SACRAMENTO CONTRACT

ROUTING SHEET
Office of the City C erk

Contract Cover/Routing Form: Must Accompany ALL Contracts; however, it is NOT part of the contract.

General Information (Required)

Original Contract # (supplements only): Supplement/Addendum #:
Assessor's Parcel Number(s):
Contract Effective Date: 08/08/2022 Contract Expiration Date (if applicable):
$ Amount (Not to Exceed): Adjusted $ Amount (+/-):
Other Party: Wang, Zuhu
Project Title: Wang, Zuhu v. City
Project #: Bid/RFQ/RFP #:
City Council Approval: NO if YES, Council File ID#:
Contract Processing Contacts
Department: City Attorney Project Manager:
Contract Coordinator: Email:
Department Review and Routing
Accounting:
(Signature) (Date)
Supervisor:
(Signature) (Date)
Division Manager:
(Signature) (Date)
Other:
(Signature) (Date)

Special Instruction/Comments (i.e. recording requested, other agency signatures required, etc.)
Recording Requested Other Party Signature Required

FOR CLERK & IT DEPARTMENTS ONLY DO NOT WRITr --A"c — 7 THIS LINE
2022-0870

CC Rev. 12.19.2018
Contract #2022-0870

SETLEMENT AGREEMENT AND RELEASE OF CLAIMS

This Settlement Agreement and Release ("Agreement") is entered into by and

between the Defendant City of Sacramento ("City" or "Defendant") and Plaintiffs Zuhu
Wang and Xiaoyan Yue (collectively "Plaintiffs"). Defendant and Plaintiffs may be
collectively referred to herein as the "Parties."

RECITALS
A. Plaintiffs are the owners of the residential property located at 8651 Forte
Street, Sacramento, California ("Subject Property").
B. On September 26, 2018, Defendant issued an Administrative Penalty
pursuant to Sacramento City Code Chapter 8.132 against the Plaintiffs in the amount of
$137,500.00, alleging that 275 cannabis plants were being cultivated at the Subject Property.
C. On October 22, 2018, Plaintiffs submitted an Administrative Appeal
("Administrative Appeal") of the Administrative Penalty.
D. On May 31, 2019, Plaintiffs and Defendants provided evidence and testimony
on the Administrative Appeal to a hearing examiner.
E. On June 21, 2019, the hearing examiner issued a decision upholding the
imposition of the Administrative Penalty but reduced the amount of the Administrative
Penalty to $35,000.00, which the Plaintiffs paid on July 10, 2019.
F. On July 2, 2019, Plaintiffs filed an appeal of the hearing examiner's decision
on the Administrative Penalty in Sacramento County Superior Court (Case No. 34-2019-
00259673) pursuant to Government Code section 53069.4.
G. On September 16, 2019, Plaintiff Zuhu Wang filed a lawsuit in Sacramento
County Superior Court (Case No. 34-2019-00264523) pursuant to California Code of Civil
Procedure section 526a, naming the City, Police Chief Daniel Hahn and City employee
Allison Joe as defendants ("Taxpayer Action"). The Taxpayer action was subsequently
amended to dismiss Allison Joe as a defendant and add City employee Leyne Milstein as a
defendant. In the Taxpayer Action, Plaintiff Zuhu Wang alleged that the City's efforts to
enforce violations of Sacramento City Code Chapter 8.132 violated various provisions of
California and federal law.
H. During the course of the Parties' efforts to resolve the Taxpayer Action and
Administrative Appeal, Plaintiffs stated their intention to pursue an action alleging
malicious prosecution against the City ("MP Claim") premised upon the City's issuance of
the Administrative Penalty and ongoing prosecution of the Administrative Appeal.
 I. The Parties have engaged in ongoing negotiations regarding the Taxpayer
Action, Administrative Appeal, and MP Claim (collectively "Contested Claims") in an
effort to resolve their differences, and throughout these negotiations the Parties were, and
continue to be, represented by counsel.
J. The Parties wish to avoid the potential uncertainty, expense, and delay of
litigation and have therefore, based upon their negotiations, agreed to resolve and release all
disputes and claims actually raised or that could have been raised in the Contested Claims,
as set forth in this Agreement.
NOW THEREFORE, in consideration for the mutual promises and undertakings of
the Parties as set forth below, the Parties enter into this Agreement and agree as follows:
TERMS

1. Settlement Payments.
A. Within 21 days of the effective date of this Agreement, City will pay to
Plaintiffs the sum of $45,538.36, representing a refund of the $35,000.00
Administrative Penalty, plus simple interest at 10% per annum from July 9, 2019
through July 13, 2022.
B. Within 21 days of the effective date of this Agreement, the City shall pay to
Plaintiffs' attorney of record, Vallejo Antolin Agarwal & Kanter LLP, the sum of
$650,000.00.
C. The payments provided for in Subparagraph 1A(i)-(ii) shall be made by
check payable to "Vallejo Antolin Agarwal & Kanter LLP — IOLTA" and
transmitted to Vallejo Antolin Agarwal & Kanter LLP, Attn: Monty Agarwal, 3021
Citrus Circle, Suite 220, Walnut Creek, CA 94598.
2. Process.
A. The Sacramento City Attorney's Office ("CAO") shall utilize best
practices to ensure that there are no inappropriate ex parte communications between
City staff and the hearing examiner and shall, by issuance of a written policy,
continue to maintain appropriate due process screens between the attorneys that
prosecute cannabis cases and the attorneys that advise the hearing examiner.

B. Within 30 days of the effective date of this Agreement, the City will
amend the Rules of Procedure for Cannabis Administrative Penalty Hearings as set
forth in Exhibit A to this Agreement.
3. Dismissal.
Within seven days of receipt of the funds referenced in Paragraph 1, above, Plaintiffs
will file and serve dismissals with prejudice in Case No. 34-2019-00259673 and Case No.
34-2019-00264523, both of which are pending in Sacramento Superior Court.
4. Mutual Release.
In consideration of the covenants undertaken herein, the Parties on behalf of
themselves, and for their respective heirs, executors, trustors, trustees, beneficiaries,
predecessors or successors in interest, assigns, and relatives hereby fully, finally, and forever
release each other, including Defendants City of Sacramento, Daniel Hahn, Allison Joe,
Leyne Milstein, and any officers, employees, elected officials, attorneys and agents and any
other person acting by, though, or in concert with them, from any and all claims, charges,
grievances, complaints, allegations, and causes of action for compensation, damages,
injunctive or other equitable relief, declaratory relief, costs, attorneys' fees, obligations,
losses, expenditures of any kind, or any other form of relief of any nature whatsoever,
whether the existence, nature or extent of the released claim is known or unknown,
suspected or unsuspected, which the releasing parties have or might have, or which the
releasing parties at any time heretofore had or might have had, claimed to have or may
claim to have against the released parties arising in, or in connection with, or out of the
Contested Claims described above and any such claim related to, arising in, or in
connection with, or out of the Contested Claims described above, whether filed in state or
federal court, or with a state, federal or local administrative agency ("Released Claims")
through the date of execution of this Agreement.
5. Waiver of California Civil Code Section 1542.
The Parties expressly waive and relinquish, to the fullest extent permitted by law, the
provisions, rights, and benefits they may otherwise have had with respect to the Released
Claims through the date of execution of this Agreement pursuant to California Civil Code
section 1542, which provides:
"A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS
THAT THE CREDITOR OR RELEASING PARTY DOES NOT
KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE
TIME OF EXECUTING THE RELEASE AND THAT, IF KNOWN
BY HIM OR HER, WOULD HAVE MATERIALLY AFFECTED
HIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASED
PARTY."
6. No Admissions.
The Parties understand that this Agreement is a compromise of disputed claims, and
that nothing herein shall be deemed or construed at any time or for any purpose as an
admission of the merits of any claim or defense.
7. Knowledge of Parties.
The Parties understand and agree to the terms and conditions contained herein and
enter into this Agreement knowingly and voluntarily. Plaintiffs have been advised that they
have the right to seek legal advice with respect to this Agreement, including the release, and
have had the opportunity to consult with counsel. The Parties have relied upon their
judgment, belief, knowledge, understanding, and expertise after consultation with their
counsel concerning the legal effect of the settlement and its terms. By signing this document
and the individual release page, the Parties signify their full understanding and acceptance
of the Agreement.
8. Dispute Resolution/Governing Law.
This Agreement shall be governed by and construed in accordance with the laws of
the State of California. Any claim or action arising out of this Agreement shall be venued in
the Sacramento County Superior Court. In any dispute resolution proceeding between the
Parties in connection with this Agreement, the prevailing party will be entitled to recover its
reasonable attorney's fees and costs in such proceeding from the other party.
9. Entire Agreement.
This Agreement constitutes the entire agreement between the Parties regarding the
Contested Claims and supersedes any prior agreements or discussions between the Parties.
This Agreement may be amended or modified only by a writing executed by each of the
Parties.
10. No Unwritten Representations.
In executing this Agreement, neither Plaintiffs nor Defendants have relied upon any
representation, promise, or statement not expressly contained herein.
11. Assignment.
The parties to this Agreement warrant that they have not assigned or transferred any
interest in any right or claim being released in this Agreement, and further represent and
warrant that in the future, they will not sell, assign, convey, or transfer to any other person
or entity any right or claim being released in this Agreement.
12. Partial Invalidity.
The invalidity or unenforceability of any provision of this Agreement shall in no way
affect the validity or enforceability of any other provision of this Agreement.
13. Mutual Drafting.
This Agreement shall be deemed to have been jointly drafted by the Parties and shall
be governed by and construed in accordance with the laws of the State of California. Each
Party shall bear its own associated costs of preparing this Agreement, including attorneys'
fees.
14. Attorney's Fees.
Except as described in this Agreement, each of the Parties shall bear their own
attorney's fees and costs of suit associated with the Contested Claims.
15. Counterparts.
This Agreement may be executed in any number of counterparts, each of which shall
be deemed an original, but all of which together shall constitute one-in-the-same document.
16. Electronic Signatures.
It is anticipated that this Agreement may be executed with the use of electronic
signatures. Each signatory to this Agreement authorizes the use of their electronic signature
to effectuate the terms of this Agreement.
17. Authority to Execute.
Each signatory to this Agreement warrants to the others that each of them has the
full power and authority to execute, deliver, and perform under this Agreement.
18. Effective Date.
This Agreement shall become effective following execution by all Parties and their
respective counsel.

Aug 11, 2022

Dated: , 2022 CITY OF SACRAMENTO

By: Howard Chan (Aug, 11, 2L.2.1.11:Yr2 PDT)

HOWARD CHAN, City Manager

ZUHU WANG
Dated: , 2022

By:

Zuhu Wang 415-8631498 p.1

14.Attorney's Fees.
Except as described in this Agreement, each of the Parties shall bear their own
attorney's fees and costs of suit associated with the Contested Claims.

15.Counterparts.
This Agreement may be executed in any number of counterparts, each of which shall
be deemed an original, but all of which together shall constitute one-in-the-same document.
16.Electronic Signatures_
It is anticipated that this Agreement may be executed with the use of electronic
signatures. Each signatory to this Agreement authorizes the use of their electronic signature
to effectuate the terms of this Agreement.
17.Authority to Execute.

Each signatory to this Agreement warrants to the others that eac.h of them has the
full power and authority to execute, deliver, and perform under this Agreement.

18.Effective Date.
This Agreement shall become effective following execution by all Parties and their
respective counsel.

Dated: , 2022 CITY OF SACRAMENTO

By:
HOWARD CHAN, City Manager

ZU1-11J WANG
Dated: ,S 0 t72022
 Zuhu Wang 415-8631498 p.1

Dated: 72O22 XIAOYAN YUE

By:

APPROVED AS TO FORM: APPROVED AS TO FORM:

BRETT M. WITTER MONTY AGARWAL

Assistant City Attorney Counsel of Record for Plaintiffs
 XIAOYAN YUE
Dated: , 2022

By:

APPROVED AS TO FORM: APPROVED AS TO FORM:

Nkea-
Brett [0. Witter (Aug 8, 2022 13:10 PDT)

BRETT M. WITTER MONTY AGARWAL

Assistant City Attorney Counsel of Record for Plaintiffs
EXHIBIT A
 CITY OF SACRAMENTO

CANNABIS ADMINISTRATIVE PENALTY APPEAL HEARING

RULES OF PROCEDURE

ADOPTED BY

OFFICE OF CANNABIS MANAGEMENT

Hearing Examiner
City of Sacramento
c/o Office of Cannabis Policy and Enforcement
915 I Street, 2nd Floor
Sacramento, California 95814
(916) 808-8955
 TABLE OF CONTENTS

Section 1 GENERAL PROVISIONS 2

1.01 Purpose and Applicability 2
1.02 Hearing Examiner's Jurisdiction 2
1.03 Interpretation of Rules 2
1.04 Computation of Time 2
1.05 Filing and Service of Documents 2
1.06 Representation 3

Section 2 FILING AN APPEAL 3

2.01 Notice of Appeal 3
2.02 Appeal Fee 4
2.03 Setting an Administrative Appeal Hearing 4

Section 3 DISCLOSURE OF EVIDENCE; SUBPOENAS; CONTINUANCES 5

3.01 Disclosure of Evidence to be Entered into the Record 5
3.02 Subpoenas 5
3.03 Continuances 5

Section 4 APPEAL HEARING 6

4.01 Generally 6
4.02 Burden and Standard of Proof 7
4.03 Hearing Format 7
4.04 Testimony and Evidence 7
4.05 Interpreters 8
4.06 Official Notice 9
4.07 Inspection of Premises 9
4.08 Recording 9
4.09 Interpreters 9

Section 5 HEARING EXAMINER'S DECISION 10

5.01 Issuance of Decision 10
5.02 Contents of the Decision 10

Section 6 JUDICIAL REVIEW 11

6.01 Review of the Hearing Examiner's Decision 11
6.02 Certified Transcript of Proceedings 11
6.03 Certified Record 11
6.04 Transmittal of Records 11

Section 7 REMOTE HEARINGS 12

7.01 Background Information 12
7.02 Remote Hearings Process 12
7.03 Hearing Access & Schedule 12
SECTION 1: GENERAL PROVISIONS

1.01 PURPOSE AND APPLICABILITY

These Rules of Procedure (Rules) are adopted for the appeal hearings for administrative penalties
issued for violation of the Sacramento City Code regarding cannabis matters and are intended to
supplement the administrative procedures set forth in the Sacramento City Code for matters within
the hearing examiner's jurisdiction. In case of conflict between these Rules and the Sacramento City
Code (SCC) or other applicable law, the Sacramento City Code or other applicable law controls.

1.02 HEARING EXAMINER'S JURISDICTION

The hearing examiner has jurisdiction to hear and decide appeals of administrative penalties issued
by the City. (SCC § 1.28.010.D.4.C.)

1.03 INTERPRETATION OF RULES

A. The hearing examiner shall interpret the Rules and determine their application.

B. When questions of practice or procedure arise that are not addressed by these Rules, the
hearing examiner shall determine the practice or procedure most appropriate and consistent with
providing fair treatment and due process.

C. The hearing examiner may refer to the California Rules of Civil Procedure and Civil Rules of
Court for guidance.

1.04 COMPUTATION OF TIME

The time in which any act provided by law is to be done is computed by excluding the first day and
including the last day, unless the last day is a holiday and then it is also excluded. (SCC § 1.04.021.)

1.05 FILING AND SERVICE OF DOCUMENTS

A. Wherever in these Rules it is required that something is to be filed with the hearing examiner,
the documents must be filed as follows:

Electronic Mail: cannabis@cityofsacramento.org

Regular Mail or Delivery: Hearing Examiner

c/o Office of Cannabis Management
City of Sacramento
915 I Street, 2nd floor
Sacramento CA 95814

Telephone: (916) 808-8955

(Note: No facsimile line is available)

B. Wherever in these Rules it is required that something is to be served upon the City, the
documents must be served as follows:

2
 Electronic Mail: Not available. Call the City Attorney's Office to get the contact
information for the attorney assigned to the matter.

Regular Mail or Delivery: City Attorney Office

or Delivery Attn: Cannabis Code Enforcement
City of Sacramento
915 I Street, 4th Floor
Sacramento CA 95814

Facsimile: (916) 808-7455

Telephone: (916) 808-5364

1.06 REPRESENTATION
A. Parties may represent themselves or be represented by any person of their choice. (SCC
§ 1.28.010.D.4.vi.(A).)

B. If the appellant decides to be represented by an attorney, the appellant should contact the
attorney as soon as possible, at least several weeks in advance of the hearing, so they will have ample
time to prepare the case. When an appellant is represented by an attorney, the attorney shall file a
notice of appearance with the hearing examiner and serve a copy of the notice on the City at the
earliest possible time in the proceedings. Once the hearing examiner is notified that the appellant is
represented by an attorney, hearing and other notices will be sent to both the appellant and the
attorney.

C. The appellant may request that an individual or firm (other than an attorney) be formally
recognized as its representative through a notarized document submitted to the hearing examiner
and served on the City prior to the hearing. After filing the request, hearing and other notices will be
sent only to the representative. The representative shall have the same rights as the appellant and
the appellant shall be bound by the statements made by its representative.

SECTION 2: FILING AN APPEAL

2.03. NOTICE OF APPEAL

A. Any responsible party upon whom an administrative penalty has been imposed may appeal
the administrative penalty. "Responsible party" means any person, business, company or entity, and
the parent or legal guardian of any person under the age of 18 years, who has done any act for which
an administrative penalty may be imposed. (SCC §§ 1.28.010.C.4, 1.28.010.D.4.a.)

B. An administrative penalty can be appealed by filing a written notice of appeal within 20

calendar days of the personal service of the administrative penalty order, or within 25 calendar days
of the mailed service of the administrative penalty order. (SCC § 1.28.010.D.4.a, Cal. Code Civ. Proc. §
1013(a).) An appellant will be denied a hearing if they fail to file a notice of appeal by this deadline
without good cause as determined by the hearing examiner.

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C. A notice of appeal must be in writing and contain the following:
1. Identification of the matter being appealed, including the number of the
Administrative Penalty, the appellant's name, and the property address;
2. A brief statement setting forth the interest the appealing party has in the matter
relating to the imposition of the penalty;
3. A brief statement, in ordinary and concise language, of the material facts which the
appellant claims support his, her or its contention that no administrative penalty should be imposed
or that an administrative penalty of a different amount is warranted; and
4. An address at which the appellant agrees notice of the date of the hearing and any
additional proceeding or an order relating to the imposition of the administrative penalty may be
received by first class mail. (SCC § 1.28.010.D.4.a.)

D. The notice of appeal is to be filed with the City Clerk's Office, 5 th floor of New City Hall, after
payment of the appeal fee in conformance with section 2.02. The City Clerk's office can be reached at
(916) 808-7200.

E. An appellant is not limited by the brief statement in the notice of appeal with regard to the
scope of evidence that may be introduced at the hearing to support his, her or its contention that no
administrative penalty should be imposed or that an administrative penalty of a different amount is
warranted.

2.02 APPEAL FEE

Any responsible party appealing the imposition of an administrative penalty is required to pay an
appeal fee or submit a complete request for a fee waiver at the time the written notice of appeal is
filed. (SCC § 1.24.100) The appeal fee is to be paid at the Revenue Department office, 15 t floor of New
City Hall, and this office can be reached at (916) 808-5527 weekdays between 9:00 a.m. to 4:30 p.m.
The amount of the appeal fee is as follows:
A. For violations of sections 8.132.030 or 8.132.040, the appeal fee is $500.
B. For any other violation of chapter 8.132, Cultivation of Cannabis, or any other SCC
chapter related to imposition of administrative penalty for cannabis related matters, the appeal fee is
determined by the level of violation:
1. Level A violation: $500
2. Level B violation: $250
3. Level C violation: $100
4. Level D violation: $ 50
(SCC §§ 1.28.010.D.4.b, 8.132.050.E.2.)

2.03 SETTING AN ADMINISTRATIVE APPEAL HEARING

A. Upon receipt of timely appeal, the administrative penalty appeal hearing date shall be set by
the hearing examiner. The hearing shall be held no sooner than 20 days after the notice of appeal is
filed. (SCC § 1.28.010.D.4.d.)

4
B. The hearing examiner shall send notice of the appeal hearing to the appellant by first class
mail at the address provided with the written notice of appeal. Notice of the appeal hearing shall be
mailed to the appellant at least 15 days before the hearing date. (SCC § 1.28.010.D.4.d.)

C. The notice of appeal hearing contains the date, time, and location of the hearing, and other
important information.

SECTION 3: DISCLOSURE OF EVIDENCE; SUBPOENAS; CONTINUANCES

3.01 DISCLOSURE OF EVIDENCE TO BE ENTERED INTO THE RECORD

A. Within 20 calendar days of receipt of an appeal and payment of the appeal fee (whichever
is later), the City will provide the appellant all evidence in its possession, custody, or
control, that is relevant to the appeal, including, without limitation, the following:
1. A copy - or a description by category and location - of all documents, electronically
stored information photographs, and tangible things that the City has in its
possession, custody, or control and may use to support the administrative penalty;
2. The name and contact information, if known, the address and telephone number of
each individual person likely to have discoverable relevant information - along with
the subjects a description of that information - that the City may use to support its
claims or defenses;
3. Any exculpatory material or information, relevant and material to the outcome of
the appeal, in its possession, custody, or control.

B. Copies of all evidence (including exhibits and briefs) to be entered into the record of the
appeal hearing must be filed with the hearing examiner and served on the City no later than
five ten (&10) business days prior to the hearing date during regular business hours (8 am to
5 pm) pursuant to Rule 1.05. Documents filed later than this time period may only be
considered if the hearing examiner grants an exception to these Rules based on good cause.

3.02 SUBPOENAS
A. The hearing examiner has the authority to issue subpoenas compelling witnesses to appear
and provide testimony or subpoena duces tecum compelling witnesses to produce documents. The
hearing examiner shall issue a subpoena only upon a showing of reasonable necessity by the
requesting party. Failure of either party to comply with any subpoena may be considered by the
hearing examiner in making his/her decision regarding the imposition of administrative penalties.
(SCC § 1.28.010.D.4.e.viii.(D).)

B. A request for a subpoena or a subpoena duces tecum must be filed with the hearing examiner
and served on the opposing party at least 20 days before the scheduled hearing.

C. The request for a subpoena or a subpoena duces tecum shall include, at a minimum, the name
and address of the person upon whom it will be served, the scope of the requested order, and the
reasonable necessity of the subpoena.

5
3.03 CONTINUANCES
A. Once the hearing has been set for a specific date, the hearing examiner may, upon request of
the appellant or the City, or upon his or her own motion, grant continuances from time to time for
good cause shown or by mutual agreement of the parties. (SCC § 1.28.010.D.4.e.iii.) The continuance
request must contain three alternative hearing dates where both parties are available.

B. Requests for continuance must be submitted to the Hearing Examiner, in care of the Office of
Cannabis Management and each party no less than seven business days prior to the scheduled
hearing. Continuance requests received later than seven business days may be approved at the
hearing examiner's discretion. Good cause for the request for a continuance includes military service,
imprisonment, pending criminal hearing for the same violation, illness, or other unforeseen
circumstance preventing the appearance of the appellant, his or her attorney or representative, City
staff, or a material witness. Mere inconvenience, avoidable scheduling conflicts, or difficulty in
appearing shall not constitute "good cause." Since this is an administrative matter for which an
attorney is not required, a continuance will not be granted based solely on an attorney's scheduling
conflict with another client's matter; in such cases, the attorney should either withdraw from the
case, or arrange for another attorney or paralegal to attend the scheduled appeal hearing and
represent the appellant.

C. A request for a continuance that is contested by the opposing party shall be made in writing
with supporting documentation attached and shall be filed with the hearing examiner and served on
the opposing party, no later than five (5) business days prior to the hearing, unless the hearing
examiner grants an exception to these Rules based on good cause.

D. The hearing examiner shall weigh the request, the opposition (if any), the number and
circumstances of previous continuances (if any), and any other relevant information, to determine
whether good cause is shown.

E. Requests to continue are not automatically granted. The request to continue is within the sole
discretion of the hearing examiner. Should the hearing examiner deny the request to continue, the
parties are to appear for the scheduled hearing and be ready to proceed. A failure to appear will be
addressed in accordance with Rule 7.03, below.

F. If a continuance is granted, the hearing examiner shall provide notice of the date, time, and
place of the continued hearing to each party.

SECTION 4: APPEAL HEARING

4.01 GENERALLY
A. At the time set for the administrative penalty appeal hearing, the hearing examiner shall
proceed to hear testimony from the City representative, the appellant, and any other competent
persons with respect to the facts that support or undermine the imposition of an administrative
penalty. (SCC § 1.28.010.D.4.e.i.)

6
B. The hearing examiner shall consider evidence presented by all witnesses, the seriousness of
the violation, the responsible party's efforts to prevent or correct the violation, the injury or damage,
if any, suffered by any member of the public, any instances in which the responsible party has been in
violation of the same or similar code provisions in the previous three years, and the amount of city
staff time which was expended investigating and addressing the violation. (SCC § 1.28.010.D.4.f.i.)

C. The hearing examiner has no power to declare an ordinance unenforceable or

unconstitutional. No evidence or argument addressing issues beyond the h ,aring examiner's

evidence or argument may be preserved for the record by submitting it in writing no later than five
(5) business days prior to the heoring. The heoring examiner shall not consider such submissions in
reoching his or her decision.

4.02 BURDEN AND STANDARD OF PROOF

A. The City shall have the burden of proof in establishing, by a preponderance of the evidence,
that the appellant has committed or caused the alleged violation(s) of the Sacramento City Code.

B. The appellant shall have the burden of proof in establishing, by a preponderance of the
evidence, any affirmative defense(s) offered in response to the alleged violation.

C. "Preponderance of the evidence" means that, based on the evidence presented in the
hearing, what he or she is required to prove is more likely to be true than not true. (CACI No. 200.)

D. A hearing examiner may not uphold an administrative penalty against a "responsible

party," as defined by section 2.01.A., for a violation of chapter 8.132.030 of the Sacramento City
Code unless prior to issuing the administrative penalty, the City mailed a letter, via regular mail
and tracked delivery, to the property owner, at the address identified in the records of the
Sacramento County Recorder, advising of the City's suspicion of a violation and allowing the
property owner 30 days to correct any violations and notify the City of the correction.

4.03 HEARING FORMAT

A. Administrative penalty appeal hearings, while informal proceedings, shall have a structured
format to promote due process, fairness, efficiency, and the orderly presentation of evidence and
argument.

B. The order of presentation at the hearing shall be the following:

1. Oath or affirmation;
2. Hearing examiner's introductory statement;
3. Parties' opening statements (optional);
4. City's presentation of evidence;
5. Appellant's presentation of evidence; and

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 6. Parties' closing arguments (optional).

C. Notwithstanding subdivision B above, the hearing examiner may modify the order of
presentation to promote the clear and fair presentation of relevant evidence.

D. Once the hearing is concluded, no new evidence may be provided to the hearing examiner
unless the hearing examiner agrees to leave the record open for the submission of additional
evidence and the opportunity for each party to support or rebut the new evidence. If the hearing
examiner leaves the record open, the case is deemed submitted after the last written argument is
received by the hearing examiner.

E. The hearing examiner may deny the appeal and uphold imposition of the administrative
penalty where, without good cause, the appellant or its attorney or representative fails to appear.
The hearing examiner will consider the information in the notice if appeal and all other evidence
timely submitted in rendering his or her decision.

4.04 TESTIMONY AND EVIDENCE

A. The hearing need not be conducted according to technical rules relating to evidence and
witnesses, except as hereinafter provided. (SCC § 1.28.010.D.4.e.v., Cal. Gov. Code § 1.151.3.)

B. Each party shall have these rights:

1. To call and examine witnesses;
2. To cross-examine opposing witnesses on any matter relevant to the issues even
though that matter was not covered in the direct examination;
3. To impeach any witness regardless of which party first called him or her to testify; and
4. To rebut the evidence.

C. If appellant does not testify in his or her own behalf, he or she may be called and examined as
if under cross-examination. (Cal. Gov. Code § 11513(b).)

D. Oral evidence shall be taken only on oath or affirmation administered by the hearing secretary
on behalf of the hearing examiner. (Cal. Gov. Code § 11513(a), SCC § 1.28.010.D.4.e.iv.)

E. Any relevant evidence shall be admitted if it is the sort of evidence on which responsible
persons are accustomed to relying on in the conduct of serious affairs, regardless of the existence of
any common law or statutory rule which might make improper the admission of the evidence over
objection in civil actions. (Cal. Gov. Code § 11513(c).)

F. Hearsay evidence may be used for the purpose of supplementing or explaining any other
evidence, but over timely objection shall not be sufficient in itself to support a finding unless it would
be admissible over objection in civil actions. An objection is timely if made before conclusion of the
hearing for that matter. (Cal. Gov. Code § 11513(d).)

G. The rules of privilege apply to the extent they are otherwise required by statute to be
recognized at the hearing. (Cal. Gov. Code § 11513(e).)
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H. The hearing examiner has discretion to exclude evidence if its probative value is substantially
outweighed by the probability that its admission will necessitate undue consumption of time. (Cal.
Gov. Code § 11513(f).)

4.05 INTERPRETERS
A. If a party does not proficiently speak or understand the English language, he or she may
provide an interpreter, at that party's own cost, to translate for the party. (SCC §
1.28.010.D.4.e.vi.(B).) Failure to make arrangements to have an interpreter present is not good cause
for a continuance.

B. An interpreter shall not have had any personal involvement in the issues of the case prior to
the hearing. (SCC § 1.28.010.D.4.e.vi.(B).) In the alternative, the hearing examiner has the discretion
to allow an interpreter who takes an oath that, to the best of the interpreter's ability, a true
interpretation will be made that is understandable for the person utilizing the interpreter, and that
the interpreter will repeat statements verbatim in English to the hearing examiner and the other
parties.

4.06 OFFICIAL NOTICE

The hearing examiner may take official notice, either before or after submission of the case for
decision, of any fact which may be judicially noticed by the courts of this state or which may appear in
any of the official records of the city or county, or any of their departments. (SCC §
1.28.010.D.4.e.vii.)

4.07 INSPECTION OF PREMISES

A. In the case of a violation related to real property in the city, the hearing examiner may inspect
the property prior to, during, or after the hearing, provided that:
1. Notice of the inspection shall be given to the parties before the inspection is made;
2. The parties' consent and are given an opportunity to be present during the inspection;
and
3. Upon completion of the inspection, the hearing examiner shall state for the record
during the hearing or file a written statement after the hearing for inclusion in the hearing record, the
material facts observed, and the conclusion drawn therefrom. (SCC § 1.28.101.D.4.iii.)

B. Each party then shall have a right to rebut or explain the matters so stated by the hearing
examiner either for the record during the hearing or by filing a written statement after the hearing
for inclusion in the hearing record. (SCC § 1.28.101.D.4.iii.)

C. Notice to the parties and the owner's consent to inspect the property are not required if the
property can be inspected from areas to which the general public has access or with permission of
other persons authorized to provide access to the property and/or buildings located on the property.
(SCC § 1.28.101.D.4.iii.)

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4.08 RECORDING
A. All proceedings before the hearing examiner are electronically recorded. The recordings of
hearings are part of the official administrative record. Either party may provide a certified shorthand
reporter to maintain a record of the proceedings at the requesting party's own expense. (SCC
§1.28.010.D.4.e.ii.) However, the proceedings shall not be delayed or impeded to accommodate a
shorthand reporter.

B. Except as provided in subsection A, all other photographic and recording equipment is

prohibited at hearings without the prior approval of the hearing examiner. The hearing examiner may
deny or condition use of such equipment as he or she deems necessary to avoid disruption to the
proceedings or prejudice to any party.

4.09 NOTICE OF SETTLEMENT

A. The hearing examiner encourages settlement whenever possible. As evidence of settlement, a
signed settlement agreement must be submitted to the hearing examiner, in care of the Office of
Cannabis Management, no later than one business day prior to the scheduled hearing.

SECTION 5: HEARING EXAMINER'S DECISION

5.01 ISSUANCE OF DECISION

The written decision of the hearing examiner shall be issued within 30 days of the hearing, unless
there are circumstances beyond the control of the hearing examiner that delays issuance. (SCC
§ 1.28.010.D.4.f.ii.) Upon issuance of the decision, the hearing examiner shall serve a copy on the
appellant by first class mail to the address provided by appellant in the written notice of appeal. The
hearing examiner's decision shall be deemed served two days after the date it is mailed to the
address provided by the appellant. (SCC § 1.28.010.D.4.f.iii.)

5.02 AUTHOR OF DECISION

The record of decision shall be written by the hearing examiner based upon their own conclusions
of fact and evidence. Only the hearing examiner's counsel and their support staff shall have access
to the record of decision or any draft thereof prior to its service on all parties.

5.032 CONTENTS OF THE DECISION

A. The hearing examiner may affirm the administrative penalty imposed by the City, reduce the
penalty to a lower amount within the charged level of violation, reduce the level of violation and
reduce the penalty to an amount within the new level of violation, or find that imposition of the
penalty is not warranted or is not in the interest of justice. The hearing examiner shall have the
discretion to impose a lower, but not a higher, level of violation and/or penalty amount. (SCC §
1.28.010.D.4.f.i.)

B. The hearing examiner's decision shall contain the following:

1. A summary of the relevant evidence presented;

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 2. Rulings on any procedural matters, including any prior rulings relevant to the case,
such as contested continuances, and objections to the evidence submitted either
before or at the hearing;
3. Findings of fact, based upon all the evidence submitted and presented at hearing; and
4. A determination of any legal issues presented, based upon the findings of fact and
applicable law.

C. lf the hearing examiner upholds imposition of an administrative penalty, the decision shall
require the administrative penalty to be paid within 25 calendar days of the date of service of the
decision. The decision shall inform the appellant that if the administrative penalty is not paid within
the time specified, it may be made a personal obligation of the appellant; and if applicable may also
be made a lien against the property on which the violation occurred and may be made a special
assessment collected at the same time and in the same manner as ordinary secured property taxes
are collected. (SCC § 1.28.010.D.4.f.ii.)

D. The hearing examiner's decision shall also inform the appellant that any judicial review of the
hearing examiner's decision shall be pursuant to sections 1094.5 and 1094.6 of the California Code of
Civil Procedure and section 53069.4 of the California Government Code. (SCC § 1.28.010.D.4.f.ii.)

SECTION 6: JUDICIAL REVIEW

6.01 REVIEW OF THE HEARING EXAMINER'S DECISION

Any judicial action taken to set aside, annul or vacate the decision of the hearing examiner shall be
filed in the manner and within the time provided in sections 1094.5 and 1094.6 of the California Code
of Civil Procedure (no later than the 90th day following the date of the decision) and section 53069.4
of California Government Code (no later than the 20th day following the date of service the decision).
(SCC § 1.28.010.D.4.f.iv.)

6.02 CERTIFIED TRANSCRIPT OF PROCEEDINGS

A. Anyone desiring a certified transcript of a hearing shall submit a written request to the City
Clerk and submit payment to the City Clerk for the transcript requested.

B. Anyone desiring a full certified recording of the hearing shall submit a written request to the
City Clerk and submit payment to the City Clerk for the record requested.

6.03 CERTIFIED RECORD

A. The certified record of a hearing shall include, but is not limited to, all of the following:

(1) Department's decision to impose and administrative penalty or the action

being appealed;
(2) Notice of appeal statement;
(3) All evidence and testimony received or considered that comprise the
administrative record, including prehearing submissions and documents
produced under a subpoena duces tecum order;
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 (4) Motions, writings, procedural rulings, and other non-evidentiary materials
that are part of the hearing examiner's file;
(5) Statement of matters officially noticed, if any;
(6) Findings, conclusions, and record of decision of the hearing examiner; and
(7) Transcript of the hearing.

B. Notwithstanding subdivision A, anything considered by the hearing examiner in reaching a

record of decision shall also be included as part of the certified record.

C. Clerical mistakes in any part of the record, and errors arising from an oversight or omission,
may be corrected by order of the hearing examiner by his or her own initiative or in response to the
motion of a party.

6.04 TRANSMITTAL OF RECORDS

The City Attorney's Office shall transmit the transcript or record of the hearing upon the request
of a Court with jurisdiction to review the hearing examiner's decision.

SECTION 7: REMOTE HEARINGS

7.01 BACKGROUND INFORMATION

The purpose of this section 7 is to enable the use of technology to support the efficiency and
effectiveness of remote hearings. All prior sections of the Rules remain in effect during remote
proceedings.

7.02 REMOTE HEARINGS PROCESS

A. In order to participate in a remote hearing, an appellant must provide a valid email address,
agree they have the required video and audio or audio capabilities, and consent to the remote hearing
process.

B. Administrative hearings will be held via an online platform that allows all participants to beseen
and heard, all documents to be shared on the screen for reference, and the hearing video and audio to
be recorded and saved.

C. At the hearing examiner's direction, the hearing secretary will manage the technological aspects
of remote hearing, including the operation of the cameras and microphones of all parties.
D. All hearing participants are cautioned to not speak over each other and to limit background
noise (to the extent possible) in order to maintain a clear hearing record and orderly proceedings. At
any time, the hearing secretary may mute a participant's microphone and require requests to speak
and objections to be noticed by the "raise your hand" function on the online platform to insure a
clear hearing record.

7.03 HEARING ACCESS AND SCHEDULE

A. On behalf of the hearing examiner, the hearing secretary will send out the hearing notice
followed by a meeting request that will contain the link required to join the hearing. A call-in number
will be provided in the hearing notice for those without video access. All participants, including any
witnesses, will be asked to turn on their video function to participate in the hearing. Participants

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without video access will need to inform the hearing secretary at least 3 business days in advance of
the scheduled hearing.

B. Participants will not be allowed into the remote hearing prior to the scheduled time of their
case. If the participants are unable to join the meeting due to technical difficulties, they must
immediately notify the hearing secretary via the contact information provided in the hearing notice.

C. Participants are required to sign into the meeting with their true and correct name for
accuracy of the record. All parties must have their camera function turned on for the duration of the
hearing. Recording of any kind is strictly prohibited unless permission is granted by the hearing
examiner.

D. If the appellant has not joined the hearing within 15 minutes, with or without notification to
the hearing secretary, after the scheduled start time for their case, the hearing examiner may
continue the case to a later date or proceed to hear the matter and will consider the written appeal
petition and any documents submitted prior to the hearing before rendering a decision.

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