Ventura City Council Meeting
March 14, 2011
Ventura City Hall - 501 Poli Street
Focus on the WAV Market Rate Condos – the WAV is a transitional living facility for low income residents along with some commercial area. All of the affordable housing and transitional living is finished and financed. The Market Rate Condos, originally scheduled to be sold at prices $800,000 and above, had been thought to generate enough income to spin off into the affordable housing sector, but that [housing bubble] pricing is no longer realistic. As a result, there is the necessity to reenter negotiations to work out details for the additional funding. There's a city impact fee loan (General Fund) of $270,693, fees the city owes which will be repaid when the condos are sold. The score so far – rentals 15, sales 0.
There is a city condo impact loan at 5% interest through 3/2012, of $2 million. These fund breakouts are from the city’s Redevelopment Agency Fund ($1 million) and the rest is at-risk money ($1 million) taken from the Public Arts Fund. The JS Company contributions would be at $1,595,739 with the total inflow for the WAV project standing at $8,468,059.
Mayor Fulton brought the meeting to order, noting that two members would not be present – Council Members Andrews and Monahan. He then asked that the visitors and guests stand and recite the Pledge of Allegiance.
Special Presentations and Announcements – Kathy Hartley presented Council with a plaque from Interface 211, for its recognition of the need for extraordinary social services in the case of disaster relief. A second member of the organization thanked the mayor and the community.
Council Communications – Council Member Morehouse, as League of California Cities Regional President. apologized for being absent at the Wednesday meeting, expressing regrets also that he was unable to participate in the St. Patrick's Day parade. The mayor mentioned that this Saturday, March 19th at the center court in the Pacific View Mall, the Friends of the Library will conduct a book sale from 11 a.m. to 5 p.m.
Council Member Weir noted that the Ventura film Society meets on every other Tuesday night at 7:00 in the downtown museum’s auditorium. This week’s meeting will feature the debut of a new film production. The El Patio Hotel on Palm St. is in renovation with an open house being conducted on April 26. It will become a one-room-unit housing facility for the indigent and the elderly. A light offering of food will be served.
Council Member Brennan spoke expressing his condolences to all those affected by the disaster in Japan. A disaster preparedness training program is beginning in Ventura which will be open to the public and will begin with instruction in sheltering in place. The program goes on for six weeks, funded by Homeland Security, on Wednesdays at police and fire headquarters beginning at seven o'clock and continuing for approximately 2 ½ hours. Contact Anne Simmons at City Hall. The Councilman thanked everyone for their help and participation in the St. Patrick's Day parade. Hermosa Beach did not put on their parade this year due to lack of funds, and the councilman noted Ventura’s comparative financial position by not aborting its long-standing parade tradition.
The mayor thanked all those who attended the meeting at the Bell Arts Factory where 45 individuals showed up to discuss public transit. The possibility of restoring lost bus routes was discussed.
Regional Boards Commissions and Committees – Council Member Morehouse, Ventura’s representative on SCAG, the Southern California Association of Governments, announced that he is seeking re-election to his present post as President. At the most recent meeting the Regional Housing Needs Assessment issue went forward, which is a project that continues to hold a little confusion, according to the councilman, noting funding in particular.
The redevelopment issue also continued to hold center stage – alternative proposals have been put forward to counter the governor’s movement to de-fund and disband redevelopment agencies statewide. The senate pro tem and the speaker of the assembly received letters from city officials throughout the region saying that redevelopment agencies should be retained. The total maximum daily load in water distribution – with the Water Quality Control Board in attendance – centered attention on discussions where solid matter ends up in the watersheds. These included such items as plastic bags, while raising again the issue of possible bans on the product.
Community Development Director's Report – Sid White and Bruce Stenzley, Executive Director of the Economic Development Collaborative of Ventura County, spoke on the Ventura County Business Marketing program. Sid began by introducing Karen Blum along with Heidi Hayes, representing "The Agency" who traded off as presenters. Sid began the presentation, noting that the project was launched in April 2010 for the benefit of the economic development community, a group of business people which has reorganized and whose job it has been to provide services to business leaders.
Sid, as Chairman of the Economic Development Roundtable of Advisors composed of a group of economic development professionals, advises the Economic Development Collaborative and discusses ways to move forward on various activities. The Workforce Investment Board is a grantor as part of the ARRA (American Reinvestment Act) program for some of these activities. About $320,000 was recently used in a marketing effort to promote business in Ventura County. A progress report will be presented on how that money was spent.Bruce Stenzley, as President of the Economic Development Collaborative, spoke, noting that a blend of strategies is required in order to attract business. The Ventura County Grows Business campaign is the title of one of their programs. Access to capital and professional consulting is their forte.
With the loss of jobs recently, the collaborative has taken on an assets-based strategy, discussing the quality of life, skilled workforce and other community issues. Their focus was to be as complementary as possible to the needs of the city for its existing efforts. They do not care to see Ventura County as simply being “paved over,” as it was stated. They claimed to be not focusing on the retail world necessarily. Good business attraction is the same as good business retention, the speaker said.
Background, showing: (1) Special project launched April 2010 – (2) Use of ARRA funds to invest in Ventura County’s economic future – (3) Engagement and collaboration of cities, county, and businesses – (4) Regional strategy for business expansion and layoff aversion – (5) Regional identity and outreach plan to support business expansion and retention
Private and Public Sector Input, showing: (1) “Insiders” Ventura County – (1.1) Business leaders – (1.2) Civic leaders – (1.3) Economic development professionals – (2) “Outsiders,” (Los Angeles-area) – 2.1 Business leaders – 2.2 Site selection decision makers – (3) Other sources – (3.1) Research: economic, demographic, public policy – (3.2) Best practices: state, national (4) Translate an informed viewpoint into effective messaging
The speaker said they looked at various regions (the “insiders” vis-à-vis the “outsiders”) in seeking private and public sector input. The marketing group compared responses from each to a set of questions. The insiders knew of the marketing firm’s goals: the outsiders didn’t. When business outsiders were questioned about quality of life as a business issue, most replied that they would rather stick to the economics. When asked about Ventura County, however, many comments were complimentary.
Result: Asset-Based Regional Strategy, showing: (1) Highly Competitive Strengths – (1.1) Access to markets – (1.2) Diverse economic base – (1.3) Skilled and unskilled workforce – (1.4) Best value, cost competitive real estate – (1.5) Regional infrastructure – (1.6) Financial stability – (1.7) Great quality of life – (2) Positive Perceptions – (2.1) “Business friendly” – (2.2) “Up and Coming”
Result: Strategic Messaging, showing: Grow Your Business, Live Your Life – (1) Presents a “value-based” proposition – (2) Highlights dual advantages of Ventura County – (3) Transforms lifestyle benefits into a business “park” – (4) Supports the individuality of the ten cities – (5) Combines city strengths for a stronger regional identity – (6) Remains true to the essence of “Who We Are)
Sustainability, showing – (1) Private and public sector interest in regional competitive advantage – (2) Strategies for collaborative action – (3) Cooperative partnerships and investments – (4) Grow your business as a flexible platform for regional positioning – Endorsements, showing: (1) Economic Development Collaborative Ventura County – (2) Economic Development Roundtable – (3) Ventura Federated Chambers of Commerce – (5) Workforce Investment Board of Ventura County
Showing: Offering everything businesses need and everything employees want -- The new perk: Quality of Life
Showing a brochure that went out to over 2000 businesses – Grow Your Business – Ventura County – Live Your Life
Showing: Inside brochure – Thousand Oaks in Ventura – they were looking for growth indicators in the focus group. They then showed a webpage and a Facebook page promoting business in Ventura County. The speaker thought that this would be come a retention tool.
Media Summary – 6.5 million impressions with each impression meaning a single connection with your audience. The graphic conveyed information to include target audiences, geographic targets and paid media over the timespan (Fall 2010) to (Spring 2011) which included impressions from Los Angeles and Santa Barbara Counties. It showed “spring 2011 retention” where there will be 1.6 million gross impressions.
The question session was begun as Mr. Stenzley asked for input from council members.
Council Member Morehouse asked if the collaboration members were aware of the need for executive housing in Ventura, which, as it happens, ranks rather high in the council’s level of interest. The speaker said that it wasn’t an issue that the group probed, and it didn’t come up voluntarily. Access to markets was more important than executive housing, according to the data collected.
[Comment] Sorry Charlie. It would seem that some business professionals aren’t looking for issues of good taste. They’re apparently looking for business issues that taste good. [Ed.]
Council Member Weir spoke, questioning some of the media presentation methods that are being presented. The Councilwoman wondered what the brochures were intended to accomplish, with the speaker replying that most would be used as mass mailing material. There'll be contact information specific to each city on the back of the brochures. The collaborative does not handle calls individually but tries to help guide respondents through the process as best they can via alternate means of communication.
Deputy Mayor Tracy noted that the same presentation was made at the Chamber of Commerce. Mr. Tracy picked up on Council Member Morehouse’s executive housing issue by saying that with the “hook tossed out” he’d “take the bait,” seemingly trying to work that into their (the collaborative's) agenda. The E-D-Collaborative responded that the emphasis was on issues, e.g.,skilled work force, reasonable cost of living, and that indeed some CEOs may have thought it desirable to live near their business ventures, but the specifics were never close enough to determining whether executive housing would be a swing issue.
[Comment] Of course not. The city council is way off base and involved in a game of speculation over the issue of so-called executive housing as a major attractor and a prerequisite for the establishment of high-wage jobs, presumably as a necessary kick-start toward rejuvenating the local economy. But this time it’s not just the little guys telling them to climb down from their ivory tower and remain focused on the “E’s” – the economics – of the situation. . .now they have experts weighing in. The council has forgotten one important fact: it has absolutely no control over the way rich people may or may not decide to dispose of their wealth. Council might think otherwise. Council might dream otherwise. But to believe otherwise is to place Council in the company of moonbeam chasers. [Ed.]
The mayor thanked the collaborative members for their presentation.
CONSENT ITEMS – the mayor suggested that Agenda Item No. 4 be pulled, asking if any other items should be pulled. There were no public speakers and no discussion so the mayor entertained a motion to approve Agenda Item Nos. 1, 2 and 3. With a second having been obtained, the mayor asked the city clerk to take the roll. All members voted yes, thus closing the Consent Calendar. The remaining Agenda Item Nos. 4, 5 and 6 – Extension of Construction Loans for the Market Rate Condominiums, Appeal of a Decision by the Planning Commission Approving the Revocation an Alcoholic Beverage Permit and an Economic Prosperity Strategy Update – can be reviewed by following the links provided.
Agenda Item No. 4 [Back] – A brief presentation ensued with Sid White, Economic Development Manager, along with Jack Gardner, CEO of Jon Stewart Company (JSCo) along with Mark Slutskin, the Project Manager of the WAV Project.
Sources of Funding, showing: – WAV Market Rate Condos – (1) Chase/Citibank loan $4,691,636 – (2) City impact fee loan condo program portion $270,693 – (3) City Condo Loan $2 million – (4) JSCo Contributions $1,505,730§ – Total $8,468,059 – JSCo Letter of Credit $2 million§§
§The JSCo contributions are through 11/11/2010. JSCo continues to pay ongoing condominium related expenses for the mortgage, common items, insurance and taxes. JSCo has also contributed $144,270 for the WAV apartments. – §§JSCo has currently posted a $1,500,000 Letter of Credit (LOC) with Chase, but Chase is requiring it to be increased to $3 million as a condition of extending their new loan. That LOC is currently secured with a $500,000 deposit but the $2 million LOC will need to be secured by $1 million in held deposits.
It was mentioned that the WAV is a transitional living facility for low income residents along with some commercial area. All of the affordable housing and transitional living is finished and financed. The speaker said they are out of the woods and that the city has no liability.
The market rate condos originally scheduled to be sold at prices $800,000 and above had been thought to generate enough income to spin off into the affordable housing sector, but that [housing bubble] pricing is no longer realistic. As a result, there is the necessity to reenter negotiations to work out details for the additional funding. There's a city impact fee loan (General Fund) of $270,693, fees the city owes which will be repaid when the condos are sold. There is a city condo impact loan at 5% interest through 3/2012, of $2 million. These fund breakouts are from the city’s Redevelopment Agency Fund ($1 million) and the rest is at-risk money ($1 million) taken from the Public Arts Fund. The JS Company contributions would be at $1,595,739 with the total inflow for the WAV project standing at $8,468,059. The JSCo letter of credit of $2 million remains a renegotiated issue, with an extension of all of these loans to five years out. Jon Stewart Company needed to put up more cash increasing their million and a half dollar line of credit up to the $2 million limit, but with JSCo being asked by its stakeholders (Chase, et.al.) for still more.
Proposed Revision to City $270,693 Deferred Impact Fee Loan, WAV Market Rate Condos, showing: (Due Date:) 180 days beyond the extended term of the J.P. Morgan Chase construction loan. Assuming Chase provides a short term (180-day) extension of its current due date of 12/1/2010, and then a longer-term (five-year) extension of the extended due date, its loan would be due 6/1/2016. The city loan would then be due 12/1/2016. (Rate:) Fixed at 3 percent simple interest – no change. (Repayment Terms:) Full repayment on the extended due date – no other change
Proposed Revision to City $2,000,000 Construction Loan, WAV Market Rate Condos, showing: (Due Date:) 180 days beyond the extended term of the J.P. Morgan Chase construction loan. Assuming Chase provides a short term (180-day) extension of its current due date of 12/1/2010, and then a longer-term (five-year) extension of the extended due date, its loan would be due 6/1/2016. The city loan would then be due 12/1/2016. (Rate:) Fixed at current yield rate of 3%. (Repayment Terms:) Two-thirds (2/3) of WAV condominium net sales proceeds.
Proposed Revision to City $2,000,000 Construction Loan, WAV Market Rate Condos (more) showing: Net Sales Proceeds: consist of all sales proceeds following (1) repayment of the Chase construction loan, including interest, (2) sales commissions, (3) sales expenses, (4) finishes and upgrades to condos prior to sale, (5) funding of the DRE-required replacement reserves (for a proved CC-R’s) and (§) repayment of the cities impact fee loan, including interest. (§ Except, if a pending deal to sell five condominiums is completed, then the city’s share would increase to three-quarters (¾) of WAV condominium net sales proceeds.)
Scenarios, showing: Condos Rented for 5 Years – (1) Best case: Agency/City receives full loan repayment with interest – (2) Worst-Case: Bank forecloses its loan and agency/city will loans are wiped out – (3) Alternative: Agency/City refuses to extend loans and attempts to negotiate better terms.
Staff has extended enthusiastic support to move this thing forward by asking Council to approve the extension of the loans, according to the speaker
The mayor summarized by saying that they are being asked to push out the repayment for five years, but without guarantees due to the fact that they are subordinated to Chase’s claim on the debt. JSCo spoke in response to the mayor, saying that as codeveloper of the WAV project they have tried hard even as the economy has slumped. Mr. Stewart noted that they have remained true to all of their obligations to this point. They wish to buy some time until the market rebounds, where prices may come back to the point where the city can be fully repaid and where the Jon Stewart Company could get some partial reimbursement of the funds they have invested to date.
The mayor wished to know who owns the Market Rate Condos – answer: It’s a limited liability company composed of 50% JSCo and 50% Place, according to JSCo’s CEO, where Place is a non-profit partner coming in as a low income tax credit investor. But who owns the unsold market rate condos was still the question, with the answer being 50% the nonprofit and 50% Jon Stewart Corporation.
Deputy Mayor Tracy asked to back up on the slides to the earlier graphic showing proposed revision to the city’s $2 million construction loan issued by the city to the developer for the WAV Market Rate Condos in a 50% partnership between JSCo and the nonprofit entity. Assuming that J.P. Morgan Chase provides the extension for 180 days and then assuming that a five-year extension of the due date would be due June 1, 2016, the city’s would be due 180 days beyond that. Deputy Mayor Tracy said that if we sell those condos at the values being shown the city would not lose money, but that at lower levels the city could suffer losses.
The negotiations with the city were between Chase bank Citibank and the JS Corp – also the banks held the first call date with the city being in last place. The two banks, according to Sid, could have taken this project and put it into their “Troubled Assets” column, ending it there, but instead came forward and granted extensions. Deputy Mayor said that the city didn't necessarily have an expert in the banking process to oversee this, and speaker agreed.
This item was asked to be taken off the consent calendar by Councilman Morehouse and the deputy mayor not because something was wrong with it but because this is an issue that a lot of people in the community would like to know about. The Admin Reports have all had very positive things to say about the WAV project but there needs to be more discussion over what has happened here, according to Mr. Tracy.
The pro forma part of the proposal indicates that the city and the investors will get their money back, but with some assumptions. Sid responded saying that the assumptions were put together by all parties including the bankers, and they were not done in a vacuum going to the speaker.
[Comment] Some assumptions. . .like the idea that real estate prices will always move steadily but surely in an upward direction, maybe? Would this be one of those assumptions “not done in a vacuum?” Perhaps based on what we’ve learned over the past several decades about private profits extracted via public risk, taxpayers should be asking whether or not the “vacuum” could have performed just as well. [Ed.]
The deputy mayor said that the 7.16 million would be the market value which would be obtained at full buyout at today’s market of $550,000 per unit. It was also noted that no units have been sold to date, though a “couple of offers” have been received. The Deputy Mayor wished to know if all the condo units were comparable in size and valuation. Pro forma for taxes was shown at 59,000 per year, but if taking the entire amount there would be 450,000 in taxes. The speaker said it cost of the land may not be fully shown, but at $550,000 per unit it's a good starting point.
The deputy mayor said that we are projecting 4% per year for the next five years and wondered how we were arriving at that number. The deputy mayor said that based upon reporting he’s seen, we could easily suffer another economic hit to the economy. Although sales have begun to move forward but with most of those representing foreclosures, he wished to know whether the document could be relied upon for making decisions based on the speculative nature of the real estate market, which should raise questions as to how we arrived at our figures.
John Stewart said there was an amount of “crystal ball gazing” when guessing at sale prices going out 5 years. The speaker said they are bullish on the WAV units, that they are “lovely” with lots of amenities. Part of what prevented them from being sold, according to the speaker, was the uncertainty in the market overall and in the uncertainty of obtaining mortgage financing. But what makes these marketable in five years is the resurgence of the market. “You aren’t a developer without maintaining some level of optimism,” he said, adding that “The for-sale market in Ventura is likely to come back in more aggressive fashion than in surrounding areas.” He noted that there is limited development going on for condominiums.
The developers are not intending to get their money back on this project, according to Mr. Stewart, noting that the developers signed up for it and are going to have to face it. They're getting a third of whatever the city gets and then, according to Deputy Mayor Tracy, that could be zero. The deputy mayor wondered if it was a pipe dream to think that they are interested parties still in existence. Staff then interjected that when real estate people looked at these numbers along with the banks, they all decided to stay rather than to cut and run.
The deputy mayor said that we are probably not going to have much choice but to renegotiate the terms. The deputy mayor said that there were errors made about the entire concept of the project. The administrative report says that we were publishing some goals which may now look to be rather unrealistic. Reading from the report Mr. Tracy said “one of the most important economic catalysts for business in a decade exists at the WAV in Ventura,” – that the WAV represents a “national landmark” bringing the “arts together along with social justice.” Many of these terms seemed a bit ethereal to Mr. Tracy.
In all the glossy publications, Staff said, one saw all of the attractions described in the Admin Report, including the large number of artists in town producing “art” and by having it known as “California's new art city. Sid insisted that you have to “walk the walk.” Mr. Tracy said that we need to be careful when making investments using “Art Fund money” and that we need to make sure we separate the ideas from the dreams. He felt that it would be easy to be dismayed over the language and that now that we stand to lose in the investment, we more easily see the separation between good and bad decision-making.
Staff replied that we moved from “the back of the envelope” to a point where the economy went south. The deputy mayor said that he didn't think a lot people were going to buy $800,000 condos in that location in the city.
[Comment] And the deputy mayor’s final remark is probably the closest thing to “dead-on” as has ever been delivered from this dais. That location (location, location, location) for a renowned “Art City” would, without a shadow of a doubt cause some breathless artist, driving his overloaded 1948 Ford pickup in from the hinterlands, to take one look and immediately begin beating his wife. [Ed.]
The mayor spoke trying to clarify the financial assumptions of the pro forma – assuming that these units could be sold for $550,000 making the assumption that if the value went up at 4% for five years, the value would increase to $720,000 again over five years. Renting them out, on the other hand, for five years you can just about break them out as even. But if they don’t increase the city would get $1 million worth of its $2 million back while developers would make $500,000, according to the mayor.
[Comment] Correcto-mundo, and there goes our $1 million Art Fund money (or, if you prefer, the last we’re ever to see of redevelopment resources for things like a Westside pool). Every voter should see, read, and remember this as we head to the polling places now just a short way off. [Ed.]
Council Member Weir asked whether there was a possibility the city taking ownership of a couple of these units as showpieces. Staff said that it was a possibility where these units might be taken off the market for that purpose. 12 or 13 of the units are rented currently, according to Sid. So with sales having been frozen for the next five years, was the councilwoman’s point, then if someone wanted to purchase within the next five years they wouldn’t be able to. Staff said that “we are successfully renting these units currently, but in response to Ms. Weir’s pressing of the point, it turned out that if a “special client” such as the Brooks Institute, having expressed interest in buying one or two units, or where there might be the opportunity for some “local” individual who wanted to “take advantage of the down market,” then perhaps sales of “a couple of units” which are currently “off the market” could be arranged. This was framed as a question by the councilwoman, and Staff responded affirmatively.
Council Member Weir said that the city would be paid back for its Art Fund “investment” and its General Fund money, following along with the redevelopment agency money that has already been invested. Staff said that first to be paid would be the General, then the Art Fund and lastly the RDA. The mayor said that the RDA does not own anything except the $1 million loan
Council Member Morehouse restated the fact that if things go south in terms of current positioning that the city may be last on the list. Staff said that the General comes ahead of everything but, but then corrected himself saying that the banks are always first, then the city for 270k, then what is left goes 2/3 to the city, 1/3 to the developers.
The mayor asked if anyone was willing to make a motion. Council Member Brennan moved that Staff’s recommendations be approved with Council Member Morehouse seconding, but with reservations. The roll was called with all members voting yes. The mayor thanked the gentlemen for coming down tonight.
[Comment] But for Mike Tracy and Carl Morehouse, this issue might have been quietly “dumped” along with the other items on the Consent Calendar. Though we don’t find this a particularly bold move in terms of the way we’ve become accustomed to seeing government operate, we do wish to thank these two, much to the chagrin we’re sure of the mayor, Ms. Weir and Mr. Brennan. We find it interesting also that two council persons could not be present for this vote. Indeed it is true that developers sometimes “eat it,” but they wouldn’t be sniffing around city halls in the first place if it weren’t for the delicious aroma of cash lying around in places like Public Art funds. And the people we elect to public office are basically the facilitators as well – two of whom have stepped forward and quietly raised a hand. It was a good effort, but we as voters cannot now relax. [Ed.]
Agenda Item No. 5 [Back] – A quasi-public hearing for the deemed approved permit for Circle K. This is different than some procedures that we follow, said the mayor, asking the city attorney to review the rules of play. On October 18, 2010 Council adopted resolution 2010 – 038 a resolution for supplemental rules involving the retail alcohol trade. Under this resolution Council administers an oath to show that this is serious. The evidentiary standard will be in place wherein responsible persons are expected show conduct in keeping with serious affairs. A preponderance of the evidence is the evidentiary standard. Ex-party contacts are forbidden. Discussions with members of the public or appellants or applicants are such that if any council member has had such conversations they must disqualify themselves. If anyone wishes to ask the council to question directly the mayor may intercede. 2010 – zero 38.
Council Member Morehouse recalled that a public speaking individuals once needed to be sworn in. He wanted to know whether this was protocol. If they wish to testify they must be sworn in, according to the city attorney. If unwilling to promise to tell the truth the council should disregard that testimony.
The city clerk verified that the appeal had been prepared in accordance with all affidavits for posting and that they are on file. The mayor asked the council members and the deputy mayor in absentia to declare any ex-party communications.
To all who had submitted green cards it was recommended that they stand and take the oath also. Several stood to affirm as the oath was administered.
Representative of the cons will have 10 minutes, as stated by the mayor, which they may be split in any they might choose. Public speaking would follow.
Mr. Veats of the staff along with the case detective presented a case asking to sustain the revocation of the deemed approved status for the retail establishment located at 3506 East Main Street, Ventura, Applicant/Appellant, Circle K. Going back to 2006 under the ordinance they have deemed approved status, but the city with an officer present sought the revocation of the deemed approved. Three separate instances of employee sales of alcohol to minors with the issue. The first occurred on March 11, 2005, the next July 6, 2007, and finally May 6, 2010. Officer Donswick conducted a decoy operation in which he sent a minor-aged person to attempt to purchase alcohol. On May 6, 2010 the operation was successful.
It was claimed by the city that an extensive level of police activity is ongoing on at this particular location. In a prior record year, 48 calls including 19 thefts of beer and other disturbances involving intoxicated persons have required police intervention. Officer Donswick sent notices to the owners of the establishment, stating that they would be the subject of revocation of their license. In August of 2010 the appellant’s attorney became involved. There was a sense that some amount of compliance was in the offing. In subsequent communications however the appellant was no longer agreeable to all terms.
The planning commission got involved on August 31, 2010. Being of the opinion that a deal could be worked out, the appellant wouldn't agree to the no-single sales of beer or malt liquor provision. The planning commission convened then noting to revoke the permit. Circle K appealed but still was not agreeable to changing the no-single sales agreement.
Officer Donswick, the former alcohol enforcement officer, conducted many decoy operations along with inspections of alcohol establishments and approved the entertainment permits. He was on assignment for 3 ½ years.
The officer was asked about the decoy operations. State regulations through Alcohol Beverage Control, the minor decoy must be under the age of 20. The person must carry a valid ID and will answer any questions about age. On July 6, 2007 a minor decoy aged 19 years entered the Circle K. One Mr. Rowland was arrested and a month later pled guilty to the offense. On May 6, 2010 another minor decoy event occurred, aged 18, Matthew Dole at Circle K sold alcohol to the minor decoy. A month later Mr. Dole was convicted of the offense.
The officer was asked about the level of activity for calls involving police. The officer was asked if the business had been notified of their complaint. The officer was asked about other ABC requirements – visual surveillance – locks on cooler doors – no single sales were among the issues. No singles meant no single sales of beer like a single can of beer.
Locking devices on the cases and the digital surveillance were both questioned by the officer. A 2:00 a.m. rule for block cases was cited. Training is also required for store personnel. Circle K had originally agreed to all requirements, including the training. When asked what happened the officer said Circle K had reversed their position. Circle K would not agree to the no-single sale in the end.
In light of the officer’s testimony, discovery claimed that the store has had three instances of selling alcohol to minors The officer sees similar situations in other retail stores in Ventura. The officer has tried diligently with this particular appellant. City Council is being asked to uphold the administration requirement and revoke the Circle K's license. Uphold the finding of the planning commission and revoke this permit was the recommendation.
Circle K appellants' put in three cards and were given 10 minutes to make their case.
Mr. Bruce Evans spoke for Circle K. The appellant said he was sorry that the clerks violated their training, and that they did sell to a minor decoy. It was his desire to ask the council work with them in indulging the appellant to some degree. The speaker said that “we didn't get a fair shake.” The speaker said that the city never engaged with them or gave them an opportunity to work it all out. The officer took vacation the first week in August. They called and talked after vacation. The appellant confirmed the conversation via e-mail. Involvement went through Bryan Randall in the Planning Department. Circle K could agree to conditions over the phone but it didn't seem feasible, the appellate said. On August 11 a follow-up e-mail was sent but there was no response from the city. The appellant offered to discuss a set of conditions at all four stores. Mr. Randall said they were going forward with the resident revocation hearing .
Mr. Randall responded to the appellant's appeal on August 17 saying that the conditions that had been worked out with the officer. The appellant said that there was never an agreement. He said that there is some notion that Circle K has refused an agreement with the police and the appellant claimed that this would be untrue.
Mr. Veats and Officer Donswick did not move away from the motion towards replication, and the appellant said that all the negotiations went downhill from there. If the staff misrepresents the factual background, according to the appellant, there is little else the appellant can do. The staff told the commission, according to the speaker, that factual circumstances were not transmitted.
The speaker thought that the city has no authority to revoke this permit. Just apply for the CUP and there will be no hearing they were told. The city attorney allowed a little bit of extra time. Circle K agreed to – set of conditions at all four stores: no single sales, to lock the cooler doors, not to sell Moulson’s in Ventura, pay a private firm to train employees. The appellant said that the company provides its own undercover shoppers. It was not believed that the city had the authority or the jurisdiction to revoke this permit.
The police data for 2010 indicated that there were only five panhandling calls and five disorderlies. The issue centered on the Moulson’s then basically. Mr. Scott Secky, Operations Manager for the Circle K stores, spoke saying that they agreed to all of these conditions in all four stores, noting that they no longer sell singles, that they lock the cooler doors, they no longer sell malt liquor, and that they have certified the in-house training department by the ABC. Age verification scanners have been installed in all stores. State-of-the-art digital has also been installed. A private third party shopping service shops stores once monthly for alcohol and tobacco. The speaker said that anyone appearing to be under the age of 30 has to show ID.
Council Member Brennan spoke asking why they were averse to moving off the single sales. What other types of brewery products do they sell, was questioned. Several high lines in addition to beer packages of 24 ounces are sold. King Cobra has been removed as a domestic single, but that a single in larger sizes under 24 ounces would still be considered single.
Mr. Morehouse asked when the appellant first knew of the revocation. On July 21 is when the appellant began to look through the city ordinances. The councilman wanted to know what percentage of sales was being talked about – 18 and 20% of their business, but the level of singles over the malt liquor he couldn't break that down percentage wise.
The mayor questioned – with Circle K agreeing not to sell anything 16 ounce or less, larger items in singles are not considered off the list, according to the speaker. Correspondence was reviewed at the podium including the training and the collection of receipts all supporting documentation. Modification can still be enforced, said the speaker meaning “modify to prohibit single sales.: Modifying all for permits would be consistent with Circle K's proposal but inconsistent with staff's proposal.
Public communications the public speaker. To have left
Rebuttal time was granted for Mr. Evans. In his five-minute rebuttal time he claimed that case should be limited to sales to minors, but the appellant didn't think that the additional reach into items including training and the rest should be.
A sympathetic speaker and a former store manager for Arco – now in the employ of Circle K – claimed to have turned an inebriated customer away several times. Apparently a store manager at one of the stores, the speaker said that “his employees are strict.”
Mr. Evans was asked by Council Member Morehouse whether or not no-single sales of 16 ounces or less was the issue, and if so there didn't appear to be any sticking point. A blanket ban on single containers was certainly one of the sticking points. There are singles of Foster's and Guinness that he would no longer be able to sell as larger singles.
Sales of 18 to 16% of total sales would appear significant, according to the councilman. Other forms of shrinkage was noted without being definitive. The erosion of sales has already occurred on some very high profit, high turnaround items of singles.
Deputy Mayor Tracy said that the conditions put forth by the planning department were felt to be reasonable and yet modifications to deemed approved, as raised by the deputy mayor, were probably not enforceable.
Mr. Veats wished to know why it was important to include a ban on the over 16 ounce singles. The officer said that the 24 – 36 ounces are the preferred sizes for transients and the homeless which he also characterized as the majority of those who drink in public.
[Comment] Objection! Does the officer not think that Mr. Average Joe who stops for a six-pack on the way home from work won’t have popped a can open before he’s even a block away from the store? And he’s driving! The worst that your average homeless guy will be doing is riding a bicycle! It would be nice to think that law enforcers (and law makers, for that matter) are intelligent enough to understand that to make assumptions over the future use of a product (purchased legally) or the behavior of an individual based on their physical appearance (fully clothed) by a store clerk, a police officer or a city council member, for that matter, is discriminatory and probably a violation ones civil rights. [Ed.]
In response to Mr. Evans saying that the planning commission did not negotiate in good faith – the city attorney interjected that an amendment of the deemed approved status involving the other three stores the planning commission could have been devised by the city attorney where the city would be advised that public outreach would be necessary in front of those other stores.
The city attorney referred to the 1 inch stack of materials, saying that it should probably be reviewed by both he the city attorney and the Police Department. The city attorney recommended that a postponement until a date certain be approved so that the stack of material can be evaluated more fully.
The mayor asked if postponement until a date certain was recommended – the city attorney agreed.
Council Member Weir asked for a definition of the difference between the CUP and the deemed approved ordinance.
The city attorney said that due to separation in order to provide due process, Mr. Veats has been advising the police as the prosecutor as it were. The ordinance in 2005 covering deemed approved permits, subject to conditions, also means operating within the bounds of he ABC law. We have something new called CUPS, Conditional Use Permits. These are subject to a broader range of conditions, such as locking the cases, prohibiting singles sales of smaller sizes – the ordinance already for bids sales of 40, 40 ounces, The reason for this would be to get beyond deemed approved to obtain a broader range of restrictions.
Council Member Weir was ready to move for a date certain as the mayor asked for April 11, 2011. It was moved to reserve the date certain April 11, along with second.
Council Member Morehouse wished to ask the city attorney to respond to the allegation that the city did not respond to the notification in that timely a fashion. The city attorney did not think that there was enough testimony given to definitively assess the slow response or the non-response time. Along with the full package that submitted, it may be that pertinent information would surface.
Council Member Morehouse thought that the deemed approved was basically inherent in the CUP to begin with.
The city attorney responded but with a further question from Council Member Brennan. Council will have closed the hearing before a second reading might ever be necessary.
The public hearing was closed by the mayor. Deputy Mayor Tracy spoke asking if such a thing as a supplemental assembled amendment might occur. It was asked that the roll be taken – all members voted yes.
With one public speaker remaining before a short recess, Cy, the speaker, noted that Victoria at the 126 on-ramp is a danger to bicyclists, and as an avid bicyclist he had been hit by a car and rendered unconscious. In the end he found that he was liable and that it was his fault. He protested, and found that he had no protection from the law regarding the matter. Since his wheel hit the back of a car he obviously wasn't watching where he was going. In protest to the Highway Patrol, he found that although the sidewalks is a bikepath, the road does not have a bikepath symbol and it isn't a bikepath. The speaker said he was told that pedestrian lane crossing markings were not a requirement, only a courtesy. The speaker claimed that he has no laws to protect him. He located a law out of New York City, with the speaker desiring to submit the text of the New York Law to the council. It said every driver shall provide every effort and due caution to prevent contact with bicyclists or animals. There were other issues and the speaker wished to submit the information collected as a model.
A recess was called but the council was to be convening in the community meeting room.
Agenda Item No. 6 [Back] – Economic Prosperity Strategy Update – City Manager Cole introduced the session by saying “why we are here,” and that we two years ago decided to fully fund economic development. It was clear from the city council that results were expected and not for the “feel-good symbolism” of it. High-value, high wage jobs needed to see traction. The reason for the meeting was to deliver a midcourse update into how that is going. The council's feedback and interaction is needed. We are doing things that no one else in California is doing making us either clueless outliers or visionaries. Since 1978 California city governments has relied on sales tax receipts for economic development. Thousand Oaks pursued a high-end sales tax strategy due to the demographic. Camarillo is a genuine success story while Oxnard is perceived to be a greater success than reality would indicate.
The new strategy is to focus those in the committee with a partnership that would give us high wage high profile jobs, moving it away from a retirement/tag town to one that would move the city into a higher echelon of achievement. This is to let the public know what the city is doing with its money and economic development. Prosperity Council comes out of our strategy from two years ago. We want to inform the public as to what we are doing.
The mayor welcomed Jim Burkhardt, Kathleen Erikson and Economic Development Director Jeff Lambert. Jeff spoke saying that the presentation would be one that focus on the partners, including those present, because the city cannot do this alone. The high wage high-value jobs strategy was to be the highlight. The countywide strategy to obtain new business was mentioned.
General Business Development, showing: (1) Business assistance programs (1.1) Small business workshops – EDC VC/SB DC – (2) Chamber/city partnership economic event proposal – (3) Database – (4) Ombudsman – (5) Shop local, Auto center, Totally local VC and marketing.
Media spots have been used to help shop local
General business development – partners, showing: (1) Chamber – (1.1) Business development – (2) DDL/DVB – (2.1) Recruitment packet – (2.2) Property owner/broker facilitation – (3)V CB – (3.1) Film Ventura and film 411 – (3.2) TB ID – (3.3) Leveraging brand
The visitor convention Bureau has helped market an over the city banner – numerous downtown brochures with films, and restaurant week.
High-Tech – High-Tech City Strategies – (1) Ventura Ventures technology center – (2) Academic and investor collaboration – (3) Mayor's high-tech roundtable – (4) Marketing
The program was designed to help turn out entrepreneurs in the so-called Incubator. He said that unless we were developing companies that could make big splashes we weren't doing what we should be doing.
Showing: The trade desk the Ventura's UCSB local universities to create development programs for entrepreneurs. The mayor's high-tech roundtable will now be planned to be held quarterly. Venture capitalists and academics are expected to participate – The entrepreneurial culture as it was described is what is necessary in order to have an impact.
Showing: The Trade Desk (fifth floor) – It's necessary to let people know that this is the place where things are happening, according to the speaker. The council decided that one of the companies in the Incubator, the Trade Desk was moved to the fifth floor.
High-Tech Partners, showing: (1) Chambers/B. To DC – (2) Mobile apps – (3) Wi-fi downtown – (4) Ventura visitors network – (5) Web based initiative – (6) Luring tech conference
The chamber representative spoke on the high-tech partners. A mobile version of the website for Ventura is apparently on the way. They're also working on digital tags to go into brochures meaning that an application on the phone can access the tag. A video loop that shows how people can enjoy visitor venues. Reservations can be accessed through the device. The W. ACB the tech forum in 2013
Creative City Initiatives, showing: (1) Restaurant week – (2) Ventura music week – (3) Starlight Cinema – (4) Banner program – (5) Cultural tourism – (6) Artists focus groups – (7) Technical assistance workshop
Creative Partner Initiatives, showing: (1) Film 411 – (2) The Ventura Arts community – (3) Engagement – (4) Events, art walk, Paint Ventura – (5) Ventura “the real California”
411 is used in Los Angeles where filmmakers can make contact through a phone social networking process, The cultural story was discussed as being accessed through the artist community. The shot local campaign has been looked at as a crossover. And promoting the real California Tourism Bureau Improvement District TBID
Green City Initiatives, showing: (1) Defined – (2) Green business inventory – (2.1) Create a baseline to manage success – (3) Green business ambassador – (3.1) i.e. S. R. S. Source Recycling Services and Patagonia – (4) Marketing The speaker said that ways to promote Ventura as the city of green businesses was one of his priorities.
Green Partner Initiatives, showing: (1) Chamber green committee – (2) Cultivate Ventura – (3) Certifications – (3.1) Green meetings – (3.2) Utility recognition programs – (4) Environmental excellence Awards – (5) Ecotourism
Attracting more tourists by showing off our beautiful environment here in Ventura
Future Partnership Opportunities, showing (1) Culture of innovation – (2) Business friendly soft incentives – (3) “The Real California” – (4) Integrated business database
Jeff said that we don't have the dollars to attract business, but are business friendly. Environment and incentives would be making the difference in this area (The City on the Hill)
The integrated business database is designed to help understand who are target businesses might be. Jeff hoped that this would be a brief introduction to the objectives.
The mayor asked the question what do we think of all of this.
Council Member Brennan declared that it's all wonderful stuff, and not pie-in-the-sky. The councilman wished to know what we would consider a success in terms of realistic goals, as in, how many conferences we may be hosting or how many green businesses may relocate. The second part would be who sets the parameters for the goals.
Mr. Cole said that a performance measure for high-value high end jobs would be to include jobs making over $50,000 per year. This is estimated, said Mr. Cole. We can't know whether in the physical boundaries of the city that there are X number of these types of jobs. It should be our job to compete for high-value high wage jobs, preferably in the private sector though he didn't wish to eliminate public sector or nonprofit sector good jobs. He hoped that by the 2016 process we could set specific goals for the number of private-sector jobs we could attract as a way of focusing these partners on real results.
The measurement process, said Mr. Cole, could be performed as we move out in time on the program. Jeff said that just because we're focusing on high-tech jobs doesn't mean we're not focusing on other types of jobs. Mr. Cole added to this the idea that new landlords and new restaurants and new laundromats appear along with the other high-tech jobs. Benchmarking successes would be to track the available properties and the amount of square footage, noting that after recruitment efforts we can see what the vacancy rate downtown has been.
Council Member Weir asked that we pay attention to what a business wants when they come here – if the city is clean and other basic amenities. She said it sounds unsexy but that there is a need for the basic underpinnings for support. She said we have to compete in the housing area. She claimed to be surprised at the numbers. The number of million-dollar homes percentagewise is about 4% where the County as a whole it's around 10%. Our household income is lower, and a lot of this follows housing, according to the councilwoman.
Council Member Morehouse said that the hospital district would be one that should be mentioned, appropriately, as it was, but that the councilman talks about the college district as a point of emphasis. Retention and growth would be based on unique strengths within the city. We are what we are said the councilman. He claimed to be frustrated by some of the basic polling ideas. We can't repartee to the film Festival in Santa Barbara for example. But thanks to bubble up from the private sector. He said we've been through our second Art Festival. The Johnny Cash Festival is coming up for its third go around. The Kinetic Sculpture Race was something that the harbor district promoted and that it's unique to Ventura. The mayor said it’s green, creative, and high-tech.
The Councilman continued saying that they shifted gears a bit not being able to compete with Santa Barbara or Montréal, but that some of these things are happening organically. We need to figure out how to help them grow and not reinvent them.
The deputy mayor thought we needed to do more with the auto center project that is ongoing. The light industrial businesses on Market Street don't seem to get a lot of attention, but these are a large and growing segment of businesses with many employees. It was his view that these light industrial businesses go a long way in holding our economy together, and that with them not getting the attention of the incubator and some of these other ideas there may be a bit of a loss in the process.
Jeff said that in working with the Westside we do also work with those types of businesses, feeling that they are more engaged with the city. Mr. Tracy thought that this was a historical reality and that we shouldn't try to ignore it.
Groups like Able and Baker to high-end business, many of these others are green and high-tech. We've tried to identify these including Gospel Light Publications as a large entity with around 100 employees. Mr. Tracy mentioned a crematorium in the area which spurred several ghastly jokes.
The mayor asked the creative economy specialist in joking fashion whether any of the business and entrepreneurs were left-handed. The mayor went on to say that with more data available we should focus on more precise performance measurements. His thoughts included the idea that we should be able to slice and dice jobs better in the future. Another item would be to measure and focus on business to business transactions where the hidden gold in sales tax can be revealed, such as that which transpires on Market Street. We have for a city of our size a rather strong publishing, printing and graphic design sector. This would be one niche.
The mayor continued saying that we need targets for the indicator, meaning that it might be businesses both in and out again – a “churn” goal. By focusing on the performance measures we would know what our tangible outcomes are supposed to be and how to measure the according to the mayor.
Two members of the public were in attendance and the mayor asked if either would like to speak. The mayor believed there was a fair amount of consensus on this and that we should be able go forward.
Mr. Cole said he would invite the mayor's feedback on to how useful this interchange was and whether there was more to it than a dog and pony show. The mayor replied that the staff was a bit close for retaliation. Mr. Cole then continued by saying that we may be relating our efforts based perhaps on cartoons where forward motion is often exaggerated. The mayor noted the analogy as being Road Runner inspired. The mayor then said with no further communications from the public or from the council, the meeting would stand adjourned.