MINUTES OJAI CITY COUNCIL TUESDAY, OCTOBER 25, 2016 REGULAR MEETING 7:00 P.M. COUNCIL CHAMBERS, OJAI CITY HALL 401 S. VENTURA STREET – OJAI, CA ROLL CALL Mayor Blatz called the Regular Meeting of the Ojai City Council to order on Tuesday, October 25, 2016, at 7:00 p.m. in the Council Chambers of Ojai City Hall, 401 S. Ventura Street, Ojai, California. On the call of the roll, the following Council Members reported present: Paul Blatz, William Weirick, Betsy Clapp, Severo Lara and Randy Haney. Also present were: City Manager Steve McClary, City Attorney Matthew Summers and Amber Young, Deputy City Clerk. PLEDGE OF ALLEGIANCE – Council Member Clapp PUBLIC COMMUNICATIONS Peter Lafollette, Ojai, commented on traffic on east Ojai Avenue. City Manager Steve McClary said he will discuss the matter with Public Works Director Greg Grant. Betsy Bachman, Ojai, of the Ojai Music Festival’s Women’s’ Committee, provided information about the Committee’s upcoming Holiday Home Look-in tour. She also shared information about programs funded by the tour’s proceeds. Ann Scanlin, Ojai, shared information on new exhibits and events at the Ojai Valley Museum. Jane Weil, Ojai, said the City should allow leaf blowers at least a few days of the week. Suza Francina, Ojai, said the City should review pedestrian safety along Ojai Avenue. Deborah Pendrey, Ojai, gave updates on the Ojai Valley Green Coalition and upcoming events. Rene Roth commented on an upcoming event of the Ojai Valley Green Coalition. COUNCIL PRESENTATIONS Council Member Lara commended community efforts to improve safety along children’s morning bicycle routes to school. He also gave an update on work of the Ad Hoc Committee on Cultural Resources.

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Council Member Haney gave a report on information from the California Water Systems Inspection Trip. He said he will be providing information for Ojai residents from the program. He also reported on work of the Ad Hoc Committee on Cultural Resources. Mayor Pro Tem Weirick said he would like a special section on the City Web site of water information, to be available to the public. City Manager McClary said he will direct staff to pursue the request. Mayor Blatz provided statistics on groundwater use in the Ojai Valley from the Ojai Valley Groundwater Management Agency (OVGMA), showing that less water has been extracted this year than last year. Council Member Clapp said that if the City draws water from the California Water Project, that the City should first confirm that it is not damaging another bioregion by doing so. CONSENT CALENDAR (Items 1. a through e) 1. a) Waiver of Reading in Full of Any and All Ordinances Listed on this Agenda and provide that they be Read by Title Only and Directing the Clerk to Assign an Ordinance Number Upon Successful introduction b) Minutes of the Planning Commission for regular meetings of August 17, 2016, September 7, and September 21, 2016 RECOMMENDATION: Receive and file. c) Treasurer’s Monthly Report of Investments for the City of Ojai and the Redevelopment Successor Agency (May 2016) RECOMMENDATION: Receive and file. d) Treasurer’s Monthly Report of Investments for the City of Ojai and the Redevelopment Successor Agency (June 2016) RECOMMENDATION: Receive and file. e) City of Ojai Warrants for August 31, 2016 – October 14, 2016 RECOMMENDATION: Receive and file. MOTION: It was moved by Council Member Lara and seconded by Council Member Haney to approve items 1.a and 1.b on the consent calendar. On roll call the vote was: AYES: Blatz, Clapp, Haney, Lara, Weirick NOES: None ABSENT: None ABSTAIN: None

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MOTION: It was moved by Mayor Pro Tem Weirick and seconded by Council Member Haney to approve Items 1.c, 1.d and 1.e for this meeting, on the condition that future written reports of receipts, disbursements and fund balances have the signature approval of the City Treasurer and/or the City Treasurer’s designee, in compliance with California State Statue 41004 and/or 41007. On roll call the vote was: AYES: Blatz, Clapp, Haney, Lara, Weirick NOES: None ABSENT: None ABSTAIN: None DISCUSSION ITEMS 2. Moratorium and Prohibition on the Issuance of Private Water Well Permits RECOMMENDATIONS: 1. Receive public comment, and By separate motion and vote: 2. Adopt an Urgency Ordinance Establishing a Moratorium and Prohibition on the Issuance of Permits for Private Water Wells and Establishing Certain Exceptions and Procedures for Waivers thereof (requires four affirmative votes), and 3. Introduce and read the title of a Non-urgency Ordinance Establishing a Moratorium and Prohibition on the Issuance of Permits for Private Water Wells and Establishing Certain Exceptions and Procedures for Waivers thereof (requires a majority vote). City Manager McClary and City Attorney Summers gave a brief staff report. In response to a question from Council Member Lara, City Attorney Summers said OVGMA is in process of obtaining information regarding state standards to develop sustainability plans. Mayor Blatz said the OVGMA expects to have the plan prior to January 1, 2017. City Attorney Summers noted that if OVGMA does adopt alternative groundwater sustainability plans by the anticipated timeline of January 1, 2017, then new water well permits will be permissible, unless the Council takes further action. Mayor Blatz opened the floor to public comment Johnny Johnston, Ojai, supports the proposed ordinance. There were no further comments from the public. MOTION: It was moved by Council Member Clapp and seconded by Council Member Lara to adopt an urgency ordinance establishing a moratorium and prohibition on the issuance of permits for private water wells and establishing certain exceptions and procedures for waivers thereof.

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It was further moved to also modify the language in the 7th and 8th paragraphs of the proposed ordinance’s recitals as follows: “WHEREAS, in the Ojai Valley, the water supply is largely dependent on Lake Casitas and the Ojai Groundwater Basin, and Lake Casitas is only approximately 36% full and is expected to drop below 30% during the 2017 water year; and the Ojai Groundwater Basin is also less than 40% full, and WHEREAS, the Casitas Municipal Water District imposed Stage III water conservation restrictions by Resolution of its Board of Directors on April 27, 2016, citing the ongoing critical statewide drought and its particular local severity, given the limited available sources of water for the Ojai Valley.” A discussion ensued on the dais. Mayor Pro Tem Weirick asked that the motion be amended to modify the language in the 7th and 8th paragraphs of the proposed ordinance. He asked that the 7th paragraph also note that the Ojai Groundwater Basin is below 40% of capacity, and that in the 8th paragraph, the clause, “the principal wholesale water supplier for the City and the wider Ojai Valley” be removed. Council Member Clapp amended her motion and Council Member Lara seconded. Council Member Clapp said language in the final paragraph of the section titled, “Moratorium Provisions” is vague. She proposed language for that paragraph stating the moratorium would stay in place until such a time as there is adequate water supply to remove water restrictions on the current population, and when the lake and groundwater basin are at levels considered adequate to remove drought restrictions. In response to a question from Mayor Blatz, City Attorney Summers said that due to the current extreme low levels in the lake and aquifer due to drought conditions, the City does have the right to impose a water well drilling ban. The City can keep the ban in place until it takes further action or sets a trigger, as per Council Member Clapp’s suggested language, such as when the lake and/or aquifer reaching a specified level. Council Member Clapp clarified that in addition to the changes she proposed, the sustainability plan should also be in place. She wants to add the additional language because the sustainability plan by itself does nothing to ensure that the City will have water in the future. Council Member Haney said the lake’s water levels and ground water issues should be handled as two separate matters. He said the question of well drilling should be approached as an issue of wells affecting the aquifer, and that the lake is an entity unto itself, not affected by wells drilling into the aquifer. He also proposed holding a joint meeting with representatives of OVGMA to discuss the conditions of the aquifer, the status of their sustainability plan and what their sustainability

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plan will achieve. Council Member Clapp was agreeable to addressing the aquifer only. She added that the ordnance should ensure that no more wells be drilled until drought conditions are over. Council Member Lara said taking out language regarding the sustainability plan telegraphs that the Council does not trust OVGMA’s sustainability plan. Mayor Pro Tem Weirick suggested adding language to the proposed ordinance’s Section 4.d, saying the Council must also take further action before the moratorium can be lifted. Mayor Blatz agreed, saying that the ordinance should note that the Council will have final say in lifting the moratorium. City Attorney Summers said the language proposed by Mayor Pro Tem Weirick accomplishes that goal. AMENDED MOTION: It was moved by Council Member Clapp and seconded by Mayor Pro Tem Weirick to adopt an urgency ordinance establishing a moratorium and prohibition on the issuance of permits for private water wells, and establishing certain exceptions and procedures for waivers thereof. It was moved to include an amendment to the proposed ordinance, by adding the phrase, “and the City Council takes further action” To the end of Section 4 Part d as follows: Section 4. Exceptions to Water Well Permit Prohibitions. The water well permit prohibitions contained in this ordinance shall not apply to: (d) Water well permits provided that a groundwater sustainability agency has adopted and submitted to the Department of Water Resources a groundwater sustainability plan or alternative plan for the Ojai Valley Basin pursuant to Water Code Sections 10727 and 10733.6, and the City Council takes further action. It was further moved to also modify the 7th and 8th paragraphs of the proposed ordinance’s recitals as follows: “WHEREAS, in the Ojai Valley, the water supply is largely dependent on Lake Casitas and the Ojai Groundwater Basin, and Lake Casitas is only approximately 36% full and is expected to drop below 30% during the 2017 water year; and the Ojai Groundwater Basin is also less than 40% full, and WHEREAS, the Casitas Municipal Water District imposed Stage III water conservation restrictions by Resolution of its Board of Directors on April 27, 2016, citing the ongoing critical statewide drought and its particular local severity, given the limited available sources of water for the Ojai Valley.” On roll call the vote was: AYES: Blatz, Clapp, Haney, Lara, Weirick NOES: None ABSENT: None

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ABSTAIN: None MOTION: It was moved by Council Member Clapp and seconded by Mayor Pro Tem Weirick to introduce and read the title of a non-urgency ordinance establishing a moratorium and prohibition on the issuance of permits for private water wells and establishing certain exceptions and procedures for waivers thereof. It was moved to include an amendment to the proposed ordinance, by adding the phrase, “and the City Council takes further action” To the end of Section 3 Part d as follows: Section 3. Exceptions to Water Well Permit Prohibitions. The water well permit prohibitions contained in this ordinance shall not apply to: (d) Water well permits provided that a groundwater sustainability agency has adopted and submitted to the Department of Water Resources a groundwater sustainability plan or alternative plan for the Ojai Valley Basin pursuant to Water Coe Sections 10727 and 10733.6, and the City Council takes further action. It was further moved to also modify the 7th and 8th paragraphs of the proposed ordinance’s recitals as follows: “WHEREAS, in the Ojai Valley, the water supply is largely dependent on Lake Casitas and the Ojai Groundwater Basin, and Lake Casitas is only approximately 36% full and is expected to drop below 30% during the 2017 water year; and the Ojai Groundwater Basin is also less than 40% full, and WHEREAS, the Casitas Municipal Water District imposed Stage III water conservation restrictions by Resolution of its Board of Directors on April 27, 2016, citing the ongoing critical statewide drought and its particular local severity, given the limited available sources of water for the Ojai Valley.” On roll call the vote was: AYES: Blatz, Clapp, Haney, Lara, Weirick NOES: None ABSENT: None ABSTAIN: None 3. Consideration and Potential Adoption of an Urgency Ordinance Under Government Code Section 65858 Imposing a Limited, 45-day, Moratorium on Certain New and Expanded Commercial Development Projects Requiring New, Expanded, or Greater than 10% Additional Capacity Replacement Water Service Connections and New Swimming Pools RECOMMENDATION: 1. Receive Public Comment OPTIONS: 1. Consider Adoption of an Urgency Ordinance under Government Code Section 65858 Imposing a Limited, 45-day, Moratorium on Certain New and Expanded Commercial Development Projects Requiring New, Expanded, or Greater than

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10% Additional Capacity Replacement Water Service Connections and New Swimming Pools. (Requires 4/5 Vote); or 2. Modify the development moratorium as desired and adopt as modified (Requires a 4/5 vote), or 3. Defer consideration of a development moratorium to a future Council Meeting; or 4. Not adopt a moratorium at this time. Mayor Blatz noted that while the agenda item focuses on a moratorium for certain commercial development projects, it may be modified to also address residential development and can be acted on tonight, if the Council so wishes. City Manager McClary and City Attorney Summers gave a brief staff report. In response to a question by Council Member Lara, City Attorney Summers said that if the City adopts the proposed moratorium tonight, the City could again adopt a moratorium in the future with at least a year’s gap in between. Per state law, the future moratorium would also have to be adopted for a different reason, i.e., a different basis for the moratorium, since it suspends a portion of the City’s zoning code. Mayor Blatz noted that the City Council sent the new water-wise construction building standards to the Planning Commission. He noted that he wants the Council briefed every meeting on the status of the Commission’s work on the standards. He said any questions the Council has regarding that progress can be incorporated into this agenda item discussion. Mayor Blatz opened the floor to public comment Myles Steimle said the Council should include pools in the proposed moratorium. Steve Quilici, Ojai, said when discussing a proposed moratorium, the Council should consider the water needs of BōKU Super Foods, which plans to move into property on Ojai Avenue. Johnny Johnston, Ojai, said his understanding is that BōKU Super Foods property is already metered. He said therefore the company’s occupancy will likely not significantly increase water use at the site. He said he supports a commercial building moratorium. A resident (unnamed), said that pool covers help reduce pool water evaporation. There were no further comments from the public. MOTION: It was moved by Council Member Clapp and seconded by Council Member Lara to adopt an urgency ordinance under government code section 65858 imposing a limited, 45-day, moratorium on certain new and expanded commercial development projects requiring new, expanded, or greater than 10% additional capacity replacement water service connections and new swimming pools.

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In response to a question from Council Member Lara, Community Development Director Kathleen Wold said that offhand she does not have information on the number of commercial new, expanded, or greater than 10% additional capacity replacement water service connections that occur in the City each year. She said most permits are pulled for businesses using existing buildings and commercial spaces that are suited to the size of the business. She noted that exceptions would be new businesses such as the Topa Mountain Winery, which opened on a property where previously an abandoned building had stood. City Attorney Summers said that the proposed ordinance is worded to weigh use against a property’s situation today. He said that if a new development can rely on the present water connection, then it wouldn’t fall under the proposed moratorium as drafted. Community Development Director Wold said the City is not directly involved in water allocation, so that is not something the City tracks. The City’s only involvement is to ask new developments to provide a copy of their Will Serve letter. City Attorney Summers said that the proposed ordinance does not examine how much water a new business would use, but rather it examines whether a new business will require a new water connection or a connection with greater capacity than existing water usage. Council Member Haney said that the 10% additional capacity designation is arbitrary and isn’t necessarily supported by science. City Attorney Summers said that the Council is free to change the 10% designation. Council Member Haney noted for general information that regarding water usage in landscaping, Golden State Water Company, as the local water purveyor, is responsible for accounting for water usage on a given property, and ensuring that each property is in compliance. Mayor Blatz said he is concerned that the City must rely on water use information from an agency in the business of selling water and profiting from selling water. In response to a question from Mayor Blatz, City Attorney Summers said that if the City wanted to approve a commercial project without approving its landscaping plan, there are two ways the City could approach that. First, the City Council could grant a variance if the landscaping plan featured a permeable hardscape. Alternatively, the Council could grant approval for landscaping in two stages: gravel at first and then allow the project to apply later for a landscape plan. Discussion ensued on the dais regarding the procedure for the Planning Commission to develop the water-wise building standards.

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Mayor Blatz said that there is merit in waiting for the new standards to be in place before approving any new major commercial projects. He said that would be to the community’s benefit in the long term. He said it is a small sacrifice in terms of time, to ensure that the City has what it wants for the future. In response to a question from Council Member Clapp, City Attorney Summers said that the Council can extend the original 45-day moratorium for as long as an additional 10 months and 15 days, with a four-fifths vote. In a response to a question from Mayor Pro Tem Weirick, City Attorney Summers said the Council can adopt a moratorium on an urgency basis without requiring full public hearings and noticing, provided that the Council makes supporting urgency findings to adopt it, and then hold public hearings at a later date. He noted that since it is a zoning ordinance, it would still be subject to time limits per Government Code Section 65858. In response to a question from Mayor Blatz, City Attorney Summers said the Planning Commission as well as the City Council must have full public hearings prior to a proposed permanent zoning ordinance change. Council Member Clapp noted that BōKU Super Foods manufactures dry foods, so the company would likely not require additional water use from the existing meter. City Attorney Summers said the proposed ordinance addresses capacity rather than actual usage. In response to a question from Council Member Haney, Community Development Director Wold said last year the City processed only a few commercial projects compared to the number of residential projects. She said most commercial projects are remodels. In response to a question from Council Member Haney, City Attorney Summers explained that under the proposed ordinance’s “takings challenge” safety valve, any permit applicant who can prove that prove that the moratorium creates a significant economic impact to their business can apply for a variance if approved by the Planning Commission. He added, however that the proposed moratorium’s short time frame and temporary nature might limit potential challenges. He said that the courts typically rule that a temporary restriction on land use is not a taking. Council Member Lara said that he would like data on how exactly how much water Ojai actually uses. He said he wants the public to be aware that the proposed emergency ordinance is mainly a precaution to safeguard the City’s character. He said it doesn’t take the place of exploring other ways of conserving water. Mayor Blatz said that while this ordinance may not save water, enacting it may help preserve the City’s character until the new water-wise standards are completed. Council Member Clapp agreed.

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Mayor Pro Tem Weirick said that a project takes months for the City to review. He cited a large development working through the review process at the County of Ventura that incorporates water-wise building standards. He said there is no reason that the City cannot incorporate equally thoughtful water-wise standards. He added that he has concerns about a broad moratorium with unintended consequences. Council Member Haney said that imposing a moratorium could send a negative message to some members of the community and that therefore public comment is important to this process. He said that a moratorium could harm the community in the long term. Mayor Blatz said the proposed moratorium helps the community by putting on hold any possible water use-increasing projects until the City has water-wise building standards in place. Council Member Lara said that due to already existing drought conditions, any businesses that come into the City will likely not be businesses that require heavy water use. He said that for that reason he has concerns about enacting a moratorium. On roll call the vote was: AYES: Blatz, Clapp NOES: Haney, Lara, Weirick ABSENT: None ABSTAIN: None 4. Second Residential Unit Ordinance Supplemental Update RECOMMENDATIONS: 1. Receive Public Comment, and 2. Consider the previously proposed amendments to the conforming second unit ordinance and new state mandates for a second unit ordinance to be valid under Senate Bill 1069 and provide direction to the Community Development Director and City Attorney to draft an ordinance implementing the Council’s desired amendments to the conforming second unit ordinance for consideration by the Planning Commission and City Council.

Community Development Director Wold and City Attorney Summers gave a brief staff report. In response to a question from Mayor Pro Tem Weirick, Community Development Director Wold said that no-setback garage conversions still allow fire code requirements. In response to a question from Mayor Pro Tem Weirick, City Attorney Summers said the law assumes that original units are units built with a legal permit. City Attorney Summers noted the principal definition of a second dwelling unit is a unit that adds a kitchen.

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Council Member Lara asked if a homeowner would be able to add a second unit directly attached to the home so that it does not have to go through discretionary review. City Attorney Summers said that would be up to the discretion of the Council. Mayor Blatz opened the floor to public comment Dale Hansen, Ojai, asked if the requirement is specifically tied to low-income housing. City Attorney Summers said there is no low-income housing requirement. He also responded to Ms. Hansen’s questions regarding deed requirements. There were no further comments from the public. MOTION: It was moved by Mayor Pro Tem Weirick and seconded by Council Member Haney to direct the City Attorney to develop an ordinance detailing the minimum necessary amendments to maintain the integrity of the City’s second-unit conforming ordinance for consideration at the Council’s next meeting. On roll call the vote was: AYES: Blatz, Haney, Lara, Weirick NOES: Clapp ABSENT: None ABSTAIN: None 5. Review and Discussion of the City’s Annual Housing Element Progress Reports for Cycle 4 Reporting Periods 2012 and 2013 RECOMENDATION: Review and comment on the Annual Housing Element Progress Reports (2012 and 2013) and if Council finds the reports to be adequate, direct staff to file the reports with the Office of Planning and Research (OPR), Department of Housing and Community Development (HCD). Community Development Director Wold gave a brief staff report. Mayor Blatz clarified information in the housing allocation table in the staff report. In response to a question from Council Member Haney, Community Development Director Wold said the significance of the report is that it is a procedural item for HCD to remain in state compliance, and that it gives the public a chance to provide input to the Council on the City’s progress in providing affordable housing. It also provides the Council with an opportunity to provide its feedback to staff. Council Member Haney noted that the report also gives residents an opportunity to understand the City’s processes and state requirements regarding affordable housing. Community Development Director Wold provided information on the timeline for

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addressing the Annual Housing Element Progress Report. Mayor Blatz provided some history of the Council’s action regarding the report. City Manager McClary gave further history. A discussion ensued on the dais regarding the City’s processes and state requirements regarding affordable housing. Mayor Blatz opened the floor to public comment. Johnny Johnston, Ojai, asked a question about surplus properties. There were no further public comments. MOTION: It was moved by Mayor Pro Tem Weirick and seconded by Council Member Haney to file the reports with the Office of Planning and Research (OPR), Department of Housing and Community Development (HCD). On roll call the vote was: AYES: Blatz, Clapp, Haney, Lara, Weirick NOES: None ABSENT: None ABSTAIN: None 6. Introduction of Proposed Ordinance Adjusting City Treasurer’s Compensation to Equal City Clerk’s Compensation and Permitting Future Adjustments by Resolution RECOMMENDATIONS: 1. Receive public comment, and 2. Introduce an ordinance adjusting City Treasurer’s compensation to equal City Clerk’s compensation and permitting future adjustments by resolution, and 3. Ask the City Clerk to read the title of the ordinance. City Manager McClary provided a brief staff report. Mayor Blatz opened the floor to public comment. Peggy LaCerra, Ojai, commented on a job posting with the City earlier in the year and asked for clarification on the role described in the posting. City Manager McClary provided clarification regarding the duties of the City Clerk and the City Records Manager. There were no further public comments.

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MOTION: It was moved by Mayor Pro Tem Weirick and seconded by Council Member Clapp to introduce an ordinance adjusting the City Treasurer’s compensation to equal the City Clerk’s compensation, and permitting future adjustments by resolution. Council Member Clapp said that in her experience the City Treasurer has not had much involvement with the City’s budgeting process other than to sign papers. Mayor Pro Tem Weirick said there are state requirements regarding specific City Treasurer duties. He said he spoke with the City Treasurer, who agreed he should take a more active role in reviewing the City’s financial reports. Mayor Pro Tem Weirick said the City Treasurer should have the same compensation as the City Clerk for fulfilling statutory obligations. Council Member Clapp said she is also not in favor of changes done by resolution, so she will be opposing the motion. On roll call the vote was: AYES: Blatz, Haney, Lara, Weirick NOES: Clapp ABSENT: None ABSTAIN: None 7. Establish a two-year term (May 2016 to May 2018) for one of four new members of the Historic Preservation Commission or refer the matter to the Historic Preservation Commission RECOMMENDATIONS: 1. Establish a two-year term (May 2016 to May 2018) for one of four new members of the Historic Preservation Commission, or 2. Refer the matter to the Historic Preservation Commission. City Manager McClary provided a brief staff report. Discussion ensued on the dais regarding the merits of a straw count. Council members all agreed to use a straw vote to choose the Commission member to be switched to a two-year term. Council Member McClary placed papers listing names of the Commission members in a container and had Deputy City Clerk Amber Young draw a paper. She drew the name of Tiese Quinn. MOTION: It was moved by Mayor Pro Tem Weirick and seconded by Council Member Haney to establish a two-year term (May 2016 to May 2018) for Historic Preservation Commission member Tiese Quinn. On roll call the vote was: AYES: Blatz, Clapp, Haney, Lara, Weirick NOES: None

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ABSENT: None ABSTAIN: None 8. City Council Priority List RECOMMENDATION: Review and provide direction to the City Manager on the City Council Priority List City Manager McClary provided a brief staff report. Council Member Clapp noted that due to the fact that the election is in two weeks, she prefers the list be reviewed when the new Council is seated. Mayor Pro Tem Weirick said he would like feedback on prioritizing items on the list. Council Member Lara said he agrees with Council Member Clapp. Mayor Blatz opened the floor to public comment. There were no public comments. The agenda item was tabled, to be revisited when the new City Council is impaneled on December 13, 2016. 9. ORAL REPORT BY FINANCE DIRECTOR ON STATUS OF FY 2016-17 BUDGET City Finance Director Rudy Livingston gave a staff report on the FY 2016-2017 budget. He noted that as of now the City expects a budget reduction of about $75,000 due to property tax revenue changes. In response to a question from Mayor Pro Tem Weirick, Finance Director Livingston said the information could be reviewed with the County of Ventura assessor’s office. In response to a question from Mayor Blatz, Finance Director Livingston said that the assessment is not due to property tax revenues decreasing, but rather to revenues not reaching estimations. City Manager McClary noted that staff is watching the matter and if need be will bring it before the Council again, for example, for a mid-year budget adjustment. Finance Director Livingston said he anticipates bringing an overall budget to the Council in mid-March. City Manager McClary said he and Finance Director Livingston are meeting monthly to review the budget. Finance Director Livingston said next year he will create a multi-year fiscal forecast.

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ORAL REPORTS BY CITY MANAGER City Manager McClary said the City has filed two protest letters with the California Public Utilities Commission (CPUC). They addressed two advice letters recently filed by Golden State Water Company, one of which was to amend the Stage III drought restrictions; the other asked the CPUC to oppose additional rate increases, fines and penalties. He said that the City worked with its Special Counsel, Ryan Blatz, to develop the protest letters and they were filed within the 20-day deadline. He said that while the City has not had much past success with this type of protest letter, this time the City has especially salient points related to the drought and the City meeting its water conservation goals. City Manager McClary also noted Ojai Police Department Captain David Kenney will be replaced by Captain James Fryhoff. City Manager McClary noted he is considering adding a sustainability component to the fiscal impact section of staff reports. He welcomes feedback from Council members on this idea. City Attorney Summers said the New York State Legislature passed a bill imposing fines starting at $3,500 on short-term rental owners operating in the state of New York. The following day AirBnB filed a lawsuit challenging the bill. He said he will report on the suit as it moves through the New York court system. He said he continues to monitor other suits and that the City’s ordinances remain defensible and that he will advise if that changes. Police Chief Kenney reported that the first heavy rains of the year are expected shortly and that residents should take care when driving in the rain. At 10:07 p.m. Mayor Blatz adjourned the Regular Meeting to closed session. CLOSED SESSION Conference with Legal Counsel, Initiation of Litigation (Gov. Code Sec. 54956.9(d)(4)) Number of Potential Cases: Two cases. ADJOURNMENT The Oct. 25, 2016 meeting of the Ojai City Council was adjourned at 11:07 p.m.

Respectfully submitted:

Approved by:

Amber Young, Deputy City Clerk

Paul Blatz, Mayor