35
I am here to express my concern about the dangers of second and third hand smoke in our city and its impacts on the health of our 00:28:42
community, especially to those who live in multi unit housing. 00:28:47
People living in a multi unit housing run a higher risk of developing diseases from second and third hand smoke. 00:28:53
Which way which which we know can cause cancer and other lung and respiratory. 00:28:58
I think that we can all agree that the home should be a place where families can be. 00:29:03
And not in danger of developing diseases and other health. 00:29:08
You need to be. 00:29:11
Environment, not just at school, but also in their homes. 00:29:13
It's crucial to their overall growth and development for them to be in a space that it's free from threats to the health and 00:29:16
safety, according to the US. 00:29:20
60% of poor enemies population is Hispanic or Latino. 00:29:25
Latinos are the one of the populations that are disproportionately affected by second and third hand smoke. 00:29:28
Big tobacco companies purposely target black and brown communities as they are, as they see us as easy targets. These companies 00:29:34
don't care about our health or our well-being. They only care about turning a profit at the expense of our communities. 00:29:40
And I understand that there's more work to do and. 00:29:47
You're not just educating and informing our own community on the dangers of tobacco, but also in supporting those who do smoke by 00:29:50
helping them, helping them find healthier ways of coping. 00:29:54
Our youth have worked extensively to make a positive change in their community by collecting petition signatures, hosting forums 00:30:00
and even meeting with some of. 00:30:03
I hope that you can. I hope that you take into consideration the words and the hard work of our youth by doing what is best for 00:30:08
the health and development of our community members. It is time for the City of Port. I need me to put the health of its community 00:30:12
members first. 00:30:16
I urge you to act in the best interest of our residents by taking action on a smoke free, multi unit housing policy to ensure our 00:30:21
community is smoke free. 00:30:24
You'd like for this topic to be added to the agenda for the upcoming the upcoming City Council meeting. 00:30:28
And I left all of you with some resources including a smoking multi unit positive policy ordinance that may guide you in the in 00:30:34
the into the right direction. 00:30:38
It's going to be Ariel Garcia and then Estrella Garcia. 00:30:48
Hits my heart personally. 00:31:24
The Smoke free Multi Unit Housing Policy I lived with you. I live with you today. A copy of all the signatures collected as proof 00:32:00
of that. Our community is in support of our policy. 00:32:04
Is. 00:32:12
Good evening, council members. My name is Estrella Garcia. I am here on behalf of future leaders of America, and I am here 00:32:15
presenting Youth in the Poor Anime region. 00:32:19
I am here today to voice our concerns on the issue of smoking in multi unit households. 00:32:23
Is incredible to see the amount of young people consuming tobacco products these days. Kids who see these drugs as their new toys 00:32:28
in today's generation. In 2020, three 10% of middle and high school students, that is 2.80 million students, reported current use 00:32:33
of any tobacco product. 00:32:39
Keen to use these products range from the ages as young as eleven years old. 00:32:44
It is hard to believe that these young souls are becoming addicted to such dangerous products. Unfortunately, the fact of the 00:32:49
matter is that tobacco companies have made it easier for you to purchase their products, including electronic tobacco vape 00:32:55
devices. Council members, please think about the young people and our families in your families, your loved ones and all the youth 00:33:01
in our city that you represent. I am sure that your youth have come across these drugs once. 00:33:07
You all may have the right to believe that. 00:33:14
One's responsibility, one's responsibility to be aware of the issue, But given that these tobacco companies come up with tactical 00:33:16
ways to advertise and entice the young generations, it becomes difficult for our. 00:33:22
For parents to keep their children safe from this dangerous drug. 00:33:29
We don't smoke that, we just sell lit. 00:33:33
We just reserve the right to smoke for the young, the poor, the black and the stupid, said RJ Reynolds, a businessman in charge of 00:33:36
the tobacco companies. 00:33:41
It is time to stop ignoring tobacco companies from targeting our communities. It is not fair for smokers, nonsmokers, children's 00:33:46
and pets being exposed to second and third hand smoke while living in multi unit housing. 00:33:52
Second and third hand smoke can travel into air vents, Airways and walls, thus exposing non-smokers to its harmful effects. 00:33:58
It is necessary to take this issue seriously to secure a safe future for all generations in the city of Peru Anemia. I urge you to 00:34:06
please take action on the smoke free Multi Unit Housing policy. Thank you. 00:34:11
Juan Vega, then Jesse Lynn. 00:34:21
Everybody, hello council. My name is Ivan Vega and I work with future Leaders for America's policy and HealthEquity manager. 00:34:31
I'm here today to express my concern about second and third enhanced smoke in our city In Peru, Nimi. We pride ourselves in our 00:34:38
development and regularization. 00:34:42
Yet we ignore the health and safety of our residents living in apartments and condominiums where families are affected by 00:34:47
secondhand smoke. 00:34:50
There is no safe amount of secondhand smoke exposure. 00:34:54
The home is the main place where many children and adults breathe secondhand smoke. 00:34:57
More than one in three smokers who live in the rental housing are exposed to secondhand smoke. 00:35:01
I myself, living in an apartment in my neighbor's garage, is right under my apartment. 00:35:08
Every afternoon, my neighbor and his friends smoke in his garage. 00:35:12
No one in my family smokes, however, in my family and I smell. 00:35:17
The smoke seeping through the walls every afternoon. 00:35:22
According to the CDC, secondhand smoke kills 48 one thousand smokers per year. 00:35:27
The back of this proportionately impacts Latinx. 00:35:33
Given that 419 of Californians multi unit housing residents are Latinx, many of whom are exposed to. 00:35:36
Are exposed daily to drifting secondhand smoke. 00:35:46
I worry for my family's health and the others who cannot afford to move to places with cleaner air. 00:35:48
Every person living in multi unit housing deserves to be smoke free air. 00:35:54
Please act in our residents best interest by taking action on a smoke free multi unit housing policy to ensure community remains 00:35:58
smoke free. Thank you for your time. 00:36:02
Good evening, council members. My name is Jesselyn Banos. I hope you guys are good. 00:36:13
I'm here to. 00:36:18
You guys to please consider those smoke free policy for multi unit housing. I am here with future leaders of America. I am the 00:36:20
secretary for the Fla Flamas. I am here. 00:36:27
To let you guys know that I know many people might not like to be controlled in what they would do in their homes. I wouldn't like 00:36:34
it either. However, this is for a good cause. My parents own a business and they are located next to two smoke shops. 00:36:41
Here daily many people come in and smoke. I am daily exposed to this and I know my fate eventually because of this contamination. 00:36:49
Many students avoid these substances because they don't want to fall into these steps of using substances. 00:36:59
And many want to go far in life. Or maybe addiction runs in the family and they want to end the cycle. 00:37:06
However, it is more difficult for people living in multi unit housing to avoid exposure and 2nd or her third hand smoke because 00:37:12
smoke travels through vents, doorways or even goes through walls. 00:37:19
One's duty as the City Council is to help improve the city. 00:37:27
And if this multi unit housing smoke free policy is passed, you'll be helping the city and its residents. 00:37:32
To improve the quality of life for now and in the future, we need this policy to be passed. Eventually this will help the smokers 00:37:38
lives in one way or another. 00:37:43
I urge you to please take action for this policy and help others improve lives. Thank you. 00:37:49
Megan Stallis and then Odette Moran. 00:37:58
Hello Counselor. My name is Megan Salas and I'm the Oxnard Youth Organizer with Future Leaders of America. I just want to echo 00:38:12
what my students have already mentioned that today I'm here to express my concern regarding second hand smoke. 00:38:18
So part when EMI does take pride in the quality of life. On their website you guys highlight that it's clean air is a benefit to 00:38:24
its residents. 00:38:27
Yet this overlooks the health and safety of its residents living within apartments and condos by ignoring the effects caused by 00:38:31
secondhand smoke. 00:38:34
So as already mentioned, we do quote CDC because they have various data that you know, we think is very important. So I'm only 00:38:38
going to cover some of it. 00:38:43
More than one in three non-smokers who live in rental housing are exposed to secondhand smoke. I am this one in three statistic. 00:38:49
I'm not a smoker, but I live in an apartment and because of that I am unwillingly exposed to second hand smoke. 00:38:56
That travels between apartments. 00:39:02
Opening windows and trying other methods of ventilation does very little to stop the effects as I'm already inhaling this unclean 00:39:04
air. 00:39:08
So. 00:39:13
I believe that an avoidance to this should be a human right. 00:39:14
Just as housing should be a human. 00:39:19
Especially in the place that I do call home. 00:39:21
The CDC also states additionally one in three multi unit housing residents are currently covered by smoke free building policies. 00:39:23
I'm currently not in that statistics and I asked. 00:39:31
Because there's other cities, like more parts, that have already passed laws to ban this smoking and private units of residential. 00:39:34
Multi unit housing properties to protect the residents. 00:39:41
Other cities have made this a priority and I believe that social part way. 00:39:44
So please act in the best interest of the community by taking action on a smoke free multi unit housing policy to ensure that our 00:39:49
community can remain smoke free. Thank you. 00:39:53
Hello. 00:40:03
Hello, when I start this my name is Odette Moran and I'm here with Cos in support of FLAS Smoke Free Multi unit housing policy. 00:40:10
These last few years I have been learning more and more about the truth of South Oxnard in port wenemies, air quality, the many 00:40:18
industries that also are neighbors of the space. 00:40:24
And I am truly disgusted by the amount of things that cause cancer and cut short the lives of our communities here. 00:40:31
Our communities already involuntarily breathe in toxins like ammonia, diesel exhaust, nitrogen oxides and more. 00:40:39
And as many have stated before me, second had smoke kills 41,000 non-smokers a year and more than one in three smokers are 00:40:48
non-smokers, live in rental housing, are exposed to, are exposed to it. 00:40:55
The fight for clean air is long but the city of Port Hueneme can take action for its residents sooner. Which is why I'm here to 00:41:02
ask you to choose clean air for Port Hueneme residents who live in multi unit housing and support FL as smoke free policy. Please 00:41:09
add it to your agenda. Thank you so much. 00:41:16
Ernesto Carrillo and then Ariel Zamora. 00:41:27
Good afternoon council members. My name is Ernesto Carrillo and I am an intern of Future Leaders of America. I'm here today to 00:41:35
express my concerns about second and third hand smoke in our city. 00:41:39
Second hand in turn hand smoke is something that has no safe level. 00:41:44
Meaning that even with a brief exposure, you can still. 00:41:48
You can still result in in serious health problems. Even even using any form of ventilation can prevent exposure to second and 00:41:51
third hand. 00:41:55
Because the smoke can still travel through ventilations and clean the walls and furniture. 00:42:00
This makes it extremely dangerous for people who are who have elderly family members and children. 00:42:05
If they are exposed and can cause long term and health effects, some of these effects can go from respiratory problems to more 00:42:11
serious ones like lung cancer, heart disease and starting infantic syndrome. 00:42:16
Did you know that two out of five of every five children are exposed to second second hand smoke? 00:42:22
Do we really want our future generation of youth to be exposed to the deadly effects of second and third hand smoke? 00:42:27
With this being said, I ask you to please value the health of our residents and take action for a smoke free, multi unit housing 00:42:34
policy to ensure our community remains smoke free. Thank you very much. 00:42:39
A Traveze, Fla Yeah, prendido sobre loriezo de fumar, yesterday's alumo de segunde TER ceramano. 00:43:08
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acresimientos desu desario physico mental. 00:43:30
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Consuerte la deja de harde fumaria visto various cambios positivos de Las cuales justo emulio Rios amigo. 00:43:54
Pollo para protester contract tobacco para esta substancia. 00:44:05
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Gerardo and the Guillermo Jose Velasco. 00:44:18
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Commer. 00:44:39
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Dependencia Del Tobacco. 00:44:50
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Ensues Pulmoniz chaise Uno sanos paesio. 00:45:12
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Que mas personas sigang El consummuel Tobago. 00:45:57
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portale lolor caviano apartmento. 00:46:28
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Gracias alumo de segunda. 00:46:41
Segun muchos studios esmalo estar constante mente express to alumo del tobacco porque no proportiona infermed estales como 00:46:49
bronchitis cure chronica emphysema. 00:46:55
Pulmonar Y cancer de pulmon estonos Ola fechta Los que fuma sinotta. Ambiena Los ninos jovenes adultos Y personas de la tercera, 00:47:01
especialmente Las personas estan espuestas alumo de segundi TER ceramano primando Los de tenero navidad tranquila gratificante 00:47:08
iplena por culpa de este cancer yamato tobacco. 00:47:15
Y poreso les Speedo por favor que tome manos. Alabama implementing unale de vivientas collectivas livres de umo muchas gracias. 00:47:23
Hayden, Styles and then Montserrat Sanchez. 00:47:35
Good evening, council members. My name is Hayden Stiles and I am a student at Winami High School and the treasurer for the Port 00:47:40
Wine Council. 00:47:44
I stand before you today to urge you to consider and enact a smoke free multi unit Housing policy for the City of Port Hueneme. 00:47:50
This is an issue that affects not only our community's health, but also the well-being and quality of life for many of its 00:47:57
residents. 00:48:01
Children, the elderly and those with pre-existing health conditions are especially vulnerable because they have little control 00:48:05
over their exposure to this harmful substance, and this is something we must address. According to the CDC, there is no safe level 00:48:11
of exposure to second hand smoke. 00:48:16
It contains over 7000 chemicals, hundreds of which are toxic and about 70 of which can cause cancer. 00:48:22
Smoking and multi unit housing structures is not just an inconvenience, it's a severe public health issue. 00:48:29
I have an elderly elderly grandmother who lives in a multi unit housing housing complex in Port Hueneme. She has been a non-smoker 00:48:36
her entire life but her health has been compromised due to her exposure to second hand smoke. 00:48:43
Despite her repeated complaints to the building management, the issue remains unaddressed. 00:48:50
She, like many in our city, is forced to endure this health hazard within the supposed safety of her own home. 00:48:55
My grandmother's story is not unique, but it highlights the urgency of passing a smoke free multi unit housing policy. 00:49:02
Enacting this law will have a positive impact on the overall image and desirability of our city. Smoke free housing is a growing 00:49:09
trend in communities across the country and it sends a clear message that we value the health and well-being of our residents. 00:49:16
This policy can attract new families to our city and increase the overall quality of life for existing residents. In conclusion, I 00:49:23
implore the the Council. 00:49:30
To consider the well-being of our community, our families and our neighbors and take action on a smoke free multi unit housing 00:49:37
policy. Thank you for your attention and your dedication to making our city a better place to live. 00:49:43
Good evening, Port Winnemuc City Council on Port Winnemuc residents. My name is Montserrat Sanchez and I am the Oxnard Secretary 00:49:54
for our Florida programs. 00:49:58
In March of last year, we were forced to move into a small apartment and surfside here in Winnie, ME. In this apartment complex, 00:50:03
you are not allowed to attend board meetings unless you are the owner of this house. As many of you know, Latinos are not capable 00:50:09
of always purchasing their own home. In this way, many of us are not able to voice our concerns. 00:50:15
Five months later, in August, my dad suffered 3 deathly heart attacks over a weekend and had to undergo 3 emergency bypass 00:50:22
surgeries. Without these bypass surgeries, my father would have passed away when I was only 15. 00:50:28
He spent about a month in the hospital before they let him come home to recover. 00:50:35
When we got home, we discovered that our dear neighbor Stewart was a heavy smoker. 00:50:39
He would constantly smoke inside of his apartment, around the complex and on the balcony which was directly next to ours. During 00:50:44
this time there is a major heat wave where we had to keep our doors open at all times or else it would simply be too hot. 00:50:50
Additionally, we would have to close them because the smoke was affecting my dad's lungs and making his condition even worse. 00:50:56
Later on, the doctors told us that the constant smoke every day was delaying his recovery significantly, and if he and if our 00:51:04
neighbor did not stop exposing us to this smoke, his lungs would not recover and he could pass away. 00:51:09
After this we had to constantly ask our neighbor to stop smoking due to my daddy's extremely sensitive lungs being affected by the 00:51:16
second and third hand smoke. 00:51:19
On December 24th, the day before Christmas of last year, our neighbor Stewart was found dead in his apartment at the age of 27 due 00:51:24
to lung failure. Their paramedics eventually told us that it was due to black lung. 00:51:30
Eventually we found out that using smoking that he was using smoking as a coping method to deal with his mother's passing a month 00:51:36
earlier. 00:51:40
If the city of Port Hueneme had passed the multi unit housing smoking ban before this, my father could have recovered a lot easier 00:51:44
and a lot faster and my neighbor Stewart could still be could still be here alive with us today. 00:51:50
Julianne Salis, Daniel Gonzalez and Maria Navarro. 00:52:03
Good evening council members. My name is Jolene Salas and I currently attend Oxnard High School. I grew up with a mother who 00:52:09
smoked daily and as a result of this I often experience issues relating to my respiratory system and I have panic attacks when I 00:52:13
smell smoke. 00:52:18
I am fortunate enough to say that while my mother still smokes, she's mountain mindful enough to do so. Away from me, however, a 00:52:23
problem still stands. My little brother. 00:52:27
Can be at risk. I like to think that he's the one who's motivated my mother to be mindful about where and when she smokes. We have 00:52:32
been through so much together, and I love him more than life himself. 00:52:36
We actually celebrated his 6th birthday today. 00:52:42
We live together in the MUH or multi unit housing structure and I appreciate every moment I have with him. 00:52:45
A few months ago we had neighbors move in and now, more than three times a week, the smallest smoke flows through my bedroom when 00:52:51
I try to sleep. I know if I can smell it, soak in my little brother. 00:52:55
I have volunteered to come here and speak because I wouldn't be able to call myself a good big sister if I didn't prevent him from 00:53:00
suffering the same problems that I do. 00:53:03
For these reasons, I urge you to take action as a comprehensive smoke free multi housing policy for the safety of not just my 00:53:07
brother and I, but for all Port Hueneme residents. Thank you for your time. 00:53:12
Good Good afternoon or good evening City Council members. My name is Daniel Gonzalez. I am the Organizing Director with Future 00:53:25
Leaders of America. I'm here today to urge City Council to put a smoke free Multi Unit Housing Policy Ordinance topic on the next 00:53:31
agenda to ensure our community is safe from the harmful effects of second and third hand smoke. 00:53:36
Our youth have worked hard these past two years to inform and educate our neighborhood on the importance of this issue by hosting 00:53:43
community forums and speaking with elected officials. 00:53:47
As mentioned in other comments, there is no safe level of exposure to secondhand smoke and an estimated 2 out of every five 00:53:51
children, including seven out of 10 African American children, are exposed to second hand smoke in the United States. 00:53:58
Smoke free multi unit housing or housing ordinance aren't only beneficial to our community members. 00:54:06
But also to property owners. Nationally, fires caused by cigarette smoking result in over 300 million in property laws each year. 00:54:11
As of January 1st of 2020, three 77 municipalities including neighboring areas such as Moorpark, Morro Bay and Guadalupe have 00:54:20
committed to protecting their residents by enacting smoke free policies that prohibit smoking in 100% private units of rental 00:54:26
multi unit housing properties. 00:54:32
Please act in the best interest of our residents by putting a smoothly multi housing ordinance topic on the next agenda to ensure 00:54:39
our community has the opportunity to speak on the issue and share their concerns. 00:54:44
If you have any questions or need any further information, feel free to contact me directly. You should find my business or my 00:54:50
card, my work card in your in the folders that we passed out earlier. Thank you so much. 00:54:55
Hello everyone. Hello Council, Mayor Martinez and everyone here. My name is Maria Navarro and I am a senior olicy advocate at 00:55:12
cost. Today I am here to just be in support of Fla and the group of young people who we have here today who are asking you to put 00:55:19
this item in the agenda. I am also a proud resident of Parwani. Me have been a part wanimi resident for more than 10 years now. 00:55:26
Live in Surfside 3 which. 00:55:34
I have to say, has a lot of smoking in the in the units themselves, right? Like. 00:55:41
Every day I wake up, I find one or two neighbors smoking. You could see the little butts of smoke everywhere. 00:55:48
And it is difficult when. 00:55:57
You're put with. 00:56:01
With not only the smoke but also all the polluting industries that are around us, I think that. 00:56:04
Creates a environment where we really have to close our windows. For example, I live right next to the water facility, water 00:56:10
cleansing facility. 00:56:16
Sometimes that smell gets filtered in with the smell of the smoke, smell with everything. And it's it, it does hurt us, it hurts 00:56:24
our health, it hurts our well-being. 00:56:30
Especially for folks who our children are developing, the elderly, the disabled. 00:56:36
I think this is a really really. 00:56:44
Proposal the Fla is presenting you, and I hope that you ought to consider it. 00:56:48
I want to say that also to highlight, I noticed that there were three commenters who came up here and there's no real Spanish 00:56:54
interpretation. And that's something that maybe you could look into, like I don't know if that is something that could be provided 00:56:59
by the city at some point. So thank you. 00:57:04
That concludes all your public comments. So thank you for joining us. 00:57:17
Karina Cortez. 00:57:25
And again, I'm just going to be doing the two-minute timer on my phone. 00:57:32
Good evening, Council. My name is Karina Cortez. I am a junior at Oxford Middle College High School and a S Oxnard resident. 00:57:36
I am also the on site coordinator for Swami Justice and the Co Director of Swami Justice Youth and Family Civic League at Swami 00:57:43
Justice. My job is to make sure the events going accordingly and make sure that everyone seen at AN. 00:57:49
At a according matter and making sure that everyone's on task. Thanks to Swami Justice, I've had amazing opportunities like being 00:57:57
able to intern at the Public Defender's Office this past summer and even starting my own project which is a Swami Justice Youth in 00:58:03
Family Civic League and being the youngest Social Justice Fund fellow. 00:58:09
With the Social Justice Fund, we plan on making new generation citizens and teaching them the mechanics of voting and making 00:58:15
voting a generational habit. I am very grateful to be part of Swami Justice where I can give back to the community that has given 00:58:21
me so much. Thank you. 00:58:27
Angel Salinas and then Vanessa Frank. 00:58:38
Good evening, council. My name is Angel Salinas and I am a student at Oxford Merrill College High School and I'm currently on my 00:58:45
third year I joined Oxnard. I joined Swami Justice last year and I've been with it ever since. My my my experience as a volunteer 00:58:51
has been. 00:58:56
Ever since I joined, I've been exposed to new opportunities, not just with school, but also socially. 00:59:02
As a volunteer, I work on the paperwork for new generation citizens that we could help with. 00:59:09
So they come to us. We fill out the paperwork with no. 00:59:15
So we just try our best to bring back to. 00:59:20
Bring our services to our community. 00:59:22
And even though I'm just Aventura, I. 00:59:26
Multiple of us have done great work at swam injustice. Not just me but. 00:59:30
The others that attend that well, the others that attend as well every month and I just. 00:59:34
Show that Swami Justice is not only good for students, but also for the community that serves. Thank you. 00:59:41
Good evening, council. Thanks for taking a moment to listen to us. My name is Vanessa Frank. I'm an immigration attorney and my 00:59:55
office is based in Ventura. But I'm one of the Co founders of Swap Meet Justice and I'm very proud to be here with some of our 01:00:00
amazing leaders. And we came tonight just to share with you that this is an event that happens at Oxnard College on the last 01:00:06
Sunday of every month. Unless the last Sunday happens to be Thanksgiving weekend, in which case we do it the weekend before. So we 01:00:11
just came fresh off yesterday. 01:00:17
At the swap meet, so that we hope that, as Karina was saying, we hope that people will get more involved in the community and be 01:00:55
more informed. 01:00:59
And so we do extend an invitation to you to come out and explain a little bit about what the difference is between the City 01:01:03
Council and the Board of Supervisors and the state legislature and the federal government so that people can get in the habit of 01:01:08
being able to speak out for their rights and get and push policy forward. So we're really grateful for this opportunity to share 01:01:14
about this event and we really welcome you anytime and want you to remember the next one will be January 28th. We're also taking 01:01:20
December off. 01:01:25
But January 28th we'll be back raring to go for the new year and we'll be there on the last Sunday of every month throughout 2024 01:01:31
at All day, All day where we are. There you. We recommend people come at 8:30 in the morning to get help and we're there till 3 01:01:37
volunteers get a lot of goodies. 01:01:43
But but we hope to provide service and we hope to always be including new volunteers, new people to be informed. Thank you very 01:01:50
much. 01:01:54
Monica Salinas and then Camille Garcia. 01:02:04
Hello, good evening council members. My name is Monica Salinas. I am attending CSUCI nearby here and I just really want to share 01:02:15
information about swap meet justice, swap meet justice. I've joined recently two years, three years, and I feel like I've loved it 01:02:22
since forever. It's the best thing that could happen to me and I guess even some family members that I know around here swap me. 01:02:29
Justice provides different resources to everybody in the community of Ventura County and to even other counties as well. 01:02:36
So we even had people from Port Hueneme ask us why haven't we been to Port Wanimi yet, right? So due to that and a lot of other 01:02:44
cities coming and telling us why have we been in their city, we've actually tried to provide transport to them to come in Oxnard 01:02:49
College. 01:02:54
To get all these three services. 01:03:00
And just to give you a little bit more and say what we do is that we provide medical support in order for people who can't get it 01:03:02
due to the help with with Westminster. 01:03:06
Additionally, we have legal services that can be done with credit, immigration and other, as well as farmers and workers rights. 01:03:11
Swami Justice is an amazing thing that can also be and is supported by volunteers. Volunteers not only learn how to get kind of 01:03:20
like customer service, we say customer service but how to talk to people within their own community, how to know what they 01:03:27
suffered, what they do and what also like what is it like to live in the community. So here I am asking you if you will help us 01:03:34
support and also share the word about swap Meet Justice in order to for us to help more volunteers, more teenagers and also to 01:03:41
help a lot more of our community members. 01:03:48
Hello council members, my name is Camila Garcia. I'm a senior Oscar Middle College and also at Port Hueneme Local. 01:04:04
I wanted to, you know, help out and I'll let you guys know about this amazing opportunity that's presented every last Sunday of 01:04:11
the month. 01:04:14
Umm Swami Justice is a fair that is compiled of countless organizations and institutions of social social organisations such as 01:04:18
Clue. The Westminster Free Clinic also comes out and as Vanessa mentioned, government agencies from Ventura County. 01:04:26
Swami Justice invites volunteers such as myself and other youth volunteers from Whitney High School, Oxford Middle College, OHS 01:04:35
and as far as Santa Paula to come and learn how to fill out citizenship applications, how to renew and apply for Green cards, and 01:04:42
how to renew DACA for people who might not know how to do it themselves. 01:04:48
The organization, I mean, I think the organization is great because it helps people who are willing to help out the community. 01:04:55
You know, give back. I started doing it because I wanted to. 01:05:02
Give back to the community because my grandparents were immigrants and I figured. 01:05:07
If I can make some people's lives easier and, you know, start that. 01:05:11
Process of getting people citizenship and then enabling their children to vote. I figure that's, I mean, that's the least I can 01:05:14
do. So this organization has. 01:05:18
Show me what I want to do. I had the opportunity. I had the opportunity to Internet the county public defenders office and Vanessa 01:05:23
Franks office, and I learned that I want to do public service. So. 01:05:29
God willing, I'll be able to come back here to pour away me when I'm done with my four year education and, you know, help serve 01:05:34
the local community. You know, maybe one day I'll be sitting up there and helping out, you know, get things done. But. 01:05:40
Yeah. So I invite all of you guys to come out on January 28th during our next Swami Justice because we always have local 01:05:47
politicians coming out like the supervisors, Supervisor Lopez and Supervisor Long. So if you guys would like to come out, I mean 01:05:52
feel free. It's always good to see new faces. 01:05:57
You know, it's it's great. So thank you for your time. 01:06:03
And then we just have two written public. 01:06:12
To few, fewer complaints, less damage to property. Thank you, Nan. 01:06:47
Dare City Council. My name is Mark F McLaren, a long time area resident. I admit I was disappointed that at the last City Council 01:06:54
meeting the council did not look to solicit proposals for a new city attorney, but instead they renewed the contract with Mr. 01:06:59
Spalding's law firm. 01:07:04
After reading the current agenda, I found more to be dismayed by Item number seven is asking that over $1.1 million be refunded to 01:07:09
cannabis business? 01:07:13
Who is responsible for this mistake? Should not Mr. Spalding have been on top of any agreements and collections procedures, along 01:07:18
with the previous city manager? 01:07:22
Possibly the council should reconsider the contract extension and consider more competent legal services that have the city at 01:08:03
heart rather than what could be perceived as personal agendas. Thanks for your time and efforts. 01:08:09
For our home Respectfully Mark F MCC. 01:08:14
That concludes public comment. 01:08:18
Thank you. 01:08:19
We're not going to move on to the agenda. Approval for the City Council may have a motion and a second. 01:08:20
So moved. 01:08:26
Madam Clerk, can we please take a vote? All in favor? Aye. All opposed. Hearing none. Motion passes unanimously. 01:08:27
Do any members of council have any conflicts of interest to disclose? 01:08:34
Hearing none we're. 01:08:40
Consider items on the consent calendar, which will be enacted in one motion unless a council member has a request to remove an 01:08:42
item for discussion. May I have a motion and a second to approve the consent agenda calendar? 01:08:48
2nd. 01:08:53
May we have a vote? 01:09:01
All in favor, All opposed. 01:09:03
Hearing none motion passes unanimously. 01:09:06
Approve the consent calendar. We're going to move on to item number six, business item approval of general fund capital reserve 01:09:09
policy. 01:09:13
Will staff please present the report? 01:09:19
Yes, thank you, Mayor. 01:09:23
We. 01:09:25
Brief presentation on this item. The item is. 01:09:27
Recommending that we as a city create a capital reserve policy and a capital reserve fund. 01:09:31
And so I'll briefly go through that item. 01:09:39
I wanted to start. 01:09:43
For two reasons, sort of. Just an explanation and a recap of last year's budget and then the. 01:09:47
This year's budget and next year's budget, we're on a two year budget cycle. So earlier this year we adopted the fiscal year 2324 01:09:55
budget. 01:10:00
The fiscal year 2425 budget. 01:10:05
And so. 01:10:10
And we just closed out the 2223 budget a couple months ago, June 30th, 2023. 01:10:11
So we wanted to sort of recap that and the reason we'll be doing so relates to the capital improvement project fund and budgets. 01:10:20
And so I'll highlight those. 01:10:28
But it's just sort of a reminder. 01:10:30
Last year's budget we had, as illustrated here, we had a general fund. 01:10:34
But sorry, the 2223 budget, we had a general fund revenue in our adopted budget of $25.9 million, general fund expenses of $26.8 01:10:41
million and then we had originally planned it to do $3.7 million in CIP projects. 01:10:49
And the the this year and next year the budgets that were included in our adopted budget. 01:10:58
We had general fund revenue for this year of 26.9 million against expenses of 26.5 million and then but we were also planning to 01:11:03
do $3,000,000 in CIP projects. 01:11:08
And for next year's budget, the year that starts July. 01:11:15
We had $27.2 million in revenue against $26.8 million in expenses. 01:11:20
But we're still planning to do it. Another $1.4 million in CIP projects. 01:11:26
And so the reason we wanted to explain this is because one of the. 01:11:32
Things we're looking at doing and you can see sort of illustrated here. 01:11:36
A more consistent regular capital improvement project. 01:11:43
You can see here that in one year we had a $3.7 million CIP budget. 01:11:47
And then two years ahead, almost well less than half of that, a $1.4 million budget and. 01:11:52
We, as part of the CIP reserve policy, we want to create and fund a consistent. 01:12:00
One of the goals will be it'll create a CIP. 01:12:09
Fund and it won't. 01:12:13
It'll kind of. 01:12:15
Ortion of the budget out where we don't have these years where we have a huge CIP budget that's impacting our our. 01:12:17
General Fund. 01:12:24
And. 01:12:26
And I'll show why that's important on the next slide. 01:12:27
On the next slide, so we just had talked about and going back our adopted budgets. 01:12:31
And so that's the plan that we adopt for each of those years. 01:12:37
But if you actually look at the end of the June 22 to 23 budget. 01:12:41
And that's an unaudited 2324. That's actually a mistake. It should be unaudited 2223 financials. 01:12:48
We're comparing the adopted budget, the plan versus what actually happened the the numbers at the end of the year. 01:12:55
And when you look at. 01:13:03
When you put them next to each other, you can see that the. 01:13:05
The biggest difference between what we plan to do and what we did. 01:13:09
Is the CIP. 01:13:13
The capital improvement projects. 01:13:15
We had planned to do last year $3.7 million in CIP projects. We only completed $470,000 in CIP projects. 01:13:17
Again, why is that important to this conversation? There's there's two reasons. One. 01:13:27
Just because we didn't complete those projects doesn't mean we don't need to still do that work in those projects. 01:13:33
So we need to make sure that the funding for those projects. 01:13:41
Remains available and doesn't get spent on other items. The example I give and I'll allude to a couple of times throughout this 01:13:45
presentation. 01:13:50
Is if you need to fix the roof on your house and you save up and then you decide you want to buy a new car. 01:13:55
That just because you spent the money doesn't mean you don't need to fix the roof still, and you still need to figure out how to 01:14:00
have the money to fix the roof. 01:14:04
So for us, one of the things we're trying to do with the CIP fund is when we identify a project and we fund it, we actually keep 01:14:08
it in a separate fund. 01:14:13
It will be there for that project and. 01:14:19
Umm. 01:14:22
Kind of be mixed in with everything else and then potentially spent. 01:14:23
And then? 01:14:27
Next thing we know, we thought we had money for a project and it turns out we didn't. So that's sort of what we're trying to do. 01:14:28
And so you could see last. 01:14:34
We plan to do $3.7 million. 01:14:36
We only did $470,000. 01:14:39
That means there's $3.3 million in projects out there still, but it doesn't mean that we necessarily have $3.3 million to do those 01:14:44
projects unless we're making sure we protect that funding. 01:14:49
The second point we wanted to show at this chart, which is some good news mentioned in the staff report for this item, is. 01:14:55
Although we initially expected a deficit and partially because of planning to do all those projects. 01:15:03
We actually have estimate that we ended the year with a $1.3 million surplus from last year. 01:15:09
And. 01:15:16
Is what we're proposing to take and immediately use to create our capital improvement project fund. 01:15:17
And we can use that money and keep. 01:15:24
Like we said, a minute. 01:15:27
There's still projects from last year that we were that we wanted to complete that we haven't gotten done. 01:15:29
But if we take this funding and we started a fund, then we can make sure that that money stays. 01:15:34
For those. 01:15:39
So it's sort of all ties together. 01:15:41
Is this slide? 01:15:45
What was the shift? How did we go from where we expected a deficit to where we had a surplus? 01:15:49
Our revenues came in about $1,000,000 higher than we had planned, mostly due to increase in interest earned and the increase in 01:15:54
hotel taxes because of hotel prices going through the roof recently. 01:16:01
And then? 01:16:08
Expenses were lower mostly in contract services. We had a lot of contract service budgets and different departments that didn't 01:16:10
get utilized to the level that had been planned. So that was resulted in savings. 01:16:17
And then? 01:16:24
Already explained, the CIP project expenses was much lower than expected. 01:16:26
That happens on a year to year basis because a lot of CIP projects like the Bubbling Springs project are multi year projects. 01:16:33
So even though you're planning a, you know, $10 million project. 01:16:40
It might be maybe $1,000,000 one year, $1,000,000 the next year and then $8 million the third year when all the. 01:16:43
Constructions going on. 01:16:49
And that's just another reason why. 01:16:50
Each year we're saving that money into a fund for those projects. Make sure that we have the money to do the project. 01:16:53
At the end of the project. 01:16:59
And so we talked. 01:17:03
About the. 01:17:06
Capital reserve The difference between the budget and actuals. 01:17:07
We looked back over the last three years and we see it's been a trend recently of the budget anticipates. 01:17:12
Three million, $4 million in project. 01:17:19
But we're really only actually doing. 01:17:22
2122 we're doing about $500,000 in projects the other two years, and in 2122 when we did the most projects, we spent about $1.5 01:17:26
million. 01:17:31
And so that shows a couple of things. One is we did our CIP review earlier this year and we tried to pull back a $4 million list 01:17:39
of projects to a more reasonable 2 million and part of that was we were. 01:17:45
We just continue to see that we actually we cannot complete $4 million worth of projects. 01:17:51
In a given year with the size staff we have. 01:17:57
We have. 01:18:04
The budget for the CIP hadn't been realistic. We cut ours and basically in half this year when we went through the CIP. So I think 01:18:05
it's more realistic at this point. 01:18:09
But the other thing that this chart shows. 01:18:15
Look at each of these years and you add the the differences up for the three years. 01:18:19
There's essentially $10 million in projects that. 01:18:24
Have. 01:18:28
Haven't been completed over those three years, but we haven't protected $10 million in funding for those projects. 01:18:31
And so that led to, we already did the CIP review where we said we have more projects. 01:18:38
Then we have money available. 01:18:44
And. 01:18:46
I think when we brought that the CIP budget total. 01:18:48
Something like $18 million and bet the funding was, you know, 8 or $9 million, so. 01:18:52
So you can. 01:18:58
You know, if we aren't making sure that we. 01:18:59
Save that money for the project and that we eventually get into a spot where when we're finally ready to do the project, we don't 01:19:04
have the funding available. 01:19:09
So again, part of what we're trying to do is create that fund and keep it there when we plan to do a project. 01:19:14
Just a couple other points. 01:19:23
Again, just one thing I said earlier is that CIP projects. 01:19:27
It's they are. They don't typically go on. 01:19:31
Our annual. 01:19:35
Or they don't go by by our annual calendar. A lot of CIP projects take 2-3 even more years with something like the Bubbling 01:19:37
Springs project. 01:19:41
Which were a couple years into and we now expect to get done in about a year and so. 01:19:46
Creating the reserve helps to ensure that that funding remains available. 01:19:52
Through the life of that project. 01:19:56
It helps to make sure that the revenue is not pulled into the unassigned fund balance and used for other expenses or just 01:19:59
eventually used for operating expenses. 01:20:03
Umm. 01:20:08
It allows the city to create a savings account for the long term project. 01:20:09
And then lastly, it also will help us plan with for our. 01:20:13
Because what we're recommending doing is identifying about a million and a half dollars each year and just building that into the 01:20:17
budget. 01:20:20
So that we know we. 01:20:24
Have that amount of funding available rather. 01:20:27
As we saw in the past. 01:20:30
There'd be a $4 million CIP, but we didn't have $4 million available. So it's just trying to to make it all work together. 01:20:33
And and make everything add up. 01:20:41
So with. 01:20:44
The positive news I mentioned a little bit ago is last year's budget. We actually anticipate a $1.3 million surplus. 01:20:46
And so one good trick for us is when we have a surplus, if we immediately. 01:20:53
Create a savings account with it for a project and we're not tempted to spend it. And so with getting that news, we wanted to 01:20:59
create this capital reserve now and we're recommending using that to create it so that we don't have to pull it out of our 01:21:04
unassigned fund balance. 01:21:09
So we are recommending that the Council adopt A resolution to create that reserve policy and fund it with that surplus from fiscal 01:21:14
year 2223. 01:21:19
Yeah. Does council have any questions? 01:21:27
Thank you, James. I appreciate the. 01:21:30
So with bubbling springs. 01:21:35
We don't. 01:21:38
The anticipated 3.7 million or I know it's going to be between 3:00 and $4 million that we're going to have to come up with. So 01:21:40
we're going to take that from the unassigned general fund balance, correct. So there's the plan as of last week with this not 01:21:47
existing would be that that would have come from the unassigned fund balance. 01:21:53
Which would have reduced the unassigned fund balance from I think it was about $9 million to $5 million. 01:22:00
One goal is if we can create this reserve fund and actually fund it when we have some of these things happen, that could be 01:22:08
another potential funding source for for those types of projects. 01:22:13
But in this short term and in. 01:22:19
The view of the bubbling springs we're still going to is going to come out of the unassigned fund balance past practice that we're 01:22:22
trying to do away with. And we are also just to make a point that we're also going to look at applying for some grants and things, 01:22:27
but that that's our fall back plan is the unassigned fund balance. 01:22:32
OK. Thank you. 01:22:38
Councilmember Hernandez. 01:22:40
Thank you. Thank you, Mr. City Manager, for that report and for this proposal. I think it's strongly needed in order to secure. 01:22:42
Future for implementing capital improvement projects. 01:22:51
Mike, I have a couple of questions. Umm. 01:22:55
You say that we will allocate approximately 1.5 annually, and currently the 1.3 surplus came from. 01:22:59
Three different places and the hotel interest earned expenses lower. 01:23:09
Project costs lower than expected in the contract services area. 01:23:15
How? 01:23:21
How well, how? How confident are you that we'd be able to? 01:23:22
Enjoy another surplus in the future years like this, thank you. And I think this year the surplus. 01:23:27
Good timing. As far as you know, we were looking at creating this policy and trying to figure out how to fund it and then we got 01:23:39
news of the surplus and so you know it was great timing. 01:23:44
In. 01:23:49
I My proposal won't be to. 01:23:51
Count on a surplus. 01:23:53
It's going to be actually building this into the budget so that upfront we know that to have a balanced budget. 01:23:55
It has to include the $1.5 million. 01:24:03
And. 01:24:06
It's going to be tough probably the first couple years because the first couple years is like when we sort of have to make 01:24:08
adjustments to get our expenses within our revenues by a million and a half dollars. 01:24:13
But. 01:24:20
But the long term goal will be kind of building that in. So it's our budget sustainable. 01:24:21
And. 01:24:27
We're paying our general operating expenses out of our budget, but we're also starting to build up for capital projects out of our 01:24:29
budget. 01:24:33
So my second question in the capital. 01:24:39
Capital. 01:24:44
Project budget that's a CIP or the capital we calling that capital improvement project is is CIP, OK so. 01:24:46
Is it your your plan then to set up line item? 01:24:55
Allocation plans for each project so we can allocate a specific amount for each of our CIP projects and and leave it there so we 01:25:00
don't touch it. 01:25:05
Umm so? Because it seems to me that. 01:25:11
Bubbling Springs is a good example. We know it's going to cost this much. You put it in. 01:25:14
Into the CIP and a line item allocation and you're able to track it and not touch it for other projects. 01:25:19
Yeah, essentially. And so you know, we. 01:25:26
We recently updated our capital improvement project list and I think we're down. We went from three and a half million dollars to 01:25:30
about $2,000,000. 01:25:34
And so we're still sort of working, like in a perfect world, the amount of funding would match the amount of projects. 01:25:39
We're. 01:25:46
Where we had three and a half million in projects and no funding plan, but now we have $2,000,000 in projects, but a million and a 01:25:48
half. 01:25:51
Planned. So we don't, they don't quite go 1 to 1 yet. 01:25:55
But I think. 01:25:59
The long term goal would be to be able to just show, OK, here's our capital improvement projects and these are all funded. 01:26:01
Via the Capital Improvement Project Fund. 01:26:07
And so eventually it should match up. I think it'll take a year or two. All right, great. So one last question. 01:26:11
I know this is a reserve policy where? 01:26:19
Does the process for prioritizing projects, where does that go? If we have a, do we need a prioritization policy? 01:26:23
Does it get included here? Is it does that get accomplished somewhere else? It's accomplished with the actual review of the 01:26:32
capital improvement project. 01:26:36
And so we started that, I I know I've alluded to that a couple times, but we've started that process. But we're still planning 01:26:43
with the mid year budget to come and make some more adjustments to sort of make it. 01:26:48
Match one to. 01:26:54
All right. Thank you. Good job. 01:26:56
Are there any other questions? 01:26:59
Are there any public comments regarding this item? 01:27:02
No public comments. 01:27:04
The recommendation is to adopt A resolution entitled A Resolution of the City Council of City of Port Hueneme, CA adopting the 01:27:06
General Fund Capital Reserve Policy and authorizing an initial transfer of funds at the fiscal year 20/22/23 year end in the 01:27:12
amount. 01:27:18
$1,000,500 may have a motion in a second. 01:27:24
The correct amount might be 1,500,000. I'm sorry, I'm not sure what I said, but. 01:27:30
1,500,000. 01:27:36
2nd. 01:27:39
Is there a discussion? 01:27:43
Anybody would like to? 01:27:45
Madam Clerk, can we please take a vote? All in favor, aye. 01:27:47
All. 01:27:51
Hearing none motion passes unanimously. 01:27:53
Moving on to item number seven, discussion of potential revisions to cannabis program. Will staff please present the report? 01:27:56
Thank you and I'll introduce. 01:28:04
Tony Stewart, who's been working. 01:28:06
Cannabis program for the long term. But before I just introduce, I'll just. 01:28:08
As a reminder, quickly note. 01:28:14
We. 01:28:17
We had. 01:28:18
Big development agreement review about a month ago and at that time we had said that. 01:28:20
We wanted to. We recommended that council authorizes to go meet with the different. 01:28:25
Cannabis businesses in town and try to come up with. 01:28:30
Win, win opportunities that we can make some changes to help our businesses remain. 01:28:35
Competitive, especially with the changes occurring in Oxnard and Ventura currently. 01:28:40
So we've done that and this report is going to talk about some of the things that we've talked about with with them some possible 01:28:46
win, win opportunities. 01:28:50
And then it's also going to go into as we're going through that process. 01:28:55
And identified some issues related to some of the. 01:29:01
Revenue that we are collecting and we'll explain. 01:29:04
That issue and what we're proposing to do to address it. 01:29:08
With that, I'll hand it over to to Mr. Stewart. 01:29:12
Excuse me. Thank you, Mr. Vega, and good evening council staff audience. 01:29:16
So as Mr. Vega mentioned, we have been working with our cannabis folks, but just. 01:29:22
As a refresher, since none of you were up on the Dyess back in 2017. 01:29:28
But we actually began our cannabis program after a significant public outreach and whatnot through 2016. 01:29:34
And we were the first or the second city right behind Ohio in Ventura County to to come up with such a program. 01:29:42
And the reason why we did that is because at the time we were running a structural deficit with our budget and so being built out 01:29:49
with a limited number of opportunities to enhance our economic. 01:29:55
Profile At the time, it was determined to look into allowing cannabis businesses here in the city. 01:30:02
And initially, we have allowed basically any type of cannabis business with the exception of outdoor cultivation, mainly because 01:30:10
we have no room for outdoor cultivation here in the city. 01:30:15
And we allowed these in unlimited numbers. We figured at the time that the market would determine how many businesses would come 01:30:21
into the city. 01:30:26
However, as most of you are familiar, we have quite a few dispensaries and delivery only services and so a cap was put on the 01:30:31
number of each of these businesses a couple of years ago. 01:30:36
And again, the main purpose for this was to raise money for the general fund. We call this a contractual payment and I'll talk 01:30:43
about that in a little bit. 01:30:47
But we also have secondary benefits such as local employment opportunities, sales tax revenue. 01:30:52
Safety via the security officers that are required or security guards that are required, we have found that certain locations have 01:30:59
actually improved. 01:31:03
Their their crime ratings from. 01:31:09
Plus, it just brings more people into the city to shop and eat here and, you know, visit our amenities. 01:31:12
So right now we have set in place contractual payment rates of that table, which include a $7.00 per square foot. 01:31:21
Amount for cultivation that's a standalone, not with a micro business. 01:31:33
Manufacturing is 2% of gross of revenue. Same with distribution. 01:31:37
Retail Dispensaries and Delivery only services, which are also called. 01:31:42
Non storefront dispensaries are 5% of gross revenues. 01:31:47
Micro businesses that are wholesale or 2% and micro business with that's a retail operation is 5% of the gross revenues. 01:31:52
And the reason why we have this is because, as you know, we don't have a tax cannabis tax here in the city. In fact, we are the 01:32:02
only. 01:32:05
City that I'm aware of that has the development agreement situation in place. 01:32:09
In lieu of that tax. And so that's why we call these contractual payments because they're technically not a tax. 01:32:14
And as you are all familiar, I believe the process for business to open here in the city is it's a pretty complicated one and very 01:32:21
thorough. 01:32:25
80% of the work is actually done during the certificate of approval process, which is done through the review committee which is 01:32:30
made-up of the city manager. 01:32:34
Police chief myself. 01:32:40
And a couple of other staff members including our consultants at. 01:32:42
And then if the certificate of approval is granted by the committee, then the applicant obtains a conditional use permit and the 01:32:46
development agreement from you. 01:32:51
Currently we have 9 dispensaries open, seven delivery only services and one micro business. 01:32:57
Say partially. 01:33:04
With one delivery service and one dispensary ready to open and then two approved but unbuilt a Micro Pismo. 01:33:05
Businesses and one pending a dispensary. 01:33:12
So as you're all familiar, up until about a year ago or so, our businesses were doing fairly well. 01:33:18
However, revenues have become flat, if not started dropping from our businesses. 01:33:24
And that's due to a number of factors. That includes competition with Oxnard Ventura coming online, for instance. 01:33:30
Loss of COVID stimulus checks, which were heavily spent during the time on cannabis. The economy in general is not the best right 01:33:36
now with regard to spending. 01:33:42
Plus, there are high state taxes and strict regulations that are not helping our legal businesses. 01:33:49
Fight the black market. 01:33:57
So last year the City Council permitted consumption lounges in conjunction with existing dispensaries. And what I mean by in 01:33:59
conjunction is that they have to be either attached or within the dispensary itself. 01:34:05
And we limited that to five dispensaries, but it was done mainly to keep our our businesses competitive in the overall local 01:34:12
marketplace. 01:34:16
Currently we have two lounges open, one with wheelhouse and the other with skunk masters. 01:34:21
However. 01:34:27
As Mr. Vega mentioned, we think that there may be some additional program revisions that are needed. 01:34:30
Do again maintain the city's competitive edge and the the local market. 01:34:35
So, as Mr. Vega mentioned, we met with several of the dispensary owners and we sent all of them surveys. 01:34:41
Basically asking to brainstorm about what they felt would be. 01:34:48
Good improvements to help them in. 01:34:53
In our local economy. 01:34:56
Staff Me also surveyed the regulations of other jurisdictions here in Ventura County as well with Santa Barbara County. 01:34:59
And also several other cities that work that are known to have robust cannabis business programs. 01:35:07
And a detailed spreadsheet with those findings is attached to your staff report. I won't go into all the details here. 01:35:13
But in summary. 01:35:21
With our meetings and the surveys, the following ideas were. 01:35:23
Produced. 01:35:29
Such as reducing the amount of contractual payments to the general fund. 01:35:30
Being allowed to expand hours of operation. 01:35:35
Being allowed to have more temporary uses than they're currently allowed. 01:35:38
Be allowed to also have additional temporary signs above and beyond our current 21 day per year requirement. 01:35:43
They asked to make. 01:35:51
Events such as the Beach Festival be more worth their return on investment. 01:35:54
They allow they want it to be allowed to have certain uses that just stand alone distribution be allowed where they currently are 01:36:01
not. 01:36:04
Also be allowed to have stand alone consumption lounges because if their their location doesn't allow them to have one attached to 01:36:10
it or within it if they could operate 1 separately from where they're located. 01:36:15
And then also an idea came up would be to organize an association made-up the cannabis business operators here in the city, 01:36:22
similar to a Chamber of Commerce, so to speak. 01:36:27
And then with regard to the survey that was done, so looking at that second column there, that's Ventura and Santa Barbara County 01:36:35
averages. 01:36:39
Of the hours of operation averaged about 8:30 AM opening. Right now we're at 9:00 AM to 9:00 PM. 01:36:44
Cultivation tax and I use the term tax here because everybody else has a tax and that is 4% on average or 8.5 dollars per square 01:36:51
foot. 01:36:57
And that was mainly for a Thousand Oaks in Ventura. 01:37:03
The dispensary tax is actually higher than ours at 5.7%. We're at 5%. 01:37:07
Distribution tax also slightly higher at 2.2% versus our 2%. 01:37:13
Manufacturing tax higher at 3.1% versus our 2%. 01:37:17
And then annual review fees buried among the different cities, some had very high fees, some had no fees whatsoever. Ours is right 01:37:22
now about $16180 and that's for that annual development agreement review. 01:37:29
And then looking at all the agencies surveyed, it was also fairly similar with regard to the averages compared to ours. We're 01:37:37
actually pretty payable right now. 01:37:42
Just looking at this on paper. 01:37:47
I also, like I said, looked at a couple other cities, just getting ideas on how they handled maybe some of their if they had 01:37:51
anything unusual that we didn't have that maybe we could look at. 01:37:57
Desert Hot Springs in West Hollywood and Cathedral City all allow consumption lounges with their dispensaries, but Palm Springs 01:38:04
actually allows them to be standalone. 01:38:08
The rest of the agencies that looked at don't allow the consumption lounges right now. 01:38:14
And then Desert Hot Springs actually also allows hotels that allow on site consumption. How? As long as there's a dispensary 01:38:18
located at the hotel property. 01:38:22
And that's to sell the cannabis to the guests directly. 01:38:27
As opposed having come. 01:38:30
And so, looking at all that, the city manager, police chief, myself, our finance director here and our city attorney met to go 01:38:34
over the ideas I just presented to you, as well as the survey findings. 01:38:41
Consider what really could be brought to you for consideration this evening. And so there. 01:38:50
Six ideas that we came up with. 01:38:56
So the first one here is reducing our city fees for the ongoing operation of businesses here in the city in three ways 01:38:59
potentially. 01:39:03
The first the chief is actually working on these now and that's to reduce the life scan background checks that he that his staff 01:39:08
put together right now for employees. 01:39:12
By about half, from 400 to $200 per background check and also to allow a $75 transfer fee for employees. 01:39:16
And the dispensaries will tell you, I think, that with their staff turnover, this could be a significant savings for them. 01:39:25
We're also going to be pursuing opportunities to potentially reduce the audit fees that we collect annually. 01:39:33
Currently our audits are a couple years behind so we're doing catch up, so that was because of COVID. 01:39:41
And then we're gonna have a little bit more discussion about that excise taxes here in a bit, but that's one of the reasons for 01:39:46
the excise tax situation. 01:39:50
Right now HDL is our contract auditor. That was because back in 2018 there were very few to choose from, but nowadays. 01:39:56
Hopefully there are more firms out there, so the finance director and I are considering sending out an RFP to see if there is 01:40:05
somebody that could perform the audits for a lower price but do the same job. 01:40:11
You might ask why we don't do up the audits here in house, and we could, but it's preferable for transparency to have a third 01:40:18
party. 01:40:22
Do the actual audits. 01:40:26
And then finally, we're looking at simplifying the development agreement review fee. 01:40:28
Process a little bit and I'm working with the city attorney on how we write those findings and whatnot. I will probably also be 01:40:35
handing over some of that to the associate planner who has a lower hourly rate than I do. So we're looking at having a reduction 01:40:40
in the annual review fee cost as well. 01:40:46
Won't be huge, but still every little bit I think would. 01:40:53
The second item, we had two hard dispensaries specifically asked to be in operation from 8:00 AM to 10:00 PM. Right now our 01:40:57
lounges are allowed to go to 10:00 PM and actually we've been allowing our dispensary since COVID to be open at 8:00 AM to spread 01:41:03
out the hours at the time. But. 01:41:09
Right now we. 01:41:17
Supposed to be 9:00 AM to 9:00 PM, but talking to the Chief and with regard to making sure that the security was employed for 01:41:19
those extra 2 hours, we think that we could possibly well that we could support the additional hours on a permanent basis, which 01:41:26
again would hopefully help increase the sales at each facility. 01:41:33
We would also recommend allowing freestanding consumption lounges. For example, HPC right now is on the 3rd floor. They have the 01:41:41
room, but they have to would have to sprinkler the entire building. 01:41:46
Which would be cost prohibitive but if they could find a different location. 01:41:51
They might be interested in operating such a lounge. We would still recommend that the existing Cap 5 be kept in place and that of 01:41:56
course our existing dispensaries, who are known entities, be the operators of these additional of these languages in different 01:42:01
locations. 01:42:06
Also point out that if somebody did want. 01:42:12
Lounge at a certain location. They would still have to go through the entire process. I meant. 01:42:15
Approval CUP and the development agreement. 01:42:22
In working with one of our. 01:42:29
Folks that you'll hear from in a little bit in a separate. 01:42:32
A request was made to reduce the contribution towards the general fund from. 01:42:36
Or cultivation operations for micro businesses. 01:42:42
This would only affect two of our. 01:42:46
One is the existing one in operation, the other one has not even started building yet, so we have not been. 01:42:50
Accounting for their revenues in our budgeting at all. 01:42:55
And so again, we looked at the other cities, especially in this county and Santa Barbara, again, they average 4%. So if we did 01:43:01
drop to 3%. 01:43:06
It would be a little bit lower than that average. 01:43:12
But the idea was at least to hopefully help these businesses, maybe incentivize them to finish their build outs and begin 01:43:16
generating revenues at all for us with regard to their cultivation. 01:43:22
The fifth one is a little trickier. It would be to allow stand alone distribution operations in the commercial zone. Right now 01:43:29
they're only allowed in the manufacturing zone. 01:43:34
And this would require an amendment to the municipal code, the zoning ordinance. 01:43:39
And it would also require approval by the Coastal Commission. And the reason why we didn't consider this back in 2017 was because 01:43:44
we didn't want to touch the zoning ordinance at the time. We wanted to have a stand alone. 01:43:51
Umm. Umm. 01:43:58
Cannabis ordinance, because that would not require Coastal Commission action and we were very interested in trying to facilitate 01:43:59
getting the program up and running. 01:44:03
So at the time we basically. 01:44:09
Are allowed uses, for instance a dispensary to permitted use in that respective zone. Say a dispensary is similar to a pharmacy 01:44:13
which is allowed by right in the commercial zone. So that's how we came up with the the uses that were allowed at the time. 01:44:20
If we did do this, this would be kind of a longer term project because again it would require going back and going to the Coastal 01:44:29
Commission, so it wouldn't happen too quickly here. 01:44:34
And then finally, we would recommend being allowed or allowing our dispensaries to operate up to. 01:44:40
Temporary uses that are minor in nature, say a food truck or vendor tent out in a parking space. 01:44:49
For up to twice a month without having to get the special use permit from staff every time. 01:44:55
Just allow them a little bit more freedom and would also not impact staff. 01:45:00
However, if we had a larger event, say what tree factory had that recently for The Day of the Dead, that would still need to come 01:45:06
back to you as a special use permit. 01:45:11
To be approved by the council. 01:45:17
And then there were a couple of other ideas too. For instance, I mentioned additional temporary signage, but we're already looking 01:45:20
at updating our very antiquated sign ordinance and looking at allowing all businesses to have additional temporary sign. 01:45:27
I'll be coming back to you separately anyway. 01:45:35
And then finally, the consideration of the Cannabis Businesses Association. 01:45:37
That would be outside the purview of staff and city here. Like I said, be more of a Chamber of Commerce. 01:45:45
We could certainly participate, but that would be something that the the cannabis businesses would be expected to. 01:45:51
Form if there was enough interest on their end. So we're not actually asking for any action on your part at this point. 01:45:57
And so at this point, I'm going to turn this over to Mrs. Arrow here, our Finance Director, and she's going to talk to you about. 01:46:06
The excise tax. Thank you. 01:46:14
Good evening, City Council, staff and members of the public. I'm going to go over the excise taxes as it relates to cannabis 01:46:17
businesses. 01:46:22
Umm. 01:46:27
Cannabis businesses are subject to two taxes, the regular sales taxes and then a 15% excise tax. 01:46:28
Prior to January 1st, 2023. 01:46:36
The cannabis distributors were required to calculate the excise tax. 01:46:39
And collect it from the retailer and submit it to the state of California. 01:46:45
To. 01:46:49
And the calculation was complex because they were selling the product at wholesale and there was a markup that they were supposed 01:46:51
they were using to mark up the product in order to collect that excise tax. That markup ranged anywhere from 62% to 75%, and they 01:46:58
were responsible for sending submitting the taxes to the state. 01:47:05
Then on the other hand, the retailer. 01:47:12
Was supposed to collect those taxes from the. 01:47:15
And there. 01:47:19
Specific requirements that that retailer was supposed. 01:47:21
Follow One of them was that on the sales tax receipt that the consumer received, had to have language in there that includes 01:47:25
stating that the sales tax was included. 01:47:30
And. 01:47:39
The city's position on the excise tax was always not to tax on tax. 01:47:41
And so the city's position when this sales, when the cannabis businesses were initiated, was to set the contractual payment to the 01:47:46
city based on gross receipts. 01:47:51
And the intent was to allow for the option of any taxes, such as the sales tax and the cannabis. 01:47:57
Excise tax, but because of the complexity of setting up the point of sale systems at the time and being able to identify that 01:48:03
excise tax. 01:48:08
And provide support that those excise taxes were actually collected from the consumer. 01:48:14
As of January 1st, 2021. 01:48:20
The girls receipts reported to the city did not include that deduction of excise taxes anymore, so they were being allowed all the 01:48:23
way through 2021, January 1st 2021. 01:48:29
Because it was not consistent, retailers were not able to provide that support to the city. 01:48:35
And the distributors were the one at the time submitting the taxes to the state of California. 01:48:44
And so to a recent, I'm going to say recent events prompted the city to really revisit this gross receipt calculation again. And 01:48:54
that was, as Mr. Store mentioned, the HDL audits. We put a pause on the audits because of COVID. So there were a set of audits 01:49:00
that were completed. 01:49:05
From inception to write about before cov. 01:49:12
And then after COVID happened, there was a pause on the audits from HDL. 01:49:15
We started the audits early 2023, which was about the same time that the state. 01:49:20
Shifted the responsibility of the collection and reporting of excise tax. 01:49:26
From the retailer, from the distributor to the retailer. 01:49:32
And during the AUD. 01:49:36
It was prompted the city and the staff and HDL to reconvene and really look at the development. Agree. 01:49:39
And really take a look at what that gross receipts. 01:49:48
Language in the development agreements provided are stated. 01:49:52
And basically the the language states for all but three agreements that any taxes that are collected for the purposes of being 01:49:57
forwarded to the state. 01:50:02
Should be deductible from gross receipts, which was not the case. 01:50:08
Staff has gone back and we have calculated the amount. 01:50:13
Retroactive. 01:50:18
Credit that would be due to those businesses from January 1st, 2021. 01:50:20
Which was the time that we that they. 01:50:25
Excise knows not deductive from the gross. 01:50:29
Through June 30th, 2020. 01:50:32
And the amount is 750,000. 01:50:34
For all businesses except for the. 01:50:38
Those development agreements are a little bit different, and those are the original the 1st 3 agreements, the language on the 1st 01:50:41
3 agreements. 01:50:46
Are doesn't. The language doesn't really clarify the deduction of sales taxes or excise taxes. 01:50:51
But staff is recommending we've looked at this with the auditors. 01:50:58
And if the credit was extended, extended to all of the businesses, including all three. 01:51:03
The total amount of the credit would be 1,000,001. 01:51:11
And so 370,000 pertains to those three businesses. 01:51:15
And this will ensure that all of the cannabis businesses are treated similarly. 01:51:20
The funds for the one million 120. 01:51:31
As Mr. Vega mentioned, our results this year were stronger in 2023 than we had in the budget. 01:51:35
Staff in anticipation of the pay. 01:51:43
Has said a liability aside, so if revenues have been reduced by the 1,000,001. 01:51:47
And. 01:51:53
Those will be reflected if council approves the appropriation. 01:51:55
On the audited financials. 01:51:59
For fiscal year 2223. 01:52:01
Again after this deduction, which is already net of the information that was presented earlier. 01:52:07
We anticipate staff anticipates surplus. 01:52:14
In fiscal year 2223 of 1,000,003, which is the amount that we are recommending to be transferred to the reserve, the capital 01:52:17
improvement reserve. 01:52:22
And no additional impact from the unassigned is expected anticipated. 01:52:29
Um. 01:52:35
From this payout or this retroactive pay? 01:52:36
And we're anticipating that the unassigned fund balance at the end of June 30th, 2024 will be approximately 6.6 million. 01:52:40
And then going forward? 01:52:48
The approval of the action. This action would require a budget adjustment to the revenues because we're going to be collecting 01:52:52
less. 01:52:56
As the dispensaries will be allowed to deduct the excise tax from gross revenues, therefore. 01:52:59
Will be paying the contractual payment on a lesser amount of revenues. 01:53:07
We're not asking for an appropriation at this time as we're going to be coming back to council with the. 01:53:11
Budget adjustments early in 2020. 01:53:17
And we'll incorporate this into those into the mid year budget. 01:53:21
And the reduction of the required contractual payment for the cultivation operations of retail micro businesses from the 5% to the 01:53:31
3%. 01:53:35
Mail could also have a negative impact fiscal impact. 01:53:40
But no budget adjustment is necessary as the revenue was not known at the time when we produce the budget. 01:53:43
Therefore it's not included in the budget. So any revenues will be additional and will be included in the mid year. 01:53:50
Umm. 01:53:56
And then the reduction would only affect the two approved businesses, for it's anticipated that this reduction will encourage the 01:53:57
completion of the build. 01:54:02
Of each of these business facilities. 01:54:06
One in particularly is partially built out and the other has not commenced construction. 01:54:10
And once operational, the revenues generated will be increased, increased above today's sales levels. 01:54:15
And so the recommendation of. 01:54:26
For today. 01:54:29
Would be to receive the report provided by staff, take public testimony on the matter and after doing so, authorized staff to take 01:54:31
the steps necessary to implement. 01:54:36
The six items recommended to improve the Cities Cannabis program. 01:54:42
#2 to authorize the appropriation for the. 01:54:47
Of cannabis revenue related to the excise tax. 01:54:51
From the period January 1st, 2021 to June 30th, 2023. 01:54:55
In the amount of one million 120. 01:55:00
And #3 approves the house recommendation to standardize. 01:55:03
The calculation of gross. 01:55:07
Effective July 1st, 2023. 01:55:09
To allow for the exclusion of excise and sales taxes for all existing cannabis businesses. 01:55:12
I was taking questions. 01:55:22
Are there any questions for staff? 01:55:25
Thank you, Mayor. 01:55:30
Can you help me understand I I was listening intently but I maybe I missed it. 01:55:32
When you spoke about the 1st 3 dispensaries. 01:55:38
You use the word. 01:55:42
Allow the credit. What? Why wouldn't? 01:55:45
The language, the language and the development agreement for the first three dispensaries is slightly different than the language 01:55:49
for the remaining development agreements. The remaining agreements is very specific as far as the stating that the tax collected. 01:55:58
For the purpose of being forwarded to a taxing authority should be deducted. 01:56:07
And that's not the case for the other three. 01:56:13
So did the three. 01:56:16
First, dispensaries. 01:56:18
Receive a benefit that the additional ones did not. 01:56:20
Not related to this and I'm trying to think if there's like any benefit we could really argue they received and I don't think 01:56:26
there's any additional benefit. 01:56:30
Um. 01:56:34
Just to give like a little bit of an example of what we're referring to, like the first three basically said. 01:56:36
You have to pay this fee on any revenue. 01:56:42
And then the rest of them said you have to pay this fee on any revenue. 01:56:45
Accept tax, accept sales taxes or excise taxes. So those ones are very clear that they are due the refund. 01:56:50
We had to meet and sort of talk through. The first three are not as clear and you could sort of make the argument either way. 01:56:58
I ultimately recommended refunding it and it's because. 01:57:05
I believe kind of putting myself back into 2017 cannabis world when things. 01:57:10
You know, it was like we had no idea. We were trying to sort of guess what was going to happen next. 01:57:19
I think that that language originally saying. 01:57:24
Umm. 01:57:28
We're collecting 5% on any revenue. 01:57:29
I. 01:57:31
Sort of assumed that. 01:57:33
Obviously we wouldn't collect it on tax, you know, on sales tax or excise tax. 01:57:35
And so it's not clear in the agreement. And so you can make the argument, well, clearly we didn't add it. So we clearly must not 01:57:40
have intended or like I said, putting yourself back in time. I think at that time we all just assumed, well obviously we aren't 01:57:45
collecting on taxes. 01:57:50
A tax on tax, essentially what? 01:57:55
Our finance. 01:57:59
We've reviewed it, we've worked through that. We are recommending refunding it for those 3. 01:58:01
Those that's one of the recommended actions in this staff report, because it is. 01:58:08
A discretionary decision the other, the other dispensaries, it's we're just correcting a mistake this one. 01:58:14
We're basically asking the council to confirm that our interpretation of that language is correct and then allowing us to do that. 01:58:22
I do have a follow up question if you don't mind. So based on the records. 01:58:29
Can you alltel whether? 01:58:36
Paid based on the taxes and excise taxes or not? 01:58:38
We. 01:58:45
That they. 01:58:48
Well, I'm going to ask finance to confirm this so we can see that they've. 01:58:50
5% of even their excise tax. 01:58:56
Right. And we've confirmed and I think one of the ways to confirm it is the HDL. 01:58:59
Because they do the revenue. 01:59:06
And so for the ones, some of the ones that have been completed then the newer audits? 01:59:08
The businesses did not deduct the excise taxes. 01:59:14
But the dollar amount, the 1,000,000 and 120 is our estimate based on the information that we have received from the dispensaries 01:59:19
the the gross revenue. 01:59:24
We do intend to validate that further. 01:59:29
Before we actually payout the money. 01:59:32
And we think there's little possibilities because one point would be we were working through this. 01:59:37
If a cannabis dispensary sells cannabis. 01:59:43
There's excise tax if the cannabis company sell. 01:59:47
Bottled water or. 01:59:51
A tshirt. 01:59:54
There likely isn't excise tax, so part of the validation we have our finance department and HD. 01:59:57
Kind of making sure that the numbers match up that. 02:00:03
That we have the correct amount that included the excise tax and the ones that don't include excise tax. 02:00:10
No pun intended, but could we break this down? Because there seems to be a lot of smoke in the air here. 02:00:21
Let me see if I could just say what I think I understand. 02:00:30
We had two Community development agreements. 02:00:35
In. 02:00:39
One that caused the taxing of the tax. In this case it's a 5% fee. 02:00:42
Affected 7 dispensaries. 02:00:50
And not. 02:00:52
The city is holding on to $1.2 million that we need to give back. 02:00:56
That correct? 02:01:03
Basically. 02:01:04
The dispensaries. 02:01:07
Just to be clear. 02:01:09
3. 02:01:13
They've all been. 02:01:15
The 5% on their excise tax and subject to we're confirming that, making sure we double check it, but that's where it gets smoky. 02:01:17
So they've all been paying it. 02:01:21
The first three. 02:01:25
It was vague language as to whether they should have been paying it or not. 02:01:27
The other ones, it wasn't vague that we they shouldn't have been paying it. We definitely need to refund those ones, and then 02:01:31
we're asking for to also confirm we're refunding the original 3. 02:01:36
But everyone's in agreement that we shouldn't. 02:01:42
Paying a 5% fee on taxes. 02:01:44
That's what that's our understanding and that's what we're recommending to correct the 1st 3. 02:01:48
Well, to correct all of them, but particularly the first three, that's part of our analysis of why we're recommending. 02:01:55
Even though the language wasn't clear on those three to. 02:02:01
I don't think the city's intent was to collect a tax on a or collect a revenue on a tax, because it's not a tax. 02:02:04
But to collect a revenue on state tax and then? 02:02:11
Only other question is regarding cultivation, cultivation and manufacturing has been. 02:02:15
Well, actually I have another question after. 02:02:21
I think we only we don't have any cultivation in the city except for tradecraft. Tradecraft, yeah. 02:02:25
And they're the next item on the agenda. So we'll get into that a little bit more, but can't that next item affect? 02:02:31
The way we feel about. 02:02:39
One of the recommend one of the six recommendations, which is to lower it. 02:02:41
So it kind of seems a little premature, yeah. And. 02:02:45
Yeah. 02:02:50
We can hold that particular item for the next item and I think particularly with some of the late breaking news we got from 02:02:53
tradecraft, I think it would make sense to hold that particular recommendation for the next item. OK. And then my final question 02:02:58
is, I think I heard finance say that. 02:03:03
Cannabis revenues have flap or have gotten flat or may have dropped. 02:03:10
So can we? Definitely, definitively. 02:03:15
What the? 02:03:21
Drop in sales has been over the last year. 02:03:22
Have we adjusted our budget as such? 02:03:27
We so I'm going to see if we have a number to what they've dropped, but we we. 02:03:31
They have not been adjust. 02:03:38
To show a drop yet that was sort of that last slide, We are planning to make an adjustment in January. 02:03:41
For the mid year budget and and. 02:03:48
Building that into the budget because. 02:03:51
We expect a $400,000 drop just from not collecting the tax on tax in the future. 02:03:54
And so there's $400,000, but there's still the ultimate question. And I think when we've met with the dispensaries, it's becoming 02:04:01
very clear that they are seeing drops. 02:04:05
On top of, you know, on top of justice, the not collecting the excise tax portion, there's going to be an additional drop. 02:04:10
So we're looking at that. We had a meeting Friday with cannabis tax consultants to talk about the impacts they're seeing 02:04:17
statewide. 02:04:21
And we're going to have to build some of that into the budget. There's going to be some impact. 02:04:25
Thank you. 02:04:32
Are there any other questions? 02:04:35
Are there any public comments regarding this one item? 02:04:37
Yes, we have a public comment from Zahir Walshi. 02:04:40
Good evening, Mayor Pro Tem, Mayor, staff and everybody else and audience. 02:04:52
In regards to the Adams, I'm one of the individuals that actually is a partner for the city of Port, Wyoming. I support a lot of 02:04:58
cannabis businesses. 02:05:01
A lot of deliveries, including another dispensary, HP. 02:05:05
So I'm here to say that I'm in support for all the recommendations the staff and the admins making in regards to our taxes. 02:05:09
In regards to distribution license, I would love to see that still take place because I'd love to figure out how to get additional 02:05:18
tenants into my building as the market is changing and the economy is taking a different toll. 02:05:23
In addition to add to that, I would love to. I know I brought this up to the staff, but I would love to figure out how to actually 02:05:30
go back to some of the old regulations which includes gambling and card rooms. 02:05:35
And seeing if we can add that into some mixed-use property usages and get it take advantage of that different industry and see if 02:05:41
we can get new tenants there. 02:05:45
Which are working and building really quickly and seeing if we can do that into our commercial zone properties. 02:05:53
The smoking lounge expanding, being able to expand as they said, into a different space. For example, we have additional space 02:06:01
upstairs we'd like to have into the game room or additional space to increase the amount of customers coming through the door. 02:06:08
I heard the non-smoking. 02:06:15
Policy or the speeches that all the kids gave, which was pretty amazing and I guess that's one of the reasons we created a smoking 02:06:18
lodge. 02:06:22
What I'd like to create is a different type of smoking lounge also, which is the cigar lounge or a tobacco lounge where it's 02:06:25
indoor ventilated? 02:06:29
And it's keeping that harm giving the opportunity for those individuals in those mixed-use purposes to go have a place to go and. 02:06:34
Be able to smoke in a nice, safe environment and still keep the health concerns down for the community. 02:06:41
That's it for me guys. Thank you guys again for supporting all the cannabis businesses. Again, we are partners as we have. 02:06:48
Invested in quite a bit of real estate in this location and we have supported the cannabis businesses, so anything we can do to 02:06:55
help them survive. 02:06:59
Be a great great help. Thank you guys. 02:07:03
Real quick, none of the recommendations had anything to do with allowing them to create their own organization. I. 02:07:09
Like a cannabis organization. I know it was mentioned, but it's not at any of the recommendations, right? 02:07:16
Right. Again, that would be more on the businesses themselves to create and we could certainly support. 02:07:21
But it wasn't a recommendation. 02:07:27
Because one of my ideas. 02:07:31
That I had had at one point was. 02:07:33
You have. 02:07:35
Since they do have to provide A1. 02:07:37
Back to nonprofits. A way for nonprofits to approach the cannabis businesses and then for cannabis businesses to then. 02:07:40
Decide which one of those projects they would want to fund. But. 02:07:46
That's not in discussion tonight. 02:07:50
But I do like that idea of them organizing and and starting. 02:07:53
Something like a Chamber of Commerce. 02:07:58
Keep in mind too, if a nonprofit comes to us, we actually make that suggestion that they go approach the dispensaries as well. 02:08:01
That. 02:08:07
All right, so the recommendation is to. 02:08:08
Thank you. 02:08:13
Dear Tony Stewart and members of the Port Wyoming City Council, We would like to express our gratitude to the Board and the City 02:08:15
of Port Hueneme for recognizing the difficulties and obstacles faced by compliant cannabis businesses in this atmosphere where our 02:08:20
business is still considered unlawful according to federal law. 02:08:26
We cannot operate our business like other businesses in Port Hueneme due to federal tax law 280 E This law prohibits us from 02:08:32
deducting any otherwise ordinary business expenses from gross income associated with the trafficking of schedule one or two 02:08:40
substances. As a result, we are unable to take advantage of any business deductions in our tax on everything we pay other than the 02:08:47
cost of goods. This results in US paying over $1,000,000 yearly to the federal and state government. 02:08:54
Furthermore, we still face many other challenges, such as banking issues over saturation of dispensaries and competition from the 02:09:02
black market cannabis sales. 02:09:06
These challenges make it difficult for all compliant cannabis businesses to operate. It is important to remember that this 02:09:11
business is not just for recreational use. 02:09:15
It is proven that cannabis cannabinoids, including CBD products, are beneficial for people as an option for the treatment of 02:09:20
conditions that would otherwise entail prescription and opiate use. We are grateful that the city is considering changing the fee 02:09:26
structure to exclude excise tax in their calculations. 02:09:32
This will help us to better serve and assist the various programs in the city that will actually benefit the citizens of Port 02:09:38
Wyoming. 02:09:42
Any relief the city can provide will enable us to keep our doors open. Thank you for your time and consideration. Sincerely, 02:09:45
Patricia Tatum. Mark Tatum, that concludes PUBLIC. 02:09:50
Thank you, Madam. 02:09:57
And then just to clarify, the recommendation is to include those other three businesses, right? 02:10:01
Yes, OK. 02:10:06
So the recommendation is to 1 authorized staff to take steps necessary to implement the six items recommended to improve the 02:10:08
city's cannabis program. 02:10:12
To authorize the appropriation for the refund of cannabis revenue related to excise tax collected from January 1st, 2021 to June 02:10:16
30th, 2023 in the amount of. 02:10:21
About 1,120,000 and three approved staff's recommendation to standardize the calculation of gross revenue effective July 1st, 2023 02:10:28
to allow the exclusion of excise and sales taxes for all existing cannabis businesses. May I have a motion in a second? 02:10:37
Move. 02:10:47
All staff. 02:10:48
2nd. 02:10:50
Give me a real quick, we did have a comment about holding off on the the 3% versus 5% for cultivation. 02:10:52
Did we want to do that with the next item or for now? 02:11:01
So it's removing the recommendation related to cultivation. 02:11:10
Fees until the next item. 02:11:17
OK. 02:11:20
Madam Clerk, can we please take a vote? 02:11:25
All in favor. 02:11:28
All opposed. 02:11:30
Hearing none motion passes unanimously. 02:11:32
All right. Moving on to public hearing item number 8. Continued hearing on annual development agreement compliance review for 02:11:36
tradecraft farms and finding the exemption from Sequa. 02:11:41
Will staff please present the report? 02:11:47
Yeah. 02:11:50
I will briefly note I think. 02:11:52
Mr. Stewart and I may each sort of speak to a couple of points. 02:11:56
We had held a public hearing on October 16, 2023 last month. 02:12:01
To review 8 development agreements. 02:12:06
The City Council unanimously took action on 7 of the 8, but continued. 02:12:10
The Hearing on Tradecraft Farms Development agreement to this meeting date certain. 02:12:14
Umm. 02:12:20
And it was continued to provide the developer time to to provide additional information related to some requests that they had, 02:12:21
including one of the requests was. 02:12:26
That the city look at the cultivation. 02:12:31
Percentage payment required. 02:12:35
And so we looked at that as mentioned in the last item, we looked at some of the areas, some of the different agencies that have 02:12:38
the cultivation. 02:12:43
Are they actually have a cultivation? 02:12:48
And we found that that was the one fee that we were higher. 02:12:51
Average for look for the agencies we compared to. 02:12:56
A couple of the agencies were at 4%. 02:13:01
Um. 02:13:06
And then a couple were even at 3% including the only. 02:13:10
I think the only other. 02:13:15
It was a oh, hi, it was at 3% and I think City of Ventura was at 4%. 02:13:19
And so, so we looked at those. We proposed the 3%, the reduction to 3%. 02:13:23
To the applicant tradecraft. 02:13:32
On. 02:13:38
Thursday and then on Thursday we received a notice. 02:13:39
Tradecraft was going to put together an additional proposal, because as they were running through numbers, they. 02:13:45
Still running into challenges. 02:13:55
And then I think it was Friday that we got a proposal from Tradecraft, and we shared that. 02:13:57
With the Council and. 02:14:03
But there was a. 02:14:05
Sort of an updated proposal from Tradecraft. 02:14:07
Because we had scheduled. 02:14:11
Continued the public hearing to today as a date. 02:14:13
We ultimately. 02:14:17
Decided. 02:14:19
Recommend that the council still hold the public hearing and actually give tradecraft an opportunity to explain their proposal. 02:14:21
And then from there we sort of depending. 02:14:30
That explanation. 02:14:34
We were planning to recommend that either the Council, if the Council is comfortable enough to finish the review of that 02:14:36
development agreement, that would be one path or it might be. 02:14:42
After receiving that, if there's more questions sending, you know, kind of giving us an idea of those questions and then we might 02:14:49
need to go back and work with tradecraft. 02:14:53
But our recommendation is essentially to open up the public hearing and receive the proposal from From Tradecraft at this time. 02:14:57
Anything. 02:15:07
No that that sounds like the correct path. 02:15:10
Does Council have any questions for staff? 02:15:14
OK, I'm going to go ahead and open the public hearing. The time is now 8:44 PM. 02:15:18
Are there any public comments regarding this item? 02:15:24
Where is tradecraft going to come up? 02:15:28
And I think could. 02:15:33
Would tradecraft be willing to speak? And then I don't know. Do we have any public comments? Otherwise we don't have other public 02:15:35
comments. 02:15:37
So Tradecraft would like to speak and just sort of explain their proposal. 02:15:41
A carbon copy of what we provided Tony with Tony and the city manager with on Friday, just in case you want. 02:16:12
I believe that's what you just said, Paula, right, that this is the document that you sent to us on Friday. 02:16:24
That they basically already have documents sent Friday we posted on Friday at about 2:30 PM, so we we made that available to the 02:16:30
public. 02:16:35
I'm not. I'm not going to lie. I was feeling a little uncomfortable about the group. 02:16:46
That was advocating for non no smoking. 02:16:50
So I'm kind of glad they're gone. 02:16:53
Anyone proceed? 02:16:59
Yeah, I think we'll let you take it. Paula's. Paula's put a lot of time into this. I have to be honest, I haven't had any time at 02:17:01
all. James and Paula have. 02:17:05
Yeah, mostly. Probably put a lot of work into. 02:17:11
You're wearing good hands because Paula knows what she's talking about. And I I was, I did notice. 02:17:16
I had not received. 02:17:23
Reached out, there was a survey or something. Nobody could talk to me or call me and all I had been asked about that, but we 02:17:26
weren't. 02:17:30
Didn't get advantage to take advantage of that and and talk to you about that and I would have liked to. 02:17:34
But I know that regarding this, Paula's put a lot of work in it. So then real quick and can you make sure that you speak into the 02:17:40
mic so that it's recorded on on the video? 02:17:45
So did any do you have any questions for us regarding this? I don't know if you've already had a chance to review it. 02:17:52
I I don't think anybody. So I've reviewed it, but I don't know that the council has because we had given them the full agenda and 02:18:00
then this came as an appendix. So I'd suggest just sort of like giving the highlights of you know, what's being proposed versus 02:18:05
what we originally were. 02:18:10
Discussing. 02:18:16
To kind of continue the conversation from the last meeting, we discussed a lot of factors, industry factors, market conditions 02:18:19
that were really hard on our business, which are outlined in this presentation or proposal you just received. 02:18:26
And because of those factors. 02:18:33
It seems that we can really only sustain. 02:18:37
Doing what we identify as phase one of the build out which. 02:18:41
Building out all of our distribution areas. 02:18:46
An additional mature flower room and a bedroom. 02:18:50
And if I can comment real quick and and. 02:18:53
And I only I'm picking up and I don't want to jump out here. 02:18:55
I feel like someone feels like maybe we like, switched what we were proposing to do, and that's not the case at all. I actually 02:18:59
stood up here a month ago in October and said that we and I don't know if it's a way that you're wording it. 02:19:06