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HomeMy WebLinkAbout01 - Ohio House - PA2013-198CITY OF NEWPORT BEACH HEARING OFFICER STAFF REPORT February 24, 2014 Hearing Officer Hearing Agenda Item No. 1 SUBJECT: Ohio House (PA2013 -198) 610 36th Street Reasonable Accommodation No. RA2013 -001 APPLICANT: Ohio House, LLC PLANNER: Melinda Whelan, Assistant Planner (949) 644 -3221, mwhelan @newportbeachca.gov PROJECT SUMMARY A reasonable accommodation application requesting relief from the requirements of Section 20.18.020 (Residential Zoning Districts Land Uses and Permit Requirements) of the Newport Beach Municipal Code. The applicant requests that the City allow the continued operation of an existing unlicensed residential care facility for up to 10 clients in recovery from alcohol and /or drug addiction and one resident supervisor in a duplex. The facility is located in the R -2 District, where such uses are not permitted. 1) Conduct a public hearing; 2) Find this project is not subject to the California Environmental Quality Act (CEQA) pursuant to Section 15270 CEQA Guidelines; and 3) Adopt the Resolution No. _ denying Reasonable Accommodation No. RA2013- 001. 1 Reasonable Accommodation No. RA 2013 -001 Ohio House February 24, 2014 Page 2 LOCATION ON -SITE VICINITY MAP 11 ZONING Two -Unit Residential (R- CURRENT USE Residential Care Facility General NORTH 61 1A R -2 Residential SOUTH v FI .601 6,j 616 ),2 616 EAST RT '• bC� •so � d06 � i 611 y e •ytlw `1 �� rte. ro • ••'ice' /� I R -2 Residential f f Ay� Gpq 60� i • r \ �� 06112 GENERAL PLAN ZONING ad.r* J fp Y ••h .yam w M LOCATION ON -SITE GENERAL PLAN Two -Unit Residential (RT) 11 ZONING Two -Unit Residential (R- CURRENT USE Residential Care Facility General NORTH RT R -2 Residential SOUTH I R -2 Residential EAST RT R -2 Residential WEST I R -2 Residential 9 Reasonable Accommodation No. RA 2013 -001 Ohio House February 24, 2014 Page 3 INTRODUCTION Project Setting The subject property is located in the northwesterly area of the City identified as the Balboa Peninsula. This area is an established residential neighborhood containing single - family and duplex properties along the Rivo Alto known as the Canal Tract. The neighborhood is comprised of owner - occupied and rental properties consisting of one and two -story single and two- family dwellings. The site is zoned Two -Unit Residential (R -2), and is developed with a two -story duplex, (one unit per story) with two attached single -car garages. Description of Operations: The property is rented by the applicant/operator of the Ohio House, LLC (Operator) on an annual basis. The term of the current rental agreement expires on May 21, 2014 for the downstairs unit and on July 31, 2014 for the upper unit. The Operator is the owner of Ohio House, LLC (Ohio House). Ohio House operates one similar facility in the City of Costa Mesa. Ohio House is a residential care facility which provides an extended care sober living environment for adults in recovery from alcohol and /or drug abuse. The duplex consists of six bedrooms (three bedrooms in the lower unit and three bedrooms in the upper unit), and accommodates housing for up to 10 adult males and one resident house manager. The facility was established in May 2013 without the required approvals or permits from the City. Individual clients reside at the facility under separate written agreements with the Operator, and are expected to abide by the admission agreement and rules of Ohio House (Attachment B). Under the rules and regulations, clients are expected to abstain from alcohol and drugs, and are subject to drug testing twice a week. Clients are expected to be active in their recovery, attend one 12 -Step meeting everyday for the first 90 days following admission into the facility, and attend and participate in a weekly house meeting. Clients are also expected to maintain and clean their rooms and the dwelling, and complete assigned chores. Clients are required to be working, in school or in a training program. Staffing Application documents indicate the facility has one live -in resident manager. Client Stays Ohio House provides an extended care and transitional sober living environment to persons in recovery from alcoholism and substance abuse after completing a substance 3 Reasonable Accommodation No. RA 2013 -001 Ohio House February 24, 2014 Page 4 abuse treatment program or a detoxification program at an off -site location. Typical client stays are eight months in duration. Curfew and Quiet Hours Curfew hours for clients are 11:00 p.m. Sunday through Thursday, and 1:00 a.m. on Friday and Saturday. Quiet hours are maintained between 10:30 p.m. to 6:00 a.m., daily. Treatment No treatment services are provided on site. Clients attend 12 -step meetings at various locations in Newport Beach and elsewhere. Parking and Transportation Clients are not permitted to have personal vehicles while residing at the facility. The site provides two single -car garages. The applicant reports that the manager has a car and one client has access to a second car to assist in the transportation needs of the other clients. Deliveries Clients are responsible for their own groceries and supplies. No deliveries by outside vendors or service providers are made to the facility. Medical Waste The applicant states that medical waste is not generated on site as drug testing and medical treatment are provided to the clients off site. Background In response to a complaint submitted in July 2013, the Code Enforcement Division confirmed through an inspection of the first floor unit, that it was being used as a sober living facility for six or fewer residents without a license. In the Zoning Code, sober living facilities with six or fewer residents are classified as "Residential Care Facilities, Limited (6 or fewer) Unlicensed" uses. These uses are not a permitted use in the R -2 Zoning District; therefore, the facility is subject to abatement. On July 24, 2013, City staff and the Operator met to discuss the use of the property as an unlicensed residential care facility. 0 Reasonable Accommodation No. RA 2013 -001 Ohio House February 24, 2014 Page 5 During the meeting the Operator provided the following information: • The Operator was previously affiliated with 'The Lodges" an Orange- County based sober living organization • Ohio House was established approximately two years ago in Costa Mesa • The Newport Beach location approximately three months ago • Ohio House does not intend to license its facilities by the State • Newport Beach location is for a maximum five male clients and one house manager • Clients are referred by word of mouth • The Operator does not reside at the property • Usual length of stay for clients is approximately eight months • No treatments are provided on site • Clients do not detox at the house; clients have gone through detox for approximately 30 -90 days prior to entering the house • Neither the house manager, nor the Operator regulate medications to clients; drug testing is done off -site twice a week • Curfew is 11:00 p.m. • Designated smoking area is outside on patio • Rental agreements are individual and signed upon entry into the program • Clients attend meetings off -site usually at the Newport Beach Alano Club On August 16, 2013, the Code Enforcement Supervisor sent a letter to the property owner and the Operator, stating that use of the property as a sober living facility is a violation of the Newport Beach Municipal Code (NBMC) (Attachment C). In order to correct the violation, the property owner and facility operator were directed to cease using the property as an unlicensed residential care facility or apply for a reasonable accommodation within two weeks. On September 16, 2013, the Operator's attorney called Code Enforcement and requested an extension of time to turn in an application until September 20, 2013. On September 20, 2013, an application package was filed. Staff noted that the application request had expanded to include both units of the duplex, upper and lower floor, with an increase to 10 clients and one house manager. In response to staffs inquiries, the Operator, confirmed that the facility occupies both units with 10 clients and one house manager and was expanded in June 2013 prior to the July 24, 2013, meeting with the City. This changed the use to a Residential Care Facility, General (7 or more). On October 17, 2013, planning staff issued a letter requesting additional information in order to complete the analysis of the request for reasonable accommodation (Attachment D). On December 9, 2013, staff issued a second letter as there still was no response from the applicant and gave a deadline of December 13, 2013, to submit the additional information. On December 13, 2013, the applicant provided a complete application package with the additional materials requested. 5 Reasonable Accommodation No. RA 2013 -001 Ohio House February 24, 2014 Page 6 The federal Fair Housing Amendments Act (FHAA), adopted in 1988, prohibits housing discrimination based on a resident's disability. Under the FHAA, it is discriminatory for government entities to refuse to make reasonable accommodations from rules, policies, and practices when such accommodations may be necessary to afford a person with a disability an equal opportunity to use and enjoy a dwelling (42 U.S.C. § 3604(f)(3)(13)). The Ninth Circuit has repeatedly emphasized this requirement, stating that under the FHAA, "unlawful discrimination includes refusal to make reasonable accommodations in rules, policies, practices or services, when such accommodations may be necessary to afford a handicapped person equal opportunity to use and enjoy a dwelling. We have repeatedly interpreted this language as imposing an affirmative duty on landlords and public agencies to reasonably accommodate the needs of disabled individuals." McGary v. City of Portland (91h Cir. 2004) 386 F.3d 1259, 1261 (italics added). Cases interpreting the FHAA have held that a government agency's affirmative duty to grant a requested accommodation arises when the following three conditions are met: (1) the request is made by or on behalf of a disabled individual or individuals, (2) the accommodation is necessary to afford the disabled applicant an equal opportunity to use and enjoy a dwelling, and (3) the request is reasonable. McKivitz v. Township of Stowe (W.D.PA 2010) 769 F.Supp.2d 803, 824. Analysis The applicant requests an exemption from the requirements of NBMC Section 20.18.020. This section of the NBMC contains Table 2 -1, which indicates the uses allowed in each residential zoning district and the permit required to establish the use, if any, and also indicates prohibited land uses. The Ohio House is an unlicensed residential care facility which provides a sober living environment for up to 10 clients in recovery from alcohol and /or drug addiction, and one on -site resident supervisor. This land use is defined as a 'Residential Care Facilities, General (7 or more) Unlicensed "' use. Pursuant to Table 2 -1 of NBMC Section 20.18.020, "Residential Care Facilities, General (7 or more) Unlicensed" are permitted in the RM and RMD (Multiple Residential and Multiple Residential Detached) Zoning Districts only, subject to approval of a conditional use permit issued by a Hearing Officer. The Ohio House is located in an R- 2 Zoning District, where such uses are prohibited. Essentially, the applicant has requested an exception from the requirements that "Residential Care Facilities, General "Residential Care Facilities, General Unlicensed (7 or More Persons)" is defined as: General Unlicensed (Seven or More Persons). A place, site or building, or groups of places, sites or buildings, which is not licensed by the State, and is not required by law to be licensed by the State, in which seven or more individuals with a disability reside who are not living together as a single housekeeping unit (see "Single housekeeping unit ") and in which every person residing in the facility (excluding persons employed as facility staff) is an individual with a disability. Does not include "Group residential" VI Reasonable Accommodation No. RA 2013 -001 Ohio House February 24, 2014 Page 7 (7 or more) Unlicensed" may be located only in the RM and RMD Zoning Districts with approval of a conditional use permit, and the requirement that such uses are prohibited in the R -2 Zoning District. Ordinance No. 2008 -5, adopted by City Council in January 2008, codified the procedures for requesting, reviewing and granting, conditionally granting, or denying all requests for reasonable accommodation in the City of Newport Beach. The Hearing Officer is designated to approve, conditionally approve, or deny all applications for reasonable accommodation. The ordinance also establishes the required findings that must be made to grant approval, and factors the Hearing Officer may consider when making those findings. Pursuant to Section 20.52.070 (D.2) of the NBMC, the written decision to approve, conditionally approve, or deny a request for reasonable accommodation shall be based on the following findings, all of which are required for approval. This section of the NBMC also provides that in making these findings, the review authority may approve alternative reasonable accommodations that provide an equivalent level of benefit to the applicant. Findings Related to Necessity of Accommodation (Finding Nos. 1 and 2): 1. Required Finding: That the requested accommodation is requested by or on the behalf of one or more individuals with a disability protected under the Fair Housing Laws. This finding can be made. The applicant submitted a statement signed under penalty of perjury that every client of the facility is in recovery from alcohol and /or drug addiction. Federal regulations and case law have defined recovery from alcoholism and drug addiction as a disability because it is a physical or mental condition that substantially impairs one or more major daily life activities. U.S. v. Southern Management (4th Cir. 1992) 955 F.2d 914. 2. Required Finding: That the requested accommodation is necessary to provide one or more individuals with a disability an equal opportunity to use and enjoy a dwelling. This finding cannot be made. Consistent with court decisions, the City requires applicants for reasonable accommodation to demonstrate the necessity of the accommodation request by showing disabled residents will receive a therapeutic benefit that directly ameliorates an effect of their handicap at the requested population levels and /or location (also referred to as "affirmatively enhancing the quality of life" of a disabled individual or individuals). It is the applicant's burden to demonstrate that the requested accommodation is necessary. "The `necessary' element requires the demonstration of a direct linkage between the proposed accommodation and the `equal 7 Reasonable Accommodation No. RA 2013 -001 Ohio House February 24, 2014 Page 8 opportunity' to be provided to the handicapped person." Lapid - Laurel, LLC v. Zoning Bd. of Adjustment of the Township of Scotch Plains (3'd Cir. 2002) 284 F.3d 442, 460 In the Lapid- Laurel case, the court found that the necessity element was established as to disabled elderly residents' need to live in a single - family residential area. However, the need for the facility to house the number of clients requested by the facility operator was not demonstrated. The court said that for the operator to show necessity for the size of the facility, the operator would have to show either that: (1) the size of the facility was necessary for the facility's financial viability (which the court appeared to equate with giving the disabled an equal opportunity to use and enjoy a dwelling); or (2) the size of the facility was necessary to provide a therapeutic benefit (and thus ameliorate an effect of the handicap.) With respect to a facility's financial viability, the test to determine whether the proposed facility is financially necessary is "not whether a particular profit- making company needs such an accommodation, but rather do businesses as a whole need this accommodation." Id. at 461 quoting Smith & Lee Associates, Inc. v. City of Taylor (6th Cir. 1996) 102 F.3d 781, 788. In Lapid- Laurel, the court found the facility operator had not demonstrated that the proposed size of the facility was necessary for either financial viability or therapeutic benefit. 284 F.3d at 460 -461. The Ninth Circuit followed the same requirement that a sober living facility operator show a certain number of residents was necessary for financial viability or therapeutic benefit to the residents in order to demonstrate the necessity of a reasonable accommodation in City of Edmonds v. Washington State Building Council, 18 F.3d 802 (9th Cir. 1994). In that case, the court noted that a sober living home had made a preliminary showing of necessity because it had shown that it required six or more residents to ensure financial self- sufficiency, and to provide a supportive atmosphere for successful recovery. 183 F.3d at 803. Similarly, in Advocacy and Resource Center v. Town of Chazy, 62 F.Supp.2d 686 (N.D.N.Y. 1999), the court declined to find that the plaintiff facility operator had established necessity because, in part, the plaintiff offered "only conclusory allegations . .. without any substantiation in the form of financial records demonstrating that the residence would not be economically viable without a larger (population) ." 62 F.Supp.2d at 689 -690. Consistent with court decisions, the City requires that applicants for reasonable accommodation demonstrate the necessity of reasonable accommodation requests by showing therapeutic benefit to clients at the requested population levels and /or location (also referred to as "affirmatively enhancing the quality of life" of a disabled individual or individuals), or by showing that the requested number of clients is necessary for the financial viability of the facility. Although current clients could be benefited by staying in their current sober living environment for the duration of their intended stay, there are several other facilities in 0 Reasonable Accommodation No. RA 2013 -001 Ohio House February 24, 2014 Page 9 the City which provide a sober living environment for 6 or fewer persons and 7 or more persons in duplex structures located in the R -2 Zoning District. The applicant has not submitted any information that would demonstrate that prospective clients of the facility will receive any greater therapeutic benefit from this unlicensed large facility than several other large facilities licensed and authorized by the City within the Balboa Peninsula area. The applicant has not provided adequate evidence or information clearly demonstrating that the size or type of facility requested is necessary for the facility's financial viability or why exemption from the Residential District Land Use Regulations requirements is necessary to make its facilities viable in light of the current market for the type of services it provides. The applicant does state that Ohio House is more affordable than other facilities but does not provide evidence of this. A. Applicant's Statements in Favor of a Finding of Necessity The exemption requested by Ohio House is tailored to allow facility clients to enjoy the housing type of their choice in a residential district comprised of single family and duplex properties. The applicant requests to continue to provide housing for up to 10 disabled individuals and one staff member in two, three - bedroom units. In its application package, the applicant provides information in support of a finding of necessity on pages 4 and 5 in Exhibit 2 of the application package found in Attachment E. B. Staffs Analysis of Whether Applicant's Statements Demonstrate Necessity The statements provided by Ohio House are consistent with court opinions that found living in a single - family or two- family residential neighborhood with other persons in recovery from alcohol and drugs directly ameliorated an effect caused by the recovering alcoholic or addict's particular disability. Although current clients are probably benefited by staying in their current sober living environment for the duration of their current agreement until the expiration of the lease, the applicant has not submitted any information that would demonstrate that prospective clients of the facility will receive any greater therapeutic benefit from a facility of this size. Courts have emphasized the therapeutic benefit of living in a single - family residential neighborhood to other categories of disabled individuals, and the necessity of granting groups of disabled individuals the ability to reside in single - family residential neighborhoods. Examples include: • Smith & Lee Associates, Inc. v. City of Taylor, Mich. (6th Cir. 1996) 102 F.3d 781: "As we noted in the first appeal, elderly disabled citizens have a right to live in Taylor's single - family neighborhoods... [T]o avail themselves of this right, Taylor's elderly disabled need an accommodation" 102 F.3d at 795. • Lapid- Laurel, LLC v. Zoning Bd. Of Adjustment of the Township of Scotch Plains (3`d Cir. 2002) 284 F.3d 442: The court expressly noted its agreement with the Smith & 0 Reasonable Accommodation No. RA 2013 -001 Ohio House February 24, 2014 Page 10 Lee Associates court's statement that the elderly disabled had a right to live in single - family residential zones. "The 'equal opportunity' that Lapid seeks to provide here is the opportunity for handicapped persons to live in a single - family residential neighborhood. . . . With respect to the use variance, it is clear that Lapid demonstrated that a use variance was necessary to achieve an equal opportunity for the elderly handicapped to live in a residential area of Scotch Plains." 284 F.3d at 460. Staff does not question the need for residential care facilities, nor the fact that persons with a disability must have the opportunity to use and enjoy a dwelling. The facility currently provides housing to clients who would need to relocate if this application is not approved. There are several other facilities in the City which provide a sober living environment for 6 or fewer persons and 7 or more persons in duplex structures located in the R -2 Zoning District. The number of sober living beds available in other previously authorized facilities provide ample alternatives to offer potential Ohio House clients with an opportunity to enter the housing type of their choice within the same Balboa Peninsula neighborhood as the subject property. Attachment F provides a current list of all City authorized facilities and number of client beds. Staff has also analyzed whether granting a reasonable accommodation to allow this facility to remain in its current location is necessary to allow potential future disabled clients to use and enjoy the housing type of their choice. (Please see the analysis provided in "Factors for consideration — necessity" below.) Without the accommodation, potential future clients seeking to integrate into a sober lifestyle by living in a sober living environment in a single - family and two- family residential neighborhood are provided this opportunity, as discussed above, through several existing facilities authorized by the City within the Balboa Peninsula. Factors of Consideration - Necessity: NBMC Section 20.52.079 (D.3) provides that the Hearing officer may consider, but is not limited to, the following factors in determining whether the requested accommodation is the minimum necessary to provide the disabled individual an equal opportunity to use and enjoy a dwelling: Necessity Factor A. Whether the requested accommodation will affirmatively enhance the quality of life of one or more individuals with a disability. The applicant's current and potential future clients would be able to live in an R -2 Zoning District with other individuals in recovery from addiction. However, since there other opportunities within this area it is not necessary to create a large facility in the R -2 Zone. Overcrowding of the facility or institutionalization of the neighborhood interferes with the clients' reintegration into society. 10 Reasonable Accommodation No. RA 2013 -001 Ohio House February 24, 2014 Page 11 Necessity Factor B. Whether the individual(s) with a disability will be denied an equal opportunity to enjoy the housing type of their choice absent the accommodation. If the requested accommodation were denied, abatement proceedings could commence against the facility or the Hearing Officer may adjust the abatement date to allow the current Ohio House clients to complete their stay under their current agreement until the expiration of the lease. Any potential future person recovering from addiction has the opportunity to live in one of the several facilities authorized by the City in the Balboa Peninsula area as shown in Attachment F. Necessity Factor C. In the case of a residential care facility, whether the requested accommodation is necessary to make the facility, or facilities of a similar nature or operation economically viable in light of the relevant market and market participants. The applicant has not provided adequate evidence or information clearly demonstrating that the size or type of facility requested is necessary for the facility's financial viability. In addition, the information that has been provided by the applicant does not clearly state why exemption from the Residential District Land Use Regulations requirements is necessary to make its facilities viable in light of the current market for the type of services it provides. The applicant does state that Ohio House is more affordable than other facilities but does not provide evidence of this. Necessity Factor D. In the case of a residential care facility, whether the existing supply of facilities of a similar nature and operation in the community is sufficient to provide individuals with a disability an equal opportunity to live in a residential setting. In February 2014 City staff estimated that there are 335 authorized residential care facility client beds with 201 of those beds currently operating in the 26 open facilities within the City. (See Attachment F "City- Authorized Recovery Facilities ") These residential care facilities within the City include several in R -2 Zoning Districts in the Balboa Peninsula area and could provide a person recovering from addiction with an equal opportunity to live in a sober living environment without granting the accommodation. Findings Related to Reasonableness of Request (Finding Nos. 3 and 4): Even if the applicant provides housing for the disabled, and even if the requested accommodation is necessary, the City is not required to grant a request for accommodation that is not reasonable. Cities may find an accommodation request 11 Reasonable Accommodation No. RA 2013 -001 Ohio House February 24, 2014 Page 12 unreasonable if granting the request: (1) would impose undue financial or administrative burdens on the City, or (2) result in a fundamental alteration in the nature of a City program (sometimes described as undermining "the basic purpose which the requirement seeks to achieve'). U.S. v. Village of Marshall (W.D. Wisc. 1991) 787 F.Supp.872, 878 -879. 3. Required Finding: That the requested accommodation will not impose an undue financial or administrative burden on the City as "undue financial or administrative burden" is defined in Fair Housing Laws and interpretive case law. This finding cannot be made. The applicant states that the clients are not transient, and has reported that the typical length of stay is eight months. To date there has been increased Code Enforcement activity associated with the large facility. Code Enforcement has been provided evidence of parking, littering and noise violations discussed in detail on page 17 of this report. Therefore, allowing the facility to remain at its current location so long as it is necessary to provide disabled individuals with an equal opportunity to use and enjoy a dwelling could impose an undue financial or administrative burden on the City. 4. Required Finding: That the requested accommodation will not result in a fundamental alteration in the nature of a City program, as "fundamental alteration" is defined in Fair Housing Laws and interpretive case law. This finding cannot be made. Staff has found that authorizing the continued use by an operator who established a facility illegally would undermine a basic purpose of the City's General Plan and Zoning Code. Policy LU 6.2.7 of the City of Newport Beach General Plan requires the City to regulate day care and residential care facilities to the maximum extent allowed by federal and state law to minimize impacts on residential neighborhoods. The City adopted Ordinance No. 2008 -5 in order to implement General Plan Policy LU 6.2.7. The Zoning Code is the primary tool utilized to carry out the goals, objectives, and policies of the General Plan. Section 20.10.020 of the Zoning Code sets forth the basic purpose of the Zoning Code, which is intended to "promote the orderly development of the City; promote and protect the public health, safety, peace, comfort, and general welfare; protect the character, social, and economic vitality of neighborhoods; and to ensure the beneficial development of the City." To implement the stated purposes of the General Plan and Zoning Code, Ordinance No. 2008 -5 placed regulations on all groups not living either as single housekeeping units or in a residential care facility classified as "Residential Care Facilities ". These regulations are in place to ensure that the fundamental purposes of the Zoning Code can be achieved, and so that adverse secondary impacts that residential care facilities may 12 Reasonable Accommodation No. RA 2013 -001 Ohio House February 24, 2014 Page 13 have on the surrounding neighborhood can be mitigated. The Zoning Code requires that: • Unlicensed Residential Care Facilities are only allowed within the Multi - Family Residential Zoning Districts and may not operate without the approval of a conditional use permit. • An express purpose of requiring operational standards for conditional use permits in residential zones is to ensure that conditional uses are operated in a manner consistent with federal, state, and local law; and • A required finding to grant approval of a conditional use permit in a residential zoning district is that the operator does not have a demonstrated pattern or practice of operating similar uses in violation of federal, state, or local law. To support the General Plan's purpose of minimizing impacts of residential care facilities on residential neighborhoods, the Zoning Code regulates such facilities to the maximum extent permitted by law, even when granting reasonable accommodations. Waiving operational standards provided by a conditional use permit and permitting a large residential care facility where it is prohibited inhibits the City Council to provide the maximum protection required by the General Plan and would undermine a basic purpose of the General Plan and the Zoning Code. In the case of Ohio House, the operator has demonstrated a practice of operating a facility in violation of local laws. The required use permit finding that the operator has not demonstrated a practice of operating facilities in violation of state and local law could not be made. In the past, a number of residential care facilities have been granted a reasonable accommodation with conditions of approval to operate in a zoning district other than RM or RMD because the Hearing Officer found that permitting the use did not undermine a basic purpose of the Zoning Code or General Plan. The reasonable accommodation was granted in part because the applicants met all the required findings and operational standards required by the NBMC to receive approval of a conditional use permit in a residential zoning district. With the potential negative secondary effects addressed by operational conditions of the reasonable accommodation, and concerns about the impacts created by operators who operated facilities in violation of federal, state or local law addressed by a record without violations, the Hearing Officer found the basic purpose of the conditional use permit requirement was achieved and the purposes of the General Plan and Zoning Code not undermined. i3 Reasonable Accommodation No. RA 2013 -001 Ohio House February 24, 2014 Page 14 In addition to staffs analysis of the relevant basic purposes of the General Plan and Zoning Code, staff analyzed the basic purposes of the Conditional Use Permit requirements in residential zones, as follows: A. Zoning District and Use Permit Considerations 1. Purpose of R -2 Zoning District: Pursuant to Section 20.18.010 of the Zoning Code, the specific purpose of the R -2 (Two -Unit Residential) Zoning District is intended to "provide for areas appropriate for a maximum of two residential dwelling units (i.e., duplexes) located on a single legal lot." Dwellings in all residential zoning districts, including R -2, are intended to house only one single housekeeping unit per dwelling or unit. Over many years of enforcing the City's prohibition on illegal dwelling units, City staff has noted that when more than one single housekeeping unit resides in a single dwelling unit, secondary effects such as increased density, noise, refuse generation, and traffic can result. R -2 neighborhoods developed to house only one or two single housekeeping units per parcel are not intended to absorb the impact of a much higher concentration of residents not living as a single housekeeping unit. However, impacts on surrounding uses can sometimes be mitigated with operational conditions and requirements similar to those that would be applied through a use permit. Because of the large resident population of this six - bedroom facility (up to 10 clients and one resident supervisor), the density of the residents could be similar to some other R -2 duplex units within one building but not similar to a single family residence. However, this density of residents is more comparable to a multi - family residential property. Therefore, granting the requested accommodation would undermine one basic purpose R -2 zoning was put in place to achieve. Building Code and Life Safety Consideration: The State Fire Marshal has made the determination that residential care occupancies with more than six residents have characteristics that require a certain degree of extra protection for the safety of the residents. Pursuant to the provisions of the California State Building Code, facilities providing housing for more than six residents in a building are classified as an R -4 occupancy. This occupancy group includes buildings arranged for social rehabilitation, including alcoholism or drug abuse recovery or treatment for seven or more clients. As such, the building would have to further comply with building code requirements found in the 2013 California Building Code. These include, but are not limited to, vertical and horizontal fire separation walls, fire suppression systems, alarm and detection systems, and unprotected window openings. A complete assessment of the building has not been undertaken to determine what alterations to the building would be necessary to bring it into compliance with requirements for R -4 occupancies. In Reasonable Accommodation No. RA 2013 -001 Ohio House February 24, 2014 Page 15 2. Purpose of Conditional Use Permits in Residential Zones: Section 20.18.020 of the Zoning Code establishes the uses that are allowed within each zoning district and the permits required to establish the use, if any, in compliance with Part 5 of the Zoning Code (Planning Permit Procedures). Pursuant to Section 20.18.020, unlicensed residential care facilities are not permitted in the R -2 Zoning District, and are only permitted in the RM or RMD Zoning District subject to approval of a conditional use permit issued by a hearing officer. Conditional use permits are required for use classifications typically having operating characteristics requiring special consideration so that they may be located and operated compatibly with uses on adjoining properties and in the surrounding area. Section 20.53.030 of the Zoning Code sets forth the purposes of requiring conditional use permits in residential districts. The first stated purpose is: ...to promote the public health, safety, and welfare and to implement the goals and policies of the General Plan by ensuring that conditional uses in residential neighborhoods do not change the character of such neighborhoods as primarily residential communities." The second purpose is: "....to protect and implement the recovery and residential integration of the disabled, including those receiving treatment and counseling in connection with dependency recovery. In doing so, the City seeks to avoid the overconcentration of residential care facilities so that such facilities are reasonably dispersed throughout the community and are not congregated or over - concentrated in any particular area so as to institutionalize that area." B. Staff's Analysis of Whether the Basic Purpose of a Conditional Use Permit is Undermined by Granting the Requested Accommodation When analyzing whether allowing a residential care facility to operate without the operational standards associated with a conditional use permit, staff first considers whether the facility meets the standards required to receive a conditional use permit. These standards were codified to ensure that residential care facilities would be well managed, not overcrowded, and operated in a manner consistent with federal, state, and local laws, and to ensure that operators do not have a pattern or practice of operating similar uses in violation of federal, state, or local law. If the standards can be met, the Hearing Officer may find that the purpose of the conditional use permit requirement would not be undermined by granting the requested accommodation. (See Attachment G for a copy of the development and operational standards, and required findings to grant a conditional use permit in a residential zoning district.) 15 Reasonable Accommodation No. RA 2013 -001 Ohio House February 24, 2014 Page 16 As discussed in the analysis below, staff found that most of the required findings to grant a conditional use permit could have been made for the Ohio House facility, if it were located in a zone that permitted such facilities with approval of a conditional use permit. However, staff is of the opinion that one finding required for approval and issuance of a conditional use permit cannot be made. As noted previously in this report, Ohio House established the facility in May and June 2013 without first applying for and receiving a reasonable accommodation from the City. This is a violation of Section 20.18.030 of the NBMC, which prohibits 'Residential Care Facilities, General Unlicensed" uses in the R -2 Residential Zoning District. In the meeting with City staff on July 24, 2013, the Operator indicated the sober living facility was located only in the lower unit at 610 36`h Street, with five beds and a manger bed, and that this was his only operation in the City. Subsequently, staff became aware that the upper unit was also being used as a part of the facility during initial review of the reasonable accommodation application. The information in the application indicated that the lease for the site to use the upstairs was modified in June 2013 prior to the meeting with City staff and prior to receiving the August 2013 notification from Code Enforcement. Staff is of the opinion that given the violations of the NBMC, allowing Ohio House to continue operating at its current location would undermine one of the basic purposes and operational standards the Conditional Use Permit requirement was put in place to achieve. Specifically, the use does not conform to the operational standards established by Section 20.52.030(G.2.c), as follows: "The names of all persons and entities with an ownership or leasehold interest in the use, or who will participate in operation of the use, shall be disclosed in writing to the City, and these persons and entities shall not have a demonstrated pattern or practice of operating similar facilities in or out of the City of Newport Beach in violation of federal. State. or local law." This operational standard is required for use permits "to ensure that conditional uses in residential zoning districts are operating in a manner that is consistent with federal, state, and local law. . ." (NBMC § 20.52.03.G.2.) When reviewing an application for a conditional use permit in a residential district, the Hearing Officer may approve or conditionally approve a conditional use permit only if all of the required findings can be made. This includes the findings that: (1) the proposed use is consistent with the General Plan, (2) the use is allowed within the applicable zoning district and complies with all other applicable provisions of the Zoning Code and Municipal Code, and (3) the use would not be detrimental to the harmonious and orderly growth of the City, or endanger, jeopardize, or otherwise constitute a hazard to the public convenience, health, interest, safety, or general welfare of persons residing or working in the neighborhood of the proposed use. The General Plan requires that residential care facilities be regulated to the maximum extent allowed by state and federal law. Staff is of the opinion that overlooking the 10 Reasonable Accommodation No. RA 2013 -001 Ohio House February 24, 2014 Page 17 violations of local law by Ohio House, and waiving the conditional use permit operational standards related to those violations are not consistent with the provisions of the General Plan. The establishment of "Residential Care Facility, Large Unlicensed" uses in residential zoning districts where such uses are not permitted without first applying for and receiving a reasonable accommodation would be detrimental to the harmonious and orderly growth of the City. Factors of Consideration — Fundamental Alteration /Reasonableness: Pursuant to Section 20.52.079 (D.4) of the NBMC, the Hearing Officer may also consider, but is not limited to, the following factors in determining whether the requested accommodation would require a fundamental alteration in the nature of a City program: Factor A. Whether the requested accommodation would fundamentally alter the character of the neighborhood. The City has received numerous letters, emails, phone calls, and a neighborhood petition from the neighbors reporting negative secondary impacts to the neighborhood since the Ohio House facility has been established in the neighborhood (Attachment H). The impacts reported include: garages for the property are not available for parking resulting in staff /clients parking their vehicles in the public alley and sidewalk, meetings in the garage at 11:00 p.m., increased traffic, second -hand smoke, littering, and noise including vulgar language. The City's Code Enforcement Division was provided evidence of parking, littering and noise violations and on January 29, 2014, sent a letter informing the Operator of alleged complaints, suggesting correctional actions found in Attachment I. It should be noted that the Newport Beach Police Department has not received any calls for service to the subject property during the existence of the Ohio House. Factor B. Whether the accommodation would result in a substantial increase in traffic or insufficient parking. Parking - The site plan indicates that there are two, one -car garages providing two parking spaces that would allow for the parking of the manager vehicle and a client vehicle. Traffic and Generated Trips — The Institute of Transportation Engineers (ITE) publishes standards for trip generation rates based on the use classification of a site. In the case of a single family dwelling, the standard trip rate is based on 9.52 average daily trips per dwelling and for a duplex is 6.65 average daily trips per unit or 13.3 average daily trips. Trip rates for residential care facilities are based on 2.74 average daily trips per each occupied bed. Based on these 17 Reasonable Accommodation No. RA 2013 -001 Ohio House February 24, 2014 Page 18 standards, a 10 -bed residential care facility plus a bed for the manager is estimated to generate approximately 30.14 average daily trips. Applying this formula, the facility will generate average daily trips in excess of the surrounding duplexes and single family dwellings. Factor C. Whether granting the requested accommodation would substantially undermine any express purpose of either the City's General Plan or an applicable specific plan. General Plan Policy LU 6.2.7 requires the City to regulate day care and residential care facilities to the maximum extent allowed by federal and state law to minimize impacts on residential neighborhoods. The City adopted Ordinance No. 2008 -5 in order to implement General Plan Policy LU 6.2.7. Under the conditions described in the Finding 4 analysis above, staff believes granting the requested accommodation would substantially undermine an express purpose of the General Plan. Factor D. In the case of a residential care facility, whether the requested accommodation would create an institutionalized environment due to the number of and distance between facilities that are similar in nature or operation. There are no other documented facilities similar in nature or operation to the subject facility within this block or any of the immediately adjacent blocks. However, the large facility within a neighborhood with duplexes and single - family dwellings could create an institutionalized environment. 5. Finding: The requested accommodation will not, under the specific facts of the case, result in a direct threat to the health or safety of other individuals or substantial physical damage to the property of others. This finding can be made. A request for reasonable accommodation may be denied if granting it would pose "a direct threat to the health or safety of other individuals or result in substantial physical damage to the property of others." See 42 U.S.C. § 3604(f)(9). This is a very limited exception and can only be used when, based on the specific facts of a situation, a requested accommodation results in a significant and particularized threat. Federal cases interpreting this exception in the FHAA indicate that requested accommodations cannot be denied due to generalized fears of the risks posed by disabled persons. In this case, there are no facts that suggest granting the requested accommodation would result in a significant and particularized threat. SUMMARY: Staff has concluded that all required findings cannot be made due to the violations of local laws and the failure to demonstrate the necessity of this size of a facility within this Balboa Peninsula neighborhood. Additionally, existing and prospective clients have the IN Reasonable Accommodation No. RA 2013 -001 Ohio House February 24, 2014 Page 19 opportunity to live a sober lifestyle in either a single - family or two - family residential neighborhood in one of the several existing facilities authorized by the City within the Balboa Peninsula area. CONCLUSION: Staff is of the opinion that each of the findings required to grant approval of a reasonable accommodation to Ohio House cannot be made based on the information and attachments provided in this report. For this reason, staff recommends that the Hearing Officer deny the request for Reasonable Accommodation No. 2013 -001. ALTERNATIVES: 1. The Hearing Officer may suggest adding conditions to the resolution for denial to allow the Ohio House to continue operating at this location until the expiration of the lease agreements. 2. If the Hearing Officer believes that there are sufficient facts to support the findings for approval, the Hearing Officer should suggest facts in support of the findings and approve the application request and direct staff to return with a resolution for approval. ENVIRONMENTAL REVIEW: Pursuant to Section 15270 of the California Environmental Quality Act (CEQA) Guidelines, projects which a public agency rejects or disapproves are not subject to CEQA review. NOTICING: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). Notice of this hearing was published in the Daily Pilot, mailed to all owners and occupants of property within 300 feet of the boundaries of each of the property locations, and mailed to the applicant at least 10 days prior to this hearing, consistent with the provisions of the NBMC. Notice of this hearing was also posted at each property location at least 10 days prior to this hearing. Prepared by: % Melinda Whelan Assistant Planner Submitted by: O 19 Reasonable Accommodation No. RA 2013 -001 Ohio House February 24, 2014 Page 20 ATTACHMENTS: A. Draft Resolution for Denial B. Ohio House Admission Agreement and Rules C. Code Enforcement Letter Dated August 16, 2013 D. Staff Letter Requesting More Information Dated October 17, 2013 E. Ohio House Application Package F. City Authorized Facilities G. NBMC Section 20.52.030.G and 20.52.030.1-1 H. Correspondence and Neighborhood Petition I. Code Enforcement Letter Dated January 29, 2014 20 Attachment A Draft Resolution For Denial 21 INTENTIONALLY BLANK PAGE 22 RESOLUTION NO. A RESOLUTION OF A HEARING OFFICER OF THE CITY OF NEWPORT BEACH DENYING REASONABLE ACCOMMODATION NO. 2013 -001 FOR A RESIDENTIAL CARE FACILITY LOCATED AT 610 36th STREET AND OPERATED BY OHIO HOUSE, INC. (PA2013 -198) THE HEARING OFFICER OF THE CITY OF NEWPORT BEACH HEREBY FINDS AS FOLLOWS: SECTION 1. STATEMENT OF FACTS. 1. An application was filed by Brandon Stump, as owner of Ohio House, LLC, with respect to property located at 610 36`h Street, and legally described as Lot 6, Block 635 of Canal Section Tract, requesting accommodation from the requirements of Newport Beach Municipal Code (NBMC) Section 20.18.020 (Residential Zoning Districts Land Uses and Permit Requirements). 2. The applicant proposes to allow the continued operation of an existing unlicensed residential care facility for up to 10 clients in recovery from alcohol and /or drug addiction and one resident supervisor in a duplex. 3. The subject property is located within the Two -Unit Residential (R -2) Zoning District and the General Plan Land Use Element category is Two -Unit Residential (R -2). 4. The subject property is located within the coastal zone. The Coastal Land Use Plan category is Two -Unit Residential (RT -D). 5. A public hearing was held on February 24, 2014, in the Corona del Mar Conference Room (Bay E -1st Floor) at 100 Civic Center Drive, Newport Beach. A notice of time, place and purpose of the meeting was given in accordance with the Newport Beach Municipal Code. Evidence, both written and oral, was presented to, and considered by, the Hearing Officer at this meeting. SECTION 2. CALIFORNIA ENVIRONMENTAL QUALITY ACT DETERMINATION. Pursuant to Section 15270 of the California Environmental Quality Act (CEQA) Guidelines, projects which a public agency rejects or disapproves are not subject to CEQA review. SECTION 3. REQUIRED FINDINGS. In accordance with Section 20.52.070 of the Newport Beach Municipal Code, the following findings and facts in support of such findings are set forth: 23 Hearing Officer Resolution No. #### Paqe 2 of 5 Finding: A. The requested accommodation is requested by or on the behalf of one or more individuals with a disability protected under the Fair Housing Laws. Facts in Support of Finding: 1. The Ohio House submitted a statement signed under penalty of perjury that every client of the facility is in recovery from alcohol and /or drug addiction. Federal regulations and case law have defined recovery from alcoholism and drug addiction as a disability because it is a physical or mental condition that substantially impairs one or more major daily life activities. Finding: B. The requested accommodation is necessary to provide one or more individuals with a disability an equal opportunity to use and enjoy a dwelling. Facts Do Not Support The Finding: 1. There are several other facilities in the City which provide a sober living environment for 6 or fewer persons and 7 or more persons in duplex structures located in the R -2 Zoning District. The number of sober living beds available in other previously authorized facilities provide ample alternatives to offer current and potential Ohio House clients with an opportunity to enter the housing type of their choice within the same Balboa Peninsula neighborhood as the subject property. Overcrowding of the facility or institutionalization of the neighborhood interferes with the clients' reintegration into society. 2. In February 2014 City staff estimated that there are 335 authorized residential care facility client beds with 201 of those beds currently operating in the 26 open facilities within the City. These residential care facilities within the City include several in R -2 Zoning Districts in the Balboa Peninsula area and could provide a person recovering from addiction with an equal opportunity to live in a sober living environment without granting the accommodation. 3. The applicant has not provided adequate evidence or information clearly demonstrating that the size or type of facility requested is necessary for the facility's financial viability. In addition, the information that has been provided by the applicant does not clearly state why exemption from the Residential District Land Use Regulations requirements is necessary to make its facilities viable in light of the current market for the type of services it provides. The applicant does state that Ohio House is more affordable than other facilities but does not provide evidence of this. 4. The applicant has not submitted any information that would demonstrate that clients of the facility will receive any greater therapeutic benefit from this unlicensed 10 -15 -2013 7 Hearing Officer Resolution No. #### Paqe 3 of 5 large facility than several other large facilities licensed and authorized by the City within the Balboa Peninsula area. Finding: C. That the requested accommodation will not impose an undue financial or administrative burden on the City as "undue financial or administrative burden" is defined in Fair Housing Laws and interpretive case law. Facts Do Not Support The Finding: 1. The applicant states the clients are not transient, and has reported that the typical length of stay is eight months. However, to date there has been increased Code Enforcement activity associated with the large facility. Code Enforcement has been provided evidence of parking, littering, and noise violations discussed in detail on page 17 of the staff report. This could impose an undue financial or administrative burden on the City. Finding: D. That the requested accommodation will not result in a fundamental alteration in the nature of a City program, as "fundamental alteration" is defined in Fair Housing Laws and interpretive case law. Facts Do Not Support The Finding: 1. Authorizing the continued use by an operator who established a facility illegally would undermine a basic purpose of the City's General Plan and Zoning Code. Policy LU 6.2.7 of the City of Newport Beach General Plan requires the City to regulate day care and residential care facilities to the maximum extent allowed by federal and state law to minimize impacts on residential neighborhoods. The City adopted Ordinance No. 2008 -5 in order to implement General Plan Policy LU 6.2.7. 2. To implement the stated purposes of the General Plan and Zoning Code, Ordinance No. 2008 -5 placed regulations on all groups not living either as single housekeeping units or in a residential care facility classified as `Residential Care Facilities'. These regulations are in place to ensure that the fundamental purposes of the Zoning Code can be achieved, and so that adverse secondary impacts that residential care facilities may have on the surrounding neighborhood can be mitigated. The Zoning Code requires that: 10 -15 -2013 • Unlicensed Residential Care Facilities are only allowed within the Multi - Family Residential Zoning Districts and may not operate without the approval of a conditional use permit. 2.5 Hearing Officer Resolution No. #### Paqe 4 of 5 • An express purpose of requiring operational standards for conditional use permits in residential zones is to ensure that conditional uses are operated in a manner consistent with federal, state, and local law; and • A required finding to grant approval of a conditional use permit in a residential zoning district is that the operator does not have a demonstrated pattern or practice of operating similar uses in violation of federal, state, or local law. 3. To support the General Plan's purpose of minimizing impacts of residential care facilities on residential neighborhoods, the Zoning Code regulates such facilities to the maximum extent permitted by law, even when granting reasonable accommodations. Waiving operational standards provided by a conditional use permit and permitting a large residential care facility where it is prohibited inhibits the City Council to provide the maximum protection required by the General Plan and would undermine a basic purpose of the General Plan and the Zoning Code. In the case of Ohio House, the operator has demonstrated a practice of operating a facility in violation of local laws. 4. Ohio House established the facility in May 2013 without first applying for and receiving a reasonable accommodation from the City, which is a violation of Section 20.18.030 of the NBMC. The Hearing Officer found that given the violation of the NBMC, allowing Ohio House to continue operating at its current location would undermine one of the basic purposes and operational standards the Conditional Use Permit requirement was put in place to achieve. Specifically, the use does not conform to the operational standards established by Section 20.52.030(G.2.c). 5. Overlooking the violations of local law by Ohio House, and waiving the Conditional Use Permit operational standards related to those violations is not consistent with the provisions of the General Plan. The establishment of "Residential Care Facility, General Unlicensed" uses in residential zoning districts where such uses are not permitted without first applying for and receiving a reasonable accommodation would be detrimental to the harmonious and orderly growth of the City. Finding: E. The requested accommodation will not, under the specific facts of the case, result in a direct threat to the health or safety of other individuals or substantial physical damage to the property of others. Facts In Support Of The Finding: 1. A request for reasonable accommodation may be denied if granting it would pose "a direct threat to the health or safety of other individuals or result in substantial physical damage to the property of others." See 42 U.S.C. § 3604(f)(9). This is a very limited exception and can only be used when, based on the specific facts of a situation, a 10 -15 -2013 20 Hearing Officer Resolution No. #### Paqe 5 of 5 requested accommodation results in a significant and particularized threat. Federal cases interpreting this exception in the FHAA indicate that requested accommodations cannot be denied due to generalized fears of the risks posed by disabled persons. In this case, there are no facts that suggest granting the requested accommodation would result in a significant and particularized threat. NOW, THEREFORE, BE IT RESOLVED: The Hearing Officer of the City of Newport Beach hereby denies RA2013 -001. 2. This action shall become final and effective 14 days after the adoption of this Resolution unless within such time an appeal is filed with the City Clerk in accordance with the provisions of Title 20 Planning and Zoning, of the Newport Beach Municipal Code. PASSED, APPROVED AND ADOPTED THIS 241h DAY OF FEBRUARY, 2014. M Hon. John C. Woolley, retired Judge (California Superior Court, Orange County) Hearing Officer for the City of Newport Beach ATTEST: City Clerk 10 -15 -2013 27 INTENTIONALLY BLANK PAGE 22 Attachment B Ohio House Admission Agreement and Rules 29 INTENTIONALLY BLANK PAGE 30 "xhibit 2 - Admission Agreemen, ADMISSION AGREEMENT This agreement is made by and between (hereinafter referred to as "Client" and The Ohio House (collectively referred to as "The Parties "). RECITALS: It is the intent of the Parties to enter into this agreement whereby Client is seeking a clean and sober environment to reside in connection with his continued recovery, and The Ohio House agrees to provide Client with a room so long as Client continues with his sobriety. I. COMMENCEMENT DATE This agreement will commence upon and continue so long as the parties agree on a month to month basis with the rent due and payable in advance on the _ day of the month. II. NATURE OF AGREEMENT This agreement should be considered in accordance with laws pertaining to a Lodgers agreement. Client is fully aware that notwithstanding the Month to Month rental agreement this agreement may terminate without the steps necessary in an Eviction Process for the Unlawful Detention of Client in order to force Client to vacate the residence. This agreement by and between The Ohio House and the Client if terminate automatically upon the breach of the terms and conditions set forth herein will require no further legal action for The Ohio House to reenter and reclaim the room provided to Client. III. CONSIDERATION This agreement shall commence upon the receipt of an initial payment of $ prior to Client being admitted and shall cover the following for a full month and the cost of each service provided below. These services will be the same for each consecutive month so long as the terms and conditions of this agreement are strictly followed: 1) $ Furnished Room /Access to common areas of the House Located at 611 Clubhouse Ave, Newport Beach, California. 2) $ Ride Services PAGE 1 OF 8 31 3) $ Food Card Services "Ride Service" Means that The Ohio House will provide transportation for Client including transportation to and from Work, School, and Outpatient Programs, meetings, grocery store and the like. "Food Card Service" Means that The Ohio House will provide the Client with a debt or gift card in an amount equal to Money paid for said service, but distributed to the Client on a weekly basis. The Ohio House agrees to provide the opportunity to have a safe and sober environment, and will do its part to do so including without limitation removing any of its clients who fail to perform his contract with The Ohio House in accordance with the terms and conditions herein. The Ohio House.does not provide for refunds of services, which shall be paid for each month in advance of services. Should the client for any reason choose not to accept those services after payment, Client hereby acknowledges and agrees that his payment is non - refundable. Client further acknowledges and agrees that should this contract terminate in accordance with section III of this agreement, he waves any right to receive a refund for any unused services in connection with this agreement. IV. CLIENT AGREES THE FOLLOW WILL RESULT IN IMMEDIATE TERMINATION OF THIS AGREEMENT: a. Any criminal activity whatsoever b.. Any possession of Non - approved prescription Drugs, Non - approved over the counter medication, Alcohol, Weapons, or Paraphernalia c. Any violence toward another client, employee or guest. d. Failure to abide by house rules which have been signed and acknowledge in connection with this agreement. PAGE 2OF8 32 V. ASSUMPTION OF RISK Client understands and acknowledges that based on the nature of this agreement that notwithstanding that The Ohio House will make every effort to provide a safe and sober environment that by its very nature The Ohio House is unable to assure the actions and behavior of the other clients with the exception of ordering the removal of said clients upon the discovery of a breach of its agreement with said client. Therefore, Client understands and agrees to assume the risk of and hold The Ohio House harmless for actions of any of its clients including without limitation lost or stolen property, injuries as a result of its clients' negligence and /or intention acts. Client further acknowledges and agrees that The Ohio House makes no warranties and Client agrees that it releases The Ohio House from any and all ordinary negligence that may occur as a result of Client's stay at The Ohio House, VI. IN THE EVENT OF RELAPSE Should Client Relapse Client agrees and acknowledges that he will vacate the residence immediately. At the sole discretion of The Ohio House, it may readmit Client no sooner than 72 hours provided that Client test clean. Should Client be readmitted, Client would be required to sign a new agreement with The Ohio House. VII. COMPLETE AGREEMENT The parties acknowledge and agree that this agreement is the complete agreement and no promises or side agreements were made in connection with this agreement. The Parties further agree and acknowledge this agreement is entered into freely, voluntarily, and without coercion, and the parties fully understand this agreement and its provisions. "CLIENT" "THE OHIO HOUSE" (Signature) (Date) (Signature) (Date) PAGE 3 OF 8 33 (Print Name) (Print Name) RULES • Total abstinence from all mind altering chemicals and drugs, including alcohol. Anyone Caught violating this rule (by the Staff or another client) will be told to leave the house immediately. • Resident agrees to be drug tested a minimum of twice a week. • The Facility Manager must approve any prescription or over - the - counter drug or medication. • For the first ninety days following admission, clients are required to attend at least one Twelve Step meeting every day (including required house meetings). • You are expected, as a part of your recovery, to attend all required house meetings as designated by your house manager • Recovery means taking action, therefore residents are required to work, be in school or in a training program. • Quiet Time is observed daily from 10:30 PM to 6:00 AM daily. • Curfew hours are 11:00 p.m. Sunday through Thursday, and 1:00 A.M. Friday and Saturday. • TV and Lights are turned off at 11:30 p.m. Monday through Thursday. • No overnight guests are allowed, visitors must be approved by Facility Manager. • Smoking is not allowed except in designated smoking areas only. Anyone caught smoking in the bedrooms or house will be asked to leave, terminated and not allowed to return. No exceptions. The Ohio House Initials Client's Initials PAGE 4 OF 8 WN RULES • No overnight passes within the first thirty days of admission. After thirty days clients may request one overnight pass per month. After sixty days clients may request two overnight passes per month. After ninety days, clients may request three overnight passes per month. Overnight passes must be requested at least 24 hours in advance. Bad attitude or failure to do chores is grounds for withholding overnight passes. • Absolutely no stealing will be tolerated (including cigarettes, food and clothes). • Borrowing or loaning money is not allowed. • Get along with and be considerate to fellow residents. • No sexual contact will be allowed upon the premises, • Friends may visit the house for ten minutes with the permission of the house manager. Visitors are confined to the living room and are not permitted in the bedrooms. No visitors after 9:00 p.m. All visitors must check in with and be approved by the manager. No overnight visitors. • All residents must be fully and properly clothed (i.e., shirts and pants or shorts) in the living room, kitchen, and yard. • Everyone needs to help keep the house neat and clean. Chores must be done daily or more often as needed. Chores will be posted and will be changed weekly. There will also be a complete house cleaning every Sunday. • You must do your assigned chores, make your bed and clean your room daily before 9:00 a.m. - period! Dirty laundry must be properly put away (out) of sight at all times. • Clean up after yourself in the kitchen area. Wash, dry and return house utensils to their proper place. The Ohio House Initials RULES Client's Initials • No holding or trafficking of any drug or paraphernalia, or anything else that might suspect to be illegal. PAGE 5OF8 35 • No racist, sexist or foul language or propaganda will be permitted. • No weapons or violence or threats of violence will be permitted. • The Ohio House is not responsible for your personal property. Any personal property not removed at the time of your departure will be disposed of after 30 days. • Residents must respect, take direction from and support the staff. • ANY PERSON BRINGING DRUGS OR ALCOHOL ON THE PREMISES WILL BE ASKED TO LEAVE IMMEDIATELY, AND WILL NOT BE ALLOWED TO RETURN UNDER ANY CIRCUMSTANCES. • THESE RULES WILL BE ADHERED TO ABSOLUTELY TO ENSURE THE SAFETY AND SECURITY OF THE OHIO HOUSE CLIENTS. • RESIDENT HEREBY CERTIFIES HE HAS CAREFULLY READ AND UNDERSTANDS THE RULES OF THE "OHIO HOUSE" AS STATED IN THIS CONTRACT. CLIENT THE OHIO HOUSE DATE OF ADMIT CLIENT DATE DATE HISTORY INTAKE REFERRED BY NUMBER STREET CITY STATE ZIP HOME PHONE ( ) S.S. # - I - _ PAGE 6OF8 3o AGE BIRTH DATE / / MARITAL STATUS CLIENT EMPLOYED BY BUSINESS OCCUPA DO YOU HAVE MEDICAL INSURANCE? YES NO IF YES, NAME OF PRIMARY INSURANCE SUBSCRIBERS ►k"AM S.S. # OF SUBSCRIBER RELA GROUP BENEFIT VERIFICATION PHONE # - MEDICARE MEDICAL CLAIM ID# CONTACT IN CASE OF EMERGENCY RELATIONSHIP REASON FOR GETTING SOBER PHONE # == PAST HISTORY WITH CHEMICALS: EXPERIMENTAL SOCIAL REGULAR USE ADDICTED CHEMICAL OF CHOICE LENGTH OF USE DATE LAST USED OF EACH SUBST PAGE 7OF8 S PRIOR TREATMENT OR 12 STEP EXPERIEN LEGAL INFORMATION: ARRESTS DUls Dips ATTORNEY'S NAME PHONE# PLEASE SIGN TO INDICATE THAT YOU HAVE CAREFULLY READ AND AGREE WITH THE ABOVE STATED INFORMATION. Client Signature Date / Time Witness Date / Time PAGE 8 OF 8 38 Attachment C Code Enforcement Letter Dated August 16, 2013 S9 INTENTIONALLY BLANK PAGE 40 August 16, 2013 The Ohio House Attn: Brandon Stump 61036 th Street Newport Beach, CA 92663 CITY OF NEWPORT BEACH COMMUNITY DEVELOPMENT Subject Property: 610 36th Street (APN: 423 - 084 -05) Newport Beach, CA 92663 Dear Mr. Stump, Thank you for taking the time to meet with Code Enforcement Officer Cassi Palmer and Assistant Planner Melinda Whelan on July 24, 2013, regarding the use of 610 36th Street ( "the Property ") as an unlicensed, residential care facility. As we discussed, the City of Newport Beach ( "the City ") has not authorized the establishment of an unlicensed, residential care facility at the Property. Newport Beach Municipal Code ( "NBMC") Section 20.18.020 prohibits unlicensed, residential care facilities from operating in any R -1, R -BI, and R -2 zoning district. The Property is located in an R -2 (Two -Unit Residential) zoning district, and continued use of the Property as an unlicensed, residential care facility is a violation of NBMC Section 20.18.020. To correct this violation, please take one of the following corrective measures by September 3, 2013: 1. Discontinue the use of the Property as an unlicensed, residential care facility and establish a lawful occupancy of the Property. An inspection of the Property by the City's Code Enforcement Division would be required to verify that the unlawful use has been discontinued. 2. Submit to the Planning Division a complete application for Reasonable Accommodation requesting exemption from NBMC 20.18.020. The Reasonable Accommodation, if approved by the hearing officer through a public hearing process, provides relief for persons with disabilities from the City's Zoning Code requirements. Such application must be submitted on forms available from the City's Planning Division, pursuant to NBMC Section 20.52.070. If the Reasonable Accommodation application is not approved, the use of the Property as an unlicensed, residential care facility must cease. An inspection of 100 Civic Center Drive • Post Office Box 1768 • Newport Beach, California 92658 -8915 Telephone: (949) 644 -3200 • Fax: (949) 644 -3229 • www.newportbeachca.gov 41 The Ohio House August 16, 2013 the Property by the City's Code Enforcement Division would be required to verify that the facility has been closed. For questions regarding the Zoning Code and zoning requirements specific to the Property including allowed uses and the Reasonable Accommodation application, please contact Assistant Planner Melinda Whelan at (949) 644 -3221 or mwhelan @newportbeachca.gov. To discuss this letter or to arrange for a property inspection appointment, please contact me at (949) 644 -3217 or mcosylion @newportbeachca.gov. Sincerely, Matt sylion Code Enforcement Supervisor ON Attachment D Staff Letter Requesting More Information Dated October 17. 2013 Ciao INTENTIONALLY BLANK PAGE ME October 17, 2013 COMMUNITY DEVELOPMENT DEPARTMENT PLANNING DIVISION 100 Civic Center Drive, P.O. Box 1768, Newport Beach, CA 92658 -8915 (949) 644 -3200 Fax: (949) 644-3229 www. newportbeachca. gov NOTICE OF INCOMPLETE FILING VIA EMAIL Kevin P. Gluntz, Esq., LLM. kevin(cDkgl untzlaw.com Application No. • Reasonable Accommodation No. RA2013 -001 (PA2013 -198) Address 610 36th Street (611 Clubhouse) We have reviewed your submitted application and accompanying documentation, and have determined that additional information is necessary in order to complete the analysis of this request per the provisions of Chapter 20.52 of the Newport Beach Municipal Code (NBMC). Please provide the following clarifications and /or additional information. The following documentation is required to complete the application: Application. The request is a reasonable accommodation for relief from the Zoning Code requirements for the residential care facility general 7 or more, unlicensed in an R -2 Zone. Provide a revised application for the one facility including the standard Planning Application which is attached. This application includes applicant, operator and property owner information. It requires the property owner's signature. 2. Factors of Consideration. Please provide additional information pursuant to the attached Zoning Code Section 20.48.170 which is attached. Please include information regarding the vehicles that are used for the facility. Since the occupants do not drive how do are they transporting each day. Are there vans and /or cars coming to pick them up? 3. Clarify address. —there is no record of 611 Clubhouse Address. 4. Supplemental Information - Provide more information on the management in each unit and their relationship to each other. http://citynet.newportbeachca.gov/cdd/Planning_Division/Current Templates /I ncompleteLetter_MasterTemplat e.dotx Tmptt. 02/09/11 J / Melinda Whelan Assistant Planner Par Attachment E Ohio House Application Package 47 INTENTIONALLY BLANK PAGE 42 WBuCorporate Law KEVIN P. GLUNTZ www.akronbusinessattorney.net OMNI ON THE LAKE kevin @keluntzlaw.com TELEPHONE: 216.403.5461 581 BOSTON MILLS ROAD, SUITE 600 Ph: (216) 403 -5461 FAx: 216.274.9031 HUDSON, OHIO 44236 VIA EMAIL TO mwhelan(u%newportbeacltca.goy. Community Development Department Planning Division 100 Civic Center Drive P.O. Box 1768 Newport Beach, CA 92658 -8915 Atm.: Melinda Whalen, Assistant Planner Re: Notice of Incomplete Filing for the facility ( "Facility ") consisting of a single building on real property with two mailing addresses: 610 36th Street, Newport Beach CA and 611 Clubhouse Ave., Newport Beach CA (the "Subject Property "). Ms Whalen: I am writing this letter to submit a response to the Notice of Incomplete Filing you sent to me on October 17, 2013 (the "Notice "). Your Notice identified a number of ways that the Application for Reasonable Accommodation for the Subject Property was deficient. In order to aid you in reviewing our response to the Notice, I have reproduced your requests in bold red below Question 1. Application. The request is a reasonable accommodation for relief from the Zoning Code requirements for the residential care facility general 7 or more, unlicensed in an R -2 Zone. Provide a revised application for the one facility including the standard Planning Application which is attached. This application includes applicant, operator and property owner information. It requires the property owner's signature. See completed, executed "Planning Permit Application" attached as Exhibit 1 (the "Permit App ") and the Request for Reasonable Accommodation attached as Exhibit 2 (the "Accommodation App "). Question 2. Factors of Consideration. Please provide additional information pursuant to the attached Zoning Code Section 20.48.170 which is attached (reproduced in blue below). Please include information regarding the vehicles that are used for the facility. Since the occupants do not drive how do are they transporting each day. Are there vans and /or cars coming to pick them up? 20.48.170 Residential Care Facilities. This section provides standards for residential care facilities granted a conditional use permit in compliance with Section 20.52.030 (Conditional Use Permits in 49 Residential Zoning Districts). A. Smoking in Outdoor Areas. Staff, clients, guests, or any other users of a residential care facility shall not smoke in an area from which the secondhand smoke may be detected on any parcel other than the parcel upon which the facility is located. Applicant does not permit smoking on the Subject Property, other than electronic cigarettes, which Applicant has provided and will provide to Residents and which Applicant will permit to be smoked indoors. B. Management and Operation. 1. The property shall be operated in compliance with applicable State, Federal, and local law and in conformance with the management and operating plan and rules of conduct submitted as part of the application for a conditional use permit or as identified in the conditions of approval for a conditional use permit. 2. Each management and operation plan shall provide a phone number by which the operator may be contacted at all times. Brandon Stump — 949 -554 -8364 3. If applicable, the permittee shall comply with the business license provisions of Title 5 (Business Licenses and Regulations). N/A C. Standards for Residential Care Facilities. In order to ensure that residential care facilities are operating in a manner that is consistent with State and Federal law and established industry standards and to ensure that operators do not have a pattern or practice of operating similar facilities in violation of State, Federal, or local law, the standards listed below shall apply: 1. If the facility is not licensed by the State of California, owners, managers, operators, and residents shall not: a. Provide any services on site if the provision of the service requires licensure of the facility under California law; or Applicant neither has, nor will, perform services for its residents, either on site or off site. b. Provide any services to persons not residing on site. Applicant neither has, nor will perform services for non - residents. 2. If the facility is required to be licensed by the State of California, owners, managers, operators, and residents shall not: a. Provide any services other than those that the facility is authorized and licensed to provide by the State of California; or b. Provide any services to persons not residing on site. Facility not required to be licensed and therefore N /A. See explanations 50 for La. and Lb. 3. The names of all persons and entities with an ownership or leasehold interest in the residential care facility, or who will participate in operation of the facility, shall be disclosed in writing to the City, and the persons and entities shall not have a demonstrated pattern or practice of operating similar facilities in or out of the City in violation of State or local law. As shown on the Lease, David Gross is the owner of the Subject Property and he leases it to the Applicant. The Applicant, chiefly through its President, Brandon Stump, and its on -site Manager, Jack Petti, who lives on site, operates the facility. David Gross does not now nor has he ever owned or operated other property that is used in a similar fashion as the Subject Property. As shown on the affidavit provided as response to Item 4, below, Brandon Stump has never operated similar facilities in or out of the City in violation of State or local law. 4. The operator of the residential care facility shall provide a list of the addresses of all similar facilities in the State owned or operated by the operator within the past five years and shall certify under penalty of perjury that none of the facilities has been found by State or local authorities to be operating in violation of State or local law. All information submitted shall be subject to verification by the Director. See Affidavit attached as Exhibit 3. 5. Off - street parking shall be provided in compliance with Chapter 20.40. (Ord. 2010 -21 § 1 (Exh. A)(part), 2010) — The Subject Property has two (2) garages, each housing 1 car. The Manager has a car that is in one of the garages, and a trusted resident (as determined by the President) has a car in the other garage. Because no other automobiles are allowed, adequate off - street parking has been provided. The Manager drives the Residents to meetings, treatment, employment, etc. 3. Clarify address. — there is no record of 611 Clubhouse Address. — This is the upstairs of the 610 36th Street address. There is mail delivered to 611 Clubhouse so the post office recognizes the address. However, a review of the tax records shows no separate parcel for that address. Accordingly we are sending with these answers a combined Permit App and a combined Accommodation App, as requested by Newport Beach. 4. SSonlemental Information - Provide more information on the management in each unit and their relationship to each other. Both units are managed by Jack Petti, the manager who lives on site, and by Brandon Stump, Applicant's President under substantially similar rules, which are stated both in the House Rules and each Resident's Admission Agreement. 5. Site Plan and Floor Plan: Please provide a site plan showing the property dimensions, the location of the building on the lot, the location and number of on- site 51 parking spaces. I have included a copy of the parcel map of the property, which shows the property dimensions to assist you with preparing a site plan. Also please provide a basic floor plan for the entire structure including all of the beds, rooms and garages /parking labeled. See Plans attached as Exhibit 4. 6. Parolees and Government Referrals: The NBMC restricts any residential use from housing more than one parolee or probationer for monetary or non - monetary compensation. Please provide a verified written statement that the Ohio House. complies with this provision of the NBMC. See Letter from Operator, attached as Exhibit 5. 7. Real Property Lease: What is the term of the lease between the Ohio House, LLC. and the property owner? Please provide a copy of the real property lease agreement entered into between the property owner, David Gross, and the Ohio House, LLC. See Lease of 610 36th Street attached as Exhibit 6 and Lease of 611 Clubhouse Avenue, attached hereto as Exhibit 7, each of which has a term of one year. If you have any questions concerning the matters set forth in this Letter or the attachments/Exhibits, please do not hesitate to call the undersigned at the number listed above. SincerelyYevin LWLt'l Gluntz, Esq. cc: Brandon Stump via email with enclosures 52 Exhibit 1, page 1 of 2 Planning Permit Application Community Development Department - Planning Division 100 Civic Center Drive, P.O. Box 1768, Newport Beach, CA 92658 -8915 "• ,,,;;ej', (949)644 -3204 Telephone (949)644 -3229 Fax www.iiewportbeachca.gov 1. Check Permits Requested: ❑ Approval -In- Concept - AIC # ❑ Coastal Residential Development ❑ Condominium Conversion ❑ Comprehensive Sign Program ❑ Development Agreement ❑ Development Plan ❑ Lot Line Adjustment ❑ Lot Merger 2. Project Add 610 36th 3. ❑ Limped Term Permit - ❑ Seasonal ❑ < 90 day [I >90 days ❑ Modification Permit ❑ Off -Site Parking Agreement ❑ Planned Community Development Plan ❑ Planned Development Permit ❑ Site Development Review - ❑ Major ❑ Minor ❑ Parcel Map s Parcel Beach. CA 92663 ❑ Staff Approval ❑Tract Map ❑ Traffic Study ❑ Use Permit - ❑Minor ❑Condilional ❑ Amendment to existing Use Permit ❑ variance ❑ Amendment -❑Code ❑PC ❑GP ❑LCP ® Other: Reasonable Accommodation Project Description and Justification (Attach additional sheets if necessary): See attached statement Ib`MIR 4. Applicant Name Ohio House LLC I Mailing Address 2775 Mesa Verde Drive East I Suite /Unit Suite #F108 City Costa Mesa I State California Zip F92626 Phone (949) -554 -8364 I Fax (216)- 274 -9031 Email ohiohouserecovery @- mail.com 5. Contact Name I r I Kevin P Gluntz I Mailing Address X7X?W%eXWvXXMX 581 Boston Mills Rd I Suite /Unit NX 600 City F i;yxY- XK Hudson I State I XXIXiM GH zip ' 44 36 Phone I Fax (216)- 274 9031 Email ' ' ' S ` r ' 'N '' 216 -403 546' kevi-nCcr)l 6ttntzlaw -ennrt I 6. Owner Name David A. Gross Mailing Address 1 131 Back Bay Drive I Suite /Unit I I City Newport Beach I State I California Zip F92660 I Phone 949 - 433 -4092 I Fax! F �- Email dgross @NACSl.com Property Owner's Affidavit': (1) (We) David A. Gross I depose and say that (I am) (we are) the owner(s) of the property (ies) involved in this application. (1) (We) further certify, under penalty of perjury, that the foregoing statements and answers herein contained and the information herewith submi4 re in all respects true pd correct to the best of (my) (our) knowledge and belief. / Signature(s): Title: Date: /�/�Z/73 Da id A. Gross DDIMONEAR Signature(s): Title: Date: "May be signed by the lessee or by an authorized agent if written authorization from the owner of record is filed concurrently with the application. Please note, the owner(s)' signature for ParcelfTract Map and Lot Line Adjustment Application must be notarized. Ilcnb. Iclldata %UsersICDDISharedlAdmin% Planning_ DivisionlAppllcationslApplicalion _GuidelineslPlanning Permit Applicatlorl.docx5s Exhibit 1, page 2 of 2 Statement Attached to and made a part of Planning Permit Application For Ohio House, LLC (the "Company" or the "Applicant'). For Property located at 610 36th Street, Newport Beach CA (the "Subject Property "). Item 3. Project Description and Justification. The Applicant is requesting the Planning Permit to obtain a reasonable accommodation with respect to the Subject Property (the "Project'). The Project is a Two -Unit Residential property sitting on a single tax parcel that is designed to house two separate sets of residents (each, a "SubUnit "), one such SubUnit at postal address 610 36th Street, Newport Beach, CA 92663 (the address shown for the tax parcel) and the other SubUnit at postal address 611 Clubhouse Avenue, Newport Beach, CA 92663. Although both SubUnits are managed by one manager that lives on -site in the downstairs SubUnit (Jack Petti) ( "Manager "), there is no internal access point within the Project that would connect the SubUnits. Each SubUnit has 3 bedrooms and the upstairs SubUnit can house up to 6 disabled residents and the downstairs SubUnit can house up to 5 disabled residents and the Manager. so Exhibit 2, page 1 of W 12 Request for Reasonable Accommodation Supplemental Information Required Community Development Department Planning Division 100 Civic Center Drive / P.ClJSwpM9 / Ott SeOh, CA 92658 -8915 (949)644 -3204 Telephone 1 (949)644 -3229 Facsimile www. newportbeachca.aov To aid staff in determining that the necessary findings can be made in this particular case as set forth in Chapter 20.98 of the Municipal Code, please answer the following questions with regard to your request (Please attach on separate sheets, if necessary): Ohio House, LLC Name of Applicant Ohio House If provider of housing, name of facility, including legal name of corporation 610 36th Street 92663 (Mailing Address of Applicant) (City/State) (Zip) 949 -554 -8364 (Telephone) (Fax number) ohiohouserecovery @gmail.com (E -Mail address) 610 36th Street, Newport Beach, CA 92663 423 - 084 -05 (Subject Property Address) Assessor's Parcel Number (APN) Please note that the Assessor's Parcel Number, in addition to the address listed above, also includes the mailing address of 611 Clubhouse Ave, Newport Beach CA 92263 & thus both are included herein. 1. Is this application being submitted by a person with a disability, that person's representative, or a developer or provider of housing for individuals with a disability? See Statement Attached 2. Does the applicant, or individual(s) on whose behalf the application is being made, have physical or mental impairments that substantially limit one or more of such person's major life activities? If so, please state the impairment(s) and provide documentation of such impairment(s). See Statement Attached 3. From which specific Zoning Code provisions, policies or practices are you seeking an exception or modification? See Statement Attached Page 1 of 2 5.55 KCS `a Application Number 4. Please explain why the specific exception or modification requested is necessary to provide one or more individuals with a disability an equal opportunity to use and enjoy the residence. Please provide doctmentation, if any, to support your explanation. 5. Please explain why the requested accommodation will affirmatively enhance the quality of life of the individual with a disability. Please provide documentation, if any, to support your explanation. 6. Please explain ]row the individual with a disability will be denied an equal opportunity to enjoy the housing type of thew choice absent the accommnodation. Please provide documentation, if any, to support your explanation. 7. If the applicant is a developer or provider . of housing for individuals with a disability, please explain why the requested accormnodation is necessary to make your facility economically viable in light of the relevant market and market participants. Please provide documentation, if any, to support your explanation. 8. If the applicant is a developer or provider of housing for individuals with a disability, please explain why the requested accommodation is necessary for your facility to provide individuals with a disability an equal opportunity to live in a residential setting taking into consideration the existing supply of facilities of a similar nature and operation in the conumnmity. Please provide documentation, if any, to support your explanation. 9. Please add any other information that may be helpful to the applicant to enable the City to determine whether the findings set forth in Chapter 20.98 can be made (Use additional pages if necessary.) Page 2 of 2 50 Exhibit 2, page 3 of 12 Statement Attached to and made a part of Response to Notice of Incomplete Filing Request for Reasonable Accommodations Supplemental Information Required For Ohio House, LLC (the "Company" or the "Applicant' For Property located at 610 36th Street, Newport Beach CA, which also has a postal address of 611 Clubhouse Avenue, Newport Beach, CA (the "Subject Property"). Answers to Questions Posed and Requests for Additional Information Question 1. Is this application being submitted by a person with a disability, that person's representative or a developer or provider of housing for individuals with a disability? The Applicant is a provider of housing ( "Housing ") to persons in recovery from alcoholism and substance abuse. Persons in recovery from alcoholism and substance abuse (i.e., not currently addicted to alcohol or drugs) (i.e., "Recovering Persons ") are considered by the applicable regulations to be "disabled." Question 2. Does the applicant, or individuals) on whose behalf the application is being made, have physical or mental impairments that substantially limit one or more of such person's major life activities? If so, please state the impairment(s) and provide documentation of such impairment(s). All residents of the Housing (sometimes referred to herein as the "Residents ") are Recovering Persons. Most Residents are referred after completing a residential substance recovery program. Residents who are not referred directly from a residential treatment program have either completed a treatment program, or have been in recovery from alcoholism and substance abuse after completing a substance abuse treatment program or a detoxification program, or have been sober for a sustained period of time but are in need of safe and sober housing because they currently cannot live independently without fear of relapse. By virtue of being disabled by their former drug and/or alcohol addiction, Residents have been diagnosed (or have themselves realized), that such Residents have an addiction problem because the lives of such Residents have been severely and negatively impacted by such addiction. Often the addiction will lead to an individual not being able to hold a steady job or even maintain their own health and personal hygiene. As long as each such Resident remains sober, his impairments will remain abated. If a Resident relapses (i.e., once again begins using drugs or alcohol, the source of such Residents' disability and impairment), the impairment inevitably and almost immediately reoccurs. While a person is a Resident, the likelihood of relapse remains very low and the impairment will remain abated. By not granting this accommodation, the likelihood of relapse of one or more Residents greatly increases and the impairments reoccur. Question 3. From which specific Zoning Code provision, policies or practices are you seeking exception or modification? The Applicant is requesting the City of Newport Beach, in consistency with Federal law, and acting on behalf of the "disabled ", to grant Applicant (and thus its Residents), a "Reasonable Accommodation" from the City's usual rules, policies and practices, and requesting exemption from NBMC 20.18.020 of the Newport Beach Municipal Code, which in its operation would 57 Exhibit 2, page 4 of 12 prevent Residents from remaining at the Subject Property and thus increasing the likelihood of each such Resident's relapse. This accommodation is necessary to afford the disabled individuals an equal opportunity with other persons (both disabled and non - disabled) to dwell in a residential setting while dealing with their disability. Therefore, we are setting forth the process of NBMC Chapter 20.52 by submitting an application for Reasonable Accommodation through the Planning Division. Question 4. Please explain why the specific exception or modification requested is necessary to provide one or more individuals with a disability an equal opportunity to use and enjoy the residence. Please provide documentation, if any, to support your explanation. As individuals in recovery from alcoholism and substance abuse, through the mutual support provided by the other, similarly situated Residents, present and future Residents seek to live in a family type environment that is specifically and intentionally designed to provide Residents with compassionate and thus therapeutic support during their recovery program. Each Resident is an individual who cannot live alone or worse, live with using persons, without the fear or threat of relapse into active alcoholism and substance abuse. All successful programs for recovery from addiction to alcohol or drugs (including 12 step programs such as Alcoholics Anonymous and Narcotics Anonymous) have, as a key component, the mutual support and accountability provided by others in the program. Many Recovering Persons live in at -risk environments where such persons are surrounded by persons that are using and/or selling alcohol and drugs. Peer pressure, if any, is to use drugs and alcohol, rather than abstain. Conversely, Residents are not only insulated from using persons and negative peer pressure, Residents are subject to positive reinforcement and encouragement from the other Residents, as well as accountability for their actions. If a Resident is not behaving in a way that will help ensure successful continued recovery, the other Residents will attempt to change the behavior and will notify the landlord of such behavior does not correct, at which time such Resident will be in breach of his lease with the Applicant and expelled from the Subject Property. Without the requested accommodation, the Residents would be forced to return to the exact environment in which the alcoholism and substance abuse originated. The requested accommodation is necessary to provide an opportunity for the disabled Residents to live in an environment that provides each Resident the best chance for recovery and gives them sufficient time for personal psychological progress while avoiding alcohol and other substances and the negative influences of using persons. Without the recovery atmosphere, the individual Residents would not be able to live in a therapeutic environment that would be in a residential area, let alone a Two -Unit Residential area. The Housing provides the perfect stopping point between a clinical recovery atmosphere and return to a "normal" living atmosphere at the Resident's permanent residence. As such, habitation at the Subject Property provides a useful and essential public service by providing a safe and sober living environment, and provides the Residents with a safe transition into society and a working environment. m Exhibit 2, page 5 of 12 Question 5. Please explain why the requested accommodation will affirmatively enhance the quality of life of the individual with a disability. Please provide documentation, if any, to support your explanation. As Recovering Persons, present and prospective Residents at the Subject Property seek to live in an environment that provides them with emotional and thus therapeutic support during the recovery process. The Residents are individuals who cannot live independently without the fear or threat of relapse into active alcohol and substance abuse. The requested accommodation is absolutely necessary to provide a unique opportunity for the disabled Residents of Applicant to live in a setting (the Subject Property) that, unlike any other residential setting, provides a self - paced recovery option and gives them sufficient time for personal and psychological growth during the period between clinical intervention and return to prior residence, all while avoiding the use of alcohol and other substances. This is a non - institutional residential environment which the residents willingly subject themselves to written rules and conditions, including the prohibition of alcohol and drug use, intended to encourage and sustain their recovery. Failure to make the requested accommodation would leave Residents without the ability to live in a supportive environment in a residential area, let alone a Two Unit residential area designed for economical living, as most health insurance does not cover the cost of residing at the Subject Property. Residency at the Subject Property provides a useful and often times essential public service by providing a safe and sober living environment, so that Residents can be re- introduced in the world and workplace. Question 6. Please explain how the individual with a disability will be denied an equal opportunity to enjoy the housing type of their choice absent the accommodation? Please provide documentation, if any, to support your explanation. The only difference between Residents and any other persons that would reside at the Subject Property is the Residents' disability and desire to permanently refrain from the use of alcohol and/or illicit or addictive drugs. A person with, for example, a highly allergenic condition would need a very specific environment in which to live, such as a climate controlled house, and the City of Newport Beach would be required to allow it, even if the machinery necessary to maintain such a climate was somewhat visually unattractive and perhaps noisy. A wheelchair bound resident would require a ramp to enter and exit their residence and, no matter how unsightly, the ramp would have to be allowed. Similarly, Residents have a disability that requires them to live in an environment that, instead of being void of allergens, is void of negative influences and the presence of the drug that caused their disability. Absent the accommodation, Residents, unlike any other similarly situated individuals (i.e., disabled or in need of an adapted environment), would have no ability to live in an adapted environment prior to returning to the environment in which such Residents" addiction began and as a direct result of the failure to grant the accommodation would increase the likelihood of worsening the effects of the Residents' disability by greatly increasing the likelihood of relapse. 59 Exhibit 2, page 6 of 12 Question 7. If the applicant is a developer or provider of housing for individuals with a disability, please explain why the requested accommodation is necessary to make your facility economically viable in light of the relevant market and market participants. Please provide documentation, if any, to support your explanation. Applicant is not a developer but is a provider of housing for individuals with a disability. As stated previously, most Residents are referred after completing a residential substance recovery program, which is sometimes covered by insurance (including Ca1Med) and is in all instances incredibly expensive. These Residents (and any other Recovering Persons) have the option, after completion of these types of programs, to: (1) Remain at the residential substance recovery program establishment, albeit in a different capacity (an incredibly expensive alternative); (2) return to the pre - recovery residence (an alternative with an extremely high risk of relapse); or (3) find a good sober house such as that located at the Subject Property (a very economical and highly successful alternative that benefits not only the Residents but society as a whole). The requested accommodation is necessary to allow the disabled Residents of the Subject Property the opportunity to live in an environment that is a self -paced recovery option that gives the Residents sufficient time for personal, psychological growth while avoiding the use of alcohol and other substances before returning to their at -risk environments. Absent the sober environment, the individual residents of Ohio House, LLC would not be able to live in a supportive atmosphere in a residential area, let alone a Two -Unit residential area. Residency at the Housing provides a useful and often times essential public service by providing a safe and sober living environment, so that its Residents can be reintegrated back into society and the workplace. Allowing multiple alcoholics /addicts to live together provides mutual support among them in the recovery process, while lowering the cost of living for people who often have limited incomes. The requested accommodation is necessary for the present and future residents of the Subject Property "to enjoy the housing his or her choice ". Question 8. If the applicant is a developer or provider of housing for individuals with a disability, please explain why the requested accommodation is necessary for your facility to provide individuals with a disability an equal opportunity to live in a residential setting taking into consideration the existing supply of facilities of a similar nature and operation in the community. Please provide documentation, if any, to support your explanation. Attached as Exhibit 1 is the supply of facilities as of May 2011. Applicant believes the number has not changed significantly since that time and, if at all, the number has decreased due to increased monitoring and sanction actions taken by the City of Newport Beach. Applicant further believes that a number of these facilities are offered at a much higher price and that those offered at a similar price to the housing are currently full as Sober Living Houses are in high demand. As such, the accommodation is necessary for all of the reasons previously supplied in this submission. M10 Exhibit 2, page 7 of 12 Question 9. Please add any other information that may be helpful to the applicant to enable the city to determine whether the finding set forth in Chapter 20.98 can be made (Use additional pages if necessary.) I. Ohio House, LLC (the "Applicant') has been the provider of housing at 610 36th Street, Newport Beach CA (a building that also has a postal address at 611 Clubhouse Avenue, Newport Beach, CA) for recovering alcoholics and substance abusers since May 2013 (the "Subject Property "). The Subject Property is divided into two levels (upstairs and downstairs), each with separate access (each level, a "SubUnit"). The Applicant conducts its business in such a way so as not interfere with the quiet, peace and enjoyment of the other residents in the neighborhood. Applicant pledges to provide adequate light, air and privacy to each residential client within the dwelling (each, a "Resident'), without being a nuisance to residents of the neighborhood. As shown on the Admission Agreement attached here to as Exhibit 2, Applicant supplies well - kept housing and reliable services (rent and bills paid) with moderately upscale features in the dwelling. A single resident manager ( "Manager ") for both SubUnits resides on -site in the downstairs SubUnit in order to ensure that the Residents comply with the House Rules, policies and procedures, all of which are part of the Admission Agreement. The enforcement of this Admission Agreement by the Manager also assists in protecting the Newport Beach residents from harmful effects of excessive noise, population density, traffic congestion and other adverse environmental effects. The applicable regulations of Newport Beach allow for the consideration of at least the following four factors, which Applicant believes it has addressed. a. Whether the requested accommodation would fundamentally alter the character of the neighborhood; By limiting the number of Residents at the Subject Property to 6 (in the upstairs SubUnit) and 5 (with the Manager as the sixth occupant) in the downstairs SubUnit, the Applicant has assured that the Subject Property will operate and appear as any other Two Unit residential property located within the R -2 zoning of which the Subject Property is a part. Applicant has noted that, because of the number of Two Unit residences in the area, a number of such residences other than the Subject Property already house 2 to 5 fairly young, single individuals, none of whom are subject to the curfew restrictions, restrictions as to visitors and lights out restrictions to which Residents are subject. As such, the neighborhood is hardly even aware of the existence of the Residents and the make -up of the Housing actually improves the character of the neighborhood if it affects it at all. b. Whether the accommodation would result in a substantial increase in traffic or insufficient parking; The Applicant only allows two automobiles at the Subject Property, 1 automobile in each of 2 internal garages at the Subject Property and thus the Applicant does not increase the insufficiency of parking in Newport Beach at all. One such automobile is owned and operated by the Manager and 1 automobile is for a well - trusted Resident. The Manager assists in the transportation needs of the other Residents, who also walk and use bicycles to get to treatment, 01 Exhibit 2, page 8 of 12 places of employment and other destinations. In addition, as shown on the Admission Agreement, Residents have very limited rights to entertain visitors, if at all, and all such visitors are subject to the same restrictions while on the Subject Property as are Residents. Given the foregoing and the current make -up of the neighborhood, the Housing actually contributes less to the traffic in the neighborhood and uses less parking then many other Two Unit residences located in the neighborhood. c. Whether granting the requested accommodation would substantially undermine any express purpose of either the City's General Plan or an applicable specific plan; and Granting the accommodation would not undermine any of the purposes of the City's plans. The City aspires to be a place where those living within the City obey its laws. The Admission Agreement provides for immediate removal of any Resident who does not abide by the City's laws. The City undoubtedly desires residents that contribute to the positive aura the City aspires to project. The Residents all aspire to be on a path of continuous improvement, and the Applicant, by its enactment and enforcement of a strict set of rules for the Housing, reinforces and helps to ensure the continuous improvement of Residents. The Applicant is also well aware that the City has experienced the following with respect to sober living facilities similar to that being operated at the Subject Property, which the applicable regulations are designed to avoid: • Changes in the residential character of the neighborhood and Traffic congestion — Addressed previously • Noise, including Profanity and lewd speech— The Admission Agreement contains restrictions forbidding these types of behaviors and the Manager assures that these restrictions are adhered to. In addition, Brandon Stump, the President and Founder of Applicant, visits the Subject Property to check on the Residents and touch base with the Manager several times a week, if not every day in the week, to make sure his rules are being adhered to. Residents are forbidden from using lewd language and a 10 PM lights out curfew is enforced. • Secondhand smoke — Residents may not smoke at the Subject Property other than electronic cigarettes that are provided to any requesting Resident by the Applicant. • Excessive trash produced and Excessive debris on surrounding sidewalks — Because Residents may only congregate on the back porch and because the Manager and the President make sure there are plenty of waste receptacles on the Subject Property and that such receptacles are used, this has not been an issue nor will it. Applicant respectfully requests the City to note that the City has received no complaints about any of the foregoing for the Subject Property. Because the Applicant has designed the Housing in a manner to comply and make certain that the fundamental purposes of Zoning Codes are achieved so that adverse secondary impacts from MIJ Exhibit 2, page 9 of 12 the Housing will not occur at all and will not have any impact on the surrounding neighborhood and because the Subject Property will operate in a manner that is consistent and compatible with adjoining and surrounding properties, permitting the Requested Accommodation would not undermine the basic purpose of this portion of the City's zoning program. d. In the case of a residential care facility, whether the requested accommodation would create an institutionalized environment due to the number of and distance between facilities that are similar in nature or operation. Because Applicant believes there are very few, if any, other sober living facilities in the area immediately adjacent to the Subject Property and because the Applicant's Policies and Procedures applicable to the Housing, which are designed make the Housing and its Residents the most legally compliant of the City's citizens, the Requested Accommodation would in no way create an institutionalized environment in the neighborhood surrounding the Subject Property.. IL Summary - Since the Applicant has been in operation, not a single Resident has been charged with a crime, nor has there been any unaddressed complaints from neighbors and no police contact at the Subject Property or otherwise involving the Housing or the Residents. Allowing the Applicant to operate in this Two Unit district will not jeopardize the public health, safety, peace, morals, comfort or welfare of the neighbors, nor will it substantially impair or diminish property values in the neighborhood. Our goals are to provide a non - institutional residential environment in which the Residents willingly subject themselves to written rules and conditions, including prohibition of alcohol and drug use, extremely early curfews and severe restrictions on such Residents' pre- tenancy lifestyle. Each Resident's willingness to be subject to these regulations only underscores their determination to remain sober and law- abiding. Residents are encouraged to sustain their recovery by encouraging one another lead a life of sobriety. Certainly, for people with drug and alcohol problems, sober housing has been found to be the best way to maintain sobriety. Residents have a mutual goal of keeping each other sober and otherwise making good decisions and acting in a mature, adult manner. This all goes toward helping the neighborhood retain its residential character. Ohio House's President is willing to testify under the penalty of perjury that every resident at the facility is in recovery from alcohol and/or drug addiction. Federal regulations and case law have defined recovery from alcoholism and drug addiction as a disability, because it is a physical or mental condition that substantially impairs one or more major life skills. Allowing the Accommodation means Residents will be able to live in a dwelling with other individuals in recovery from addiction in an R -2 District. This is a situation that can affirmatively enhance the quality of life of a person in recovery from addiction. Applicant pledges not to overcrowd the dwelling or interfere with the neighborhood as our Residents re- integrate into society. There is no known licensed or unlicensed residential care facilities in the area that Applicant has observed. Applicant's request for only five resident clients plus on supervisory staff in a four bedroom dwelling further reduces the likelihood that "neighborhood institutionalization" will occur or the facility overcrowding will interfere with the neighbors enjoyment of their own rM Exhibit 2, page 10 of 12 residences. Applicant pledges to provide well -kept housing and reliable services (rent and bills paid) with moderately upscale features in the Housing. A resident manager, with the assistance of President Brandon Stump making frequent visits, ensures that the Residents comply with the house rules. The Applicant pledges to provide adequate light, air and privacy to each Resident without being a nuisance to residents of the neighborhood and to protect neighbors from harmful effects of excessive noise, population density, traffic congestion and other adverse environmental effects. The Housing will operate in a manner that is consistent and compatible with adjoining and surrounding properties. Finally, the Subject Property presents the following characteristics: 1. Very limited resident client capacity- five to six beds only. 2. Live -in- resident supervisor, constant resident supervision provided on a one -to -five ratio. 3. Constant visits from Applicant's President to ensure Manager is doing his job and Residents are in compliance. 4. A one strike policy — one offense and you are out — no 2 "d chances given. 5. Number of cars allowed (2) along with a garage to house 1 of these cars means no parking or traffic problems.. 6. No other residential care use that we are aware of within a two -block area. 7. No complaints received by the City in relation to any residential care use at this location_ 8. Ohio House management pledges vigilance to avoiding adverse secondary impacts such as noise, overcrowding, excessive second - hand - smoke, and unruly behavior by residents to the detriment of neighbors. 9. Quiet Hours of l Opm to 8:00am including television use. See House Rules, attached on the following page. For all of the foregoing reasons, the Applicant respectfully requests that the Requested Accommodation be granted. 04 Exhibit 2, page 11 of 12 OHIO HOUSE RULES • No cars allowed to be parked at or around the facility. Residents must use a taxicab or obtain a ride from the facility manager, who shall have the only vehicle allowed at the facility. • Total abstinence from all mind altering chemicals and drugs, including alcohol. Anyone Caught violating this rule (by the Staff or another client) will be told to leave the house immediately. • Resident agrees to be drug tested a minimum of twice a week. • The Facility Manager must approve any prescription or over - the - counter drug or medication. • For the first ninety days following admission, clients are required to attend at least one Twelve Step meeting every day. • You are expected, as a part of your recovery, to attend all required house meetings as designated by your Facility Manager. • Recovery means taking action, therefore residents are required to work, be in school or in a training program. • Quiet Time is observed daily from 10:30 PM to 6:00 AM daily. • Curfew hours are 11:00 p.m. Sunday through Thursday, and 1:00 A.M. Friday and Saturday. • TV and Lights are turned off at 11:30 p.m. Monday through Thursday. • No overnight guests are allowed, visitors must be approved by Facility Manager. • Smoking is not allowed other than electronic cigarettes supplied by the Facility Manager. Anyone caught smoking in the bedrooms or house or on the facility property will be asked to leave, terminated and not allowed to return. No exceptions. • No overnight passes within the first thirty days of admission. After thirty days clients may request one overnight pass per month. After sixty days clients may request two overnight passes per month. After ninety days, clients may request three overnight passes per month. Overnight passes must be requested at least 24 hours in advance. Bad attitude or failure to do chores is grounds for withholding overnight passes. • Absolutely no stealing will be tolerated (including cigarettes, food and clothes). • Borrowing or loaning money is not allowed. • Get along with and be considerate to fellow residents. • No sexual contact will be allowed upon the premises. 05 Exhibit 2, page 12 of 12 • Friends may visit the house for ten minutes with the permission of the house manager. Visitors are confined to the living room and are not permitted in the bedrooms. No visitors after 9:00 p.m. All visitors must check in with and be approved by the manager. No overnight visitors. • All residents must be fully and properly clothed (i.e., shirts and pants or shorts) in the living room, kitchen, and yard. • Everyone needs to help keep the house neat and clean. Chores must be done daily or more often as needed. Chores will be posted and will be changed weekly. There will also be a complete house cleaning every Sunday. • You must do your assigned chores, make your bed and clean your room daily before 9:00 a.m. - period! Dirty laundry must be properly put away (out) of sight at all times. • Clean up after yourself in the kitchen area. Wash, dry and return house utensils to their proper place. • No holding or trafficking of any drug or paraphernalia, or anything else that might suspect to be illegal. • No racist, sexist or foul language or propaganda will be permitted. • No weapons or violence or threats of violence will be permitted. • The Ohio House is not responsible for your personal property. Any personal property not removed at the time of your departure will be disposed of after 30 days. • Residents must respect, take direction from and support the staff, including the Facility Manager. • ANY PERSON BRINGING DRUGS OR ALCOHOL ON THE PREMISES WILL BE ASKED TO LEAVE IMMEDIATELY, AND WILL NOT BE ALLOWED TO RETURN UNDER ANY CIRCUMSTANCES. • THESE RULES WILL BE ADHERED TO ABSOLUTELY TO ENSURE THE SAFETY AND SECURITY OF THE OHIO HOUSE CLIENTS. • RESIDENT HEREBY CERTIFIES HE HAS CAREFULLY READ AND UNDERSTANDS THE RULES OF THE "OHIO HOUSE" AS STATED IN THIS CONTRACT. 00 Exhibit 3, page 1 of 1 AFFIDAVIT STATE OF CALIFORNIA COUNTY OFO SS Now comes Brandon Stump, affiant, and, being duly sworn, hereby states the following: He has personal knowledge of the subject matter of this Affidavit. 1. He has never owned or operated a facility that has been found by State or local authorities to be operating in violation of State or local law. Further, affiant sayeth naught. Br on Stump Sworn to and subscribed in my presence this day of " 20 1 Notary Public. State of California My commission expires�r (typed or printed name) TODD F. JACK Commitalon ♦ 1965591 -i Notary Public - California Oranpa County My Comm. Expires Jul 20, 2016' 07 INTENTIONALLY BLANK PAGE 02 4' w M 1 �J 5 W Z n✓ V J Ct1 Q. c� Exhibit 4, page 1 of 3 -.Site Plan �1 of 3 3h--- STREET W � RKST �_L DDR,, � ARAC1 'jARf�1 F- :w a' PRO PO SE "D - SMt7k ANC( A4ZE 15 GLO54I� -AVE . S 4' 09 E. A F d 0 z k Exhibit 4, I I 2 of 3 - Floor Plan for 610 36th Street Cwsv 4nsc -AvE . (z. of 3) 70 Q Exhibit 4, page 3 of 3 - Floor Plan for 611 Clubhouse Avenue (3 or 3) p E 4' D 3TEn Tp ZND rLDOR r 0 M I I Mn rt-::R BEDRDOM 3EDRo?M D T LiV)mC -( RED" GJT"DGoR. PA -T_!O tCWSR �E -Av DIMIN&I ROOM M 4Jo- x 4' 71 INTENTIONALLY BLANK PAGE 72 Exhibit 5, page 1 of 1 �UHIOHOUSE MELINDA WHELAN COMMUNITY DEVELOPMENT DIRECTOR COMMUNITY DEVELOPMENT DEPARTMENT PLANNING DIVISION 3360 NEWPORT BOULEVARD BUILDING C NEWPORT BEACH, CA 92663 BEAR MISS WHELAN, THIS ACTS AS A WRITTEN STATEMENT ACKNOWLEDGING THAT OHIO HOUSE, LLC. IS IN COMPLIANCE WITH NBCM REGARNING PAROLEES, PROBATIONERS ANI 61YERNMENT REFERRALS. WE DO NOT HOUSE MORE THAN ONE PAROLEE OR PROBATIONER, WHETHER FOR MONETARY OR NON-MONETARY COMPENSATION. RESPECTFULLY YOURS, BRANDON STUMP FOONBER (949 )554 -8364 WWW.0HI0- HOUSE.COM OH10HOUSE IN 2115 REM VIllE 11 EUT SIITE *F101 lull "I USTI NESL v 12ili www.11i1-Hu INTENTIONALLY BLANK PAGE 74 Exhibit 6, page 1 of 6 - Lease 610 36th Street CALIFORNIA COMMERCIAL LEASE AGREEMENT ® .� ASSOCIATION " (CAM Form CL, Revised 4/13) ®Ir OF REALTORS Date (For reference only): May 20, 2013 David Gross (Landlord") and 1'TenanY')agree as follows: 1. PRgPERTY: Landio��d rents Tenanrpt and Tenant rents from Landlord, the real property and Improvements described as: (•Premises which (y /p 3r 1 T rccf- comprise approximately lop % of the total square footage of rentable space in the entire property. See exhibit for a further description of the Premises. _ 2. TERM: The tern begins on (date) J ("Commencement Date), (Check A or B): / Z 6 U ❑ AM Q( PM. Any holding over after the A. Lease: and shall terminate on (date) 2. O / �a�y term of this agreement expires, with Lan s nsent, s a create a month4D -41 on tenancy at ether may terminate as specified in paragraph 26. Rent shall be at a rate equal to the rent for the immediately preceding month, payable in advance. Ali other terms and conditions of this agreement shall remain in full force and effect. ❑ B. Monthto-nonth: and continues as a mont"D -month tenancy. Either parry may terminate the tenancy by giving written notice to the other at least 30 days prior to the intended termination date, subject to any applicable laws. Such notice may be given on any date. ❑ C. RENEWAL OR EXTENSION TERMS: See attached addendum 3. BASE RENT: A. Tenant agrees to pay Base Rent at the rate of (CHECK ONE ONLY:) ❑ (1) $ per month, for the term of the agreemenL ❑ (2) $ per month, for the first 12 months of the agreement Commencing with the 131h month, and upon expiration of each 12 months thereafter, rent shall be adjusted accerding;to any Increase In the U.S. Consumer Price index of the Bureau of Labor Statistics of the Department of labor for Al Urban Consumers:CCPI °) for (the dry nearest the location of the Premises), based on the following rnu a: ase em will m—uldplied by . a most current CPI preceding the first calendar month during which the adjustment is to take effect, and divided by the most recent CPI preceding the Commencement Date. In no event shall any adjusted Base Rent be less than the Base Rent for the month immediately preceding the adjustment If the CPI is no longer published, then the adjustment to Base Rent shall be based on an alternate index that most closely reflects the CPI. (3) $ 2(060 per month for the period commencing 3 Z / 'Jy/ and ending d PFV/ and $ t.F 4 O Per month for the period commencing and ending and $ per month for the period commenting and ending ❑ (4) In amordanm with the atached rent schedule. ❑ (5) Other. B. Base Rent is payable in advance on the 1st (or JV ) day of each calendar month, and is delinquent on the next day. C. If the Commencement Date falls on any day other than the first day of the month, Base Rent for the first calendar month shall be prorated based on a 30 -day period. If Tenant has paid one full month's Base Rent in advance of Commencement Date, Base Rent for the second calendar month shall be prorated based on a 30-day period. 4. RENT: A. Definition: ( "Reny') shall mean all monetary obligations okTenant to landlord under the temps of this agreement, excepptt sec riry eposit B. Payment Rem shell be paid to (Name) A i A �R 6 T L S io L3oa' lB �e � at (address) 7 e A d rat env other hauuw" ayc.nucu v7 w .......... ... ........y C. riming: Base Rent shall be paid as Specified in paragraph 3. All other Rent shall be paid In 30 days after Tenant is billed by Landlord. 5. EARLY POSSESSION: Tenant Is entitled to possession of the Premises on �� %O/ 2 / If Tenant is in-possession prior to the Commencement Date, during this time (I) ena is not obligated to pay Base Rem, and (IQ Tenant ❑ is ❑ is not obligated to pay Rent other than Base Rent Whether or not Tenant is obligated to pay Rent prior to Commencement Date, Tenant Is obligated to comply with all other terms of this agreement �� 3 6. SECURITY DEPOSIT: A. Tenant agrees to pay Landlord $ .Od as a security deposit. Tenant agrees not to hold Broker responsible for Its return. (IF CHECKED:) 11 if Base Rent inadasas during the term of this agreement Tenant agrees to increase security deposit by the same proportion as the increase in Bass Rent B. All or any portion of the security deposit may be used, as reasonably necessary, to: (1) are Tenant's default in payment of Rent, late charges, non - sufficient funds ("NSF) fees, or other sums due; (IQ repair damage, excluding ordinary wear and tear, caused by Tenant or by a guest or licensee of Tenant (III) broom dean the Premises, if necessary, upon termination of tenancy; and (tv) cover any other unfulfilled obligation of Tenant. SECURITY DEPOSIT SHALL NOT BE USED BY TENANT IN LIEU OF PAYMENT OF LAST MONTH'S RENT. If ell or any pardon of the security deposit is used during tenancy, Tenant agrees to reinstate the total security deposit within 5 days after written notice is delivered to Tenant Within 30 days after Landlord receives possession of the Premises. Landlord shall: (Q furnish Tenant an itemized statement indicating the amount of any security deposit received and the basis for its disposition, and (i) return any remaining portion of security deposit to Tenant- However, if the landlord's only claim upon the security deposit is for unpaid Rent, then the remaining portion of the security deposit, after deduction of unpaid Rent shall be retuned within 14 days after the Landlord receives possession. C. No interest will be paid n security deposit, unless required by local ordinance. /�yy Landlord's Initials ( U ) Tenant's Initials d 3 u ®nroiwx ®vmhumv ® 2013, California Association of REALTORS®, Inc. Reviewed by Date CL REVISED 4/13 (PAGE 1 of 6) COMMERCIAL LEASE AGREEMENT (CL PAGE 1 OF 6) Agent Shaun Hurley Phone: 949.240.7979 Fax: 949.240.5995 Prepared using zipForm®software Broker. First Team Real Estate 32451 Golden Lantern #210 Laguna Niguel CA 92677 715 Exhibit 6, page 2 of 6 - Lease 610 36th Street Premises: 1--ID 34, t� ST ✓et T Date may 20, 2013 7. PAYMENTS: TOTAI DIIF PAYMENT RF . IV n RAI A_Nf1F 1751 IF DtIF DATE A. Rent From I 17 To G z I $ 2 (6 00 $ ZC00 $ r'i 5 -00 oat Data B. Security Deposit .......................... $ /S00 $ S00 $ 0 L Qwrr+,rn•K C. Other. D. Other. $ tegory E. Total: ... ............................... $ $ $ 8. PARKING: Tenant's entitled to t � a v&!� unreserved and reserved vehicle parking spaces. The right to parking p is is not included in the Base Rent charged pursuant to Paragraph 3. If not included in the Base Rent the parking rental fee shall be an additional $ per month. Parking space(s) are to be used for parking operable motor vehicles, except for bailers, boats, campers, buses or trucks (011her than pick-up trucks). Tenant shall park in assigned space(s) only. Parking space(s) are to be kept dean. Vehicles leaking oil, gas or other motor vehicle fluids shall not be parked in parking spaces or on the Premises. Mechanical work or storage of inoperable vehicles is not allowed in parting space(s) or elsewhere on the Premises. No overnight pa ng is pemh 9. ADDITIONAL STORAGE Storage is permitted as follows: rllo th..f r de S-Fe v cue The right to additional storage space ❑ is R( is not Included In the Base Rent charged pursuant to pars ph 3. If not Included In Base Rem, storage space shall be an additional $ -& .1 per month. Tenant shall store only personal property that Tenant owns, and shall not store property that is claimed by another, or in which another has any right title, or interest Tenant shall not store any Improperly packaged food or perishable goods, flammable materials, explosives, or other dangemus or hazardous material. Tenant shall pay for, and be responsible for, the dean -up of any contamination caused by Tenants use of the storage area. 10. LATE CHARGE; INTEREST; NSF CHECKS: Tenant acknowledges that either late payment of Rent or issuance of a NSF check may cause Landlord to incur costs and expenses, the exact amount of which are extremely difficult and impractical to determine. These costs may Include, but are not limited to, processing, enforcement and accounting expenses, and late charges imposed on Landlord. If any Installment of Rent due from Tenant is not received by Landlord within 5 calendar days after date due, or if a check is returned NSF, Tenant shall pay to Landlord, respectively, $ 10 D . o b as late charge, plus 10% interest per annum on the delinquent amount and $25.00 as a NSF fee, any of which shall be deemed additional Rent. Landlord and Tenant agree that these charges represent a fair and reasonable estimate of the costs Landlord may incur by reason of Tenerife late or NSF payment. Any late charge, delinquent interest, or NSF fee due shall be paid with the current Installment of Rent. Landlord's acceptance of any late charge or NSF fee shall not constitute a waiver as to any default of Tenant. Landlord's right to collect a Late Charge or NSF fee shall not be deemed an extension of the date Rent is due under Paragraph 4, or prevent Landlord from exercising any other rights and remedies under this agreement, and as provided by taw. 11. CONDITION OF PREMISES: Tenant has examined the Premises and acknowledges that Premise is dean and in operative condition. with the following exceptions: Items listed as exceptions shall be dealt with in the following manner. 12. ZONING AND LAND USE: Tenant accepts the Premises subject to all local, state and federal laws, regulations and ordinances ('Lam'). Landlord makes no representation or warranty that Premises are now or in the future will be suitable for Tenant's use. Tenant has made Its own Investigation regarding all applicable Laws. 13. TENANT OPERATING EXPENSES: Tenant agrees to pay for all utilities and services directly billed to Tenant 14. PROPERTY OPERATING EXPENSES: A. Tenant agrees to pay its proportionate share of Landlord's estimated monthly property operating expenses, including but not limited to, common area maintenance, consolidated utility and Service bills, Insurance, and real property taxes, based on the ratio of the square footage of the Premises to the total square footage of the rentable space in the entire, property. OR B. (If checked) Paragraph 14 does not apply. /I 15. US : The Premises are for the sole use as �p 7 ✓ r r r .ta 4 L dJUI yoA! /4-1 �.vT No other use is permitted without Landlord's prior written consent If any use by nt causes an lncrease in the premium on Landlord's existing property Insurance, Tenant shall pay for the Increased oosL Tenant will comply with all Laws affecting its use of the Premises. 16. RULESIREGULATIONS: Tenant agrees to comply with all rules and regulations of Landlord (and, if applicable, Owners Association) that are at any time posted on the Premises or delivered to Tenant Tenant shall not, and shall ensure that guests and licensees of Tenant do not, disturb, annoy, endanger, or interfere with other tenants of the building or neighbors, or use the Premises for any unlawful purposes, Including, but not limited to, using, manufacturing. selling, storing, or transporting Illicit drugs or other contraband, or violate any law or ordinance, or committing a waste or nuisance on or about the Premises. 17. MAINTENANCE: A. Tenant OR [ (If checked, Landlord) shall professionally maintain the Premises including heating, air conditioning, electrical, plumbing and water systems, If any, and keep glass, windows and doors in operable and safe condition. Unless Landlord is checked, if Tenant fails to maintain the Premises, Landlord may contract for or perform such maintenance, and charge Tenant for Landlord's cost. B. Landlord OR[] (If checked, Tenant) shall maintain the roof, foundation, exterior walls, common areas and Landlord's Initials (�`� ) Tenants Initials ( -)1 ) CL REVISED 4113 (PAGE 2 of 6) Reviewed by Dale �'m.. COMMERCIAL LEASE AGREEMENT (CL PAGE 2 OF 6) Untitled 70 1 Exhibit 6, page 3 of 6 - Lease 610 36th Street Premises: CP �i? �S ✓e t° Date May 20, 2013 18, ALTERATIONS: Tenant shall not make any alterations in or about the Premises, including Installation of trade fixtures and signs, without Landlord's prior written consent, which shall not be unreasonably withheld. Any alterations to the Premises shall be done according to Law and with required permits. Tenant shall give Landlord advance notice of the commencement date of any planned alteration, so that Landlord, at Its option, may post a Notice of Non - Responsibility, to prevent potential liens against Landlord's Interest in the Premises. Landlord may also require Tenant to provide Landlord with lien releases from any contractor performing work on the Premises. 19. GOVERNMENT IMPOSED ALTERATIONS: Any alterations required by Law as a result of Tenant's use shall be Tenant's responsibility. Landlord shall be responsible for any Other alterations required by Law. 20. ENTRY: Tenant shall make Premises available to Landlord or Landlord's agent for the purpose of entering to make inspections, necessary or agreed repairs, alterations, or improvements, or to supply necessary or agreed services, or to show Premises to prospective or actual purchasers, tenants, mortgagees, lenders, appraisers, or contractors. landlord and Tenant agree that 24 hours notice (oral or written) shall be reasonable and sufficient notice. In an emergency, Landlord or Landlord's representative may enter Premises at any time without prior notice. 21. SIGNS: Tenant authorizes Landlord to place a FOR SALE sign on the Premises at any time, and a FOR LEASE sign on the Premises within the 90 (Or ❑ ) day period preceding the temdnation of the agreement. 22. SUBLETTINGIASSIGNMENT: Tenant shall not sublet or encumber all or any part of Premises, or assign or transfer this agreement or any interest in it, without the prior written consent of Landlord, which stall not be unreasonably withheld. Unless such consent is obtained, any subletting, assignment, transfer, or encumbrance of the Premises, agreement, or tenancy, by voluntary act of Tenant, operation of law, or otherwise, shall be null and void, and, at the option of landlord, terminate this agreement Any proposed sublessee, assignee, or transferee shall submit to Landlord an application and credit information for Landlord's approval, and, if approved, sign a separate written agreement with Landlord and Tenant Landlord's consent to any one sublease, assignment, or transfer, shall not be construed as consent to any subsequent sublease, assignment or transfer, and does not release Tenant of Tenant's obligation under this agreement. 23. POSSESSION: If Landlord Is unable to deliver possession of Premises on Commencement Date, such date shall be extended to the date on which possession is made available to Tenant However, the expiration date shall remain the same as specified in paragraph 2. If Landlord is unable to deliver possession within 60 (or0 ) calendar days after the agreed Commencement Date, Tenant may terminate this agreement by giving written notice to Landlord, and shall be refunded all Rent and security deposit paid. 24. TENANTS OBLIGATIONS UPON VACATING PREMISES: Upon termination of agreement, Tenant shall: (1) give Landlord all copies of all keys or opening devices to Premises, including any common areas; (19 vacate Premises and surrender it to Landlord empty of all persons and personal property; (Ili) vacate all parking and storage spaces; (iv) deliver Premises to Landlord i? the saTR� e�ond ti'on/ s referenD in pamgrap� h 11; (v) dean Premises; (vp give written notice to Landlordpf Tenants forwarding address; and vih r,r i / dT r� ✓ 1 All improvements installed by enant with or without -Landlord's consent. become the pr6peert? of Landlord up® termination. Landlord may nevertheless require Tenant to remove any such improvement that did not exist at the time possession was made available to Tenant. 25. BREACH OF CONTRACTIEARLY TERMINATION: If, by no fault of Tenant, Premises are totally or partially damaged or destroyed by fire, earthquake, accident or other casualty, Landlord shall have the right to restore the Premises by repair or rebuilding. If Landlord elects to repair or rebuild, and is able to complete such restoration within 90 days from the date of damage, subject to the terms of this paragraph, this agreement shall remain in full force and effect. If Landlord is unable to restore the Premises within this time, or if Landlord elects not to restore, then either Landlord or Tenant may terminate this agreement by giving the other written notice. Rent shell be abated as of the date of damage. The abated amount shall be the anent monthly Base Rent prorated on a 30-day basis. If this agreement is not terminated, and the damage is not repaired, then Rent shall be reduced based on the extent to which the damage interferes with Tenanfs reasonable use of the Premises. If total or partial destruction or damage occurs as a result of an ad of Tenant or Tenant's guests, (t) only Landlord shall have the right at Landlord's sole discretion, within 30 days after such total or partial destruction or damage to treat the lease as terminated by Tenant, and (ii) Landlord shall have the right to recover damages from Tenant. 26. DAMAGE TO PREMISES: If, by no fault of Tenant, Premises are totally or partially damaged or destroyed by fire, earthquake, accident or other casualty, Landlord shall have the right to restore the Premises by repair or rebuilding. If Landlord elects to repair or rebuild, and is able to complete such restoration within 90 days from the date of damage, subject to the terms of this paragraph, this agreement shall remain in full force and effect If Landlord is unable to restore the Premises within this time, or if Landlord elects not to restore, then either Landlord or Tenant may terminate this agreement by giving the other written notice. Rent shall be abated as of the date of damage. The abated amount shall be the current monthly Base Rent prorated on a 30-day basis. If this agreement is not terminated, and the damage is not repaired, then Rent shall be reduced based on the extent to which the damage interferes with Tenerife reasonable use of Premises. If damage occurs as a result of an act of Tenant or Tenerife guests, (1) only Landlord shall have the right, at Landlord's sole discretion, within 30 days after such total or partial destruction or damage to treat the lease as terminated by Tenant, and (If) Landlord shall have the right to recover damages from Tenant. 27. HAZARDOUS MATERIALS: Tenant shall not use, store, generate, release or dispose of any hazardous material on the Premises or the property of which the Premises are part. However, Tenant is permitted to make use of such materials that am required to be used in the normal course of Tenanfs business provided that Tenant complies with all applicable Laws related to the hazardous materials. Tenant is responsible for the cost of removal and remediation, or any dean -up of any contamination mused by Tenant 26. CONDEMNATION: If all or part of the Premises is condemned for public use, either parry may terminate this agreement as of the date possession is given to the condemner. All condemnation proceeds, exclusive of those allocated by the condemner to Tenant's relocation costs and trade fixtures, belong to Landlord. 29. INSURANCE: Tenant's personal property, fixtures, equipment, inventory and vehicles are not insured by Landlord against loss or damage due to fire, theft, vandalism, rain, water, criminal or negligent acts of others, or any other muse. Tenant is to carry Tenant's own property insurance to protect Tenant from any such loss. In addition, Tenant shall carry liability insurance in an amount of not less than $ . Tenants liability insurance shall name Landlord and Landlord's agent as additional insured. Tenant, upon Landlord's request, shall provide Landlord with a certificate of insurance establishing Tenants compliance. Landlord shall maintain liability insurance Insuring Landlord, but not Tenant in an amount of at least $ , plus property insurance in an amount sufficient to cover the replacement cost of the property. Tenant is advised to carry business interruption insurance In an amount at least sufficient to cover Tenant's complete rental obligation to Landlord. Landlord is advised to obtain a policy of rental loss Insurance. Both Landlord and Tenant release each other, and waive their respective rights to subrogation against each other, for loss or damage covered by insurance. Landlord's Initials (- �' ` ) Tenanfs Initials () ( ) Rerievred by Data mvamms ®common CL REVISED 4113 (PAGE 3 of 6) COMMERCIAL LEASE AGREEMENT (CL PAGE 3 OF 6) Untitled 77 Premises: Exhibit 6, page 4 of 6 - Lease 610 36th Street Date May 20, 2013 30. TENANCY STATEMENT (ESTOPPEL CERTIFICATE): Tenant shall execute and return a tenancy statement (estoppel certificate), delivered to Tenant by Landlord or Landlord's agent, within 3 days after its receipt The tenancy statement shall acknowledge that this agreement is unmodified and in full force, or in full force as modified, and state the modifications. Failure to comply with this requirement (i) shall be deemed Tenant's acknowledgment that the tenancy statement Is true and correct, and may be relied upon by a prospective lender or purchaser, and (IQ may be treated by Landlord as a material breach of this agreement Tenant shall also prepare, execute, and deriver to Landlord any financial statement (which will be held in confidence) reasonably requested by a prospective lender or buyer. 31. LANDLORD'S TRANSFER: Tenant agrees that the transferee of Landlord's interest shall be substituted as Landlord under this agreement. landlord will be released of any further obligation to Tenant regarding the security deposit, only If the security deposit is returned to Tenant upon such transfer, or 9 the security deposit is actually transferred to the transferee. For all other obligations under this agreement, Landlord is released of any further liability to Tenant, upon Landlord's transfer. 32. SUBORDINATION: This agreement shall be subordinate to all existing Hem and, at Landlord's option, the lien of any first deed of last or first mortgage subsequemly placed upon the real property of which the Premises are a part, and to any advances made on the security of the Premises, and to all renewals, modifications, consolidations, replacements, and extensions. However, as to the lien of any deed of trust or mortgage entered into after execution of this agreement. Tenant's right to quiet possession of the Premises shall not be disturbed if Tenant is not in default and so long as Tenant pays the Rent and observes and performs all of the provisions of this agreement, unless this agreement is otherwise terminated pursuant to its terms. If any mortgagee. trustee, or ground lessor elects to have this agreement placed in a security position prior to the Hen of a mortgage, deed of trust, or ground lease, and gives written notice to Tenant this agreement shall be deemed prior to that mortgage, deed of trust, or ground lease, or the date of recording. 33. TENANT REPRESENTATIONS; CREDIT: Tenant warrants that all statements in Tenant's financial documents and rental application are accurate. Tenant authorizes Landlord and Broker(s) to obtain Tenant's credit report at time of application and periodically during tenancy in connection with approval, modification, or enforcement of this agreement Landlord may cancel this agreement (Q before occupancy begins, upon disapproval of the credit report(s); or (11) at any time, upon discovering that Information in Tenth's application is false. A negative credit report reflecting on Tenants record may be submitted to a credit reporting agency, if Tenant falls to pay Rent or comply with any other obligation under this agreement 34. CONSTRUCTION- RELATED ACCESSIBILITY STANDARDS: Landlord slates that the Premises ❑ has, or ❑ has not been inspected by a Certified Access Specialist If so, Landlord states that the Premises ❑ has, or ❑ has not been determined to meet all applicable construction-related accessibility standards pursuant to Civil Code Section 55.53. 35. ENERGY DISCLOSURE: If this is a lease of the entire building, landlord shall provide Tenant, at least 24 hours prior to execution of this Agreement, the Disclosure Summary Sheet, Statement of Energy Performance, Data Checidist, and the Faality Surnmary for the building as required by Public Resources Code Section 25402.10 and California Code of Regulations, Tithe 20, Sections 1680 through 1685. This requirement is effective for a building with total gross Floor area square footage as follows: more than 50,000 square feeL July 1, 2013; more than 10,000 square feet and up to 50,000 square feet January 1, 2014; and at least 5,000 square feet up to 10,000 square feet July 1, 2014. For more information, see htrolAvww.energy.ca.gav /AB1 103!mdex.html. 36. DISPUTE RESOLUTION: A. MEDIATION: Tenant and Landlord agree to mediate any dispute or claim arising between them out of this agreement, or any resulting transaction, before resorting to arbitration or court action, subject to paragraph 36B(2) below. Paragraphs 36B(2) and (3) apply whelhar or not the arbitration provision is initialed. Mediation fees, if any, shall be divided equally among the parties Involved. If for any dispute or claim to which this paragraph applies, any parry commences an action without first attempting to resolve the matter through mediation, or refuses to mediate after a request has been made, then that party shall not be entitled to recover attorney fees, even if they would otherwise be available to that party in any such action. THIS MEDIATION PROVISION APPLIES WHETHER OR NOT THE ARBITRATION PROVISION IS INITIALED. B. ARBITRATION OF DISPUTES: (1) Tenant and Landlord agree that any dispute or claim In Law or equity arising between them out of this agreement or any resulting transaction, which is not settled through mediation, shall be decided by neutral, binding arbitration, Including and subject to paragraphs 36B(2) and (3) below. The arbitrator shall be a retired judge or justice, or an attorney with at least 5 years of neat estate transactional law experience, unless the parties mutually agree to a different arbitrator, who shall render an award In accordance with substantive California Law. In all other respects, the arbitration shall be conducted in accordance with Part III, Title 9 of the Calfomia Code of Civil Procedure. Judgment upon the award of the arbitrator(s) may be entered in any court having jurisdiction. The parties shall have the right to discovery In accordance with Code of ClvilProcedure §1283.05. (2) EXCLUSIONS FROM MEDIATION AND ARBITRATION: The following matters are excluded tram Mediation and Arbitration hereunder. (f) a judicial or nonqudiclal foreclosure or other action or proceeding to enforce a deed of bust, mortgage, or installment land sale contract as defined in Civil Code §2985: (IQ an unlawful detainer action; Off) the filing or enforcement of a mechanics lien; IN) any matter that Is within the jurisdiction of a probate, small claims, or bankruptcy court; and (v) an action for bodily injury or wrongful death, or for latent or patent defects to which Code of Civil Procedure §337.1 or §337.15 applies. The riling of a court action to enable the recording of a notice of pending action, for order of attachment, receivership, injunction, or other provisional remedies, shall not constitute a violation of the mediation and arbitration provisions. (3) BROKERS: Tenant and Landlord agree to mediate and arbitrate disputes or claims Involving either or both Brokers, provided either or both Brokers shall have agreed to such mediation or arbitration, prior to, or within a reasonable time after the dispute or claim is presented to Brokers. Any election by either or both Brokers to participate in mediation or arbitration shall not result in Brokers being deemed parties to the agreement. "NOTICE: BY INITIALING IN THE SPACE BELOW YOU ARE AGREEING TO HAVE ANY DISPUTE ARISING OUT OF THE MATTERS INCLUDED IN THE'ARBITRATION OF DISPUTES' PROVISION DECIDED BY NEUTRAL ARBITRATION AS PROVIDED BY CALIFORNIA LAW AND YOU ARE GIVING UP ANY RIGHTS YOU MIGHT POSSESS TO HAVE THE DISPUTE LITIGATED IN A COURT OR JURY TRIAL. BY INITIALING IN THE SPACE BELOW YOU ARE GIVING UP YOUR JUDICIAL RIGHTS TO DISCOVERY AND APPEAL, UNLESS THOSE RIGHTS ARE SPECIFICALLY INCLUDED IN THE 'ARBITRATION OF DISPUTES' PROVISION. IF YOU REFUSE TO SUBMIT TO ARBITRATION AFTER AGREEING TO THIS PROVISION, YOU MAY BE COMPELLED TO Landlord's Initials (_ �4#a ) Tenants Initials () ( ) Rkrvionvd by Du mw ®m OtPoPrantY CL REVISED 4113 (PAGE 4 of 6) COMMERCIAL LEASE AGREEMENT (CL PAGE 4 OF 6) Untitled 72 Exhibit 6, page 5 of 6 - Lease 610 36th Street Premises: 14 f 17 ke ez7 Date May 20, 2013 ARBITRATE UNDER THE AUTHORITY OF THE CALIFORNIA CODE OF CIVIL PROCEDURE. YOUR AGREEMENT TO THIS ARBITRATION PROVISION IS VOLUNTARY. - -WE HAVE READ AND UNDERSTAND THE FOREGOING AND AGREE TO SUBMIT DISPUTES ARISING OUT OF THE MATTERS INCLUDED IN THE 'ARBITRATION OF DISPUTES' PROVISION TO NEUTRAL ARBITRATION." Landlord's Initials / Tenant's Initials / 37. JOINT AND INDMDUAL OBLIGATIONS: If there is more than one Tenam, each one shall be individually and completely responsible for the performance of all obligations of Tenant under this agreement jointly with every other Tenant and individually, whether or not In possession. 38. NOTICE: Notices may be served by mail, facsimile, or courier at the following address or location, or at any other location subsequently designated: Landlord: r7A ✓/ U / Gt?PSS Tenant Rx - ..d..n 0. SBv.�✓� VC 2775 yLte.cA JFroi2 L�.ast_ #G /O� d�C7dPoi�T /� 9l//� elQC&I afe_cR CA c2u2L Notice is deemed effective upon the earliest of the following: (f) personal receipt by either party or their agent (IQ written acknowledgement of notice; or (Ili) 5 days after mailing notice to such location by first class mail, postage pre -paid. 30. WAIVER: The waiver of any breach shall not be construed as a continuing waiver of the same breach or a waiver of any subsequent breach. 40. INDEMNIFICATION: Tenant shall Indemnify, defend and hold Landlord harmless from all claims, disputes, litigation, judgments and attorney fees arising out of Tenant's use of the Premises. 41. OTHER TERMS AND CONDMONS /SUPPLEMENTS: Tenant to provide Landlord annually rri.th proof of Trnrnrank:e from e ccmpany of Tempts choosiny maintained is full fo ce and effect for the Omite business operation. Such insurance shall name Owner / Landlod as additional insured with 11abl'ty coverage reviewed and approved by Landlords own des1guated iusnrance carrier. Tenant to be soles responsible to cbtai.n all necessaxY permits business and operational licenses as required by the City of Newport Beach and to keep ch lieenses jLn fez= and effect tbxyughout the tern of the Lease. Tenant to hold Landlord ha�less from any infraction, citiatim or other 12421 violations as a result of the operation of such bu1sineas an said premises. T cent to keep Landlord inf d of any mat 'al changes to the business operations or the subject property ndit' n which may impact the safe and continuous aperation of the buiiiness residents personal safety and or the viablity of this Lease. The following ATTACHED supplements/exhibits are incorporated in this agreement ❑ Option Agreement (CAR. Form OA1 42. ATTORNEY FEES: In any action or proceeding arising out of this agreement the prevailing party between Landlord and Tenant shall be entitled to reasonable attorney fees and costs from the norrprevailing Landlord or Tenant except as provided in paragraph 36A 43. ENTIRE CONTRACT: Time is of the essence. All prior agreements between Landlord and Tenant are incorporated in this agreement which constitutes the entire contract It is intended as a food expression of the parties' agreement and may not be contradicted by evidence of any prior agreement or contemporaneous oral agreement The parties further intend that this agreement constitutes the complete and exclusive statement of its terms, and that no extrinsic evidence whatsoever may be introduced in any judicial or other proceeding, If any, involving this agreement Any provision of this agreement that is held to be invalid shall not affect the validity or enforceability of any other provision in this agreement This agreement shall be binding upon, and inure to the benefit of the hews, assignees and successors to the parties. 44. BROKERAGE: Landlord and Tenant shall each pay to Broker(s) the fee agreed to, if any, in a separate written agreement Neither Tenant nor Landlord has utilized the services of, or for any other reason owes compensation to, a licensed real estate broker (individual or corporate), agent, finder, or other entity, other than as named in this agreement. In connection with any act relating to the Premises, including, but not limited to, inquiries, introductions, consuftations, and negotiations leading to this agreement Tenant and Landlord each agree to indemnify, defend and hold harmless the other, and the Brokers specified herein, and their agents, from and against any costs, expenses, or liability for compensation claimed Inconsistent with the warranty and representation in this paragraph 42. 45. AGENCY CONFIRMATION: The following agency relationships are hereby confirmed for this transaction: Listing Agent: (Print Firm Name) is the agent of (check one): ❑ the Landlord exclusively; or ❑ both the Tenant and Landlord. Selling Agent: (Print Finn Name) (if not same as Listing Agent) is the agent of (Check one): ❑ the Tenant exclusively; or ❑ the Landlord exclusively; or ❑ both the Tenant and Landlord. Real Estate Brokers are not parties to the agreement between Tenant and Landlord. Landlord's Initials (� ) Tenant's Initials (—L—) 1 1 U R by Date th CL REVISED 4113 (PAGE 5 of 6) COMMERCIAL LEASE AGREEMENT (CL PAGE 5 OF 6) Untitled �J Exhibit 6, page 6 of 6 - Lease 610 36th Street Premises: IO -3 CO t:AL Y& ig e 7 4- Date May 20, 2013 Landlord and Tenant acknowledge and agree that Brokers: 0) do not guarantee the condition of the Premises; 00 cannot verify representations made by others; (iii) will not verify zoning and land use restrictions; (iv) cannot provide legal or tax advice; (v) will not provide other advice or information that exceeds the knowledge, education or experience required to obtain a real estate license. Furthermore, if Brokers are not also acting as Landlord In this agreement, Brokers: (vi) do not decide what rental rate a Tenant should pay or Landlord should accept; and (vii) do not decide upon the length or other terms of tenancy. Landlord and Tenant agree that they will seek legal, tax, insurance, and other desired assistance from appropriate professionals. Tenant �� Data (Print name State Zip Address City Tenant Date (Print name) Address City State Zip GUARANTEE: In consideration of the execution of this Agreement by and between Landlord and Tenant and for valuable consideration, receipt of which is hereby acknowledged, the undersigned ('Guarantor) does hereby. (I) guarantee unconditionally to Landlord and Landlord's agents, successors and assigns, the prompt payment of Rent or other sums that become due pursuant to this Agreement, Including any and all court costs and attorney fees included in enforcing the Agreement, (i) consent to any changes, modifications or alterations of any tens In this Agreement agreed to by Landlord and Tenant and (i1) waive . any right to require Landlord and/or Landlord's agents to proceed against Tenant for any default occurring under this Agreement before seeking to enforce this Guarantee. Guarantor (Print Name) Guarantor Address Fax City Landlord agrees to rent the Premises on the above terms and conditions. nn Date z 0 y City /j /J State __dA Z'ip 9r-4 s0 Address E-mail Date State Zip Landlord Date (owner or agent with authority to enter into this agreement) Address City State Zip Agency relationships are confirmed as above. Real estate bmkers who are not also Landlord in this agreement are not a party to the agreement between Landlord and Tenant. Real Estate Broker (Leasing Firm) DRE Uc. It By (Agent) DRE Lic. # Address Telephone Fax Real Estate Broker (listing Finn) City E -mail By (Agent) DRE Lic. # Address City Telephone Fax E -mail Date State Zip DRE Lic. # Date State Zip 0 2013. California Association of REALTORS®, Inc. United States copyright law [Wile 17 U.S. Code) forbids the unauthorized distribution, display and reproduction of this form, or any portion thereof. by photocopy machine or any other means. Including facrimile or computerized formats. THIS FORM HAS BEEN APPROVED BY THE CALIFORNIA ASSOCIATION OF REALTORS) (CAR.). NO REPRESENTATION IS MADE AS TO THE LEGAL VALIDITY OR ACCURACY OF ANY PROVISION IN ANY SPECIFIC TRANSACTION. A REAL ESTATE BROKER IS THE PERSON QUALIFIED TO ADVISE ON REAL ESTATE TRANSACTIONS. IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL REAL E Published and Distributed by. REAL ESTATE BUSINESS SERVICES, INC. ■T� 2. a subsfdrary of ft California Association of REALTORS& ` e 525 StxM vagil Avenue, Los Angeles, California 90020 I Reviewed by Date v CL REVISED 4113 (PAGE 6 OF 6) COMMERCIAL LEASE AGREEMENT (CL PAGE 6 OF 6) Untitled 20 Exhibit 7, page 1 of 6 - Lease 611 Clubhouse Ave ° CALIFORNIA ASSOCIATION COMMERCIAL LEASE AGREEMENT ®.� ® OF R E A L T O I S'1` (C.A.R. Form CL, Revised 4113) JYN� !O, ZoI,3 49S Date (For reference only): mr David Gross ( "Landlord -) and 1. PROPERTY: Landlord re to Tenant and Tenant rents fronLandlord, the real ro (Tenant") agree as follows: de- D, p perry and impmvemerds desmi as: comprise approximately % of the total square footage of rentable space in the entire pro ( emus 1 esll of the Premises. P P Party. See exhibit for a further 2. TERM: The term begins on (date) (Check A or B): ("Commencement Date°), Art A. lease: and shall terminate on (date) 3 ! I ZD (c f nta.bL term f this agreement a at Z ; 0 a -AO AM PM. Any holding overaRer the 9 expires, with Lanarord s mnseN, shall create a montlNo -mo tenancy e"Ori er ffty paragraph 26. Rent shall be aI a rate equal to the rent for the immediate pa may terminate as specified in conditions f this agreement shall remain in full force and ttiect. h' Preceding month, payable in advance. All other terms and ❑ B. Month -to - month: and continues as a mon111140 month tenancy. Either party may terminate the tenancy by giving written notice to the other at least 30 days prior to the intended termination date, subject to any applicable laws. Such notice may be given on any date. ❑ C. RENEWAL OR EXTENSION TERMS: See attached addendum 3. BASE RENT: A. Tenant agrees to pay Base Rent at the rate Of (CHECK ONE ONLY:) ❑ (1) $ —��.per month, for the term of the agreement. ❑ (2 per $ per month, for the first 12 months of the each 12 months thereafter, rent shall be adjusted according to any iincreaseti the U.S. Consumer Price index of the upon urreau of Labor Statistics of the Department of Labor for Ail Urban Consumers ("CPI°) for (the city nearest the location of the Premises), based on the following u a: ash ant vur mu r preceding the first calendar month during which the adjustment is to p take recent ect, and divided by the most recent CP receding the Commencement Date. In no event shall any adjusted Base Rent be less than the Base Rent for the month immediately preceding the adjustment If the CPI is no longer published, then the adjustment to Base Rent shall be based on an alternate index that most closely As reflects the CPI. tit (3) $ 4t22 per month for the period Commencing ) 1 3 $ __%Xoo per month for the and ending �) 3 and $ per month for the period Commencing t and ending ad ❑ (4) In accordance with the attached rent scheduled commencing ad ed'mg ❑ (5) Other. B. Base Rent is payable in advance on the let( or C. If the Commencement Date falls on an ❑ )day of each calendar month, and is delinquent on the next day. of the Orrin, Base Rent for the first calendar one 30-day period. If Tenant has paid one 11 moni s Base Rent in advance of Commencement Date, Base Rent for shall d calends month based shall be prorated based an a 30 -day period. 4. RENT: A. Definition: (Rent") shall mean all monetary obligations of Tenant to Landlord under the B. Payment Rent shall be paid to (Name) nns of this agreement, exceet security deposit. uwwn sp by rid o m vmhrtg to elan A� r I'� at (address) ,� or at any other C. Trmmg. Base Rent shall be paid as specified in paragraph 3. All other Rent shall be paid within 30 days after Tenant is billed by Land of at 5. EARLY POSSESSION: Tenant is entitled to possession of the Premises on If Tenant is in possession prior to the Commencement Date, during this time (i) Tenant is not obligated to ❑ is not obligated to pay Rent other than Base Rent. Whether or not Tenant is obit tad to prior Base Rent, and (if) Tenant ❑ is obligated to comply with ail other terms of this agreement pay Rent rior to Commencement Date, Tenant is 6. SECURITY DEPOSIT: _ A. Tenant agrees to pay Landlord $ �i O �, b O as a security deposit. (IF CHECKED:) ❑ If Base Rent mrreases during the term of this agreemef, nt agrees agrees not to hold Broker responsible for its return. as the increase in Base Rent to increase security deposit by the same proportion B. All or any portion of the security deposit may be used, as reasonably necessary , to: (7 cure Tenants default in payment of Rent, late charges, non - sufficient funds ((°N F)) fe dean then Premises, sums d if x11) repair damage, excluding ordinary wear and tear, mused by Tenant or by a guest or licensee of Tenant Tenant SECURITY DEPOSIT SHALL NOT BE USED BY TENANT IN cEU Cbon f th��' and M cover any other unfulfilled obfigatian f security deposit is used during tens N L( –U O. PAYMENT OF LAS MONTH'S RENT. if all crony podive of the 9 rice, Tenant agrees b reinstate the total severity deposit within 5 days alter written notice is deion of to Tenant. Within 30 days attar Landlord receives possession of the Premises, Landlord shall. (i) furnish Tenant an gambled statement indicating the amount , any security deposit received and the basis for its disposition, and (ill return an remaining portion f security deposit to Tenant However, if the Landlord's only claim upon the security deposit is for unpaid Rent then the remaining portion of the security deposit, after deduction of unpaid Rent shall be returned within 14 days after the Landlord receives possession. C. No interest will be paid security deposit, unless required by local ordinance. Landlord's Initials ( ) p( Tenam's Initials ( R7J ) ( ) ©2013, California Association of REALTORS®, Inc. CL REVISED 4113 (PAGE 1 of 6) Agent Shaun Broker: First T, rRev7ewed by Date COMMERCIAL LEASE AGREEMENT (CL PAGE 1 OF Phone: #210 ovruuaanr�uw°r✓cv 21 //Exhibit 7, page 2 of 6 - Lease 611 Clubhouse Ave Premises: _ (n t' 'V OVf J? "N 10" 8013 ,gS Date g@}3. 7. PAYMENTS. ' TOTAL D IF PAYMENT ---HI- RECEIVED BALANCE D F A. Rent From S' / 20I 3 To � 3/ 20 [ $ 2Ca () CO $ � r �t5 � '.y � I LISlEDAg ale p e $ B. Security Deposit .......................... $ / �5_ 0 O $ C. Other. $ - Category $ $ 0. Other: tegory $ $ $ E. Total: $ $ S. PARKING: Tenant is entitled o 3 r- , unreserved and (� o parking 0 is PQfs not included in the Bas Rent charged pursuant o a reserved vehicle parking spaces. The right be an additional $ per month. Parking space(s) are o be used for parking perabl m t h Ges, except for baHelrs, boats! campers, buses or trucks (o er than pidt -up trucks). Tenant shall park in assigned spaces) only. Parking space(s) are to be kept clean. Vehicles leaking oil, gas or other motor vehicle fluids shall not be parted in Parking spaces Or on the Premises. Mechanical work or storage of inoperable vehicles is not allowed in parking space(s) or elsewhere on the Premises. No overnight parking is permitted. 9. ADDITIONAL STORAGE: Storage is permitted as follows: a The right to additional storage z g space 0 is 14 is not included in the Base Rent dlargd pursuant to pa graph 3. If not incl uded in Base Rent, storage space shall bean additional $ whI W e per month. Tenant shall sore on sore properly that is claimed by another, or in whi another has any right, title, or interest. Tenant shall personal property any improperly pa and shall not perishable goods, flammable materials, explosives, or other dangerous or hazardous material. Tenant shall r. p Pe y packaged food or clean -up of any contamination caused by Tenant's use of the storage area. pay or, and be responsible for, the 10. LATE CHARGE; INTEREST; NSF CHECKS: Tenant acknowledges that either late payment of Rent or issuance of a NSF check may cause Landlord to incur costs and expenses, the exact amount of which are extremely difficult and impractical to determine. These costs may include, but are not limited to, Processing, enorcement and accounting expenses, and late charges imposed on Landlord. If any installment of Rent due from Tenant is not received by Landlord within 5 calendar days after date due, or if a check is returned NSF, Tenant shall pay to Landlord, respectively, $ 2012, DO as late charge, plus 10% interest per annum on the delinquent amount and $25.00 as a NSF fee, any of which shall be deemed additional Rent. Landlord and Tenant agree that these charges represent a fair and reasonable estimate of the costs Landlord may incur by reason of Tenant's late or NSF Payment. Any late charge, delinquent interest. or NSF fee due shall be paid with the current installment of Rent. Landlord's acceptance of any late charge or NSF toe shall not constitute a waiver as to any default of Tenant. Landlord's right to collect a Late Charge or NSF fee shall not be deemed an extension of the date Rent is due under paragraph 4, or prevent Landlord from exercising any other rights and remedies under this agreement, and as provided by law. 11. CONDITION OF PREMISES: Tenant has examined the Premises and acknowledges that Premise is clean and in operative condition, with the following exceptions: Items listed as exceptions shall be dealt with in the following manner. 12. ZONING AND LAND USE: Tenant accepts the Premises subject o all local, state and federal laws, regulations and ordinances ( "Laws "). Landlord makes no representation or warranty that Premises are now or in the future will be suitable for Tenant's use. Tenant has made its own investigation regarding all applicable Laws. 13. TENANT OPERATING EXPENSES: Tenant agrees to pay for all utilities and services directly billed to Tenant 14. PROPERTY OPERATING c crjSES: j A. Tenant agrees to pay its proportionate share of Landlord's estimated monthly property operating expenses, including but not limited to, common area maintenance, consolidated utility and service bills, insurance, and real property to the total P PertY taxes, based on the ratio of the square footage of the Premises I square footage of the rentable space a the entire property. ORB.ja (If checked) Paragraph 14 does rrot apply. 15. USE The Premises are for the sole use as _�p =r v f 9, No other use is ��y Permitted without tandlard s poor written cerhsent If any u y Tenant causes an Increase in the property insurance, Tnam shall Pay for the increased cost. Tenant will corn Premium on Ladord5 existing use of the Premises. 16. time posted R d on the Tenant agrees to comply with all rules and regulations of Landlord (and, applicable. Owner's Association) that are at any ' time posted on the Premises or delivered to Tenant Tenant shall not, and shall ensure that guests and licensees of Tenant do not, disturb, annoy, endanger, or interfere with other tenants of the building or neighbors, or use the Premises for any unlawful Purposes, including, but not limited to, I, using, manufacturing, selling, storing, or transporting illicit drugs or other contraband, or violate any law or ordinance, or committing a waste or nuisance on or about the Premises. 17. MAINTENANCE: A. Tenant OR ❑ (If checked, Landlord) shall professionally maintain the Premises including heating, water systems, if any, and keep glass, windows and doors in operable and safe condition. Unless Ldlord is chtecked, if Tenant failsu to the the Premises, Landlord may contract for or perform such maintenance, and charge Tenant for Landlord's cost. B. Landlord ORp (If checked, Tenant) shall maintain the roof, foundation, exterior walls, common areas and i Landlord's Initials (_B L� "-� ) Tenants Initials CL REVISED 4113 (PAGE 2 of S) Reviewed by path erg COMMERCIAL LEASE AGREEMENT (CL PAGE 2 OF 6) Untitled 22 Exhibit 7, page 3 of 6 - Lease 611 Clubhouse Ave s� Vro 10 / .3 zzo S Premises: V Ouf �- Date l ?$i• 78. ALTERATIONS: Tenant shall not make any alterations in or about the Premises, inducting installation of trade fixtures and signs, without Landlord's prior written consent, which shall not be unreasonably withheld. Any alterations to the Premises shall be done according to Law and with required permits. Tenant shall give Landlord advance notice of the commencement date of any planned alteration, so that Landlord, at its option, may post a Notice of Non - Responsibility to prevent potential liens against Landlord's interest in the Premises. Landlord may also require Tenant to provide Landlord with lien releases from any contractor perfomring work on the Premises. 19. GOVERNMENT IMPOSED ALTERATIONS: Any alterations required by Law as a resuft of Tenants use shall be Tenant's responsibility. landlord shall be responsible for any other alterations required by Law. 20. ENTRY: Tenant shall make Premises available to Landlord or Landlord's agent for the purpose of entering to make inspections, necessary or agreed repairs, alterations, or improvements, or to supply necessary or agreed services, or to show Premises to prospective or actual purchasers, tenants, mortgagees, lenders, appraisers, or contractors. Landlord and Tenant agree that 24 hours notice (oral or written) shall be reasonable and sufficient notice. In an emergency, Landlord or Landlord's representative may enter Premises at any time without prior notice. 21. SIGNS: Tenant authorizes Landlord to place a FOR SALE sign on the Premises at any time, and a FOR LEASE sign on the Premises within the 90 (or E3 ) day period preceding the termination of the agreement. 22. SUBLETTING /ASSIGNMENT: Tenant shall not sublet or encumber all or any part of Premises, or assign or transfer this agreement or any interest in it, without the prior written consent of Landlord, which shall not be unreasonably withheld. Unless such consent is obtained, any subletting, assignment, transfer, or encumbrance of the Premises, agreement, or tenancy, by voluntary act of Tenant, operation of law, or otherwise, shall be null and void, and, at the option of Landlord, terminate this agreement. Any proposed sublessee, assignee, or transferee shall submit to Landlord an application and credit information for Landlord's approval, and, if approved, sign a separate written agreement with landlord and Tenant. Landlord's consent to any one sublease, assignment, or transfer, shall not be construed as consent to any subsequent sublease, assignment, or transfer, and does not release Tenant of Tenant's obligation under this agreement. 23. POSSESSION: If Landlord is unable to deliver possession of Premises on Commencement Date, such date shall be extended to the date on which possession is made available to Tenant However, the expiration data shall remain the same as specified in paragraph 2. If Landlord is unable to deriver possession within 60 (or ❑ ) calendar days after the agreed Commencement Date, Tenant may terminate this agreement by giving written notice to Landlord, and shall be refunded all Rent and security deposit paid. 24. TENANTS OBLIGATIONS UPON VACATING PREMISES: Upon termination of agreement, Tenant shall: (d) give Landlord all copies of all keys or opening devices to Premises, including any common areas; (if) vacate Premises and surrender it to Landlord empty of an persons and personal property; (id) vacate all parking and storage span's; (iv) deliver Premises to Landlord in the same� dition as referenced in paragraph 11; (v) dean Premises; (vi) give w�t�an notice to Landlord of Tenard's forwarding address; and (vii) —_gc (•err .{.o /�, �p�, 13 C....._: L _ 1 _ -• ••••r•���••ti••� „vw„� uy remanr, wan Or without Landlord's consent, become property of Landlord upon Ina on. Landlord may nevertheless require Tenant to remove any such improvement that did not exist at the time possession was made available to Tenant. 25. BREACH OF CONTRACT /EARLY TERMINATION: If, by no fault of Tenant, Premises are totally or partially damaged or destroyed by fire, earthquake, accident or other casualty, Landlord shall have the right to restore the Premises by repair or rebuilding. If Landlord elects to repair or rebuild, and is able to complete such restoration within 90 days from the date of damage, subject to the terms of this paragraph, this agreement shall remain in full force and effect. If Landlord is unable to restore the Premises within this time, or if Landlord elects not to restore, than either Landlord or Tenant may terminate this agreement by giving the other written notice. Rent shall be abated as of the date of damage. The abated amount shall be the current monthly Base Rent prorated on a 30-day basis. if this agreement is not terminated, and the damage is not repaired, then Rent shall be reduced based on the extent to which the damage interferes with Tenants reasonable use of the Premises. If total or partial destruction or damage occurs as a result of an act of Tenant or Tenant's guests, (I) only Landlord shall have the right, at Landlord's sole discretion, within 30 days after such total or partial destruction or damage to treat the lease as temdnated by Tenant, and (10 Landlord shall have the right to recover damages from Tenant. 26. DAMAGE TO PREMISES: If, by no fault of Tenant, Premises are totally or partially damaged or destroyed by fire, earthquake, accident or other casualty, Landlord shall have the right to restore the Premises by repair or rebuilding. If Landlord elects to repair or rebuild, and is able to complete such restoration within 90 days from the date of damage, subject to the terms of this paragraph, this agreement shall remain in full force and effect. If Landlord is unable to restore the Premises within this time, or if Landlord elects not to restore, then either Landlord or Tenant may terminate this agreement by giving the other written notice. Rent shall be abated as of the date of damage. The abated amount shall be the current monthly Base Rent prorated on a 30-day basis. If this agreement is not terminated, and the damage is not repaired, then Rent shall be reduced based on the extent to which the damage interferes with Tenants reasonable use of Premises. If damage occurs as a resuft of an act of Tenant or Tenant's guests, (d) only Landlord shall have the right, at Landlord's sole discretion, within 30 days after such total or partial destruction or damage to treat the lease as terminated by Tenant, and (it) Landlord shall have the right to recover damages from Tenant 27. HAZARDOUS MATERIALS: Tenant shall not use, store, generate, release or dispose of any hazardous material on the Premises or the property of which the Premises are part However. Tenant is permitted to make use of such materials that are required to be used in the normal course of Tenants business provided that Tenant compries with all applicable Laws related to the hazardous materials. Tenant is responsible for the cost of removal and remediation, or any clear-up of any contamination caused by Tenant. 28. CONDEMNATION: If all or part of the Premises is condemned for public use, either party may terminate this agreement as of the date possession is given to the condemner. All cundemnation proceeds, exclusive of those allocated by the condemner to Tenant's relocation costs and trade fixtures, belong to Landlord. 29. INSURANCE: Tenants Personal property, fixtures, equipment, inventory and vehicles are not insured by Landlord against toss or damage due to fire, theft, vandalism, rain, water, criminal or negligent acts of others, or any other cause. Tenant is to carry Tenant's own property insurance to protect Tenant from any such loss, in addition, Tenant shall carry liability insurance in an amount of not less than $ insurance shaft name Landlord and Landlord's agent as additional insured. Tenant, upon Landlord's request, shall provide Landlord with a certificate t of insurance establishing Tenant's compliance. Landlord shall maintain liability insurance insuring Landlord, but not Tenant, in an amount of at least $ , plus property insurance in an amount sufficient to cover the replacement cost Of the property. Tenant is advised to carry business interruption insurance in an amount at least sufficient to cover Tenants complete rental obligation to Landlord. Landlord is advised to obtain a Policy Of rental loss insurance. Both Landlord and Tenant release each other, and waive their respective rights to subrogation against each other, for loss or damage covered by insurance. Landlords Initials (� ) Tenants Initials CL REVISED 4113 (PAGE 3 of 6) Renewed by pate m unary WPoRM1xT COMMERCIAL LEASE AGREEMENT (CL PAGE 3 OF 61 Untitled gs Exhibit 7, page 4 of 6 - Lease 611 Clubhouse Ave Premises: (O// 440 „J T —� Io, Z073 �S Date Efft r.-?, l 30. TENANCY STATEMENT (ESTOPPEL CERTIFICATE): Tenant shall execute and return a tenancy statement (estoppel certificate), delivered to Tenant by Landlord or Landlord's agent, within 3 days after its receipt. The tenancy statement shall acknowledge that this agreement is unmodified and in full force, or in full force as modified, and state the modifications. Failure to comply with this requirement (f) shall be deemed Tenant's acknowledgment that the tenancy statement is true and correct, and may be relied upon by a prospective lender or purchaser, and (if) may be treated by Landlord as a material breach of this agreement. Tenant shall also prepare, execute, and deliver to Landlord any financial statement (which will be held in confidence) reasonably requested by a prospective lender or buyer. 31. LANDLORD'S TRANSFER: Tenant agrees that the transferee of Landlord's interest shall be substituted as Landlord under this agreement. Landlord will be released of any further obligation to Tenant regarding the security deposit, only if the security deposit is returned to Tenant upon such transfer, or if the security deposit is actually transferred to the transferee. For all other obligations under this agreement, Landlord is released of any further liability to Tenant, upon Landlord's transfer. 32. SUBORDINATION: This agreement shall be subordinate to all existing liens and, at Landlord's option, the lien of any first deed of trust or first mortgage subsequently placed upon the real property of which the Premises are a part, and to any advances made on the security of the Premises, and to all renewals, modifications, consolidations, replacements, and extensions. However, as to the lien of any deed of trust or mortgage entered into after execution of this agreement, Tenant's right to quiet possession of the Premiers shall not be disturbed if Tenant is not in default and so long as Tenant pays the Rent and observes and performs all of the provisions of this agreement, unless this agreement is otherwise terminated pursuant to its terms. If any mortgagee, trustee, or ground lessor elects to have this agreement placed in a security position prior to the lien of a mortgage, deed of tout, or ground lease, and gives written notice to Tenant, this agreement shall be deemed prior to that mortgage, dead of trust, or ground lease, or the date of recording. 33. TENANT REPRESENTATIONS; CREDIT. Tenant warrants that all statements in Tenant's financial documents and rental application are accurate. Tenant authorizes Landlord and Broker(s) to obtain Tenant's credit report at time of application and periodically during [errancy in connection with approval, modification, or anforcemem of this agreement. Landlord may cancel this agreement (q before occupancy begins, upon disapproval of the credit report(s); or (ii) at any time, upon discovering that information in Tenant's application is false. A negative credit report reflecting on Tenants record may be submitted to a credit reporting agency, if Tenant fails to pay Rent or comply with any other obligation under this agreement 34. CONSTRUCTION- RELATED ACCESSIBILITY STANDARDS: Landlord states that the Premises ❑ has, or ❑ has not been inspected by a Certified Access SpecialisL If so, Landlord states that the Premises p has, or ❑ has not been determined to meet all applicable canstruction- related accessibility standards pursuant to Civil Code Section 55.53. 35. ENERGY DISCLOSURE: If this is a lease of the entire building, Landlord shall provide Tenant at least 24 hours prior to execution of this Agreement, the Disclosure Summary Sheet. Statement of Energy Performance, Data Checklist, and the Facility Summary for the building as required by Public Resources Code Section 25402.10 and California Code of Regulations, Title 20, Sections 1680 through 1685. This requirement is effective for a building with total gross floor area square footage as follows: more than 50,000 square feet, July 1, 2013; more than 10,000 square feet and up to 50,000 square feet, January 1, 2014; and at least 5,000 square feet up to 10,000 square feet, July 1, 2014. For more information, we httpg/wunv.eneWg m.gov /ASI 103/mdexhtmi. 36. DISPUTE RESOLUTION: A. MEDIATION: Tenant and Landlord agree to mediate any dispute or claim arising between them out of this agreement, or any resulting transaction, before resorting to arbitration or court action, subject to paragraph 36B(2) below. Paragraphs 36B(2) and (3) apply whether or not the arbitration provision is initialed. Mediation fees, if arty, shall be divided equally among the parties involved. If for any dispute or claim to which this paragraph applies, any party commences an action without first attempting to resolve the matter through mediation, or refuses to mediate after a request has been made, then that party shall not be entitled to recover attorney fees, even If they would otherwise be available to that party in any such action. THIS MEDIATION PROVISION APPLIES WHETHER OR NOT THE ARBITRATION PROVISION IS INITIALED. B. ARBITRATION OF DISPUTES: (1) Tenant and Landlord agree that any dispute or claim in Law or equity arising between them out of this agreement or any resulting transaction, which is not settled through mediation, shall he decided by neutral, binding arbitration, including and subject to paragraphs 36B(2) and (3) below. The arbitrator shall be a retired judge or justice, or an attorney with at least 5 years of real estate transactions[ law experience, unless the parties mutually agree to a different arbitrator, who shall render an award in accordance with substantive California Law. In all other respects, the arbitration shall be conducted in accordance with Part Ill, Title 9 of the California Code of Civil Procedure. Judgment upon the award of the arbitrator(s) may be entered in any court having jurisdiction. The Parties shall have the right to discovery in accordance with Code of Civil Procedure §1283.05. (2) EXCLUSIONS FROM MEDIATION AND ARBITRATION: The following matters are excluded from Mediation and Arbitration hemurMar. (1) a judicial or non judicial foreclosure or other action or proceeding to enforce a deed of trust, mortgage, or installment land sale contract as defined in Civil Code §2985; (if) an unlawful detainer action; (iii) the filing or enforcement of a mechanic's fren; (iv) any matter that is within the jurisdiction of a probate, small claims, or bankruptcy court; and (v) an action for bodily injury or wrongful death, or for latent or patent defects to which Code of Civil Procedure §337.1 or §337.15 applies. The filing of a court action to enable the recording of a notice of pending action, for order of attachment, receivership, injunction, or other provisional remedies, shall not constitute a violation of the mediation and arbitration provisions. (3) BROKERS: Tenant and Landlord agree to mediate and arbitrate disputes or claims invohring either or both Brokers, provided either or both Brokers shall have agreed to such mediation or arbitration, prior to, or within a reasonable time after the dispute or claim is presented to Brokers. Any election by either or both Brokers to participate in mediation or arbitration shall not resuft in Brokers being deamed parties to the agreement. - NOTICE: BY INITIALING IN THE SPACE BELOW YOU ARE AGREEING TO HAVE ANY DISPUTE ARISING OUT OF THE MATTERS INCLUDED IN THE 'ARBITRATION OF DISPUTES' PROVISION DECIDED BY NEUTRAL ARBITRATION AS PROVIDED BY CALIFORNIA LAW AND YOU ARE GIVING UP ANY RIGHTS YOU MIGHT POSSESS TO HAVE THE DISPUTE LITIGATED IN A COURT OR JURY TRIAL. BY INITIALING IN THE SPACE BELOW YOU ARE GIVING UP YOUR JUDICIAL RIGHTS TO DISCOVERY AND APPEAL, UNLESS THOSE RIGHTS ARE SPECIFICALLY INCLUDED IN THE'ARBITRATION OF DISPUTES' PROVISION. IF YOU REFUSE TO SUBMIT TO ARBITRATION AFTER AGREEING TO THIS PROVISION, YOU MAY BE COMPELLED TO Landlord's Initials ( ) Tenants Initials () ( ) CL REVISED 413 (PAGE 4 of 6) ReY ew�d Sy Date ° rawc OPPoANMTY COMMERCIAL LEASE AGREEMENT (CL PAGE 4 OF 6) Unlhlhxl 24 Exhibit 7, page 5 of 6 - Lease 611 Clubhouse Ave 7 ��� �v b l� ov (U 5013 63 Premises: �s �^ Date ARBITRATE UNDER UNDER THE AUTHORITY OF THE CALIFORNIA CODE OF CIVIL PROCEDURE. YOUR AGREEMENT TO THIS ARBITRATION PROVISION IS VOLUNTARY." "WE HAVE READ AND UNDERSTAND THE FOREGOING AND AGREE TO SUBMIT DISPUTES ARISING OUT OF THE MATTERS INCLUDED IN THE 'ARBITRATI N OF DISPUTES' PROVISION TO NEUTRAL ARBITRATION." Landlord's Initials Tenants Initials 6S$ i 37. JOINT AND INDIVIDUAL OBLIGATIONS: If there is more than cps Tenant, each one shall be individually and completely .responsible for the performance of all obligations of Tenant under this agreement, jointly with every other Tenant and individually, whether or not in possession. 38. NOTICE: Notices may t�? served by mail, facsimile, or courier at the following address or location, or at any other location subsequently designated: Landlord: /I /iJ //� �,Lod TS Tenant f3 &R, a00V 2 00 --� � � ( ---��° �— /•�.�° n.o /UE — � 7 7 A� ESA L�� nG' E.tsr Notice is deemed effective upon the earliest of the following: (1) personal receipt by either party or their agent; (f) written acknowledgement —of notice; or (ii) 5 days after mailing notice to such location by first class mail, postage prepaid. 39. WAIVER: The waiver of any breach shall not be construed as a continuing waiver of the same breach or a waiver of any subsequent breach. 40. INDEMNIFICATION: Tenant shall indemnify, defend and hold Landlord harmless from all claims, disputes, litigation, judgments and attorney fees arising out of Tenant's use of the Premises. 41. OTHER TERMS AND CONDITIONS !SUPPLEMENTS: Tenant to provide Landlord annual! with Y Proof of Xnsurance from a Company of Tenants Chaos' o maintained in f,17 force and ff t Ear the onsita business Ogexation. ed b insurance haZZ aIDe Orynai /LdndZOd as add2t20na2 !==ad with Z1abZi Coverage repiewed and approved b Landlords own designated insurance carrier. Tamant to be sOleY re onsib2e to obtain a22 nwoesmazy Permits, business and o eratioaal licenses as re 'red Tenant the City of Newport Beach and to keen such licenses ip force and effect thro bout the term of th Le e T t t h 2d Landlo d b zmless from an + "FSaction, ciliation or other le a2 violations as a result of the operation of such buisiness on said premises. Tenant to keep ZaadIOZ d laf rmed Of any material ---noes to t-e business operation or the sv- --- property condition which jay impact-the safe and continuous o eration of the buisiness residents parsana2 safety and or the viablUty of this Lease. The following ATTACHED supplements/exhibits are incorporated in this agreement: ❑ Option Agreement IC.A.R Form OA) 42. ATTORNEY FEES: In any action or proceeding arising out Of this agreement, the prevailing party between Landlord and Tenant shall be entitled to reasonable attorney fees and costs fmm the non - prevailing Landlord or Tenant, except as provided in paragraph 36A_ 43. ENTIRE CONTRACT: Time is of the essence. All prior agreements between Landlord and Tenant are incorporated in this agreement, which constitutes the enfire contract. It is intended as a final expression of the parties' agreement, and may not be contradicted by evidence of any prior agreement or contemporaneous oral agreement. The parties further intend that this agreement constitutes the complete and exclusive statement of its terms, and that no extrinsic evidence whatsoever may be introduced in any judicial or other proceeding, if any, Involving this agreement. Any provision of this agreement that is held to he invalid shall not affect the validity or enforceablity of any other provision in this agreement This agreement shall be binding upon, and inure to the benefit of, the heirs, assignees and successors to the parties. 44. BROKERAGE: Landlord and Tenant shall each pay to Broker(s) the fee agreed to, if any, in a separate written agreement. Neither Tenant nor Landlord has utilized the services of, or for any other reason owes compensation to, a licensed real estate broker individual or corporate), agent, finder, or other entity, other than as named in this agreement, in connection with any act relating to the Premises, including, but not limited to, inquiries, introductions, consultations, and negotiations leading to this agreement Tenant and Landlord each agree to indemnify, defend and hold harmless the other, and the Brokers specified herein, and their agents, from and against any costs, expenses, or liability for compensation claimed inconsistent with the warranty and representation in this paragraph 42. 45. AGENCY CONFIRMATION: The following agency relationships are hereby confirmed for this transaction: Listing Agent: (Print Firm Name) is the agent of (check one): ❑ the Landlord exclusively; or ❑ both the Tenant and Landlord. Selling Agent (Print Firm Name) (f not same as Listing Agent) is the ❑ the Tenant excluswel ; or 9 9 } agent of (check one): y ❑the Landlord exclusively; or ❑ both the Tenant and Landlord. Real Estate Brokers are not parties to the agreement between Tenant and Landlord. Landlord's Initials ( 49(_ ) Tenant's Initials 105 ) ( ) CL REVISED 4113 (PAGE 5 of 6) Reviewed by Date ma TUWY QWOPiUt�nY COMMERCIAL LEASE AGREEMENT (CL PAGE 5 OF 6) Untitled 25 Exhibit 7, page 6 of 6 - Lease 611 Clubhouse Ave BS 4 11 e?/W/ Anus 5J-V . e /o, sar.3 Premises: = Date j=a'vr :22, -2833 -- Landlord and Tenant acknowledge and agree that Brokers: (i) do not guarantee the condition of the Premises; (ii) cannot verify representations made by others; (Iii) will not verify zoning and land use restrictions; (iv) cannot provide legal or tax advice; (v) will not provide other advice or information that exceeds the knowledge, education or experience required to obtain a real estate license. Furthermore, if Brokers are not also acting as Landlord in this agreement, Brokers: (vi) do not decide what rental rate a Tenant should pay or Landlord should accept; and (vii) do not decide upon the length or other terms of tenancy. Landlord and Tenant agree that they will seek legal, tax, insurance, and other desired assistance from appropriate professionals. Tenant (. �itn( . ��jl /N� Data 4— L O Z 0 13 Addressme) Ir/(/b how city /�Y° 412,d1 state !.� zip 9 2 G 6 3 Tenant Date (Print name) Address City State _ Zip ❑ GUARANTEE; In consideration of the execution of this Agreement by and between Landlord and Tenant and for valuable consideration, receipt of which is hereby acknowledged, the undersigned ("Guarantor') does hereby: (1) guarantee unconditionally to Landlord and Landlord's agents, successors and assigns, the prompt payment of Rent or other sums that become due pursuant to this Agreement, including any and all court costs and attorney fees included in enforcing the Agreement; (ii) consent to any changes, modifications or alterations of any term in this Agreement agreed to by Landlord and Tenant; and (fit) waive any right to require Landlord and/or Landlord's agents to proceed against Tenant for any default occurring under this Agreement before seeking to enforce this Guarantee. Guarantor (Print Name) Guarantor Address Telephone Fax City Landlord agrees to rent the Premises on the above terms and conditions. Address Date State _ Zip E -mail Date 61/0/20/ :_ CityA laj&ci " &51r-6 State Q _ ZiP Z Z645-9- Landlord Date (owner or agent with authority to enter into this agreement) Address city State _ Zip Agency relationships are confirmed as above. Real estate brokers who are not also Landlord in this agreement are not a party to the agreement between Landlord and Tenant. Real Estate Broker (Leasing Firm) DRE Lie. # By Address Telephone Fax Real Estate Broker (Listing Firm) DRE Lie. # City E -mail Date State Zip DRE Lic. # By (Agent) DRE Lie. # Date Address City State _ Zip Telephone Fax Email C 2013, California Association of REALTORS®, Ina United States copyright law (rifle 17 U.S. Code) forbids the unauthorized distribution, display and reproduction of this form, or any portion thereof, by photocopy machine or any other means, Including facsimile or computerized formals. THIS FORM HAS BEEN APPROVED BY THE CALIFORNIA ASSOCIATION OF REALTORS® (CAR.). NO REPRESENTATION IS MADE AS TO THE LEGAL VALIDITY OR ACCURACY OF ANY PROVISION IN ANY SPECIFIC TRANSACTION. A REAL ESTATE BROKER IS THE PERSON QUALIFIED TO ADVISE ON REAL ESTATE TRANSACTIONS. IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULTAN APPROPRIATE PROFESSIONAL Pubfished and Distributed by REAL ESTATE BUSINESS SERVICES, INC. a subsidoyofthe Gallo Assomft nofREALTORS® ` 0 525 South Virgil Avenue, Los Angeles, California 96020 r Reviewed by Date noconuww CL REVISED 4113 (PAGE 6 OF 6) COMMERCIAL LEASE AGREEMENT (CL PAGE 6 OF 6) Untitled 20 Attachment F City Authorized Facilities MA INTENTIONALLY BLANK PAGE 22 City- Authorized Residential Recovery Facilities Newport Beach (as of February 2014) (" = Based on CNB's observation as of most recent interior facility inspection and annual review) Wperator Name Sober Living by the Sea Method of Approval DA ADP License # of Facilities 12 Authorized # Client 204 Operator Reported Bikllk 70 Verified # Client Beds Next annual review October 2014 In Compliance (Y or N) A Y 4138 Patrice Rd. Y 6 6 Y 4711 Seashore Dr. Y 6 6 Y 4711 Y2 Seashore Dr. N 2 2 Y 505 29th St. Y 6 6 Y 3980 Seashore Dr. 112 W-S ait A 4 awn S Ior'I ❑ 4500A504 Seashore Dr 4 2 &44� St I IRS.. A Y Qn n Q 4800 Seashore Dr. Units A & B Y 10 10 Y 5004 Neptune Ave. Unit A N 6 6 Y 5004 Neptune Ave. Unit B N 6 6 Y 5101 River Ave. Unit B Y 6 6 Y 6110 West Ocean Front Y 6 6 Y 6111 Seashore Dr. Y 6 6 1 Y 112 39 the St. Al N 4 1 Y 112 39th St. B I I N 6 1 Y 29 City- Authorized Residential Recovery Facilities Newport Beach (as of February 2014) (" = Based on CNB's observation as of most recent interior facility inspection and annual review) Operator Nam Method of APProval ADP License (Y or N) # of Facilities Authorized #Client Beds Operator Reported # Beds Verified # Client Beds * In Compliance (Y or N)" Morningside Recovery .. - a • •__ ©_ © ©- , :- °- . __ Orange • .- Ave. MENEM== Balboa 1115 West Blvd. 1601 West Balboa Blvd. mm-m_- 0, City- Authorized Residential Recovery Facilities Newport Beach (as of February 2014) (" = Based on CNB's observation as of most recent interior facility inspection and annual review) Operator Name Oceans Sober Living (Balboa Recovery) Method of Approval ADP License # of Facilities 3 Authorized # Client 18 Operator Reported Verified # Client Beds In Compliance (Y or N) 204 21 s' St. RA N 6 1243 01h St. RA N 6 6 6 Y 3206 & 3206'/ West Balboa BI. RA N 6 Balboa Horizons 1 11 1132 West Balboa Blvd. UP Y 11 LMS Properties 1 4 900 West Balboa Blvd. RA N 4 ADP - Licensed Facilities (not subject to City authorization) Ocean Recovery- 1217 W. Bay Ave. ADP Y 1 6 Adelante Recovery - 49 Montecito Dr. ADP Y 1 6 Miramar Recovery-435 Dahlia Ave. ADP Y 1 6 Miramar Recovery - 435'/ Dahlia Ave. ADP Y 1 6 Newport Beach Recovery Center - 207 28" St, lower unit. ADP Y 1 6 City- Authorized Residential Recovery Facilities Newport Beach (as of February 2014) i = Based on CNB's observation as of most recent interior facility inspection and annual review) 92 Method of ADP # of Authorized Operator Verified # Client In Compliance ff,ir Name Approval License Facilities # Client Reported Beds (Y or N) Pacific Shores - 3309 Clay Street Al Y 1 6 Hotel California -4504 Seashore Drive ADP Y 1 6 Totals to DOW 27 Comparison with 2007 Est. # i Est. 4 Client Beds Estimated # Facilities R Beds (based 66 672 on Cix of N.�, estimate, Est. # Client Beds v.s 2014 Authorized # Beds 31% 50% Fire Clearances approved Jan. 1 — February 2014: None For a complete list of ADP-licensed facilities, please refer to the following link: California Department of Alcohol and Drug Programs Listing of Licensed Treatment Facilities ILEGEND: DA= Development Agreement; RA= Reasonable Accommodation; UP = Use Permit; ADP =California Department of Alcohol and Drug Programs 92 Attachment G NBMC Sections 20.52.030.G and 20.52.030.H 93 INTENTIONALLY BLANK PAGE 94 G. Development and Operational Standards. The following standards are applicable to uses granted a conditional use permit in compliance with this section. 1. Management and Operation Plan. The use shall be operated in compliance with applicable State and local law and in compliance with the management and operating plan and rules of conduct submitted as part of the application for a conditional use permit or as identified in the conditions of approval for a conditional use permit. Each plan shall provide a phone number by which the operator may be contacted at all times. If applicable, the permittee shall comply with the Business License provisions of Municipal Code Title 5. 2. Operational Standards. These standards are in addition to any other standards provided for specific uses in this Zoning Code. In order to ensure that conditional uses in residential zoning districts are operating in a manner that is consistent with Federal, State, and local law and established industry standards and to ensure that operators do not have a pattern or practice of operating similar uses in violation of Federal, State, or local law, all of the standards listed below shall apply: a. If the facility is not licensed by the State, managers, operators, owners, clients, visitors, and residents shall not provide any services on site that would require licensure of the facility in compliance with State law b. For uses that allow overnight stays, there shall be no more than two residents, guests, or clients in each bedroom plus one additional resident, guest, or client. The review authority, at his /her discretion, may approve additional occupancy upon request by the applicant and based upon evidence that additional occupancy is warranted and appropriate. In determining whether to allow a different occupancy limit, the review authority shall consider the characteristics of the structure, whether there will be an impact on traffic and parking, and whether the public comfort, health, peace, safety, or welfare of persons residing in the facility or adjacent to the facility will be impacted. c. The names of all persons and entities with an ownership or leasehold interest in the use, or who will participate in operation of the use, shall be disclosed in writing to the City, and these persons and entities shall not have a demonstrated pattern or practice of operating similar facilities in or out of the City of Newport Beach in violation of Federal, State, or local law. d. The operator of the proposed use shall provide a list of the names and addresses of all similar uses located in the State of California owned or operated by the operator within the past five years 95 and shall certify under penalty of perjury that none of these uses has been found by State or local authorities to be operating in violation of Federal, State, or local law. The Director shall verify this information. 3. Smoking. Clients, guests, visitors, staff, or any other users of the use shall not smoke in an area from which the secondhand smoke may be detected on any parcel other than the parcel upon which the use is located. H. Findings and Decision. In addition to the findings required by Section 20.52.020(F) (Findings and Decision), prior to approving or conditionally approving an application for a conditional use permit in a residential zone or in an area where residential uses are provided for in Planned Community Districts or specific plan districts the review authority shall find: 1. The use conforms to all applicable provisions of subsection (G) of this section (Development and Operational Standards); 2. The project complies with the requirements for off - street parking as provided in Chapter 20.40 (Off - Street Parking) and traffic and transportation impacts have been mitigated to a level of insignificance; 3. The property and existing structures are physically suited to accommodate the use; 4. The use will be compatible with the character of the surrounding neighborhood, and the addition or continued maintenance of the use will not contribute to changing the residential character of the neighborhood (e.g., creating an over - concentration of residential care or bed and breakfast uses in the vicinity of the proposed use). In making this finding or sustaining the finding, the Hearing Officer and /or Council shall consider, as appropriate, all of the following factors: a. The proximity of the use location to parks, schools, other conditionally permitted uses of the same or similar type, outlets for alcoholic beverages, and any other uses that could be affected by or affect the operation of the subject use; b. The existence of substandard physical characteristics of the area in which the use is located (e.g., limited available parking, lot widths, narrow streets, setbacks, short blocks), and other substandard characteristics that are pervasive in certain areas of the City of Newport Beach, including portions of Balboa Island, Balboa Peninsula, Corona Del Mar, Lido Isle, Newport Heights, and West Newport, which portions were depicted on a map referred to as the Nonstandard Subdivision Area presented to the Commission on September 20, 2007, and on file with the Director; and c. In the case of residential care uses, whether, in light of the factors applied in subsections (H)(4)(a) and (b) of this section, it would be appropriate to apply the American Planning Association standard of allowing only one or two residential care uses in each block. L Median block lengths in different areas of Newport Beach widely range from three hundred (300) feet in the nonstandard subdivision areas to as much as one thousand four hundred twenty -two (1,422) feet in standard subdivision areas. ii. The average calculable block length in much of the standard subdivision areas is seven hundred eleven (711) feet and the calculable median block length is six hundred seventeen (617) feet. iii. The review authority shall apply the American Planning Association standard in all areas of Newport Beach in a manner that eliminates the differences in block lengths. iv. In making this determination, the review authority shall be guided by average or median block lengths in standard subdivisions of the City. v. The review authority shall retain the discretion to apply any degree of separation of uses that the Hearing Officer deems appropriate in any given case. vi. A copy of the American Planning Association standard is on file with the Director. 5. The operation of buses, vans, and other vehicles used to transport residents, clients, visitors, guests, and /or staff to and from off -site activities or parking areas does not generate vehicular traffic substantially greater than that normally generated by residential activities in the surrounding area; 6. Arrangements for delivery of goods are made within the hours that are compatible with and will not adversely affect the peace and quiet of neighboring properties; and 7. Arrangements for commercial trash collection in excess of usual residential collection are made within hours that are compatible with and will not adversely affect the peace and quiet of neighboring properties. 97 INTENTIONALLY BLANK PAGE 92 Attachment H Correspondence and Neighborhood Petition INTENTIONALLY BLANK PAGE 100 To: Cosylion, Matt Subject: Sober Living facility at 610 36th St/ 611 Clubhouse Hi Matt, I want to bring to your attention that a individual has started a business next door to me. It is a sober living facility that has taken over the bottom and top of the duplex at 610 36th st! 611 Clubhouse. What I have observed is 6 people living in the downstairs unit and 6 people in the upstairs unit, thus 12 total. There is only one person who is a full time residence in the property. That individual is running the facility with the owner of the properties consent. The other 11 people change about every 2 weeks, thus leaving myself and my family VERY uneasy with the turn over of people living so close to us. Other issues we have with the property is the constant second hand smoke from all areas, front porch, side of house and back balcony. Individuals will smoke less the 3 feet outside my children's bedroom window. Other residences in the area have also complained about the second hand smoke. Not to mention the litter from the cigarettes. Noise is also a constant issue from the property. Example of noise: all 12 individuals come home at 11:00 pm after their meetings and bother my children whom are sleeping along with the neighbors. Other issues that we have experienced is parking which I believe they have been cited many times and is a huge problem. Disturbances that we have experienced in the last week are August 30th they had a large gathering of people (40 plus) till after midnight -- Police were called. Sept. 2nd Verbal confrontation between individual running facility and one of the short term guest involving profanity and verbal threats that neither my 8 year old boy or 7 year old girl need to hear. Later that night we observed an intoxicated young lady sitting outside a neighbors residence (609 39th St) and she was found by them and called other to come help the situation. I have lived at 608 36th st for the last 20 years and have never experienced the problems and issues that we are now having with this business that is now operating in the property next door. Let me know if you need any additional information. What are the options that City of Newport Beaches have to rectify this situation? Thanks for all your help. 101 Sent: Thursday, September 05, 2013 9:21 AM To: Cosylion, Matt Subject: "Sober Living" Facility at 610 36th/611 Clubhouse Dear Matt, I was given your name by one of my neighbors, -, regarding a newly established "sober living" facility at 610 36th St. /611 Clubhouse Ave. I live two doors down (my address is 617 Clubhouse), and I am very concerned about the presence of this facility in our neighborhood for several reasons, as follows: 1. In what is intended to be a residential neighborhood, one property owner has decided to turn his property into what amounts to a boarding house, renting space to 12 individuals for short periods of time, rather than to a family, or to one or two individuals for longer, normal residential lease periods. This introduces an unknown element into the neighborhood that is a threat to the many children, families, and elderly homeowners in the neighborhood. In many instances large gatherings of these short-term residents have resulted in loud and profane conversations that go on into the night. In at least one instance, one of the residents of the sober living house attempted to charm his way into an elderly neighbor's house, for what reason, who knows, but since he had just met her, I doubt his efforts were motivated by good intentions. 2. Although I live two doors down from this house, the sheer volume of smoke that emanates from the residents, particularly as they constantly gather on the front patio and chain smoke, actually makes its way into my bedroom. This makes it very difficult to sleep when I keep smelling smoke coming into my bedroom from this facility down the street. Related to the smoke is the marked increase in discarded cigarette butts, not only around that house, but around the neighborhood. 3. The short-term residents of this facility apparently have a complete disregard for anyone other than themselves, making daily life for the people who make this neighborhood their home much more difficult. One example are the wandering residents who feel compelled to walk around the neighborhood while talking on their cell phones at all hours of the day and night. I am a researcher and writer, and I do most of my writing in my home office, and as such, when there are constantly people whom I do not know walking by my window and talking on their phones, it is disruptive to say the least. Further, when, as happened last night, they decide to take their phone conversations around the neighborhood late at night, it intrudes on my ability to get to sleep (and stay asleep), and to have a restful night, so I can actually work the next day. 4. Although it is difficult to tell, it doesn't appear as though many (or any) of the people who are in residence at this facility work during the day. The result is that we have a houseful of strangers who are in our neighborhood all day, every day, while the neighborhood residents are away at work. I'm not suggesting that all of these people are necessarily dishonest, but since they are individuals unknown to residents in the neighborhood, it is difficult to know what they are doing, or are capable of doing at any given time. 5. I have recently discovered that our carport which is a short walk and out of sight from the house in question has been used at night for drinking and smoking (whoever has used it in this 102 way is apparently too lazy to find a trash can for their beer bottles and cigarette butts). Although I can't say for sure who has used it in this way, this never happened before this business set up shop in our neighborhood. I have lived at 617 Clubhouse Ave. since 1997, and this neighborhood has never before experienced the nature and volume of problems that this sober living facility has introduced in the time it has been in business. We need to have this problem solved, preferably with the house being returned to it's acceptable use in the neighborhood. As such, I'm hoping the City of Newport Beach has resources available to help solve our neighborhood problem. Thanks for all your help, and let me know if there is anything you may need from me as we all seek to solve this problem. iO3 Sent: Tuesda October 29, 2013 11:03 AM To: ; Cosylion, Matt; Whelan, Melinda Subject: Re: Sober Living facility at 610 36th St/ 611 Clubhouse Hi Matt and Melinda, I now know the organization that is running the facility next door. It is called The Ohio House founded by Brandon Stump. I am sure you already know this info, but thought I would bring it to you attention just in case. www.ohio- house.com They already have photo's of the location next door on the site. Please let me know what is going on with this sober living facility that is already operating. Per terms of cities lawsuit " 90- written notice for the next 21 years prior to permitting new sober homes to operate in the city." How can they be operating this facility now? Ii Sent: Wednesday, Janua 22 2014 2:48 PM To: Cosylion, Matt; r Subject: Sober Living House - -610 36th/611 Clubhouse Hi Matt, I've attached a few photos documenting what are some new developments at this sober living house at 610 36th/611 Clubhouse. The photos labeled "sob living cig butts" (2 photos) were taken on Dec 1. It's a bit difficult to see all the "butts," but I stopped and picked up over 20 cigarette butts before the guy who claims to be in charge of the house rushed out to intercept me. He acknowledged that his "guys" were throwing the butts into the street (note also the red plastic cup in their driveway), and he said he would "talk to them" about not throwing their trash into the street. Since that little conversation, there are fewer butts in the street/gutter /alley under their balcony, but they are still being thrown out there. The photos labeled "sob liv garage" (4 photos) were taken yesterday (Jan 21) and today. Over the past month or so we have noticed that they have set up one of their garages with chairs, a table, and a rug, so they can congregate, hold meetings, smoke, and generally hang out. Since we noticed this, the garage door has been kept partway closed and blocked with a car parked in front of it, most likely to try to hide what they're doing (there is a side door that leads to the sidewalk that goes along the side of their building, which provides access). This morning (Jan 22) as I was walking down Clubhouse about 8:00 am, the car was gone and I noticed there was one guy already in the garage. As I walked past, another guy joined him, crossing past the partially closed door and entering through the side door. I went for a run and came back about an hour later, and they were still sitting in there (see photo "sob liv garage -I " -- you can just make out their legs). Later I noticed a car parked as one usually is in front of their garages (see photo "sob liv garage - 4") but with the garage door closed all the way, and with the side door still open. I know they saw me taking photos of the garage this morning, and surmise that they closed door and parked car in front of it (as usual) effectively hiding how they're using the garage. I find this to be a pattern with the residents of the house. If they observe that we've noticed (and perhaps documented) anything that might be objectionable, they hide what they're doing rather than keep the house and their activities as they should be. (Which, now that I think about it, is kind of how they set up their whole operation!) Finally, the house is just a pig sty outside, as you can see from these limited photos. Look for instance at the photos "sob liv cig butts -1" and "sob liv garage -3"- -the bike attached to the palm tree hasn't moved since it was placed there sometime last fall or even summer, but definitely since Dec 1 when I took the cigarette butts photos. Same with all the crap in the alley way in front of their garages. It always looks terrible The guy who supposedly is in charge of the house has said to me, "let me know if there are any problems," but I really don't understand why we should have to ask them to keep a neat and tidy place. On this count, I would complain about anybody, not just this sober living house, I just think that's a responsibility of living in a neighborhood. (Note that the parking lot on Clubhouse Ave that I submitted a complaint about in July still looks horrible!) 105 On the note of letting the fellow in charge know something was bugging us, I mentioned all the smoke coming from that house, and that it happened all the time. He basically blew me off by saying, "they have a right to smoke when they want to." I'm hoping my wife and I have a right to not have smoke come into our house at all times of the day and night because of their supposed right to smoke when they want. I wish I could photo- document the smoke that actually casts a pall over the entire neighborhood. When they are out smoking -- usually in twos, threes, or fours, or even more people, the smoke just hangs in the air, permeating everything. Last night I was out walking the dog, and the smoke coming from the 610 36th St. front patio was illuminated by a car coming in behind it. I was frankly shocked at the volume of smoke - -to say nothing of the smell - -as it was illuminated by the headlights from the car. 100 107 moft l V m To: Cos lion Matt Cc: Subject: Re: Sober Living House - -610 36th/611 Clubhouse Matt, Here are two more photos of the garage usage at the 610 36th/611 Clubhouse sober living house. These were taken at 11:00 pm Jan 23. The website for this group says they require lights out at 11:00 pm. 1D9 To: Cos lion Matt Cc: Subject: Sober Living House - -610 36th/611 Clubhouse Matt, A couple more examples of cars at this house parking/blocking the alley on the Clubhouse St. side. This is typical behavior for this house, and completely blocks access /exit from the alley. I took these around 5pm on Jan 27. r 110 To: Cos lion Matt Cc: Subject: Sober Living House - -610 36th/611 Clubhouse Matt, A couple more photos of the sober living garage meeting space and how it is located in terms of the activities of the neighborhood. Photos were taken at about 5pm, Jan 25. Lots of kids in the neighborhood that like to play basketball or other games in the alley -way (it is protected from the street traffic), right next to /out front of where these guys congregate to smoke, talk about their sexual conquests (yes, seriously), etc., in their garage. Three photos: photo #1 showing kids playing this evening, photo #2 showing that the sober living residents have their garage meeting space all ready to go, lights on and car blocking the garage door and the alley -way. Note that the kid in the black sweatshirt is in each photo, demonstrating that these photos were taking at the same location/time. He's behind the other kid in the pink t -shirt in photo #1, and by himself in photo Q. Thanks. 111 112 i WIN. 113 2l-/+ ¢6cavi D N COMMUNITY REQUEST FOR PUBLIC HEARING AND OCT 0 S 2013 GROUNDS FOR DENIAL OF APPLICATION C� DEVELOPMENT We have Street, 611 Clubhouse (hereinafter efe ed to such s "the information bje t property "), has requested that t1twPots.% City of Newport Beach grant permission or a license for group residential use of the subject property, commonly referred to as a Sober Home Facility (hereinafter referred to as "the business "). Based on comments made by the owner of the subject property and observations by neighbors, it is believed that such residence has been operated as a group residence for approximately one year with six or more individuals living in one unit, and that six or more individuals have or will shortly occupy the other unit. We assume that such business has not been licensed as a stand alone ADP licensed treatment facility serving six or fewer people, and that the owner of the subject property has requested or will request a "Reasonable Accommodation" from the city of Newport Beach. We have not received any notice of any public hearing on the owner's application under Ordinance 2008 -05 and request such a public hearing if or when such application is submitted. We feel that the applicant has been operating this business on the subject property without a license or permit, and that this application has been made or will be made by one with unclean hands. More importantly, we oppose the owner's application since such an accommodation will result in a direct threat to the health and safety of the neighbors. Amongst other matters which will be raised at the hearing, are the following: The neighboring properties are very close to this property. The only open space in the subject property and the neighboring properties are small front patios. Some neighbors have experienced second hand smoke from the many occupants in the subject property smoking on the patio. Some neighbors have questioned whether there is any supervision. There have been multiple parties at the subject property extending into the late night with music and loud talking on the patio. Some neighbors have reported litter left on the sidewalk in front of the subject property, including beer cans, following these parties as well as finding alcohol containers and cigarette butts left in the alley. Some neighbors are of the belief that the operation of a group residential home in the neighborhood is unadvisable with minor children residing next door. Some neighbors have heard profanity from the occupants while sitting on the patio. 115 Since this owner has purchased this property and started the business there have been multiple cars broken into in the neighborhood with items stolen such as change out of ashtray, a computer, etc. For the foregoing reasons, a public hearing on the owner's applications is hereby requested, as well as denial of the same. Name e 6 ' Name N-a-- Name ct Address Address Address O�PIc Address 4e� 0-7 X6.7/, 5 �C_ /I- Address �l-4 Address Address 4IY z ������ 9 ✓� Address A ee7 Address (o 0C1 Address 110 Name V I� ail " Address Address 6 o 3 st. 117 INTENTIONALLY BLANK PAGE 228 Attachment I Code Enforcement Letter Dated January 29, 2014 119 INTENTIONALLY BLANK PAGE 120 January 29, 2014 CITY OF NEWPORT BEACH COMMUNITY DEVELOPMENT Kevin P. Gluntz, Esq., LLM 685 Ashbrooke Way Hudson, Ohio 44236 kevinA-kgluntzlaw.com RE: The Ohio House, 610 36°i Street, Newport Beach, CA Dear Mr. Gluntz, Thank you for taking the time to speak to me about the recent complaints filed with the City regarding the Ohio House. Specifically, the City has received complaints that the garage(s) for the property are not available for parking, resulting in staff and /or clients parking their vehicles in the public alley and sidewalk behind the property. Additionally, it has been reported that your clients are leaving cigarette butts on the public sidewalks and streets adjacent to the facility. As we discussed, the garages should be kept clear and accessible for parking as required by Newport Beach Municipal Code ( "NBMC ") 20.40.030. Furthermore, it is a violation of NBMC 10.50.020 (f) to interfere with the use of any public sidewalk and alley. You are encouraged to remind all staff and clients that their vehicles may be cited for obstructing the public right -of -way. In regards to the cigarette butts, NBMC 6.04.060 and NBMC 14.36.030 prohibit the disposal of trash, including cigarette butts, on any street, sidewalk, or other public place. Please coordinate with your staff to ensure that all cigarette butts are picked up on a daily basis, and cigarette butt receptacles are located near designated smoking locations. In addition to the aforementioned concerns, please ensure the Ohio House operates in compliance with all other sections of the City's Municipal Code including those pertaining to trash, noise, and property maintenance. If no other complaints are received, the City's investigation into this matter will be closed and no further enforcement action will be necessary. On behalf of the City, 1 would like to sincerely thank you for your cooperation in helping to resolve this matter in a timely and amicable fashion. Should you have any questions or concerns regarding this letter, please feel free to contact me at (949) 644 -3217. Sincerely, T� Mat Cosyl on Code Enforcement Supervisor cc: Melinda Whelan, Assistant Planner Jason Guyser, Assistant City Attorney 100 Civic Center Drive • Post Office Box 1768 • Newport Beach, California 92658 -8915 Telephone: (949) 644 -3200 • Fax: (949) 644 -3229 • www.newportbeachca.gol2l To: HEARING OFFICER Subject: ADDITIONAL MATERIALS RECEIVED Attachments: Jpg 2- 16- 2014.JPG; photo 2.JPG; photo 4.JPG; photo 5.JPG ITEM la: ADDITIONAL MATERIALS RECEIVED HEARING OFFICER - FEBRUARY 24, 2014 OHIO HOUSE REASONABLE ACCOMMODATION (PA2013 -198) - - - -- Original Message---- - From: Wells, Peter F. @ OC Central [mailto:Peter.Wells @cbre.com] Sent: Tuesday, February 18, 2014 12:18 PM To: Whelan, Melinda Cc: Cosylion, Matt Subject: 610 36th St and 611 Clubhouse Ave Hello Matt and Melinda, I am the owner and occupant of a residence a few doors down from the above mentioned property. After having numerous problems with the occupants of the property over the last several months, I recently learned that the property has been used as an unlicensed and unpermitted sober living facility, housing up to 11 full time inhabitants (although there are often many more people on site at all hours of the day, night and early morning hours). Please call me at your convenience at the number below to discuss, or reply and let me know a convenient time to reach you by phone. I have some questions that I would like some clarification on. This business has caused, and continues to cause numerous problems since occupying the residence including but not limited to the following: - Loud gatherings at all hours, day and night, with vulgar language. This can be heard clearly by residents four houses away. - Heavy cigarette smoking and disposal of cigarette butts into the alley and adjacent palm tree /landscaping. These cigarette butts are not cleaned up, and drain directly into the bay which is less than 100 yards away! This portion of the bay is already polluted and does not flush. On any given day, you can count upwards of 100 cigarette butts behind the property, as well as cigarette butts thrown onto the sidewalk and street in front of the house (36th Street). - Parking: Cars are regularly parked illegally behind the garages in the alley, blocking access. Sometimes four deep, completely blocking access to the alley for emergency vehicles. There is no way a fire truck could navigate around the cars. These cars come and go at all hours of the day and night. See the attached photo that I took two days ago (Sunday February 16th). In the evenings and late hours of the night, there are typically 1 -2 more cars parked behind the garages (4 in total!). - The business claims that only the manager and one other occupant has a car. This is simply not the case. I have counted at least 8 different cars (the same cars) parked in front of and behind the property regularly, although never in the garage which has been set up as a meeting area. - Multiple cars coming and going at all hours, day and night: There are constantly cars coming and going to the residence /business. A good number of these cars speed through the neighborhood, exceeding the speed limit and safe speeds. The streets are narrow and this is dangerous. The drivers have complete disregard for safety and an accident is inevitable. Small children live and play regularly in this neighborhood. I observed a Subaru speed past last night exceeding 30mph arriving to the house. 1 I have read the Ohio House Reasonable Accommodation file on the city website. I am curious how and why at the July 24, 2013 meeting, the operator provided information that there were only 5 male clients and one house manager, but in their application on September 20, 2013, they state that there are 10 clients plus a manager occupying both units, and they had been doing so since BEFORE the July 24th meeting with the city where they stated there were six occupants ?: "On July 24, 2013, City staff and the Operator met to discuss the use of the property as an unlicensed residential care facility. During the meeting the Operator provided the following information: Ohio House does not intend to license its facilities by the State Newport Beach location is for a maximum five male clients and one house manager Designated smoking area is outside on patio On September 20, 2013, an application package was filed.Staff noted that the application request had expanded to include both units of the duplex, upper and lower floor, with an increase to 10 clients and one house manager. In response to staff's inquiries, the Operator, confirmed that the facility occupies both units with 10 clients and one house manager and was expanded in June 2013 prior to the July 24, 2013, meeting with the City." Also, regarding Matt's letter dated January 29, 2014 to the Ohio House attorney, he mentions that, "If no other complaints are received, the City's investigation into this matter will be closed and no further enforcement action will be necessary." Is this correct? Will they be allowed to continue operating this business in violation of municipal codes and zoning? I have attached photos I took two days ago showing the parking, and this morning showing cigarettes. I object that a business has been operating and profiting while being knowingly in violation of city codes for almost a year now, at the neighbors' expense. I am opposed to granting any variance to existing codes, or permits granting continued operation of this use. The operator has taken the tactic and strategy that it is easier to beg for forgiveness than ask for permission, and the surrounding residents are being forced to deal with the consequences on a daily basis. I look forward to your call or reply with a time that is convenient to call you when you have a few minutes for a couple questions. Thanks, Peter Wells Peter Wells I Vice President Lic. #01718361 WARNER I FRIEND I HILL I WELLS CBRE I Brokerage Services 1100 Town and Country Rd., Suite 1200 1 Orange, CA 92868 T 714 371 9220 1 F 714 371 9333 peter.wells @cbre.com I www.cbre.com Please consider the environment before printing this email. z �,r k' -� _ •, o x ,1 Ilk- FIB. ,y 3 � n !p � r f RF_ [-or cm L 'L7 smr i + 1 t y n' Iq t y I 1 I Ll NUMEW "w 0 a �`;�,; l I t 4 IP .-s..._ _ w` . w f" 1 " � t 1 (lI111r 1J' Y I r, Item 1b: Additional Materials Received Hearing Officer - February 24, 2014 Ohio House Reasonable Accommodation February 18,2014 To: City of Newport Beach Att. Community Development Department M. Whelan Assistant Planner Subject: Ohio House /Ohio House LLC PA 2013 -198 61036 th street Reasonable Accomodation # RA2013 -001 PLEASE DISTRIBUTE THIS CORRESPONDENCE TO THE HEARING OFFICER AND ENTER INTO THE PUBLIC RECORD- TESTIMONY AND REQUEST TO DENY REASONABLE ACCOMODATGION TO WHOM IT MAY CONCERN: We are aware of the 10- client nonlicensed residential care facility currently under consideration by the City for Reasonable Accomodation to continue operation of its business. We respectfully request that the Hearing Officer deny any accommodation for the following reasons: Applicant is an established business, and failed to obtain the required licenses and permits. Furthermore, applicant has knowingly established a large residential care facility in a dense, Family residential zone, R -2. The City's zoning code protects family zones . The City has provided more than adequate opportunity for such businesses to establish in Multifamiily MFR zones, subject to Conditional Use Permit. 2. There are already more than sufficient similar residential facilities —there is no need for accommodation for an additional business of this nature to be established, particularly in the Penninsula zone, which houses more than 80% of the City's drug and alcohol residential care facilities. 3. This particular applicant has demonstrated a pattern of practice that jeopardizes public health and safety from several respects: a. Repeated concentration of Smoking, causing neighbors to be exposed involuntarily to concentrations of second hand smoke( residences in the neighborhood are in close proximity to one another,with narrow lots and building setbacks of 6 -8 ft. b. Neighbors have also complained of other nuisances including littering, loud noise, and parking impairing others passage. c. Appllicant claims to offer only a 'living place ". Yet Applicant publicly markets the facility as a "Treatment " facility( ref. website,other marketing); addresses Treatment elements in its service contract with its Clients(reference its Item 1b: Additional Materials Received Hearing Officer - February 24, 2014 Ohio House Reasonable Accommodation Application); and also applies supervision and rules characteristic of a Treatment business addressing drug addiction. Furthermore, the operation requires that clients receive "treatment' (through 12 -step or other methodology) ; and, the Facility Manager is vested with authority to oversee possession of prescription and nonprescription drugs. We respectfully request that the Hearing Officer and the City deny Reasonable Accomodation, and direct this business to cease and desist operation - - -for the safety of all concerned. Thank you for your consideration. Fred Levine Linda Klein Denys Oberman Jerry Rorach Residents of the Balboa Penninsula. Item 1c: Additional Materials Received at Hearing Hearing Officer - February 24, 2014 Ohio House Reasonable Accommodation The Ohio House 610 361h Street & 611 Clubhouse Ave January 2014 P/L statement Revenue G1- G2- G3- G4- G5- G6- G7- G8- Manager - Total Revenue= Expenses 610 36th street Rent - 611 Clubhouse Rent- Manager Pay - Electric (both houses combined) - Cable /internet (both houses combined) - Gas (both houses combined)- Total Expenses= 1300 1500 0 1500 1500 800 1500 1500 0 $9,600 4,500 4,500 1,600 150 400 80 $11,230 Profit (Loss)= (- $1,630) 2nd hand smoke kills 'larking and child safety 60836 th 5T Lived in property since 1990 btu F 1 OHIO HOUSE Sun -Thurs Quite time 10:30 pm `Id= 11:00 pm Fri -Sat Wrest 1:00 am "Applicant does not permit smoking on property" "Residents are forbidden from using lewd language and a 10 PM lights out curfew is enforced." Have to bring kids inside and shut doors and windows "The neighborhood is hardly even aware of the existence of the residents and the make -up of the housing actually improves the character of �t�h�.er neighborhood if it affects it at all." C - tt` The city has received numerous letters, emails, Phone calls, and a neighborhood petition about negative secondary impacts to the neighborhood. Litter February 13, 2014 @ 8:03 pm Off to hospital again, in front of my kids Item 1e: Additional Materials Received at Hearing Hearing Officer - February 24, 2014 Ohio House Reasonable Accommodation My name is Cindy Koller, West Newport I would like to submit this for the record. It is a copy of Ohio House's website printed on 2 -23 -2014. First, we as a community are compassionate and completely supportive of legal recovery homes and we have shown this as a city with over 335 beds most concentrated on our small Peninsula where Ohio House is currently operating. I find it interesting the Owner of Ohio House requests all of his clients to sign an admissions agreement which every person must follow in order to stay at his Recovery business @ 610 36th St. while he blatantly disobeyed our local and State laws. One would assume if you owned 8 other recovery businesses you would be familiar with State and local laws and operate accordingly while setting an example for your clients and working in good faith with the City. The State Dept of health care services has sole authority to license facilities providing 24 hour non medical residential services which this operator states he provides according to his website. Licensure is required when at least on of the following services are provided: detox, group sessions, individual sessions, educational sessions, or alcoholism or drug abuse recovery treatment planning. According to the State's website "Sober Living operators are required to comply only with local zoning and occupancy ordinances ". If this business was truly just a sober living home the business has also operated illegally in this capacity as well as he has not followed our local municipal and zoning laws. Ohio House had never applied for permits or licenses until they were turned in my the neighbors. Ohio House has lied to the city at the July meeting with regards to the upstairs unit not being occupied. Ohio House has operated a 7 and over illegal use in a R2 zone which is illegal per our municipal zoning code. Ohio House has operated a 7 and over without the proper R4 permits. Ohio House has operated a 7 and over integral facility without a State license. This owner has demonstrated a disregard for our local and state laws which are set forth to protect the safety and integrity of our dense residential neighborhoods and to also protect the clients living inside these homes. I would respectfully asked you to deny this reasonable accommodation. Thank You Structure I The Ohio House Page 1 of 2 NEDHOUSEOUR PURPOSE THESTORY STRUCTURE NEVJS e The Ohio House believes that a solid routine ensures a grounded foundation for our residents. We expect all of our family to adhere to a strict set of daily activities. Depending on the resident's situation, a day in the life of The Ohio House looks . something like this: 1111-iW11 7:30 AM Wakeup 9:00 AM Work or IOP • 2:30 PM Gym • 4:00 PM Drug & Alchohol Testing • 5:00 PM Dinner • 7:00 PM Meeting • 11:00 PM Lights Out CONTACT To recover, we feel each resident can and will follow some simple rules. Each residence is assigned a House Manager to ensure a safe and structured environment for the recovering. Rules are in place as a vessel to a sober lifestyle. i • Complete daily chores • Adhere to nightly curfew • Must be employed, in school or attending outpatient therapy • Submit to alcohol and drug testing twice weekly • Attend all house meetings • Active in a twelve step program • No violence or aggressive behavior REQUEST MORE INFORMATION We provide each resident the opportunity to be held accent a daily basis. House rules hell individual become reliable, responsible, honest and self supporting. The Ohio House c additional assistance to our r so that the path they walk car beneficial mentally, physically monetarily. Pr^. tf�, • Food Card Distribution • Ride Services • Life Coaching • Gym Membership • Intensive Outpatient Pro€ • Nutritionist Meal Plannini • Personal Training Physica • Job Placement Assistance • Sober Companionship * May incur additional costs. i inquire for more information. http: / /ohio- house.com /structure/ 2/23/2014 Our Purpose I The Ohio House Page 1 of 4 I nn HOUSE OUR PURPOSE J �i http: / /ohio- house.com /our - purpose/ CONTACT C The Ohio house is a safo structured environrnen seeking recovery from dr alcohol. Our purpose is tc residents with the tools n achieve long term sobriet that every person that wE our door is a member of We are passionate about and guide each resident t emotional, physical and s development. CONTACT US TODAY 2/23/2014 Our Purpose I The Ohio House Search ... SEARCH http://ohio-house.com/our-purpose/ Page 3 of 4 Meryl offers a new way of n Yoga and meditation are m with truest self - acknowlec helps give one the power bi relaxed mind. Feelings of bi wonder, are afterthoughts. yoga styles, and experience contribute fresh ideas, and is substituted for living -foot foods as medicine, and nuts ® Thanksgiving at The December 2, 2013 • MEXICALI DEEP SEA F September 30, 2013 • Team Building Bootci 16, 2013 2/23/2014 Our Purpose I The Ohio House Page 2 of 4 My name is Robby Morse, h 11 years ago in Texas and n my sobriety competing in b sobriety a boxing match in �i saw differently, I was introd team, and before I knew it I fearful as it was, proved to i each time walking through After boxing I went on to ge training athletes. For some amateur boxing team, I just in Brandons office one day under my nose, guys just lik Brandon and he loved it, ag vision with the Ohio House boxing team is to coach willing men to trai with each other some awesome experiences in sobriety. http://ohio-house.com/our-purpose/ 2/23/2014 The Department of Health Care Services (DHCS) has sole authority to license facilities providing 24 -hour residential nonmedical services to eligible adults who are recovering from problems related to alcohol or other drug (ADD) misuse or abuse. Licensure is required when at least one of the following services is provided: - detoxification,.group sessions,windividual %sessions, educational sessions, or alcoholism or drug abuse recovery or treatment planning. Additionally, facilities may be subject to other types of permits, clearances, business taxes or local fees that may be required by the cities or counties in which the facilities are located. You may also want to check with your county alcohol and drug program office to ensure compliance with any requirements they might have. Many facilities licensed by DHCS are also certified. Certification by DHCS identifies those facilities which exceed minimum levels of service quality and are in substantial compliance with State program standards, specifically the Alcohol and /or Other Drug Certification Standards. Additional information on Facility Certification is available on this website at the Providers & Partners tab above. Not quite ready to operate a licensed facility? There are some residential facilities that do not provide AOD services and do not require Licensure by DHCS. These include cooperative living arrangements with a commitment or requirement to be free from alcohol and other drugs. These cooperative living arrangements may be referred to as sober living environments, sober living homes, transitional housing, or alcohol and drug free housing. It is important to note that while sober living environments or alcohol and drug free housing are not required to be licensed by DHCS, operators are required to comply only with IocaV zoning and occupancy^ordinances. For more information please contact the California Association of Addiction Recovery Resources on the web at http: / /www.caarr.orgi or by telephone at (916) 338 -9460. Residential facilities licensed by other State departments such as the Department of Social Services (DSS) or the Department of Public Health (DPH) do not require a residential ADD license by DHCS. hftp://www.dhcs.ca.gov/provgovparUPages/FacilityLicensing.aspx