TO: Honorable Mayor and Members of the City Council
FROM: Manuel Carrillo Jr., Director of Recreation and
Community Services
DATE: September 6, 2023
SUBJECT: Approve Facility Use Agreement with the American Red Cross, Los Angeles Region for Disaster Relief Activities
SUMMARY
The purpose of this staff report is for City Council to consider the approval of an agreement with the American Red Cross, Los Angeles Region for Disaster Relief Activities. The American Red Cross disaster relief activities are made possible through grants and donations. Additionally, the disaster services of the American Red Cross are also supported by facility owners who permit them to use their buildings as shelters and other service delivery sites for disaster victims. The aim of this agreement is to provide disaster services for Baldwin Park residents and the surrounding community should the need occur.
RECOMMENDATION
It is recommended that the City Council:
1) Approve the Facility Use Agreement with American Red Cross, Los Angeles Region, to permit shelters and other service delivery sites for disaster victims to be set up, at City of Baldwin Park Facilities; and
2) Authorize the Chief Executive Officer (CEO) to execute the Facility Use Agreement; and 3) Authorize the Director of Recreation and Community Services to execute any other associated documents needed for the agreement.
FISCAL IMPACT
There is no fiscal impact to the General Fund associated with the recommended actions. If the disaster is a Federally declared disaster and owner is a municipal or state government entity, then the City will work with appropriated emergency management to seek cost reimbursement for the time and supplies for these activities through the Federal Emergency Management Agency’s program for administering Public Assistance Category B under the Robert T. Stafford Act. There is no fee charged for these disaster services.
BACKGROUND
In the event of a disaster, all City employees become disaster service workers. The City’s Emergency Facility Organization in partnership with local and regional resources, will utilize the Esther Snyder Community Center, Julia McNeill Senior Center, Arts and Recreation Center, and Teri G. Muse Family Service Center for disaster services. Other City facilities may also be considered if the need arises.
The American Red Cross, Los Angeles Region, a non -profit corporation provides services to individuals, families, and communities when disasters strike. American Red Cross can operate public facilities to provided services during a disaster when requested.
ALTERNATIVES
The City Council may elect not to approve the Agreement.
LEGAL REVIEW
This report has been reviewed and approved by the City Attorney as to legal form and content.
ATTACHMENTS
1) Facility Use Agreement T-2
+ American
_,,, Red Cross
Facility Use Agreement T - 2
Ovvt-JER's Manager or his/her designee in writing no later than five (5) days after the Ovvt-JER's decision has been communicated to the aggrieved party.
i. If any provision of this AGREEMENT is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.
15. Tenn: The tenn of this agreement begins on the date of the last signature below and ends 30 days after written notice by either party.
OWNER
City of Baldwin Park
Owner (Legal Name)
By (Signature)
Enrique C. Zaldivar
Name (Printed)
Chief Executive Officer
Title
Date
City of Baldwin Park FUA Final (8.11.23)
REDCROSS
The American National Red Cross
Gerald A. Thomas
Name (Printed)
Los Angeles Region Chief Operations Officer
Title
Date t
Agreement Page 5
APPROVED AS TO FORM:
____________________________
Marco A. Martinez
City Attorney
STAFF REPORT
ITEM NO. _____6_____
TO: Honorable Mayor and Members of the City Council
FROM: Sam Gutierrez, Director of Public Works
PREPARED BY: Lena Abdullah, Management Analyst
DATE: September 6, 2023
SUBJECT: Approve Amendment No. 4 to Funding Agreement No.
F9620 with the Los Angeles County Metropolitan
Transportation Authority (LACMTA) for Grant Funding
for the First/Last Mile Connections Project for the
Baldwin Park Transit Center
SUMMARY
This report is requesting City Council approval and authorization to execute Amendment No. 4 to Funding Agreement (FA) No. 920000000F9620 (F9620) with the Los Angeles County Metropolitan Transportation Authority (LACMTA) for the First/Last Mile Connections Project for the Baldwin Park Transit Center. Amendment No. 4 will extend the lapsing date of the funds to June 30, 2024, and update the project schedule.
RECOMMENDATION
It is recommended that the City Council approve and authorize the Mayor to execute Amendment No. 4 to the FA with the LACMTA.
FISCAL IMPACT
This grant is front -funded by the General Fund Reserve on a reimbursement basis. To date, the city has expended a total amount of $993,213.99 of which $ 792,584.76 have been reimbursed. A total amount of $ 316,017.01 remains to be expended. Approval of this Amendment will ensure the City remains eligible to request reimbursements for this grant until June 30, 2024.
BACKGROUND
On February 21, 2018, the City Council approved Resolution No 2018-227 which authorized the Mayor to accept grant funds from LACMTA 2015 Call for Projects and to execute Funding Agreement (FA) No. 920000000F9620. The resolution also appropriated the $656,256 grant funds to the First/Last Mile connections for the Baldwin Park Transi t Center Project for first and last mile improvements for safe and efficient non-motorized connections to and from the City’s Transit Center as well as an additional $165,196 from the Surface Transportation Program Fund for the required local match (refer to Attachment No. 1).
On January 12, 2020, Amendment No. 1 to the FA was executed by the City and LACMTA, amending the following items: (1) revised LACMTA programmed funding sources, (2) extended grant funds lapse date to June 30, 2022, (3) updated the project’s scope of work, (4) replaced the form used for quarterly progress and expense reports with the latest version , (5) updated the project funding incorporating Measure M MSP funds, (6) replaced the Federal Transportation Improvement Program (FTIP) with a newer version, and (7) updated LACTMA bond requirements (refer to Attachment No. 2).
On August 17, 2021, Amendment No. 2 was executed by the City and LACMTA. The items amended were as follows: (1) extended the grant funds lapse date to February 28, 2023, (2) incorporated change
in communications requirements, (3) changed of project manager, and (4) changed the scope of work and revised the project schedule (refer to Attachment No. 3).
On July 15, 2022, Amendment No. 3 was executed by the City and LACMTA. This amendment made the following changes: (1) extend ed the grant funds lapse date to J une 30, 2023, and (2) revised the scope of work (refer to Attachment No. 4).
DISCUSSION
On September 2, 2020, the Downtown Beautification Project was approved and awarded by the City Council. The project combined a series of Capital Improvement Projects (CIP) aimed at enhancing various aspects of the city's downtown area. The project's funding was drawn from a variety of sources, including SB1 funds that were allocated for city entrance signs, Measure R and LLMD funds dedicated to decorative streetlighting, and LACMTA First/Last Mile funds for pedestrian safety improvements that aligned with the project's objectives as outlined in the Funding Agreement (FA).
Subsequently, on September 21, 2022, the City Council officially accepted the work constructed under the Downtown Beautification Project and authorized the filing of a Notice of Completion. However, the project didn't encompass specific grant requirements related to the installation of quad gates at the Pacific Avenue rail crossing. The quad gates are necessary to prepare the crossing for the future implementation of a Quiet Zone, however due largely to extensive delays with Metrolink reviews, they were omitted from the Downtown Beautification Project. To meet these requirements and ensure the maximum use of the grant funds, the unexpended amount, coupled with other funding sources, were reappropriated to City Project No. CIP20 -35 – Pacific Avenue Rail Safety Crossing Improvements Project. The project is anticipated to commence construction in the first quarter of 2024.
To secure the availability of the necessary funds, City Staff engaged in coordination with LACMTA to propose an amendment to the FA that would extend the grant lapse date and adjust the project timeline.
In response, LACMTA presented Amendment No. 4 (refer to Attachment No. 5) outlining the revised grant expiration date, which has now been set to June 30, 2024. Following careful evaluation, the City Staff has reviewed and subsequently recommends the approval of the proposed amendment.
ALTERNATIVES
1. Not approve the execution of Amendment No. 4 and forfeit the City’s ability to seek additional reimbursements from this grant.
2. Provide Staff with alternative direction
CEQA REVIEW
The action being considered by the city council is exempt from the California Environmental Quality Act (CEQA) because it is not a “project” under section 15378(b)(5) of CEQA guidelines. The action involves an organizational or administrative activity of government that will not result in a direct or indirect physical change in the environment.
LEGAL REVIEW
This report has been reviewed and approved by the City Attorney as to legal form and content.
ATTACHMENTS
1. Executed Funding Agreement F9620 with LACMTA
2. Amendment No. 1 to Funding Agreement F9620
3. Amendment No. 2 to Funding Agreement F9620
4. Amendment No. 3 to Funding Agreement F9620
5. Proposed Amendment No. 4 to Funding Agreement F9620
FTIP# LAF9620
CFP# F9620 / MM4703.02
AMENDMENT NO. 1
FA No. 920000000F9620
Rev: 01.14.2021 FA Local Amendment
1 AMENDMENT No. 1 TO FUNDING AGREEMENT
BETWEEN CITY OF BALDWIN PARK AND
THE LOS ANGELES COUNTY METROPOLITAN TRANSPORTATION AUTHORITY
This Amendment No. 1 to Funding Agreement (this "Amendment"), is dated as of January 12, 2020, by and between City of Baldwin Park ("GRANTEE"), and the Los Angeles County Metropolitan Transportation Authority ("LACMTA").
RECITALS:
A. GRANTEE and LACMTA entered into that certain Funding Agreement No. 920000000F9620, dated October 3, 2017, the "Existing FA"), which Existing FA provides for the First/Last Mile Connections for the Baldwin Park Transit Center (the “Project”); and
B. WHEREAS, LACMTA adopted Ordinance #16-01, the Los Angeles County Traffic Improvement Plan, on June 23, 2016 (the “Ordinance”), which Ordinance was approved by the voters of Los Angeles County on November 8, 2016 as “Measure M” and became effective on July 1, 2017; and
C. WHEREAS, the Measure M funding set forth herein is intended to fund Design, Plans, Specifications and Estimates (PS&E), and Construction of the Project; and
D. WHEREAS, the LACMTA Board, at its May 23, 2019 meeting, programmed $652,975 in Measure M funds to GRANTEE for the Project, subject to the terms and conditions contained in this FA; and
E. WHEREAS, the Call for Projects Funds for the Project are currently programmed as follows:
$15,645 in Proposition C 25% funds in FY 2017-18 and $640,611 in FY 2018-19.
$652,975 in Measure M funds in FY 2019-20.
The total designated funds for the Project is $1,309,231
F. GRANTEE and LACMTA desire to amend the Existing FA as provided herein.
FTIP# LAF9620
CFP# F9620 / MM4703.02
AMENDMENT NO. 1
FA No. 920000000F9620
Rev: 01.14.2021 FA Local Amendment
2 AGREEMENT:
NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereby agree as follows:
1. Part I, Paragraph 2 of the existing FA is hereby amended by deleting it in its entirety and replacing it with the following;
“2. Grant Funds:
2.1 Programmed Funds for this Project consists of the following: Proposition C 25% funds and Measure M funds. The Proposition C 25% and the Measure M funds together are referred to as “the Funds”.
2.2. To the extent the Proposition C 25% Funds are available, LACMTA shall make to GRANTEE a one-time grant of Proposition C 25% funds in the amount of $656,256 for the Project. LACMTA Board of Directors’ action of September 24, 2015 granted $656,256 to GRANTEE for the Project. The Proposition C 25% funds are programmed over two years, Fiscal Years (FY) FY 2017-18 and FY 2018-19.
2.3. To the extent the Measure M Funds are available; LACMTA shall make to GRANTEE a grant of the Measure M funds in the amount of $652,975 for the Project.
LACMTA Board of Directors’ action of May 23, 2019 granted the Measure M Funds for the Project. The Funds are programmed over one year for Fiscal Year (FY) 2019-20”
2. Part II, Paragraph 8.1(v) is hereby added to the Existing FA with the following: “expending the Measure M Funds granted under this Agreement for allowable costs within 36 months from July 1 of the Fiscal Year in which the Funds are programmed, unless otherwise stated in the Agreement. Measure M funds programmed for FY 2019-20 are subject to lapse by June 30, 2022.”
3. Part II, Paragraph 8.6 is hereby added to Existing FA as follows:
“8.6 In the event that the timely use of the Measure M funds is not demonstrated as described in Part II, Section 8.1(v) of this FA, the Project will be reevaluated by LACMTA as part of its Annual Update process and the Funds may be reprogrammed to another project by the LACMTA Board of Directors in accordance with the Ordinance, the Guidelines and the Multi-Year Subregional Programs Administrative Procedures. In the event that all the Measure M funds are reprogrammed, this FA shall consider a written amendment.”
4. Attachment A – Project Funding, attached to the Existing FA is hereby amended by deleting it in its entirety and replacing it with Attachment A-1.
5. Attachment B – Scope of Work, attached to the Existing FA is hereby amended by deleting it in its entirety and replacing it with Attachment B-1.
FTIP# LAF9620
CFP# F9620 / MM4703.02
AMENDMENT NO. 1
FA No. 920000000F9620
Rev: 01.14.2021 FA Local Amendment
3 6. Attachment C-1 – Quarterly Progress/Expense Report, attached to the Existing FA is hereby amended by deleting it in its entirety and replacing it with Attachment C-1A.
7. Attachment D – Federal Transportation Improvement Program (FTIP) Sheet, attached to the Existing FA is hereby amended by deleting it in its entirety and replacing it with Attachment D-1.
8. Part I of the Existing FA is hereby amended by adding Paragraph 13, which reads as follows: “LACMTA anticipates it may need to avail itself of lower cost bonds or other debt, the interest on which is tax exempt for federal tax purposes (collectively, the “Bonds") to provide at least a portion of its funding commitments under this Agreement to GRANTEE. GRANTEE shall ensure that the expenditure of the Funds disbursed to GRANTEE does not jeopardize the tax-exemption of the interest, as specified in the Bond Requirements attached as Attachment G to this Agreement. GRANTEE agrees to provide LACMTA with progress reports, expenditure documentation, and any other documentation as reasonably requested by LACMTA and necessary for LACMTA to fulfill its responsibilities as the grantee or administrator or bond issuer of the Funds. With regard to LACMTA debt financing to provide any portion of the Funds, GRANTEE shall take all reasonable actions as may be requested of it by LACMTA's Project Manager for the Project, to assist LACMTA in demonstrating and maintaining over time, compliance with the relevant sections of the Federal Tax Code to maintain such Bonds’ tax status.”
9. The Existing FA is hereby amended by adding Attachment G, attached hereto.
10. Except as expressly amended hereby, the Existing FA remains in full force and effect as originally executed. All rights and obligations of the parties under the Existing FA that are not expressly amended by this Amendment shall remain unchanged.
(LACMTA Programmed Funding and Sponsors Match Only)
TOTAL % OF
PROGRAMMED FUNDSFY 2015-16FY 2016-17FY 2017-18FY 2018-19FY 2019-20FY 2020-21BUDGET BUDGET LACMTA PROGRAMMED FUNDING:
SELECT:
Proposition C 25% 15,645$ 640,611$ 656,256$ 40.0% Measure M MSP 652,975$ 652,975$ 39.8% LACMTA SUBTOTAL 1,309,231$ 79.8%
GRANTEE/SPONSOR MATCH:
Grantee Funding Commitment (specify type)
(Write specific type of funding match)
SELECT:
City General Fund
Prop A Local Return
Prop C Local Return 3,936$ 161,257$ 165,193$ 10.1% Measure M Local Return 166,000$ 166,000$ 10.1% Other
331,193$ 20.2%
TOTAL PROGRAMMED FUNDING -$ -$ 19,581$ 801,868$ 818,975$ -$ 1,640,424$ 100%
GRANTEE/ PROJECT SPONSOR: City of Baldwin Park
PROJECT TITLE: First/Last Mile Connections for the Baldwin Park Transit Center ATTACHMENT A-1 PROJECT FUNDING
FTIP# LAF9620 CFP# F9620 / MM4703.02
Amendment No. 1
FA# 920000000F9620
FTIP# LAF9620 CFP# F9620 / MM4703.02 AMENDMENT NO. 1 FA# 920000000F9620 Rev: 11.1.14 1
ATTACHMENT B-1 SCOPE OF WORK PROJECT TITLE: First/Last Mile Connections for Baldwin Park Transit Center PROJECT LOCATION/LIMITS: One mile from the Baldwin Park Transit Center/ Parking Structure and the Metrolink Cruz Baca Transcenter in the City’s Downtown District (See Project Location Map) PROJECT DESCRIPTION: This project intends to improve pedestrian infrastructure by providing safe and efficient non-motorized connections to and from public transit facilities and destinations within the Downtown Baldwin Park district. This project is located in the City of Baldwin Park around the city’s downtown, Baldwin Park Transit Center and Metrolink Station. It will fund pedestrian enhancements by adding a walkway from the Transit Center to the city’s downtown. The project includes adding pedestrian lighting, wayfinding signage, trash receptacles, landscaping, benches, bike racks, sidewalk extensions, and a pedestrian crossing gate. Funds will support design, construction management, and construction costs. These pedestrian infrastructure changes will take place in and around the Baldwin Park Transit Center and Metrolink Station. Multimodal connections will be provided to key transit locations along Ramona Blvd., Pacific Ave., and the Metrolink right-of-way. The “Focus Area” concentrates on connectivity improvements with the objective of downtown multimodal support. The project area is seen as a key central point connecting destinations through both motorized and non-motorized travel and attractive, safe and efficient conditions are needed for non-motorized travelers to be able to maneuver efficiently and effortlessly. Proposed improvements include the following: • Safe pedestrian railroad crossings at Ramona Blvd. and Pacific Ave. • Safe and highly visible mid-block crossing on Pacific Ave. • Pedestrian pathways from the Transit Center/Metrolink Station/Civic Center to local destinations and non-motorized transit modes along Ramona Blvd., including street amenities.
FTIP# LAF9620 CFP# F9620 / MM4703.02 AMENDMENT NO. 1 FA# 920000000F9620 Rev: 11.1.14 2
PROJECT FUNDING: Category Call for Projects PC25 Local Agency Measure M MSP TOTAL Planning, Design, Engineering $ 52,018 $ 13,094 $ 0 $ 65,112 Project Management $ 45,008 $ 11,329 $ 0 $ 56,337 Construction $ 559,230 $ 306,770 $ 652,975 $ 1,518,975 TOTAL $ 656,256 $ 331,193 $ 652,975 $ 1,640,424 ESTIMATED PROJECT COSTS: Item No. Item Description Quantity Unit Unit Cost Total 1.0 Railroad Ped Safety Crossings - @Ramona Blvd and Pacific Ave. 1.1 Pedestrian Crossing Gates 4 EA $75,000 $300,000 1.2 Thermoplastic Traffic Striping 1 LS $6,000 $6,000 1.3 Wayfinding and Directional Signage 4 EA $400 $1,600 1.4 Pedestrian-Level Lighting 4 EA $1,500 $6,000 Subtotal Railroad Pedestrian Safety Crossing Items: $313,600 2.0 Transit Center Pedestrian Linkage to Ramona Blvd. 2.1 Sidewalk installation (150 x 5 ft.) 750 SF $10 $7,500 2.2 Pedestrian Striping 420 LF $4 $1,680 2.3 Pedestrian-Level Lighting 4 EA $1,500 $6,000 2.4 Wayfinding Signage 3 EA $400 $1,200 Subtotal Business Center Pedestrian Linkage to Ramona Boulevard Items: $16,380 3.0 Downtown Transit Center Pedestrian Linkage – Pacific Ave. 3.1 Sidewalk Installation (700 x 10 ft.) 7000 EA $10 $70,000 3.2 Pedestrian Striping 900 EA $4 $3,600 3.3 Wayfinding Signage 6 LF $300 $1,800 3.4 Pedestrian-Level Lighting 12 EA $1,500 $18,000 3.5 Enhanced HAWK Midblock Crossings 1 EA $90,000 $90,000 Subtotal Downtown Transit Center Pedestrian Linkage Items: $183,400 4.0 Pedestrian/Bicycle – Complete Streets Elements 4.1 Bike Racks 4 LS $10,000 $40,000 4.2 Pedestrian-Level Lighting 5 LS $12,000 $60,000 4.3 Trash Receptacles 8 EA $1,000 $8,000 4.4 Drought Tolerant Landscaping 1 EA $12,000 $12,000 4.5 Benches 6 LS $2,500 $15,000 Subtotal Pedestrian/Bicycle – Complete Streets Elements Items: $135,000 FTIP# LAF9620 CFP# F9620 / MM4703.02 AMENDMENT NO. 1 FA# 920000000F9620 Rev: 11.1.14 3
Item No. Item Description Quantity Unit Unit Cost Total 5.0 Before and After Pedestrian and Bike Counts 1 LS $12,000 $12,000 6.0 Prelim Engineering & Environmental Docs (10%) 1 LS $64,838 $64,838 7.0 Construction Engineering & Management (11%) 1 LS $71,322 $71,322 8.0 Program and Brochure Information 1 LS $9,176 $9,176 Subtotal Planning/Design/Items: $157,335 Contingency 10% $15,733 Total Planning, Design, and Marketing Costs $173,069 9.0 Measure M MSP Supplemental Construction 9.1 Traffic Control 1 LS $78,195 $78,195 9.2 Construction Surveying and Staking 1 LS $5,000 $5,000 9.3 Color Concrete ADA Curb Ramp 27 EA $6,500 $175,500 9.4 Color Decorative Stamped Crosswalks 10,850 SF $25 $271,250 9.5 Traffic signing, striping, markings & curb painting 1 LS $70,625 $70,625 9.6 Color Concrete Sidewalk 1,405 SF $17 $23,885 9.7 Decorative Wayfinding Structure 6 EA $18,000 $108,000 9.8 Architectural Paving 1,890 SF $34 $64,260 9.9 Decorative Sidewalk Features 1,060 SF $21 $22,260 Subtotal Measure M MSP Supplemental Construction: $818,975 • Subtotal Railroad Pedestrian Safety Crossings - @Ramona Blvd. and Pacific Ave. $313,600 • Subtotal Transit Center Pedestrian Linkage to Ramona Boulevard $16,380 • Subtotal Downtown Transit Center Pedestrian Linkage – Pacific Ave. $183,400 • Subtotal Pedestrian/Bicycle – Complete Streets Elements $135,000 • Subtotal Measure M MSP Supplemental Construction $818,975 Total Construction Cost $1,467,355 TOTAL PROJECT COST (ESTIMATED) $1,640,424 PROJECT MILESTONES: Milestones Begin End Duration (months) Execute FA 8/21/2017 12/30/2017 4 mos Contractor or Construction Documents (final design, specifications, cost estimate) 7/1/2019 6/15/2020 11 mos Advertise Bid & Award Construction 6/17/2020 9/2/2020 2 mos Construction 3/1/2021 9/1/2021 6 mos Report of Completion / Project Close Out 9/30/2021 12/28/2021 2 mos FTIP# LAF9620 CFP# F9620 / MM4703.02 AMENDMENT NO. 1 FA# 920000000F9620 Rev: 11.1.14 4
PROJECT SCHEDULE: Milestones Begin End Duration (months) Preliminary Design / Outreach 10/5/2017 12/8/2017 3 mos Execute FA 8/21/2017 12/30/2017 4 mos Final Design 7/1/2019 3/15/2020 10 mos Construction Documents / Complete Bid Package (final design, specifications, cost estimate) 3/15/2020 6/15/2020 3 mos Advertise Bid & Award Construction 6/17/2020 9/2/2020 2 mos Issue NTP 3/1/2021 3/1/2021 1 day Construction 3/1/2021 9/1/2021 6 mos Report of Completion / Project Closeout 9/30/2021 12/28/2021 3 mos FTIP# LAF9620 CFP# F9620 / MM# 4703.02 AMENDMENT NO. 1 FA# 920000000F9620 PROJECT LOCATION MAP:
Rev: 06.26.19 1 FA LTF Attachment C-1 Quarterly Report Invoice #
QUARTERLY PROGRESS / EXPENSE REPORTInvoice Date
FA# 920000000F9620
Quarterly Report #
GRANTEES ARE REQUESTED TO EMAIL THIS REPORT TO
[email protected]
or by mail to Los Angeles County Metropolitan Transportation Authority Accounts Payable, P. O. Box 512296, Los Angeles, CA 90051-0296 after the close of each quarter, but no later than November 30, February 28, May 31 and August 31. Please note that letters or other forms of documentation may not be substituted for this form. Refer to the Reporting and Expenditure Guidelines (Attachment C) for further information.
Balance Remaining
% of Project Budget
Expended to Date
Please itemize grant-related charges for this Quarter on Page 5 of this report and include totals in this Section.
LACMTA
MSP TOTALLACMTA
Call for Projects
Project-to-Date Expenditure
Funds Expended to Date
(Include this Quarter)
1,640,424.00
Grantee To Complete
LACMTA FA ATTACHMENT C-1A
$PC25 $ Measure M $
Local Match
Call for Projects
SECTION 1: QUARTERLY EXPENSE REPORT
$
331,193.00 656,256.00 652,975.00 Total Project Budget Net Invoice Amount (Less
Retention)
Retention Amount
This Quarter Expenditure
Project Quarter Expenditure
Rev: 06.26.19 2 FA LTF Attachment C-1 Quarterly Report PROJECT TITLE:
QUARTERLY REPORT SUBMITTED FOR:
Fiscal Year : 2019-2020 2020-2021
2021-2022 2022-2023 2023-2024
Quarter : Q1: Jul - Sep Q2: Oct - Dec
Q3: Jan - Mar Q4: Apr - Jun
DATE SUBMITTED:
LACMTA MODAL CATEGORY:
Goods Movement
Phone Number:
E-mail:
SECTION 2: GENERAL INFORMATION
Contact Name:
2018-2019
Job Title:
RSTI Pedestrian
Bicycle
Name:
920000000F9620FA #:
LACMTA Project
Manager
Project Sponsor
Contact / Project
Manager
Phone Number:
TDM
Transit
Signal Synchronization
First/Last Mile Connections for the Baldwin Park Transit Center Mailing Address:
Department:
E-mail:
City / Agency:
Rev: 06.26.19 3 FA LTF Attachment C-1 Quarterly Report Start Date End Date
On schedule per original FA schedule Less than 12 months behind original schedule Between 12-24 months behind original schedule More than 24 months behind original schedule Yes No Not Applicable
Yes No Not Applicable
Design Bid & Award
Start Date
Construction Bid & Award
Construction
Ground Breaking Event
Environmental Clearance
2. PROJECT COMPLETION
Total Project Duration
(Months)
ListalldeliverablesandmilestonesasstatedintheFA,withstartandenddates.Calculatethetotalprojectduration.DONOTCHANGE THE ORIGINAL FA MILESTONE START AND END DATES SHOWN IN THE 2ND AND 3RD COLUMNS BELOW.
GranteesmustmakeeveryefforttoaccuratelyportraymilestonedatesintheoriginalFAScopeofWork,sincethiswillprovidethebasisfor calculatinganyprojectdelay.Ifmilestonestartand/orenddateschangefromthosestatedintheOriginalFAScopeofWork,indicatethe newdatesunderActualSchedulebelowandre-calculatetheprojectduration.However,thisdoesnotchangetheoriginalmilestonesin yourFA.PERYOURFAAGREEMENT,ANYCHANGESTOTHEPROJECTSCHEDULEMUSTBEFORMALLYSUBMITTEDUNDER SEPARATE COVER TO LACMTA FOR WRITTEN CONCURRENCE.
B. Was the project design started within 6 months of the date originally stated in the FA? C. Was a construction contract or capital purchase executed within 9 months after completion of design / specifications? SECTION 3 : QUARTERLY PROGRESS REPORT
Actual Schedule
End Date
1. DELIVERABLES & MILESTONES
Original FA Schedule in Scope of
Work
Right-of-Way Acquisition
Ribbon Cutting Event
Design
FA Milestones
A. Based on the comparison of the original and actual project milestone schedules above, project is (select only one) :
Rev: 06.26.19 4 FA LTF Attachment C-1 Quarterly Report
3. TASKS / MILESTONES ACCOMPLISHED
If the project is delayed (as described in #4), include action items that have been, or will be, undertaken to resolve the delay.
5. ACTION ITEMS TO RESOLVE DELAY
List tasks or milestones accomplished and progress made this quarter.
4. PROJECT DELAY
If project is delayed, describe reasons for delay (this quarter). Pay particular attention to schedule delays. If delay is for the same reason as mentioned in previous quarters, please indicate by writing "Same as Previous Quarter".
Rev: 06.26.19 5 FA LTF Attachment C-1 Quarterly Report 1 2
3 4
5 6
7 8
9 10
11 12
13 Invoice Payment Information:
LACMTA will make all disbursements electronically unless an exception is requested in writing.
ACH Payments require that you complete an ACH Request Form and fax it to Accounts Payable at 213-922-6107.
ACH Request Forms can be found at www.metro.net/callforprojects.
Written exception requests for Check Payments should be completed and faxed to Accounts Payable at 213-922-6107.
Signature Date
and that to the best of my knowledge and belief the information I certify that I am the responsible Project Manager or fiscal officer and representative of ITEM
Notes:
$ CHARGED TO LACMTA GRANT$ CHARGED TO LOCAL MATCH
SECTION 4: ITEMIZED LISTING OF EXPENSES AND CHARGES THIS QUARTER INVOICE #
All expenses and charges, including grant and local match, must be itemized and listed below. Each item listed must be verifiable by an invoice and/or other proper documentation. The total amounts shown here must be equal to this quarter’s expenditures listed on page 1 of this report. All expenses and charges must be reflective of the approved budget and rates as shown in the FA Attachment B, Scope of Work. Use additional pages if needed.
TOTAL
TOTAL EXPENSES /
CHARGES
stated in this report is true and correct.
2. All receipts, invoices, and time sheets, attached and included with this Expense Report must be listed and shown under the Invoice Number column of the Itemized Listing (above).
1. Local match spent in each quarter, must be in the appropriate proportion to LACMTA grant.
Rev: 06.26.19 6 FA LTF Attachment C-1 Quarterly Report Name Title
Los Angeles Metropolitan Transportation Authority
2021 Federal Transportation Improvement Program ($000)
LAF9620TIP ID Implementing Agency Baldwin Park, City of SCAG RTP Project #: 1O1008
Conformity Category: EXEMPT - 93.126
Project Description: First/Last Mile Connections for the Baldwin Park Transit Center: Improve pedestrian infrastructure by providing safe and efficient non-motorized connections to and from public transit facilities and destinations within the Downtown area.
Study:N/A Is Model: NO Model #:
PM: Sam Gutierrez - (626) 960-4011
Email: [email protected]
LS: N LS GROUP#:
PPNO:EA #:
Program Code: NCR25 - BICYCLE & PEDESTRAIN FACILITIES-UPGRADE Stop Loc:
Air Basin: SCABEnvir Doc: CATEGORICALLY EXEMPT - 12/31/2016 Uza: Los Angeles-Long
Beach-Santa Ana
Sub-Area: Sub-Region: San Gabriel Valley
COG
CTIPS ID:
Lane # Extd: Lane # Prop: Imprv Desc:
Hov acs eg loc: Toll Rate:
0.00 Toll Colc Loc: Toll Method:
System :Local Hwy Completion Date 12/31/2021Phase: Contract/Project AwardDistance: Postmile: Route :
PRIOR PROG TOTAL BEYONDPHASE 25/2624/2523/2422/2321/2220/21 $0 $0 PECITY - City Funds
CON
RW
SUBTOTAL $331 $331
$331 $331
$0 $0
$0 $0
$653 $653
$653 $653
MEASURE M MYSP (Multi Year Subregional Program) $0 $0
SUBTOTAL
CON
RW
PE
$0 $0
$0 $0
$656 $656
$656 $656 SUBTOTAL
CON
RW
PEPC25 - Los Angeles County Proposition "C25"
$1,640 TOTAL
TOTAL PE: $0 TOTAL RW: $0 TOTAL CON: $1,640
$1,640
TOTAL PROGRAMMED: $1,640
- General Comment: Project has completed design and was bid. The construction bid was significantly above estimate. Construction contract has was awarded and pending start in February 2021. This change in construction costs includes adding the additional funding by SGVCOG and City funds to cover the exceed costs. - Modeling Comment: Total costs for project has changed. The increase in costs is due to unforeseen/underestimated construction activities due traffic control and decorative features. Also due to third-party comments and during review the project was delayed/split to accommodate. - TCM Comment: No significant change made.
- Amendment Comment:
- CMP Comment:
- Narrative:
Change reason:SCHEDULE DELAY Total Project CostLast Revised Amendment 21-03 - Submitted $1,640 1Page Wednesday, February 17, 2021
FTIP # LAF9620 CFP# F9620 / MM4703.02 AMENDMENT NO. 1 FA# 920000000F9620
01.14.2021 Measure M - MSP Attachment G Bond Requirements 1 ATTACHMENT G BOND REQUIREMENTS The provisions of this Attachment G apply only if and to the extent some or all of the Funds are derived from LACMTA issued Bonds or other debt, the interest on which is tax exempt for federal tax purposes (collectively, the "Bonds"). GRANTEE acknowledges that some or all of the Funds may be derived from Bonds, the interest on which is tax-exempt for federal tax purposes. GRANTEE further acknowledges its understanding that the proceeds of the Bonds are subject to certain ongoing limitations relating to the use of the assets financed or provided with such proceeds ("Project Costs" or "Project Components") in the trade or business of any person or entity other than a governmental organization (any such use by a person or entity other than a governmental organization is referred to as "Private Use"). Private Use will include any sale, lease or other arrangement pursuant to which a nongovernmental person or entity receives a legal entitlement of a Project Component and also includes certain agreements pursuant to which a nongovernmental person will operate or manage a Project Component. Each quarterly invoice submitted by GRANTEE to reimburse prior expenditures (or to be received as an advance) shall provide information regarding the specific Project Costs or Project Components to which the Funds which pay that invoice will be allocated and whether there is or might be any Private Use associated with such Project Costs or Project Components. GRANTEE will, for the entire time over which LACMTA's Bonds or other debt remains outstanding, (1) notify and receive LACMTA' s approval prior to entering into any arrangement which will or might result in Private Use and (2) maintain records, including obtaining records from contractors and subcontractors as necessary, of all allocations of Funds to Project Costs or Project Components and any Private Use of such Project Costs or Project Components in sufficient detail to comply and establish compliance with Section 141 of the Internal Revenue Code of 1986, as amended (the "Code"), or similar code provision then in effect and applicable, as determined by LACMTA in consultation with its bond counsel. GRANTEE will designate one or more persons that will be responsible for compliance with the obligations described in this Attachment G and notify LACMTA of such designations.
CFP# F9620/M M4703.02
AMENDMENT NO. 3
Funding Agreement No, 9200000000F9620
FTIP# LAF9620
AMENDMENT No. 3 TO FUNDING AGREEMENT
BETWEEN CITY OF BALDWIN PARK AND
THE LOS ANGELES COUNTY METROPOLITAN TRANSPORTATION AUTHORITY This Amendment No. 3 to Funding Agreement (this "Amendment"), is dated as of July 15, 2022, by and between City of Baldwin Park ("GRANTEE"), and the Los Angeles County Metropolitan Transportation Authority ("LACMTA").
RECITALS:
GRANTEE and LACMTA entered into that certain Funding Agreement No. 9200000000F9620, dated October 3, 2017, which was amended on January 12, 2020 and August 17, 2021 (as amended, the "Existing FA"), which Existing FA provides for the First/Last Mile Connections for the Baldwin Park Transit Center (the "Project"); and A.
Whereas, the LACMTA Board on May 27, 2021 delegated administrative authority to staff to extend the funding lapsing date of the Measure M Funds previously approved to meet environmental, design, right-of-way and construction time frames; and.
B.
GRANTEE and LACMTA desire to amend the Existing FA as providedC. herein.
l
FA Local Amendment Lapsing Date ExtensionRev: 04.29.2022 FTIP# LAF9620 CFP# F9620/M M4703.02
AMENDMENT NO. 3
Funding Agreement No. 9200000000F9620
AGREEMENT:
NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereby agree as follows:
Part li, Paragraph 8.1 (v) of the Existing FA is hereby amended by deleting it in its entirety and replacing it with the following:
1. (iv) Measure M Funds programmed for FY 2019-20 are subject to lapse on June 30, 2023.
8.1 Attachment B-l - Scope of Work, attached to the Existing FA is hereby amended by deleting the Project Schedule and replacing it with the following Revised Project Schedule.
2. Amendment No. 2 Schedule in
Revised Project FA Schedule
FA Milestones Scope of Work
End Date End DateStart Date Start Date
Design Bid & Award Feb.2020 Feb.2020Mar. 2020 Mar. 2020 Execute FA Aug. 2017 Dec. 2017
Jul. Design Mar. 2022 2020 Jun. 2020 Nov. 2022
Construction Bid &
Award Jun.2020 Sep. 2020 Nov. 2022 Dec. 2022
Mar. 2021 Nov. 2021 Jan.2023Construction Apr. 2023
Project Close Out Nov. 2021 Dec. 2021 Apr. 2023 Jun.2023 Total Project Duration
(Months) 51 months 40 months
Except as expressly amended hereby, the Existing FA remains in full force and effect as originally executed. All rights and obligations of the parties under the Existing FA that are not expressly amended by this Amendment shall remain unchanged.
3. 2
FA Local Amendment Lapsing Date Rev: Extension 04.29.2022 CFP# F9620/MM4703.02
AMENDMENT NO. 3
Funding Agreement No. 9200000000F9620
IN WITNESS WHEREOF, the parties have caused this Amendment No. 3 to be duly executed and delivered as of the above date.
FTIP# LAF9620
LOS ANGELES COUNTY
METROPOLITAN TRANSPORTATION AUTHORITY
Date:By:
Stephanie N. Wiggins
Chief Executive Officer
APPROVED AS TO FORM:
DAWYN R. HARRISON
Acting County Counsel
•2-0.2.0-Date:By:
Deputy
CITY OF BALDWIN PARK
---------V--------------------------Date:By:
Emlrnamuel/J. Estrada
Ma-
APPROVED AS TO FORM:
1 1A O'Date:By:
Robeh Tafoya
City Attorney
3 FA Local Amendment Lapsing Date ExtensionRev: 04.29.2022 FTIP# LAF9620
CFP# F9620/MM4703.02
AMENDMENT NO. 4
Funding Agreement No. 9200000000F9620
Rev.: 03.08.2023 FA Local Amendment Lapsing Date
Extension
1 AMENDMENT No. 4 TO FUNDING AGREEMENT
BETWEEN CITY OF BALDWIN PARK AND
THE LOS ANGELES COUNTY METROPOLITAN TRANSPORTATION AUTHORITY
This Amendment No. 4 to Funding Agreement (this "Amendment"), is dated as of July 1, 2023, by and between City of Baldwin Park ("GRANTEE"), and the Los Angeles County Metropolitan Transportation Authority ("LACMTA").
RECITALS:
A. GRANTEE and LACMTA entered into that certain Funding Agreement No. 9200000000F9620, dated October 3, 2017, which was amended on January 12, 2020, August 17, 2021, and July 15, 2022 (as amended, the "Existing FA"), which Existing FA provides for the First/Last Mile Connections for the Baldwin Park Transit Center (the “Project”); and
B. WHEREAS, LACMTA Board on May 27, 2021 delegated administrative authority to staff to extend the funding lapsing date of the Measure M Funds previously approved to meet environmental, design, right-of-way and construction time frames; and
C. WHEREAS, the GRANTEE and LACMTA desire to extend the lapse date of FY 2019-20 funds to June 30, 2024; and
D. GRANTEE and LACMTA desire to amend the Existing FA as provided herein.
FTIP# LAF9620
CFP# F9620/MM4703.02
AMENDMENT NO. 4
Funding Agreement No. 9200000000F9620
Rev.: 03.08.2023 FA Local Amendment Lapsing Date
Extension
2 AGREEMENT:
NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereby agree as follows:
1. Part II, Paragraph 8.1 (v) of the Existing FA is hereby amended by deleting it in its entirety and replacing it with the following:
“8.1 (v) Expending the Funds granted under this FA for allowable costs by the lapsing date. All Measure M funds programmed for FY 2019-20 are subject to lapse on June 30, 2024.”
2 . Attachment B-1 – Scope of Work, attached to the Existing FA is hereby amended by deleting the Project Schedule and replacing it with the following Revised Project Schedule.
FA Milestones
Amendment No. 3 Schedule in
Scope of Work Revised Project Schedule
Start Date End Date Start Date End Date
Design Bid & Award Feb. 2020 Mar. 2020 Feb. 2020 Mar. 2020 Execute FA
Design Jul. 2022 Nov. 2022 Jul. 2022 Nov. 2022
Construction Bid & Award Nov. 2022 Dec. 2022 Oct. 2023 Nov. 2023 Construction Jan. 2023 Apr. 2023 Jan. 2024 Apr. 2024
Project Close Out Apr. 2023 Jun. 2023 Apr. 2024 Jun. 2024 Total Project Duration
(Months) 40 months 52 months
3. Except as expressly amended hereby, the Existing FA remains in full force and effect as originally executed. All rights and obligations of the parties under the Existing FA that are not expressly amended by this Amendment shall remain unchanged.
FTIP# LAF9620
CFP# F9620/MM4703.02
AMENDMENT NO. 4
Funding Agreement No. 9200000000F9620
Rev.: 03.08.2023 FA Local Amendment Lapsing Date
Extension
3 IN WITNESS WHEREOF, the parties have caused this Amendment No. 4 to be duly executed and delivered as of the above date.
LOS ANGELES COUNTY
METROPOLITAN TRANSPORTATION AUTHORITY
By: _________________________________ Date: ____________________ Stephanie N. Wiggins
Chief Executive Officer
APPROVED AS TO FORM:
DAWYN R. HARRISON
County Counsel
By: _________________________________ Date: ____________________ Deputy
City of Baldwin Park
By: _________________________________ Date: ____________________ Emmanuel J. Estrada
Mayor
APPROVED AS TO FORM:
By: __________________________________ Date: ____________________ Marco Martinez
City Attorney
STAFF REPORT
ITEM NO. _____7_____
TO: Honorable Mayor and Members of the City Council
FROM: Robert Lopez, Chief of Police
PREPARED BY: Joshua Hendricks, Captain
DATE: September 6, 2023
SUBJECT: Adoption of Resolution No. 2023 -029 Entitled “A Resolution of the City Council of the City of Baldwin
Park, California, Adopting a Policy for
Retention/Destruction of Obsolete Records of the
Baldwin Park Police Department.”
SUMMARY
This report seeks City Council approval in adopting Resolution No. 2023 -029 for the proposed Retention Schedule for the City’s Police Department records by PRI Management.
RECOMMENDATION
It is recommended that the City Council adopt Resolution 2023-029 entitled " A Resolution of the City Council of the City of Baldwin Park, California, Adopting a Policy for Retention/Destruction of Obsolete Records of the Baldwin Park Police Department.”
FISCAL IMPACT
There will be no fiscal impact to the general fund. This proposed retention schedule was completed as part of a services agreement previously approved by the City Council on June 15, 2022, for the Police Department’s record purging project. Funding for that project was paid from the Law Enforc ement Development Impact Fees account, #208-30-340-51101-00000.
BACKGROUND
On June 15, 2022, the City Council approved a service agreement contract with PRI Management to assist the police department records bureau in purging records. The contract stated that PRI would identify all records to be purged, complete all work needed with the courts and Department of Justice, and physically purge all appropriate records. Records that remain within the Retention Schedule will be organized, categorized, and stored in a manner that makes them readily accessible and manageable in the future.
All purging is to be conducted in compliance with the City of Baldwin Park Records Retention Schedule.
PRI developed a newly updated and comprehensive records retention schedule in collaboration with staff and in accordance with state requirements. The schedule establishes clear requirements for retaining police records, including:
• Criminal records
• Traffic records
• Administrative records
Since 2008, PRI has been exclusively helping law enforcement agencies achieve compliance, accuracy, and cost-effective management of records, data, and systems. One of their core offerings is the development of proper and efficient records retention policies and procedures for police departments.
ALTERNATIVES
The council may choose to provide Staff with other direction.
LEGAL REVIEW
The proposed retention schedule has been reviewed and approved by the City Attorney as to legal form and content.
ATTACHMENTS
1. Resolution No. 2023-029
2. Exhibit ‘A’ Baldwin Park Proposed Retention Schedule, by PRI Management
3. 2019 BPPD Records Retention Schedule (Currently in Use). 1 RESOLUTION NO. 2023-029
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BALDWIN
PARK, CALIFORNIA, ADOPTING A POLICY FOR
RETENTION/DESTRUCTION OF OBSOLETE RECORDS OF THE
BALDWIN PARK POLICE DEPARTMENT
WHEREAS, Section 34090 of the California Government Code provides that, with the approval of the City Council and the written consent of the City Attorney, the head of a city department may destroy any record, document, instrument, book or paper under his/her charge without making a copy thereof, after the same is no longer required, provided that certain records are exempt from such destruction; and
WHEREAS, on September 4, 2019, the City Council established a records retention policy and schedule to use as a guideline for the retention and destruction of City records and
WHEREAS, the Baldwin Park Police Department desires to make certain revisions to the records retention schedule for records and documents in its charge and
WHEREAS, to this end, the City Attorney and Staff of the Baldwin Park Police Department have prepared the “ Baldwin Park Police Department Records Retention Schedule” (the “Schedule”), attached hereto as Exhibit “A” and incorporated herein by reference, for consideration and adoption by the City Council; and
WHEREAS, the Ci ty Attorney has reviewed and approved the Schedule, as evidenced by his signature on this Resolution, in accordance with the provisions of Section 34090 of the California Government Code and
WHEREAS, the City Attorney and City Council hereby acknowledge t hat the City Attorney’s signature on this Resolution constitutes written consent under California Government Code section 34090 for the destruction of obsolete and unnecessary records and documents in the charge of the Baldwin Park Police Department in accordance with the Schedule and with the City’s general records retention and destruction policy adopted under Resolution No. 2019-043.
NOW THEREFORE, BE IT RESOLVED that the City Council of the City of Baldwin Park does hereby find and declare as follows:
SECTION 1. Approval of Retention Schedule. The City Council hereby approves the “Baldwin Park Police Department Records Retention Schedule," attached hereto as Exhibit "A" and incorporated herein as a part of this Resolution.
SECTION 2. Ongoing Authority. The Chief Executive Officer/City Manager shall have ongoing authority, without further approval by the City Council and with the consent of the City Attorney provided herein, to authorize destruction of records in accordance with the “Baldwin Park Police Department Records Retention Schedule" and the City’s general records retention and destruction policy adopted under this Resolution.
SECTION 3. Certification. The City Clerk shall certify to the passage and adoption of 2 this Resolution and enter it into the book of original resolutions.
SECTION 4. Effective Date. This Resolution shall take effect immediately upon its adoption.
P
ASSED, APPROVED AND ADOPTED this 6th day of August, 2023.
Emmanuel J. Estrada
Mayor
APPROVED:
______________________________
Marco A. Martinez
City Attorney
ATTEST:
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
CITY OF BALDWIN PARK
I, Christopher Saenz, City Clerk of the City of Baldwin Park, do hereby certify that the foregoing Resolution No. 2023-029 was duly adopted by the City Council of the City of Baldwin Park at a regular meeting of the City Council held on September 6, 2023, by the following vote to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
Christopher Saenz
City Clerk
A
EXHIBIT "A’
"B
ALDWIN PARK POLICE DEPARTMENT RECORDS RETENTION SCHEDULE"
[S
EE ATTACHED SCHEDULE]
City
Record Series Reference Active Inactive Retention Basis Notes Number
Abandoned vehicles 2 Years NIA 2 years GC §34090
Administrative Files (internal documents, memoranda, 2 years NIA 2 years GC §34090 correspondence, meeting minutes, daily watch reports) Administrative reviews -pursuits/crashes Active until 2 years Disposition+ 2 years GC §34090 Resulting in discipline: disposition +5 years. disposition Alcohol beverage license applications PD-001 2 Years NIA 2 years GC §34090 Records should be purged unless the data has become, or it is reasonable to believed that it will become, evidence in a criminal or ALPR/AVL data 60 days NIA 60 days CIV § 1798. 90.51 civil action or is subject to a lawful action to produce records. If data is part of a criminal case, it is booked as evidence either as a disc or fiashdrive. If it is saved on a fiashdrive, it gets transferred to on-premise server. Flashdrive is returned to assigned investigator.
Arrest files Active until NIA Based on type of crime. Refer to PC §799, 804 Refer to Case Files records series. Retention based on type of disposition Case Files records series. crime.
Asset seizure - financial records Active until 2 years Disposition+ 2 years GC §34090 disposition Auction records PD-002 2 years NA 2 Years GC §34090; Baldwin Park Directive The head of a department of a city or city and county after 100 days may destroy recordings of telephone and radio
communications maintained by the department. In the event that 1 year unless part of a Case File. the recordings are evidence in any claim filed or any pending Audio recordings -telephone/radio PD-021 1 year NIA Refer to Case File records series. GC §34090.6 litigation, they shall be preserved until pending litigation is resolved. For purposes of this section, "department" includes a public safety communications center operated by a city or city and county. If recording is part of a Case File, refer to Case File Record Series.
Audits-CJIS 2 years NIA 2 years GC §34090
Active during GC §34090, 29 CFR 1627.3(b)(1), 29 CFR
Background files - hired PD-015 employment 5 years Termination/Separation+ 5 years 1602.14 et seq; 2 CCR 11013(c); GC Retained for administrative value. §§12946, 12960, 34090
Background files - non-hired PD-016 5 years NIA 5 years GC §12946 EEOC / FLSA / ADEA (Age) requires 3 years; State Law requires 2 - 3 years;, 8 CCR §11040.7(c); GC §§12946, 34090.
Bail Receipts PD-025 2 years NIA 2 years GC §34090; Baldwin Park Directive Body worn camera -access logs Permanent NIA Permanent PC§148.6, §832.18, §13010.5, §13012, Records or logs of access and deletion of data from body-worn and §13012.5 cameras should be retained permanently.
If evidence that may be relevant to a criminal prosecution is Active until PC§148.6, §832.18, §13010.5, §13012, obtained from a recording made by a body-worn camera, the law Body worn camera -evidentiary NIA Refer to Case File Records Series enforcement agency should retain the recording for any time disposition and §13012.5 relevant to a criminal prosecution. Refer to Case File Records Series.
Body \.Vorn Camera - non-evidentlary 60 days NIA 60 days PC §832.18 Body worn camera -Officer Involved Shooting Fatal Permanent NIA Permanent PC §801.S, §803(c) Body worn camera - Officer Involved Shooting Non-fatal Active until 10 years Disposition+ 10 years PC §801.S, §803(c) disposition Booking Log PD-003 2 years NIA 2 years GC §34090; Baldwin Park Directive Budget information 2 Years NIA 2 Years GC §34090
Until
Business Operators Licenses (massage, taxi, etc) PD-004 Termination/Change NIA Termination/Change+ 2 years GC §34090; Baldwin Park Directive of Ownership
CAD Incicient/Call for Service 2 years NIA 2 years GC §34090 Case flies - felony (arson, murdet; embezzlement of public Case files includes but is not limited to: incident reports, arrest monies; kidnap, treason, kidnapping for ransom, PD-028 Permanent NIA Permanent PC §799, PC §11169 reports, supplemental reports, statements, booking forms, falsification of public records, child abuse substantiated, property forms, and related records. latent prints) City
R,,mnl Seri .. lt•f•nmee .\<1 1•• 1.Datt1, ·• Jt,t•UlfoU Baitis Nntes Number
Ca •• HI.,, · Mon)' (N OT taJ>lla l trtil><> or <rim .. Act1ve, 1.tntil PC §804; PC §80 3.7 {a) , PC §368(b f} Case files in clu des but is not limit ed lac ln cldenl repo ns, ar rest PD-027 10 years Disposition + 10 year,s (2), (3}, W&l §1 5630, PC §288 (ll), (b (2 , reports, supp lemental reports-, statements, booking forms, 11u11 lslm1Jlc 1J1• denllllllf � J1 11pr lwnmon1. latenl prlnl <J disposmon (c)(2) prope rty forJTis, a11d related te<;ords_
Case filss includes but 1s not llm1!ed foe in cident reports, an ,.sl Ca so RI�, - grnornl fa5Si\Uh, Ooandal crime�, drug nll"i PC §804 ; PC §803,7 (a) , PC §3 6B(b)( l ), reports, supplemen tal reports, statements, book ing forn1s, Acllve ,mtll property forms, an d related records. l"or losttfound property , Ir(see mnrlj unoa reco"I serles herein). rohbei-los, MV lhefl, PD-030 d1spos 1tton 5y ears Dis posilion ;- 5 years (2). (3}, W&l §1 5630, PC §2 88 (a) , (o)(2), llrtlfa QI over $1 0,000, retention iij perman�nt - StaMe of misdEm 1.•anor. .Sl"FVk�-. reports". lo tent prlnf'i) (c)(2) ltrn llatlons Is up to 3 years (recovery from seized propen_y by pol ice Is 1 year); CP §338(c), 340( 4), 341 (a) ; GC §34090 Cn,., 1'11<,sc • V11ra11:ir RelleC Gnu)l •tl l,y Cou,� . \1c0n1 of PD--032.2 Coun Order • 1 year N/A Court Order • 1 year GC §34090; PC §§236. 14 (k); 236 .1 S(k) llu nian l'raffi d<lng (;\' onviolont C11mo<) C'bior-. Sul>Je<t ffies P0-005 2 yea rs N/A 2y ears GC §34090; Baldwin Park Directive 10 -year purge for child abuse repons with an investigative findin g of 'Inconclus ive..• Repons with an In vestigative finding of "substan tiated" are not purged unless the In vestigating agency Cl,ll d a�uso - un, uh.<Wp tl•iorl 10 years N/A 10 years PC §1 1 1 69(c) and §1 1 1 70(a)(3 ) modrfies it's investigative fmdlngs to 'inoo nclu s,ve' or 'un founded,' or the record is sealed pur suant to secti ons 389 or 78 1 of the Welfare and lnstlMions Code (Juvenile) or 851 .8 PC (f actually In nocent).
Clearn nce )c-l trn. - no hb.Lorr 2y ears NIA 2y ears GC §3409 0, PC § 1 1 1 05, 3 Under Penal Code 832.5, un•suS1a1ned mu st be kept 5 years, even If they leave emp loyment, Records from frivolous, unfounded, or exonerated cases shall be main tai ned separate ly from the Cam1,l• lnL> 3g•ln. ,t officer,. (lnlel'UI Jn<l •il•>11al) • Acttvs unlll EVC §10 45, GC §§12946, 1 2960, 34090, employ ee's personnel file- PC 832.05. Mamtalned in Professiona l sy ears Dispos ition + 5 years Standalds . State requ ires at least 6 years for civil ian Citizen's Nirn,qn,1Mn�d dispo sition PC §§SOl.5 , B03(c ), 832.5, VC §2547 comp lalhts: other State g Federal laws require retention until final disposition of formal compla int; State requires 2 years after action ls taken; Statute of Limltations is 4 years for misconduct af\er the discovery of the offense for miscondOct in office.
Under PeMI Code 832.5, sustained must be kept 1.5 years, eve n If they le ave employment. Records from frfvolous. unfounded , or exonerated cases shall be mai nta ined separate ly from the ComJll •inL> ng•in. ,I offlters (ln re,·nal un<l external) - Act(ve untll EVC §1 045 . GC §§ 1 2946, 12 960, 34 090 , e,mploye,e's personnef file- PC 832.05 Malnla\neod In Profes sio nal S years Dispositio n + 5 years Standards. State requ ires at least 5 years for civilia n Citizen's 5u llaln•d dls pos mon PC §§80 1 .5, B03(c), 832, 5, VC §2547 compla rnts; other State g Fed,.ral laws requ ire retention until final d�position of formal compla int; State requires 2 yea rs after action Is taken ; StatuJe of Limllations ls 4 years for mi soonduot after the discovery of the offense for misconduct 1n office .
Co urt Rt'1.."Urd:ir - OA l"ll'jeNlon 11}1'\, Oocltct Ust'iit ffidav Us Refer to Case File N/A Refer to Case Rle Records Series GC §34090 Kept In oase file s Serles Crime . .\.nuJ y:ils IYport.s 2 years- N/A 2 years GC §340\10 De-pa rlnum ral :'.\l anuak. Until Superseded 2y ear s Superseded + 2 years GC §340\10 llflon1lon C'nUHent ., Refer to Case File N/A Refer to Case File Recoros Serres GC §34090 Filed In case file. Serles D:\IV • S1.s prudod . Re,•okl'tl Noli«, 3 years NIA 3 years GC §94090 &. City retention Item 018 .
When superseded 01 When superseded or upo11 Trans itory or sourw records not retained In the ordinary course of D�rv Pu II Rocorr:h PD-007 NIA GC §34090; Baldwin Park Directive business; CHP audits every 2 years; Bureau of Nalfonal Affair s upon retention retention reoommends 2 years for ail supplemeniary Personnel records; Drug/Nnrcot k Re!,!bf1111 1• P0-034 5y ears- N/A 5Y ears GC §340 90, H&S §1 15 90 et SeQ ., H&S §1 1 594(a}
Emal.L, 2y ears N/A 2 years GC §34090 Managed by email �ystem retention feature.
E.n,1<"rg__<'nry Plan, P0-008 Superseded + .2 years NIA Super seded + 2 yea rs GC §.34090 ; Bald win Park Directive Emp loI•'<' <'LET Trnlnlng R .. orrl, Actlve dunng 1 Year Separ,tlon + 1 year CLITS CLETS empl oyrnenl PD-011.1
PD-011
RESOLUTION NO. 2019-043
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BALDWIN
PARK ADOPTING UPDATED RECORDS RETENTION SCHEDULES,
AUTHORIZING DESTRUCTION OF CERTAIN CITY RECORDS AND
RESCINDING RESOLUTION 2014-035
WHEREAS, the maintenance of numerous records is expensive, slows document retrieval, and is not necessary after a certain period of time for the effective and efficient operation of the government of the City of Baldwin Park; and WHEREAS, Section 34090 of the Government Code of the State of California provides a procedure whereby any city record which has served its purpose and is no longer required may be destroyed; and
WHEREAS, the State of California has adopted guidelines for retention period for various government records; and
WHEREAS, the City of Baldwin Park previously passed Resolution 2014-035, adoption records retention schedules for the city.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF BALDWIN PARK HEREBY RESOLVES AS FOLLOWS:
Section 1. The records of the City of Baldwin Park, as set forth in the records retention schedule Exhibit A, attached hereto and incorporated herein by this reference, are hereby authorized to be destroyed, as provided by Section 34090 et seq. of the Government Code of the State of California and in accordance with the provision of said schedule, upon the request of the department head and with the consent in writing of the City Clerk, without further action by the City Council of the City of Baldwin Park.
Section 2 With the consent of the city clerk, city manager, and city attorney, updates are hereby authorized to be made to the records retention schedule without further action by the City Council of the City of Baldwin Park.
Section 3. The term "records" as used herein shall include documents, instructions, books, microforms, electronic files, magnetic tape, optical media, or papers; as defined by the State of California Public Records Act.
Section 4. Resolution 2014-035 is hereby rescinded.
Section 5. The City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.
PASSED, APPROVED, AND ADOPTED this 4th day of September, 2019.
ZANO
ATTEST:
STATE OF CALIFORNIA }
COUNTY OF LOS ANGELES 55:
CITY OF BALDWIN PARK
I, JEAN M. AYALA, City Clerk of the City of Baldwin Park do hereby certify that the foregoing Resolution No. 2019-043 was duly adopted by the City Council of the City of Baldwin Park at a regular meeting thereof held on September 4, 2019 and that the same was adopted by the following vote to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
COUNCIL MEMBERS: Avila, Garcia, Hernande.:., l..ozano, Pacheco COUNCIL MEMBERS: None
COUNCIL MEMBERS: None
COUNCIL MEMBERS: None
Exhibit "A"
City of Baldwin Park's
Retention Schedule
Ver. 7.0
Office of Classification
Record OR Records Description
File Number
(OFR)
RECORDS RETENTION SCHEDULE: POLICE
Active
(in office)
Inactive
(Off-site,
OD or Mfr)
Retention / Disposition
Total
Retention. Vital? Media
Options
If the record is not listed here, refer to the Retention for Citv-Wide Standards Litiaation claims, complaints and/or federal investiaations susoend normal retention periods (retention beains after settlement).
Image:
l=lmport
M=Mfr
S=Scan
Destroy
Paper
after
Imaged&
nr.:'d?
Page PD-1
Comments / Reference
(Citations to the law are for reference
only and not to be deemed binding on
the City)
Utiaation, claims, comolaints, audits oendina oublic records reauests and/or fedeFal investiaations susoend normal retention periods (retention resumes after settlement).
Police
Police
FiRanee
Police
Police
Police
Police
PD-001
PD-002
PD-003
PD-004
PD-005
PD-006
PD-007
Alcohol Beverage License
Applications
Auction Records
Notice of Booking / Booking Log
(Used to charge the School
District and Irwindale)
Business Operators (massage,
taxi, etc.)
Chiefs Subject Files
Crime Statistics I Uniform Crime
Reports - Summaries
DMV Pull Notices
When No
Longer
Required
2 years
2 years
When No
b0A§ef
Re€Juired
Termination
/Change of
Ownership+
2 years
Minimum2
years, or
until no
longer
needed
When No
Longer
Required
10 yeaFS
When
Superseded
QL
Upon
Separation
2-yeaFS
WhemNO·
Longer ... 1;: .· •...•
Reauired
2vears
... 2years .•
WheRNo'
1 • t.a~get=•. •
•b-:.:. .. ,.:~.,i::
Termination
tChangeof.
Ownership+
·•2vears ·
••Minimurn2:,
;years/or• ..
.. until no .. '
longer
needecf ·
WhenNo
Lorigef',
· Regui~ed.,,
.... ,.. .. , . .cc:_.:.•:•·.
. . ..... .
..• When\::··
Su~d
Pf-:c>.::•· .!J.QQ!LT.:;
'Separation~
• .2 ~paf;'S ,,::
CITY OF BALDWIN PARK, CA. ©2003 Gladwell Governmental Services, Inc. - all rights reserved Do not duplicate or distribute without prior written permission from GGS (909) 337-3516 Ppr
Mag, Ppr
Mag, Ppr
Mag, Ppr
Mag, Ppr
Mag, Ppr
Mag, Ppr
Non-records; GC §34090
GC §34090
GC§34090.,.7
GC §34090
Department Preference; GC
§34090 et seq.
Filed with the State of California
On Line: Department prefereRee;
GC §34090
Transitory or source records not
retained in the ordinary course of
business; CHP audits every 2
years; Bureau of National Affairs
recommends 2 years for all
supplementary Personnel records;
GC §34090
Adopted: 09/01/2004
Revised:
Ver. 7.0 RECORDS RETENTION SCHEDULE: POLICE Page PD-2
Office of Classification Records Description Retention / Disposition Comments I Reference Record OR File Number Image: Destroy
Inactive
··,.
Paper (Citations to the law are for reference Active Total . Media !=Import (OFR) (Off-site, .. . . .. Vital? after only and not to be deemed binding on (in office) OD or Mfr) .Retention , Options M=Mfr Imaged & the City) S=Scan ... ,. nr-•,1?
If the record is not listed here, refer to the Retention for Citv-Wide Standards Litiaation, claims, complaints and/or federal investigations suspend normal retention oeriods (retention begins after settlement).
Litiaation claims, comolaints audits oendina oublic records reauests and/or ledeFal investiaations susoend normal retention ,,eriods (retention resumes after settlement).
Police PD-008 Emergency Plans Superseded Superseded
+ 2 years ··+'2vears
Police PD-009 Guns: Dealers Record of Sale 2 years '2 vears · :a,, LiveScan Requests (Members of When No Wheri,No
Police PD-012 the Public) Longer Ldng&f,;,,
Required •,Reauired
Police PD-013 Neighborhood Watch 2 years 2vears; ...
Operation Directives / General . ''.' .,, '
Police PD-014 Orders (Department Policies and Minimum2 Minimum:2 Procedures) years y~rs,;, '
Reports and Studies regarding . ,. "
Police PD-019 Police operations (not historical - Minimum2 Miniinuin2• manpower, etc.) years )'.8~,[S ,:_
ReQort of data regarding the
•,.
·""'
,:,: .m
Police/ number, ~Qe, or disimsition of 2 years
1 ' 2"v~~r{ Admin. comQlaints made against its . ..
officers (oQtional) . ::, ·,,,, ,, ..
. ,
Yes:
Minimum~& fvtiniJ"l'tigt "~-i Current Police PD-020 Work Assignments (Schedules) years ye,ars Schedule ,. ·: :_."' only
CITY OF BALDWIN PARK, CA. ©2003 Gladwell Governmental Services, Inc. - all rights reserved Do not duplicate or distribute without prior written permission from GGS (909) 337-3516 Mag, Ppr
Mag, Ppr
Ppr
Mag, Ppr
Mag, Ppr
Mag, Ppr
Mag, PQr
Mag, Mfr, Yes: After
s /I QC&OD OD, Ppr -1-yeaf
Department Preference; GC
§34090
GC §34090
Transitory records not retained in
the ordinary course of business; §
34090 et seq.
GC § 34090 et seq.
Department Preference; GC §
34090 et seq.
Department Preference; GC §
34090 et seq.
GC §34090 et seg.
Department Preference; GC §
34090.7
Adopted: 09/01/2004
Revised:
Ver. 7.0 RECORDS RETENTION SCHEDULE: POLICE Page PD-3
Office of Classification Records Description Retention / Disposition Comments / Reference Record OR File Number Image: Destroy
Active Inactive Total' Media !=Import Paper (Citations to the law are for reference (OFR) (in office) (Off-site, Retention Vital? Options M=Mfr after only and not to be deemed binding on OD or Mfr) Imaged & the City)
.. S=Scan O~'d?
If the record is not listed here refer to the Retention for Citv-Wide Standards Litiaation claims, comolaints and/or federal investiaations susoend normal retention oeriods (retention beains after settlement). I Liti<1ation, claims, complaints, audits oendina oublic records reauests and/or fedeFal investiaations su.<:nend normal retention oeriods (retention resumes after settlement). · .. · . COMMUNICATIONS
·''w
Audio Recordings or Tapes - .,
(CAD/RMS) Recordings of .
Police PD-021 Telephone & Radio 1 year 1 ye,ars, ·
Communications Dispatch Tapes ·.'
(CAD) ...
.. .: . . ...
Police PD-022 Video Recordincis or Taoes 1 vear 1 veats
INVESTIGATION
Detectives Investigation Files Transferred Transferred
Police/ into
1:.
irifo PD-047 and Arrest Files (Official lnvestigat. Record's Record's\: Reports} Files ... :Files::, , When No When:No::.
Longer ' Lo11gEJr. .·::
Police/ PD-048 Informant Files Required - ·Required'~. lnvestigat. Minimum2 Minimurn2' vears ... :vears'·"·:·
CITY OF BALDWIN PARK, CA. ©2003 Gladwell Governmental Services, Inc. - all rights reserved Do not duplicate or distribute without prior written permission from GGS (909) 337-3516 . ····. ;:· \ . ..
Mag
Maa
Ppr, Mag
- Ppr, Mag
Department Preference; Statewide
guidelines propose 180 days
(legally mandated for 100 days);
(may be discoverable or made
public in some circumstances),
GC §§34090, 34090.6
GC S34090.6
Transfer all Official Reports to
Records to be placed in the Day
Files.
Department Preference; Does not
contain criminal intelligence
information concernina individuals·
GC §34090
Adopted: 09/01/2004
Revised:
Ver. 7.0 RECORDS RETENTION SCHEDULE: POLICE Page PD-4
Office of Classification Records Description Retention / Disposition Comments / Reference Record OR File Number Image: Destroy
Active Inactive Total Media l=lmport Paper (Citations to the law are for reference (OFR) (in office) (Off-site, Retention Vital? Options M=Mfr after only and not to be deemed binding on OD or Mfr) S=Scan Imaged& the City)
.. ··. .·. nr.:'d?
If the record is not listed here refer to the Retention for Citv-Wide Standards Litiaation. claims. comolaints and/or federal investiaations susoend normal retention oeriods (retention beains after settlement). I Litigation claims, comolaints, audits oendina oublic records reauests and/or fedeFal investiaations susoend normal retention 1eriods {retention resumes after settlement). ;.
,;
:, ,,
·''
,;,
·.,
Police/ PD-049 lntelliaence Files Nice Terrorist 5 years ::, Svears, lnvestigat. etc.} .·, .
. ,
,,
·, ,,.
.
"" ,.,
' PROFESSIONAL STANDARDS.UNIT
i ,· ; ' ,,,
When · .. When''',,'
Superseded SurmrsArled ,,
Police/ ::,,
PD-007 DMV Pull Notices or ' .. QL
PSU Upon ,, Opon''
Separation ,,seoarefion;
2-yeaFS ,,2'¥,0~':"
CITY OF BALDWIN PARK, CA. ©2003 Gladwell Governmental Services, Inc. - all rights reserved Do not duplicate or distribute without prior written permission from GGS (909) 337-3516 Mag. Ppr
Mag, Ppr
Files contain criminal intelligence
information concerning an
individual only if there is
reasonable suspicion that the
individual is involved in criminal
conduct or activi!Y and the
information is relevant to that
criminal conduct or activity.
Misleading. obsolete or unreliable
information is reguired to be
destroved· remainina records must
not be retained longer than 5
years; 28 CFR 23.20(h}; GC
1~34090
Transito[Y or source records not
retained in the ordina[Y course of
business; CHP audits every 2
years; Bureau of National Affairs
recommends 2 years for all
supplementary Personnel records;
GC §34090
Adopted: 09/01/2004
Revised:
Ver. 7.0 RECORDS RETENTION SCHEDULE: POLICE Page PD-5
Office of Classification Records Description Retention I Disposition Comments I Reference Record OR File Number 1 I Destroy
Inactive
.. mage:
Active Total. Media l=lmport Paper (Citations to the law are for reference (OFR) (in office) (Off-site, Retentton··. Vital? Options M=Mfr I after only and not to be deemed binding on OD or Mfr) S=S Imaged & the City)
.. .. .. .. can n~'d?
If the record is not listed here, refer to the Retention for Citv-Wide Standards Litiaation claims, complaints and/or federal investiaations susoend normal retention oeriods {retention b,:,nins after settlement). I Litiaation claims, complaints audits oendina oublic records reauests and/or fedeFal investiaations susoend normal retention periods (retention resumes after settlement). .··
..
Final Final Police L PD-010 Internal Affairs Investigations - Disposition Disposition• PSU Internal Complaints + 5_ G years +[.6years ..
Final Final·
Police L PD-011 Internal Affairs Investigations - Disposition Disposition PSU Civilian Gitii:eA's Complaints + 5. Gyears + [.6years ..
...
.
I, , .. 'I, ..
CITY OF BALDWIN PARK, CA. ©2003 Gladwell Governmental Services, Inc. - all rights reserved Do not duplicate or distribute without prior written permission from GGS (909) 337-3516 Mag, Ppr
Mag, Ppr
State requires for at least 5 years
for civilian Citi:wn's complaints;
other State & Federal laws require
retention until final disposition of
formal complaint; State requires 2
years after action is taken; Statute
of Limitations is 4 years for
misconduct after the discove[Y of
the offense for misconduct in
office;; IA ana Statewi€le
g1;1i€lelines reeemmenel ~§ yeaFS
for officer in•rolved shootings; EVC
§1045, GC §§12946, 34090, PC
§§801.5, 803(c), 832.5, VC §2547
State requires for at least 5 years
for civilian Citi:z:en's complaints;
other State & Federal laws require
retention until final disposition of
formal complaint; State requires 2
years after action is taken; Statute
of Limitations is 4 years for
misconduct after the discove[Y of
the offense for misconduct in
office:; IA an€l Statewi€le
!!Jllidelines reoemmenel ~§ years
for effieer in•,elveel sheetings; EVC
§1045, GC §§12946, 34090, PC
§§801.5, 803(c), 832.5, VC §2547
Adopted: 09/01/2004
Revised:
Ver. 7.0 RECORDS RETENTION SCHEDULE: POLICE Page PD-6
Office of Classification I Records Description Retention / Disposition Comments / Reference Record OR File Number Image: Destroy
Active Inactive Total. Media l=lmport Paper (Citations to the law are for reference (OFR) (in office) (Off-site, Retention. Vital? Options M=Mfr after only and not to be deemed binding on OD or Mfr) S=Scan Imaged & the City)
.. ... ... Or.'d?
If the record is not listed here, refer to the Retention for City-Wide Standards Litiaation, claims comolaints and/or federal investiaations susoend normal retention oeriods (retention beains after settlement).
Litiaation, claims complaints, audits oendina oublic records reauests and/or federal investiaations susoend normal retention I eriods (retention resumes after settlement). . ·:s IY
Personnel Background Checks Minimum Minimum.•··.
Police or . ··•· ....
Personnel PD-015 Selected Employees other than Separation + Sep1:1raiio~. + Peace Officers ~4G years 440ye1;1rs ..
I•
. ••• ... . '·
PoliceL PD-016 Personnel Background Packet - Minimum~ Minimum'.3 PSU unsuccessful (not hired) 4Gyears :Wyears.
..
Personnel Department Training Minimum
• ., .•.. 't
PoliceL File (Includes POST Data, Files Mi11inl.Ulf! ...
PD-017 Separation + Separatiqn cl: PSU and Printouts for Training 10 years 10yeafs·"'· Courses) . .. . . .. ·•··
; ........
Personnel Files - Police .. .... .
PoliceL Department Employees Minimum MiniinutJl ;;s
PD-018 (includes Background Checks, Separation + Separation,+ PSU ., 10 years\. Polygraphs and/or Voice Stress 10 years Analyzer tests)
"'
CITY OF BALDWIN PARK, CA. ©2003 Gladwell Governmental Services, Inc. - all rights reserved Do not duplicate or distribute without prior written permission from GGS (909) 337-3516 Mag, Mfr, Yes: After
OD, Ppr s /I QC&OD
-4-yeaf
Yes: After Mag, Mfr, s /I QC&OD OD, Ppr -4-yeaf
Yes: After Mag, Mfr, S/1 QC&OD OD, Ppr -4-yeaf
Mag, Mfr, Yes: After
S/1 QC&OD OD, Ppr -4-yeaf
Department Preference;
GaRsisteRt with PersaRRel i:::ile;
Statute of Limitations: Public
official misconduct is discovery of
offense + 4 years; GC §§36507,
34090; PC §§801.5, 803(c); 29
USC 1113
Department Preference; GC
§34090
Department Preference;
Consistent with Personnel File;
State & Federal laws require 2 -3
years; 29 CFR 1602.31 &
1627 .3(b )(ii), 8 CCR §3204( d)( 1)
et seq., GC §§12946, 34090
Department Preference; Exception
to Citywide standards; Statute of
Limitations: Public official
misconduct is discovery of offense
+ 4 years; GC §§36507, 34090;
PC §§801.5, 803(c); 29 USC 1113
Adopted: 09/01/2004
Revised:
Ver. 7.0 RECORDS RETENTION SCHEDULE: POLICE Page PD-7
Office of I Classification
Record OR Records Description Retention / Disposition Comments I Reference File Number Image: Destroy
Active Inactive Total Media l=lmport Paper (Citations to the law are for reference (OFR) (in office) (Off-site, Retention, Vital? Options M=Mfr after only and not to be deemed binding on OD or Mfr) S=Scan Imaged & the City)
·.• n~'d?
If the record is not listed here refer to the Retention for Citv-Wide Standards Litiaation, claims complaints and/or federal investiaations suspend normal retention oeriods (retention beains after settlement). I I Litiaation, claims comolaints, audits oendina oublic records reauests and/or fedeF8I investiaations suspend normal retention periods (retention resumes after settlement). ·• .. · . . .., '' ·';,.·· .•. ;> .. . RECORDS ,,.
.
.
It
Police PD-023 Arson Registrations: Adults P, or Death P, orDeath of Registrant of Reaistrant
.
Age 25 or Age25or
Arson Registrations: Juveniles Sealing Date Sealing Date Police PD-024 released from California Youth + 5 years or +.p y~ars, QI Authority Death of ,. Death of
R~istrant Reaistrant
Police PD-025 Bail Receipts 2 years ... 2:vearse:. ·
Citations (all misdemeanors QL .. ,.. "'·· ...
infractions): MarijuanaL Court •··Court ...
Police PD-026 Disposition 'Disposition Cannabis Citations or Reports + 2 years +2years••··· (less than 28.5 grams) .. ... ... ... .... . . ..
...
;··
Crime Reports / Arrest Reports:
PD-029 "Detention Only" Retainable 2 years
. ·,. ·•F ••
Police 2 years· : Arrests (Disorderly Conduct
without priors, etc.)
;;ff .,;e c :'!'
CITY OF BALDWIN PARK, CA. ©2003 Gladwell Governmental Services, Inc. - all rights reserved Do not duplicate or distribute without prior written permission from GGS (909) 337-3516 .. .
Mag, Ppr
Mag, Ppr
Mag, Ppr
Ppr
Yes: After Mag, Mfr, s /I QC&OD OD, Ppr -Na
Department preference; Pursuant
to PC §457.1 et seq.; required to
register for life; If released from
CYA, records are destroyed after
age 25 or sealing pursuant to W &I
§781; GC §34090.7
Pursuant to PC §457.1 et seq.; If
released from CYA, records are
destroyed after age 25 or sealing
pursuant to W&I §781; GC
§34090.7
GC §§34090 et seq.
GC §34090, H&S §11361.5
Provided there are no outstanding
warrants, deaths, and it is not
class. under PC §800 & 290 and
H&S § 11850; Stat. of Limit. is 2
yrs; Destroy juvenile marijuana
after age18; H&S § 11361.5, GC
§34090, PC §§187, 647(f), 800,
802, 849 et seq.
Adopted: 09/01/2004
Revised:
Ver. 7.0 RECORDS RETENTION SCHEDULE: POLICE Page PD-8
Office of Classification Records Description Retention / Disposition Comments / Reference Record OR File Number Image: Destroy
Inactive . Paper (Citations to the law are for reference Active Total Media l=lmport (OFR) (in office) (Off-site, Retention Vital? Options M=Mfr after only and not to be deemed binding on OD or Mfr) S=Scan Imaged& the City)
.. :· ... O~'d?
If the record is not listed here, refer to the Retention for Citv-Wide Standards Litiaation, claims. comolaints and/or federal investiaations susoend normal retention oeriods (retention begins after settlement). I I Utioation claims complaints audits oendina oublic records reauests and/or fedeFal investi.oations suspend normal retention oeriods (retention resumes after settlement). ... '':'
.::
Crime Reports: Felonies and ..
Misdemeanors - ALL except 7 years or ?years.or ... Yes:
Police PD-027 those otherwise specifically upon DOJ .·upon.[)OJ''' Before mentioned in this retention Notification Not1ficatidh Disposition schedule . .. ·t
..
I
i
..... ,.. ,:
Crime Reports: Homicide, ..
.. ·
Falsification of Public Records,
Kidnapping, Unsolved Child or .,,
Elder Abuse, Sexual Assault & I•
Neglect, Rape, Misuse of Public .... Yes:
Police PD-028 Funds, Train-wrecking, Treason, p !• p
,..
Before
Stolen Guns with Serial I• Disposition
Numbers, Suicide, Fatalities n
(Crimes Subject to Death
Penalty or without statute of
I·
::.' Limitations) •• a;:• ,.::,
2 years or .,2')'eiJFS:EilF ;'' Grime Re13orts: Marijuana less Peliee PQ-000 s1,.1bjest 18 ·subje~1g·· tl'taR 28.5 grams years olel
,,.--''-- :=t .. .__.1=!F,.
r.,:,
CITY OF BALDWIN PARK, CA. ©2003 Gladwell Governmental Services, Inc. - all rights reserved Do not duplicate or distribute without prior written permission from GGS (909) 337-3516 Mag, Mfr, Yes: After
S/1 QC&OD OD, Ppr -Ne
Yes: After Mag, Mfr, S/1 QC&OD OD, Ppr -4-yeaF
?Pf
Department Preference; Provided
there are no outstanding warrants,
unrecovered weapons, criminal
deaths, they are not historically
significant, and it is not classified
under PC §800 & 290 and H&S
§ 11850; Stat. of Limit. is 2 yrs;
Destroy juvenile marijuana after
age18; H&S §11361.5, GC
§34090, PC §802, PC §§187, 800
et seq.
Department Preference; Most
have no limitations on
commencement of action; PC §§
261,286,288,288a,288.5,289,
289.5, and 799
GG §34090, H&S §11361.6
Adopted: 09/01/2004
Revised:
Ver. 7.0 RECORDS RETENTION SCHEDULE: POLICE Page PD-9
Records Description Retention / Disposition Comments / Reference Office of Classification I Record OR ,'----------------t-----,---------.----.-------,--------,-----,--=----:---+--------------1 File Number Destroy (OFR) Active
(in office)
If the record is not listed here, refer to the Retention for City-Wide Standards Inactive
(Off-site,
OD or Mfr)
· ...
Total. •
Retention Vital? Media
Options
Litiaation, claims, comolaints and/or federal investiaations susoend normal retention oeriods (retention beains after settlement).
Image: Paper
!=Import after
M=Mfr
S=Scan Imaged &
nl''d?
(Citations to the law are for reference
only and not to be deemed binding on
the City)
Liti_qation claims complaints audits oendina oublic records reauests and/or fefieFal investigations susoend normal retention periods {retention resumes after settlement).
Police PD-031
Police PD-032
Police/ PD-050 Records
Police PD-034
Police PD-035
Police PD-036
Peliee PQ-Q3.7-
Crime Reports: Misdemeanor .,
Marijuana / Cannabis Offender is §11357(d) - Juvenile on School 18 Years Grounds during School Hours Old
{with procedure in H&S
§11361.5)
Crime Reports: Missing
Persons
Crime Reports: Sealed Cases
("Factual Innocence")
Crime Reoorts: Misdemeanor or
Infraction - Juvenile Mariiuana
/ Cannabis - H&S § 11357 -
Except those with outstanding
stolen property, including
firearms, or lost firearms
Drug I Narcotic Registrants
Evidence, Property, Photographs
& Film and MA V evidence
segments: Crime Scenes
Field Interview Cards
bi,.•eSeaR be!Js {Resl:)eRse)
Until Found
3 years from
Date of
Arrest
Conviction
or Arrest {if
No
Conviction)
+ 2 years
5 years
Expiration of
Appeals
Period for
Crime
2 years
§QyeaFS
Offender is
18 Years ,,
Old
Until Found
3yearsfrom
Dateof ··
Arrest ,
,,. 6onv1ctron''
'or Arrestllf Yes:
•. . No •. . Before
Conviction}' Disposition
••· +2years
' . . ':
.,,,
5,years::
'
Expiration 'of
1 Appeal~ f
Period for: ::
CHme· ... '.:ii.
CITY OF BALDWIN PARK, CA. ©2003 Gladwell Governmental Services, Inc. - all rights reserved Do not duplicate or distribute without prior written pennission from GGS (909) 337-3516 Mag, Mfr,
OD. Ppr
Mag, Mfr,
OD, Ppr
Mag, Mfr,
OD, Ppr
Mag, Mfr,
OD. Ppr
Mag, Mfr.
OD, Ppr
Mag, Mfr,
OD, Ppr
Ppr
Ma9, Mfr,
OD, 121:)F
fill
fill
S / I
S/1
fill
S/ I
Yes: After !(Courts and other Aaencies "Shall"
QC & OD destroy); H&S§ 11361.5 et seq.,
11357{e)
Yes: After Department Preference; GC
QC & OD §34090
Individual petitions District
Yes: After Attorney; PD concurs that person
QC & OD is factually innocent, then seals
record; GC §34090; PC §851.B(a)
Yes: After If no subsequent conviction
QC & OD ("Shall" Destroy): H&S § 11361 . 5
Department Preference;
Yes: After Registration is required for 5
QC & OD years; GC §34090, H&S §11590 et
seq., H&S §11594(a)
y . Aft See appropriate Crime Report;
J,~· & <if-Statute of Limitations is 1 year for
-4--yeaF property seized by officers; CCP
§340(4); GC §34090
GC §34090 et seq.
Yes: Mer Del:)artmeRt llrefereRee; § 34090
4---yeaF ekeet-
Adopted: 09/01/2004
Revised:
Ver. 7.0 RECORDS RETENTION SCHEDULE: POLICE Page PD-10
Office of Classification Records Description Retention / Disposition Comments / Reference Record OR File Number Image: Destroy
Active Inactive Total
.·
Media !=Import Paper (Citations to the law are for reference (OFR) (in office) (Off-site, Retention Vital? Options M=Mfr after only and not to be deemed binding on OD or Mfr) S=Scan Imaged & the City)
.. .. Or.:'d?
If the record is not listed here, refer to the Retention for Citv-Wide Standards Litiaation, claims, comolaints and/or federal investiaations susoend normal retention oeriods (retention beains after settlement).
Liti_qation, claims, complaints audits oendina oublic records reauests and/or fefleFal investiaations susoend normal retention J eriods (retention resumes after settlement).
Miscellaneous Non-criminal
Police PD-038 Reports (impounded vehicles, 2 years 2.years .. etc.)
Police PD-039 Order after Hearing (restraining Life of the Life of the order) Order Order
I·
Police PD-040 Pawn Slips 2 years 2 years
Follows Follows
Police PD-041 Photos: Mug Shots Retention of Retention of Crime Crime
Report Reoort
SEALED RECORDS:
Per Court Per Court
Sealed Juvenile and Ward Order Order
Cases - Excegt those with Child (Subject 26 (Subject26 Police PD-033 Abuse or Severe Neglect, years old/ years old I' (Substantiated}, outstanding Sealing date Sealing Date
stolen i:;1rogertv, including + 5 years) +5 years).
firearms, or lost firearms ..
Registrant Registrant ·•
Moves Out Moyes out·
Police PD-042 Sex Offender Registrations: of City+ 5 o{City+,5_ Adults years, QL years.or '
Death of ··Death of•
Registrant Reoistranf'.
CITY OF BALDWIN PARK, CA. ©2003 Gladwell Governmental Services, Inc. - all rights reserved Do not duplicate or distribute without prior written permission from GGS (909) 337-3516 Ppr
Mag
Ppr
Yes: After Mag, Mfr, S/1 QC&OD OD, Ppr -4-yeaf
Yes: After Mag, Mfr,
OD, Ppr SI I QC&OD
-4-yeaf
Mag, Ppr
GC §34090
Court records; GC §34090 et seq.
Department Preference to provide
information to other agencies; Non
records used for investigations;
Originals entered into the State
Automated Property System; most
agencies retain for 2 years; GC
§34090
Department Preference; GC
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subseguentoffenses; Pursuant to
PC §290 et seq.
Adopted: 09/01/2004
Revised:
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CITY OF BALDWIN PARK, CA. ©2003 Gladwell Governmental Services, Inc. - all rights reserved Do not duplicate or distribute without prior written permission from GGS (909) 337-3516 Mag, Ppr
Mag, Ppr
Mag, Ppr
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2021 Offenders can oetition Court
for removal 10 or 20 years after
offense, provided there are no
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PC §290 et seq.; It: FeleaseEl fFem
CYA, reeeFEls are ElestmyeEl afteF
age 26 eF sealing pursuant te W&I
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Department Preference; GC
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Department Preference; GC
§34090 et seq.
Adopted: 09/01/2004
Revised:
STAFF REPORT
ITEM NO. _____8_____
TO: Honorable Mayor and Members of the City Council
FROM: Manuel Carrillo, Director of Recreation and Community Services
Ron Garcia, Director of Community Development
DATE: September 6, 2023
SUBJECT: Approval to Consider Second Amendment to the Service Agreement for Consultant Services by and between the
City of Baldwin Park and Kingdom Causes, dba City Net
SUMMARY
The purpose of this report is for the City Council to consider the approval of the second amendment to the service agreement for consultant services by and between the City of Baldwin Park and Kingdom Causes, dba City Net to operate Serenity Homes for one (1) year and continue serving fifty (50) beds of interim housing for families experiencing homelessness at Serenity Homes from September 23, 2023, to September 22, 2024.
RECOMMENDATION
It is recommended that the City Council:
1) Approve the second amendment to the service agreement for consultant services by and between the City of Baldwin Park and Kingdom Causes, dba City Net in the total amount of $1,165,677.35 to operate Serenity Homes for one (1) year and continue serving fifty (50) beds of interim housing for families experiencing homelessness at Serenity Homes from September 23, 2023, to September 22, 2024; and
2) Authorize the Mayor to execute the second amendment to the service agreement; and 3) Authorize the Director of Finance to appropriate and make the necessary budget adjustments; and
4) Authorize the Director of Recreation & Community Services to process the necessary documents associated with this service agreement contract.
FISCAL IMPACT
There is no fiscal impact to the General Fund at this time. Staff will apply to amend the City of Baldwin Park’s Permanent Housing Allocation Program (PLHA) for funding years 2020 through 2023 with the California Department of Housing and Community Development.
Los Angeles County Measure H - Administered by LAHSA $527,040.00 Los Angeles County - Administered by LAHSA $181,942.00 Homeless Housing Pilot Program HHPP (from available balance account #270-50- 000-41950-55023)
$270,000.00
Permanent Housing Allocation Program (PLHA) Entitlement and Non-Entitlement Local Government Formula
$186,695.35
Total Funding $1,165,677.35
BACKGROUND
A At their August 17, 2022, City Council meeting, City Council approved the acceptance of a service agreement for consultant services by and between San Gabriel Valley Regional Housing Trust and Kingdom Causes, dba City Net and the City of Baldwin Park to operate the non-congregate bridge housing site for families experiencing homelessness at Serenity Homes. The Term agreement has an option to extend up to two (2) additional one -year terms by giving the consultant at least thirty (30) days written notice prior to the expiration of the Term or any extension thereof.
To continue the operations at Serenity Homes for one (1) year from September 23, 2023, to September 22, 2024, City staff secured the financial support from Los Angeles County Measure H in the amou nt of $527,040 which will be administered by LAHSA; with an additional allocation from Measure H of $197,763- minus (8% LAHSA administrative fee) for a total of $181,942. LAHSA is in the process of conducting a cost analysis on the true cost of operating interim housing programs, which may result in an amendment during the contract term to reflect those changes in funding.
The City of Baldwin Park will utilize the unspent funds from fund 270 (from balance available in account #270-50-000-41950-55023) $270,000 from operations support of the site for year one (1) of the Homeless Housing Pilot Program HHPP grant for operations support of the site for year two (2).
Lastly, staff will apply to amend the City of Baldwin Park’s 5-year Permanent Housing Allocation Program (PLHA) with the California Department of Housing and Community Development (HCD). The funding allocation plan covers years 2019-2023. The amendment would include Activity 6 of eligible expenditures to include operating costs of Esperanza Villa and Serenity Homes. The amendment would apply funding requests for years 2020 through 2023. Staff present the amendment plan and application to the City Council for consideration prior to submitting to HCD in October 2023. If PLHA funding is not approved, General Fund support may be required in the amount of $186,695.35.
Staff is seeking City Council consideration to approve the second amendment to the service agreement for consultant services by and between the City of Baldwin Park and Kingdom Causes, d ba City Net to operate Serenity Homes for one (1) year and continue serving fifty (50) beds of interim housing for families experiencing homelessness at Serenity Homes from September 23, 2023, to September 22, 2024 in the total amount of $1,165,677.35 to meet the demands of the site per the first year of pilot period operations, the service agreement contract.
The non-congregate shelter at Serenity Homes has been a pivotal tool in getting local families off the street of Baldwin Park and into temporary housing where they have actively worked in their housing plans to become document-ready while transitioning into permanent housing. If approved, families will continue to be provided with on -site services such as case management, three meals per day, and 24 -hours security among other wrap -around and special event services. Serenity Homes has become a regional, County and national best-practice site for interim housing.
ALTERNATIVES
The alternative would be not to accept the funds to extend the service contract and provide residents a thirty 30-day exit plan; and provide staff alternative direction.
LEGAL REVIEW
This report has been reviewed and approved by the City Attorney as to legal form and content.
ATTACHMENTS
1. Assignment of Agreement between the San Gabriel Valley Regional Housing Trust and the Kingdom Causes, DBA City Net and City of Baldwin Park.
2. Second Amendment to Service Agreement.
3. Attachment 1 Compensation as Amendment to Exhibit “B”. 1 1732415.1
ASSIGNMENT OF
AGREEMENT FOR CONSULTANT SERVICES
BY AND BETWEEN
SAN GABRIEL VALLEY REGIONAL HOUSING TRUST
AND
KINGDOM CAUSES, DBA CITY NET
AND
CITY OF BALDWIN PARK
This assignment of the Agreement to operate a non- congregate bridge housing site for families experiencing homelessness (“Assignment”) is entered into by and between the San Gabriel Valley Council of Governments (the “ SGVRHT”), Kingdom Causes, dba City Net, a California Corporation (“Consultant”) and the City of Baldwin Park , a municipal corporation (“City”) and is dated to be effective as of August 17, 2022 (“ Effective Date ”). SGVRHT, Consultant and City are collectively referred to herein as the Parties.
RECITALS
A. SGVRHT entered into an a greement dated August 3, 2022, with Consultant (the “Operational Agreement”) to operate and maintain a non- congregate bridge housing site for families experiencing homeless ness located within the City of Baldwin Park (“Housing Site”) and subsequent thereto issued Amendment No. 1 (collectively, the Operational Agreement and Amendment No. 1 are referenced herein as the “Agreement”) to Consultant to begin providing the services set forth therein.
B. SGVRHT entered into an agreement with the City dated February 16, 2022, setting forth the SGVRHT’s and the City’s respective obligations with respect to ownership, operation, and maintenance of the Housing Site.
C. The Parties have determined that it would be more efficient and beneficial in operating the Housing Site if the City and Consultant were in a direct contractual relationship. Section 13 of the Operational Agreement provides the SGVRHT may assign the Operational Agreement to the City.
D. It is the desire of the Parties to assign the Agreement to the City upon the terms and conditions set forth herein.
NOW THEREFORE, based on the above, the Parties agree as follows:
1. DEFINED TERMS . Except as otherwise defined herein, all capitalized terms used herein shall have meanings set forth for such terms in the Agreement.
2. ASSIGNMENT. The Parties individually and collectively agree as follows: (a) under the terms hereunder, SGVRHT assigns the Agreement , which is a ttached hereto as Exhibit “A”, and incorporated herein by reference, to the City; (b) the City accepts the A ssignment under the terms hereunder; and (3) Consultant approves such A ssignment under the terms hereunder. In accepting this Assignment, the City shall assume all SGVRHT rights, duties and obligations arising under the Agreement. The Parties represent that they have thoroughly familiarized themselves with and examined DocuSign Envelope ID: 478DC013-8E9D-4729-9E9F-7F0FBFFCF70F 2 1732415.1
the Agreement and this Assignment , understand their contents and ha ve the expertise and ability to implement the Agreement and Assignment as provided herein.
3. P AYMENT OF WORK PERFORMED. The Parties understand that prior to the effective date of this Assignment that Consultant performed services under the Agreement. In accepting this Assignment, Consultant agrees to invoice City for any such services in accordance with the Agreement and to look only to the City for payment and City agrees to pay Consultant for those services as set forth in the Agreement.
4. NO TICES. All notices required or permitted to be given under the Agreement and this Assignment shall be in writing and be personally delivered, or sent by facsimile, or overnight delivery service or certified mail, postage prepaid and return receipt requested, addressed as follows:
To SGVRHT:
With a copy to:
To Consultant:
To
City:
Marisa Creter
Executive Director
San
Gabriel Valley Regional Housing Trust
1000 S. Fremont Avenue, Unit 42 Building
A-10N, Suite 10-210
Alhambra, CA 91803
Telephone: (626) 457-1800
David A. DeBerry
General Counsel
SGVRHT
c/o Woo
druff, Spradlin & Smart
555 Anton Boulevard, Suite 1200
Costa Mesa,
California 92626 Telephone:
(714) 415-1088
Attn: Brad Fieldhouse, Executive Director
Kingdom Causes, dba City Net
4508 Atlantic
Avenue, Suite 292
Long Beach, CA 90807
Manuel Carrillo
Director of Recreation & Community Services
City of Baldwin Park
14 403 E. Pacific Avenue
Baldwin Park, CA 91706
5. E NTI RE AGREEMENT. This Assignment and the Agreement contain the entire, complete, final and exclusive expression of the Parties with respect to the matters addressed therein and supersedes all other agreements or understandings, whether oral or written, or entered into between SGVRHT, Consultant and City. No statements, representations , or other agreements, whether oral or written, made by any party which are not embodied herein shall be valid and binding. No amendment to this Assignment shall be valid and binding unless in writing duly executed by the P arties an d their DocuSign Envelope ID: 478DC013-8E9D-4729-9E9F-7F0FBFFCF70F 3 1732415.1
authorized representatives. Any attempt to waive the requirement for a written amendment shall be void.
IN WITNESS WHEREOF, the Parties hereto have caused this Assignment to be effective as of the Effective Date.
SAN GABRIEL VALLEY REGIONAL
HOUSING TRUST
B y: _____________________________
N ame: Marisa Creter
CITY OF BALDWIN PARK
By:
Name: Emmanuel Estrada
Title: Mayor Title: Executive Director
Dat e:
APP
ROVED AS TO FORM:
By:
Nam e: David DeBerry, General Counsel
Date:
APPROVED AS TO FORM:
By:
Name:
Marco A. Martinez, City Attorney
B
est Best & Krieger LLP
KINGDOM CAUSES, DBA CITY NET
By:
Name: Brad Fieldhouse
Title: Executive Director
Date:
DocuSign Envelope ID: 478DC013-8E9D-4729-9E9F-7F0FBFFCF70F 12/22/2022
12/19/2022
12/22/2022
4 1732415.1
EXHIBIT A
AGREEMENT (INCLUDES AMENDMENT NO. 1)
DocuSign Envelope ID: 478DC013-8E9D-4729-9E9F-7F0FBFFCF70F
AGREEMENT NO. RHT 22-19 Page 1 of 17
PROFESSIONAL SERVICES AGREEMENT
SAN GABRIEL VALLEY REGIONAL HOUSING TRUST
AGREEMENT 22-19
FOR
FAMILY BRIDGE HOUSING SERVICE PROVIDER
WITH
KINGDOM CAUSES, DBA CITY NET
This Agreement for Consultant Services (“Agreement”) is made and entered by and between the San Gabriel Valley Regional Housing Trust (“SGVRHT”) and Kingdom Causes, dba City Net (“Consultant”), a California Corporation.
In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows:
1. S cope of Services.
Subject to the terms and conditions set forth in this Agreement, Consultant shall provide to the reasonable satisfaction of the SGVRHT, the services set forth in the attached Exhibit "A", which is incorporated herein by this reference. As a material inducement to the SGVRHT to enter into this Agreement, Consultant represents and warrants that it has thoroughly investigated the work and fully understands the difficulties and restrictions in performing the work. Consultant represents that it is fully qualified to perform such consulting services by virtue of its experience and the training, education and expertise of its principals and employees.
Exhibit “A” describes the total Scope of Services that the SGVRHT anticipates it may assign to Consultant over the term of the Agreement. Consultant is only authorized to undertake services as directed by SGVRHT’s Project Manager. It is understood and agreed that the total Scope of Services is only an estimate and that the actual services ultimately required of Consultant by SGVRHT may be less than the Scope of Services. Further, it is understood and agreed that the SGVRHT makes no guarantee, either express or implied, as to the actual services that will be authorized under this Agreement.
It is understood that Consultant shall coordinate its services hereunder with the Brielle Acevedo, SGVRHT’s Project Manager, to the extent required by the SGVRHT’s Project Manager, and that all performances required hereunder by Consultant shall be performed to the satisfaction of the SGVRHT’s Project Manager and Executive Director.
Except as otherwise authorized by the SGVRHT's Project Manager, Jessica Bruce, Consultant’s Project Manager , shall be the person who primarily performs the work provided under this Agreement. Except as provided in this Agreement, Consultant reserves the right to determine the assignment of its own employees to the performance of Consultant's services under DocuSign Envelope ID: 2B7DDDE8-8021-4CC1-8B41-4A88D6900151 DocuSign Envelope ID: 478DC013-8E9D-4729-9E9F-7F0FBFFCF70F
AGREEMENT NO. RHT 22-19 Page 2 of 17
this Agreement, but SGVRHT reserves the right in its sole discretion to require Consultant to exclude any employee from performing services on SGVRHT's premises.
2. Term of Agreement.
This Agreement shall take effect August 3, 2022, and shall continue until September 30, 2022 ("Term"), unless earlier terminated pursuant to the provisions herein. SGVRHT’s Executive Director shall have the option to extend this Agreement, up to two additional one -year terms by giving Consultant at least thirty (30) days written notice prior to the expiration of the Term or any extension thereof. Any extended term shall be subject to the same terms and conditions contained herein; provide that Consultant and SGVCOG shall negotiate any increase in Consultant’s hourly rate, but in no event shall the increase exceed the lesser of 3% or the amount the Consumer Price Index (“CPI”) for the Los Angeles -Anaheim-Riverside metropolitan area for the month immediately preceding the adjustment date (the “Index Month”) as reported by the Uni ted States Bureau of Labor Statistics.
3. Compensation and Method of Payment.
(a) This agreement will be a time and materials contract, and the Consultant shall be paid for its services performed to the satisfaction of SGVRHT in the manner and in the amounts set forth in Exhibit “B”. Consultant shall be reimbursed without markup for the cost of all reasonable and necessary business expenses that are incurred in performing the services covered by this Agreement and that can be supported by documentation acceptable to the SGVRHT.
(b) The total not -to-exceed compensation for all services performed under this Agreement shall not exceed Fifty Thousand Dollars and 00/100 ($50,000.00), without the parties entering into a written amendment to this Agreement. The above amount shall include all costs, including, but not limited to, any business expenses incurred by Consultant. Notwithstanding the not to exceed amount, Consultant shall only incur such costs as are reasonable and necessary in performing this Agreement in the best interests of the SGVRHT. If at any time Consultant estimates the cost of performing the services will be exceeded, Consultant shall immediately notify the SGVRHT in writing, stating the estimated amount nece ssary to complete the services under this Agreement. SGVRHT has no obligation to pay any costs incurred by Consultant in excess of the not to exceed amount in the absence of an amendment to this Agreement.
(c) Each month Consultant shall furnish to SGVRHT an original invoice for all work performed and expenses incurred during the preceding month. SGVRHT shall independently review each invoice submitted by Consultant to determine whether the work performed and expenses incurred are in accordance with the amounts contained in Exhibit “B” and this Agreement. The invoice shall include the following columns: Project Task, Labor Category, Date, Detailed Comments of Work Performed, Individual Performing the Work and Title, Hourly Rate and Hours. Consultant shall also provide timesheets and receipts as supporting documentation for each invoice. In the event that no charges or expenses are disputed, the invoice shall be approved and paid according to this Section. In the event any charges or expenses are disputed by SGVRHT, SGVRHT shall withhold that portion of the invoice that is in dispute and remit the remainder.
DocuSign Envelope ID: 2B7DDDE8-8021-4CC1-8B41-4A88D6900151 DocuSign Envelope ID: 478DC013-8E9D-4729-9E9F-7F0FBFFCF70F
AGREEMENT NO. RHT 22-19 Page 3 of 17
(d) Except as to any charges or expenses disputed by SGVRHT, SGVRHT will use its best efforts to cause Consultant to be paid within thirty (30) days of receipt of Consultant's invoice meeting the requirements herein.
4. Priority of Documents.
This Agreement and any attached Exhibits or documents incorporated herein by reference are intended to describe the Parties complete agreement, however, in the event of any conflict with the provisions of this Agreement and the attached Exhibits or documents, this Agreement shall control.
5. Consultant's Books and Records.
Consultant shall maintain all documents and records demonstrating or relating to Consultant's performance of services pursuant to this Agreement. Consultant shall maintain all ledgers, books of account, invoices, vouchers, canceled checks, or other documents or records evidencing or r elating to work, services, expenditures and disbursements charged to SGVRHT pursuant to this Agreement. All such documents or records shall be maintained in accordance with generally accepted accounting principles and shall be sufficiently complete and detailed so as to permit an accurate evaluation of the services provided by Consultant pursuant to this Agreement. All such documents or records shall be maintained for three (3) years from the date of execution of this Agreement and to the extent required by laws relating to audits of SGVRHT and its expenditures.
6. Ownership of Documents.
All original maps, models, designs, drawings, photographs, studies, survey, reports, data, notes, computer files, files and other documents prepared, developed or discovered by Consultant in the course of providing any services pursuant to this Agreement shall be the sole property of the SGVRHT and may be used, reused or otherwise disposed of by the SGVRHT without the permission of the Consultant. Upon satisfactory completion of, or in the event of expiration, termination, suspension, or abandonment of this Agreement, Consultant shall turn over to SGVRHT all such maps, models, designs, drawings, photographs, studies, surveys, reports, data, notes, computer files, files and other documents which Consultant may have prepared for use in performing services hereunder. With respect to computer files, Consultant shall make available to the SGVRHT, upon reasonable written request by the SGVRHT, the necessary computer software and hardware for purposes of accessing, compiling, transferring and printing computer files.
Consultant shall have no liability for SGVRHT’s reuse of maps, models, designs, drawings, photographs, studies, survey, reports, data, notes, computer files, files and other documents produced under this Agreement or modifications thereof for any purpose other than those authorized under this Agreement without the written authorization of Consultant.
7. Status of Consultant.
Consultant is and shall at all ti mes remain a wholly independent contractor and not an officer, employee or agent of SGVRHT. Consultant shall have no authority to bind SGVRHT in any manner, nor to incur any obligation, debt or liability of any kind on behalf of or against DocuSign Envelope ID: 2B7DDDE8-8021-4CC1-8B41-4A88D6900151 DocuSign Envelope ID: 478DC013-8E9D-4729-9E9F-7F0FBFFCF70F
AGREEMENT NO. RHT 22-19 Page 4 of 17
SGVRHT, whether by contract or otherwise, unless such authority is expressly conferred under this Agreement or is otherwise expressly conferred in writing by SGVRHT.
The personnel performing the services under this Agreement on behalf of Consultant shall at all times be under Consultant's exclusive direction and control. Neither SGVRHT, nor any elected or appointed boards, officers, officials, employees, members or agents of SGVRHT, shall have control over the conduct of Consultant or any of Consultant's officers, employees or agents, except as set forth in this Agreement. Consultant shall not at any time or in any manner represent that Consultant or any of Consultant's officers, employees or agents are in any manner officials, officers, employees, members or agents of SGVRHT.
Notwithstanding any other agency, state or federal policy, rule, regulation, law or ordinance to the contrary, Consultant and any of its employees, agents, and subcontractors providing service under this Agreement shall not qualify for or become entitled to, and hereby agree to waive any claims to, any compensation, benefit, or any incident of employment by SGVRHT, including but not limited to eligibility to enroll in the Public Employees Retirement System as an employee of SGVRHT.
In the event that Consultant or any employee, agent, or subcontractor of Consultant providing services under this Agreement claims or is determined by an authority having jurisdiction over SGVRHT, to not be a wholly independent contractor, then Consultant shall indemnify and reimburse SGVRHT for any costs, including attorneys’ fees, that SGVRHT incurs arising out of such claim or determination including, but not limited to, any benefits SGVRHT is required to provide, or payroll taxes or Workers” Compensation claims it is required to pay, as well as for the payment of any penalties and interest on such contributions.
8. Deficient Services.
Consultant represents and warrants that it has the qualifications, experience and facilities necessary to properly perform the services required under this Agreement in a thorough, competent and professional manner. Consultant shall at all times faithfully and competently, perform all services described herein. In meeting its obligations under this Agreement, Consultant shall employ, at a minimum, generally accepted standards and practices utilized by persons engaged in providing services similar to those required of Consultant under this Agreement. SGVRHT may disapprove services that do not conform to these standards and practices and may withhold or deny compensation for deficient services. Upon disapproval of services by SGVRHT, Consultant shall immediately re-perform, at its own costs, the services that are deficient. SGVRHT shall endeavor to notify Consultant in writing of the existence of such deficient services in a timely manner, although its failure to do so shall not affect any remedy it may have under this Agreement or at law with respect to such deficient services. No approval, disapproval, or omission to provide approval or disapproval shall release Consultant from any responsibility under this Agreement.
9. Compliance with Applicable Laws; Permits and Licenses.
Consultant shall keep itself informed of and comply with all applicable federal, state and local laws, statutes, codes, ordinances, regulations and rules in effect during the term of this Agreement. Consultant shall obtain any and all licenses, permits and authorizations necessary to perform the services set forth in this Agreement. Neither SGVRHT, nor any elected or appointed DocuSign Envelope ID: 2B7DDDE8-8021-4CC1-8B41-4A88D6900151 DocuSign Envelope ID: 478DC013-8E9D-4729-9E9F-7F0FBFFCF70F
AGREEMENT NO. RHT 22-19 Page 5 of 17
boards, officers, officials, employees, members or agents of SGVRHT, shall be liable, at law or in equity, as a result of any failure of Consultant to comply with this Section.
10. Nondiscrimination.
A. Consultant shall not discriminate as to race, color, creed, religion, sex, marital status, national origin, ancestry, age, physical or mental handicap, medical condition, or sexual orientation, in the performance of its services and duties pursuant to this Agreement, and will comply with all rules and regulations of SGVRHT relating thereto. Such nondiscrimination shall include, but not be limited to, the following: employment; upgrading; demotion; transfers; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship.
B. Consultant will, in all solicita tions or advertisements for employees placed by or on behalf of Consultant in performing this Agreement, state either that it is an equal opportunity employer or that all qualified applicants will receive consideration for employment without regard to race, color, creed, religion, sex, marital status, national origin, ancestry, age, physical or mental handicap, medical condition, or sexual orientation.
C. Consultant will cause the foregoing provisions to be inserted in all subcontracts for any work covered by this Agreement except contracts or subcontracts for standard commercial supplies or raw materials.
11. Unauthorized Aliens.
Consultant hereby promises and agrees to comply with all of the provisions of the Federal Immigration and Nationality Act, 8 U.S.C.A. § 1101 et seq ., as amended, and in connection therewith, shall not employ unauthorized aliens as defined therein. Should Consultant employ such unauthorized aliens for the performance of services covered by this Agreement, and should any liability or sanctions be imposed against SGVRHT for such use of unauthorized aliens, Consultant hereby agrees to and shall reimburse SGVRH T for the cost of all such liabilities or sanctions imposed, together with any and all costs, including reasonable attorney fees, incurred by SGVRHT.
12. Conflicts of Interest.
Consultant covenants that neither it, nor any officer or principal of its firm, has or shall acquire any interest, directly or indirectly, (but not including ownership of stock in a publicly traded company), which would conflict in any manner with the interests of SGVRHT or which would in any way hinder Consultant's performance of services under this Agreement. Consultant further covenants that in the performance of this Agreement, no person having any such interest shall be employed by it as an officer, employee, agent or subcontractor without the express written consent of the SGVRHT. Consultant agrees to at all times avoid conflicts of interest or the appearance of any conflicts of interest with the interests of SGVRHT in the performance of this Agreement.
DocuSign Envelope ID: 2B7DDDE8-8021-4CC1-8B41-4A88D6900151 DocuSign Envelope ID: 478DC013-8E9D-4729-9E9F-7F0FBFFCF70F
AGREEMENT NO. RHT 22-19 Page 6 of 17
13. Assignment.
The expertise and experience of Consultant are material considerations for this Agreement.
SGVRHT has an interest in the qualifications of and capability of the persons and entities who will fulfill the duties and obligations imposed upon Consultant under this Agreement. In recognition of that interest, Consultant shall not assign or transfer any of its duties or obligations under this Agreement or any portion thereof, without the prior written consent of the SGVRHT. Any attempted assignment shall be ineffective, null and void, and constitute a materia l breach of this Agreement entitling SGVRHT to any and all remedies at law or in equity, including summary termination of this Agreement.
14. Indemnification.
To the greatest extent permitted by California Civil Code section 2782.8, Consultant shall indemnify, defend with counsel approved by SGVRHT, and hold harmless SGVRHT, its member agencies, the City of Baldwin Park, and their respective officers, officials, employees and volunteers ("Indemnitees") from and against all liability, loss, damage, expense, cost (including without limitation reasonable attorneys' fees, expert fees and all other costs and fees of litigation ) of every nature arising out of or in connection with:
(1) Any and all claims under Workers’ Compensation Act and other employee benefit acts with respect to Consultant’s employees or Consultant’s contractor’s employees arising out of Consultant’s work under this Agreement; and
(2) Any and all claims arising out of Consultant's performance of work hereunder or its failure to comply with any of its obligations contained in this Agreement, regardless of SGVRHT’s passive negligence, but excepting such loss or damage which is caused by the sole active negligence or willful misconduct of the SGVRHT. Should SGVRHT in its sole discretion find Consultant’s legal counsel unacceptable, then Consultant shall reimburse the SGVRHT its costs of defense, including wi thout limitation reasonable attorneys' fees, expert fees and all other costs and fees of litigation. The SGVRHT shall promptly pay any final judgment rendered against the Indemnitees. It is expressly understood and agreed that the foregoing provisions are intended to be as broad and inclusive as is permitted by the law of the State of California and will survive termination of this Agreement. Except for the Indemnitees, this Agreement shall not be construed to extend to any third-party indemnification rights of any kind.
(3) The Consultant's obligations to indemnify, defend and hold harmless the Indemnitees shall survive termination of this Agreement.
15. Insurance.
Without limiting its obligations pursuant to this Agreement, Consultant shall procure and maintain, at Consultant’s own cost and expense and for the duration of this Agreement, the DocuSign Envelope ID: 2B7DDDE8-8021-4CC1-8B41-4A88D6900151 DocuSign Envelope ID: 478DC013-8E9D-4729-9E9F-7F0FBFFCF70F
AGREEMENT NO. RHT 22-19 Page 7 of 17
insurance coverage as set forth herein. All insurance policies shall be subject to approval by SGVRHT as to form and content. These requirements are subject t o amendment or waiver if so approved in writing by the SGVRHT. Insurance is to be placed with insurers with a current A.M.
Best's rating of no less than A -VII. Consultant shall provide the following scope and limits of insurance:
15.1 Minimum Scope of Insurance . Coverage shall be at least as broad as:
Insurance Services Office form Commercial General Liability coverage (Occurrence Form CG 0001).
Insurance Services Office form number CA 0001 (Ed. 1/87) covering Automobile Liability, including code 1 "any auto" and endorsement CA 0025, or equivalent forms subject to the written approval of the SGVRHT.
Workers' Compensation insurance if and as required by the California Labor Code and Employer's Liability insurance covering all persons providing services on behalf of the Consultant and all risks to such persons under this Agreement.
Professional liability insurance appropriate to the Consultant's profession.
15.2 Limits of Insurance. Consultant shall maintain limits of insurance no less than:
General Liability: $1,000,000 minimum limit written on an occurrence basis for bodily injury, death and property damage.
Automobile Liability: $1,0 00,000 minimum limit written on an occurrence basis for bodily injury, death and property damage.
Workers' Compensation and Employer's Liability: Workers' Compensation as required by the Labor Code of the State of California and Employers Liability limits of $1,000,000 per accident.
Professional Liability: $1,000,000 minimum limit per claim. If such insurance is on a claims-made basis, Consultant agrees to keep such insurance in full force and effect for at least three years after termination or date of completion of this Agreement.
15.3 Other Provisions. Insurance policies required by this Agreement shall contain the following provisions:
15.4 All Policies. Each insurance policy required herein, other than professional liability shall provide that the coverage shall not be non-renewed, cancelled or reduced by the insurer or Consultant except after at least ten (10) days' prior written notice by Certified mail, return receipt requested, has been given to SGVRHT. As soon as Consultant becomes aware, it shall provide to SGVRHT notice of suspension or voiding of any coverage or reduction in coverage which results in Consultant not meeting the minimum requirements set forth in this Agreement.
DocuSign Envelope ID: 2B7DDDE8-8021-4CC1-8B41-4A88D6900151 DocuSign Envelope ID: 478DC013-8E9D-4729-9E9F-7F0FBFFCF70F
AGREEMENT NO. RHT 22-19 Page 8 of 17
15.5 General Liability and Automobile Liability Coverages. The Indemnitees shall be named as additional insureds on all policies of general liability, property damage, and automotive liability insurance for all work performed by Consultant under this Agreement. The coverage shall contain no special limitations on the scope of protection afforded to Indemnitees.
Consultant's insurance coverage shall be primary insurance with respect to the Indemnitees. Any insurance or self-insurance maintained by the Indemnitees.
Consultant's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability.
Any failure to comply with the reporting or other provisions of the policies including breaches of warranties shall no t affect coverage provided to SGVRHT, and its respective elected and appointed officers, officials, members or employees.
15.6 Workers' Compensation and Employer's Liability Coverage . Unless the SGVRHT otherwise agrees in writing, the insurer shall agree to waive all rights of subrogation against the Indemnitees for losses arising from services performed by Consultant.
15.7 Other Requirements. Consultant agrees to deposit with SGVRHT, at or before the performance of any services under this Agreement, certificates of insurance and additional insured endorsements or a copy of the policy evidencing same, necessary to satisfy SGVRHT that Consultant has complied with the insurance provisions of this Agreement. The certificates and endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. SGVRHT reserves the right to inspect complete, certified copies of all required insurance policies, at any time.
Consultant shall include all subcontractors, if any, as insureds under its policies or furnish separate certificates and endorsements from each subcontractor evidencing the same minimum coverage requirements that Consultant must provide.
Any deductibles or self-insured retentions must be declared to and approved by SGVRHT, such approval not to be unreasonably withheld.
All policies of insurance, except professional liability insurance, shall be issued by an insurance company which is authorized to do business in the State of California or is otherwise approved in writing by SGVRHT.
16. Termination of Agreement.
Notwithstanding anything to the contrary herein, SGVRHT may terminate this Agreement, with or without cause, at any time by giving thirty (30) days’ written notice of termination to Consultant. In the event such notice is given, Consultant shall cease imm ediately all work in progress, unless the notice provides otherwise, except those services necessary to effectuate the termination. Upon termination of this Agreement, Consultant shall furnish to SGVRHT a final DocuSign Envelope ID: 2B7DDDE8-8021-4CC1-8B41-4A88D6900151 DocuSign Envelope ID: 478DC013-8E9D-4729-9E9F-7F0FBFFCF70F
AGREEMENT NO. RHT 22-19 Page 9 of 17
invoice for work performed and expenses incurred by Consultant, as required by this Agreement.
SGVRHT shall not be liable for any claim of lost profits.
17. Default.
In the event either party defaults in its obligations hereunder, the non-defaulting party may declare a default by written notice to the defaulting party. The notice shall specify the basis for the default and the cure, which cure shall be implemented within thirty (30) days of the date of the notice or such longer time as may be provided in the notice. If cure is not made within the time provided in the notice, then this Agreement shall terminate and the non-defaulting party shall have all remedies available under this Agreement and the law.
18. Notices.
All notices required or permitted to be given under this Agreement shall be in writing and shall be personally delivered, or sent by facsimile or certified mail, postage prepaid and return receipt requested, addressed as follows:
To SGVRHT: Marisa Creter, Executive Director
San Gabriel Valley Regional Housing Trust
1000 S. Fremont Avenue
Suite 10- 210
Alhambra, CA 91803
with a copy to: David DeBerry, SGVRHT General Counsel Woodruff, Spradlin & Smart
555 Anton Blvd., Suite 1200
Costa Mesa, CA 92626
To Consultant: Brad Fieldhouse, Executive Director
Kingdom Causes, dba City Net
4508 Atlantic Avenue, Suite 292
Long Beach, CA 90807
Notice shall be deemed effective on the date personally delivered or transmitted by facsimile or, if mailed, three (3) days after deposit of the same in the custody of the United States Postal Service.
19. Binding Effect.
This Agreement shall be binding upon the heirs, executors, administrators, successors and assigns of the parties.
20. Waiver.
Waiver by any party to this Agreement of any term, condition, or covenant of this Agreement shall not constitute a waiver of any other term, condition, or covenant. Waiver by any DocuSign Envelope ID: 2B7DDDE8-8021-4CC1-8B41-4A88D6900151 DocuSign Envelope ID: 478DC013-8E9D-4729-9E9F-7F0FBFFCF70F
AGREEMENT NO. RHT 22-19 Page 10 of 17
party of any breach of the provisions of this Agreement shall not constitute a waiver of any other provision, nor a waiver of any subsequent breach or violation of any provision of this Agreement.
Acceptance by SGVRHT of any work or services by Consultant shall not constitute a waiver of any of the provisions of this Agreement.
21. Law to Govern; Venue.
This Agreement shall be interpreted, construed and governed according to the laws of the State of California. In the event of litigation between the parties, venue in state trial courts shall lie exclusively in the County of Los Angeles. In the event of litigation in a U.S. District Court, venue shall lie exclusively in the Central District of California, in Los Angeles.
22. Entire Agreement.
This Agreement, including the exhibits attached hereto, which are incorporated herein by this reference, is the entire, complete, final and exclusive expression of the parties with respect to the matters addressed therein and supersedes all other agreements or understandings, whether oral or written, or entered into between Consultant and SGVRHT prior to the execution of this Agreement.
No statements, representations or other agreements, whether oral or written, made by any party which are not embodied herein shall be valid and binding. No amendment to this Agreement shall be valid and binding unless in writing duly executed by the parties or their authorized representatives. Any attempt to waive the requirement for a written amendment shall be void.
23. Section Headings.
The section headings contained in this Agreement are for convenience and identification only and shall not be deemed to limit or define the contents to which they relate.
24. Severability.
If any term, condition or covenant of this Agreement is declared or determined by any court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions of this Agreement shall not be affected thereby and the Agreement shall be read and construed without the invalid, void or unenforceable provision(s).
25. Time is of the Essence.
Time is of the essence in the performance of this Agreement. As Task Orders are issued, Consultant agrees to commence the work provided therein and to diligently prosecute the work in the time provided in the Task Order, if any.
DocuSign Envelope ID: 2B7DDDE8-8021-4CC1-8B41-4A88D6900151 DocuSign Envelope ID: 478DC013-8E9D-4729-9E9F-7F0FBFFCF70F
AGREEMENT NO. RHT 22-19 Page 11 of 17
26. Delays.
Neither Party shall be liable for damages, including liquidated damages, if any, caused by delay in performance or failure to perform due to causes beyond the control of such Party. Such causes include, but are not limited to, acts of God, acts of the public enemy, acts of fede ral, state or local governments, court orders, fires, floods, epidemics, strikes, embargoes, and unusually severe weather. Consultant’s sole remedy for delays outside its control shall be an extension of time. Consultant must document any delay and request an extension of time in writing at that the time of the delay to the satisfaction of SGVRHT.
[Signature page to follow]
DocuSign Envelope ID: 2B7DDDE8-8021-4CC1-8B41-4A88D6900151 DocuSign Envelope ID: 478DC013-8E9D-4729-9E9F-7F0FBFFCF70F
AGREEMENT NO. RHT 22-19 Page 12 of 17
IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed the day and year first above written.
KINGDOM CAUSES, DBA CITY NET
By______________________________________
Title: ____________________________________
Date: ____________________________________
By______________________________________
Title: ____________________________________
Date: ____________________________________
SAN GABRIEL VALLEY REGIONAL HOUSING TRUST
By______________________________________
MARISA CRETER
Executive Director
Date: ____________________________________
APPROVED AS TO FORM:
________________________________________
DAVID DeBERRY
General Counsel
*NOTE: If Consultant is a corporation, the SGVRHT requires the following signature(s):
-- (1) the Chairman of the Board, the President or a Vice-President, AND (2) the Secretary, the Chief Financial Officer, the Treasurer, an Assistant Secretary or an Assistant Treasurer. If only one corporate officer exists or one corporate officer holds more than one corporate office, please so indicate. OR
-- The corporate officer named in a corporate resolution as authorized to enter into this Agreement. A copy of the corporate resolution, certified by the Secretary close in time to the execution of the Agreement, must be provided to the SGVRHT.
DocuSign Envelope ID: 2B7DDDE8-8021-4CC1-8B41-4A88D6900151 08/08/2022
Secretary
08/06/2022
Executive Director
08/08/2022
DocuSign Envelope ID: 478DC013-8E9D-4729-9E9F-7F0FBFFCF70F EXHIBIT “A”
AGREEMENT NO. RHT 22-19 Page 13 of 17
SCOPE OF SERVICES
Task 1.1 Project Management
City Net will hold kick-off meeting the week of August 8, 2022 and 6 weekly meetings with project team during Plan creation and initial client intake process. City Net will host monthly meetings with project team once the site is operational to discuss onsite service provision, site needs, community feedback, and other operational updates. City Net will also be responsible for providing a monthly report in a format approved by the SGVRHT, SGVCOG, and the City demonstrating aggregate enrollment and exit data and provision of/connection to services. In addition to the monthly reporting, if incidents occur onsite, City and SGVRHT staff will be notified and provided an incident report within 24 hours.
The Consultant will make the site available for tours from SGVRHT, SGVCOG, City s taff, and other parties as requested by either SGVRHT or City staff. Tours will take place on an as needed basis on weekdays between 9AM and 5PM with at least 48-hour notice provided.
Deliverables: Kick-off meeting agenda & meeting notes (1); weekly meeting agendas and notes (6); monthly meeting agendas and meeting notes (12); facilitate onsite tours (as needed)
Task 1.2 Plan Development & Staff Onboarding
City Net will work with the SGVRHT, SGVCOG, and City staff to develop an Operations, Staffing, and Services Plan (Plan) for the site. The Plan should outline how the site will be operated to ensure that all site residents receive the resources that they need to move into permanent housing as quickly as practicable. The Plan should operationalize how City Net will work with stakeholders to maximize participant and program success by balancing on-site services with existing services available through CES, the County of Los Angeles, and the City’s existing services contracts and resources. The Plan should outline roles and responsibilities for onsite staff, as well as how these staff will work with other off-site staff and services. The Plan should also outline the approach to ensure that all needed services are available for the site's participants, and for services not available at the site, where the services can be found and how they would be accessed. For example, the Plan should maximize participant connection to these existing services and strengthen coordination with participants’ existing case managers and housing navigators. City Net should include specific partnership opportunities with additional service providers and agencies in the region providing resources to families experiencing homelessness. City Net should include any additional Plan components required to ensure site safety, provision of family specific services, and other components as recommended by City Net.
Current with the development of the plan, City Net should begin recruiting and onboarding efforts to staff the site by the operations date. Staff must be onboarded prior to September 26, 2022.
The Plan should include the following components at a minimum:
Program Policies and Procedures: Eligibility and Referrals, Program Intake, Program Exit ● Program Eligibility: City Net will develop policies and procedures for identifying eligible participants. The site will serve families experiencing homelessness with a local preference for families with a nexus to Baldwin Park. For this project, families are defined as one or more legal guardians and one or more minor children. Participants must not need DocuSign Envelope ID: 2B7DDDE8-8021-4CC1-8B41-4A88D6900151 DocuSign Envelope ID: 478DC013-8E9D-4729-9E9F-7F0FBFFCF70F EXHIBIT “A”
AGREEMENT NO. RHT 22-19 Page 14 of 17
hospitalization or skilled nursing care. Adult participants must be able to manage Activities of Daily Living (i.e., ability to transfer in and out of a bed, bathe, dress, and address hygiene needs independently). Adult participants should include those with less urgent needs, considered moderate or mid-range acuity, or low acuity (or low to moderate service needs).
Participants must be able to meet any custody, parole, or othe r legal requirements while residing at the site in to be eligible. The Plan’s participant eligibility requirements should aim to maximize the likelihood of success of placing participants into permanent housing. ● Referrals Process: City Net will develop policies and procedures for accepting referrals.
Plan will include accepting referrals from City staff, City public safety teams, City - and SGVCOG-contracted housing navigators, CES -outreach teams, and other CES partners (hereafter referred to as “Partners”) . City Net will work with Partners to prioritize participants living adjacent to the site and those experiencing homelessness in the site's jurisdiction, surrounding jurisdictions, or Service Planning Area (SPA) 3. ● Program Intake: City Net will establish an intake process and procedures. Plan will include ensuring that all participants are enrolled in HMIS and updating information in HMIS.
● Housing and Services Plan: For those participants that do not have one, following intake and assessment, City Net must work with each participant and any case manager and/or housing navigator to develop a Housing and Services Plan. Plan should include existing services to which to connect the participant. If the participant already has a Housing and Services Plan, City Net will work with the participant and their existing housing navigator to update the plan as necessary. City Net will work with the participant and other assigned case managers to complete a monthly update to assess progress towards achieving the goals defined in the Housing and Services Plan.
● Community Rules: City Net will develop policies and procedures for individual family units and communal areas to ensure safety of all participants with particular attention to supervision of children at the site. Each family will be responsible for monitoring their children and City Net will be responsible for confirming each family is aware of the monitoring requirements and rules for communal areas.
● Program Exit: City Net will develop policies and procedures that adhere to best practices for exiting participants from the site. These include striving to move participants out of the Program and into permanent housing as quickly as possible, assisting with reunification services or assisting the participant with self-resolving their housing bridge, and otherwise assisting participants in fulfilling their Housing and Services Plan. The policies and procedures should also establish expectations for lengths of stay and when participants should otherwise be exited from the pr ogram (e.g. not utilizing a unit; hospitalization; incarceration). Plan will include entering exit information into a case note in HMIS and submitting an SGVRHT exit form.
● Safety Concerns: City Net will establish protocols when a participant is deemed a risk to the safety of City Net’s staff or other participants. City Net must have a policy about how to manage the return of participants who are exited due to concerns about the safety of other participants or staff created by the exited participant.
Site Management and Oversight
● Plan will include the following
○ Provision of three meals per client prepared onsite or delivered to the site daily DocuSign Envelope ID: 2B7DDDE8-8021-4CC1-8B41-4A88D6900151 DocuSign Envelope ID: 478DC013-8E9D-4729-9E9F-7F0FBFFCF70F EXHIBIT “A”
AGREEMENT NO. RHT 22-19 Page 15 of 17
■ Meals should include consideration of dietary needs based on resident composition i.e. Baby formula, age appropriate snacks, and frequency based on nutritional needs.
○ 24/7 site staffing and procedures
○ Coordinate with the City to facilitate trash pick-up and regular cleaning of the site and ensure the facility remains sanitary. Trash pick-up will be provided by the City. ○ Maintain site accessibility. City will provide ADA accessible units and paths of travel. City Net will maintain accessible paths of travel and provide reasonable accommodations for the laundry room and other amenities as needed. Coordinate with volunteers and accept and distribute donations as appropriate. ○ Ensure that the site is operated in a way that is consistent with its intended use and ensure that the SGVRHT and the City maintain their warranties on the product.
Should issues arise that prevent City Net from operating the site consistent with expectations, City Net is responsible for notifying the City within twenty-four (24) hours.
○ Ensure that the facility remains sanitary, healthful, and otherwise safe for its intended or actual use.
○ Promptly and appropriately respond to the needs of participants, including referrals to medical, mental health, and other relevant service providers . The plan must include procedures for addressing emergency situations including notifying the SGVRHT and City within twenty-four (24) hours.
Case Management, Housing Navigation, and Connection to Existing Services ● Coordination with Existing Case Managers and Housing Navigators: The Plan will include coordination with participants’ existing case managers and housing navigato rs to facilitate linkage to services and referrals to permanent housing. The Plan will outline how to efficiently coordinate with existing case managers and housing navigators. ● Site-Based Case Management and Housing Navigation: City Net will provide case management services to assist participants in accessing permanent housing through referrals to housing programs, such as Rapid Rehousing, Permanent Supportive Housing, and affordable housing, or assisting the participant in self -resolving their housing bridge.
The Plan will outline how to efficiently provide case management and housing navigation at the site and in collaboration with existing offsite resources. This includes both how clients will be connected to vouchers and how clients will be supporting in securing housing where the vouchers can be used.
● Coordination with Department of Children and Family Services (DCFS): City Net will coordinate with DCFS and other departments to ensure families are in compliance and receive necessary services. City Net will provide site access to these agencies as required. ● Coordination with School District: City Net will coordinate with staff at local schools to meet the needs of children residing at the site.
● Connection to Existing Services: In addition to housing support, case management should include linkage to services, including but not limited to health care, behavioral or mental health services, substance use treatment, employment services, and identifying transportation to those services. City Net is expected to connect participants to existing services in SPA 3 as needed.
Staffing Levels, Qualifications, and Schedule
DocuSign Envelope ID: 2B7DDDE8-8021-4CC1-8B41-4A88D6900151 DocuSign Envelope ID: 478DC013-8E9D-4729-9E9F-7F0FBFFCF70F EXHIBIT “A”
AGREEMENT NO. RHT 22-19 Page 16 of 17
● City Net should detail proposed staffing levels to provide full time case management and housing navigation, 24/7 security staffing, facilitate clients’ needs including showers, meals, and connection to additional services, and provision of 3 meals per day for clients.
Each family will be responsible for mo nitoring their children and City Net will be responsible for confirming each family is aware of the monitoring requirements and rules for communal areas.
Support Securing Additional Funding and Resources
● Plan should maximize connection to programs for which participants are eligible, for example Medicaid/Medi -Cal, Supplemental Security Income (S SI), Supplemental Nutrition Assistance Program (SNAP), and Social Security Disability Insurance (SSDI).
Plan will also include coordination with the SGVRHT, SGVCOG, and City to engage community groups and members by pursuing donations to support the site. This could include donations of food, clothing, funding, or other resources. City Net will not be expected to lead this effort but will be asked to provide recommendations and connections, and support the outreach efforts.
● Plan should include connections to services for children including but not limited to tutoring and homework help. The Proposer will not be responsible for providing these services directly, but will help facilitate site access and program participation. ● Plan should include anticipated direct expenses to support clients including, but not limited to, the purchase of diapers, formula, clothing, and school supplies.
Deliverables: Outline of Operations and Services Plan; Draft & Final Operations and Services Plan DocuSign Envelope ID: 2B7DDDE8-8021-4CC1-8B41-4A88D6900151 DocuSign Envelope ID: 478DC013-8E9D-4729-9E9F-7F0FBFFCF70F EXHIBIT “B”
AGREEMENT NO. RHT 22-19 Page 17 of 17
COMPENSATION
Compensation will be on a time and materials basis. The total not-to-exceed compensation for all services performed under this Agreement shall be in accordance with Table 1 and shall not exceed $50,000.00. Each month, City Net shall furnish to SGVRHT an original invoice for all work performed and expenses incurred during the preceding month.
Table 1: Budget
Task Not-to-Exceed Amount
Task 1.1: Project Management $10,000
Task 1.2: Plan Development and Staff
Onboarding $40,000
TOTAL $50,000
DocuSign Envelope ID: 2B7DDDE8-8021-4CC1-8B41-4A88D6900151 DocuSign Envelope ID: 478DC013-8E9D-4729-9E9F-7F0FBFFCF70F 1 1528712.1
FIRST AMENDMENT
TO
CONSULTANT SERVICES AGREEMENT
This First Amendment to Consultant Services Agreement (“First Amendment”) is made and ent ered into as of August 17, 2022, by and between the San Gabriel Valley Regional Housing Trust , a California joint powers agency ( “SGVRHT”), and Kingdom Causes, dba City Net , a California corporation (herein referred to as the “Consultant”) with reference to the following:
A. The SGVRHT and the Consultant entered into that certain Consultant Services Agreement dated as of August 3, 2022, which is incorporated herein by this reference (the “Original Agreement”); and
B. The SGVRHT and the Consultant desire to amend the Original Agreement to modify, amend and supplement certain portions thereof.
NOW, THEREFORE, the parties hereby agree as follows:
1. Defined Terms. Except as otherwise defined herein, all capitalized terms used herein shall have the meanings set forth for such terms in the Original Agreement.
2. Revised Scope of Services. The Scope of Services, Exhibit "A" to the Original Agreement, is hereby amended, modified and supplemented to include the services described on Exhibit "A" attached hereto and incorporated herein by this reference.
3. Term. The Term of the Original Agreement as set forth in Section 2 therein is from August 3, 2022 to September 30, 2022. This First Amendment extends the Term up to and including September 30, 2023.
4. Compensation. The total not -to-exceed compensation set forth in Section 3 of the Original Agreement was the sum of Fifty Thousand Dollars ($50,000). Section 3 of the Original Agreement is hereby amended to provide for an increase of Nine Hundred Forty-Seven Thousand Nine Hundred Sixty-Two Dollars & 86/100 ($947,962.86) so that the total not-to-exceed compensation, as amended by this First Amendment shall not exceed Nine Hundred Ninety -Seven Thousand Nine Hundred Sixty -Two Dollars & 86/100 ($997,962.86) without the prior authorization of the SGVRHT . Exhibit “B” of the Original Agreement entitled “Compensation”, is deleted in its entirety and replaced with Exhibit “B”, attached hereto and incorporated herein by the reference.
5. Integration. This First Amendment and all attachments hereto (if any) DocuSign Envelope ID: E6777A36-EAF9-4903-806E-1362A8098919 DocuSign Envelope ID: 478DC013-8E9D-4729-9E9F-7F0FBFFCF70F
1528712.1
integrate all of the terms and conditions mentioned herein, and supersede all negotiations with respect hereto. This First Amendment amends, as set forth herein, the Original Agreement and except as specifically amended hereby, the Original Agreement shall remain in full force and effect. To the extent that there is any conflict or inconsistency between the terms and provisions of this First Amendment and the terms and provisions of the Original Agreement, the terms and provisions of this First Amendment shall control.
IN WITNESS hereof, the parties enter into this First Amendment on the year and day first above written.
*NOTE: If Consultant is a corporation, the SGVRHT requires the following signature(s):
-- (1) the Chairman of the Board, the President or a Vice-President, AND (2) the Secretary, the Chief Financial Officer, the Treasurer, an Assistant Secretary or an Assistant Treasurer. If only one corporate officer exists or one corporate officer holds more than one corporate office, please so indicate. OR
-- The corporate officer named in a corporate resolution as authorized to enter into this Agreement. A copy of the corporate resolution, certified by the Secretary close in time to the execution of the Agreement, must be provided to the SGVRHT.
“CONSULTANT”
KINGDOM CAUSES, DBA CITY NET
*By:___________________________
Printed Name:___________________
Title:___________________________
*By:___________________________
Printed Name:___________________
Title:___________________________
“SGVRHT”
SAN GABRIEL VALLEY REGIONAL
HOUSING TRUST
By:___________________________
Marisa Creter
Title: Executive Director
APPROVED AS TO FORM
______________________________
David DeBerry, General Counsel
DocuSign Envelope ID: E6777A36-EAF9-4903-806E-1362A8098919 Art Gray
Secretary
Executive Director
BRAD FIELDHOUSE
DocuSign Envelope ID: 478DC013-8E9D-4729-9E9F-7F0FBFFCF70F 1528712.1
EXHIBIT “A”
SCOPE OF SERVICES
[Behind this page.]
DocuSign Envelope ID: E6777A36-EAF9-4903-806E-1362A8098919 DocuSign Envelope ID: 478DC013-8E9D-4729-9E9F-7F0FBFFCF70F Exhibit A - Scope of Services
Task 1.1 Project Management
City Net will hold kick-off meeting the week of August 8, 2022 and 6 weekly meetings with project team during Plan creation and initial client intake process. City Net will host monthly meetings with project team once the site is operational to discuss onsite service provision, site needs, community feedback, and other operational updates. City Net will also be responsible for providing a monthly report in a format approved by the SGVRHT, SGVCOG, and the City demonstrating aggregate enrollment and exit data and provision of/connection to services. In addition to the monthly reporting, if incidents occur onsite, City and SGVRHT staff will be notified and provided an incident report within 24 hours.
The Consultant will make the site available for tours from S GVRHT, SGVCOG, City staff, and other parties as requested by either SGVRHT or City staff. Tours will take place on an as needed basis on weekdays between 9AM and 5PM with at least 48-hour notice provided.
Deliverables: Kick-off meeting agenda & meeting notes (1); weekly meeting agendas and notes (6); monthly meeting agendas and meeting notes (12); facilitate onsite tours (as needed) T
ask 1.2 Plan Development & Staff Onboarding
City Net will work with the SGVRHT, SGVCOG, and City staff to develop an Operati ons, Staffing, and Services Plan (Plan) for the site. The Plan should outline how the site will be operated to ensure that all site residents receive the resources that they need to move into permanent housing as quickly as practicable. The Plan should operationalize how City Net will work with stakeholders to maximize participant and program success by balancing on-site services with existing services available through CES, the County of Los Angeles, and the City’s existing services contracts and resources. The Plan should outline roles and responsibilities for onsite staff, as well as how these staff will work with other off-site staff and services. The Plan should also outline the approach to ensure that all needed services are available for the site's participants, and for services not available at the site, where the services can be found and how they would be accessed. For example, the Plan should maximize participant connection to these existing services and strengthen coordination with participants’ existing case managers and housing navigators. City Net should include specific partnership opportunities with additional service providers and agencies in the region providing resources to families experiencing homelessness. City Net should include any add itional Plan components required to ensure site safety, provision of family specific services, and other components as recommended by City Net.
Current with the development of the plan, City Net should begin recruiting and onboarding efforts to staff the site by the operations date. Staff must be onboarded prior to September 26, 2022.
The Plan should include the following components at a minimum:
Program Policies and Procedures: Eligibility and Referrals, Program Intake, Program Exit ● Program Eligibility: City Net will develop policies and procedures for identifying eligible participants. The site will serve families experiencing homelessness with a local preference DocuSign Envelope ID: E6777A36-EAF9-4903-806E-1362A8098919 DocuSign Envelope ID: 478DC013-8E9D-4729-9E9F-7F0FBFFCF70F
for families with a nexus to Baldwin Park. For this project, families are defined as one or more legal guardians and one or more minor children. Participants must not need hospitalization or skilled nursing care. Adult participants must be able to manage Activities of Daily Living (i.e., ability to transfer in and out of a bed, bathe, dress, and address hygiene needs independently). Adult participants should include those with less urgent needs, considered moderate or mid-range acuity, or low acuity (or low to moderate service needs).
Participants must be able to meet any custody, parole, or other legal requirements while residing at the site in to be eligible. The Plan’s participant eligibility requirements should aim to maximize the likelihood of success of placing participants into permanent housing. ● Referrals Process: City Net will develop policies and procedures for accepting referrals.
Plan will include accepting referrals from City staff, City public safety teams, City - and SGVCOG-contracted housing navigators, CES -outreach teams, and other CES partners (hereafter referred to as “Partners”). City Net will work with Partners to prioritize participants living adjacent to the site and those experiencing homelessness in the site's jurisdiction, surrounding jurisdictions, or Service Planning Area (SPA) 3. ● Program Intake: City Net will establish a n intake process and procedures. Plan will include ensuring that all participants are enrolled in HMIS and updating information in HMIS.
● Housing and Services Plan: For those participants that do not have one, following intake and assessment, City Net must work with each participant and any case manager and/or housing navigator to develop a Housing and Services Plan. Plan should include existing services to which to connect the participant. If the participant already has a Housing and Services Plan, City Net will work with the participant and their existing housing navigator to update the plan as necessary. City Net will work with the participant and other assigned case managers to complete a monthly update to assess progress towards achieving the goals defined in the Housing and Services Plan.
● Community Rules: City Net will develop policies and procedures for individual family units and communal areas to ensure safety of all participants with particular attention to supervision of children at the site. Each family will be responsible for monitoring their children and City Net will be responsible for confirming each family is aware of the monitoring requirements and rules for communal areas.
● Program Exit: City Net will develop policies and procedures that adhere to best practices for exiting participants from the site. These include striving to move participants out of the Program and into permanent housing as quickly as possible, assisting with reunification services or assisting the participant with self-resolving their housing bridge, and otherwise assisting participants in fulfilling their Housing and Services Plan. The policies and procedures should also establish expectations for lengths of stay and when participants should otherwise be exited from the program (e.g. not utilizing a unit; hospitalization; incarceration). Plan will include entering exit information into a case note in HMIS and submitting an SGVRHT exit form.
● Safety Concerns: City Net will establish protocols when a participant is deemed a risk to the safety of City Net’s staff or other participants. City Net must have a policy about how to manage the return of participants who are exited due to concerns about the safety of other participants or staff created by the exited participant.
DocuSign Envelope ID: E6777A36-EAF9-4903-806E-1362A8098919 DocuSign Envelope ID: 478DC013-8E9D-4729-9E9F-7F0FBFFCF70F
Site Management and Oversight
● Plan will include the following
○ Provision of three meals per client prepared onsite or delivered to the site daily ■ Meals should include consideration of dietary ne eds based on resident composition i.e. Baby formula, age appropriate snacks, and frequency based on nutritional needs.
○ 24/7 site staffing and procedures
○ Coordinate with the City to facilitate trash pick-up and regular cleaning of the site and ensure the facility remains sanitary. Trash pick-up will be provided by the City. ○ Maintain site accessibility. City will provide ADA accessible units and paths of travel. City Net will maintain accessible paths of travel and provide reasonable accommodations for the l aundry room and other amenities as needed. Coordinate with volunteers and accept and distribute donations as appropriate. ○ Ensure that the site is operated in a way that is consistent with its intended use and ensure that the SGVRHT and the City maintain th eir warranties on the product.
Should issues arise that prevent City Net from operating the site consistent with expectations, City Net is responsible for notifying the City within twenty-four (24) hours.
○ Ensure that the facility remains sanitary, healthfu l, and otherwise safe for its intended or actual use.
○ Promptly and appropriately respond to the needs of participants, including referrals to medical, mental health, and other relevant service providers. The plan must include procedures for addressing emer gency situations including notifying the SGVRHT and City within twenty-four (24) hours.
Case Management, Housing Navigation, and Connection to Existing Services ● Coordination with Existing Case Managers and Housing Navigators: The Plan will include coordination with participants’ existing case managers and housing navigators to facilitate linkage to services and referrals to permanent housing. The Plan will outline how to efficiently coordinate with existing case managers and housing navigators. ● Site-Based Case Management and Housing Navigation: City Net will provide case management services to assist participants in accessing permanent housing through referrals to housing programs, such as Rapid Rehousing, Permanent Supportive Housing, and affordable housing, or assisting the participant in self -resolving their housing bridge.
The Plan will outline how to efficiently provide case management and housing navigation at the site and in collaboration with existing offsite resources. This includes both how clients will be connected to vouchers and how clients will be supporting in securing housing where the vouchers can be used.
● Coordination with Department of Children and Family Services (DCFS): City Net will coordinate with DCFS and other departments to ensure f amilies are in compliance and receive necessary services. City Net will provide site access to these agencies as required. ● Coordination with School District: City Net will coordinate with staff at local schools to meet the needs of children residing at the site.
DocuSign Envelope ID: E6777A36-EAF9-4903-806E-1362A8098919 DocuSign Envelope ID: 478DC013-8E9D-4729-9E9F-7F0FBFFCF70F
● Connection to Existing Services: In addition to housing support, case management should include linkage to services, including but not limited to health care, behavioral or mental health services, substance use treatment, employment services, and i dentifying transportation to those services. City Net is expected to connect participants to existing services in SPA 3 as needed.
Staffing Levels, Qualifications, and Schedule
● City Net should detail proposed staffing levels to provide full time case management and housing navigation, 24/7 security staffing, facilitate clients’ needs including showers, meals, and connection to additional services, and provision of 3 meals per day for clients.
Each family will be responsible for monitoring their childre n and City Net will be responsible for confirming each family is aware of the monitoring requirements and rules for communal areas.
Support Securing Additional Funding and Resources
● Plan should maximize connection to programs for which participants are el igible, for example Medicaid/Medi -Cal, Supplemental Security Income (SSI), Supplemental Nutrition Assistance Program (SNAP), and Social Security Disability Insurance (SSDI).
Plan will also include coordination with the SGVRHT, SGVCOG, and City to engage community groups and members by pursuing donations to support the site. This could include donations of food, clothing, funding, or other resources. City Net will not be expected to lead this effort but will be asked to provide recommendations and connections, and support the outreach efforts.
● Plan should include connections to services for children including but not limited to tutoring and homework help. The Proposer will not be responsible for providing these services directly, but will help facilitate site access and program participation. ● Plan should include anticipated direct expenses to support clients including, but not limited to, the purchase of diapers, formula, clothing, and school supplies.
Deliverables: Outline of Operations and Services Plan; Draft & Final Operations and Services Plan
Task 2.1 Site Preparation
City Net will work with the City, SGVRHT, and SGVCOG to identify the initial list of clients to be served at the site. City Net will host a kick-off meeting no later than September 8, 2022 and 3 weekly check-in calls with SGVRHT, SGVCOG, and the City to facilitate initial client enrollment.
City Net will provide SGVRHT, SGVCOG, and City with a referral form to ensure all necessary client information is provided to City Net to begin the screening and enrollment process. Once 16 households are identified, City Net will begin to keep a waiting list of at least 8 households. City Net will facilitate on-site client intake and move-ins on site opening date. The site is expected to be fully occupied within 1 week of opening. Site opening date is September 26, 2022.
SGVRHT and City staff will facilitate a site walk through prior to opening.
DocuSign Envelope ID: E6777A36-EAF9-4903-806E-1362A8098919 DocuSign Envelope ID: 478DC013-8E9D-4729-9E9F-7F0FBFFCF70F
Deliverables: Referral form; Initial client list (16 households) an d waitlist (8 households); attend site walk through
Task 2.2 Site Operation
City Net will operate the site for one year, from September 26, 2022 to September 22, 2023, with the two, one-year options to extend the term if mutually agreed upon by SGVRHT and City Net .
City Net will operate the site in accordance with the approved Operations , Staffing, and Services Plan (Plan) and must maintain a 90% or greater occupancy rate. City Net will provide 24/7 security in accordance with the Plan. City Net staffing will follow the levels detailed in the Annual Budget in Exhibit B.
As further detailed in the plan, staffing will include:
• Residential Coordinator- 7 FTE: support client needs including meals and • Case Manager- 1 FTE: perform client intakes and exits, maintain HMIS data, perform case management and housing navigation
• Site Manager- 1 FTE: Site and program supervision
• Additional staffing to support human resources, finance, and operations
As further detailed in the plan, services will include:
• 24/7 staffing
• 3 ready to eat meals per client daily which are prepared onsite or delivered to the site
Deliverables: Onsite staffing in accordance with Plan ; 24/7 security; 3 meals per day for 16 households (estimated 45-50 individuals).
2.3 Closure of Site and Transition of Current Residents At the end of the one -year pilot program period (unless extended) or upon determination of site closure, City Net will work with SGVRHT, SGVCOG, and the City to provide appropriate housing and shelter for any clients onsite as detailed in the Operations an d Services Plan. City Net will provide SGVRHT with a summary of all services provided at the site and a summary of client exits including the transfer of any clients onsite at the time of site closure.
Deliverables: Transfer for all clients onsite; HMIS reporting of site closure and client transfers; final report of all services provided during site operation.
DocuSign Envelope ID: E6777A36-EAF9-4903-806E-1362A8098919 DocuSign Envelope ID: 478DC013-8E9D-4729-9E9F-7F0FBFFCF70F
1528712.1
EXHIBIT “B”
COMPENSATION
[Behind this page.]
DocuSign Envelope ID: E6777A36-EAF9-4903-806E-1362A8098919 DocuSign Envelope ID: 478DC013-8E9D-4729-9E9F-7F0FBFFCF70F Title/Role Description
Fully
Loaded Compensation Hrs/ week Wks FTE TOTAL
Site Manager Project
supervision
$38.35 40 52 1 $79,762.80
Residential
Coordinator
(Bridge Housing
Site & Safety
Associate)
Regional Shelter Case
management
supervision
$43.08 10 52 0.25 $22,401.60
Case Manager Intakes, exits,
coordinated
entry, housing
case
management
and navigation
$31.36 40 52 1 $65,228.80
Data Specialist HMIS data entry,
reporting, data
compliance
$32.98 2 52 0.05 $3,429.92
Executive leader Project oversight,
quality control,
staff deployment,
problem solving
$93.84 4 52 0.1 $19,518.72
Finance Payroll, billing $45.24 4 52 0.1 $9,409.92
Human Resources Staff recruiting,
hiring, training,
disputes
$44.14 4 52 0.1 $9,181.12
Housing Resources Communication
s, mobilization
local community
for advocacy and
client resources
$30.19 8 52 0.2 $12,559.04
Operations Inventory,
purchasing,
technical support
$41.86 2 52 0.05 $4,353.44
9.85 $592,902.96
Item TOTAL
Shelter $5,000.00
Labor Subtotal:
Facilities and Shelter Expenses
Description
Furnishing of units: mattresses, matress coverings, linens, etc.
Baldwin Park Tiny Home Bridge Family Housing Site Annual Budget (16 home units, 45-50 residents)
Labor
Support client
needs, facility
oversight,
meals, etc.
$25.21 40 52 7 $367,057.60
Exhibit B - Compensation
Compensation will be on a time and materials basis. The total not-to-exceed compensation for all services performed under this Agreement shall be in accordance with the table below and shall not exceed $997,962.86. Each month, City Net shall furnish to SGVRHT an original invoice, with appropriate backup, for all work performed and expenses incurred during the preceding month.
DocuSign Envelope ID: E6777A36-EAF9-4903-806E-1362A8098919 DocuSign Envelope ID: 478DC013-8E9D-4729-9E9F-7F0FBFFCF70F Janitorial $10,000.00
Facilities $10,000.00
$25,000.00
Item TOTAL
Materials $11,000.00
Client Services $175,000.00
Client Services $5,000.00
Client Services $10,680.00
Client Services $3,000.00
Client Services $24,000.00
Client Services $30,000.00
Equipment $13,096.00
Materials $1,000.00
Materials $6,960.00
Materials $3,000.00
Materials $4,800.00
Materials $1,800.00
$289,336.00
Category TOTAL
Indirect Costs $90,723.90
$90,723.90
$997,962.86
Bed Night Total
$54.68
At a flat 10%: includes general expenses incurred by City Net but not directly borne by the project (utilities, taxes, other types of required insurance not listed above, legal, staff development,
contingencies, etc.)
Administration subtotal:
Project TOTAL
Financial audit
Liability Insurance
Operations and Program Expenses Subtotal:
Administration
Description
Fees, rental assistance and move‐in costs for: rapid rehousing, sober living homes, room and board, rooms for rent, relocations, etc. Also fees for documentation, local transportation, work expenses, etc.
Phones, computers (hardware and software) and equipment Personal Protective Equipment (PPE) for staff and clients (masks, gloves, face shields, proximity suits, safety footwear, trash bags, etc.) with replacements
Uniforms, copies, forms, office supplies, equipment, etc.
IT support and client management software licenses
Meals, snacks and beverages
Paper goods for meals
Diapers, formula, clothing, school supplies other child‐related expenses
Pet supplies, equipment, vaccinations
Client/staff transport (1 vehicle): vehicle lease, gas, vehicle insurance, maintenance
Pest control
Facilities and Shelter Expenses Subtotal:
Operations and Program Expenses
Description
Toiletries, paper goods, trash bags, non‐janitorial supplies General upkeep, cleanliness, notification of outside
maintenance needs
DocuSign Envelope ID: E6777A36-EAF9-4903-806E-1362A8098919 DocuSign Envelope ID: 478DC013-8E9D-4729-9E9F-7F0FBFFCF70F 65431.00007\40854899.1
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CITY OF BALDWIN PARK
SECOND AMENDMENT TO THE
ASSIGNMENT OF AGREEMENT FOR CONSULTANT SERVICES BY AND BETWEEN SAN
GABRIEL VALLEY REGIONAL HOUSING TRUST AND KINGDOM CAUSES, DBA CITY NET
AND CITY OF BALDWIN PARK
1. PARTIES AND DATE.
This Second Amendment to the ASSIGNMENT OF AGREEMENT FOR CONSULTANT
SERVICES BY AND BETWEEN SAN GABRIEL VALLEY REGIONAL HOUSING TRUST AND KINGDOM CAUSES, DBA CITY NET AND CITY OF BALDWIN PARK Agreement (“Second Amendment”) is entered into on the 23 day of September, 2023, by and betwe en the City of Baldwin Park, a municipal corporation, organized under the laws of the State of California, with its principal place of business at 4100 Baldwin Park Bulevard., Baldwin Park, CA 91706 (“City”) and Kingdom Causes, DBA City Net, a non-profit, with its principal place of business at 4508 Atlantic Avenue, Suite 292 , Long Beach CA 90807 (“Consultant” ). City and “Consultant” are sometimes individually referred to herein as “Party” and collectively as “Parties.”
2. RECITALS.
2.1 Agreement. The Parties entered into the ASSIGNMENT OF AGREEMENT
FOR CONSULTANT SERVICES BY AND BETWEEN SAN GABRIEL VALLEY REGIONAL
HOUSING TRUST AND KINGDOM CAUSES, DBA CITY NET AND CITY OF BALDWIN PARK Agreement dated on the 17 day of August, 2022 (“Agreement”).
2.2 First Amendment. The Parties amended the Agreement in order to assign the agreement for consultant servi ces by and between the San Gabriel Valley Regional Housing Trust and Kingdom Causes, DBA City Net to the City of Baldwin Park on.
2.3 Second Amendment. The Parties wish t o amend the existing agreement for consultant services by and between the City of Baldwin Park and Kingd om Causes, DBA City Net in order to (1) Extend the agreement for consultant serv ices from 23 day of September, 2023 to the 22 day of September, 2024; and (2) amend the compensation provided.
3. TERMS.
3.1 Amendment. Section 2 of the Agreement is hereby amended in its entirety to read as follows:
Term of Agreement. This Agreement shall take effect September 23, 2023, and shall continue until September 22, 2024 ("Term"), unless earlier termina ted pursuant to the provisions herein. The City of Baldwin Park City Council shall have the option to extend this Agreement, up to one additional one -year terms by giving Consultant at least thirty (30) days written notice prior to the expiration of the Term or any extension thereof. Any extended term shall be subject to the same terms and conditions contained herein; provide that Consultant and City shall negotiate any increase in Consultant’s hourly rate, but in no event s hall the 65431.00007\40854899.1
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increase exceed the lesser of 3% or the amount the Consumer Price Index (“CPI”) for the Los Angeles -Anaheim-Riverside metropolitan area for the month immediately preceding the adjustment date (the “Index Month”) as reported by the United States Bureau of Labor Statistics.
3.2 Amendment. Amendment of Exhibit B. Exhibit “B” of the existing agreement is hereby amended as shown on Attachment 1 to this Second Amendment l.
3.3 Remaining Provisions of Agreement. Except as otherwise specifically set forth in this First Amendment, the remaining provisions of the Agreement shall remain in full force and effect.
CITY OF BALDWIN PARK KINGDOM CAUSES, DBA CITY NET
By:
Emmanuel J. Estrada
Mayor
By:
Brad Fieldhouse
Executive Director
ATTEST:
By:
City Clerk
Christopher Saenz
APPROVED AS TO FORM:
By:
Marco A. Martinez
City Attorney
ATTACHMENT 1
COMPENSATION
Exhibit “B” of the Agreement entitled, “AMENDMENT TO THE ASSIGNMENT OF
AGREEMENT FOR CONSULTANT SERVICES BY AND BETWEEN SAN GABRIEL
VALLEY REGIONAL HOUSING TRUST AND KINGDOM CAUSES, DBA CITY NET AND CITY OF BALDWIN PARK“ has been amended to reflect the one (1) year operating costs for consultant services for Serenity Homes from September 23, 2023 to September 22, 2024. Compensation will be on a time and materials basis. The total not- to-exceed compensation for all services performed under this Agreement shall be in accordance with Table 1 and shall not exceed One Million One Hundred and Sixty-Five Thousand Six-Hundred and Seventy-Seven Dollars and 35/100 cents ($1,165,677.35).
Each month, City Net shall furnish to City an original invoice for all work performed and expenses incurred during the preceding month in accordance with funding requirements and sources.
Table 1: Budget
Task Not-to-Exceed Amount
Task 1.1 Consultant Services for Site
Operations
$1,165,677.35
Total $1,165,677.35
Title/Role Description
Full
Comp
Hrs/
week Wks FTE TOTAL
Regional Shelter Deputy DirectorProject compliance with management, operations and public safety standards
$48.77 12 52 0.30 $30,432.48
Site Manager Project supervision and program implementation $44.90 40 52 1.00 $93,392.00 Res Coordinator, AM Shift Facility oversight, meals, program coordination, etc. $27.99 40 52 2.80 $163,013.76 Res Coordinator, PM Shifts Facility oversight, meals, program coordination, etc. $29.21 40 52 5.60 $340,238.08 Case Manager II Housing case management and navigation/McKinney Vento Coordinator?
$34.23 40 52 1.00 $71,198.40
Data Analyst HMIS data entry, reporting, data compliance $36.26 8 52 0.20 $15,084.16 Community Engagement Align activities with community stakeholders and generate resources for client needs
$47.36 5 52 0.13 $12,313.60
Executive leadership Project oversight, quality control, staff deployment, problem solving $99.79 2 52 0.05 $10,378.16 Finance non-exempt Payroll, billing, financial controls $33.93 2 52 0.05 $3,528.72 Finance exempt Payroll, billing, financial controls $61.50 3 52 0.08 $9,594.00 HR exempt Staff recruiting, hiring, training, disputes $35.57 2 52 0.05 $3,699.28 HR non-exempt Staff recruiting, hiring, training, disputes $61.50 2 52 0.05 $6,396.00 Operations non-exempt Inventory, purchasing, technical support $33.76 2 52 0.05 $3,511.04 Operations exempt Inventory, purchasing, technical support $46.29 2 52 0.05 $4,814.16
11.40 $767,593.84
Item TOTAL
Local Transportation $24,960.00
Meals $135,200.00
Supplies (all program, client,
pet, site)
$28,413.00
Client Services Fund $21,500.00
Janitorial/maintenance $22,500.00
Facilities $2,500.00
Facilities $2,400.00
$237,473.00
Item TOTAL
Equipment $8,000.00
Materials and Supplies $13,740.00
Materials and Supplies $6,840.00
Materials and Supplies $6,870.00
Shelter Contingency $19,189.85
$54,639.85
Category TOTAL
De minimis rate for non-
federal entity
$105,970.67
$105,970.67
$1,165,677.35
Client/staff transport (1 vehicle): vehicle lease, gas, vehicle insurance, maintenance Baldwin Park Serenity Homes Annual Operations Budget (16 units, 50 beds) September 23, 2023 - September 22, 2024
Labor
Labor Subtotal:
Client Services Expenses
Description
Pest control
Client Services Subtotal:
Operations Expenses
Meals, snacks and beverages
Fees, rental assistance and move-in costs for: rapid rehousing, sober living homes, room and board, rooms for rent, relocations, etc. Also fees for documentation, gas card, local transportation, work Handyman for general upkeep, cleanliness, notification of outside maintenance needs Project TOTAL
Notes
Rates current as of 6/23/23. Annual renewal would require review of rates for costs, materials and supplies plus COLA tied to local consumer price index.
New contracts require 90-day startup time and 20% advance payment. Advance payment will be credited proportionately on each monthly invoice.
Paper goods for meals, Pet supplies and services (eg. vaccinations) when needed, Toiletries, paper goods, trash bags, non-janitorial supplies, PPE for staff and clients (masks, gloves, safety footwear, trash bags, etc.), on site office supplies, staff uniforms, copier, etc.
At 2.5% of labor, client services and operations to cover cost increases/disruptions/shortages in materials, supplies, labor, security, travel, etc. Operations Expenses Subtotal:
Indirect Expenses
Description
Per 2 CFR 200.414-11, de minimis rate established for non-Federal entities who do not have negotiated Indirect Cost Rate. This fee is charged at a rate of 10% to offset expenses incurred by the Indirect subtotal:
Description
Phones, computers (hardware and software) and equipment IT support and client management software licenses
Financial audit
Liability Insurance
Furnishing of units: mattresses, matress coverings, linens, etc.
STAFF REPORT
ITEM NO. _____9_____
TO: Honorable Mayor and Members of the City Council
FROM: Enrique C. Zaldivar, Chief Executive Officer
PREPARED BY: Shirley Quinones, Chief Deputy City Clerk
DATE: September 6, 2023
SUBJECT: Review of Commission Applications and Consideration of Appointments to Fill the Scheduled Vacancies for the Recreation and Community Services Commission.
SUMMARY
This report requests that the City Council review applicants and appoint the remaining commissioners to the Recreation and Community Services Commission.
RECOMMENDATION
It is recommended that the City Council review all commission applications for the Recreation and Community Services Commission and make respective appointments.
FISCAL IMPACT
There is no fiscal impact with this action.
BACKGROUND
A Public Notice of Commissioners was posted in accordance with Government Code Sections 54972 and Baldwin Park Municipal Code Chapter 32.
All Commission applications included residency verification (via review of a driver’s license and a current utility bill). Said documentation is on file in the City Clerk's Office under advisement.
DISCUSSION
During the City Council Meeting of July 19, 2023, the City Council appointed Anita Diaz, Roman Rodriguez and Cecelia Bernal to the Recreation and Community Services Commission.
However, there still remained 5 vacancies on the commission, therefore the City Council directed staff to keep the Notice of Commissioner open for the remain vacancies in the Recreation and Community Services and Housing Commission. While the remaining Recreation and Community Servic es is composed of eight (8) members, five (5) are voting members. Currently there are only three (3) voting members appointed but have not been sworn in.
RECREATION/COMMUNITY SERVICES COMMISSION:
Eight (8) Recreation/Community Services Commissions Seats open.
Term: Seats No. 1-5 : July 1, 2023 thru June 30, 2025
Seats No. 6-8: July 1, 2023 thru June 30, 2024
* Office #6 – Baldwin Park High School
* Office #7 – Sierra Vista High School
* Office #8 – North Park High School
Current Members:
OFFICE #1- Anita Diaz Voting Member TERM EXPIRES – JUNE 30,2025 OFFICE #2- Roman Rodriguez Voting Member TERM EXPIRES – JUNE 30, 2025 OFFICE #3- Cecelia Bernal Voting Member TERM EXPIRES – JUNE 30, 2025 OFFICE #4 - Vacant Voting Member TERM EXPIRES – JUNE 30, 2025 OFFICE #5 - Vacant Voting Member TERM EXPIRES – JUNE 30, 2025 OFFICE #6 - Vacant Non-Voting Student TERM EXPIRES – JUNE 30, 2024 OFFICE #7 - Vacant Non-Voting Student TERM EXPIRES – JUNE 30, 2024 OFFICE #8 - Vacant Non-Voting Student TERM EXPIRES – JUNE 30, 2024
Applications received from the following (applicants listed alphabetically by first name):
For Office Seats 4 & 5:
1. Juan Rios
2. Norma Olmos
For Office Seats 6 & 7 (High School Students)
1. Itzel Guadalupe Herrera (Sierra Vista High School)
2. Lesly Martinez (Baldwin Park High School)
ALTERNATIVES
The City Council could make appointments at its next regularly scheduled City Council Meeting and designate the current incumbents to continue serving in their current capacity until said appointments are made, as prescribed by the Baldwin Park Municipal Code Section 32.03(B).
LEGAL REVIEW
This report has been reviewed and approved by the City Attorney as to legal form and content.
ATTACHMENTS
1. Commission Applications
STAFF REPORT
ITEM NO. _____10_____
TO: Honorable Mayor and Members of the City Council
FROM: Enrique Zaldivar, Chief Executive Officer
Ron Garcia, Director of Community Development
Julia Sylva, Cannabis Special Counsel
DATE: September 6, 2023
SUBJECT: The City of Baldwin Park Commercial Cannabis Program Policy Update Discussion and Request for Direction
SUMMARY
The purpose of this staff report is to receive direction from the Council concerning policy updates to the City’s commercial cannabis program.
RECOMMENDATION
It is recommended the City Council provide direction to Staff to return for adoption a recomm ended Updated Commercial Cannabis Policy for the future of the City’s Commercial Cannabis Program (Cultivation, Manufacturing, Distribution, and Retail). Final policy will be established by Resolution.
FISCAL IMPACT
Fiscal impacts related to the City’s commercial cannabis program policy update depends on the adoption of the Community Benefit Fee tier structure. In general, the proposed fees are intended to reflect the City Council’s goal to lower the fees in response to cannabis operators requests to make the fees more equitable.
BACKGROUND
On August 9, 2017, the Planning Commission heard AZC - 183 and approved resolution PC 17 -13, recommending the City Council approve and adopt an amendment to the City’s Zoning Code allowing Commercial Cannabis Activity within the IC, Industrial Commercial and I, Industrial Zones and deleted Sections 153.120.330.C and 153.120.330.D, which were in conflict with the proposal to allow Adult and Medical Cannabis Cultivation, Manufacturing and Distribution. On August 16, 2017, the City Council approved a Zoning Text Amendment (Ordinance 1401) and approved Ordinance 1400 adding Chapter 127 of Title IX (Business Regulations), adding Medical and Adult use of Cannabis.
On December 13, 2017, the City Council amended Chapter 127, approving Ordinance 1403 requiring 600-foot distance criteria from Commercial Cannabis Activity for schools, day -care centers, parks or youth centers and increased the number of cannabis permits allowed from fifteen (15) to twenty (20).
On March 21, 2018, the City Council approved Ordinance 1408 amending Chapter 127 to increase the number of Adult and Medical Cannabis permits allowed up to twenty-five (25). The second reading of the ordinance was held on April 4, 2018, approving Ordinance 1408.
On November 11, 2019, the City Council approved O rdinance 1442 and 1443 amending Chapter 127 and 153 to reduce the distance requirement from a cannabis manufacturing site from 50 feet to 25 feet to a dwelling unit within a residential zone for a manufacturing site that exclusively manufactures edible
cannabis products and incorporate Chapter 127 into Chapter 153 of the City’s Municipal Code for clarity and consistency. The second reading of the ordinances was held on November 20, 2019.
On October 20, 2021, The City Council approved ordinance 1460 and 1461 amending Chapter 127 and 153 to reduce the distance requirement from a cannabis distribution site from 50 feet to 24 feet to a dwelling unit within a residential zone, increase the maximum size of a cannabis distribution facility from 22,000 square feet t o 40,000 square feet and minor grammatical amendments to ensure consistency throughout the commercial cannabis standards. The second reading of the ordinances was held on November 3, 2021.
In November 2022, the City electorate voted to approve a retail ini tiative (“Measure CB”), including revenue-raising taxes initially set at four percent (4%). The Retail Initiative requires the retailer to maintain the underlying active non-retail cannabis license and be in good standing at all times, including after the issuance of the retail license.
On February 15, 2023, The Council held a policy discussion regarding the future of the City’s Commercial Cannabis Program. The City Council also approved Ordinance 1501 to recodify and re - order the City’s existing commerci al cannabis regulations that includes voter approved Measure CB, as well as the Measure CB tax provisions, into one coherent ordinance to make it easier for staff to implement and the public to understand. The second reading of the ordinance was held on Ma rch 1, 2023.
On March 15, 2023, The City Council adopted City Council Resolution 2023-11 and 2023-12 amending the City’s Planning Fee Schedule to set application fees charged to commercial cannabis applicants and set the max set the maximum number of commercial cannabis cultivation, distribution, and manufacturing permits to no more than twenty-one (21).
On January 18, 2022, per request from the Director of Community Development, the City executed a professional services agreement under the authority o f the City Manager with HdL Companies to provide Cannabis Management Services including the preparation of a Public Benefit Fee Study. The study included an assessment of licensed cannabis activity in Baldwin Park and recommendations of possible restructuring of the cannabis fees based on rates charged by nearby jurisdictions and around the state (Attachment, 1).
DISCUSSION
Staff undertook a comprehensive analysis regarding local government regulation of commercial cannabis activity in the State of California. Staff worked with the City Attorney, Special Cannabis Counsel, consultants, City staff, and the California Department of Commercial Cannabis Control, for assistance in this analysis to establish fair and equitable terms and conditions for granting licenses.
After months of research and analysis, Staff has prepared a Commercial Cannabis Program Policy Update and a tier fee structure for Council’s consideration and direction.
Transition from Development Agreement to Commercial Cannabis Agreement.
Originally, the City executed non -statutory development agreements with the commercial cannabis operators; then they were amended to statutory development agreements; generally, all had terms of fifteen (15) years. The fees consisted of a one-time $15,000 Administrative Fee, $50,000 annual Public Safety Fee, and $220,000 Mitigation Fees ($10 per square foot, maximum facility size 22,000 square feet). The fee would increase by $55,000 in Year Two and Year Four. However, Staff is recommending a transition to the use of a Commercial Cannabis Agreement (CCA), which would be non-statutory, and identifies the annual Community Benefit Fee, which is negotiated at arms-length with applicant to provide CITY commensurate benefit based on a private benefit conferred u pon applicant, and which would be deposited into the General Fund. Additionally, the CCA will require an Application Deposit Fee (for reasonable Reimbursable Costs) for processing of the Commercial Cannabis Agreement. The Retail tax was set by Measure CB. As for Cultivation, Manufacturing, and Distribution, the Community Benefit Fee would be set by the proposed tier fee depending on “Premises” square footage (as defined
by the DCC Regulations -generaly excludes any rooms not approved for cannabis activity e.g. restrooms, break rooms, kitchens, office space, vacant space, loading docks, etc.). Below is recommended tier based on total size of premise area.
Key Changes in the CCA.
Staff recommends key changes in the CCA (Attachment, 2), which are applicable to all operators, including retail:
1. Five-Year Term--for stronger enforcement powers for City Council;
2. Timing of Payment --The annual Community Benefit Fee (CBF) is due six (6) months after issuance of the Certification of Occupancy (COO);
3. Reassessment of Community Benefits Fee . The CBF is subject to reassessment by the CITY every five (5) years, after execution of the CCA; thereafter, the CITY may, in its sole discretion, based upon public policy, set a new CBF, which will be applied in years 6 -10; thereafter, CITY will set new CBF, which will be applied in years 11-15. No one factor is dispositive in the CITY’s determination of the new CBF.
4. Quarterly Installment Payments—the annual CBF may be paid in quarterly installments;
5. No Public Safety Fee –CITY will no longer impose a fee of $50,000;
6. Personal Guaranty or Performance Bond—required as further security for payment of the annual CBF;
7. Self-Distribution--we propose that the CITY authorize self-distribution, wherein, operators may self-distribute their own product, not the product of third parties; we propose an annual fee of $2,000 (a maximum of $10,000 for five-year term);
8. Nonpayment Penalties--If fees are late, after 30 days, CITY may impose a penalty of 25% of the total amount due; additionally, the City may refer to collections agency, for an additional collection fee of nineteen percent (19%);
9. Amendments to CCA--allows the CEO to make minor amendments and the City Council to make major amendments to the CCA;
10. Bundling--allows bundling of Cultivation, Manufacturing, and Distribution in sets of any two (2) out of any three (3) under a single Community Benefits Fee (e.g. an operator can operate two of the activities and only pay one fee).
11. Commercial Cannabis Banking--CITY will no longer accept cash payments for any fees or costs associated with the CCA; applicants are required to establish a banking relationship that allows
for payments to the CITY via company check, cas hier’s check, or money order; alternatively, they may wire funds and/or ACH directly to the CITY.
12. Wage Creation--Applicant is required to make reasonable, good faith efforts to employ at least forty percent (40%) of the Project’s workforce consisting of CITY residents.
13. Commencement of Project--Within six (6) months after the execution of the CCA, applicant shall commence the submittal of applications for and use entitlements, permits, etc.; if not, CITY shall have the right to Terminate the CCA; the CITY, it its sole and absolute discretion, may grant extensions…
14. Events of Default --Failure to move forward in good faith to obtain a Certificate of Occupancy (COO); failure to pay CBF…
CURRENT CANNABIS ACTIVITY
Active Commercial Cannabis Operators.
Currently, the following commercial cannabis operators are actively operating in the City including:
A. 428 Clover Leaf (Cultivation);
B. BP Tale Corp (Manufacturing);
C. Green Health Industries, LLC (Cultivation);
D. Jenome Research (Cultivation);
E. RD Baldwin Park/Tropicana (Manufacturing);
F. Rukli, Inc. (Distribution);
G. Tier One (Manufacturing);
H. VRD (Manufacturing); and
I. Pacific Cultivation, LLC (Cultivation/Manufacturing) Pending Final Inspection.
Applications Pending.
Currently, the City has three (3) new commercial cannabis applications and one (1) existing ownership amendment application in process:
A. Mission Creek Ventures, LLC (formerly Takhtams Village of Indians, Inc.), for Cultivation License*; and
B. Green Health Industries, LLC, for Ownership amendment. * C. RD X Catalyst Baldwin Park LLC (Catalyst) for Retail License.
D. BMPB Enterprises, LLC, for Cultivation License.
*Prepared for Council consideration upon adoption of Cannabis Policy Update.
Limits on the Number of Cannabis Permits
When the number of cannabis permits and applications reached 21, Staff recommended to Council that the number of cannabis permits available in the City be capped at 21. This cap would enable staff to “pause” the on -going review of cannabis applications and allow s taff to complete this analysis to determine if additional changes to the cannabis program are necessary. The cap was adopted by the Council in March of 2023 and remains in place at 21 maximum permits. The City is pursuing abandonment and surrender of applications/licenses, as appropriate, which would allow City to remain within the cap for any new applications.
Administrative Procedures Fines and Penalties for Illegal Cannabis Activity.
Adopt an ordinance setting administrative fines or penalties for the violation of building, plumbing, electrical, or other similar structural, health and safety, or zoning requirements if the violation exists as a result of, or to facilitate, illegal cannabis activity. This action would protect the City’s cannabis industry and assist in deterring illegal cannabis activity while penalizing illegal operators and property owners who knowingly allow illegal cannabis activity.
Commercial Cannabis Tax Rates
Direct staff to investigate the benefits of a Tax Measure to set tax rate ranges for commercial cannabis businesses (Cultivation & Manufacturing, Distribution, and Retail).
Future Council Actions
Depending on Council direction on recommended Commercial Cannabis Program Policy Update, the following actions will be on the Agenda for the next regular Council meeting of September 20, 2023:
1. Community Benefit Fee. Resolution Establishing Recommended Commercial Cannabis Community Benefit Fees and Fees based on Tier Structure; and
2. Final Version of the Commercial Cannabis Agreement (CCA)
LEGAL REVIEW
This report and the attachment have been reviewed and approved by the City Attorney and Cannabis Special Counsel as to legal form and content.
ATTACHMENTS
1. Commercial Cannabis Public Benefit Fee Study, Prepared by HdL Companies.
2. Draft Commercial Cannabis Agreement (CCA).
HdL Companies Public Benefit Fee Study – April 2022 Page 1 of 11
April 20, 2022
Comparison of Cannabis Regulatory Programs
Earlier this year, Baldwin Park City staff requested HdL Companies (HdL) to conduct an initial assessment of licensed cannabis activity in Baldwin Park. Specifically, City staff asked HdL to review the terms of Public Benefit Fees negotiated with cannabis operators, and recommend possible restructuring of the fees to encourage sustainable development of the industry. The following report summarizes the findings of HdL’s assessment.
Summary of Existing Cannabis Market in Baldwin Park
To initiate the assessment, HdL reviewed the status of the existing local cannabis market in Baldwin Park.
Currently, the City authorizes four types of commercial cannabis activities:
• Cultivators – Facilities where cannabis is planted, grown, harvested, dried, cured, or trimmed • Manufacturers – Facilities that compound, blend, extract, infuse, or otherwise prepare cannabis products (edibles, vaporizers, etc.)
• D istributors – Facilities where cannabis goods are stored, packaged, labeled, inspected for quality assurance, and/or transported between cannabis businesses • T esting Laboratories – Facilities that test cannabis goods for potency (THC, CBD, etc.) and various forms of contamination (mold, pesticides, heavy metals, etc.) The City maintains a cap of twenty -five cannabis business permits, exclusive of distribution. Currently, there are seventeen cannabis permit holders, and eight are currently operating. In March of this year, HdL Companies visited all eight of the permitted and operating cannabis facilities in Baldwin Park, to solicit feedback from business owners on the existing Public Benefit Fee structure. The specific businesses that HdL visited include: Jenome Research, Baldwin Park Tale Corp., RUKLI Inc., Clover Lea f LLC, RD Baldwin Park, VRD Inc., Tier One Consulting, and Green Health Industries LLC.
During site visits, HdL observed that a portion of the licensed businesses had temporarily idled equipment and/or closed entire sections of their facility. O f the eight licensed businesses in the City, only three of the businesses appeared to be operating at normal capacity. Of the five remaining businesses, four were operating at partial capacity, and one had ceased operations altogether and removed equipment out of the facility.
The operators that HdL spoke with identified a number of local and s tatewide challenges that have resulted in the majority of licensed businesses being unable to reach their full operational capacity. One of the challenges consistently cited by businesses was the Public Benefit Fee structure negotiated with the City.
Summary of Existing Public Benefit Fee Structure
The negotiation of Public Benefits is one of the first steps involved in obtaining a cannabis business permit in Baldwin Park. According to the City , Public Benefits are intended to balance the “ substantial private benefits” conferred to the business owner with “ commensurate public benefits ” to the community.
HdL Companies Public Benefit Fee Study – April 2022 Page 2 of 11 Specifically, Public Benefits include fees that each operator must pay to the City, on an annual basis, for the privilege of conducting commercial cannabis activity in Baldwin Park.
Because Public Benefit Fees are independently negotiated with each cannabis operator, the term s of the fee may differ by business. In preparation of this report, HdL reviewed existing agreements with Baldwin Park cannabis operators, and identified the most common terms outlined in the Public Benefit section.
These terms, summarized below, serve as the basis of analysis for the remainder of this fiscal report.
The Public Benefit Fee is set at an initial rate of $10 per square foot , applied to a maximum of 22,000 square feet, regardless of the actual size of the proposed cannabis facility. Because n one of the existing licensed businesses in Baldwin Park currently utilize the maximum 22,000 square feet of commercial cannabis space, the Public Benefit Fee can be thought of as flat fee of $220,000, charged to each business for the right to engage in commercial cannabis activity at any scale. Businesses have the option to expand their operation up to a maximum of 22,000 square feet under their existing permit.
In addition to a flat fee of $220,000, existing businesses are required to pay a separate fee of $50,000 to the City to “mitigate the impact of the cannabis business on the City and its resources which includes, but is not limited to… part of a police officer’s salary and/or benefits.” By including this $50,000 fee, businesses are required to pay a total Public Benefit of $270,000 to the City during the first year of operation. The fee increases by $55,000 in Year Two and Year Four. After Year Five, the fee is subject to reassessment by the City. If the City and Owner cannot agree to new Public Benefit Fee terms by the conclusion of Year Five, the permit will automatically terminate.
The methodology used by the City of Baldwin Park to generate Public Benefits from cannabis businesses is unique among California cities. HdL is not aware of any other City that sets a maximum of 22,000 square feet for all business types, and charges a fee based upon the maximum square footage allowed. One possible precedent for this approach is the current State limitation on indoor cultivation, which prohibits any licensee from growing more than 22,000 of total canopy within a facility. However, this re striction applies to mature (i.e. flowering) plants only, and does not apply to immature (i.e. non-flowering) plants.
The State also does not apply this restriction to other types of commercial cannabis activity, including curing, trimming, processing, extracting, infusing, distributing, testing, etc. Baldwin Park includes all of these activities within its 22,000 square foot cap.
Despite the uncommon design, the next section of this report will compare Baldwin Park fees to the rates charged by other jurisdictions. This comparison is important because it will help determine whether current Public Benefit Fee rates are sustainable for businesses. If the Public Benefit Fee is consistently above what other jurisdictions charge cannabis businesses, the fee will negatively impact the ability of local businesses to compete with other operators throughout California. Over the long run, local fees that significantly exceed statewide averages may result in operators suspending operations and/or relocating to jurisdictions with a lower fee or tax structure.
Police
Mitig. Fee
Unit Year 1 Year 2 Year 3 Year 4 Year 5 Annual
Max Square Feet 22,000 22,000 22,000 22,000 22,000 N/A
$ / Sq. Ft. $10.00 $12.50 $12.50 $15.00 $15.00 N/A
Amount Due $220,000 $275,000 $275,000 $330,000 $330,000 $50,000 Public
Benefit Fee
HdL Companies Public Benefit Fee Study – April 2022 Page 3 of 11 Comparison of Baldwin Park Fee Structure to Other Jurisdictions In the last few years, as the legal cannabis market has matured and competition has increased, wholesale cannabis businesses have become much more sensitive to the total amount of fees and/or taxes charged by local jurisdictions. Statewide competition is driven by the fact that cannabis is a high-value, low mass product that is easy to package, store and transport. As a result, wholesale cultivators in Baldwin Park compete not only with licensed cultivators in Los Angeles County, but other large-scale growers in Santa Barbara County, Humboldt County and Mendocino County. Similarly, Baldwin Park manufacturers compete not only with manufacturers in Long Beach and Costa Mesa, but manufacturers as far away as San Diego, Santa Rosa, and Sacramento. Therefore, how Baldwin Park fees compare to the rates charged by other jurisdictions will have a much greater impact on the development of the local cannabis industry over the next five years than it did over the previous five years, when the Baldwin Park program fi rst started.
To compare across jurisdictions, it is important to first understand the key structural differences between the Baldwin Park Public Benefit Fee, and the standard methodology utilized by other cities to collect revenues from the cannabis industry. First, unlike most other cities in California, the City of Baldwin Park does not charge a cannabis business license tax. Instead, the Public Benefit F ee serves as the primary source of income that the City uses to offset cannabis impacts and fund other public needs. Most other cities rely upon a cannabis business license tax to generate local revenues.
From the perspective of businesses however, the Public Benefit Fee imposes a similar burden relative to a tax. As with a tax, the cost of the Public Benefit Fee must be paid by the business through its operating capital, with enough revenue remaining to support the business on an ongoing basis. From this standpoint, a direct comparison between the Public Benefit Fee and taxes imposed by other jurisdictions is possible, with some modifications.
Specifically, to make a comparison, it is necessary to first convert the Baldwin Park fee to an estimated “gross receipts” percentage. This conversion is necessary because most other cities in California charge a percentage tax on gross receipts, which fluctuates with actual revenues generated. Baldwin Park, by contrast, charges a flat fee of $10 per square foot, based upon an assumed maximum facility size of 22,000 square feet, plus an additional fee of $50,000 for police mitigation.
To create an apples-to-apples comparison, HdL prepared the following table, which converts the $270,000 fee to an annualized “gross receipts” rate, assuming a range of possible revenues generated by cannabis businesses. The range of revenues is based upon the average gross receipts that HdL has directly observed across the industry over the past 5 years:
In this table, the “Low” tier represents the bottom 30% of wholesale businesses in California, which HdL estimates earn an average gross receipt s of $500,000 per year . The “Mid” tier represents the next 30- 60% of wholesale businesses in California, which HdL estimates earn an average gross receipts of $1M per Low
(0-30%)
Mid
(30-60%)
High
(60-90%)
Top
(90-100%)
Est. Wholesale Revenue $500,000 $1,000,000 $4,000,000 $10,000,000 Baldwin Park Fee $270,000 $270,000 $270,000 $270,000
Equivalent Tax Rate 54.0% 27.0% 6.8% 2.7%
Revenue Tiers for Cannabis Wholesale BusinessesConversion of Baldwin Park Square Footage Fee to Gross
Receipts Rate
HdL Companies Public Benefit Fee Study – April 2022 Page 4 of 11 year. The “ High” tier represents the top 60-90% of wholesale businesses in California, which HdL estimates earn an average gross receipts of $4M per year. Finally, the “Top” tier represents the top decile of wholesale businesses in California, which HdL estimates earn an average of $10M+ per year.
Based on these projections, HdL estimates that small scale operators in Baldwin Park pay a Public Benefit Fee that is the equivalent of 54% of gross receipts. Medium scale operators in Baldwin Park pay a Public Benefit Fee equivalent to 27% of gross receipts. Large scale operators pay a Public Benefit Fee equivalent to 6.8% of gross receipts. And finally, top performers pay a Public Benefit Fee equivalent to 2.7% of gross receipts.
With this conversion, the Baldwin Park Public Benefit Fee can be compared to the rates charged by other jurisdictions:
As seen in this table, the Baldwin Park Public Benefit fee is competitive with other California jurisdictions for businesses that generate revenues within the “Top” tier cannabis operators in California, which HdL defines as the top 10% of wholesale businesses in the State. However, the Baldwin Park Public Benefit Fee is not competitive with rates charged by other jurisdictions for the remaining 90% of wholesale businesses. Based upon recent site visits , HdL does not believe that any of the businesses cur rently operating in Baldwin Park fall within the top 10% of cannabis businesses in the State. In fact, more than half of the existing businesses likely qualify as “Low” or “Mid” tier operators. During site visits, all of the business owners interviewed by HdL confirmed that they are having difficulty paying the annual Public Benefit Fee, and view the fee structure as unsustainable given their current size of operation.
Conversely, large scale operators estimated to generate revenues within the top 10% of businesses are charged a Public Benefit Fee that is competitive with rates charged by other municipalities. The higher City Cultivation(1)
Manufacturing Distribution
Costa Mesa 1% 1% 1%
Long Beach $12/sq ft 1% 1%
Los Angeles 2% 2% 1%
Pasadena $7/sq ft 2.5% 2%
Bellflower $15/sq ft 5% 5%
Santa Ana 6% 6% 6%
Maywood 6% 6% 6%
West Hollywood 7.5% 7.5% 7.5%
San Francisco 1 - 1.5% 1 - 1.5% 1 - 1.5%
Santa Rosa 2% 1% 0%
San Diego 2% 2% 2%
Sacramento 4% 4% 4%
Stockton 5% 5% 5%
Salinas $15/sq ft 5% 5%
San Jose 4% 3% 2%
Fresno $6/sq ft 4% 1%
Los Angeles Region
(1) Square footage rate applies to actual canopy under cultivation.
Other California Cities
Comparison of Cannabis Fees/Taxes
HdL Companies Public Benefit Fee Study – April 2022 Page 5 of 11 the projected revenues of the business, the more competitive the Public Benefit Fee becomes. This is evidenced by the fact that Eaze, one of largest cannabis operators in California, recently proposed opening a 36,000+ square foot distribution business in Baldwin Park. For a business of this size, a flat Public Benefit Fee may be preferable to a gross receipts tax, given the amount of revenues that can be generated from a facility of that scale.
For cities identified in the table as having a square footage tax on cultivation – Long Beach, Pasadena, Bellflower, Salinas, and Fresno – additional context is necessary to compare the rates to Baldwin Park. On their face, the cultivation rates appear similar to the Baldwin Park Public Benefit Fee of $10 per square foot. However, there are notable differences in the application of the cultivation tax in the identified jurisdictions, which collectively reduce the overall burden to businesses. Specifically, all five of the cities identified apply the cultivation square footage tax to actual square footage of canopy utilized. For example, if a cultivation facility in Long Beach grows 5,000 square feet of cannabis within an 8,000 square foot facility, that business would pay $60,000 ($12 x 5,000 sq. ft.) in annual business license taxes to the City. Canopy measurements in these cities also exclude other aspects of cultivation operation, including rooms dedicated to drying, curing, trimming, and storing. As a result, the total cultivation tax es charged to indoor grows in these cities are significantly lower than those charged in Baldwin Park, despite similar square footage rates quoted in the table.
Additional Feedback from the Local Cannabis Industry Regarding the Public Benefit Fee During HdL site visits to Baldwin Park facilities , local operators identified other challenges related to the Public Benefit Fee, which go beyond the overall size of the fee. These challenges include the timing of fee payments, method of fee calculation, perceived inequities in the application of the fee, and other issues.
A summary and description of these challenges is provided below. • Timing of Fee Payments – Most of the terms negotiated with existing businesses require the operators to begin paying the Public Benefit Fee within 6 months of execution. Only after businesses execute an agreement with the City are they authorized to submit facility plans to initiate construction. Due to the number of tenant improvements typically required for wholesale businesses, the minimum timeline necessary to complete plan check and construction is over one year. As a result, most businesses that operate in the City were unable to offset Public Benefit Fee payments with revenues from business operation. Many of these businesses report struggling to come up with the necessary capital to cover fee payments due prior to opening. • I
nequities in the Application of the Public Benefit Fee – Due to the current method of calculating square footage, the Public Benefit Fee is considered a regressive fee. R egressive fee structures absorb a larger percentage of operating revenues the smaller the business , and are considered less equitable than progressive fee structures, where payments increase with the amount of revenues generated by the business.
• Fe es Fail to Adjust with Market Conditions – Because the Public Benefit Fee is charged as a flat rate to cannabis businesses, the fee does not adjust to changing conditions in the cannabis industry. In theory, this can be beneficial to businesses in situations where the price of wholesale product is increas ing in the open market, relative to where prices stood when business es first agreed to Public Benefit Fee terms . At the current moment however, the price of wholesale cannabis is falling precipitously, and has reached historic lows in California. The price shocks are due, in part, to an oversaturation of wholesale cannabis goods, combined with a limited number of licensed retailers that sell cannabis products to consumers. Some Baldwin Park businesses
HdL Companies Public Benefit Fee Study – April 2022 Page 6 of 11 report being unable to sell their cannabis goods to distributors at cost. A s a result, the total percentage of revenue that Baldwin Park operators must set aside to pay the Public Benefit Fee has increased, reducing the ability of businesses to generate a profit.
Options to Amend the Public Benefit Fee
Should the City Council wish to amend the structure of the Public Benefit Fee, HdL has identified the following options for consideration:
Option #1 – Public Benefit Fee Based Upon Actual Square Footage Rather than charging businesses a fee based upon a maximum facility size of 22,000 square feet, the City could amend its square footage fee to reflect the actual square footage utilized by each business. A fee designed in this manner would be categorized as a fee based on area of impact, under the assumption that the greater the size of the operation, the higher the impact on the surrounding neighborhood and City services. The fee would also be more equitable to operators, to the extent that actual square footage is more reflective of annual revenues generated by businesses.
The table below provides an example of how an actual square footage fee would work in practice. The base fee amounts could be increased/decreased at the discretion of City Council. In this example, the fee starts at $100,000 per business, and increases in increments of $25,000.
Actual square footage is measured using the State definition of cannabis business “premise,” which means the “designated structure(s) and land specified in the application that is owned, leased, or otherwise held under the control of the licensee where the commercial cannabis activity will be or is conducted.” Using this definition, the Public Benefit Fee w ould apply to the total square footage of any room where the cultivation, manufacture, distribution, testing, processing, storing, packaging, labeling, possession, transportation, or delivery of cannabis goods takes place. Any rooms not approved for cannabis activity (e.g. restrooms, break rooms, kitchens, office space, vacant space, loading docks, etc.) would not count towards the calculation of actual square footage.
To simplify administration of the program, HdL recommends charging an actual square footage fee that is tiered, based upon the total size of the premise area. By setting tiers, the City will be able to avoid having to recalculate the exact square footage of each business premise, as smaller rooms may be repurposed for cannabis or non-cannabis activity over time. Thus, minor modifications to the use of individual rooms within a facility will likely not trigger movement into a new tier.
Square Feet of Cannabis Premise Tiered Fee
0 - 2,500 Sq. Ft. $100,000
2,501 - 5,000 Sq. Ft. $125,000
5,001 - 7,500 Sq. Ft. $150,000
7,501 - 10,000 Sq. Ft. $175,000
10,001 - 12,500 Sq. Ft. $200,000
12,501 - 15,000 Sq. Ft. $225,000
15,001 - 17,500 Sq. Ft. $250,000
17,501 - 20,000 Sq. Ft. $275,000
20,001 - 22,000 Sq. Ft. $300,000
22,001 + Sq. Ft. $450,000
HdL Companies Public Benefit Fee Study – April 2022 Page 7 of 11 In the table above, HdL has assumed that the actual square footage fee would replace the existing Public Benefit Fee, including both the $10 per square foot of maximum area, and the $50,000 police mitigation fee. Alternatively, the City could retain a separate police mitigation fee, which would increase the number presented above by $50,000 for all licensees. It should be noted, however, that including a flat $50,000 fee would impose a more regressive fee structure than what is proposed above.
An actual square footage fee has the advantage that the amount of annual fee is generally known in advance by both the City and cannabis businesses, as it is keyed to the premise area. This allows all parties to budget accordingly. Variances in the actual amount of area being utilized could be accommodated through advanced notification, monitoring and regular inspections. However, because the amount of fee paid does not automatically increase with inflation, it is necessary to include a mechanism to adjust the actual square footage fee annually in accordance with the Consumer Price Index (CPI).
It is important to note , however, that the utilization of a square footage fee is uncommon for non - cultivation business types in California. Therefore, HdL has included Option #1 primarily as a means for the City to right size its Public Benefit Fee program, while also avoiding any dramatic shifts from the existing model. In making this recommendation, HdL recognizes that the City and/or existing businesses may be hesitant to move too abruptly from the existing fee structure. However, should the City cho ose to pursue an entirely different model for charging the Public Benefit Fee, HdL has provided Option #2 , which is more in line with the method utilized by other cities to generate revenues from the cannabis industry.
Option #2 – Public Benefit Fee Based upon Gross Receipts + Square Feet of Cultivation Fee Structure As an alternative to charging a square footage fee across all business types, the City may wish to adjust the Public Benefit Fee model to be more in line with the rates used by other jurisdictions in California.
Should the City take this approach, HdL recommends calculating the Public Benefit Fee using the following methodology:
• Cultivation – Fee based upon total square feet of canopy under cultivation; • Manufacturing – Fee based upon a percentage of gross receipts; • Distribution – Fee based upon a percentage of gross receipts; • Testing – Fee based upon a percentage of gross receipts.
Using this model, c ultivation businesses would continue to be charged a square footage fee . However, the basis of the cultivation fee would be square feet of actual plant canopy, as opposed to a 22,000 square foot maximum set by the City. HdL recommends maintaining a square footage fee on cultivation due to the fact that, unlike other business types, actual canopy is a fair representation of revenues generated by the business.
All other wholesale business types, including Manufacturing, Distribution, and Testing Laboratories, would be charged a Public Benefit Fee based upon gross receipts. Some of the advantages of using a gross receipts methodology are as follows:
• For Manufacturers, Distributors and Testing Laboratories, annual gross receipts provide a more accurate representation of business ability to pay for public benefits than a square footage rate.
For example, a manufacturing facility can generate revenues that fall anywhere from the “Low” tier of $500,000, up to the “Top” tier of $10M+, all within similarly sized facilities. Manufacturing
HdL Companies Public Benefit Fee Study – April 2022 Page 8 of 11 revenue has as much to do with operator experience, product quality, type of equipment, and third-party relationships as it has to do with the total square feet of the facility. Gross receipts, by no means a perfect metric, is therefore more representative of the overall size and scale of a cannabis business operation for non-cultivation business types. • A gross receipts fee automatically adjusts to whatever wholesale price conditions exist in the cannabis market at any given time. For instance, if the price of cannabis flower or distillate falls by 50%, a gross receipts fee will automatically adjust to reflect this reality. Businesses will receive tax relief during economic downturns in the cannabis market , and contribute more in public benefits to the community when more favorable conditions exist. • A gross receipts fee is, by definition, spread more equitably across cannabis businesses than a flat fee per business. Specifically, businesses that generate more in revenues will contribute a greater share of Public Benefits to the community. Businesses that generate less in revenues, and are therefore less able to absorb added costs, will contribute a smaller share of overall Public Benefits relative to their larger competitors.
• Most cities that allow wholesale cannabis activity currently charge a gross receipts rate . By modelling the Public Benefit Fee on other jurisdictions, the City will be better able to ensure that the Public Benefit Fee stays competitive with other jurisdictions over time.
Some of the disadvantages of a gross receipts fee are as follows:
• The total Public Benefit Fees collected by the City may fluctuate more under a gross receipts model than with a fee based upon square feet. This can create challenges to the City during the annual budgeting process, which relies upon accurate revenue forecasting to allocate City resources. The annual fluctuation of the fee can also create challenges for businesses, who may prefer the certainty of a square footage fee for their own internal budgeting needs. • A gross receipts fee requires that businesses undergo periodic financial audits, to ensure that operators are accurately reporting and remitting revenues to the City. In most cities, cannabis businesses are required to absorb the cost of the audit through a third-party fee. • The administration of a gross receipts fee is more challenging than a square footage rate, due to complex financial and accounting structure sometimes used by cannabis businesses, including split processing, pass-through revenue, non-arms-length product transfers, and other practices in the industry. As a result, the City would be expected to develop administrative rulings to calculate the gross receipts fee in special situations.
When HdL discussed the concept of a gross receipts fee with businesses during site visits, overall reactions were mixed. Some businesses appeared open to the concept, understanding that the methodology is widely used across the state. Other businesses were opposed to the idea, based on the disadvantages described above.
Should the City decide to pursue a fundamental restructuring of the Public Benefit Fee, HdL recommends that the rates for cannabis business activities be set within the following range:
HdL Companies Public Benefit Fee Study – April 2022 Page 9 of 11
The recommended fees are designed to be competitive with the prevailing tax rates imposed by other cities in California. As discussed earlier, Public Benefit Fees that consistently exceed the amounts charged by other jurisdictions will place local operators at a competitive disadvantage relative to other cannabis businesses in the State. The proposed fees are also intended to keep the cumulative fee/tax burden of cannabis businesses low, to allow the local industry to compete against the illicit market . Higher ra tes create price disparities between legal and illegal cannabis, making it harder for the regulated industry to compete with the illicit market.
Fiscal Impact of Amending the Public Benefit Fee
Projecting the fiscal impact of proposed changes to the Public Benefit Fee is complicated by the fact that cannabis businesses in Baldwin Park are currently in a state of flux. As discussed earlier, over half of the licensed businesses in the City are operating at less than full capacity. Whether these businesses will eventually ramp up to full production, continue operating at limited capacity, or close their operation altogether is difficult to predict.
Because of this volatility, HdL cautions against interpreting the following projections as long-term estimates for Public Benefit Fee revenues. Rather, the projections are intended to compare potential fee structures at a point in time, assuming a static cannabis market. The projections are also based upon a very specific set of assumption, identified below. Using these assumptions, HdL has developed the following comparison of short-term Public Benefit Fee revenues for the three methodologies identified earlier in this report: 1) Current Fee Structure; 2) Actual Square Footage Fee Structure; and 3) Gross Receipts + Cultivation Square Feet Fee Structure.
Key Assumptions:
1. Under the “Current Public Benefit” scenario, HdL has only included businesses that are currently open and operating. HdL recognizes that under the existing Public Benefit Fee structure, pending applicants are required to begin paying the fee prior to opening and operating. As a result, projected revenue for the “Current Public Benefit” scenario is likely understated. However, HdL is also aware that a significant portion of pending applications have either stalled or terminated the process. As a result, HdL has not considered any of the revenues from pending businesses to be sustainable revenues for purposes of comparing Public Benefit Fee models.
Public Benefit Fee Structure:
Current Public
Benefit Fee
Structure
Actual Square
Footage Fee
Structure
Gross Receipts +
Cult. Sq. Ft. Fee
Structure
Projected Annual Revenues* $1,890,000 $1,225,000 $412, 986 Fiscal Impact of Public Benefit Fee Models
Cannabis Business Type HdL Recommended Rate HdL Maximum Rate Cultivation $7 per square foot $10 per square foot
Manufacturing 2.5% of gross receipts 4% of gross receipts Distribution 2% of gross receipts 3% of gross receipts
Testing 1% of gross receipts 2.5% of gross receipts
HdL Companies Public Benefit Fee Study – April 2022 Page 10 of 11
2. The “Current Public Benefit” scenario assumes that licensed businesses will continue operating, and remitting the Public Benefit Fee to the City, pursuant to the terms of their permits.
3. Under the “Actual Square Footage” scenario, HdL assumes that businesses are utilizing 70% of the reported size of their facility for actual cannabis activity , based upon experience HdL has had inspecting cannabis facilities throughout the state.
4. Under the “Gross Receipts” scenario, HdL assumes that the eight (8) businesses currently licensed in the City can be categorized into the following revenue tiers:
a. Two (2) of the businesses generate revenues in the “Low” tier ($500,000); b. Two (2) of the businesses generate revenues within the “Mid” tier ($1,000,000); c. Three (3) of the businesses generate revenues in the “High” tier ($4,000,000), and; d. One (1) of the businesses is closed and no longer operating.
5. None of the revenue scenarios assume that businesses currently moving through the application process will open and operate. Should any of the pending applicants receive a license to operate, all three revenue scenarios will increase proportionally.
Discussion of Fiscal Impacts
Under the assumptions identified above, HdL projects that maintaining the Current Public Benefit Fee Structure would result in the highest short-term revenue stream for the City. However, unless market conditions change, the Current Fee Structure will likely result in a portion Baldwin Park cannabis operators permanently closing their facilities. As a result, HdL is not confident that the projected revenue streams identified under the Current Public Benefit Fee Structure are sustainable over the medium or long-term.
Specifically, HdL notes that businesses identified as having “Low,” “Mid,” or “High” revenues may begin to divest from Baldwin Park, and relocate cannabis activity to cities or counties with lower fee or tax rate structures, if the Current Public Benefit Fee Structure is not amended in some way.
Adopting an Actual Square Footage Fee Structure result s in the second highe st revenue stream for the City. The design of the Actual Square Footage Fee Structure is intended to provide fee relief to businesses, while also protecting existing revenue streams to the City. It should be noted, however, that the Actual Square Footage Fee Structure would remain regressive for small and medium sized businesses, though less so compared to the Current Public Benefit Fee Structure.
Transitioning to a Gross Receipts + Cultivation Square Footage Fee Structure would result in a reduction in short-term revenues generated by the City. However, the overall reduction in medium and long -term revenues may be mitigated if the transition to a Gross Receipts + Cultivation Square Footage Fee Structure results in increased commercial cannabis activity locally. Due to the short-term impact on City revenues, HdL recommends this option only if the primary goal of the City is to right -size the Public Benefit Fee to be competitive with surrounding jurisdictions, and safeguard against businesses closing and/or relocating to other cities in California. Conversely, if the goal is to maximize Public Benefits to the community, the City may wish to pursue the Actual Square Footage Fee Structure rather than a gross receipts model.
HdL Companies Public Benefit Fee Study – April 2022 Page 11 of 11 Additional Feedback from Cannabis Businesses
During site visits, cannabis operators provided HdL with additional feedback on their experiences with the Baldwin Park cannabis program. Because this feedback falls outside the scope of assessing the Public Benefit Fee, HdL has included a summary of business comments at the end of this report. While these challenges are not directly related to the Public Benefit Fee, they have been included in this analysis because they provide important context for the City Council to consider when setting overall polic y for the industry.
• Fire Plan Check – Baldwin Park cannabis operators complain about the length of time required to complete the LA County Fire plan check and inspection process. Operators claim that the process takes longer than other jurisdictions, which places Baldwin Park and other LA County cities at a competitive disadvantage relative to other jurisdictions. HdL did not perform any due diligence to verify this claim, as it falls outside of the scope of this study.
• Self-Distribution – Local businesses expressed frustration with the initial policy decision made by the City to issue only one distribution license in Baldwin Park, and prohibit all other operators from distributing cannabis goods . As a result of this policy, businesses were forced to rely upon third-party distributors to move cannabis goods to market . During HdL site visits, nearly all Baldwin Park operators requested the ability to self -distribute cannabis goods, to both increase profit margins and prov ide greater flexibility to meet customer demand . Recently, the City changed this policy to allow multiple businesses to apply for a distribution license. However, to be issued a distribution license, operators must pay an additional Public Benefit Fee. The existing businesses that HdL spoke with consider this option to be cost prohibitive, given their intention is limited to self -distribution only , which would not result in a sufficient increase in revenues to offset an additional fee. As a result, most licensed businesses do not consider self-distribution to be a viable option in Baldwin Park at this time.
______________________________________________________________________
MODEL
COMMERCIAL CANNABIS AGREEMENT
by and between
CITY OF BALDWIN PARK
and
______________________________
Relating to
Commercial Cannabis Activity – [Cultivation, Manufacturing, Distribution, Retail]1
______________________________________________________________________
1 Language in [brackets] subject to change depending on license type.
COMMERCIAL CANNABIS AGREEMENT
ARTICLE 1. PARTIES AND DATE.
This Commercial Cannabis Agreement dated ________________, 202 3 is Case No. __________. This Agreement is entered into between (i) the CITY OF BALDWIN PARK , a California municipal corporation ("CITY"), and (ii) __________________________ ("LICENSEE") ("AGREEMENT"). This AGREEMENT shall become effective on the Effective Date defined in Section 3.1.17 below.
ARTICLE 2. RECITALS.
Recitals specific to LICENSEE…
WHEREAS, by this AGREEMENT, the Parties wish to set forth terms and conditions for the operation of commercial cannabis activity in the CITY; specifically, [cultivation, manufacturing, distribution, retail].
NOW, THEREFORE, in consideration of the promises, covenants, agreements, and understandings set forth herein, the parties agree as follows:
ARTICLE 3. GENERAL TERMS.
Definitions and Exhibits. The following terms when used in this AGREEMENT shall be defined as follows:
3.1.1 "Agreement" means this Commercial Cannabis Agreement.
3.1.2 “Application” means the CITY’s Commercial Cannabis Permit Application- [Cultivation, Manufacturing, Distribution, Retail], submitted by LICENSEE in furtherance of this AGREEMENT, upon which the CITY has detrimentally relied upon in executing same.
3.1.3 “BPMC” means Baldwin Park Municipal Code.
3.1.4 “California Cannabis Laws” means “MAUCRSA,” and the regulations adopted and promulgated by the State Licensing Authorities pursuant to “MAUCRSA”, as such laws and regulations may be amended from time to time.
3.1.5 “Cannabis” means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. "Cannabis" also means the separated resin, whether crude or purified, obtained from cannabis. "Cannabis" also means marijuana as defined by Section 11018 of the California Health & Safety Code. "Cannabis" does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. For the purpose of this agreement, “cannabis” does
not mean industrial hemp as that term is defined by Section 81000 of the California Food & Agricultural Code or Section 11018.5 of the California Health & Safety Code.
3.1.6 “Cannabis Product” means cannabis that has undergone a process whereby the plant material has been transformed into a concentrate, including, but not limited to, concentrated cannabis, or an edible or topical product containing cannabis or concentrated cannabis and other ingredients.
3.1.7 “Certificate of Occupancy” (COO) means a document issued by the CITY stating that the Property is suitable for use and occupancy for Commercial Cannabis Activity by the LICENSEE, that it is considered compliant with the building code and safety standards imposed by the CITY , and that the State has issued a commercial cannabis license to the LICENSEE to operate on the Property.
3.1.8 "CITY" means the CITY of Baldwin Park, a California municipal corporation.
3.1.9 "Commercial Cannabis Activity" has the same meaning as that term is defined under MAUCRSA and includes any legal use under MAUCRSA and the BPMC, including without limitation, the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery, or sale of cannabis and Cannabis Products as regulated under Chapter 5.18 of the BPMC.
3.1.10 "Commercial Cannabis Business License" or “License” means a commercial cannabis business permit issued by the CITY pursuant to Chapter [127/128] of the BPMC to a commercial cannabis business and is required before any Commercial Cannabis Activity may be conducted in the CITY.
3.1.11 [“Community Benefit Fee” has the meaning set forth in Article 5, of this AGREEMENT.]
3.1.12 Omitted.
3.1.13 “Days" mean calendar days unless otherwise specified.
3.1.14. Omitted.
3.1.15 "Effective Date" means the day this AGREEMENT is approved and adopted by the City Council of the CITY and signed by the Mayor of the CITY, or his designee.
3.1.16 "Existing Project Approvals" if applicable, means all Project Approvals granted or issued prior to or on the Effective Date. Existing Project Approvals include the approvals set forth in Section 3.27 and all other approvals which are a matter of public rec ord prior to or on the Effective Date.
3.1.17 "Existing Land Use Regulations" if and where applicable, means all Land Use Regulations in effect on the Effective Date. Existing Land Use Regulations include all regulations that are a matter of public record on the Effective Date as they may be modified by the Existing Development Approvals.
3.1.18 Omitted.
3.1.19 “Landlord Consent” if applicable, means that the fee simple absolute owner (“Property Owner”) has granted the LICENSEE with written authorization to use the Property for commercial cannabis operations.
3.1.20 “Land Use Regulations" if and where applicable, means all ordinances, resolutions, codes, policies and procedures, adopted by the CITY governing the development and use of land, including the permitted use of land, the density or intensity of use, subdivi sion requirements, the maximum height and size of proposed buildings, the provisions for reservation or dedication of land for public purposes, and the design, improvement and construction and initial occupancy standards and specifications applicable to the Development of the Property.
3.1.21 “Licensee” has the meaning set forth in the preamble of this AGREEMENT, above. A person who has been issued a commercial cannabis business permit by the CITY, under this chapter for a licensed premise.
3.1.22 “Licensee’s Application” means the application for m of a Commercial Cannabis Business License submitted by LICENSEE to the CITY, a copy of which is attached as Attachment No. 3.
3.1.23 “Major Amendment: means an amendment that shall have a material effect on the terms of this Agreement which shall require approval by the City Council pursuant to California law.
3.1.24 “MAUCRSA” means the Medicinal and Adult -Use Cannabis Regulation and Safety Act, codified as Business and Professions Code Section 26000 et seq., as may be amended from time to time.
3.1.25 “Medicinal” with regard to cannabis or Cannabis Products means cannabis or Cannabis Products, respectively, intended to be sold or used for medicinal purposes as set forth in MAUCRSA.
3.1.26 “Minor Amendment” means a clerical amendment to this Agreement that shall not materially affect the terms of this Agreement and is subject to approval by the Chief Executive Officer.
3.1.27 “Mortgagee" if applicable, means a mortgagee of a mortgage, a beneficiary under a deed of trust or any other security-device lender and its successors-in interest.
3.1.28 "Processing Fees" means the normal and customary application, filing, plan check, permit fees for land use approvals, design review, tree removal permits, building permits, demolition permits, grading permits, and other similar permits and entitlements, an d inspection fees, which fees are charged to reimburse the CITY's expenses attributable to such applications, processing, permitting, review and inspection and which are in force and effect on a general basis at such time as said approvals, permits , review, inspection or entitlements are granted or conducted by the CITY.
3.1.29 "Project" means the development of the Property contemplated by this AGREEMENT, as such Project may be further defined, enhanced, or modified pursuant to the provisions of this AGREEMENT. The Project shall consist of this AGREEMENT, the Application, any and all entitlements, licenses, and permits related to the Project.
3.1.30 "Project Approvals" if applicable, means all other entitlements for the development of the Property in furtherance of the Project, including any and all conditions of approval, subject to approval or issuance by the CITY in connection with Project. "Projec t Approvals" also include both the Existing Project Approvals and the Subsequent Project Approvals approved or issued by the CITY that are consistent with this AGREEMENT.
3.1.31 "Project Development" if applicable, includes grading, construction or installation of public and private facilities and the right to maintain, repair or reconstruct any private building, structure, improvement or facility after the construction and completion thereof; provided, however, that such maintenance, repair, or reconstruction take place within the Term of this AGREEMENT on the Property.
3.1.32 “Project Plan" if applicable, means the Project Approvals and the Existing Land Use Regulations applicable to development of the Property for the Project, as modified and supplemented by Subsequent Project Approvals.
3.1.33 "Property" means the real property commonly known as and identified in Attachment No. 1, herein ( common address, APN, and legal description of the Property), which is incorporated by this reference. LICENSEE may modify the location or locations , change locations, or add locations to the Property, pursuant to Section 128.12 of the BPMC.
3.1.34 “Reasonable” means using due diligence to accomplish a stated objective that the subject party is capable of performing or providing under the circumstances in a manner that is consistent with the intent and objective of the AGREEMENT.
3.1.35 “Reservations of Authority" means the rights and authority excepted from the assurances and rights provided to LICENSEE under this AGREEMENT and reserved to the CITY as described in Section 4.4.
3.1.36 Omitted.
3.1.37 “State” means, collectively, the State of California and the Department of Cannabis Control of the State.
3.1.38 "Subsequent Project Approvals" if applicable, means all future discretionary approvals and all ministerial Project Approvals required subsequent to the Effective Date in connection with development of the Property, including without limitation, subdivision improvement agreements that require the provision of bonds or other securities. Subsequent Project Approvals include, but are not limited to, all excavation, grading, building, construction, demolition, encroachment, or street improvement permits, occupan cy certificates, utility connection authorizations, or other permits or approvals necessary, convenient, or appropriate for the grading, construction, marketing, use and occupancy of the Project within the Property at such times and in such sequences as LICENSEE may choose consistent with the Project and this AGREEMENT.
3.1.39 "Subsequent Land Use Regulations" if applicable, means any Land Use Regulations defined in Section 3.1.12 that are adopted and effective after the Effective Date of this AGREEMENT.
3.1.40. [“Tax” means that commercial cannabis sales tax approved by the voters of the CITY on November 8, 2022, which shall not exceed five percent (5%), which is initially set
by the Parties at four percent (4%). The Tax shall be imposed on all gross receipts of LICENSEE, including, but not limited to, all products and accessories associated with the use and consumption of commercial cannabis.]
3.2 Binding Effect of AGREEMENT . The Property is hereby subject to terms and conditions of this AGREEMENT. Subject to LICENSEE's receipt of all Development Approvals relative thereto, the Development of the Property is hereby authorized and shall, except as otherwise provided in this AGREEMENT, be carried out only in accordance with the terms of this AGREEMENT.
3.3 Ownership of Property; Landlord Consent. LICENSEE represents and covenants that it has a legal or equitable interest in the Property, as defined herein. In the event that LICENSEE is not the fee simple absolute owner of the Property, LICENSEE shall provide CITY with written Landlord Consent.
3.4 Term. The parties agree that the Term of this AGREEMENT shall be five (5) years commencing on the date the Certificate of Occupancy is issued for the Project subject to the written extension and early termination provisions described in this AGREEMENT. Upon termination of this AGREEMENT, this AGREEMENT shall be deemed terminated and of no further force and effect, except terms that are expressly stated in this AGREEMENT to survive termination without the need of further documentation from the parties hereto. The LICENSE will expire at the close of the 5 th year and will require the LICENSEE to reapply with the CITY for a new LICENSE.
3.4.1. AGREEMENT Renewal . The Chief Executive Officer (CEO) shall determine whether to renew the AGREEMENT for an additional five (5) years. The CEO shall use the CCA Checklist, attached hereto, to determine renewal of the AGREEMENT. If the CEO determines to renew, the AGREEMENT shall be forwarded to the City Council for formal approval as a consent calendar item.
3.4.2. Non-Renewal of AGREEMENT/Cure Period. If the CEO determines not to renew the AGREEMENT; he/she shall provide the LICENSEE with ability to remedy and/or cure the deficiencies set forth in the CCA Checklist, attached hereto, to be cured within sixty (60) days from date of written notice of Non -Renewal from the CEO to the LICENSEE. If the LICENSEE does not cure within the sixty (60) day period, the AGREEMENT shall not be renewed.
3.4.3. Appeal to the City Council. The LICENSEE shall appeal any Non-Renewal of AGREEMENT of the CEO to the City Council, within sixty (60) days from written notice of Non- Renewal. The decision of the City Council re Non -Renewal of AGREEMENT shall be final and binding.
3.5 Extension of Term . This AGREEMENT may only be extended by mutual agreement of CITY and LICENSEE in writing, following approval by the City Council, and signed by Mayor and the LICENSEE. If the City Council does not approve such an extension, any such agreement is null and void.
3.6 Automatic Termination. This AGREEMENT shall automatically terminate upon the happening of any of the following material events:
3.6.1. Revocation of License by the State and/or the CITY, pursuant to the terms in this AGREEMENT, which prohibits the LICENSEE from operation of a commercial cannabis facility in the CITY, following any applicable notice or cure period and provided that LICENSEE has exhausted all administrative remedies and can neither appeal nor reapply for a License within one (1) calendar year of the revocation; or
3.6.2. Abandonment and/or Surrender by LICENSEE of State and/or CITY License, pursuant to the terms in this AGREEMENT, which abandons and/or surrenders the License to operate a commercial cannabis [cultivation, manufacturing, distribution, retail] facility in the CITY, with such abandonment/surrender occurring only following either (1) written notice by LICENSEE affirming its intention to abandon/surrender the License by a date certain, or (2) at least one (1) calendar year of inactivity at the Project, as determined exclusively by the CITY, in good faith.
3.7 Effect of Automatic Termination. The Automatic Termination of this AGREEMENT (as set forth in section 3. 6, above) shall constitute termination of all land use entitlements and permits approved for the LICENSEE and/or the Property , pursuant to the terms of this AGREEMENT. Upon the termination of this AGREEMENT, no party shall have any further right or obligation hereunder except with respect to any obligation to have been performed prior to such termination, or with respect to any defau lt in the performance of the provisions of this AGREEMENT, which has occurred prior to such termination, or with respect to any obligations which are specifically and expressly set forth as surviving this AGREEMENT. In the event of abandonment and/or surrender of License by LICENSEE, LICENSEE shall pay all fees due and payable to the CITY, up to date of abandonment and/or surrender. CITY shall immediately notify the State of any termination of this AGREEMENT.
3.8 Notices.
3.8.1 Notice Defined. As used in this AGREEMENT, notice includes, without limitation, the communication of notice, request, demand, approval, statement, report, acceptance, consent, waiver, appointment, or other communication required or permitted hereunder.
3.8.2 Written Notice and Delivery . All notices shall be in writing and shall be considered given:
(i) when delivered in person to the recipient named below; or three (3) days after deposit in the United States mail, postage prepaid, addressed to the recipient named below; or
(ii) on the date of personal delivery shown in the records of the delivery company after delivery to the recipient named below; or
(ii) on the date of delivery by facsimile transmission to the recipient named below if a hard copy of the notice is deposited in the United States mail, postage prepaid, addressed to the recipient named below. All notices shall be addressed as follows:
If to the CITY: Chief Executive Officer
14403 E. Pacific Avenue
Baldwin Park, CA 91706
With copy to:
Office of the City Attorney
14403 E. Pacific Avenue
Baldwin Park, CA 91706
If to LICENSEE:
TBD
Attn: TBD
With copy to:
TBD
Attn: TBD
With copy to:
TBD
3.8.3 Address Changes. Either party may, by notice given at any time, require subsequent notices to be given to another person or entity, whether a party or an officer or representative of a party or to a different address, or both. Notices given before actual receipt of notice of change shall not be invalidated by the change.
3.9 Validity of this AGREEMENT . LICENSEE and the CITY each acknowledge that neither party has made any representations to the other concerning the enforceability or validity of any one or more provisions of this AGREEMENT. The parties acknowledge and agree that neither party shall allege in any administrative or judicial proceeding that the entering into or the performance of any obligations created in this AGREEMENT violates federal or state law, with respect to all federal, state, and local statutes, ord inances, or regulations in effect as of the Effective Date.
3.10 [Tax/Community Benefit Fee] . As defined herein , is due and payable on a quarterly basis to the CITY, following the close of each fiscal quarter, pursuant to Section 3.11, below.
3.11 Commercial Cannabis Banking. The CITY will not accept cash payments for any fees or costs associated with this AGREEMENT. LICENSEE shall establish a banking relationship with a bank that allows for payments to the CITY via company check, cashier’s check, or money order. Alternatively, LICENSEE, may wire funds and/or ACH directly to the CITY.
ARTICLE 4. COMMERCIAL CANNABIS PROJECT.
4.1 Right to Develop . LICENSEE shall, subject to the terms of this AGREEMENT, develop the Property with a commercial cannabis facility in accordance with and to the extent of the Application. The Property shall remain subject to all Subsequent Project Approvals required to complete the Project as contemplated by the Application.
4.2 Effect of AGREEMENT on Land Use Regulations . Except as otherwise provided by this AGREEMENT, the rules, regulations and official policies and conditions of approval
governing permitted uses of the Property, the density and intensity of use of the Property, the maximum height and size of proposed buildings, and the design, improvement, occupancy and construction standards and specifications applicable to development of the Property shall be the Application. Provided, however, that in approving tentative subdivision maps, the CITY may impose ordinary and necessary dedications for rights -of-way or easements for public access, utilities, water, sewers, and drainage, having a nexus with the particular subdivision; provided, further, that the CITY may impose and will require normal and customary subdivision improvement agreements and commensurate security to secure performance of LICENSEE's obligations thereunder.
4.3 Changes to Project. The parties acknowledge that changes to the Project may be appropriate and mutually desirable. The CITY shall act on such applications, if any, in accordance with the Existing Land Use Regulations, subject to the Reservations of Authority, or except as otherwise provided by this AGREEMENT. If approved, any such change in the Existing Development Approvals shall be considered an additional Existing Project Approval.
4.4 Reservations of Authority. Any other provision of this AGREEMENT to the contrary notwithstanding, the Project shall be subject to subsequently adopted ordinances, resolutions ("Subsequent Land Use Regulations" or sometimes referred to as "Reservation of Authority") on the following topics:
4.4.1 Processing Fees imposed by the CITY to cover the estimated or actual costs to the CITY of processing applications for the Project or for monitoring compliance with any requirements for approval, granted or issued, which fees are charged to reimburse the CITY's lawful expenses attributable to such applications, proces sing, permitting, review, and inspection and which are in force and effect on a general basis at such time as said approvals, permits, review, inspection, or entitlement are granted or conducted by the CITY.
4.4.2 Procedural regulations relating to hearing bodies, petitions, applications, notices, findings, records, hearings, reports, recommendations, appeals and any other matter of procedure.
4.4.3 Regulations governing engineering and construction standards and specifications including, any and all uniform codes adopted by the State of California and subsequently adopted by the CITY.
4.4.4 Regulations which may be in conflict with the Development Plan, but which are reasonably necessary to protect the public health and safety; provided, however, the following shall apply:
(a) That to the extent possible, such regulations shall be applied and construed so as to provide LICENSEE with the rights and assurances provided in this AGREEMENT.
(b) That such regulations apply uniformly to all new development projects of the same uses within the CITY.
4.4.5 Regulations that do not conflict with the Project. The term "do not
conflict" means new rules, regulations, and policies which: (a) do not modify the Project, including, without limitation, the permitted land uses, the density or intensity of use, the phasing or timing of the Project, the maximum height and size of propos ed buildings on the Property, provisions for dedication of land for public purposes and Development Exactions, except as expressly permitted elsewhere in this AGREEMENT, and standards for design, development and construction of the Project; (b) do not prev ent LICENSEE from obtaining any Subsequent Project Approvals, including, without limitation, all necessary approvals, permits, certificates, and the like, at such dates and under such circumstances as LICENSEE would otherwise be entitled by the Project; or (c) do not prevent LICENSEE from commencing, prosecuting, and finishing grading of the land, constructing public and private improvements, and occupying the Property, or any portion thereof, all at such dates and schedules as LICENSEE would otherwise be e ntitled to do so by the Development Plan.
4.4.6 The CITY shall not be prohibited from applying Subsequent Land Use Regulations that do not affect permitted uses of the land, density, design, public improvements (including construction standards and specifications) or the rate of development of the Development, nor shall the CITY be prohibited from denying or conditionally approving any Subsequent Project Applications on the basis of such Subsequent Land Use Regulations.
4.5 Other Public Agencies. It is acknowledged by the parties that other public agencies not within the control of the CITY possess authority to regulate aspects of the Project, separately from or jointly with the CITY, including, but not limited to the Los Angeles County Health Department, the Los Angeles County Fire Department, and the STATE. This AGREEMENT does not limit the authority of such other public agencies. The CITY shall reasonably cooperate with such other public agencies processing Project Approvals.
4.6 Tentative Subdivision Map and Project Approvals Lifespan . The term of any tentative subdivision map shall be in effect for a period of fifteen (15) years, and may be extended pursuant to the provisions of the California Subdivision Map Act (Government Code §§ 66410 et seq.) All Project Approvals shall not expire if LICENSEE commences Substantial Construction of the Project within one (1) year from the Effective Date of this AGREEMENT , which period shall be tolled during any necessary applications for permits or other local entitlements, that are within the control of the Licensee; otherwise, no tolling period. . "Substantial Construction" means the submittal of a building permit in furtherance of the Project.
4.7 Satisfaction of Conditions of Approval . LICENSEE shall comply with any and all conditions of approval for any entitlement, permit, or license it receives from the CITY.
4.8 Subsequent Entitlements. Prior to commencement of construction of the Project, LICENSEE shall be required to submit applications for any and all subsequent entitlements, if any, consistent with the terms and conditions set forth in this AGREEMENT.
4.9 CITY Records Inspection. LICENSEE acknowledges and agrees that the CIT Y is empowered to examine LICENSEE's books and records. The CITY has the power and authority to examine such books and records at any reasonable time, with seventy-two (72) hours written notice, including but not limited to, during normal business hours; provided however, that, should the CITY elect to examine LICENSEE’s books and records more than one (1) time per calendar year, LICENSEE shall only bear the cost of such review in the ini tial instance, and the costs of any subsequent examination(s) shall be borne solely by the CITY; CITY shall keep all books and
records strictly confidential . If the CITY wishes to inspect the areas of the Property where the commercial cannabis activity is being conducted, CITY may do so at any time with no prior notice to LICENSEE. In addition, CITY agrees that all of its employees or agents which enter the [cultivation, manufacturing, distribution, retail] facility shall follow all of the policies and guidelines imposed on LICENSEE's employees, including without limitation, the wearing of any clothing or equipment to ensure that n o pests or impurities shall enter the [cultivation, manufacturing, distribution, retail] areas.
4.10 Commencement of Project by LICENSEE . Within six (6) months after the execution of this AGREEMENT, LICENSEE shall commence the submittal of applications for and use entitlements, permits, etc. If LICENSEE fails to apply to CITY for entitlements, permits, etc., within six (6) months from the execution of the AGREEMENT, CITY shall have the right to Termination of the AGREEMENT, and may avail itself of any other remedies, as set forth herein.
The CITY, it its sole and absolute discretion, may grant extensions t o the LICENSEE to comply with this subsection, provided the LICENSEE demonstrates a good faith attempt to seek entitlements, permits, etc.
ARTICLE 5. [COMMUNITY BENEFIT FEE ]; ADMINISTRATIVE FEE , JOB CREATION,
PERSONAL GUARANTY
5.1 [Annual Community Benefits Fee. LICENSEE agrees to pay the CITY an annual Community Benefits Fee in the amount of one -hundred-seventy-five thousand dollars ($175,000.00), which is based upon the “Premises” as defined by the State.
5.2 Community Benefits Fee Schedule; Annual or Quarterly . The initial Community Benefits Fee is due and payable simultaneously with the issuance of the COO, as defined herein, payable via cashier’s check; thereafter, it shall be payable on an annual basis on the anniversary date of this AGREEMENT. However, the Parties my agree to quarterly payments of the Community Benefits Fee; payable in four (4) equal installments, commencing six (6) months after issuance of the COO, and payable quarterly, as set forth in section 3.11, above.
5.3 Reassessment of Community Benefits Fee . The Community Benefits Fee is subject to reassessment by the CITY every five (5) years, after execution of the AGREEMENT.
At the end of year five (5), the CITY will set a new Community Benefits Fee which will be applied in years 6 through 10. At the end of year 10, the CITY will set new Community Benefits Fee which will be applied in years 11 through 15. CITY has full discretion, pursuant to public policy, in the determination of the new Community Benefits Fee.]
5.4 Administrative Fee Deposit . The Administrative Fee is a regulatory fee that LICENSEE shall be responsible to compensate the CITY for all of the CITY's Reasonable costs associated with processing, issuance, and compliance of the Project Approvals including, but not limited to, costs associated with the CITY's review , processing, performing investigations, inspections, and audits, administrative enforcement of this AGREEMENT an adjudication thereof including, but not limited to , staff review of Project entitlements, including all environmental clearance documents, permits, licenses and all documents evidencing compliance with state and local law, and consultant and City Attorney Fees. As such, upon submittal of the application to the CITY for Project entitlements, LICENSEE must make an initial deposit of ______________________ dollars ($ ____________) with the CITY for the purpose of reimbursing the CITY for any Reasonable costs associated with the Project, as detailed above and reimbursing the CITY for its Reasonable costs incurred in drafting and processing this
AGREEMENT. LICENSEE will be liable for the CITY's Reasonable costs incurred in processing future Project approvals and/or applications and compliance by the State or the CITY . CITY acknowledges and agrees that this payment is only a deposit and LICENSEE will be requested to deposit additional funds as needed in increments of Five Thousand Dollars ($5,000.00).
LICENSEE agrees that this Administrative Fee is not a tax, but a a fee for cost -of-service (see California Constitution, Article XIIIC).
5.5. Project Plan. LICENSEE shall provide a detailed Project Plan if LICENSEE has not already submitted a Project Plan in its Business Plan as part of its CITY Cannabis Permit Application Form.
5.6 Financial Projections. Three (3) years of Financial Projections will be provided with the AGREEMENT. Thereafter annual Financial Projections will be provided on the anniversary of the execution of this Agreement.
5.7 Jobs and Wage Creation.
5.7.1. Local Hiring. LICENSEE agrees to use its Reasonable, good faith efforts to hire qualified CITY residents for jobs at the Project. LICENSEE shall also use Reasonable efforts to retain the services of qualified contractors and suppliers who are located in the CITY or who employ a significant number of CITY residents. The LICENSEE shall comply with the living wage requirement for all employees at the commercial cannabis facility. Unions shall be allowed, and LICENSEE shall not discriminate against such union activity.
5.7.2. Wage Creation. LICENSEE shall make Reasonable, good faith efforts to employ at least forty percent (40%) of the Project’s workforce consisting of CITY residents. Such Reasonable, good faith efforts shall include, without limitation, job announcements posted at CITY Hall, along with proof that the job announcements were advertised in at least two (2) newspapers published, printed, or distributed in the CITY and , is applicable, on various social media sites accessible to the general public. In addition, LICENSEE shall make a good faith effort to advertise job announcements at local job fairs and/or on local radio and use any other medium to advertise job announcements to the broadest audience possible.
5.7.3. Status Reports. LICENSEE shall provide the CITY with written annual status reports to monitor compliance with this Section 5.4. Status Report Form to be provided by CITY.
5.8. Penalty for Nonpayment. Failure to pay the quarterly installment fees within thirty (30) days after the due date shall result in a penalty for nonpayment in a sum equal to twenty-five (25%) of the total amount due. The CITY may use all available legal means to collect any unpaid quarterly installment fees, inlcuding, but not limited to contracting with collection agencies, encumvrance of the Licensee’s real property, and seeking judgment in court; any unpaid balance will be subject to an additional collection fee of nineteen percent (19%).
5.9. Personal Guaranty [OR PERFORMANCE BOND]. LICENSEE shall execute a Personal Guaranty in favor of the CITY to secure the payment of all fees and taxes associated with this AGREEMENT. The initial amount of the Personal Guaranty shall be [Two-Hundred Fifty Thousand Dollars ($250,000.00)].
ARTICLE 6. DISTRIBUTION, TRANSPORTATION; AND [SELF-DISTRIBUTION]
6.1 Transportation of Commercial Cannabis. Transfers of commercial cannabis goods into and out of the CITY may be completed by a duly licensed commercial cannabis distributor in compliance with MAUCRSA and the BPMC.
6.2 Distribution of Commercial Cannabis. LICENSEE shall distribute its commercial cannabis and commercial Cannabis Products through any duly licensed commercial cannabis distributor in compliance with MAUCRSA and the BPMC.
6.3 [Self-Distribution; Agreement with Distributor(s). LICENSEE and any distributors shall reach their own agreement regarding fees for the distributor’s services, if applicable. Self- Distribution. LICENSEE may engage in “Self-Distribution” of commercial cannabis products that are cultivated or manufactured on the Property for a period of five (5) years, provided LICENSEE pays an annual fee of ten thousand dollars ($10,000.00) to the CITY in annual installments of two thousand dollars ($2,000.00), for five (5) years, or one ten thousand dollars ($10,000.00) payment. LICENSEE shall also maintain current a distributor transport permit from the State of California and comply with MAUCRSA. A distributor transport only self-distribution licensee is not permitted to transport cannabis goods cultivated or manufactured by other licensees.] ARTICLE 7. REVIEW FOR COMPLIANCE.
7.1 Periodic Review. The CITY Council shall have the option, in its sole and absolute discretion, to direct the Chief Executive Officer to review this AGREEMENT once every calendar year, on or before each anniversary of the Effective Date, in order to ascertain LICENSEE's good faith compliance with this AGREEMENT. During the Periodic Review, LICENSEE shall be required to demonstrate good faith compliance with all the terms and conditions of the AGREEMENT including good faith towards getting a Certificate of Occupancy.
7.2 Special Review. The CITY Council, in its sole and absolute discretion, may order a special review of compliance with this AGREEMENT by the Chief Executive Officer at any Reasonable time if the Chief Executive Officer is informed and believes that LICENSEE is in default o f any terms and conditions of the AGREEMENT. The CITY may also inspect any Property of the LICENSEE associated with the Project, at any time without notice. The failure by LICENSEE to allow entry into the Property or Properties, at any time, shall be deemed a breach of this AGREEMENT and may result in the termination of this AGREEMENT, as originally agreed, or as modified.
7.3 Review Hearing. At the time and place set for the review hearing before the Chief Executive Officer, LICENSEE shall be given an opportunity to be heard. If the Chief Executive Officer finds, based upon substantial evidence, that LICENSEE has not complied in good faith with the terms or conditions of this AGREEMENT, the Chief Executive Officer may:
(a) recommend that the City Council terminate this AGREEMENT notwithstanding any other provision of this AGREEMENT to the contrary, or (b) modify this AGREEMENT and impose such conditions as are reasonably necessary to protect the best interests of the CITY, with any Minor Amendment to this Agreement approved by the Chief Executive Officer, and any Major Amendment to this Agreement approved by the City Council . After the Review Hearing, the decision of the Chief Executive Officer shall be appealable to the City Council of the CITY . Any appellate decision of the City Council shall be final, subject only to judicial review.
7.4 Certificate of Agreement Compliance. If, at the conclusion of a periodic or special review following a LICENSEE’s default, the Chief Executive Officer determines that LICENSEE is in compliance with this AGREEMENT , the CITY shall issue a Certificate of Agreement Compliance ("Certificate") to LICENSEE stating that after the most recent Periodic Review or Special Review and based upon the information known or made known to the Chief Executive Officer, that (a) this AGREEMENT is reinstated in full force and effect and (b) LICENSEE is not in default. The CITY shall not be bound by a Certificate if a default existed at the time of the Periodic Review or the Special Review, but was not disclosed, concealed, or otherwise not known to the City Council of the CITY, regardless of whether the Certificate is relied upon by assignees or other transferees or LICENSEE.
7.5 Failure to Conduct Review . The CITY's delay or failure to conduct a Periodic Review or a Special Review of this AGREEMENT shall not constitute a breach of this AGREEMENT.
7.6 Cost of Review . The costs incurred by CITY in connection with the Periodic Reviews or Special Review shall be borne by the CITY. The LICENSEE is not liable for any costs associated with any CITY Periodic Review or Special Review of this AGREEMENT.
ARTICLE 8. EVENTS OF DEFAULT.
8.1 Material Breach of this AGREEMENT . Any of the following events shall be deemed an Event of Default and a material breach of this AGREEMENT:
8.1.1 Final Judgment. The entry of a final judgment (or a decision on any appeal therefrom) voiding the CITY's General Plan or any element thereof, which judgment or decision would preclude development of the Project, but only if the CITY is unable to cure such defect in the General Plan or element within one hundred and eighty (180) days from the later of entry of final judgment or decision on appeal.
8.1.2 Payment of Fees. Failure to timely pay any fees to the CITY, as determined by the CITY in its sole and absolute discretion.
8.1.3 Land use entitlements, permits. Failure to apply for land use entitlements, permits, with the CITY and the State of California, Department of Cannabis Control, within six (6) months after execution of this AGREEMENT. The CITY will grant extensions upon written request and proof of progress in seeking entitlements, permits, etc.
8.1.4 Certificate of Occupancy. Failure to move forward in good faith to obtain a Certificate of Occupancy (COO).
8.1.5 Cure Period . In the event of any material breach of this AGREEMENT, the CITY shall mail a notice to LICENSEE, offering an opportunity to cure the breach, within sixty (60) days. Proof of the cure of the event MUST be presented within the sixty (60) days to CITY; provided, however, that if such material breach is capable of being cured but is of such a nature that it cannot be cured within said time period, then CITY shall not be entitled to terminate this Agreement so long as Licensee is working diligently and in good faith to cure such breach, as determined by CITY in its sole and absolute discretion. Failure to cure within the time set forth herein, shall be grounds for Termination as set forth in Section 3. 7, above, at the discretion of the CITY. LICENSEE shall only be entitled a ten (10) day cure period for Automatic Termination as set forth in Section 3.6, above.
ARTICLE 9. REMEDIES.
9.1 Remedies in General. It is acknowledged by the parties that the CITY would not have entered into this AGREEMENT if it were to be liable in damages with respect to this AGREEMENT or the Application thereof, except as hereinafter expressly provided. Subject to extensions of time by mutual consent in writing, failure, or delay by either party to perform any term or provision of this AGREEMENT shall constitute a default.
9.2 Event of Default. In the event of alleged default or breach of any terms or conditions of this AGREEMENT, the party alleging such default or breach shall give the other party thirty (30) days' notice in writing specifying the nature of the alleged default and the manner i n which said default may be satisfactorily cured during any such sixty (60) day period, the party charged shall not be considered in default for purposes of termination or institution of legal proceedings, except for th e events detailed in Section 3.6, above, wherein a ten (10) day notice to cure is required.
9.3 Legal or Equitable; Monetary Damages. In general, each of the parties hereto may pursue any remedy at law or equity available for the breach of any provision of this AGREEMENT through any state court, except that the CITY shall not be liable in monetary damages, unless expressly provided for in this AGREEMENT, to LICENSEE, to any mortgagee or lender, or to any successors in interest of LICENSEE , if successors in interest are permitted under this AGREEMENT or mortgagee or lender, or to any other person, and LICENSEE covenants on behalf of itself and all successors in interest, if successors in interest are permitted under this AGREEMENT, to the Property or any portion thereof, not to sue for damages or claim any damages:
(i) For any breach of this AGREEMENT or for any cause of action which arises out of this AGREEMENT; or
(ii) For the impairment or restriction of any right or interest conveyed or provided under, with, or pursuant to this AGREEMENT, including, without limitation, any impairment or restriction which LICENSEE characterizes as a regulatory taking or inverse condemnation; or
(iii) Arising out of or connected with any dispute, controversy or issue regarding the Application or request for a permit for [cultivation, manufacturing, distribution, retail] or interpretation or effect of the provisions of this AGREEMENT.
9.4 Waiver/Release of Claims. LICENSEE hereby agrees to waive and/or release the CITY for any claim or claims or cause of action, not specifically and expressly reserved herein, which LICENSEE may have at the time of execution of this AGREEMENT relating to any Application to the CITY including, but not limited to, any Application for any type of [cultivation, manufacturing, distribution, retail] permit, any Application for any [cultivation, manufacturing, distribution, retail] rights, or any Application for [cultivation, manufacturing, distribution, retail] license from the CITY.
CALIFORNIA CIVIL CODE SECTION 1542
The LICENSEE expressly acknowledges that this AGREEMENT is intended to include in its effect, a waiver without limitation, of all claims or causes of actions which have arisen and of which each side knows or does not know, should have known, had reason to know or suspects to exist in their respective favor at the time of execution hereof, that this AGREEMENT contemplates the extinguishment of any such Claim or Claims. The LICENSEE specifically acknowledges and waives and releases the rights granted to LICENSEE under California Civil Code Section 1542, which states as follows:
A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor.
By expressly waiving the rights granted to LICENSEE under California Civil Code Section 1542, the LICENSEE represents that they understand and acknowledge that if they have suffered any injury, damage as a result of the Application for or request for any permit from the CITY and (i) they are not presently aware of any damage or injury, or (ii) an y damage or injury has not yet manifested itself, any claims for any such damage or injury are forever released and discharged.
9.5 Reservation of Rights – CITY. Nothing herein shall modify or abridge any defenses or immunities available to the CITY and its employees pursuant to the Government Tort Liability Act and all other applicable statutes and decisional law.
9.6 Reservation of Rights – LICENSEE. Nothing contained herein shall modify or abridge LICENSEE's rights or remedies (including its rights for damages, if any) resulting from the exercise by the CITY of its power of eminent domain. Nothing contained herein shall modify or abridge LICENSEE's rights or remedies (including its rights for damages, if any) resulting from the grossly negligent or malicious acts of the CITY and its officials, officers, agents, and employees.
9.7 Limitation of Rights . Except as set forth in the preceding paragraph relating to eminent domain, LICENSEE's remedies shall be limited to those set forth in this Section 9.1, Section 9.2, and Section 9.3.
9.8 Specific Performance . The parties acknowledge that money damages and remedies at law are inadequate, and specific performance and other non -monetary relief are particularly appropriate remedies for the enforcement of this AGREEMENT and should be available to all parties for the following reasons:
(i) Except as provided in Section 9.1, money damages are unavailable against the CITY.
(ii) Due to the size, nature, and scope of the Project, it may not be practical or possible to restore the Property to its natural condition once implementation of this AGREEMENT has begun. After such implementation, LICENSEE may be foreclosed from other choices it may have had to use the Property or portions thereof. LICENSEE has invested significant time and resources and performed extensive planning and processing of the Project
in agreeing to the terms of this AGREEMENT and will be investing even more significant time and resources in implementing the Project in reliance upon the terms of this AGREEMENT, and it is not possible to determine the sum of money which would adequately compensate LICENSEE for such efforts; the parties acknowledge and agree that any injunctive relief may be ordered on an expedited, priority basis.
9.9 Termination of Agreement for Default of the CITY. LICENSEE may terminate this AGREEMENT only in the event of a default by the CITY in the performance of a material term of this AGREEMENT and only after providing written notice to the CITY of default setting forth the nature of the default and the actions, if any, required by the CITY to cure such default and, where the default can be cured, the CITY has failed to take such actions and cure such default within sixty (60) days after the effective date of such notice or, in the event that such default cannot be cured within such sixty (60) day period but can be cured within a longer time, has failed to commence the actions necessary to cure such default within such sixty (60) day period and to diligently proceed to complete such actions and cure such default.
9.10 Attorneys' Fees and Costs. In any action or proceeding between the CITY and LICENSEE brought to interpret or enforce this AGREEMENT, or which in any way arises out of the existence of this AGREEMENT, or is based upon any term or provision contained herein, the "prevailing party" in such action or proceeding shall be entitled to recover from the non-prevailing party, in addition to all other relief to which the prevailing party may be entitled pursuant to this AGREEMENT, the prevailing party's Reasonable attorneys' fees and litigation costs, in an amount to be determined by the court. The prevailing party shall be determined by the court in accordance with California Code of Civil Procedure Section 1032. Fees and costs recoverable pursuant to this Section 8.10 include those incurred during any appeal from an underlying judgment and in the enforcement of any judgment rendered in any such action or proceeding.
9.11 LICENSEE Default . No building permit shall be issued or building permit application accepted for any structure on the Property after LICENSEE is determined by the CITY to be in default of the terms and conditions of this AGREEMENT until such default thereafter is cured by LICENSEE or is waived by the CITY. If the CITY terminates this AGREEMENT because of LICENSEE'S default, then the CITY shall retain any and all benefits, including fees received by the CITY hereunder.
9.12 Additional Fees and Fines. LICENSEE shall be subject not only to the Fees due, as set forth in the AGREEMENT, but shall also be subject to an additional Collections Fee in the amount of the legal rate of interest is 10% of outstanding balance due to the CITY, which shall be due to the Collections Agency designated by the CITY for any and all collections efforts initiated by the CITY, if payment is not received within thirty (30) days after request from the CITY’s designated collections agency.
9.13 Termination by CITY. Upon default by LICENSEE, the CITY may, in its sole discretion, terminate this AGREEMENT and may, in its sole discretion and following a Review Hearing pursuant to Section 7.3 and the applicable appeal referenced therein, report said termination to the Department of Cannabis Control of the State of California (DCC).
ARTICLE 10. THIRD PARTY LITIGATION.
10.1 General Plan Litigation . The CITY has determined that this AGREEMENT is consistent with its General Plan. LICENSEE has reviewed the General Plan and concurs with the CITY's determination. The CITY shall have no liability under this AGREEMENT, or otherwise, for any failure of th e CITY to perform under this AGREEMENT, or for the inability of LICENSEE to develop the Property as contemplated by the Project Plan, which failure to perform or inability to develop is as the result of a judicial determination that the General Plan, or portions thereof, are invalid, inadequate, not in compliance with law, or that this AGREEMENT or any of the CITY's actions in adopting it, were invalid, inadequate, or not in compliance with law. Notwithstanding the foregoing, neither party shall contend in any administrative or judicial proceeding that the AGREEMENT or any Project Approval is unenforceable based upon federal, state, or local statutes, ordinances, or regulations in effect on the Effective Date.
10.2 Hold Harmless Agreement. LICENSEE hereby agrees to, and shall hold CITY, its elective and appointive boards, commissions, officers, agents, and employees harmless from any liability for damage or claims for damage for personal injury, including death, as well as from claims for property damage which may arise from LICENSEE or LICENSEE's contractors, subcontractors, agents, or employees operations under this AGREEMENT, whether such operations be by LICENSEE, or by any of LICENSEE's contractors, subcon tractors, agents, or employees operations under this AGREEMENT, whether such operations be by LICENSEE, or by any of LICENSEE's contractors, subcontractors, or by any one or more persons directly or indirectly employed by, or acting as agent for LICENSEE o r any of LICENSEE's contractors or subcontractors. LICENSEE agrees to and shall defend CITY and its elective and appointive boards, commissions, officers, agents and employees from any suits or actions at law or in equity for damage caused, or alleged to have been caused, by reason of any of the aforesaid operations.
10.3 Indemnification. LICENSEE shall defend, indemnify and hold harmless the CITY and defend its officers, agents, and employees, against and from any and all liabilities, demands, lawsuits, claims, government claims, actions or proceedings and costs and expenses incidental thereto (including costs of defense, settlement and Reasonable attorneys' fees), which the CITY, its officers, agents, and employees, may suffer, incur, be responsible for or pay out as a result of or in connection with any challenge to the legality, validity or adequacy of any of the following: (i) this AGREEMENT and the concurrent and subsequent permits, licenses and entitlements approved for the Project or Property; (ii) if applicable, the environmental impact report, mitigated negative declaration or negative declaration, as the case may be, prepared in connection with the development of the Property; and (iii) the proceedings or procedure undertaken in connection with the adoption or approval of any permit or any of the above. In the event of any legal or equitable action or other proceeding instituted by anyone against the CITY, its officers, agents, and employees, and any third party (including a governmental entity or official) challenging the validity of any provision of this AG REEMENT or procedure upon which the permit was issued, or any portion thereof as set forth herein, the parties shall mutually cooperate with each other in defense of said action or proceeding. Notwithstanding the above, the CITY, at is sole option, may ten der to LICENSEE, and LICENSEE agrees to accept any such tender of the complete defense, of any third-party challenge as described herein. In the event the CITY elects to contract with special counsel to provide for such a defense, the CITY may do so in its sole discretion and LICENSEE will be required to pay the defense costs of the CITY as the costs are incurred. LICENSEE agrees to pay any and all attorney's fees or retainer regarding the selection of special counsel, and LICENSEE shall pay all costs and all attorneys' fees related to retention of such special counsel.
10.4 Environmental Contamination. LICENSEE shall indemnify and hold the CITY, its officers, agents, and employees, free and harmless from any liability, based or asserted, upon any act or omission of the LICENSEE, its officers, agents, employees, subcontractors, predecessors in interest, successors, assigns and independent contractors, excepting any acts or omissions of CITY as successor to any portions of the Property dedicated or transferred to CITY by LICENSEE, for any violation of any federal, state, o r local law, ordinance or regulation relating to industrial hygiene or to environmental conditions on, under or about the Property, including, but not limited to, soil and groundwater conditions, and LICENSEE shall defend, at its expense, including attorneys' fees, the CITY, its officers, agents, and employees, in any action based or asserted upon any such alleged act or omission. The CITY may in its discretion participate in the defense of any such claim, action or proceeding. The provisions of this Section
9.4 do not apply to environmental conditions that predate the LICENSEE's ownership or control of the Property or applicable portion, which shall be determined exclusively by the CITY. However, the foregoing limitation shall not operate to bar, limit, or modify any of LICENSEE's statutory or equitable obligations as either a LICENSEE or seller of the Property.
10.5 CITY Selection of Counsel. With respect to Sections 10.1 through 10.4, the CITY reserves the right to select its own special counsel or otherwise engages special counsel to defend the CITY hereunder, which fees shall be paid by LICENSEE.
10.6 Acceptance of Reasonable, Good Faith Settlement. With respect to this Article 10, the CITY shall not reject any Reasonable, good faith settlement. Before accepting any such settlement offer, CITY shall notify LICENSEE of the offer and provide LICENSEE with a copy of the settlement offer. If LICENSEE disagrees with the CITY's intention to accept the offer, prior to the CITY's r esponse to any offer, the parties shall meet and confer, in good faith, in order to attempt to resolve the parties' differences . If the CITY does reject a Reasonable, good faith settlement that is acceptable to LICENSEE, LICENSEE may enter into a settlement of the action, as it relates to LICENSEE, and the CITY shall thereafter defend such action (including appeals) at its own cost and be solely responsible for any ju dgments rendered in connection with such action. This Section 9.6 applies exclusively to settlements pertaining to monetary damages or damages which are remedial by the payment of monetary compensation. LICENSEE and th e CITY expressly agree that this Section 9.6 does not apply to any settlement that requires an exercise of the CITY's police powers, limits the CITY's exercise of its police powers, or affects the conduct of the CITY's municipal operations.
10.7 Administrative Actions. The parties acknowledge that in the future there could be claims, enforcement actions, requests for information, subpoenas, criminal or civil actions initiated or served by either the Federal Government or the State Government in connection with LICENSEE's development, operation, and use of the Property (collectively, "Actions"). The CITY shall not disclose information and documents to the Federal Government or State Government, its officers, or agents regarding any party to this agreement absent a grand jury subpoena, civil or administrative subpoena, warrant, discovery request, summons, court order or similar process authorized under law hereinafter called "Governmental Notice." If any Action is brought by either the Federal or State Government, CITY sh all immediately notify LICENSEE of the nature of the Claim including all correspondence or documents submitted to the CITY. Prior to responding to the Governmental Notice, CITY shall provide LICENSEE ten (10) days from the date of such notice subpoena or the like to serve and obtain on the CITY a protective order, or the like, from a court of competent jurisdiction.