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HomeMy WebLinkAbout13 - Sober Living by the SeaCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item # .13 January 27, 2009 TO: HONORABLE MAYOR AND COUNCIL MEMBERS FROM: Dave Kiff, Assistant City Manager 949 - 644 -3002 or dkiff @city.newport- beach.ca.us SUBJECT: Ordinance 2009-: Implementation and Public Benefit Agreement, City of Newport Beach and Sober Living by the Sea ISSUE: Should the City adopt an Ordinance entering into a Zoning Agreement with Sober Living by the Sea, Inc. relating to SLBTS' sober living and treatment facilities? RECOMMENDED ACTION: 1. Conduct the Public Hearing; and 2. Introduce Ordinance 2009 -_ relating to a Zoning Implementation and Public Benefit Agreement ( "Zoning Agreement ") between the City of Newport Beach ( "City") and Sober Living by the Sea ( "SLBTS ") and pass to Second Reading on Tuesday, February 10, 2009. BACKGROUND: NOTE #f: For detailed background about the City's Group Residential Uses Ordinance (Ordinance 2008 -05), please see the City's website under "Council Agendas" and read the staff report dated January 22, 2008 relating to the adoption of the Ordinance. For additional information about the proposed agreements between Sober Living by the Sea (SLBTS) and the City, please see the City's website under "Group Homes." NOTE #2: There are two documents that implement the City's negotiated settlement with SLBTS — a Settlement Agreement and the Zoning Agreement. The Settlement Agreement was approved in closed session, as a part of ending litigation. Only the Zoning Agreement is subject to this public hearing. To protect the integrity of residentially zoned areas of the city, residential uses like boarding houses and fraternities /sororities have been prohibited in all residential districts. Following the adoption of Ordinance 2008 -05 on January 22, 2008, the City has changed the way it regulates residential uses that do not consist of a single housekeeping unit, but provide group home living arrangements for the disabled, such as sober homes and alcohol and drug recovery treatment homes licensed by the State Zoning Agreement with Sober Living by the Sea January 27, 2009 Page 2 of California's Department of Alcohol and Drug Programs ( "ADP "). Key aspects of Ordinance 2008 -05 are as follows: A. Reasonable Accommodation. The concept of reasonable accommodation is a process by which a disabled person or a facility operator in need of housing can request a modification of an existing local law to allow that disabled person to retain housing — this process is fully described, allowed, and included as a new Chapter 20.98 within the Newport Beach Municipal Code (NBMC). B. Integral Facilities & Integral Uses. Ordinance 2008 -05 defines "Integral Facilities" and "Integral Uses." In addition to defining the terms, the Ordinance states that the City can consider small (housing six or fewer clients) ADP - licensed treatment and recovery facilities that operate integrally to be uses subject to a Use Permit and regulated similarly to small unlicensed facilities or general (7 and over") facilities. We defined "Integral Facility" and "Integral Uses" as follows: Integral Facility. Any combination of two or more Residential Care (Small Licensed, Small Unlicensed, or General) facilities which may or may not be located on the same or contiguous parcels of land, that are under the control and management of the same owner, operator, management company, or licensee or any affiliate of any of them, and are integrated components of one operation shall be referred to as Integral Facilities and shall be considered one facility for purposes of applying federal, state, and local laws to its operation. Examples of such Integral Facilities include, but are not limited to, the provision of housing in one facility and recovery programming, treatment, meals, or any other service or services to program participants in another facility or facilities or by assigning staff or a consultant or consultants to provide services to the same program participants in more than one licensed or unlicensed facility. Integral Uses. Any two or more licensed or unlicensed residential care programs commonly administered by the same owner, operator, management company, or licensee, or any affiliate of any of them, in a manner in which participants of two or more care programs participate simultaneously in any care or recovery activity or activities so commonly administered. Any such Integral Use shall be considered one use for purposes of applying federal, state, and local laws to its operation. In early May, 2008, Judge James Selna of the US District Court blocked the City's enforcement of the "integral facilities" definition within Ordinance 2008 -05 as it applies to ADP - licensed "6 and Unders ". Special Counsel Jim Markman of Richards, Watson, Gershon ( "RWG ") believes that the Judge's stay applies to the City's "integral uses" concept, too. C. Siting of New Facilities. Ordinance 2008 -05 allows various group residential .uses in the following zones as shown in Table 1: a Zoning Agreement with Sober Living by the Sea January 27, 2009 Page 3 Table 1 * This provision of the Ordinance was blocked via Judge Selna's actions of May 2008. The prohibitions of certain group residential uses in the R -1, R -1.5, and R -2 zones apply to new facilities. Many existing group residential facilities — indeed most if not all of the unlicensed facilities — became "non- conforming" after February 20, 2008. All non- conforming group residential uses then became subject to the Ordinance's Use Permit process and had to apply for a Use Permit by May 22, 2008 to continue to operate. D. Abatement. The Ordinance directs that any operator within one of the zones shown in Table 1 where their operation is either prohibited or allowed with a Use Permit but who did not apply for or obtain a Use Permit or secure Reasonable Accommodation in a timely manner must cease this use no later than February 22, 2009. An operator can ask a Hearing Officer for an extension of the abatement period, subject to certain findings. The Hearing Officer's extension decision can be appealed to the City Council. All facilities shown in Table 2 that were required to apply for a use permit, but did not, were issued abatement letters by the City on May 23, 2008, beginning the abatement process. E. The Use Permit Process. As noted in Table 1, existing non - conforming uses and new uses in the Multi - Family Residential ( "MFR') Zone had to apply for a Use Permit to remain in operation or to start operation. The key provisions of this process follow: 1 — Timing. Any existing operator had to apply for a Use Permit by May 22, 2008. 2 — Application. Applicants have been asked provide information to ensure that any use is operated in compliance with applicable laws, that the operator has a history of operating facilities consistent with any applicable laws, and that the applicant operating under a Use Permit will operate in a manner that minimizes adverse impact on facility residents, neighbors, the community, or the character of the neighborhood and that the use conforms with established industry standards for the well -being of the facility residents. 3 Zoning for New Group Facility Type R -1 Residential R -1.5 Uses R -2 MFR ADP Licensed 6 and Under ADP Licensed 6 and Under ® ®® (operating integrally Unlicensed 6 and Under . . (integral or not) 7 and Over . . (Licensed or Unlicensed) All Other ® . . . . . ® . . . ®® . . • Group Residential Uses * This provision of the Ordinance was blocked via Judge Selna's actions of May 2008. The prohibitions of certain group residential uses in the R -1, R -1.5, and R -2 zones apply to new facilities. Many existing group residential facilities — indeed most if not all of the unlicensed facilities — became "non- conforming" after February 20, 2008. All non- conforming group residential uses then became subject to the Ordinance's Use Permit process and had to apply for a Use Permit by May 22, 2008 to continue to operate. D. Abatement. The Ordinance directs that any operator within one of the zones shown in Table 1 where their operation is either prohibited or allowed with a Use Permit but who did not apply for or obtain a Use Permit or secure Reasonable Accommodation in a timely manner must cease this use no later than February 22, 2009. An operator can ask a Hearing Officer for an extension of the abatement period, subject to certain findings. The Hearing Officer's extension decision can be appealed to the City Council. All facilities shown in Table 2 that were required to apply for a use permit, but did not, were issued abatement letters by the City on May 23, 2008, beginning the abatement process. E. The Use Permit Process. As noted in Table 1, existing non - conforming uses and new uses in the Multi - Family Residential ( "MFR') Zone had to apply for a Use Permit to remain in operation or to start operation. The key provisions of this process follow: 1 — Timing. Any existing operator had to apply for a Use Permit by May 22, 2008. 2 — Application. Applicants have been asked provide information to ensure that any use is operated in compliance with applicable laws, that the operator has a history of operating facilities consistent with any applicable laws, and that the applicant operating under a Use Permit will operate in a manner that minimizes adverse impact on facility residents, neighbors, the community, or the character of the neighborhood and that the use conforms with established industry standards for the well -being of the facility residents. 3 Zoning Agreement wlth Sober Living by the Sea January 27, 2009 Page 4 3 — Notice and Hearing. Following Council Policy F -26, the City has designated three hearing officers (Thomas Allen, Charles Vose and Judy Sherman) to approve, conditionally approve, or disapprove group residential Use Permits at noticed public hearings. Decisions of the hearing officers may be appealed to the City Council. As of the date of this Staff Report, the following has occurred: • The 11 -bed Balboa Horizons facility for women at 1132 West Balboa received a conditional use permit. • The 29 -bed Newport Coast Recovery facility for men at 1216 West Balboa was denied a permit, but an appeal may be pending. • The 12 -bed Kramer Center facility was set for hearing on Thursday, January 22, 2009. • Two Ocean Recovery facilities were set for hearing in early February. 4 — Standards. Any Use Permit issued must adhere to these specific standards if applicable to the use: • No secondhand smoke can be detectable outside of the property. • Operations must comply with state law, local law, the submitted management plan, including any modifications to the plan required in the Use Permit. • A contact name and number must be provided. • No one can provide services that require a license if they don't have a license for those services. • There shall not be more than two persons per bedroom plus one additional resident. If an applicant wants to put more than 2 persons in one or more bedrooms, the applicant must request greater occupancy. The Hearing Officer may set different occupancy limits based on structure characteristics, traffic and parking impacts, and the health, safety, and welfare of the persons residing in the facility and neighborhood. • Where certification from a responsible entity other than ADP's licensing program is available to an operator (like the Orange County Sheriffs sober living facilities certification program or certification offered by the Orange County Sober Living Network), applicants must get that certification. • Every individual or entity involved in the facility's operation or ownership shall be disclosed to the City. • No owner or manager shall have any demonstrated pattern or practice of operating similar facilities in violation of law whether in or outside of Newport Beach. 5 — Findings. In addition to the findings set forth in the provisions governing Use Permits generally, Ordinance 2008 -05 provides that the Hearing Officer can approve a Use Permit only if certain findings can be made: W Zoning Agreement with Sober Living by the Sea January 27, 2009 Page 5 • The project has adequate parking on -site. • Traffic and transportation impacts have been mitigated to a level of insignificance. • Structures are suitable for the use. • The use will be compatible with the character of the neighborhood and will not create an over - concentration of residential care uses nearby. To make or sustain these findings, the Hearing Officer will consider as appropriate the following factors: • How close the proposed use is to schools, parks, other group homes, and alcoholic beverage outlets (and more); and • Whether the existence of non - standard lots and other property characteristics made such a use inappropriate; and • Whether the Hearing Officer should deem that the American Planning Association's (APA's) standard of permitting one or two group uses per block would be appropriate in this case OR whether a greater degree of separation is appropriate. The Ordinance describes facts in Newport Beach relating to blocks, which include: • Blocks in some neighborhoods can be as short as 300'. • Other blocks in town can be as long as 1,422'. • The calculable average block length in an area characterized by standard subdivisions is 711'. • The calculable median block length in an area characterized by standard subdivisions is 617'. If the Hearing Officer applies the APA standard, he or she is directed to do so in a manner that eliminates the differences in block lengths and guided by the median block lengths in standard subdivision areas of the city. The Hearing Officer retains the discretion to apply ANY degree of separation of uses which he or she deems appropriate. • That vans, shuttles, or buses for transportation of clients will not generate more traffic than normally generated by residential activities nearby. • That the operations do not have goods delivery, service deliveries or commercial trash collection during hours that would cause an adverse affect to the peace and quiet of neighboring properties. 6 — Revocation of the Use Permit. The Ordinance provides that that the Hearing Officer can revoke a UP (similar to other uses subject to a UP) if these findings are made: • The permit was issued under erroneous information or misrepresentation; or • The applicant made a false or misleading statement of material fact, or omitted a material fact; or • The conditions of use or other regulations or laws have been violated; or • There has been a discontinuance of use for 180 days or more. S Zoning Agreement with Sober Living by the Sea January 27, 2009 page 6 LEGAL ISSUES Since adoption in February 2008, Ordinance 2008 -05 and the City's actions have been subject to multiple legal actions, including: • A lawsuit from a residents' group (the "Concerned Citizens of Newport Beach" or "CCNB ") arguing that the City did not go far enough in enacting Ordinance 2008 -05. CCNB also sued multiple operators and asked for $250 million in damages from the City. • Complaints filed with the US Department of Housing and Urban Development (HUD) alleging that the City's ordinance and its practices have discriminated against disabled persons entitled to fair housing — filed separately by Pacific Shores Recovery and SLBTS. • Lawsuits from the City against Morningside Recovery and Pacific Shores Recovery, alleging that some of their operations began illegally during a short-term temporary moratorium in 2007 against the establishment of new group residential uses. Pacific Shores Recovery has in turn alleged that the City's group residential uses ordinance was facially discriminatory against persons in recovery. • Lawsuits from SLBTS against the City alleging that the City's group residential uses ordinance was facially discriminatory against persons in recovery (both the SLBTS and Pacific Shores lawsuits have been assigned to US District Court). • A "cross - complaint" by the City against SLBTS and other operators that consolidated certain lawsuits in US District Court. To resolve the SLBTS and CCNB cases, the City asked each party to participate in a supervised mediation before a retired judge in June 2008. All three parties agreed to do so, and all three parties participated in all or part of the mediation. The mediation led to a term sheet between SLBTS and the City's representatives. The term sheet has been written into two formal agreements between SLBTS and the City: A Settlement Agreement settling all legal issues between SLBTS and the City; and A Zoning Implementation and Public Benefit Agreement ( "Zoning Agreement "), approved under California's statutes relating to development agreements (California Government Code § §65864- 65869.5), that explains the duties of both SLBTS and the City in regards to SLBTS' sober homes and treatment facilities. The Settlement Agreement is Attachment A to this staff report. It was approved by the parties in November 2008, and is also available for readers on the City's website under the "Group Homes" icon. The Settlement Agreement needs the Zoning Agreement as an attachment. The Settlement Agreement cannot become effective unless the Zoning Agreement is approved and operable. 6 Zoning Agreement wdh Sober Living by the Sea January 27, 2009 Page 7 THE ZONING AGREEMENT Here are the key provisions of the Zoning Agreement: I — BED CAPS — CITYWIDE & PENINSULA ZONE The Zoning Agreement sets an overall citywide bed limitation on SLBTS's operations, whether treatment homes or sober homes. The bed cap also sets a sub - limit on beds within the "Peninsula Zone," defined in the Zoning Agreement as West Newport Beach, the Balboa Peninsula, and Lido Isle. There is an interim cap and a final cap. These limitations are shown as Table 3 as follows: Table 3 Location Mid-2001 Peninsula Zone 238 Interim Cap 156 Final Cap 156 Lido Isle 12 12 Rest of PZ 144 144 Rest of Newport Beach 0 48 Citywide 238 156 204 • The Zoning Agreement describes how the bed count would inidaAy go to 156 beds (the "interim cap "), down from up to 238 beds in mid -2007 (the City's estimate) and down from 204 beds by May 22, 2008 (facilities with 204 beds were submitted by SLBTS within the Use Permit process). • The Zoning Agreement describes how SLBTS can go back up to a final cap of 204 beds, but the additional 48 beds must go in MFR and entirely off of the Peninsula Zone. • SLBTS can only exceed the Interim Cap when SLBTS has completed a "one building per block" dispersion plan as described below. • The Zoning Agreement sets forth a Final Cap for the Peninsula Zone —156 beds. • The Zoning Agreement sets forth a Final Cap for Lido Isle within the Peninsula Zone and within the 156 bed limit —12 beds. If — BED CAPS INCLUDE STATE LICENSED "6 & UNDERS" The Zoning Agreement describes how the caps apply to all beds, whether the beds are in licensed facilities (Large facilities or ADP - licensed "6 and Unders") or unlicensed SLBTS facilities. NOTE: State law (California Health and Safety Code §11834.23) does not allow any city to cap or regulate ADP - licensed "6 and Unders" unless an operator voluntarily agrees to be regulated, as SLBTS has done via the Zoning Agreement. III — ONE BUILDING PER BLOCK Under the Zoning Agreement, a duplex is considered to be one building — the Zoning Agreement also describes how: SLBTS will move certain of its operations upon expiration of leases so that, generally, SLBTS' facilities will be dispersed to "one building per block." The Zoning Agreement defines a block as an area bounded by four streets, not alleys. There is one exception to this "One Building per Block" standard in the Zoning Agreement: Zoning Agreement with Sober Living by the Sea January 27, 2009 Page 8 o SLBTS may keep its ADP - licensed treatment facilities at 112 40th Street and 3960 -3980 Seashore — these are on the same block per the definition. All facilities where SLBTS currently has more than one building per block shall be relocated to an address where there would be One Building per Block and none across a bordering street after the move. There are three exceptions to this "None Across a Bordering Street" standard in the Zoning Agreement: o 122 45th Street and 4500 -04 Seashore; o 6110 Oceanfront and 6111 Ocean Front; and o 4711 Seashore and 4816 Seashore. Note: in previous discussions, SLBTS proposed keeping its facility at 4800 Seashore. In the meantime, it entered into a lease with the property owner at 4816 Seashore. In order to increase the distance between SLBTS' facilities, the City agreed with SLBTS to have SLBTS close 4800 Seashore and maintain 4816 Seashore. IV — DISTANCING FROM CERTAIN OTHER USES Under the Zoning Agreement, SLBTS' facilities: Must be located more than 1,000' away from public elementary schools and large State - licensed day care facilities in the Peninsula Zone and which are open as of the date of the Zoning Agreement. May not be on streets immediately adjacent to the tot lots at 36t" Street and at Marina Park. V — NO PAROLEES Under the Zoning Agreement, SLBTS may not accept, house, or treat any person who is a parolee from the California Department of Corrections or its equivalent in any other State or the Federal Bureau of Prisons in any of its facilities located in the City. VI — CONTROLS ON SECOND HAND SMOKE Under the Zoning Agreement, SLBTS must make good faith efforts to prevent second hand smoke from leaving any of its facilities in a manner that significantly affects occupants of neighboring residents. These efforts may include: The designation of a smoking area at each site, with a device to mitigate or disperse secondhand smoke; An active smoking cessation program made available to all clients; and Addressing the complaints of directly- adjacent neighbors when secondhand smoke comes from an SLBTS facility. SLBTS must also direct clients or residents to avoid littering cigarette butts on the ground, floor, deck, sidewalk, gutter, or street and direct clients not to use tobacco on beaches, boardwalks, and piers consistent with City prohibitions against smoking in those areas. Zoning Agreement with Sober Living by the Sea January 27, 2009 Page 9 VII — OPERATIONAL IMPROVEMENTS Under the Zoning Agreement, SLBTS shall: • Continue operating policies which ensure compliance with City codes on trash receptacles and enclosures; • Have off - street parking consistent with City's existing residential standards; • Implement a series of Route Plans as shown in an exhibit (Exhibit F of the Zoning Agreement) for transport of clients and staff to and from SLBTS' facilities. • Limit business deliveries to its residential facilities to weekday common business hours. • Maintain Quiet Hours consisting of the following: • Quiet on Sundays through Thursdays between 10:00 p.m. and 7:00 a.m.; and • Quiet on Fridays through Saturdays between 11:00 p.m. and 7:00 a.m. • Dispose of medical waste, if any, in the proper manner in accordance with the Municipal Code (NBMC §6.04.120). • Establish and maintain a 24 -hour hotline for residents' inquiries, concerns. • Participate in a larger Stakeholders Group led by the City to address neighborhood complaints and concerns. VIII — VILLA WAY PROPERTY Within the Zoning Agreement (see Section 6), the City and SLBTS discuss SLBTS' operations in Cannery Village. The City issued a letter to SLBTS dated August 25, 2006 regarding SLBTS' leased office and meeting facility at 2811 Villa Way. SLBTS has done almost all it needed to do within that letter, except complete improvements to a parking lot. The City believes that SLBTS has been attempting in good faith to complete these improvements, but site constraints and a Regional Board permit have delayed paving the lot. The Zoning Agreement incorporates the August 26, 2006 letter and says that, in the event the parking lot is not completed by July 1, 2009, SLBTS agrees to purchase thirteen master parking passes to better accommodate the 2811 Villa Way parking needs. The City believes that the optimal solution here is to have SLBTS complete the Villa Way parking lot — on- street parking is an unacceptable option in the long -term. IX — OTHER Under the Zoning Agreement (see Exhibit B, Section C 1 -3), SLBTS is entitled to work with the City to change aspects of the Zoning Agreement IF the City enters into another Zoning Agreement that is materially more favorable than this Zoning Agreement in only three areas: 1. An allowance of a percentage increase greater in bed counts greater than 30% above the number operated by SLBTS at the time of the Agreement; 2. Dispersion (i.e. one building per block and no facilities on streets facing each other) more concentrated than for SLBTS under the terms of this Agreement; and 3. Distancing from public elementary schools and large licensed day care facilities that is less than for SLBTS under the terms of this Agreement. The Zoning Agreement also describes the City's intent that the City will adhere to and recognize how California Health and Safety Code (HSC) §11834.23 directs that the City 0 Zoning Agreement with Sober Living by the Sea January 27, 2009 Page 10 must apply the same building, fire, and other related codes to facilities with six or fewer clients as it does for any single - family residential property provided that: 1. HSC §11834.23 is not repealed or otherwise invalidated by an appellate court decision; 2. HSC §11834.23 is being applied to a single family dwelling unit (including condominiums) or a duplex; 3. SLBTS does not place non - ambulatory residents in their facilities; and 4. SLBTS does not accept referrals or placements within a SLBTS home for protective social care and supervision services by any governmental agency. Finally, the Zoning Agreement describes how SLBTS, if the Agreement is executed, is not required to go through the Use Permit process for its facilities subject to the Use Permit requirements. PUBLIC BENEFITS OF THE ZONING AGREEMENT The Zoning Agreement itself speaks to the public benefits that will result if it is enacted. Before summarizing these, it is important to clarify why the City's legal counsel chose to use a Zoning Agreement to achieve the public benefits. Legal Counsel Jim Markman of RWG describes the reasoning this way: While a Zoning Agreement is most often used in situations where substantial construction or development is involved, it is legally appropriate to use it here. This type of agreement is an often used mechanism to "vest" land use rights for a period of time, establish a customized solution for specific land use issues with unique characteristics, and provide public benefits to the City. It is a negotiated understanding between the City and an applicant that is supported by a detailed, formal agreement. An important advantage of this type of agreement is that it provides a means for the City to achieve greater regulation and benefits than would otherwise be available through existing regulations. In this case, for example, the City will be able to: Limit the number of state - licensed licensed six and under facilities operated by SLBTS now and into the future — this is a major benefit not achievable under the use permit process or the City's group residential uses ordinance (due to State law's prohibition on regulating these specific uses). Voluntarily achieve dispersion on a per block basis and from designated land uses — more benefits not achievable within the City's group residential uses ordinance (including the dispersion within the ordinance would have made it subject to claims of facial discrimination). Voluntarily achieve bed caps — again, a benefit not achievable within the City's group residential uses ordinance (including bed caps within the ordinance also would have made it subject to claims of facial discrimination). a Zoning Agreement W& Sober Living by the Sea January 27, 2009 Page t i The Zoning Agreement, in Section 2, speaks to the following specific public benefits: 1. A reduction of and limitation on the size of the city's largest residential care operation, including a limitation on ADP - licensed "6 and Under" facilities; 2. Dispersal of treatment facilities and sober homes to reduce an over concentration in the Peninsula Zone; 3. The placement of operational controls on treatment facilities and sober homes to reduce what residents perceive as negative impacts in certain neighborhoods. 4. Settlement of a pending lawsuit, including attorneys fees; 5. Preservation of the City's Group Residential Uses ordinance, allowing its implementation to go forward into the Use Permit Process; and 6. Likely termination of a related federal administrative proceeding with US HUD and the US Department of Justice. PUBLIC NOTICE City staff mailed notice (see Attachment C) of the City Council's hearing to all persons owning property within 300' of any property subject to the Zoning Agreement. Staff also posted notice of this hearing at each property location and printed notice of the hearing in the Daily Pilot. This staff report and the two agreements were placed on the City's website on or before Friday, January 23, 2009. CEQA Consideration and adoption of the Zoning Agreement has been determined to be categorically exempt under the requirements of the California Environmental Quality Act (CEQA) under Class 1 (Existing Facilities). This class of projects has been determined not to have a significant effect on the environment and is exempt from the provisions of CEQA. This activity is also covered by the general rule that CEQA applies only to projects that have the potential for causing a significant effect on the environment (Section 15061(b)(3) of the CEQA Guidelines). it can be seen with certainty that there is no possibility that this activity will have a significant effect on the environment and it is not subject to CEQA. PLANNING COMMISSION ACTIONS This Zoning Agreement was reviewed by the Newport Beach Planning Commission on November 20, 2008. The Planning Commission recommended approval of the Zoning Agreement (six votes in the affirmative, one against), but with the below suggestions for amendments (suggestions shown in regular font, with the suggestion's status italicized): 1. Clarify in Section 24E that the Zoning Agreement does not supersede the Settlement Agreement. This was incorporated into the final version. 2. In Section 11 A -B, the Planning Commission proposed a simpler way of describing the duration/term of the Agreement. The City discussed this with SLBTS, and proposed an alternative that was amenable to Special Counsel and SLBTS. 3. In Exhibit B (Section 8), the Planning Commission asked that SLBTS' client transport vehicles be clearly marked, to allow the City (and the public) to see that they are Zoning Agreement with Sober Living by the Sea January 27, 2009 Page 12 complying with the Route Plans. This change is not included in the final document, in part to protect the privacy rights of SLBTS patients. 4. In Exhibit B (Section A7), the Planning Commission suggested a change to clarify that the section only allows the eight homes to violate /be exceptions to the "one building per block" rule and the "no buildings on opposite sides of the same street" rule. This was accepted and is included. 5. In Exhibit B, Section C1 (Most Favored Nation), the Planning Commission pointed out that the version they reviewed miswrote what would happen if the City allowed another operator a more advantageous position regarding concentration. Therefore, this was accepted and corrected. 6. "Occupied" versus "provided" beds. In Exhibit B (Section A14), the Planning Commission asked that the Agreement refer to beds "occupied" instead of beds provided. This was not acceptable to staff, Special Counsel, and SLBTS, so we did not accept it in this final version — in part due to the inability to enforce nightly bed - checks determining which are occupied and which are not 7. The Planning Commission asked that the City be certain that the "Facilities" definition in the Zoning Agreement's section 1 D includes ALL group residential uses that SLBTS may choose to operate. Special Counsel reviewed this text, and believes that the current "Facilities° definition in the Title 20, which is referred to by the Agreement, does include all types of group residential uses. 8. The Planning Commission asked that SLBTS provide some warranty as to how many beds SLBTS currently provides. Because the Agreement supersedes any current count, the current terms within the agreement were deemed appropriate by Special Counsel. 9. Notification. The Planning Commission asked that, when SLBTS has done all it needs to with the 156 beds on the Peninsula and is adding the up to 48 beds outside of the Peninsula Zone, SLBTS should be required to notify the City. We added language reflecting this suggestion in Exhibit B (A.4.). PROCESS FROM HERE This item is the City Council's first formal public review of the proposed Zoning Agreement, but its contents have been aired previously on multiple occasions. The City held a Study Session on July 8, 2008, and participated in at least three neighborhood meetings to discuss the Agreement. At this point, because the Agreement is adopted by Ordinance, the City must hold a public hearing for public review and comment on the "First Reading" of the ordinance. If passed to Second Reading, the item will go on the Council's calendar for Tuesday, February 10, 2009 or a later date to be determined by the City Council. la Zoning Agreement with Sober Living by the Sea January 27, 2009 Page 13 Prepared and Submitted by: VA V Dave Kiff, Assistant City Manager Attachments: A — Settlement Agreement (without the Zoning Agreement as an attachment to save paper) B — Ordinance 2009 -_, including the Zoning Implementation and Public Benefit Agreement (with the Zoning Agreement's attachments) C — Public Notice D — List of SLBTS Properties subject to the Agreements i3 Zoning Agreement with Sober Living by the Sea January 27, 2009 Page 14 Attachment A Settlement Agreement 14 SETTLEMENT AND RELEASE AGREEMENT This Settlement and Release Agreement ( "Agreement" hereinafter) dated November 2008 is entered into by and among Sober Living by the Sea, Inc. ( "Sober Living" hereinafter), F.G., an anonymously named individual, J.W., an anonymously named individual S.B., an anonymously named individual, and B.H., an anonymously named individual (hereinafter, Sober Living and said four anonymously named individuals are collectively referred to as "Claimants ") and the City of Newport Beach, a charter city and municipal corporation, and Edward D. Selich, Leslie J. Daigle, Michael L. Henn, Steven Rosansky, Don Webb, Nancy Gardner and Keith D. Curry, in their capacity as members of City's City Council (collectively referred to as "City" hereinafter). Claimants and City are collectively referred to as "Parties." This Agreement is entered into in reference to the following Recitals which Parties agree are accurate to the best of their knowledge or belief. RECITALS A. On February 13, 2007, City's Council adopted its Resolution No. 2007 -10, initiating an amendment to Title 20 of City's Municipal Code to revise land use classifications and definitions related to group residential uses. B. On April 24, 2007, City's Council adopted its Ordinance 2007 -8 which imposed a temporary moratorium on the establishment of most new group residential uses and directed the City's Planning Department, in cooperation with the City Attorney, to analyze the extent and effectiveness of regulatory controls affecting group residential uses. C. The period of the moratorium referred to in Recital B above was extended by City's Council's Ordinance Nos. 2007 -10 and 2007 -16 and was for the most part superseded by the provisions of Ordinance No. 2008 -05 discussed below. D. On January 8, 2008, City's Council conducted a public hearing on a proposed ordinance modifying City's code provisions regulating group residential uses in the City and, thereafter, conducted first reading of Ordinance No. 2008 -05. E. On January 22, 2008, City's Council passed Ordinance No. 2008 -05, which, among other things, included provisions requiring then current operators of certain residential care facilities (defined in the Ordinance) in R -1, R -1.5 and R -2 Zones to obtain use permits to continue those operations at those locations or seek alternate forms of relief provided in the Ordinance or abate those operations within defined time periods. F. Sober Living is a California Corporation and an indirect wholiy -owned subsidiary of CRC Health Group, Inc., a Delaware Corporation. G. City of Newport Beach is a municipal corporation and Charter City under the laws of the State of California. H. At the time of the passage of City's Ordinance No. 2008 -05 Sober Living operated alcoholism and drug abuse treatment and recovery facilities licensed by the California Department of Alcohol and Drug Programs ( "ADP ") (the "Licensed Facilities ") and non - treatment residential facilities not required to be licensed ( "Sober Living Homes "). The ADP - licensed treatment facilities are hereinafter referred to as Licensed Facilities and the non - licensed non - treatment facilities are referred to as Sober Living Homes. Sober Living was operating these 'S Settlement Agreement Page 2 of 13 Licensed Facilities and Sober Living Homes in residential and Specific Plan zones in that area of City described as the Peninsula, Lido Isle, West Newport and Newport Shores (the "Peninsula Zone" as shown on Exhibit A). Sober Living had the capacity to house 238 clients in that area at one time during 2007. "Facility" or "Facilities" means a residential unit used or occupied by persons in recovery from alcoholism and or drug abuse. Facilities may be "Licensed Facilities" or "Sober Living Homes." As used in this Agreement, all Facilities constitute "residential care facility" uses within the context of the City's zoning ordinance. 1. On February 22, 2008, Claimants filed an action entitled Sober Living By The Sea, Inc., et al. v. City of Newport Beach, a municipal corporation, et at, United States District Court, Central District of California, Case No. SACV08 -00200 JVS (RNBx) ( "the Action" hereinafter), asserting, among other things, that Ordinance No. 2008 -05 discriminated against Claimants on its face, violated State of California and federal housing laws and monetarily damaged Sober Living's property interests. City has denied and continues to deny all such assertions and allegations and has asserted and continues to assert that Ordinance No. 2008- 05 is not discriminatory and does not violate any state or federal law. J. In the context of the Action, Claimants filed a motion for the issuance of a preliminary injunction precluding City from applying the provisions of Ordinance 2008 -05 to Claimants. That motion was granted in part and denied in part,. Claimants have filed a notice of appeal pertaining to that portion of the Court's ruling denying their motion for a preliminary injunction. K. Sober Living has filed with City and there are now pending nineteen (19) use permit applications seeking to continue operations of some of its Facilities. L. Sober Living also filed a complaint with the U.S. Department of Housing and Urban Development, asserting among other things, that Ordinance No. 2008 -05 violates federal housing laws ( "H.U.D. Complaint" hereinafter). City has responded by denying all such allegations and providing H.U.D. with materials pertaining to the passage of Ordinance No, 2008 -05. The H.U.D. Complaint has been forwarded to the United States Department of Justice for further action. M. The Parties have engaged in a mediation process concerning the circumstances described hereinabove and, as a result thereof, now desire to resolve all of the issues raised in the Action and the H.U.D. Complaint and enter into this Agreement, to FINALLY, FULLY, COMPREHENSIVELY AND CONCLUSIVELY settle the Action and to request of the Department of Justice that no further action be taken on the H.U.D. Complaint as well as all underlying and related contentions and allegations, by and through the passage of an ordinance which would approve a Zoning Implementation and Public Benefit Agreement ( "Zoning Agreement" hereinafter) substantially identical to that document attached hereto as Exhibit B. The Parties understand that the approval of the Zoning Agreement is subject to the: (i) Conduct of public hearings required by law and the open and unbiased application of City's police powers to its Planning Commission's and its Council's consideration of that approval; the (ii) Referendum power of the City's electorate, and a (ii) Legal challenge by any interested party. 16 Settlement Agreement Page 3 of 13 N, This Agreement permits Sober Living to operate up to 156 beds for Licensed Facilities or Sober Living Homes in the Peninsula Zone and, upon dispersion of the 156 beds per the Zoning Agreement up to an additional 48 beds of such facilities in those areas of the city outside of the Peninsula Zone and zoned for multi - family residential purposes or any other zones permitting multiple residential use pursuant to the Zoning Agreement. O. Sober Living's operations of the aforesaid Licensed Facilities and Sober Living Homes are to be governed by the Zoning Agreement, when it becomes effective. NOW, THEREFORE, in consideration of the above Recitals, covenants and agreements therein, the Parties agree as follows: SETTLEMENT DEFINITIONS. As used herein, the term "Claims" means all claims, charges, liabilities, damages, obligations, costs, expenses (including without limitation attorneys' fees), rights of action and causes of action of any kind, legal or equitable, whether known or unknown, anticipated or unanticipated, past, present or future, contingent or fixed, existing, claimed to exist or which may hereafter exist under the United States Constitution, the California Constitution, applicable common law, contract, tort or other federal, state, local, or municipal law or regulation, relating in any way to the facts and circumstances that give rise to the Action and the H.U.D. Complaint, whether said facts and circumstances occurred prior to or after the filing of the Action or the H.U.D. Complaint. 2. REPRESENTATIONS AND WARRANTIES. A. Each party hereby represents and warrants that: (i) It has the power and authority to enter this Agreement and the attached Zoning Agreement. (ii) None of the Claims released hereunder have been in the past or will in the future be assigned, conveyed, or transferred in any fashion to any other person and/or entity. B. The Claimants hereby agree that they shall indemnify and defend and hold the City and its elected and appointed officials, boards, commissions, officers, agents, attorneys, representative, and employees, harmless from any and all liability, loss, expense, damage, or claims which may arise directly or indirectly from or in connection with any allegation that the warranties and representations made in this section are false and /or for the breach of any of the terms and conditions of this section. C. City hereby agrees that it shall indemnify and defend and hold harmless Claimants and their officers, agents, attorneys, representatives and employees harmless from any and all liability, claims, expense, damage, or claims which may arise directly or indirectly from or in connection with any obligation that the warranties and registrations made by City on their side are false andlor for the breach of any of the terms and conditions of this section. 11 Settlement Agreement Page 4 of 13 D. Nothing herein shall be deemed as a waiver or release of the warranties, representations, rights and obligations as set forth in this section. 3. TERMS OF SETTLEMENT. A. City Obligations. (i) Nothing in this Agreement is intended to or shall have the lawful effect of contracting away the City's zoning authority or any other aspect of the City's police power. City Staff and the City Council have previously reviewed the terms and conditions of the Zoning Agreement, and have concluded that pursuant to the State law and the City Municipal Code, City Staff may lawfully present the Zoning Agreement to the City's Planning Commission and City Council for approval or disapproval, subject to duly noticed hearings. City Staff has further preliminarily concluded that no CEQA analysis shall be required to be completed prior to the City considering approval of the Zoning Agreement. (ii) The City shall schedule public hearings on the ordinance which, if adopted, would approve the Zoning Agreement. If the City Council fails to approve the ordinance within thirty (30) days following conclusion of the public hearings thereon, this Agreement shall be of no further force or effect on the thirty -first (31") day. (ii) At City's sole and absolute discretion, City shall timely file a Notice of Determination, Notice of Exemption, or other appropriate CEQA notice if the ordinance approving the Zoning Agreement is passed, and shall pay the cost of any environmental assessment, negative declaration or environmental impact report that is determined to be required. B. Claimants' Obligations. (i) Claimants and each of Claimants' agents shall not oppose the City's approval of the Zoning Agreement and shall support, both verbally and in writing, if requested by the City, the City's approval of the Zoning Agreement ( "Support Covenant "). (ii) Claimants shall not file any lawsuits, administrative appeals pursuant to the City's Municipal Code, or take any other action whatsoever, in whatever shape or form, to challenge, appeal, or otherwise seek to influence in any respect, approval of the Zoning Agreement, with the sole exception of the Support Covenant as set forth in the immediate preceding Paragraph 3B(i), unless it is necessary to support or defend the validity of the Zoning Agreement or this Agreement. (iii) Claimants shall notify HUD and DOJ in writing that the lawsuit has been stayed pending the processing of a potential settlement. C. General Obligations of All Parties. The Parties will use their best efforts and cooperate as necessary in performing and implementing this Agreement in good faith. 94 Settlement Agreement Page 5 of 13 4. GENERAL RELEASE. A. General Release and Discharge of Claims by Claimants. Upon the Effective Date of this Agreement, Claimants, and each of them, for themselves and all of their predecessors, successors, assigns, representatives, attorneys, employees, officers, and agents, do hereby fully and forever release and discharge the City, and all of its predecessors, successors, assigns, representatives, attorneys, agents, elective and appointive council members, council boards, commissions, commissioners, officers, employees (hereinafter collectively all persons and entities will be referred to as "City Released Persons "), of and from any and all actions, Claims, demands, rights, damages, costs, litigation expenses, attorneys fees, expert fees, consultant fees, other fees, interest, lost profits and earnings, diminution in the value of the business, loss of past, current, future and subsequent business and patronage, the value of the leasehold interest, the loss of goodwill, any inverse condemnation claims, any claims for the taking of property, any other damages, costs or expenses arising from any and all actions of the City Released Persons and compensation of any nature whatsoever, which claimants have or may hereafter accrue, including without limitation, any and all known and unknown, foreseen and unforeseen claim, damage and injury, relating to, or in any way, directly or indirectly, involving or arising out of any facts or circumstances related to the Action or the H.U.D. Complaint. B. General Release and Discharge of Claims by City. Upon the Effective Date of this Agreement, City, and each of them, for themselves and all of their predecessors, successors, assigns, representatives, attorneys, employees, officers, and agents, elective and appointive council members, council boards, commissions, and commissioners do hereby fully and forever release and discharge the Claimants, and all of their predecessors, successors, assigns, representatives, attorneys, agents, officers, directors and employees (hereinafter collectively all persons and entities will be referred to as 'Released Persons'), of and from any and all actions, claims, demands, rights, damages, costs, litigation expenses, attorneys fees, expert fees, consultant fees, other fees, interest, lost profits and earnings, any other damages, costs of expenses arising from any and all actions of the Released Persons and compensation of any nature whatsoever, which they have or may hereafter accrue, including without limitation, any and all known and unknown, foreseen and unforeseen claim, damage and injury, relating to, or in any way, directly or indirectly, involving or arising out of any facts or circumstances related to the Action or the H.U.D. Complaint C. Waiver of Claims. It is the intention of the Parties, in executing this Agreement and receiving the consideration recited herein, that this Agreement will be effective as a full and final accord and satisfaction and general release of all Claims, debts, damages, liabilities, demands, obligations, costs, expenses, disputes, actions or causes of action, that the Parties may have against each other by reason of any acts, circumstances or transactions relating in any way to the Action or the H.U.D. Complaint and occurring before the date of this Agreement. In furtherance of this intention, the Parties hereby acknowledge that they are familiar with California Civil Code §1542 and that they hereby expressly waive the protection of that section, which provides as follows: A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR. 19 Settlement Agreement Page 6 of 13 The Parties each waive and relinquish any right or benefit that they have or may have under California Civil Code §1542. That is, the Parties shall not invoke the benefits of California Civil Code §1542, or any such similar law, to prosecute any Claims released hereunder. In connection with such waiver and agreement, each of the Parties acknowledge that they are aware that they or their attorney may hereafter discover Claims or facts or legal theories in addition to or different from those which they know or believe to exist with respect to the Action or H.U.D. Complaint, but that it is the intention hereby to fully, finally, and forever settle and release all of the Claims, known or unknown, suspected or unsuspected, which do now exist, may exist, or heretofore have existed by reason of any acts, circumstances, facts, events, or transactions relating in any way to the Action or the H.U.D. Complaint before the date of this Agreement. It is expressly acknowledged and understood by the Parties to this Agreement that the Parties separately bargained for the foregoing waiver of the provisions of §1542 of the California Civil Code. The Parties consent that this release shall be given full force and effect in accordance with each and all of the express terms and provisions, including those terms and provisions related to such unknown and unsuspected claims, demands, and causes of action relating in any way to or arising out of the facts and circumstances underlying or connected with the Action or the H.U.D. Complaint. D. Representations and Warranties. Each Party represents and warrants to the other that, except as otherwise expressly provided in this Agreement, they are not relying on any representation whatsoever, whether express or implied, including without limitation, representations of fact or opinion made by or on behalf of the Parties herein. 5. DISMISSAL OF THE ACTION AND WITHDRAWAL OF SUPPORT OF THE H.U.D. COMPLAINT. Within five business days after the Effective Date, as defined below, Sober Living shall take the following actions: A. Sober Living shall dismiss the Action in its entirety without prejudice and shall dismiss or abandon without prejudice the appeal taken from the order partially granting and partially denying Sober Living's motion for a preliminary injunction; and B. Sober Living shall, affirmatively request that H.U.D. and the United States Department of Justice take no further action based upon the HUD complaint. Should a federal process continue thereafter, Sober Living shall participate therein only to the extent required by law. In the event that litigation is instituted to challenge this Agreement or the Zoning Agreement on a date subsequent to the Effective Date and that litigation results in this Agreement or the Zoning Agreement being finally held to be invalid by the entry of Judgment by a Court of competent jurisdiction after the exhaustion of all available appeals and petitions, Sober Living shall be afforded the opportunity within 90 days of the date of entry of that Judgment to refile the Action, to begin fully participating in the processing of the H.U.D. Complaint or file a new complaint with H.U.D. and to recommence the processing of use permit applications without being impeded in any way by the passage of time from the date of City's Council's approval of this Agreement to the expiration of said 90 day period. ao Settlement Agreement Page 7 of 13 6. EFFECTIVE DATE OF AGREEMENT This Agreement shall not become effective, and except as set forth in Subsection C of this Section 6 and Section 7, neither party shall have any rights or obligations hereunder until the "Effective Date," A. Effective Date of this Agreement: This Agreement shall become effective on: I. The 91" day after the City Council's passage of the ordinance approving this Agreement, or ii. If a referendum or other elective challenge to the ordinance approving this Agreement qualifies to be placed on the ballot, then on the 31' day after the City Clerk certifies that the referendum or other elective challenge has failed to pass, or iii. If litigation is instituted to challenge this Agreement prior to the Effective Date, established in accordance with 6.A i. and ii above, then on the 31'' day after the litigation is terminated, the time for appeal has expired, and the legal challenge has been unsuccessful. B. Terre. The term of this Agreement (the "Term") shall commence on the Effective Date and shall expire at the conclusion of the 26" year thereafter. C. Stay of Ordinance 2008-05 Pending Effective Date. Prior to the effective date of the ordinance adopting this Agreement, or that date upon which it becomes clear that there shall be no Effective Date, whichever is later, the Operator's use permit process shall be tolled, and the City shall not otherwise enforce the provisions of Ordinance 2008 -5. 7. ACTIONS PENDING EFFECTIVENESS OF THIS AGREEMENT The Parties agree that prior to the Effective Date, the Parties shall jointly seek to maintain stays of the Action, both in the Appellate and District courts. During this same period of time: () Claimants shall not take any action to affirmatively cause the HUD Complaint to be prosecuted; (ii) City shall not enforce any provision of Ordinance No. 2008.05 against Claimants; (ii) Sober Living shall agree to abide by the terms of Exhibit B to the Zoning Agreement within 30 days after execution of this Agreement. 8. MISCELLANEOUS PROVISIONS. A. This Agreement shall be governed and interpreted in accordance with the laws of the State of California. Each party hereto agrees that the laws of the State of California shall apply and that any action brought hereunder shall be subject to the laws and statutes of the State of California except as expressly provided for in the Zoning Agreement. The venue of any legal challenge to this Agreement or the Zoning Agreement shall be the Superior Court of California for Orange County or the United States District Court for the Central District of California —Southern Division. B Integrated Agreement. This Agreement and the exhibits attached hereto contain the entire understanding and agreement between the Parties. No other representations, covenants, undertakings, or other prior or contemporaneous agreements, oral or written, Settlement Agreement Page 8 of 13 respecting such matters, which are not specifically incorporated herein, shall be deemed in any way to exist or bind any of the Parties hereto. The Parties hereto acknowledge that this Agreement has been executed without reliance upon any such promise, representation, or warranty not contained herein. C. Modification. No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by all of the Parties. No waiverof any of the provisions of this Agreement shall be deemed to constitute a waiver of any other provision whether or not similar, nor shall any waiver constitute a continuing waiver. No waiver shall be binding unless executed in writing by the Parties, D. Binding on Successors. This Agreement and the covenants and conditions contained herein shall obligate, bind, extend to and inure to the benefit of the Parties and each of their respective successors in interest, including, but not limited to, their administrators, executors, owners, partners, officers, directors, shareholders, legal representatives, assignees, attorneys, successors, and agents or employees of the Parties hereto. Prior to assigning any rights or obligations Claimants have with respect to this Agreement and the Zoning Agreement to a third party, Claimants shall obtain written confirmation and deliver to City that such assignee shall be bound by the terms of this Agreement and that such Assignee shall also be entitled to receive the benefits of this Agreement and the Zoning Agreement. E. Rearesentation. The Parties affirmatively represent that they have been represented by counsel of their own choosing. They have read this Agreement and have had the terms used herein and the consequences thereof explained by their attorneys of choice. F. Construction. This Agreement shall not be construed against the Party preparing it, but shall be construed as if all Parties jointly prepared this Agreement. Any uncertainty and ambiguity shall not be interpreted against any one Party. Language in all parts of the Agreement shall be in all cases construed as a whole according to its plain meaning. G. Attorneys' Fees and Costs. All attorneys' fees, expert fees and costs insured through the date of this Agreement that relate in any way to the Action, the H.U.D. Complaint or the Zoning Agreement, the negotiation or preparation of this Agreement or any action called for herein, shall be bome by the respective Parties and each Party agrees to waive any claim, or claims, against any of the other Parties for the reimbursement of all, or any portion of said fees or costs. Should suit be brought to enforce or interpret any part of this Agreement, the prevailing party shall be entitled to recover attorneys' fees and related costs. H. No Admission of Liability. This Agreement and the releases contained herein and the consideration referred to herein are done to save litigation expense and to effect the compromise and settlement of claims and defenses which are denied, disputed, and contested. Nothing contained herein shall be construed as an admission by any Party of any liability of any kind to any other Party. The Parties agree that each Party expressly denies that it is in any way liable or indebted to any other Party and no person interpreting this Agreement shall be able to infer that any Party has engaged in any conduct giving rise to liability to any other Party. I. Gender Neutral. Whenever in this Agreement the context may so require, the masculine, feminine and neutral genders shall be each deemed to include the other and the singular and the plural shall refer to one another. Settlement Agreement Page 9 of 13 J. Counterparts. This Agreement may be executed in duplicate Counterparts, each of which shall be deemed an original and all of which shall constitute an agreement to be effective as of the date of signing. Further, signatures transmitted and memorialized by facsimile shall be deemed to have the same weight and effect as an original signature. The Parties may agree that an original signature will be substituted at some later time for any facsimile signature. K. Captions and Interpretations. The paragraph titles and captions are inserted in this Agreement as a matter of convenience. As such, the paragraph titles or captions are not intended to define or describe the scope of any provision. L. Invalid Clause May Be Severed. If any provision, clause, or part of the Agreement is adjudged illegal, invalid or unenforceable, the balance of this Agreement shall remain in full force and effect. M. Survival of Warranties and Representatives. The warranties and representations made in this Agreement are deemed to survive the execution of this Agreement. N. Conflict. In the event of conflict between this Agreement and the attaching Zoning Agreement, the latter shall prevail. O. BY SIGNING THIS AGREEMENT, THE PARTIES CERTIFY THAT THEY HAVE READ IT, THAT THEY HAVE CONSULTED WITH THEIR LEGAL COUNSEL ABOUT ITS EFFECT, AND THAT THEY FULLY UNDERSTAND IT. IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed as of the date first above written and their attorneys have indicated their approval as to form by their respective signatures in the appropriate spaces below. [SIGNATURES ON FOLLOWING PAGES] �3 Settlement Agreement Page 10 of 13 CLAIMANTS: SOBER LftNY TH E SEA, INC. By: Name KAVIw 906e- f,6f16F /riNAA141AL OFF /cdX Title Dated: Y)11+ cs BURKE, WILLIAMS AND SORENSEN LLP ATTORNEYS FOR CLAIMANTS ON BEHALF OF F.G., J.W., S.B. AND B.H. By: Richa d ercian A Settlement Agreement Page 11 of 13 CITY OF NEWPORT BEACH, CITY COUNCIL By: Edward D. Selich, Mayor Dated: ATTEST: By: LaVonne Harkless, City Clerk Dated: APPROVED AS TO FORM: CITY OF NEWPORT BEACH M Datec 29 mes L. Markman, Special Counsel for the City of Newport Beach Dated: z Settlement Agreement Page 12 of 13 Exhibit A Depiction and Description of "Peninsula Zone" Depiction of Peninsula Zone: The lands within the yellow boundary as shown below, Description of Peninsula Zone: Starting at the mouth of the Santa Ana River: • The land area southerly of the Newport and Seminouk Sloughs known as Newport Shores, and • The land coastward of Pacific Coast Highway to Newport Boulevard known as Balboa Coves, West Newport Beach, Lido Sands, and Newport Island; and • The land southerly of a line extending along the Federal Navigational Channel between Newport Boulevard and the Newport Harbor Jetty, known as the Balboa Peninsula, Lido Peninsula, Lido Isle, Bay Island, and Cannery Village; and • Southward on Newport Boulevard about 50 feet to Lower Newport Bay; and • All lands southerly of Lower Newport Bay between Newport Boulevard down the Federal Navigational Channel within the Lower Bay, inclusive of Lido Isle and Bay Island and inclusive of the Balboa Peninsula. 0 - l„ � Mar(tillE � r� r LWo r Y Bai�ea les6uid u.: aF.Aledgeti, Description of Peninsula Zone: Starting at the mouth of the Santa Ana River: • The land area southerly of the Newport and Seminouk Sloughs known as Newport Shores, and • The land coastward of Pacific Coast Highway to Newport Boulevard known as Balboa Coves, West Newport Beach, Lido Sands, and Newport Island; and • The land southerly of a line extending along the Federal Navigational Channel between Newport Boulevard and the Newport Harbor Jetty, known as the Balboa Peninsula, Lido Peninsula, Lido Isle, Bay Island, and Cannery Village; and • Southward on Newport Boulevard about 50 feet to Lower Newport Bay; and • All lands southerly of Lower Newport Bay between Newport Boulevard down the Federal Navigational Channel within the Lower Bay, inclusive of Lido Isle and Bay Island and inclusive of the Balboa Peninsula. 0 Settlement Agreement Page 13 of 13 Exhibit B Zoning Implementation and Public Benefit Agreement P ORDINANCE NO. 2009- AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, APPROVING DEVELOPMENT AGREEMENT NO. 2008 -005 (ZONING IMPLEMENTATION AND PUBLIC BENEFIT AGREEMENT BETWEEN THE CITY OF NEWPORT BEACH AND SOBER LIVING BY THE SEA, INC.) WHEREAS, when adopting Ordinance No. 2008 -005 on January 22, 2008, the City Council of the City of Newport Beach found that the City has a disproportionately high number of licensed and unlicensed residential group uses serving the disabled recovering from drug or alcohol use; and WHEREAS, when adopting Ordinance No. 2008 -005, evidence was presented of increasing numbers of residential care facilities that do not house permanent residents and operate in a manner similar to boarding house or institutional uses rather than as single housekeeping units; and WHEREAS, when adopting Ordinance No. 2008 -005, evidence was presented that certain areas of the City, including West Newport and the central Balboa Peninsula have significantly higher numbers of group residential uses than other parts of the City and other parts of the state, and that secondary impacts from group residential uses change the residential character of a neighborhood and are not beneficial to persons in recovery as they attempt to re- integrate their new sober lifestyle into typical society; and WHEREAS, the City has prohibited all other group residential uses that are not single housekeeping units from establishing in residential zones since 1997; and WHEREAS, the City recognizes and agrees that the federal Fair Housing Act and other state and federal laws provide that individuals recovering from drug and alcohol addiction are deemed disabled and are entitled to housing opportunities. As such, Ordinance 2008 -005 provides for applicants representing the disabled or the disabled themselves to apply for reasonable accommodation from all or portions of the Ordinance to ensure that housing opportunities for the disabled, continue to be provided in all residential areas of the Newport Beach community; and WHEREAS, the City desires to maintain zoning provisions benefiting disabled persons by allowing disabled persons to live in residential districts, while forbidding all other group residential uses in residential districts, but desires to ensure that the uses are consistent with the residential character of neighborhoods and do not recreate an institutional environment that would defeat the purpose of 0 community -based care; and WHEREAS, to achieve these goals the City and Sober Living by the Sea, Inc., have drafted a Zoning Implementation and Public Benefit Agreement ( "Agreement ") to authorize, define and limit the future operations of Sober Living by the Sea, Inc., within the City; and WHEREAS, on November 20, 2008, the Planning Commission held a duly noticed public hearing in the City Hall Council Chambers, 3300 Newport Boulevard, Newport Beach, California, at which time the Planning Commission considered the Agreement. A notice of time, place, and purpose of the meeting was duly given in accordance with the Municipal Code. Evidence, both written and oral, was presented to and considered by the Planning Commission at this meeting, including the evidence and arguments submitted by the City staff and all interested parties; and WHEREAS, consideration and adoption of the Agreement has been determined to be categorically exempt under the requirements of the California Environmental Quality Act (CEQA) under Class 1 (Existing Facilities). This class of projects has been determined not to have a significant effect on the environment and is exempt from the provisions of CEQA. This activity is also covered by the general rule that CEQA applies only to projects that have the potential for causing a significant effect on the environment (Section 15061 [b][3] of the CEQA Guidelines). It can be seen with certainty that there is no possibility that this activity will have a significant effect on the environment and it is not subject to CEQA; and WHEREAS, the Planning Commission recommended that the City Council adopt, with amendments, Development Agreement 2008 -005 (Zoning Implementation and Public Benefit Agreement between the City of Newport Beach and Sober Living by the Sea). The amendments recommended by the Planning Commission included suggestions as to the term of the agreement, van routes, notification to the City when SLBTS adds a facility, "occupied" versus "provided" beds, and more. The City Council's ad hoc committee on group residential uses agreed with some of the Commission's suggestions, and disagreed with others, giving staff and special counsel direction to discuss the Commission's suggestions with SLBTS. The Agreement under consideration today reflects those discussions. NOW THEREFORE, the City Council of the City of Newport Beach, California, HEREBY ORDAINS as follows: SECTION 1: Development Agreement No. 2008 -005 shall be adopted as provided in Exhibit "A". SECTION 2: The Mayor shall sign and the City Clerk shall attest to the passage of this ordinance. The City Clerk shall cause the same to be published 2 a9 once in the official newspaper of the City, and it shall be effective thirty (30) days after its adoption. SECTION 3: This ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach, held on the 27th day of January, 2009, and adopted on the _ day of , 2009, by the following vote, to wit: AYES, COUNCILMEMBERS NOES, COUNCILMEMBERS ABSENT COUNCILMEMBERS MAYOR ATTEST: CITY CLERK 1 3 ZONING IMPLEMENTATION AND PUBLIC BENEFIT AGREEMENT (Pursuant to Callfomfa Govemment Code § §65864- 65869.5) This Zoning Implementation and Public Benefit Agreement (the "Zoning Agreement ") is entered into on 2008, by and between the CITY OF NEWPORT BEACH, a charter city ( "City") and SOBER LIVING BY THE SEA, INC., a California corporation, Comprehensive Addiction Programs, Inc., a Delaware Corporation, CRC Health Corporation, a Delaware Corporation, CRC Health Group, Inc., a Delaware Corporation (collectively referred to as "Operator'). City and Operator and Operator's Affiliates as herein defined, are sometimes collectively referred to in the Zoning Agreement as the "Parties" and individually as a "Party." RECITALS A. The City Council hereby finds this Zoning Agreement is consistent with provisions of California Government Code §65867, and the City of Newport Beach Municipal Code Chapter 15.45 and the City's General Plan. B. On November 20, 2008, City's Planning Commission held a public hearing on this Zoning Agreement, made findings and determinations with respect to this Zoning Agreement, and recommended to the City Council that the City Council approve this Zoning Agreement. C. On 2008, the City Council also held a public hearing on this Zoning Agreement and considered the Planning Commission's recommendations and the testimony and information submitted by City staff, Operator and members of the public. On 2008, pursuant to the applicable state law (California Government Code § §65864 - 65869.5) and local law (City of Newport Beach Municipal Code Chapter 15.45), the City Council passed its Ordinance No. 2008 -_, finding this Zoning Agreement to be consistent with the City of Newport Beach General Plan and approving this Zoning Agreement. D. This Zoning Agreement allows Sober Living a vested right to: (i) operate 156 beds of recovery facilities within the area they are currently operating, and as more particularly defined in Exhibit D attached (the "Peninsula Zone "); and (it) up to an additional 48 beds outside of the Peninsula Zone and within zones accommodating multi - family residential uses, in compliance with the temps of this Zoning Agreement. E. This Zoning Agreement also memorializes uses granted to and conditions agreed to by Sober Living on August 25, 2006 regarding its administrative offices at 2811 Villa Way (Exhibit C attached). AGREEMENT NOW, THEREFORE, City and Operator agree as follows: 1. Definitions. The following terms when used in this Zoning Agreement shall have the meanings set forth below: 3�- Zoning Agreement Page 2 of 27 A. "Affiliate" shall mean a person or entity that is directly or indirectly controlled by Operator. B. "City Council" shall mean the governing body of City. C,. "Control" (including the terms "controlling," "controlled by," and "under common control with') shall mean the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a person, whether through the ownership of voting securities, by contract, or otherwise. D, "Facility" (or "Facilities ") is a residential unit used or occupied by persons in recovery from alcoholism and or drug abuse. Facilities may be "Licensed Facilities" or "Sober Living Homes." As used in this Agreement, all Facilities constitute "residential care facility" uses within the context of the City's zoning ordinance. E. "General Plan" shall mean City's 2006 General Plan adopted by the City Council on July 25, 2006, by Resolution No. 2006 -76. The Land Use Plan of the Land Use Element of the General Plan was approved by City voters in a general election on November 7, 2006. F. "Licensed Facilities" shall mean alcoholism and drug abuse recovery facilities licensed by the California Department of Alcohol and Drug Programs ("ADP "). G. "Party" or "Parties" shall mean either City or Operator or any of Operator's Affiliates or both, as determined by the context. H. "Property" is described in Exhibit A and consists of a list of addresses of properties currently operated by Operator as Licensed Facilities and Sober Living Homes in R- 1, R -1'/2 , R -2 and multi - family residential ( "MFR ") and certain Speck Plan District zones within City. "Property" includes the rights to operate all of those properties as well as other properties not presently identifiable which may be utilized by Operator as Facilities hereunder. I. "Sober Living Homes" shall mean alcoholism and drug abuse recovery facilities not licensed by ADP. J. "Term" shall have the meaning ascribed in Section 11 of this Zoning Agreement. 2. Sionfiicant Public Benefits. The significant public benefits that this Zoning Agreement provides include, but are not limited to: A. Settlement and avoidance of costs of a pending lawsuit, including attorneys fees; B. Preservation of the regulatory ordinance which was the subject matter of the lawsuit, C. Requested termination of a related federal administrative proceeding, D. A reduction of and limitation on the size of a residential care operation in the City, including a limitation on 6 or under Licensed Facilities, E. Dispersal of Licensed Facilities and Saber Living Homes to reduce the concentration thereof; Zoning Agreement Page 3 of 27 F. The placement of operational controls on said facilities to reduce perceived negative impacts on residential neighborhoods. 3. General Plan Consistency and Zoning Implementation. This Zoning Agreement and the regulations applied herein to the Property ( "Applicable Regulations" hereinafter) will cause City's zoning and other land use regulations for the Property to remain consistent with the General Plan. 4. Warranties and Representations. Both parties represent that they have legal authority to enter into this Zoning Agreement and the remainder of the agreements and documents that comprise the settlement documents herein, and that the necessary authorizations have been obtained, by resolution or other action, and that the persons whose names appear as signatories below were authorized to accept this Zoning Agreement on behalf of the Party under whose name they signed. A. Each Party specifically represents and warrants that it has the legal authority to enter into a Zoning Agreement of the type and kind herein, and, B. The City represents and warrants that this Zoning Agreement and the regulations applied to the Property (ihe Applicable Regulations ") are: I. Consistent with the General Plan for the City and any Specific Plans that apply to the area in which any portion of the Property is located, and ii. Consistent with the Local Coastal Land Use Plan ( "CLUP) for the City of Newport Beach and that the CLUP has been approved by the California Coastal Commission. 5. Operation of Property: Applicable Regulations. Other than as expressly set forth in this Zoning Agreement, during the Term of this Zoning Agreement, the terms and conditions concerning the operation of the Property, including but not limited to the permitted uses and density and intensity of use and the location of buildings involved shall be those set forth in the "Applicable Regulations" delineated in Exhibit B and as set forth in Section 6 below. During the term of this Zoning Agreement, City shall not prevent operation of the Property that is in compliance with the Applicable Regulations and all other applicable laws and regulations specified in Section 9 hereof. 6. Operator's Vested Rights. During the Term of this Zoning Agreement, except to the extent City reserves its discretion as expressly set forth in this Zoning Agreement or in the Applicable Regulations and all other applicable laws and regulations specified in Section 9 hereof, Operator shall have the vested right, within the limits and constraints of the Applicable Regulations, to conduct its operation of Licensed Facilities and Sober Living Homes on the Property. The letter from City to Operator dated August 25, 2006 regarding Operator's leased office and meeting facility at 2811 Villa Way ( "Villa Way ") is incorporated herein by reference as Exhibit C. City acknowledges that Operator has complied with all conditions set out in Exhibit C except for Paragraph 12 relating to parking. City acknowledges Operator has been exercising due diligence to complete the parking lot which is unfinished due to circumstances beyond Operator's control. Operator agrees to use good faith efforts to get the parking lot at Villa Way completed. In the event meetings are no longer held at Villa Way, the currently permitted non- conforming right to use said property as an office use shall continue until termination of this Zoning Agreement. The Operator's leased property at 505 29'h Street, commonly known as 33 Zoning Agreement Page 4 of 27 'The Victorian," is a legal nonconforming single family residence and shall be treated as a Licensed Facility. In the event Ordinance No. 2008 -5 is repealed by action of the City Council or the electorate or if said Ordinance is declared invalid or unenforceable by a court of competent jurisdiction, then the Operator will no longer be bound by the provision of Paragraph 6 of Exhibit B as to the limit of one Licensed Facility or Sober Living Home per block in the event other operators open facilities on the same block. 7. Police Power. In all respects not provided for in this Zoning Agreement, City shall retain full rights to exercise City's police power to regulate the operation of Residential Care Facilities on the Property provided such powers are applied consistently with the provisions of state law and Section C2 of Exhibit B to this Zoning Agreement. 8. No Conflicting Enactments. During the Term of this Zoning Agreement City shall not apply to the Property any City- adopted ordinance, policy, rule, regulation, or other measure relating to the operation of Facilities on the Property to the extent it conflicts with this Zoning Agreement. 9. Reservations of Authority. Notwithstanding any provisions set forth in this Zoning Agreement to the contrary, the laws, rules, regulations, and official policies set forth in this Section 9 shall apply to and govern the development and operations of the Property: A. Procedural Regulations. Then current procedural regulations relating to hearing bodies, petitions, applications, notices, findings, records, hearings, reports, recommendations, appeals, and any other matter of procedure shall apply to the Property, provided that they are adopted and applied City-wide or to all other properties consistent with the provision of Section C2 of Exhibit B. B. Consistent City Regulations. City ordinances, resolutions, regulations, and official policies governing development and building which do not conflict with the Applicable Regulations, or with the provisions of Section C2 of Exhibit B where Operator has consented in writing to the regulations, shall apply to the Property. C. Public Health and Safety. Any City ordinance, regulation, rule, regulation, program, or official policy, that is necessary to protect persons on the Property or in the immediate community from conditions dangerous to their health or safety shall apply to the Property, consistent with Section C2 of Exhibit B. 10. No Agency. Neither Party is acting as the agent of the other in any respect, and each Party is an independent contracting entity with respect to the terms, covenants, and conditions contained in this Zoning Agreement. This Zoning Agreement forms no partnership, joint venture, or other association of any kind. The only relationship between the Parties is that of a government entity regulating the operation of private property by the owner or lessee of the property. 11. Effective Date: Term. This Zoning Agreement shall not become effective, and except as set forth in Subsection C of this Section 11, neither party shall have any rights or obligations hereunder, until the "Effective Date." A. Effective Date of This Zoning Agreement : This Zoning Agreement shall become effective on: 34 Zoning Agreement Page 5 of 27 I. The 91st day following the City Council's passage of the ordinance approving this Zoning Agreement, or ii. If a referendum or other elective challenge to the ordinance approving this Zoning Agreement qualifies to be placed on the ballot, then on the 31st day after the City Clerk certifies that the referendum or other elective challenge has failed to pass, or iii. If litigation is instituted to challenge this Zoning Agreement prior to the Effective Date established in accordance with Section 11 A. I. and ii above, then on the 31st day after the litigation is terminated, the time for appeal has expired, and the legal challenge has been unsuccessful. B. Term. The term of this Zoning Agreement (the "Term°) shall commence on the Effective Date and shall expire at the conclusion of the 25th year thereafter. However in no event shall the term of this Zoning Agreement exceed thirty (30) years after its execution. C. Stay of Ordinance 2008 -05 Pending Effective Date. Prior to the effective date of the ordinance adopting this Zoning Agreement, or that date upon which it becomes clear that there shall be no Effective Date, whichever is later, the Operator's use permit process shall be tolled, and the City shall not otherwise enforce the provisions of Ordinance 2008 -5. 12. Amendment or Cancellation of Zoning Agreement. Other than modifications of this Zoning Agreement under Section 9C of this Zoning Agreement, this Zoning Agreement may be amended or canceled in whole or in part only by mutual written and executed consent of the Parties in compliance with California Government Code §65868 and City of Newport Beach Municipal Code §15.45.060. 13. Enforcement. Unless amended or canceled as provided in Section 12 of this Zoning Agreement, or modified or suspended pursuant to California Government Code §65869.5, this Zoning Agreement is enforceable by either Party despite any change in any applicable general or specific plan, zoning, subdivision, or building regulation or other applicable ordinance or regulation adopted by City (including by City's electorate) that purports to apply to any or all of the Property. 14. Periodic Review of Compliance. City and Operator shall each comply in good faith with the terms of this Zoning Agreement, The Parties shall review this Zoning Agreement at least once every 12 months from the Effective Date for good faith compliance with its terms consistent with California Government Code §65865 and §65865.1 and City of Newport Beach Municipal Code §15.45.070. At the reviews, Operator shall demonstrate its good faith compliance with this Zoning Agreement and shall document the current status of its operation. Operator also agrees to furnish evidence of good faith compliance as City may require in the reasonable exercise of its discretion and after reasonable notice to Operator. On or before December 31 and June 30 of each year during the Term of this Zoning Agreement, Sober Living shall submit a Compliance Review Report, whose template is attached as Exhibit G. The requirement of good faith compliance shall be met upon the submittal to the City of an accurate form showing information relating to facility locations and bed counts. City shall have the right to audit the accuracy of the form through on -site inspections of the Facilities at mutually - agreeable tines and during regular business hours. 1 Zoning Agreement Page 8 or 27 15. Events of Default A. Default by Operator. Pursuant to California Government Code §65865.1, if City determines that Operator has not complied in good faith with Operator's obligations pursuant to this Zoning Agreement, City shall by written notice to Operator specify the manner in which Operator has failed to comply and state the steps Operator must take to bring Itself into compliance. If Operator does not commence compliance within 30 days after receipt of the written notice from City specifying the manner in which Operator has failed to comply, and diligently pursue steps to achieve full compliance, then Operator shall be deemed to be in default under the terms of this Zoning Agreement. City may then seek available remedies as provided in Section 15.0 of this Zoning Agreement. B. Default by City. If City has not complied with any of its obligations and limitations under this Zoning Agreement, Operator shall by written notice to City specify the manner in which City has failed to comply and state the steps necessary for City to bring itself into compliance. If City does not commence compliance within 30 days after receipt of the written notice from Operator specifying the manner in which City has failed to comply, and diligently pursue steps to achieve full compliance, then City shall be deemed to be in default under the terms of this Zoning Agreement. Operator may then seek a specific performance or similar equitable remedy as provided in Section 15.0 of this Zoning Agreement C. Speck Performance and Damages Remedies. The Parties acknowledge that remedies at law generally are inadequate and that specific performance is appropriate for the enforcement of this Zoning Agreement The remedy of spec performance or, in the alternative, a writ of mandate, shall be the sole and exclusive remedy available to either Party in the event of the default or alleged default by the other. Prior to exercising such a remedy, the Party seeking to do so shall submit the matter to nonbinding arbitration through JAMS or another arbitrator mutually acceptable. D. Recovery of Legal Expenses by Prevailing Party in Any Action. In any judicial proceeding (Action") between the Parties that seeks to enforce the provisions of this Zoning Agreement, the prevailing Party shall recover all of its actual and reasonable costs and expenses. These costs and expenses include expert witness fees, attorneys' fees, and costs of investigation and preparation before initiation of the Action. The right to recover these costs and expenses shall accrue upon initiation of the Action. 16. Cooperation. Each Party covenants to take all reasonable actions and execute all documents that may be necessary to achieve the purposes and objectives of this Zoning Agreement. 17, Force Maieure. Neither Party shall be deemed to be in default where failure or delay in performance of any of its obligations under this Zoning Agreement is caused, through no fault of the Party whose performance is prevented or delayed, by floods, earthquakes, other acts of God, fires, war, riots or similar hostilities, strikes or other labor difficulties, state or federal regulations, or court actions. 18. Third Party Legal Challenge. If a third party brings a legal action challenging the validity or enforceability of any provision of this Zoning Agreement or the Applicable Regulations or the manner in which the ordinance approving this Zoning Agreement was processed and approved, including the application of the California Environmental Quality Act to that process, ( "Third Parry Legal Challenge ") the parties shall defend the Third Party Legal Challenge jointly, 36 Zoning Agreement Page 7 of 27 and each party shall be responsible for its legal expenses incurred in connection with the Third Party Legal Challenge. 19. Right to Assign. Operator shall have the right to transfer or assign the rights and obligations contained herein in whole to any person, partnership, joint venture, firm, or corporation at any time during the Term of this Zoning Agreement without the consent of City. Upon the effective date of any such transfer or assignment of the Property, the transferor- assignor shall notify City of the name and address of the transferee. Any assignment of this Zoning Agreement must be pursuant to a sale or transfer of Operator's rights in the entirety of the Property. Any sale or transfer of the Property shall include the assignment and assumption of the rights, duties, and obligations arising from this Zoning Agreement to the transferee with respect to all of the Property. Operator shall no longer be obligated under this Zoning Agreement for the Property if Operator is not in default under this Zoning Agreement at the time of the sale or transfer. 20. Zoning Agreement Binding on Successors and Assigns. The burdens of this Zoning Agreement are binding upon, and the benefits of this Zoning Agreement shall inure to, all successors in interest of the Parties to this Zoning Agreement. 21. Estoppel Certificate. At any time, either Party may deliver written notice to the other Party requesting that the Party certify in writing that, to the best of its knowledge: A. This Zoning Agreement is in full force and effect and is binding on the Party; B. This Zoning Agreement has not been amended or modified either orally or in writing. If this Zoning Agreement has been amended, the Party providing the certification shall identifythe amendments; and C. The requesting Party is not in default in the performance of its obligations under this Zoning Agreement. If the requesting Party is in default, the other Party must describe the nature of the default. The requesting party shall execute and return the certificate within sixty (60) days following receipt. Any assignee of a Party's rights and obligations hereunder, as referred to in this Section 21, shall be entitled in rely on the certificate. 22. Further Actions and Instruments. Each Party shall cooperate with and provide reasonable assistance to the other Party to the extent consistent with and necessary to implement this Zoning Agreement. Upon the request of a Party at any time, the other Party shall promptly execute, with acknowledgment or affidavit K reasonably required, and file or record the required instruments and writings and take any actions as may be reasonably necessary to implement this Zoning Agreement or to evidence or consummate the transactions contemplated by this Zoning Agreement. 23. Notices. Any notice or demand that shall be required or permitted by law or any provision of this Zoning Agreement shall be in writing. If the notice or demand will be served upon a Party, it either shall be personally delivered to the Party; deposited in the United States mail, certified, return receipt requested, and postage prepaid; or delivered by a reliable courier service that provides a receipt showing date and time of delivery with courier charges prepaid. The notice or demand shall be addressed as follows: 3-7 Zoning Agreement Page 8 of 27 To City: City of Newport Beach 3300 Newport Boulevard Post Office Box 1768 Newport Beach, California 92663 -3884 Attention: City Manager Fax 949 -644 -3020 With a copy to: City Attorney City of Newport Beach 3300 Newport Boulevard Post Office Box 1768 Newport Beach, California 92663 -3884 To Operator: Sober Living by the Sea, Inc. 2811 Villa Way Newport Beach, California 92663 Attn: Executive Director With a copy to: CRC Health Group, Inc. 2400 Stevens Creek Boulevard, Suite 600 Cupertino, California 95014 Attn: General Counsel Fax: 415-358 -8444 Either Party may change the address stated in this Section 23 by notice to the other Party in the manner provided in this Section 23, and notices shall be addressed and submitted to the new address. Notice shall be deemed to be delivered upon the earlier of: (a) the date received; or (b) three business days after deposit in the mail as provided above. 24. Rules of Construction and Miscellaneous Terms. A. Rules of Construction. The singular includes the plural; the masculine and neuter include the feminine; "shall" is mandatory; "may" is permissive. B. Time is of the Essence. Time is of the essence regarding each provision of this Zoning Agreement in which time is an element. C. Waiver. Failure by a Party to insist upon the strict performance of any of the provisions of this Zoning Agreement by the other Party, and failure by a Party to exercise its rights upon a default by the other Party, shall not constitute a waiver of that Party's right to demand strict compliance by the other Party in the future. D. Counterparts. This Zoning Agreement may be executed in two or more counterparts, each of which shall be identical and may be introduced in evidence or used for any other purpose without any other counterpart, but all of which shall together constitute one and the same Zoning Agreement. E. Entire Agreement. Except for the Settlement Agreement, this Zoning Agreement constitutes the entire agreement and supersedes all prior agreements and understandings, both written and oral, between the Parties with respect to the subject matter addressed in this Zoning Agreement. 36 Zoning Agreement Page 9 of 27 F. Construction. This Zoning Agreement has been drafted after extensive negotiation and revision. Both City and Operator are sophisticated parties who were represented by independent counsel throughout the negotiations. City and Operator each agree and acknowledge that the terms of this Zoning Agreement are fair and reasonable, taking into account their respective purposes, terms, and conditions. This Zoning Agreement shall therefore be construed as a whole consistent with its fair meaning, and no principle or presumption of contract construction or interpretation shall be used to construe the whole or any part of this Zoning Agreement in favor of or against either party. G. No Third Party Beneficiaries. The only parties to this Zoning Agreement are City and Operator. This Zoning Agreement does not involve any third party beneficiaries, and it is not intended and shall not be construed to benefit or be enforceable by any other person or entity. H. Applicable Law and Venue. This Zoning Agreement shall be construed and enforced consistent with the internal laws of the State of California. Any action arising under this Zoning Agreement or brought by any Party for the purpose of enforcing, construing, or determining the validity of any provision of this Zoning Agreement shall be filed and tried in the Superior Court of the County of Orange, State of California, or the United States District Court for the Central District of California. The Parties waive all provisions of law providing for the removal or change of venue to any other court. I. Section Headings. All section headings and subheadings are inserted for convenience only and shall not affect construction or interpretation of this Zoning Agreement. J. Authority to Execute. The persons executing this Zoning Agreement warrant and represent that they have the authority to execute this Zoning Agreement on behalf of the entity for which they are executing this Zoning Agreement. They further warrant and represent that they have the authority to bind their respective Party to the performance of its obligations under this Zoning Agreement. CITY: CITY OF NEWPORT BEACH By: Name Title: Title OPERATOR: SOBER LIVING BY THE SEA, INC. By: Name Title: Title m Zoning Agreement • • erl Title: CITY ATTORNEY ATTEST: 0 Title: CITY CLERK ND Zoning Agreement Page 10 of 27 Exhibit A List of SLBTS Facilities qI Zoning Agreement Page 11 of 27 Exhibit B Applicable Regulations A. Number and Location of Facilities. Number and location of facilities which may be utilized as Licensed Facilities or Sober Living Homes. 1. On and after the Effective Date of the ordinance adopting this Zoning Agreement, there shall be no more than 204 beds occupied in the City at any time by persons who are patients, clients or customers of Sober Living, whether contained within Licensed Facilities or Sober Living Homes. More than one such facility may be operated in a single building. 2. On and after the effective date of the ordinance adopting this Agreement, there shall be no more than 156 beds occupied in total in those parts of the City referred to as the Peninsula, Lido Isle, West Newport and Newport Shores (the "Peninsula Zone") as depicted in Exhibit D at any time by persons who are patients, clients or customers of Sober Living, whether contained within Residential Care Facilities, General, Residential Care Facilities, Small Licensed or Residential Care Facilities, Small Unlicensed as defined in §20.05.030 of the Newport Beach Municipal Code. 3. On and after the effective date of the ordinance adopting this Agreement, there shall be no more than 12 beds (12 of the 156 described in Section A2 above) occupied Lido Isle at any time by persons who are patients, clients or customers of Sober Living, whether contained within Residential Care Facilities, General, Residential Care Facilities, Small Licensed or Residential Care Facilities, Small Unlicensed as defined in §20.03.030 of the Newport Beach Munidpal Code. 4, On and after the effective date of the ordinance adopting this Agreement, all beds in the City in addition to those provided for in Sections A.2. and A.3. of this Exhibit B occupied at any time by persons who are patients, clients or customers of Sober Living, whether contained within Residential Care Facilities, General, Residential Care Facilities, Small Licensed or Residential Care Facilities, Small Unlicensed as defined in §20.03.030 of the Newport Beach Municipal Code shall be located only in zones accommodating multi - family residential uses outside of the Peninsula Zone. Sober Living shall provide the City with the address of any new Facility resulting from placing beds per this section within thirty (30) days of establishing the Facility. 5. On and after the Effective Date of the ordinance adopting this Agreement, Sober Living shaft locate all of its newly established facilities utilized as Licensed Facilities or Sober Living Homes so that only one building shall contain such facilities, whether operated by Sober Living or any other person or entity, is located either on a block in the City or across a bordering street. To facilitate transfers of properties to attain or maintain this "one building per block" standard, Sober Living may, for not more than 120 days, hold leases for two properties on one block if the properties are involved in a Facility transfer. For purposes of this Agreement, a block is an area bounded by four streets (not alleys). 6, Except as provided in Section A.7. below, within thirty (30) months of the Effective Date of the ordinanoe adopting this Agreement, Sober Living shall relocate its presently operating facilities as necessary to comply with the criterion set forth in Section A.S. above as to its presently operating Licensed Facilities and Sober Living Homes. All such relocations must be to sites which have no other Facility, whether operated by Sober Living or q�- Zoning Agreement Page 12 of 27 any other person or entity, either on the block to which the facility is relocated or across a bordering street. 7. Notwithstanding the provisions of Section A.5 above, Sober Living may continue to operate Facilities at the following addresses during the term of this Agreement 112 40th Street and 3960 -3980 Seashore (on the same block); `. 122 45th Street and 45004504 Seashore(across a bordering street); r 6110 Oceanfront and 6111 Ocean Front (across a bordering streetfalley); and 4711 Seashore and 4816 Seashore (across a border ng street and down a block). 8. Sober Living shall not establish any Facility pursuant to Section 4 of this Exhibit B unless and until Sober Living has fully and timely complied with the relocation requirements set forth in Section 6 of this Exhibit B. 9. Sober Living shall not establish or operate a Facility on a parcel of property which has a lot line located within 1,000 feet of any NMUSD elementary school or the large commercial State - licensed day care facility listed on Exhibit E. 10. Sober Living shall not establish or operate a Facility at any location which is adjacent to the 36th Street Tot Lot or the Marina Park Tot Lot so long as those tot lots are so utilized. B. Operational Regulations. During the term hereof, Sober Living shall comply with all of the following operational criteria: 1. Sober Living shall not provide any services to or house any parolee or parolees from the California Department of Corrections or its equivalent in any other State or the Federal Bureau of Prisons in any of its Facilities located in the City. 2. Any and all medical waste generated through the operation of a Sober Living Homes or Licensed Facility shall be disposed of in accordance with all laws and best industry standards and practices. 3. Sober Living shall comply with City code provisions pertaining to trash enclosures at all of its Sober Living Homes or Licensed Facilities. 4. Smoking and Tobacco Products. (a) Sober Living shall make good faith efforts to prevent second hand smoke from leaving any of its Facilities in a manner that significantly affects occupants of neighboring residents in the use and enjoyment of their properties. These efforts may include, but are not limited to: j The designation of a smoking area at each site, with a device to mitigate or disperse secondhand smoke; .'. An active smoking cessation program made available to all clients; Addressing the complaints of directly- adjacent neighbors when secondhand smoke comes from an SLBTS facility. 113 Zoning Agreement Page 13 of 27 (b) Apply a policy directing clients or residents to avoid littering cigarette butts on the ground, floor, deck, sidewalk, gutter, or street. (c) Apply a policy reminding clients not to use tobacco on beaches, boardwalks, and piers consistent with City prohibitions against smoking in those areas. 5. Sober Living shall comply with all City code provisions requiring off street parking in residential zones. 6. Sober Living shall establish, provide public notice of and continuously operate a 24 hour per day hotline for receiving inquiries and /or complaints in reference to its operation of its Facilities in the City. 7. Sober Living shall apply the following Quiet Hours to its patients, clients and customers occupying beds in all Facilities which Sober Living operates in the City. During these Quiet Hours, all residents will be inside except during emergencies: • Sunday through Thursday - 10 pm to 7 am; • Friday through Saturday -11 pm to 7 am. 8. Sober Living shall use good faith efforts to implement the Route Plans for transport of its staff, residents, clients and customers which Sober Living submitted to the City as part of its applications for Use Permits on file with City's staff as of July, 2008. A true and correct copy of those Route Plans are attached as Exhibit F. Short-term interruptions, such as medical emergencies or street maintenance which are beyond Sober Living's control, are allowable modifications to the Route Plans. 9. Sober Living shall accept deliveries of goods and services to the Residential Care Facilities which it operates in the City only during customary times for such deliveries of goods and services to occur in residential areas of the City and in accordance with any City regulation adopted which controls times for such deliveries on a citywide basis applicable to all residential properties. 10. Sober Living shall participate in the activities of any stakeholder committee or group established by the City to address complaints and concerns of residents of the City regarding the operation of Residential Care Facilities in the City. 11. Sober Living shall maintain its present policy not to allow more than two (2) clients per bedroom in the facilities unless the size of the structure warrants a larger occupancy for any single bedroom. C. General Constraints on Regulation. 1. Most Favored Nation. If the City enters into an agreement with any operator of a Sober Living Home or Licensed Facility in the City which, includes one or more of the below three provisions and provides a materially more favorable regulatory treatment to that operator than is afforded to Sober Living hereunder, the more favorable regulatory provision or provisions shall then apply to Sober Living and shall be deemed to supersede any conflicting provision or provisions contained in this Zoning Agreement. Approvals within the Group Residential Uses Ny Zoning Agreement Page 14 of 27 Ordinance's Use Permit process do not constitute agreements for the purposes of this paragraph. The three provisions are: (a) An allowance of a percentage increase greater in bed counts greater than 30% above the number operated by the Operator at the time of the agreement; (b) Dispersion (i.e. one building per block and no facilities on streets facing each other) more concentrated than for SLBTS under the terms of this Agreement; and (c) Distancing from public elementary schools and large licensed day care that is less than for SLBTS under the terms of this Agreement. 2. The City shall respect and adhere to the exemption in California Health and Safety Code §11834.23 that directs that the City apply the same building, fire, and other related codes to Facilities with six or fewer clients as it does for any single - family residential property provided that: (a) The exemption is not repealed or otherwise invalidated by an appellate court decision; (b) The exemption is being applied to a single family dwelling unit (including condominiums) or a duplex (c) SLBTS does not place non - ambulatory residents in their facilities; and (d) SLBTS does not accept referrals or placements within a SLBTS home for protective social care and supervision services by any governmental agency. 3. This Agreement, and, more specifically, these Applicable Regulations obviate the need for and shall supersede the processing or issuance of any Use Permit or Use Permits concerning Sober Living's operations in the City. 05 CITY OF NEWPORT BEACH " PLANNING DEPARTMENT Patricia L. Temple, Director August 25, 2006 Bill Swiney Sober Living by the Sea 2811 Villa Way Newport Beach, California 92663 RE: Sober Living by the Sea — 2809, 2811, 2813 Villa Way, Newport Beach Dear Bill: I am in receipt of your correspondence dated July 21, 2006. In your correspondence, you discuss a proposal whereby Sober Living by the Sea ( "Sober Living ") would modify its use of the property located at 2809 -2813 Villa Way ( "Sober Living Facility") so that it is no longer designated as a social club, as defined by Newport Beach Municipal Code Section 20.05.040. 1 have carefully reviewed your proposal and have determined that Sober Living would not be designated as a social club if it was operated in the following manner: 1, The "large conference room," designated on the floor plans submitted on August 4, 2006 ("Plans"}, must be reduced so that the maximum occupancy for this room is approximately 20 persons. Two cubicle type offices, the design of which will need to be approved by the Planning Director in writing, will need to be constructed in the large conference room. 2, The "small conference room," designated on the Plans, must be reduced so that the maximum occupancy for this room is approximately 20 persons. A wall will need to be constructed across the back of the small conference room, as indicated on the marked up Plans which are attached hereto. The construction of the wall must comply with all laws and regulations including, but not limited to, the Building Code. 3. A revised set of plans showing the wall in the small conference room and the uses for each area of the property will need to be submitted to and approved in writing by the Planning Director. After approval of the Plans, Sober Living must use each of the areas for the designated use and obtain the Planning Director's approval in writing prior to any change in use. 4. The area designated as the "covered patio," and other outdoor areas, designated on the Plans may not be used by Sober Living clients except as provided hereafter. Clients attending meetings scheduled at the Sober Living Facility may assemble in the covered patio area, or other outdoor areas, 10 minutes prior to a meeting and 10 minutes after a meeting. Between the hours of 7:00 a.m. and 8:30 a.m., clients that attend meetings scheduled at the Sober Living Facility, may be transported by van to any other location provided that they do not assemble in the covered patio area, or other 3300 Newport Boulevard - Post Office Box 1768 • Newport Beach, California 92658 -8915 Telephone: (949) 644 -3200 • Fax: (949) 644 -3229 • www.city.newport- beach,ca.us V outdoor area, for more than 10 minutes after a meeting ( "Clients Transported by Van "), Between the hours of 1:00 p.m. and 3:00 p.m., clients that Clients Transported by Van may be dropped back off at the Sober Living Facility provided that they: (a) do not arrive at the Sober Living Facility more than 10 minutes before their next scheduled meeting; or (b) that they disperse within 10 minutes after being dropped off at the Sober Living .........._._.Facility . . . 5. An average of 10 meetings per week may be held at the Sober Living Facility. However, no more than 12 meetings may be held in any one week and no more than 20 people may attend any meeting. Up to two meetings may be held concurrently. The basis for determining the average number of meetings will be based on a 4 week period. On an ongoing basis, Sober Living will maintain records for the past 12 month period that document the number of meetings held per week and the number of persons in attendance. These records will be verified by a representative of Sober Living and will be made available to the Planning Director upon request. 6. No client enrolled in any of the Sober Living programs that meet at the Sober Living Facility will be allowed to operate a motor vehicle. 7. All large meetings, in excess of 20 persons, will be held at some other location (any other locations used in the City shall be approved for large assembly use). 8. - The hours of operation for conducting meetings and picking . up prescriptions at the Sober Living Facility will be from 6:30 a.m. to 8:30 p.m. Clients picking up or consuming prescription medicine at the Sober Living Facility will be required to leave the Sober Living Facility within 10 minutes after they have picked up or consumed their medication. 9. Any nurse at the Sober Living Facility shall only be on site Monday through Friday from 7:00 am to 5:00 pm and on Saturday from 8:00 am to noon. There shall be no nurse at the Sober Living Facility on Sundays. 10. Two staff employees shall be allowed to remain at the Sober Living Facility until 11:00 pm, 7 days a week to receive calls. 11. Except as provided herein, clients will not be allowed to assemble at the Sober Living Facility for the purpose of being transported to any other location. 12. Sober Living will provide and maintain 13 off -site parking spaces at the lot directly across the street from the Sober Living Facility and will park vehicles associated with the Sober Living Facility at the lot rather than on City streets or public parking lots. For instance, Sober Living currently uses six vans. These vans would be parked on the lot rather than on City streets in the surrounding neighborhood or the City parking lot. 13. Sober Living will direct clients and ensure that clients riding bikes to the Sober Living Facility access the facility by a route approved by the Planning Director in writing. 14. Sober living will provide trash and cigarette disposal containers and inform their clients that they are not to dispose of litter on City streets or adjoining properties. NS In summary, if Sober Living operated in conformance with the foregoing conditions, it would be my determination that Sober Living would not be defined as "social club ". However, please be advised that it is my opinion that any deviation from the foregoing conditions or any additional assembly at the Sober Living Facility would change the 'category of use:. Please contact me at your earliest convenience so we can discuss a timeline for Sober Living to implement the foregoing changes. Simply put, I cannot make a determination that Sober Living is operating in conformance with the Municipal Code until the above - referenced changes have been made. Further, as a condition to making my determination that a use permit is no longer required, Sober Living will need to withdraw its appeal without prejudice. appreciate your continuing assistance in this matter. Very truly yours, Patricia L. Temple, Planning Director for the City of Newport Beach cc: Aaron C. Harp, Assistant City Attomey Dennis O'Neil, Esq. Enclosure: Modified Plans I�R _. _. nn1 N� M+ 14e K AF mar wYWwY 6i /N.TRwM tai I• N. tM VMM M�I4LL YY III H.wJ ;IN. rMTw ✓� wAeb�++ 1w.YS +i rIHI Hn'�gY P—q$ ---T Iqw+ wry .HY HYY'�IO ��• KT+wP W.HV My Aii Zoning Agreement Page 16 of 27 Exhibit D Depiction and Description of "Peninsula Zone' Depiction of Peninsula Zone: The lands within the yellow boundary as shown below. i t Wost ;Mwport city N Mariners Lido I," tai Nawpott 7!7 - 8s6oa blue Description of Peninsula Zone: Starting at the mouth of the Santa Ana River: • The land area southerly of the Newport and Seminouk Sloughs known as Newport Shores, and • The land coastward of Pacific Coast Highway to Newport Boulevard known as Balboa Coves, West Newport Beach, Lido Sands, and Newport Island, and • The land southerly of a line extending along the Federal Navigational Channel between Newport Boulevard and the Newport Harbor Jetty, known as the Balboa Peninsula, Lido Peninsula, Lido Isle, Bay Island, and Cannery Village; and • Southward on Newport Boulevard about 50 feet to Lower Newport Bay, and • All lands southerly of Lower Newport Bay between Newport Boulevard down the Federal Navigational Channel within the Lower Bay, inclusive of Lido Isle and Bay Island and inclusive of the Balboa Peninsula. Zoning Agreement Page 17 of 27 Exhibit E Specific Large DSS- Licensed Day Care Facilities— Peninsula Zone Facility No: 300600193 Capacity: 0044 CHRIST CHURCH BY THE SEA CHILDREN'S CENTER 1400 WEST BALBOA BOULEVARD NEWPORT BEACH, CA 5111 Zoning Agreement Page 98 of 27 Exhibit F Route Plans In the attached Route Plans, the red arrow designates arrival route, the blue arrow designates departure route. The star designates the facility location. 53 Zoning Agreement Page 19 of 27 100 Via Antibes 102 Via Antibes 208 Via Lido Scud (one triplex) The primary route of travel between Sober Living by the Sea's administrative offices in Cannery Village (2811 Villa Way) and these residential dwelling units is Lafayette, Via Lido, Via Antibes, and Via Lido Scud. Sq route of tr 'ge (28, aval betw 'arc/, 341h' Villa W, een Sober Living Street, ay) and these resi nd Seashore Dtive. 116 34th 'Street, .4 a E3 the e S a s 80ftnis 'vat dwelling unit, tr8tive offjoe s Is 320d Sweet Street, Zoning Agreement Page 21 of 27 505 29" Street The primary route of travel Cannery Village (2811 Villa Street, and Villa Way. between Sober Living by the Sea's administrative offices in Way) and these residential dwelling units is Lafayette, 291h 56 Zoning Agreement Page 22 of 27 112 4& Street, Units A and B 3960 -3980 Seashore Drive E • Zoning Agreement Page 23 of 27 1224 51h Street, Units A & B 4500 -4504 Seashore 49004828 48234815 4917 4824 4809 - 4911 4820 275 4816 4801 4906 4831 4812 - C04yy. .44900 4821 4800 .4700 ''' 1�- _ IV ... _ 4812 - 4815 231 - l�� -4625 45� 4 2 227 4801 - .1 4808 {$05 22f ✓;1 y£R" -, 7 '45074525 � {5174555` 4820 4806 4800 4709 ,. AV 0" 3� 4521 4463`- .. 4812 218 4703470/ - -.... t0 4543 4443 4804 4708 133 146 ' -" 4537 441 - -� 4441 4l # 1 4805 4718 4704 01 84 30 L 133 4510 " --- 4433440344214401445344634451 4801 4714 4700 12638 131 4508 4411 4423 4711 4700 122 123127 yS 1506 4401 4431 {419 0 ` -, 1705 4616 116 , 121 d1 13 _ ' 4406 t { �Sp' 4703 4612 115119. 128 -, 135 410 4404 4402 5 4 06 lit 131 131 406 iii -4400 6�._. �. l 7V 4605' Ilb 123 130 4{01 ^^ 7 4603 112 _ 121 I28 4313 ' 4601 , 4510J'f�� �115 133 % 20B 303 4511 YV'I, „` 131 04 20 a'' 21.3. 4210 .4505 114 123127 ..130 209 '.. 4206 1t2 l;` 212 4Z04 ' Y 44501x, a12 �`- /15321 t28 _ 207 2i k 4411 1IL 122 - 131 t06 4200 ttre t 4407 - 114 123 127 Of : 2 211 13 411d'.. _ IlOf mep fti e"' " - 4603, l 112 121 y1 110 205 49 4306.. 110 115 126 yl ` 212 p 02 a a'aS `yi'k t• t311� ili �� 122 129 6 a] 3a:i 4709 169 127 22 ; 213 �C v=` t'p 4]05 114 123 211 401D- `� -4303 112 , 111 128 207 4006 4301- 4210 _'115 14 05 2 212 3 ;� +q '• y� 4211 111 124 - 210 4002 4209 . 4200 325 204 - 213 t I E, 123 211 4203 112 121 a ii 9M ,d 4 C, J 4201 4110 115 128 205 124 212 '2.,f*'13IZrg, -6 44109 111`94 y1 lea 12/ 208 T v' . '* , =rY .2� 4103 109 f 116 123 0 z.`k slot 1111{ 121..- 1' 13 21207 5c �:o .4b"p�-4•aa* 5+'+,e. 4011 115 I1b .. E 111 ' 4009 '> 4000 122 118 131 4001 112 123129 4001 110 1 u 3915 S 111111 SS 124t8 1 P c t +* t s..iuF lyy x t 7911 109 , le 122 3939 0] �7 112j 4_ I Zs5 . 0�L+2.ef.,. 3812 - 119 " The primary route of travel between Sober Living by the Sea's administrative offices in Cannery Village (2811 Villa Way) and these residential dwelling units is along Balboa Boulevard, Seashore, 45th Street, and 44th Street. Zoning Agreement Page 24 0127 4816 Seashore. 4711 Seashore The primary route of travel between Sober Living by the Sea's administrative offices in Cannery Villy (2811 Villa Way) and these residential dwelling units is along Balboa Boulevard, 46 Street, Seashore, 51St Street, and River Avenue. Zoning Agreement Page 25 of 27 5101 River 5004 Neptune, A & B The primary route of travel between Sober Living by the Sea's administrative offices in Cannery Village (2811 Villa Way) and these residential dwelling units is along Balboa Boulevard, River Avenue, 50`h Street, Neptune, and 5151 Street. 610 Zoning Agreement Page 26 of 27 6111 Seashore 6110 West Ocean Front The primary route of travel between Sober Living by the Sea's administrative offices in Cannery Village (2811 Villa Way) and these residential dwellin� units is along Newport Boulevard, Coast Highway, Prospect, Ocean Front Alley W, 62n? and Seashore. 0 Zoning Agreement Page 27 of 27 Exhibit G Compliance Report Template (Date Report Submitted) This form covers the period of (month, day) through (month, day), 20_ During the above period, Sober Living by the Sea managed or controlled the following faciities in Newport Beach: SLBTS FACILITIES Peninsula Bed Count ADP License? Property Address Zone? (Y or N) (Y or N) Peninsula Off Peninsula 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Total Bed Count M Zoning Agreement with Sober Living by the Sea January 27, 2009 Page 18 Attachment C Public Notice 0 NOTICE OF PUBLIC HEARING ZONING IMPLEMENTATION AND PUBLIC BENEFIT AGREEMENT WITH SOBER LIVING BY THE SEA NOTICE IS HEREBY GIVEN that on Tuesday, January 27, 2009, at 7:00 p.m. or thereafter, a public hearing will be conducted in the City Council Chambers (Building A) at 3300 Newport Boulevard, Newport Beach, California. The City Council of the City of Newport Beach will consider the following application: An application for approval of a Zoning Implementation and Public Benefit Agreement ( "Agreement") between Sober Living by the Sea ( "SLBTS") and the City of Newport Beach ("City"). The Agreement entitles the operation of residential care facilities in the City while also limiting number of beds that SLBTS may operate City -wide and within West Newport, the Balboa Peninsula, and Lido Isle. The Agreement places a cap on beds in facilities otherwise not subject to City regulation under state law. The Agreement contains operational standards applicable to SLBTS' facilities. THIS PROPERTY WOULD REMAIN AS A GROUP RESIDENTIAL USE UNDER THE AGREEMENT'S TERMS This activity has been determined to be categorically exempt under the requirements of the California Environmental Quality Act (CEQA) under Class 1 (Existing Facilities). This Gass of projects has been determined not to have a significant effect on the environment and is exempt from the provisions of CEQA. This activity is also covered by the general rule that CEQA applies only to projects that have the potential for causing a significant effect on the environment (Section 15061(b)(3) of the CEQA Guidelines). It can be seen with certainty that there is no possibility that this activity will have a significant effect on the environment and it is not subject to CEQA. All interested parties may appear and present testimony in regard to this application. If you challenge this project in court, you may be limited to raising only those issues you or someone else raised at the public hearing (described in this notice) or in written correspondence delivered to the City, at, or prior to, the public hearing. The agenda, staff report, and environmental documents may be reviewed at the Planning Department, City of Newport Beach, 3300 Newport Boulevard, Newport Beach, California, 92663 or at the City of Newport Beach website at www.city.newaort- beach.ca.us on the Friday prior to the hearing. For more information, call (949) 644-3002 or e-mail dkiff(&city. newoort- beach. ca. us. Activity No.: DA2008 -005 Dave Kift, Assistant City Manager, City of Newport Beach PROPERTIES AFFECTED: 208 Via Lido Soud • 100 -102 Via Antibes • 505 29P Street • 116 34th Street, Units A & B • 112 40"' Street, Units A & B 122 45" Street, Units A & B • 5004 Neptune, Units A & B • 5101 River, Units A& B • 3960 -3980 Seashore 4500 -4504 Seashore 4711 Seashore 4816 Seashore • 6111 Seashore 6110 West Ocean Front M, Zoning Agreement with Sober Living by the Sea January 27, 2009 Page 49 Attachment D SLBTS Properties Staying Open or Closed /Closing (January 2009) (05 NOTICE OF PUBLIC HEARING ZONING AND PUBLIC BENEFIT AGREEMENT WITH SOBER LIVING BY THE SEA NOTICE IS HEREBY GIVEN that on Tuesday, January 27, 2009, at 7:00 p.m. or thereafter, a public hearing will be conducted in the City Council Chambers (Building A) at 3300 Newport Boulevard, Newport Beach, California. The City Council of the City of Newport Beach will consider the following application: An application for approval of a Zoning and Public Benefit Agreement ( "Agreement') between Sober Living By The Sea ( "SLBTS ") and the City of Newport Beach ("City"). The Agreement entitles the operation of residential care facilities in the City while also limiting number of beds that SLBTS may operate City-wide and within West Newport, the Balboa Peninsula, and Lido Isle. The Agreement places a cap on beds in facilities otherwise not subject to City regulation under state law. The Agreement contains operational standards applicable to SLBTS' facilities. This activity has been determined to be categorically exempt under the requirements of the California Environmental Quality Act (CEQA) under Class 1 (Existing Facilities). This class of projects has been determined not to have a significant effect on the environment and is exempt from the provisions of CEQA. This activity is also covered by the general rule that CEQA applies only to projects that have the potential for causing a significant effect on the environment (Section 15061(b)(3) of the CEQA Guidelines). It can be seen with certainty that there is no possibility that this activity will have a significant effect on the environment and it is not subject to CEQA. All interested parties may appear and present testimony in regard to this application. If you challenge this project in court, you may be limited to raising only those issues you or someone else raised at the public hearing (described in this notice) or in written correspondence delivered to the City, at, or prior to, the public hearing. The agenda, staff report, and environmental documents may be reviewed at the Planning Department, City of Newport Beach, 3300 Newport Boulevard, Newport Beach, California, 92663 or at the City of Newport Beach website at www.city.newport-beach.ca.us on the Friday prior to the hearing. For more information, call (949) 6443002 or e-mail dkiff @city.newport- beach.ca.us. Activity No.: DA2008 -005 Leilani 1.. Brown City Clerk NOTICE OF PUBLIC HEARING ZONING AND PUBLIC BENEFIT AGREEMENT WITH SOBER LIVING BY THE SEA NOTICE IS HEREBY GIVEN that on Tuesday, January 27, 2009, at 7:00 p.m. or thereafter, a public hearing will be conducted in the City Council Chambers (Building A) at 3300 Newport Boulevard, Newport Beach, California. The City Council of the City of Newport Beach will consider the following application: An application for approval of a Zoning and Public Benefit Agreement ( "Agreement") between Sober Living By The Sea ( "SLBTS ") and the City of Newport Beach ( "City"). The Agreement entitles the operation of residential care facilities in the City while also limiting number of beds that SLBTS may operate City-wide and within West Newport, the Balboa Peninsula, and Lido Isle. The Agreement places a cap on beds in facilities otherwise not subject to City regulation under state law. The Agreement contains operational standards applicable to SLBTS' facilities. This activity has been determined to be categorically exempt under the requirements of the California Environmental Quality Act (CEQA) under Class 1 (Existing Facilities). This class of projects has been determined not to have a significant effect on the environment and is exempt from the provisions of CEQA. This activity is also covered by the general rule that CEQA applies only to projects that have the potential for causing a significant effect on the environment (Section 15061(b)(3) of the CEQA Guidelines). It can be seen with certainty that there is no possibility that this activity will have a significant effect on the environment and it is not subject to CEQA. All interested parties may appear and present testimony in regard to this application. If you challenge this project in court, you may be limited to raising only those issues you or someone else raised at the public hearing (described in this notice) or in written correspondence delivered to the City, at, or prior to, the public hearing. The agenda, staff report, and environmental documents may be reviewed at the Planning Department, City of Newport Beach, 3300 Newport Boulevard, Newport Beach, California, 92663 or at the City of Newport Beach website at www.cily.newoort- beach.ca.us on the Friday prior to the hearing. For more information, call (949) 644 -3002 or e-mail dkiff(dcitv.newport- beach.ca.us. Activity No.: DA2008405 Leilani I. Brown City Clerk NOTICE OF PUBLIC HEARING ZONING AND PUBLIC BENEFIT AGREEMENT WITH SOBER LIVING BY THE SEA NOTICE IS HEREBY GIVEN that on Tuesday, January 27, 2009, at 7:00 p.m. or thereafter, a public hearing will be conducted in the City Council Chambers (Building A) at 3300 Newport Boulevard, Newport Beach, California. The City Council of the City of Newport Beach will consider the following application: An application for approval of a Zoning and Public Benefit Agreement ( "Agreement") between Sober Living By The Sea ( "SLBTS ") and the City of Newport Beach ( "City'). The Agreement entitles the operation of residential care facilities in the City while also limitng number of beds that SLBTS may operate City -wide and within West Newport, the Balboa Peninsula, and Lido Isle. The Agreement places a cap on beds in facilities otherwise not subject to City regulation under state law. The Agreement contains operational standards applicable to SLBTS' facilities. This activity has been determined to be categorically exempt under the requirements of the California Environmental Quality Act (CEQA) under Class 1 (Existing Facilities). This class of projects has been determined not to have a significant effect on the environment and is exempt from the provisions of CEQA. This activity is also covered by the general rule that CEQA applies only to projects that have the potential for causing a significant effect on the environment (Section 15061(bX3) of the CEQA Guidelines). It can be seen with certainty that there is no possibility that this activity will have a significant effect on the environment and it is not subject to CEQA. All interested parties may appear and present testimony in regard to this application. If you challenge this project in court, you may be limited to raising only those issues you or someone else raised at the public hearing (described in this notice) or in written correspondence delivered to the City, at, or prior to, the public hearing. The agenda, staff report, and environmental documents may be reviewed at the Planning Department, City of Newport Beach, 3300 Newport Boulevard, Newport Beach, California, 92663 or at the City of Newport Beach website at www.citv.newport- beach.ca.us on the Friday prior to the hearing. For more information, call (949) 644 -3002 or e-mail dKjff@g1tv.nemort-beach.ca.us. Activity No.: DA2008 -005 C�y(rj7(lot�N/L X' I,IUt'pW� Leilani I. Brown City Clerk Easy Peed bets 121 FeedPa r See Instruction Feature j J��S AVERY ®5160® 1 Use Ave TEMPLATE 51600 Pe for Easy Peel Feature BRITTAIN RAY FRYE FRISCH RICHARD J TRUST FINE ARTS BUCK 1544 12TH ST #203 3419 238TH VIA 410 29TH ST SANTA MONICA, CA 90401 NEWPORT BEACH, CA 92663 NEWPORT BEACH, CA 92663 BRUCEJLOW 411 29TH ST NEWPORT BEACH, CA 92663 PENINSULA RETAIL PARTNERS LLC 415 29TH ST NEWPORT BEACH, CA 92663 WEEDA KEVIN TRUST 439 30TH ST NEWPORT BEACH, CA 92663 OROZCO LOUIS TRUST 502 30TH ST NEWPORT BEACH, CA 92663 VICTOR J MICHAEL 505 30TH ST NEWPORT BEACH, CA 92663 ARNOLD D FEUERSTEIN 508 30TH ST NEWPORT BEACH, CA 92663 BANTA INVESTMENT PARTNERS LLC 517 30TH ST NEWPORT BEACH, CA 92663 MARY H WILLIAMSON 426 31ST ST NEWPORT BEACH, CA 92663 JILL S MARKOWICZ 413 29TH ST NEWPORT BEACH, CA 92663 PERSON JAMES C JR TRUST 507 29TH ST #A NEWPORT BEACH, CA 92663 FAUL FAMILY TRUST 500 30TH ST NEWPORT BEACH, CA 92663 JOHN R WELBOURN 503 30TH ST NEWPORT BEACH, CA 92663 MCDOWELL FRANK TRUST 506 30TH ST NEWPORT BEACH, CA 92663 MARK A SCHATTINGER 511 30TH ST NEWPORT BEACH, CA 92663 CRESCENT TRUST 519 30TH ST NEWPORT BEACH, CA 92663 DIXON THOMAS /J LIVING TRUST 428 31 ST ST NEWPORT BEACH, CA 92663 VALLE BRETT H DEL 415 29TH ST NEWPORT BEACH, CA 92663 FUNDING SOUTHERN 419 30TH ST NEWPORT BEACH, CA 92663 ROBERT L BEERS 501 30TH ST NEWPORT BEACH, CA 92663 STEPHEN M BANTA 504 30TH ST NEWPORT BEACH, CA 92663 MATTHEW JACKSON 507 30TH ST NEWPORT BEACH, CA 92663 KOEBERLE FAMILY TRUST 512 30TH ST NEWPORT BEACH, CA 92663 BRIAN WESLEY RAY 425 30TH ST #10 NEWPORT BEACH, CA 92663 DINO & ARDENIA CAPANNELLI 430 31ST ST NEWPORT BEACH, CA 92663 JACKSON /JACKSON 510 LLC CLIFF J HWANG JAMES R MCCLURE 510 31ST ST #A 107 32ND ST 115 32ND ST NEWPORT BEACH, CA 92663 NEWPORT BEACH, CA 92663 NEWPORT BEACH, CA 92663 EYtquettes fatges 6 peter ♦ Consultez la feuilte www.averycom Utilisez le gabarit AVERY® 51600 Sens de drargement d'instruction 1 -SMGO- AVERY Easy Peed Label 1 See Easy F ature (AVERY ®5160® Use Ave TEMPLATE 5160® Feed Paper for Eas Peel Feature v MILTON Y KAWABE GILL AUBREY J TRUST RICHARD A HIGBIE 125 32ND ST 106 33RD ST 108 33RD ST NEWPORT BEACH, CA 92663 NEWPORT BEACH, CA 92663 NEWPORT BEACH, CA 92663 ANTONOPOLIS FAMILY TRUST 114 33RD ST NEWPORT BEACH, CA 92663 GARY MERRILL JUNGE 125 33RD ST NEWPORT BEACH, CA 92663 STEVEN D 1IANSEN 110 33RD ST #1 NEWPORT BEACH, CA 92663 MEGAN E R AZER 209 1/2 33RD ST #B NEWPORT BEACH, CA 92663 SUSAN A BOYD :125 34TH ST NEWPORT BEACH, CA 92663 JOHN E SPENCER 109 34TH ST #A NEWPORT BEACH, CA 92663 GERTLER B/M FAMILY TRUST 117 35TH ST NEWPORT BEACH, CA 92663 CHARLES D DAYTON 124 35TH ST NEWPORT BEACH, CA 92663 MICHAEL M BATES 204 35TH ST NEWPORT BEACH, CA 92663 ZAIL TRUST KAREN S MILLIGAN 118 33RD ST 121 33RD ST NEWPORT BEACH, CA 92663 NEWPORT BEACH, CA 92663 HAMMOND- MCKINLEY LLC THOMAS G AIEVOLI 207 33RD ST 209 33RD ST NEWPORT BEACH, CA 92663 NEWPORT BEACH, CA 92663 FISCHELLA J R LIVING TRUST THOMAS C COZAD 125 33RD ST # 1 126 33RD ST #B NEWPORT BEACH, CA 92663 NEWPORT BEACH, CA 92663 OHANESIAN TRUST GAIL H WOLCOTT 112 34TH ST 121 34TH ST NEWPORT BEACH, CA 92663 NEWPORT BEACH, CA 92663 HARRISON ALLEN/MERIL TRUST STEVEN A BAEZA 209 34TH ST 208A 34TH ST NEWPORT BEACH, CA 92663 NEWPORT BEACH, CA 92663 MICHAEL M & CONNIE J ADNOFF DON A & CARLA BOSELLI 116 35TH ST 116 35TH ST NEWPORT BEACH, CA 92663 NEWPORT BEACH, CA 92663 AIGNER TRUST VENNUM BARBARA H LIVING 120 35TH ST TRUST NEWPORT BEACH, CA 92663 122 35TH ST NEWPORT BEACH, CA 92663 WILFRED A LLAURADO GEORGE SCHROEDER 126 35TH ST 129 35TH ST NEWPORT BEACH, CA 92663 NEWPORT BEACH, CA 92663 HAYDEN TRUST ALFORD J BECK 206 35TH ST 208 1/2 35TH ST NEWPORT BEACH, CA 92663 NEWPORT BEACH, CA 92663 Etiquettes faciles 3 paler A Consultez fa feuille www.averycom Utilisez le gabarit AVERY® 51600 Sens de chargement d'instruction 1- 800-60 -AVERY Easy Peel Labels Use Avery® TEMPLATE 51600 NA CITIBANK 126 1 35TH ST NEWPORT BEACH, CA 0 JUNE FAMILY 114 39TH ST NEWPORT BEACH, CA 92663 EDWARD R JOHNSON 120 39TH ST NEWPORT BEACH, CA 92663 PATRICK ANTHONY 129 39TH ST #A NEWPORT BEACH, CA 92663 TRISTAN L ALEY 124 40TH ST NEWPORT BEACH, CA 92663 STACEY PIERSON 122 40TH ST #I NEWPORT BEACH, CA 92663 RICHARD L BABINEAU i10415TST NEWPORT BEACH, CA 92663 MILLIGAN CHRISTINE M TRUST 121 41ST ST NEWPORT BEACH, CA 92663 THOMAS P & WENDY HERRING 127 43RD ST NEWPORT BEACH, CA 92663 BROWN FAMILY TRUST 119 44TH ST NEWPORT BEACH, CA 92663 i A See Instruction Sheet cs eFeed Paper for Easy Peel Featurei ® AVERY ®5160 LOREN PETER HANSEN DAVID F DIAMOND 500 38TH ST 111 39TH ST NEWPORT BEACH, CA 92663 NEWPORT BEACH, CA 92663 T M KUMAR 115 39TH ST NEWPORT BEACH CA 92663 LAURIE E STIEL 123 39TH ST NEWPORT BEACH, CA 92663 GARY L FLATER 115 40TH ST NEWPORT BEACH, CA 92663 BACCARO MARY F TRUST 126 40TH ST NEWPORT BEACH, CA 92663 STEVEN J TURANSKY 111 40TH ST #A -B NEWPORT BEACH, CA 92663 HENRY C VOLKER 113 41 ST ST NEWPORT BEACH, CA 92663 MARK & KIM POUND 115 42ND ST NEWPORT BEACH, CA 92663 BHASKAR BILL TRUST 110 44TH ST NEWPORT BEACH, CA 92663 JAKUBEK JOHN B TRUST 120 44TH ST NEWPORT BEACH, CA 92663 2100 VENTURES LLC 118 39TH ST NEWPORT BEACH, CA 92663 GEORGE R & SUSAN APPLEBAUM 131 39TH ST NEWPORT BEACH, CA 92663 EDWIN H VAN DEN BOSSCHE 121 40TH ST NEWPORT BEACH, CA 92663 DOUGLAS E BILLINGS 128 40TH ST NEWPORT BEACH, CA 92663 DON G & TERRI S SOWERS 120 40TH ST #B NEWPORT BEACH, CA 92663 JOHN MAJKOSKI 114 41ST ST NEWPORT BEACH, CA 92663 MARK E & E C SCHAFFER & CYNTHIA 123 43RD ST NEWPORT BEACH, CA 92663 MILES B LARSON 115 44TH ST NEWPORT BEACH, CA 92663 GEORGE NEVIN 125 44TH ST NEWPORT BEACH, CA 92663 klquettes faciles a peler ♦ Consultez la feulle www.averycom Utilisez le gabarit AVERY® 51600 Sens de chargement d'instruction 1- 800 -GO -AVERY Easy Peel Labels i A See Easy F Sheet's '® AVERY ®5160® i Use Av ® TEMPLATE 5160® iFeed Paper for Eas Peel Feature E /MEMDUH TRUST AUDREY M NELSON EDWARD J CLARK TRUST 129 44TH ST - 130 44TH ST NEWPORT BEACH, CA 92663 1/2 44TH NEWPORT BEACH, CA 92663 NEWPORT BEACH, CA 92663 WILLIAM L & JOANN D MARTIN III 112 45TH ST NEWPORT BEACH, CA 92663 ROBERT BUCKLAND 130 45TH ST NEWPORT BEACH, CA 92663 KENNETH A & MARY S BRYANT 116 46TH ST NEWPORT BEACH, CA 92663 MICHELLE A BACCARO 124 46TH ST NEWPORT BEACH, CA 92663 'LEO MSCHLOCKER 118 47TH ST #A NEWPORT BEACH, CA 92663 SERGIO & MARYBELL AVILA 275 49TH NEWPORT BEACH, CA 92663 NAGI E & AMANI G ZAKI 26950 ABBEY GLEN DR YORBA LINDA, CA 92887 GATES FAMILY TRUST 8 ALONDRA IRVINE, CA 92620 LUCY BONNETT BERKLEY 2278 ARROYO DR RIVERSIDE, CA 92506 Ittiquettes fadle3 8 paler Utilisez le gabarit AVERY® 51600 GORDON M LOWE 115 45TH ST NEWPORT BEACH, CA 92663 DAVID H HORTON 132 45TH ST NEWPORT BEACH, CA 92663 MASRI TRUST 118 46TH ST NEWPORT BEACH, -CA 92663 MACKAY TRUST 126 46TH ST NEWPORT BEACH, CA 92663 DOUGLAS A JONES III 134 47TH ST #A NEWPORT BEACH, CA 92663 SCOTT F & MARIE A SCHOCK 305 62ND ST NEWPORT BEACH, CA 92663 KALAJIAN EDWARDB TRUST 13206 ADMIRAL AVE #J MARINA DEL REY. CA 90292 TAMOTSU TANAKA 1300 ANTIGUA WAY NEWPORT BEACH, CA 92660 KARTALIAN FAMILY TRUST 1061 AVONOAK TER GLENDALE, CA 91206 Sens de chargement JACK R BARHAM 123 45TH ST NEWPORT BEACH, CA 92663 RICHARD A GHAZARIAN 133 45TH ST NEWPORT BEACH, CA 92663 MARY F BACCARO 124 46TH ST NEWPORT BEACH, CA 92663 TASSIO MARIANNE TRUST 122 47TH ST NEWPORT BEACH, CA 92663 VINCENT HUGH ZIMMERER 224 48TH ST NEWPORT BEACH, CA 92663 JOHN W COX III 310 62ND ST NEWPORT BEACH, CA 92663 GALE RANDALIDEBRA TRUST 2034 AHUACATE RD LA HABRA HEIGHTS, CA 90631 STARLENE LICUDINE 1633 ARCH BAY DR NEWPORT BEACH, CA 92660 ROBERT G FELTON 41 BALBOA CVS NEWPORT BEACH, CA 92663 Oonsultez la feulile www.avery com d'in tstruction 1- 800-60- AVERY. 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FAMILY 4709 SEASHORE DR 4714 SEASHORE DR TRUST NEWPORT BEACH, CA 92663 NEWPORT BEACH, CA 92663 4807 SEASHORE DR NEWPORT BEACH, CA 92663 RICH MCHUGH CHRISTOPHER J PARR MATTHEW O JONES 4809 SEASHORE DR 4820 SEASHORE DR 49011/2 SEASHORE DR NEWPORT BEACH, CA 92663 NEWPORT BEACH, CA 92663 NEWPORT BEACH CA 92663 JUANITA SIRIANI DAVID B BRENT DENNIS & SUZETTE BUCHANAN 4903 SEASHORE DR 4904 SEASHORE DR 4912 SEASHORE DR NEWPORT BEACH, CA 92663 NEWPORT BEACH, CA 92663 NEWPORT BEACH, CA 92663 STAUFFER FAMILY TRUST LILLIAN K LIGHT ROBERT FITZPATRICK 5007 SEASHORE DR 5008 SEASHORE DR 5009 SEASHORE DR NEWPORT BEACH, CA 92663 NEWPORT BEACH, CA 92663 NEWPORT BEACH, CA 92663 MEYER TRUST KATHLEEN CHIEFFI RICHARD S TAYLOR 5011 SEASHORE DR 5104 SEASHORE DR 5105 SEASHORE DR NEWPORT BEACH, CA 92663 NEWPORT BEACH, CA 92663 NEWPORT BEACH, CA 92663 DAVID E JR CARUSO SMITH FAMILY TRUST SELLERS C Y FAMILY TRUST;+ 5109 SEASHORE DR 5200 SEASHORE DR 5208 SEASHORE DR NEWPORT BEACH, CA 92663 NEWPORT BEACH, CA 92663 NEWPORT BEACH, CA 92663 MARY M KESSLER JOHN O NEWMAN NED P ECKERT 6003 SEASHORE DR 6009 SEASHORE DR 6011 SEASHORE DR NEWPORT BEACH, CA 92663 NEWPORT BEACH, CA 92663 NEWPORT BEACH, CA 92663 CORYDON M PIEPER PETER G GLADIS 62II SEASHORE LLC 6205 SEASHORE DR 6209 SEASHORE DR 6211 SEASHORE DR NEWPORT BEACH, CA 92663 NEWPORT BEACH, CA 92663 NEWPORT BEACH, CA 92663 KIDUSHIM FAMILY TRUST ABRAHAM EDWARD A TRUST SIMKINS TANIA LIVING TRUST 4905 -1/2 -4905 SEASHORE DR 4603 SEASHORE DR #A 4616 SEASHORE DR #A NEWPORT BEACH, CA 92663 NEWPORT BEACH, CA 92663 NEWPORT BEACH, CA 92663 MICHAEL J DOMINGUEZ SPITALNICK W R 2006 TRUST SONNY GOODMAN 4900 SEASHORE DR #A 4804 SEASHORE DR #B 4900 SEASHORE DR #B NEWPORT BEACH, CA 92663 NEWPORT BEACH, CA 92663 NEWPORT BEACH, CA 92663 "quettes fadles 8 peler Utilisez le gabarit AVERY® 51600 A Sens de chargement Consultez la feuille www.awrycom dlnstruction 1-M-GO -AVERY Easy Peel Labels !A Paper Instruction Sheet i Q► ® AVER( ®5160® i Use Avery® TEMPLATE 5160® n 1Feed Paper for Easy Peel Featurel 1 EDWARD P MCLAUGHLIN III STEVE R EMERSON HOELZEL LUCY TRUST 5204 SEASHORE DR #B 5565 SHANNON RIDGE LN 8726 SHANNON RIVER CIR NEWPORT BEACH, CA 92663 SAN DIEGO, CA 92130 FOUNTAIN VALLEY, CA 92708 NASIR MUSA Y TR 335 SHARON RD ARCADIA, CA 91007 WIGGINS FAMILY TRUST 6SHERWOOD NEWPORT BEACH, CA 92660 ROFAEL FAMILY TRUST 3922 SIRIUS DR HUNTINGTON BEACH, CA 92649 LOIS M WADSWORTH 7267 SPOONBILL LN CARLSBAD, CA 92011 ALFONSO R SANCHEZ 924 SUMMIT PL MONTEREY PARK, CA 91754 THOMAS W; VENNUM II 9377 TANGELO AVE FONTANA, CA 92335 BARRY J & AMY H FIELDMAN 2061 TROON DR HENDERSON, NV 89074 MICHAEL J & HONEY B MARKER 4218 VALLEY MEADOW RD ENCINO, CA 91436 MELBOURNE TRUST 103 VIA BARCELONA NEWPORT BEACH, CA 92663 BENEDETTA TR -OF NARDON 340 SHARON RD. ARCADIA, CA 91007 SANDHUR M S LIVING TRUST 24 SHORELINE NEWPORT BEACH, CA 92657 MARVIN P ADLER 30123 SKIPPERS WAY DR CANYON LAKE, CA 92587 GREGORY M HUHN 925 STEELE DR BREA, CA 92821 MATTHEW SMITH 1599 SUPERIOR AVE #A3 COSTA MESA, CA 92627 WILLIAM M SHAPIRO 1781 TERRY LYNN DR SANTA ANA, CA 92705 EDWARD JOSEPH VERGARA 5831 TROPHY DR HUNTINGTON BEACH, CA 92649 JOYCE REAUME 206 VIA ANTIBES NEWPORT BEACH, CA 92663 RILEY TRUST 200 VIA BARCELONA NEWPORT BEACH, CA 92663 LIGORIO A JR. & JOAN CALAYCAY 3921 SHELTER GROVE DR CLAREMONT, CA 91711 MARY J ROGERS 2183 SILVERADO ST SAN MARCOS, CA 92078 SELTZER RICHARD A TRUST 80499 SPANISH BAY LA QUINTA, CA 92253 GRABLE DANIEL C TRUST A 16574 SUGARLOAF ST FOUNTAIN VALLEY, CA 92708 APRAHAMIAN C E 1998 TRUST 16 SYCAMORE CRK IRVINE, CA 92603 LAING J/C TRUST 1 TIBURON BAY DR CORONA DEL MAR, CA 92625 BOWMAN FAMILY TRUST 21301 TULSA ST CHATSWORTH, CA 91311 ROSALYN L BINNING 108 VIA ANTIBES #C NEWPORT BEACH, CA 92663 EVANS KRISTINE/DENNIS TRUST 204 VIA BARCELONA NEWPORT BEACH, CA 92663 INquettes fades 8 peter A Utilisez le abarit AVERY® 5160® Sens de c ha ement Consultez la ion 1- 800- Go-AVE 111 9 ►9 dYnst�'uction 1- 800 -GO- AVERY' tasy reel Laueis ® Use Ave TEMPLATE 5160 tr+ I Feed Paper see instruction Sheet L P for Easy Peel Feature l ®A Ry ®5160 i 1 JAMES P & LUCY E ARNOLD GREEN FAMILY TRUST CLASEN TRUST 104 VIA CORDOVA 106 VIA CORDOVA 107 VIA CORDOVA NEWPORT BEACH, CA 92663 NEWPORT BEACH, CA 92663 NEWPORT BEACH, CA 92663 INGHAM FAMILY TRUST METZGER FAMILY TRUST DENISE M BONNER 108 VIA CORDOVA 110 VIA CORDOVA 11 I VIA CORDOVA NEWPORT BEACH, CA 92663 NEWPORT BEACH, CA 92663 NEWPORT BEACH, CA 92663 OSTERKAMP FAMILY TRUST MICHAEL TERRY ALFRED R SIMMONS 114 VIA CORDOVA 115 VIA CORDOVA 201 VIA CORDOVA NEWPORT BEACH, CA 92663 NEWPORT BEACH, CA 92663 NEWPORT BEACH, CA 92663 KENNETH STANLEY BELL GEORGE S KONUGRES FRANK DIBELLA 205 VIA CORDOVA 209 VIA CORDOVA 213 VIA CORDOVA NEWPORT BEACH, CA 92663 NEWPORT BEACH, CA 92663 NEWPORT BEACH, CA 92663 LEWIS FAMILY TRUST THOMAS D ARNOLD WILLIAM W GREEN 216 VIA DIJON 118 VIA ITHACA 3419 VIA LIDO #607 NEWPORT BEACH, CA 92663 NEWPORT BEACH, CA 92663 NEWPORT BEACH, CA 92663 MITCHELL BERIT M TRUST DAN L MCGURK GREGORY L FOX 112 VIA LIDO NORD 114 VIA LIDO NORD 118 VIA LIDO NORD NEWPORT BEACH, CA 92663 NEWPORT BEACH, CA 92663 NEWPORT BEACH, CA 92663 JULE C MARSHALL GONZALEZ J M/M LIVING TRUST TUTTLE VIRGINIA LEE TRUSTEE 120 VIA LIDO NORD 124 VIA LIDO NORD 200 VIA LIDO NORD NEWPORT BEACH, CA 92663 NEWPORT BEACH, CA 92663 NEWPORT BEACH, CA 92663 TARZIAN EVELYN L TRUST JANET K SHAW BERNICE C RILEY 204 VIA LIDO NORD 208 VIA LIDO NORD 211 VIA LIDO NORD NEWPORT BEACH, CA 92663 NEWPORT BEACH, CA 92663 NEWPORT BEACH, CA 92663 TERRENCE R CLARK DIETZ PARK E/ANNE L DAY GRACE FAMILY TRUST 217 VIA LIDO NORD 828 VIA LIDO NORD 119 VIA LIDO SOUD NEWPORT BEACH, CA 92663 NEWPORT BEACH, CA 92663 NEWPORT BEACH, CA 92663 ROGER K DUERR : EDWARD B ROBINSON LURLINE H TWIST 203 VIA LIDO SOUD 205 VIA LIDO SOUD 209 VIA LIDO SOUD NEWPORT BEACH, CA 92663 NEWPORT BEACH, CA 92663 NEWPORT BEACH, CA 92663 Etiquettes ladles A Peter Utlllsea to gabarit AVERY® 51600 • ;Sens de chargement Consuloez is retttne www,aparl4com d'instrucdon t- 800 -GO -AVERY easy reer Loom s u. aee m >uuuwn aneea i u. U& A'ERY ®5160® i Use Avery® TEMPLATE 51600 ]Feed Paper for Easy Peel Feature ROBERT E DODDS CHOMEAU FAMILY TRUST DONALD R SPITZ 213 VIA LIDO SOUD 215 VIA LIDO SOUD 1219 VIA LIDO SOUD NEWPORT BEACH, CA 92663 NEWPORT BEACH, CA 92663 NEWPORT BEACH, CA 92663 CLINE D JB E 1991 LIVING 221 VIA LIDO SOUD NEWPORT BEACH, CA 92663 KENNETH G ROBINSON 233 VIA LIDO SOUD NEWPORT BEACH, CA 92663 ARNOLD CONSTRUCTION CO 309 VIA LIDO SOUD NEWPORT BEACH, CA 92663 M E JR KOFFORD 105 VIA ORVIETO NEWPORT BEACH, CA 92663 MARILYN J BRAINERD 5324 VIA VICENTE YORBA LINDA, CA 92887 WILLIAM H MAY 18471 VILLA DR VILLA PARK, CA 92861 VICTOR G RUMBELLOW .434 VISTA GRANDE NEWPORT BEACH, CA 92660 MICHAEL VINDIGNI 824 W 15TH ST #30 NEWPORT BEACH, CA 92663 FLUTER RUSSELL E TRUST 2025 W BALBOA BLVD NEWPORT BEACH, CA 92663 CRAWFORD E JR WESTERING 222 VIA LIDO SOUD NEWPORT BEACH, CA 92663 TURNER FAMILY TRUST 250 VIA LIDO SOUD NEWPORT BEACH, CA 92663 LIDO ISLE COMMUNITY ASSN 701 VIA LIDO SOUD NEWPORT BEACH, CA 92663 DENNIS OVERSTREET 200 VIA SAN REMO NEWPORT BEACH, CA 92663 SALINAS TRUST 23048 VICTORIA ST GRAND TERRACE, CA 92313 CONSTANCE S TOWNSEND 9662 VILLA WOODS DR VILLA PARK, CA 92861 GARY S DICORPO 16 VISTA MONTEMAR LAGUNA NIGUEL, CA 92677 ANITA M ERICKSON 225 VIA LIDO SOUD NEWPORT BEACH, CA 92663 FEUERSTEIN ROBERTA TRUST .301 VIA LIDO SOUD NEWPORT BEACH, CA 92663 MARY ANN FAUBERT 439 VIA LIDO SOUD #B NEWPORT BEACH, CA 92663 PRICE FAMILY TRUST 116 VIA UNDINE NEWPORT BEACH, CA 92663 CHARLES E JR DAY 2389 VIEJO DR LAKE HAVASU CITY, AZ 86406 KAMERMAN PATI K LIVING TRUST 8609 VINEYARD RIDGE RD NE ALBUQUERQUE, NM 87122 CHIYOKO S 1TANAGA 605 W 111TH ST NEW YORK, NY 10025 GRAMIAN KEVIN FAMILY TRUST DANIEL S BANEGAS 821 W 15TH ST #3A 555 W 5TH ST #800 NEWPORT BEACH, CA 92663 LOS ANGELES, CA 90013 PACIFIC BAYSIDE PLAZA LLC 2025 W BALBOA BLVD NEWPORT BEACH, CA 92663 GARY & CARLETTA PARMETER 4506 W BALBOA BLVD NEWPORT BEACH, CA 92663 Ltiquettes fadles 8 paler ♦ Consultez la feulNe wwwAvary,9om Utilisez fe gabarit AVERY® 51600 Serfs de chargement d'instruction 1- 600 -GO -AVERY Use Avery® TEMPLATE 51600 Feed Paper for Easy Peel Feature ` ^V max r —a GEOFF RUDOLPH JERRY R MORTER CAYWOOD REALTY INC 4508 W BALBOA BLVD 433 W BROOKDALE PL 6110 W COAST HWY NEWPORT BEACH, CA 92663 FULLERTON, CA 92832 NEWPORT BEACH, CA 92663 A JOYCE HOSKINSON CHATRISA ENTS LLC 6204 W COAST HWY 6208 W COAST HWY NEWPORT BEACH, CA 92663 NEWPORT BEACH, CA 92663 STONESTREET FAMILY TRUST CARIAS JULIO A/H M TRUST 1218 W DWYER DR 412 W LINCOLN AVE ANAHEIM, CA 92801 MONTEBELLO, CA 90640 ROSBURG LLC ANGIE LUCE 3302 W OCEANFRONT 3304 W OCEANFRONT NEWPORT BEACH, CA 92663 NEWPORT BEACH, CA 92663 PHILLIP W WALSH HARRY NELSON 6110 W OCEANFRONT 6202 W OCEANFRONT NEWPORT BEACH, CA 92663 NEWPORT BEACH, CA 92663 • MEFFERD GIJ TRUST PAMELA STILGENBAUER 6210 W OCEANFRONT 6302 W OCEANFRONT NEWPORT BEACH, CA 92663 NEWPORT BEACH, CA 92663 PAULA J LEYTON RANDAL C GALE 18402 W TERRACE LN 1840 W WHITTIER BLVD YOR13A LINDA, CA 92886 LA HABRA HEIGHTS, CA 90631 JOHN B WALDRON MARION LAUREL JANE PLATO 1239 WATERVIEW DR 12573 WESTMONT DR MILL VALLEY, CA 94941 MOORPARK, CA 93021 RICHARD A HARRIS ROGER M FRYER 8 WINDSTONE RIDGE CT 12172 WOODLAWN AVE LAS VEGAS, NV 89135 SANTA ANA, CA 92705 City of Irvine PETER H BREEN Attn: Tim Gehrich, AICP Manager 6 YOUNG Planning & Development Services IRVINE, CA 92617 Box 19575 Irvine, CA 92623 -9575 Coquettes fades A paler A Utilisez le gabarit AVERY® 51600 Sens de chargement 1 HIRST AUDREY L FAMILY TRUST 1525 W DORIS PL ANAHEIM, CA 92802 JANICE L PIERCE 3300 W OCEANFRONT NEWPORT BEACH, CA 92663 GIESE DREW TRUST 3312 W OCEANFRONT NEWPORT BEACH, CA 92663 LAWRENCE D CANCELLIERI 6206 W OCEANFRONT NEWPORT BEACH, CA 92663 FAROUK AGRAMA 7655 W SUNSET BLVD LOS ANGELES, CA 90046 HOSMAN PROPERTIES 129 W WILSON ST 4100 COSTA MESA, CA 92627 ASKIN NEWPORT LLC 806 WILSON ST LAGUNA BEACH, CA 92651 CAROL LYNN RIMMER 2101 YACHT GRAYLING NEWPORT BEACH, CA 92660 Jill Schwalbe Newport Hills Association 1900 Port Carlow Newport Beach, CA 92660 Cbmitez is feuipe wwWAVW'Wm d'insteuctlon 1- 80060- AVERY X13- In a�-o� Date: January 27, 2009 To: Mayor and City Council City of Newport Beach From: Concerned Citizens of Newport Beach and Friends Subject: Proposed Zoning & Public Interest Agreement with Sober Living by the Sea, Inc.( "SLBTS ") and affiliated entities Mayor and Council: We are writing this letter to voice the community's position regarding the proposed agreement between the City and its largest drug rehab business operator, Sober Living by the Sea, Inc.( "SLBTS "). There are hundreds of residents and local business people who agree with the position of this letter, but are reluctant to speak publicly. The citizens of this community expected the City Council to embark on a negotiated agreement with SLBTS in connection with the regulation of its integrated drug and alcohol care and similar business uses throughout the City. The citizens accept the desirability of settling costly litigation, assuming a settlement provides equitable relief to key stakeholders. We believe that the terms of the proposed Zoning and Public Interest Agreement are NOT in the public interest, based on the following: 1. Long Term Grant of RiAts Unconditionally Transferable to any Party. The Agreement provides SLBTS with a long -term entitlement that is transferrable to any party without any supervision or review by the City for a 25 year term for a Use which is inconsistent with the City's General Plan, and the specific Coastal Land Use Plan. 2. Inappropriate Determination of CEOA Exemption A vested right of use to 156 plus beds and related meeting and office facilities across the Peninsula should rightfully be subject to environmental review. There can be no doubt that a massive business of this scale has material physical, health and socioeconomic impact on a community. It is stated that this business and this agreement are exempt from CEQA, but there are no statement of findings to support this position. This specific Use and permanent grant of rights has not been reviewed or approved by the Coastal Commission - -- even though the City repeatedly subjects single family residents and homeowners to environmental scrutiny and compliance. 3. Unnecessary Sacrifice of West Balboa/Lido. The Agreement permanently zones in an over - concentration in the West Balboa Peninsula/Lido area with 17 -20 group residential and several other integrated commercial office and meeting facilities within a radius of less than one mile, grandfathering the business scale and capacity which SLBTS achieved in 2007. The area excepted from "dispersion" places multiple facilities within several hundred feet of one another. As with other uses, the granting of a use should be based on capacity for occupancy, rather than actual commercial activity, which can vary at any given time and would tend to understate the level of intensity of operation. Furthermore, SLBTS is granted a vested right to a 25% expansion of its business in the City with no assurance of effective regulation. 4. Failure to Protect Residents. The Agreement fails to protect the health and safety of our City's children and public at large in several respects: a. It allows facilities to be established by SLBTS within 1,000 feet of all elementary schools other than Newport Elementary School. b. It allows facilities to be established by SLBTS within 1,000 feet of all nursery schools, day care and total lots other than 3 locations cited in the agreement. c. It fails to effectively restrict smoking in public areas frequented by children and others whose health and quality of life is compromised by second hand smoke (beaches, streets and alleys, boardwalks, playgrounds). d. It does not prevent institutionalization and over - concentration of rehab facilities in the already over - concentrated residential area of the Balboa Peninsula, or other areas of the City. e. It does not provide adequate inspection and control mechanisms to assure the public of health and safety, fire prevention safeguards. 5. Exceptional Benefits Chanted to SLBTS Alone. The Agreement affords special legal, contractual, economic and social protections to this single business not afforded to other businesses or residents. 6. Unified Operations are a given. We appreciate that SLBTS has agreed to have its stated 6 plus 6 facilities considered as one - - - -and are confident that, with the proper assertion of the facts, that the court would have upheld same. The proposed Agreement, sadly, demonstrates that the City is unwilling to commit to protection of its coastal asset, and to providing the community with equitable relief from over - concentration and its impacts. We urge the Council to revisit the proposed terms of this Agreement. F EC RED UTE i A18 N0A e t: , :::�.eo. TO: City Clerk, Newport Beach: L. Grown City Council and Staff: Planning Commission and Staff: Regarding: Proposed Zoning Agreement between City of Newport Beach and Sober Living By The Sea (Drug Rehab Operator). To all Parties: I am submitting my objection to this agreement and ask that it be entered into the public record on my behalf. I will not be attending this meeting nor have I attended the previous hearings regarding this issue with the numerous other drug rehab operators in the last two months. I have made a decision to no longer be subjected to the intimidation tactics used by this operator and the many others that have been made aware of my involvement in this issue. Every time a notice of a hearing or Council meeting regarding the drug rehab operators is posted the abuse and intimidation is activated anew. At the beginning of this, now going on three year nightmare, I sent a letter to the Council informing them that I had been intimidated by the attorney for Sober Living By The Sea, Edward Dilkes. I did not know who he was at the time, he approached me in Council chambers and told me "he knew who I was and asked if I knew who in the City might be sympathetic on behalf of our group? he then said "if you need anything just ask me, I'm close with several people in the City and I can help you out if you need information" the man standing next to me told me not to continue speaking with this man that he was an attorney for Sober Living By The Sea, at that, he turned and walked away without ever introducing himself. Outside the chambers that same night he approached me again and asked "do you think the rehab homes that are here now should be grandfathered and allowed to stay?" I said NO they should not, he then said "well I think that would be considered discriminatory ... but what do I know ?" several people started to ask who he was and he turned and walked away. After myself and several other residents started coming to City Council and asking questions about this business being run in our residential neighborhoods, the clients of these homes began riding their "drug rehab issued" bikes by our homes at all hours of the day and night. Screaming obscenities, throwing things at the houses, leaving drugs in the bushes, all manner of abuse. We have Vans full of clients speeding down our streets, blocking traffic, screaming from the vans and blocking alleys constantly. Myself and others were finally pushed out of Council and into the "Intense Residential Occupancy Meetings" chaired by the then Mayor Rosansky, that's when the real intimidation and scare tactics were ramped up to a new level. The Residential Occupancy Meeting was a circus. With 50 residents in attendance, there were 3 CRC Health Group Attorneys and their cameras recording residents that attended. When we were asked about impacts on our community, at public comments, we were admonished several times to stay on topic by the mayor. Then Edward Dilkes, the Sober Living By The Sea Attorney (CRC) got up and threatened everyone at the meeting to stop showing people the map of streets with rehab businesses on it. He said we would be "sorry" and would "be in BIG trouble" if we discussed the map, the mayor did not stop this intimidation tactic, and in fact distanced the city from any knowledge of the rehab homes listed on the map. Bri an Burke, another attorney for CRC ( SLBTS) went to the back of the room and started going through the sign in sheet, many residents saw what was happening and objected to this gross abuse, as the names would be made public soon enough, we asked the Mayor "why did they have to show force and bully tactics like this to intimidate residents ?" the Mayor did nothing and finally a resident took the sign in sheet away from Mr. Burke and asked him to refrain from doing this during the meeting. All of this was captured on the SLBTS tape. Resident Cynthia Koller was exiting the women's restroom after fleeing there to compose herself... she had just spoke (for the first time in public) about being a victim of violent crime and wanted to know who was actually residing in the rehab homes since many were sent there instead of given jail time. As she was leaving the restroom, Brian Burke and Edward Dilkes cornered her with their bodies and asked her why she felt so passionately about this? They also said "we can help you" "you just need to speak to us" she was so alarmed she left the meeting entirely and went to her car. The next day those same men were roaming OUR Street after finding out only the street number from the sign in sheet. They were asking our neighbors if they knew Cynthia Koller or me, and asking where we lived, which house? Our neighbors called to warn us, one neighbor told them to get off our block or he would call the police. They then went to the next block over and continued their search. For several days after that, there were two men sitting in a car on our block watching our homes. Along with all this we were still being inundated by vans full of clients flying down our street, up over the curbs and racing to the corner, clients on bikes continuing with the tactics of spitting at our houses while we had guests, swearing and screaming, skidding their bike tires right behind us as we walked, several residents on my block alone were within inches of being hit and run over by speeding vans and my own son was hit by a van as he skateboarded, THANK GOD he was not knocked down and killed and before he could get the van license plate, they sped off. This was ONLY THE BEGINNING. As time went on we could no longer go to our local market, Albertsons, because these clients loitered outside, smoking, swearing and from what we were told by employees buying drugs in the parking lot. Albertsons hired many of these clients. We could no longer go to our local coffee shops because it was the same situation. I could no longer walk down to the beach, which I had done for many years, because the beach entrance at the end of my block was constantly inhabited by rehab clients smoking, swearing, fighting and leering at the women who passed. I am listing the things I can remember and will forever be apart of my memories of living in what I once considered an ideal place. This sense of peace has been forever stripped from me by these drug rehab businesses in our residential neighborhoods and by Sober Living By The Sea and their clients. Carl Mosen (past owner and apparently current investor or owner of several Sober Living By The Sea homes) verbally attacked my neighbor as he walked through Lido village, making threatening gestures and remarks telling him "he better back off and what was he doing asking questions about rehab in Newport" he then tried to goad my neighbor saying "you think you're a tough guy? You think I can't get anything I want in 24 hours from this City? I can get a permit in one day, can you do that ?" again, this is another area we all feel uncomfortable shopping at, several drug rehab company's have their offices there and bring new clients to be committed to their homes. We continued to be harassed by drug rehab clients, we witnessed fights, a man beaten almost to death who had escaped from Hoag Hospital to return to the "Sober Living" house, only to escape again when police were called, open drug use, ex- clients who either ran away or were kicked out of these rehab homes, living at the end of our streets and the local parks. Residents felt sorry for them and brought them plates of food. Everything continued to escalate as this nightmare became known throughout the City. A woman being treated at 129 39h St. (Sober Living By The Sea) owned by T.M. Kumar and operated on their behalf, ran screaming from the house, tearing off her clothes, ended up on 401h St., broke into THREE separate houses, barricaded herself in the last house she broke into, went through the owners clothes drawers, screaming uncontrollably. She finally was subdued by Police. The owners were told they should not file charges, she was a rehab client, and it would only make it hard on her. They returned her to the 39`h St., Sober Living By The Sea house and that was that. Thank God she didn't find a weapon in the drawers of the owner's house. I could go on and on, I have gone before Council at every opportunity to show them the impacts that have been inflicted on our community by these drug rehab businesses. NO ONE wanted to listen, NO ONE wanted to admit this was happening and when it could not be ignored anymore and we fought harder to make them listen.. whey made us, the residents, the enemy. Our own city Councilman Keith Curry attacked us from the Dais, attacked our motives at Council debates to be re- elected, as "only after money" and "causing the City to use taxpayer dollars to pay attorneys ". This was also stated by him to the press. He attacked our credibility and our reputations. That was the last straw ... I knew I could no longer beat my head against the brick wall of this city trying to get relief from the very people who are charged to protect us. I would no longer be seen at these meetings, speaking on behalf of hundreds of residents too intimidated to speak and not wanting to be attacked by our City leaders and face retaliation by the drug rehab operators and their clients. It has been a LONG, HARD fight and now our own City will be joining, partnering with these operators AGAINST their own residents and constituents. When this agreement is voted on, and I will say right now it will be a whole hearted, across the board YES VOTE, residents first amendment with then be under attack, we will no longer be able to bring these people to a court of law for their misdeeds, if we do ... the City will join with Sober Living By The Sea to fight ANY THIRD PARTY WHO DOES NOT AGREE WITH THIS "BENEFICIAL AGREEMENT" See for yourself. Zoning Agreement Page 6 of 27and Page 7 of 27 18. Third Party Legal Challenge. If a third party brings a legal action challenging the validity or enforceability of any provision of this Zoning Agreement or the Applicable Regulations or the manner in which the ordinance approving this Zoning Agreement was processed and approved, including the application of the California Environmental Quality Act to that process, ( "Third Party Legal Challenge ") the parties shall defend the Third Party Legal Challenge jointly, and each party shall be responsible for its legal expenses incurred in connection with the Third Party Legal Challenge. As far as I'm concerned, this proves that residents concerns mean nothing to this city and the all mighty dollar (Sober Living By The Sea) is catered to by virtue of being backed by millions upon millions of dollars, funded by C.R.C. Health Group and BAIN CAPITOL. This Vote Tuesday night is just a "Dog and Pony Show" put on by the City to try and make people believe they have "Solved The Problem" this meeting is a SHAM and I will not be their to witness this travesty. Lori Morris Resident of West Newport Beach "RECEIVED AFTER AGENDA Brown, Leilani From: Cynthia koller [gracenbl @yahoo.com] Sent: Monday, January 26, 2009 2:31 PM To: Brown, Leilani Cc: edselich @adelphia.net; Gardner, Nancy; Rosansky, Steven; Henn, Michael; Daigle, Leslie; Curry, Keith; Susan /Barry Eaton; Kiff, Dave, Bludau, Homer; Harp, Aaron; Wolcott, Cathy Subject: BENEFIT AGREEMENT /SOBER LIVING BY THE SEA Gentlemen: I am submitting this objection in writing for the record in regards to the City Zoning Agreement being proposed with Sober Living by the Sea at the City Council Meeting this Tuesday January 27Th. I have come before the Council representing the residents of the peninsula (per their request) and myself for the last two years in protest of the taking of our neighborhoods by drug recovery homes (Sober Living by the Sea). I have presented the negative impacts Sober Living by the Sea imposed on our neighborhoods and me personally, every chance I was allowed to come before you on this issue. I have presented police logs and all my documentation. I have discussed via phone, email and in person as to the horrendous living conditions the residents have had to deal with in regards to the over concentration of the recovery homes and because of this, I have experienced constant harassment from operators, clients and their employees. When my neighbor Lori Morris came to council and told you her son had been hit by one of the recovery vans you... turned a blind eye and did not even make a comment. The residents and I have done everything you have requested us to do in regards to this issue. We have pleaded over and over for you to help us, the residents who you serve. Now we are to understand that you are rezoning our residential area ( West Newport) for the sake of a FOR PROFIT BUSINESS. You represent and work for US. Not them, have you forgotten your oath? I was told by a resident at the start of this process" I was previewing a house and the "HOUSE MANAGER" I met while looking at the property in the 6000 block of Seashore started to discuss the recovery home issue. I was told that no matter what the city decided to do that Sober Living by the Sea was SAFE, they would be Grandfathered in to whatever agreement was made ". This was over TWO YEARS AGO ..... There is no public trust with any of you and you have sold the peninsula out to a big business which is now allowed to operate in our neighborhoods. Not yours. You have the HONOR to serve us. This is a privilege you have misused. The residents will never know the truth but the appearance is very, very bad for all of you. This agreement states that Sober Living by the Sea will have to follow certain policy. Who will ever know if this is true and will be enforced? There was never code enforcement before, NEVER, When I first came to the city I was asked to help identify these homes because the "city" did not know where they where and what they were doing. Now we are to believe you are going to watch over these liars and hypocrites for the sake of the residents. Sober Living has lied to the residents and the city over and over again. I presented you proof with the copies of their website touting ALTERNATIVE SENTENCING and EXPUNGEMENT, yet they never admit to it and in this new agreement you still do not prohibit Clients in Alternative Sentencing programs. You only mention parolees which I believe you have done purposely for the operator's sake, Why don't you include the words NO ALTERNATIVE SENTENCING CLIENTS which was requested at City Council? I feel and so do the residents it is because Sober Living by the Sea would not agree to it even though they claim they do not have any alternative sentencing clients. Funny, why did they advertise Alternative Sentencing on their website until I passed out copies of this page to you the council and then the next day it was off their Website? Why? As Police Chief Klein states in his letter to you of September 23, 2008: "Proposition 5 is built upon the failed foundation of Proposition 36. Several evaluations conducted by leading researchers at UCLA concluded that over one - quarter of the offenders never arrived for a single treatment session, 60% of those who did arrive dropped out prematurely, and only one - quarter completed treatment. Put simply, over 75% of the cases were failures, while crime actually increased! Offenders in Proposition 36 committed more drug and property crimes than offenders who were not in Proposition 36." You don't even heed the advice from your own police Chief. And I will add that it as been only the police force who has tried to help us here on the Peninsula. So now if we are broken into, stabbed, raped or beaten by any of these "clients" (as I have witnessed on my block and in my home)we can't go to the state for help as they "the clients" can claim their addiction made them do it, and we can't go to our city for help because you have formed a legal partnership with Sober Living by the Sea against the residents. You chose to change our way of life and knowingly put us in harms way for the next 25 years with no tools to defend ourselves by inking this agreement with Sober Living by the Sea. If I show up for this meeting as I have always done before in regards to this issue the harassment and intimidation towards me and my family will start all over again. Not only from the operators but from my own councilmember who look right at me (Keith Curry) at the Corona Del Mar Candidates forum and accuse all residents who were involved with opposing these operators with trying to shake down the city with a lawsuit. And this man will be voting on this zoning agreement Tuesday night. Appalling. We have not only been intimidated by the operators but by our councilmember. I am not willing to put myself or my family through this again. I need to protect them as you do not. This agreement was decided a long time ago and to try to sell this to the public at this time as a "Benefit Agreement" is a travesty and a lie. Balboa Peninsula Resident ( West Newport) Cindy Koller and Family i X13 4800 Seashore Sober Living By The Sea RehaL 83f 29 "RECEIVED AFTER AGENDA PRINTED':" Proposed Zoning Agreement: Sober Living by the Sea and City of Newport Beach Newport Beach City Council Tuesday, January 27, 2009 Presentation Summary • Brief Review of Group Residential Uses Ordinance (Ordinance 2008 -05) • Legal Actions Court cases, court decisions Fair Housing Complaints • Administrative Actions Use Permit Hearings Homes closed /closing Abatement proceedings pending • Summary of the Zoning Agreement Benefits to the community Benefits to SLBTS and to persons in recovery Planning Commission's recommendations • For More Information and Next Steps Ordinance 2008 -OS Took effect in February 2008. Described different paths for existing operations versus new operations: Existing: Operators had until May 22, 2008 to file a Use Permit application to stay. New: All new group residential uses prohibited in all residential zones except: Stand -alone ADP - licensed "6 and Unders" — can go anywhere. With Use Permits in Multi - Family Residential ( "MFR") districts. Defined the Use Permit process, including an independent hearing officer and findings that must be met for approval or denial. Ordinance 2008 -OS Exempted stand -alone ADP - licensed "6 and Unders" per State law (HSC § 11834.23). Allowed the City to consider networked ADP - licensed "6 and Unders" as one or more larger facilities (the integral uses/ integral facilities concept). Set forth: An abatement procedure (abatement by February 22, 2009 generally); A process for Reasonable Accommodation. The State Exemption California Health and Safety Code § 11834.23. Today, anyone can place an State - licensed "6 and Under" treatment facility anywhere in Newport Beach: In any residential zone; Without a use permit; Without special conditions other than those that apply to EVERY single family use; Doesn't matter how close another facility is; and Cannot apply special fire codes or building codes. Every city in California must comply with this law. Legal Actions 9 Legal actions have been as follows: Lawsuits: Concerned Citizens of Newport Beach v. City. CCNB argued that the Ordinance did not go far enough. CCNB also sued multiple operators and asked for $250 million in damages from the City. SLBTS sued the City, alleging that the Ordinance went too far and was facially discriminatory. City of Newport Beach: Filed a cross - complaint against SLBTS and others to consolidate certain lawsuits in US District Court; Sued Pacific Shores Recovery and Morningside Recovery for opening operations during the 2007 short -term moratorium. Legal Actions Legal actions have been as follows: Federal Fair Housing Complaints: Pacific Shores Recovery and SLBTS filed separate complaints with the US Department of Housing and Urban Development (HUD), since referred to the DOJ, alleging that the City's ordinance and its practices have discriminated against disabled persons entitled to fair housing. 1 In US District Court... • In May 2008, Judge James Selna: o Let most of the City's ordinance stand by denying SLBTS' request to enjoin the City from enforcing it; but Enjoined the City from applying Integral Facilities /Integral Uses, saying that only State ADP can determine if multiple "6 and Unders" are integral. Therefore... i Why was Selna's action important? • It directly affected SLBTS, because: o SLBTS is the operator that uses the "6 and Under" model the most, with: At least 17 separately - licensed "6 and Under" facilities (= 102 beds). These were immediately exempted from Ordinance 2008 -05. SLBTS and CRC Health Group have a successful record of attaining State treatment licenses — had at least 15 other facilities that could qualify for licensure (= 90 beds). It freed SLBTS to open as many more licensed "6 and Unders" as they had clients and willing landlords (could move over 46 beds into this category). Why was Selna's action important? It directly affected SLBTS, because: It meant that, for up to 32 facilities and 192 beds, the City could not require Use Permits nor apply any of the conditions within them. And it meant that other integral operators were free to do the same thing. Back to the Legal Actions City- SLBTS -CCN B City asked CCNB and SLBTS to participate in mediation in June 2008. Both did. Mediation resulted in a "Term Sheet" between SLBTS and the City. The Zoning Agreement reflects Term Sheet. City- Pacific Shores Pacific Shores (located at Clay and Orange) lost initial round (City's ordinance is not facially discriminatory) — Pacific Shores to apply for Reasonable Accommodation. HUD /DOJ Actions Zoning Agreement would direct SLBTS to ask DOJ to drop complaint; Pacific Shores' complaint still stands as Pacific Shores goes through the Reasonable Accommodation process. Administrative Actions Operators representing over 400 beds filed for Use Permits: SLBTS (multiple addresses /204 beds); Yellowstone Recovery (4 facilities /60 beds); Narconon Southern California (I facility /49 occupants); Ocean Recovery (2 facilities /38 beds — one pending facility exempt); Newport Coast Recovery (I facility /29 beds); Kramer Center (I building/ 12 beds); and Balboa Horizons Recovery (I property/ I I beds) i Administrative Actions (cont'd) • Did not apply by the deadline (about 220 beds): Pacific Shores Recovery (3 buildings /60 beds) • Morningside Recovery (5 -6 buildings /60 -72 beds) The Shores Treatment (closed — 6 beds) 115 39th Street (closed — 17 beds) Lynn House (2 homes/ 16 beds) About 7 -8 other locations (up to 60 beds) Abatement notices sent May 23rd, 2008; • Abatement by February 22, 2009. 1 Administrative Actions (cont'd) Other properties subject to abatement (estimated 44 beds): 1 129 West Balboa — est 12 beds 12729th Street (unlicensed, est 12 beds) 508 Clubhouse (unlicensed, est 6 beds) 900West Balboa (unlicensed, "2 beds ") 421 1 Dana Road (unlicensed, est 6 beds) 1053 Granville — aka "Gracious Giver Church" — (unlicensed, est 6 beds) Administrative Actions (cont'd) Agreement to abate: Narconon Southern California (49 occupants) By end of NSC's ADP license term — 2/28/2010. Agreed to operating conditions between now and February 2010. Enforcement action underway for possible violation of Operating Conditions (transport of non - resident clients to 1810 West Ocean Front) Requested an ADP investigation of same. Any continuation of NSC's use in Newport Beach must be as a new facility in MFR subject to the Use Permit process. I Administrative Actions o Use Permits: Granted: (cont'd) Balboa Horizons — I I beds, ADP-licensed Denial Resolution Pending (subject to appeal): Newport Coast Recovery — January 5, 2009 Hearings Pending: Kramer Center — February 5, 2009 Ocean Recovery — February 5, 2009 Yellowstone Recovery — February 12, 2009 4:00 p.m., NB City Council Chambers Open to the public, public testimony invited. Notice goes out to: All property owners and residences within 300' Any person who requests notice. <; About the Agreements Agreement(s) Summary There are 2 agreements: Settlement Agreement Settles legal issues between the parties; Refers to the Zoning Agreement and incorporates its terms and attaches it; The Settlement Agreement has been approved but is not effective without the Zoning Agreement; and Posted on the City's website for anyone to look at. Zoning Agreement Subject of tonight's meeting: Introduction of the Ordinance adopting the Agreement; Describes the operational terms of the City -SLBTS agreement. Why this Agreement? • Benefits to the community: • The agreement applies conditions on facilities specifically excluded by the injunction — ADP - licensed "6 and Unders." Without the Agreement, over 100 SLBTS beds are exempt, today, now. 90 more are not far away from being exempt. • The Agreement stops SLBTS from opening multiple licensed 6 and Unders anywhere in the community. • No other community in the state has this protection. The Agreement attains MORE than Ordinance 2008 -05 allows: No parolees. Dispersion and distancing. Bed caps, and having the bed caps apply to ADP - licensed "6 and Unders" o Settles litigation in a way that: Allows "integral facilities" to be applied again. Allows rest of ordinance to stand to address other operators. Ordinance v.Agreement In the following slides, you'll see text in BLUE. This means that the Agreement's provisions EXCEED what we could have achieved under State law and Ordinance 2008 -05. Zoning Agreement (cont'd) About the Bed Caps: Interim Cap applies unless /until "one per block" dispersion occurs. Final Cap: 48 beds in the rest of NB can only go in MFR districts. 48 beds all subject to same operating standards. Caps apply to ALL TYPES OF BEDS, even ADP - licensed "6 and Unders." j ' Zoning Agreement (cont'd) 11 One Building Per Block SLBTS must disperse so that there is not more than One Building per Block, including other operators; Defines a block (bounded by streets, not by alleys); o No facilities can face each other across the street; A duplex or triplex counts as one building. o Four exceptions. Zoning Agreement (cont'd) Distancing from Other Uses SLBTS cannot place a facility near a public elementary school (must be 1,000' away). SLBTS cannot place a facility near large DSS- licensed day care in the Peninsula Zone (must be 1,000' away). SLBTS cannot place a facility on a street adjacent to: The 36th Street tot lot; or The Marina Park tot lot. Zoning Agreement (cont'd) • No Parolees SLBTS will not accept, house, or treat any person who is a parolee from the California Department of Corrections or its equivalent in any other State or the Federal Bureau of Prisons in any of its facilities located in the City. Second Hand Smoke SLBTS must make good faith efforts to prevent second hand smoke from affecting neighboring residents. May include: The designation of a smoking area at each site, with a device to mitigate or disperse secondhand smoke; An active smoking cessation program made available to all clients; Addressing the complaints of directly- adjacent neighbors when secondhand smoke comes from an SLBTS facility. Zoning Agreement (cont'd) Other operational standards: Comply with City codes on trash; Have off - street parking consistent with City's existing residential standards; Implement Route Plans for transport of clients and staff to and from SLBTS' facilities; Limit deliveries to weekday common business hours; Maintain Quiet Hours: Sundays - Thursdays between 10:00 p.m. and 7:00 a.m.; and Fridays - Saturdays between 11:00 p.m. and 7:00 a.m. Dispose of medical waste, if any, in the proper manner in accordance with the NBMC; and More. Zoning Agreement (cont'd) Other: Incorporates "Villa Way" letter addressing: Office uses; and Parking lot. Explains how /when Agreement could be reopened if City grants another operator other terms; State's the City's assertion that it will comply with HSC § 1 1834.23, provided that SLBTS complies as well; Provides that Zoning Agreement obviates the need for SLBTS to go through Use Permit process. What the Planning Commission Said Planning Commission suggested: Clarify in Section 24E that the Zoning Agreement does not supersede the Settlement Agreement. This was incorporated into the final version. In Section I I A -B, the Planning Commission proposed a simpler way of describing the duration /term of the Agreement. The City discussed this with SLBTS, and proposed an alternative that was amenable to Special Counsel and SLBTS. What the Planning Commission Said Planning Commission suggested: In Exhibit B (Section 8), the Planning Commission asked that SLBTS' client transport vehicles be clearly marked, to allow the City (and the public) to see that they are complying with the Route Plans. This change is not included in the final document, in part to protect the privacy rights of SLBTS patients. In Exhibit B (Section A7), the Planning Commission suggested a change to clarify that only eight homes can be exceptions to the "one building per block" rule and the "no buildings on opposite sides of the same street" rule. This was accepted and is included. What the Planning Commission Said Planning Commission suggested: A typo correction in Exhibit B, Section C I (Most Favored Nation). This was accepted and corrected. "Occupied" versus "provided" beds. In Exhibit B (Section A 1 -4), should refer to beds "occupied" instead of beds provided. This was not acceptable to staff; Special Counsel, and SLBTS, so we did not accept it in this final version — in part due to the inability to enforce nightly bed - checks determining which are occupied and which are not. That the City be certain that the "Facilities" definition includes ALL SLBTS' group residential uses. Special Counsel reviewed this text, and believes that the current "Facilities" definition in the Title 20, which is referred to by the Agreement, does include all types of group residential uses. What the Planning Commission Said Planning Commission suggested: That SLBTS provide some warranty as to how many beds SLBTS currently provides. Because the Agreement supersedes any current count, the current terms within the agreement were deemed appropriate by Special Counsel. When SLBTS has done all it needs to with the 156 beds on the Peninsula and is adding the up to 48 beds outside of the Peninsula Zone, SLBTS should be required to notify the City. Language reflecting this suggestion is in Exhibit B (A.4.). What's Next Tonight's Public Hearing and If approved, 2nd Reading: February 10, 2009 Is' Read i ng Agreements take effect 30 days after February 10, 2009 Interim caps apply; SLBTS begins dispersal; Case dropped, Selna injunction on Integral Facilities dropped. Letter sent asking HUD /DOJ to drop complaint. Why this Agreement? • Benefits to the community: The agreement applies conditions on facilities specifically excluded by the injunction — ADP - licensed "6 and Unders." Without the Agreement, over 100 SLBTS beds are exempt, today, now. 90 more are not far away from being exempt. The Agreement stops SLBTS from opening multiple licensed 6 and Unders anywhere in the community. No other community in the state has this protection. The Agreement attains MORE than Ordinance 2008 -05 allows: No parolees. Dispersion and distancing. Bed caps, and having the bed caps apply to ADP - licensed "6 and Unders" Settles litigation in a way that: Allows "integral facilities" to be applied again. Allows rest of ordinance to stand to address other operators. For More Information City's website: • www.city.newport- beach.ca.us then "Group Homes" • Staff report, both agreements are posted. ® E -mail or call City Staff DI<iff(d�city.newport- beach.ca.us 949- 644 -3002 About the Exceptions To the one building per block standard: 1 12 40th Street and 3960 -80 Seashore. To the no homes on a street bordering another home standard: 6 1 1 0 West Oceanfront will stay across an alley from 61 1 1 Seashore, 4711 Seashore will stay across the street (and down) from 4816 Seashore. 4500 -4504 Seashore will stay across the street (and down at the corner) from 122 A &B 45th Street. Each of these exceptions involve exempted homes, ie the status or movement of one or more ADP - licensed homes exempted from the ordinance by Judge Selna's injunction. I I\ 40th Street, 39th Street Authorized to Publish Advertisements of all kinds including public notices by Decree of the Superior Court of Orange County, California. Number f7,j_4,� I,! D September 29, 1961, and A -24831 June 11, 1963. ILJI jL PROOF OF PUBLICATION 209 STATE OF CALIFORNIA) ) ss. COUNTY OF ORANGE ) I am a Citizen of the United States and a resident of the County aforesaid; I am over the age of eighteen years, and not a party to or interested in the below entitled matter. I am a principal clerk of the NEWPORT BEACH - COSTA MESA DAILY PILOT, a newspaper of general circulation, printed and published in the City of Costa Mesa, County of Orange, State of California, and that attached Notice is a true and complete copy as was printed and published on the following dates: January 17, 2009 declare, under penalty of perjury, that the foregoing is true and correct. Executed on January 20, 2009 at Costa Mesa, California. Signat 23 AM 9= 15 NOTICE OF PUBNC HEARING ZONING AND PUBLIC BENEFIT AGREEMENT WITH SOBER LIVING BY THE SEA NOTICE IS HEREBY GIV EN that on Tuesday, January 27, 2009, M 7:00 p.in. or thereafter, I public hearing will be conducted in the City Council Chambers (Building A) at 33DD Newport Boulevard, Newport Beach, Califor- nia, The City Council of the City of Newport Beach will consider the An application Tor ap- proval of a Zoning and Public Be n of it A g r e e m e n t ('Agreement") between So bar Living By The Sea ('SLBTS') and the City of Newport Beach ('City'). The Agreement entitles the operation of residential care facilities Ithe City while also limiting number of beds that SLBTS may operate City -wide and within West Newport, the Bal- boa Peninsula, and Lido Isle. The Agreement places a cap on beds in facilities otherwise not subject to City reg- ulation under state law. The Agreement contains operational standards applicable to SLBTS' fa cilities. This activity has been determined to be cate. gorically exempt under the requirements of the California Environmental Quality Act (CEQA) un der Class i (Existin@ Facilities). This class of projects has been deter mined not to have a significant effect on the environment and ie exempt from the provi sions of CEQA: This ac tivity, is also covered by the general -rule that r� only to have the Busing a ct on the (of e the Is). It can i yathatrthis act vity will have a significant effect on the environment and it is not subject to CEQA. All Interested parties may appear and present testimony in regard to this application. if you challenge this project in court, you may be limited to raising only those issues you or someone else raised at the public hearing (de- scribed in this notice) or in written corre- spondence delivered to the City. at, or prior to, the public hearing. The agenda, staff 're- port. and environmental documents may be re- viewed at the Planning Department, City of Newport Beach, 3300 Newport Boulevard, Newport Beach. Califor- nia, 92663 or at the City of Newport Beach web - site at www.city. nowpart- haach.ca.us on the Friday prior to the hearing. For more information, call (949) 644 -3002 or e-mail dk)ff Oa city.newport- beach.ce.us. Activity No.: DA2008- 005 Leileal I. Brown City Clerk Published Newport Beach /Costa Mesa Daily Pilot January 17, 2009 Sa719