3.4.1. CCA Renewal. The Chief Executive Officer (CEO) shall determine whether to renew the CCA for an additional five (5) years. The CEO shall use the CCA Checklist, attached hereto as Attachment No. 10, to determine renewal of the CCA. If the CEO determines to renew, the CCA shall be forwarded to the City Council for formal approval as a consent calendar item.
3.4.2. Non-Renewal of CCA/Cure Period. If the CEO determines not to renew the CCA; 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 CCA shall not be renewed.
3.4.3. Appeal to the City Council. The LICENSEE may appeal any Non-Renewal of CCA by 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 CCA shall be final and binding.
3.5 Extension of Term. This CCA 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 CCA 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 CCA, 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 CCA, which abandons and/or surrenders the License to operate a commercial cannabis manufacturing and self-distribution facility on the SITE, 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 CCA (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 SITE, pursuant to the terms of this CCA. Upon the termination of this CCA, 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 default in the performance of the provisions of this CCA, which has occurred prior to such termination, or with respect to any obligations which are specifically and expressly set forth as surviving this CCA. 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 CCA.
3.8 Notices.
3.8.1 Notice Defined. As used in this CCA, 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
(iii) when delivered 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: California Harvest Fund, LLC
15260 Ventura Blvd., 1210
Sherman Oaks, CA 91403
Email: [email protected]
Telephone: (818)-335-3177
Attn: Jason Turchin
With copy to: Herrera, Clifton, Hess, P.C.
100 Wilshire Blvd., Suite 700
Santa Monica, CA 90401-3602
Email: [email protected]
Telephone: (310) 570-0513
Attn: Alejandro Herrera, Esq.
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 CCA. 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 CCA. 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 CCA violates federal or state law, with respect to all federal, state, and local statutes, ordinances, or regulations in effect as of the Effective Date.
3.10 Commercial Cannabis Banking. The CITY will not accept cash payments for any fees or costs associated with this CCA. 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 CCA, develop the SITE with a commercial cannabis facility in accordance with and to the extent of the Application.
The SITE shall remain subject to all Subsequent Project Approvals required to complete the Project as contemplated by the Application.
4.2 Effect of CCA on Land Use Regulations . Except as otherwise provided by this CCA, the rules, regulations and official policies and conditions of approval governing permitted uses of the SITE, the density and intensity of use of the SITE, the maximum height and size of proposed buildings, and the design, improvement, occupancy and construction standards and specifications applicable to development of the SITE 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 CCA. 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 CCA 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 CCA. (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 SITE, provisions for dedication of land for public purposes and Development Exactions, except as expressly permitted elsewhere in this CCA, and standards for design, development and construction of the Project; (b) do not prevent 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 no t prevent LICENSEE from commencing, prosecuting, and finishing grading of the land, constructing public and private improvements, and occupying the SITE, or any portion thereof, all at such dates and schedules as LICENSEE would otherwise be entitled 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 CCA 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 CCA, 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 CCA.
4.9 CITY Records Inspection. LICENSEE acknowledges and agrees that the CITY 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 initial instance, and the costs of any subsequent examination(s) shall be borne solely by the CITY; CITY shall keep all books and records strictly confident ial. If the CITY wishes to inspect the areas of the SITE where the commercial cannabis is being retailed, 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 manufacturing 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 no pests or impurities shall enter the manufacturing areas.
4.10 Commencement of Project by LICENSEE . Within six (6) months after the execution of this CCA, LICENSEE shall commence the submittal of applications for and use entitlements, permits, certificate of occupancy, etc. If LICENSEE fails to apply to CITY for entitlements, permits, etc., within six (6) months from the execution of the CCA, CITY shall have the right to Termination of the CCA, and may avail itself of any other remedies, as set forth herein.
The CITY, it its sole and absolute discretion, may grant exte nsions to the LICENSEE to comply with this subsection, provided the LICENSEE demonstrates a good faith attempt to seek entitlements, permits, etc.
ARTICLE 5. PUBLIC BENEFIT S FEE; ADMINISTRATIVE FEE ; JOB CREATION,
AND PERSONAL GUARANTY
5.1 Intent. The parties acknowledge and agree that the Project will result in substantial public needs and further acknowledge and agree that this CCA confers substantial private benefits on LICENSEE, which should be balanced by commensurate public benefits. Accordin gly, the parties intend to provide consideration to the community to balance the private benefits conferred on LICENSEE by providing more fully for the satisfaction of the public needs resulting from the Project. The Parties further acknowledge and agree t hat the LICENSE confers substantial private benefits on the LICENSEE that will impose burdens on the CITY’s infrastructure, maintenance, repair, safety, services, traffic, noise, pollution, etc., and that the private benefits provided to the LICENSEE should be balanced with commensurate public benefits for the community (“ Public Benefits”).
5.2 Public Benefits. LICENSEE agrees to provide Public Benefits to the CITY, in compliance with the Public Benefits Plan, as set forth in Attachment No. 8, hereto . All commitments made by LICENSEE in the Application, inclusive of the Public Benefits Plan are incorporated into this CCA as if fully set forth in this CCA. The LICENSEE agrees that the Public Benefits Fee, which has been set by the City Council, is deemed fair and reasonable, and that full payment of such fees is required by LICENSEE under this CCA.
5.3 Penalty for Nonpayment. Failure to pay the Public Benefits Fee within thirty (30) days after the due date shall result in a penalty for nonpayment in a sum equal to twenty-five percent (25%) of the total amount unpaid. Additional penalties will be assessed in the following manner: ten percent ( 10%) shall be added to the first day of each calendar month following the month of the imposition of the twenty-five (25%) penalty if the fees remain unpaid in whole or in part – up to a maximum of 100% of the fee payable on the due date.
5.4 Annual Public Benefits Fee. LICENSEE agrees to pay the CITY an annual Public Benefits Fee in the amount of one-hundred seventy-five thousand dollars ($175,000.00), which is based upon the square feet set forth in the Application and the “Premises” as defined by the State.
5.5 Public Benefits Fee Schedule. LICENSEE shall commence payment of the Public Benefits Fee to the CITY six (6) months after issuance of the Certificate of Occupancy (COO), from the CITY (“Fee Commencement Date”). Thereafter the Public Benefits Fee shall be payable on an annual basis on the anniversary date of the Fee Commencement Date.
5.6 Reassessment of Public Benefits Fee . The Public Benefits Fee is subject to reassessment by the CITY every five (5) years, after execution of this CCA. At the end of year five (5), the CITY will set a new Public Benefits Fee which will be applied in years 6 through 10.
At the end of year 10, the CITY will set new Public Benefits Fee which will be applied in years 11 through 15. No one factor is dispositive in the CITY’s determination of the new Public Benefits Fee.
5.7. Administrative Fee Deposit ($50,000). 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 CCA 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 Fifty thousand and 00/100 dollars ($50,000.00) 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 CCA. LICENSEE agrees that this Administrative Fee is not a tax but a fee for cost-of-service (see Cal. Constitution, Article XIIIC).
5.8. 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.
5.9 Financial Projections . Three (3) years of Financial Projections will be provided with the CCA. Thereafter annual Financial Projections will be provided on the anniversary of the execution of this CCA, as set forth in Attachment No. 7, herein.
5.10 Jobs and Wage Creation.
5.10.1. 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. LICENSEE may engage the services of a labor contractor for hiring purposes, provided that LICENSEE shall communicate the local hiring preferences and requirements set forth in this Section 5.10.1 to such labor contractor and request that the labor contractor make reasonable , good faith efforts to comply with these requirements. Unions shall be allowed, and LICENSEE shall not discriminate against such union activity.
5.10.2. 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.
5.10.3. Status Reports. LICENSEE shall provide the CITY with written annual status reports to monitor compliance with this Section 5. 10. Status Report Form to be provided by CITY.
5.11. Intentionally omitted.
5.12. Personal Guaranty. LICENSEE shall execute a Personal Guaranty , as set forth in Attachment No. 5, hereto, in favor of the CITY to secure the payment of all fees associated with this CCA. The initial amount of the Personal Guaranty shall be One-Hundred Seventy-Five Thousand Dollars ($175,000.00).
5.13 Nexus/Reasonable Relationship Challenges. LICENSEE agrees that the terms and conditions, the Public Benefit Fees, and the Administrative Fees imposed in this Article V, are reasonable and related to the amelioration of the negative impacts of the Project on the CITY and hereby consents to, and waives any rights it may have now, or in the future, to challenge the legal validity of, the conditions, requirements, policies or programs set forth in this CCA including, without limitation, any claim that th e terms in this CCA constitute an abuse of the police power, violate substantive due process, deny equal protection of the laws, effectuate a taking of the SITE without just compensation, and/or impose an unlawful tax. Further, in order to avoid any controversy, and to avoid any litigation related to the mutually agreed upon Commercial Cannabis Fees, LICENSEE admits that Sheetz v. County of El Dorado (2024) 601 U.S. 267 ("Sheetz"), is not applicable and that the Public Benefit Fees shall be binding with no ability to be challenged in litigation or otherwise.
ARTICLE 6. DISTRIBUTION AND TRANSPORTATION
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 Agreement with Distributor(s). LICENSEE and any distributors shall reach their own agreement regarding fees for the distributor’s services, if applicable.
6.4. Self-Distribution. LICENSEE may engage in “Self-Distribution” of commercial cannabis products that are cultivated or manufactured on the SITE 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 and the BPMC. A distributor transport only self-distribution licensee is not permitted to transport cannabis goods cultivated or manufactured by other licensees in the CITY or elsewhere.
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 CCA once every calendar year, on or before each anniversary of the Effective Date, in order to ascertain LICENSEE's good faith compliance with this CCA. During the Periodic Review, LICENSEE shall be required to
demonstrate good faith compliance with all the terms and conditions of the CCA 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 CCA 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 CCA. The CITY may also inspect any SITE of the LICENSEE associated with the Project, at any time without notice. The failure by LICENSEE to allow entry into the SITE or Properties, at any time, shall be deemed a breach of this CCA and may result in the termination of this CCA, 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 CCA, the Chief Executive Officer may: (a) recommend that the City Council terminate this CCA notwithstanding any other provision of this CCA to the contrary, or (b) modify this CCA and impose such conditions as are reasonably necessary to prote ct the best interests of the CITY , with any Minor Amendment to this CCA approved by the Chief Executive Officer, and any Major Amendment to this CCA 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 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 CCA, the CITY shall issue a Certificate of 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 CCA 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 CCA shall not constitute a breach of this CCA.
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 CCA.
ARTICLE 8. EVENTS OF DEFAULT.
8.1 Material Breach of this CCA. Any of the following events shall be deemed an Event of Default and a material breach of this CCA:
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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 u se 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 CCA. 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) on a timely basis.
8.1.5 Cure Period. In the event of any material breach of this CCA, 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 CCA 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 CCA if it were to be liable in damages with respect to this CCA 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 CCA shall constitute a default.
9.2 Event of Default. In the event of alleged default or breach of any terms or conditions of this CCA, the party alleging such default or breach shall give the other party sixty (60) days' notice in writing specifying the nature of the alleged default and the manner in 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 the 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 CCA through any state court, except that the CITY shall not be liable in monetary damages, unless expressly provided for in this CCA, to LICENSEE, to any mortgagee or lender, or to any successors in
interest of LICENSEE , if successors in interest are permitted under this CCA 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 CCA, to the SITE or any portion thereof, not to sue for damages or claim any damages:
(i) For any breach of this CCA or for any cause of action which arises out of this CCA; or
(ii) For the impairment or restriction of any right or interest conveyed or provided under, with, or pursuant to this CCA, 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 manufacturing or interpretation or effect of the provisions of this CCA.
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 CCA relating to any Application to the CITY including, but not limited to, any Application for any type of manufacturing permit, any Application for any manufacturing rights, or any Application for manufacturing license from the CITY.
CALIFORNIA CIVIL CODE SECTION 1542
The LICENSEE expressly acknowledges that this CCA 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 CCA 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 that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party.
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) any 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 CCA 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 SITE to its natural condition once implementation of this CCA has begun.
After such implementation, LICENSEE may be foreclosed from other choices it may have had to use the SITE 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 CCA and will be investing even more significant time and resources in implementing the Project in reliance upon the terms of this CCA, and it is not possible to determi ne 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 CCA for Default by CITY. LICENSEE may terminate this CCA only in the event of a default by the CITY in the performance of a material term of this CCA 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 cur e such default within sixty (60) days after the effective date of such notice or, in th e 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 suc h 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 CCA, or which in any way arises out of the existence of this CCA, 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 pursuan t to this CCA, 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 9.10 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 SITE after LICENSEE is determined by the CITY to be in default of the terms and conditions of this CCA until such default thereafter is cured by LICENSEE or is waived by the CITY. If the CITY terminates this CCA 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 CCA, 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 L ICENSEE, the CITY may, i n its sole discretion, terminate this CCA 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 CCA 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 CCA, or otherwise, for any failure of the CITY to perform under this CCA, or for the inability of LICENSEE to develop the SITE 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 CCA 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 CCA 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 SITE damage which may arise from LICENSEE or the operations/activities of LICENSEE's contractors, subcontractors, agents, or employees under this CCA, whether such operations/activities 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.
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 /activities by any of the aforesaid parties.
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 CCA and the concurrent and subsequent permits, licenses and entitlements approved for the Project or SITE; (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 SITE; 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 an y 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 CCA 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 tender 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 SITE dedicated or transferred to CITY by LICENSEE, for any violation of any federal, state, or lo cal law, ordinance or regulation relating to industrial hygiene or to environmental conditions on, under or about the SITE, 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 10.4 do not apply to environmental conditions that predate the LICENSEE's ownership or control of the SITE 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 SITE.
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 judgments rendered in connection with such action.
This Section 10.6 applies exclusively to settlements pertaining to monetary damages or damages which are remedial by the payment of monetary compensation. LICENSEE and the CITY expressly agree that this Section 10.6 does not apply to any settlement that requires an exercise of the CITY's police po wers, 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 SITE (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 CCA 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 shall 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.
10.8 Survival. The provisions of Sections 10.1 through 10.7 inclusive, shall survive the termination or expiration of this CCA, until such time as the uses of the SITE established in the Development Plan are permanently terminated.
ARTICLE 11. THIRD PARTY LENDERS, ASSIGNMENT & SALE.
11.1 Encumbrances. The parties hereto agree that this CCA shall not prevent or limit LICENSEE, in any manner, at LICENSEE's sole discretion, from encumbering the SITE or any portion thereof or any improvement thereon by any mortgage, deed of trust or other security device securing financing with respect to the SITE.
11.2 Lender Requested Modification/Interpretation. The CITY acknowledges that the lenders providing such financing may request certain interpretations and modifications of this CCA and agrees upon request, from time to time, to meet with LICENSEE and representatives of such lenders to negotiate in good faith any such request for interpretation or modification. The CITY will not unreasonably withhold its consent to any such requested interpretation or modification provided such interpretation or modification is consistent with the intent and purposes of this CCA
and as long as such requests do not minimize, reduce, curtail, negate or in any way limit CITY’s rights under this CCA.
11.3 Non-Transferable Without CITY Approval. LICENSEE shall not sell or transfer its right, title and interest in this CCA and any permits, licenses, entitlements, and related benefits , except in full compliance with the transferability provisions in Chapter 128 of the BPMC.
ARTICLE 12. MISCELLANEOUS PROVISIONS.
12.1 Amendment of CCA. This CCA shall be amended only by mutual consent of the Parties. All amendments shall be in writing and executed by both Parties. The City Council hereby expressly authorizes the Chief Executive Officer to approve a Minor Amendment to this CCA. A Major Amendment to this CCA shall be approved by the City Council. The Chief Executive Officer shall, on behalf of CITY, have sole discretion to determine if an amendment constitutes a Minor Amendment or a Major Amendment. Nothing in this CCA shall be construed as requiring a noticed public hearing, unless required by law.
12.2 Entire Agreement. This CCA sets forth and contains the entire understanding and agreement of the PARTIES with respect to the subject matter hereof . This CCA supersedes all prior agreements and understandings, oral, written , and implied, between the PARTIES hereto with respect to the subject matter hereof , in its entirety ; there are no other oral or written representations, understandings or ancillary covenants, undertakings or agreements that are not contained or expressly contained herein.
12.3 Severability. If any term, provision, covenant, or condition of this CCA shall be determined invalid, void, or unenforceable, by a court of competent jurisdiction, the remainder of this CCA shall not be affected thereby and shall remain in full force and effect to the extent such remaining provisions are not rendered impractical to perform taking into consideration the purposes of this CCA.
12.4. Federal Law. The Parties expressly agree that each Party is strictly prohibited from failing to perform any and all obligations under this CCA on the basis that this CCA is invalid, unenforceable, or illegal under federal law. By entering into this CCA, each Party disclaims any right to tender an affirmative defense in any arbitration or court of competent jurisdiction, that performance under this CCA is not required because the CCA is invalid, unenforceable, or illegal under federal law.
12.5 Interpretation and Governing Law. Any dispute arising hereunder shall be governed and interpreted in accordance with the laws of the State of California. This CCA shall be construed as a whole according to its fair language and common meaning to achieve the objectives and purposes of the parties hereto, and the rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not be employed in interpreting this CCA, since all parties were represented by counsel in the negotiation and preparation of this CCA, and/or were advised to consult counsel and had the opportunity to obtain counsel for the negotiation and preparation of this CCA.
12.6 Section Headings . All section headings and subheadings are inserted for convenience only and shall not affect any construction or interpretation of this CCA.
12.7 Singular and Plural; Gender, and Person . Except where the context requires otherwise, the singular of any word shall include the plural and vice versa, and pronouns inferring the masculine gender shall include the feminine gender and neuter, and vice versa, and a reference to "person" shall inc lude, in addition to a natural person, any governmental entity and any partnership, corporation, joint venture or any other form of Project entity.
12.8 Time of Essence . Time is of the essence in the performance of the provisions of this CCA as to which time is an element.
12.9 Waiver. Failure by a party to insist upon the strict performance of any of the provisions of this CCA by the other party, or the failure by a party to exercise its rights upon the default of the other party, shall not constitute a waiver of such party's right to insist and demand strict compliance by the other party with the terms of this CCA thereafter.
12.10 No Third-Party Beneficiaries. The only parties to this CCA are LICENSEE and the CITY. This CCA is made and entered into for the sole protection and benefit of the parties and their successors and assigns. There are no third-party beneficiaries, and this CCA is not intended, and shall not be construed, to benefit, or be enforceable by any other person whatsoever.
12.11 Mutual Covenants. The covenants contained herein are mutual covenants and also constitute conditions to the concurrent or subsequent performance by the party benefited thereby of the covenants to be performed hereunder by such benefited party.
12.12 Counterparts. This CCA may be executed by the parties in counterparts, which counterparts shall be construed together and have the same effect as if all of the parties had executed the same instrument.
12.13 Jurisdiction and Venue. Any action at law or in equity arising under this CCA or brought by a party hereto for the purpose of enforcing, construing or determining the validity of any provision of this CCA shall be filed and prosecuted in the Superior Court of the County of Los Angeles, State of California, and the parties hereto waive all provisions of federal or state law or judicial decision providing for the filing, removal or change of venue to any other state or federal court, including, without limitation, Code of Civil Procedure Section 394.
12.14 Project as a Private Undertaking . It is specifically understood and agreed by and between the parties hereto that the development of the Project is a private development, that neither party is acting as the agent of the other in any respect hereunder, and that each party is an independent contracting entity with respect to the terms, covenants and conditions contained in this CCA. No partnership, joint venture or other association of any kind is formed by this CCA.
The only relationship between the CITY and LICENSEE is that of a government entity regulating the development of the SITE and the LICENSEE of such SITE.
12.15 Further Actions and Instruments. Each of the parties shall cooperate with and provide Reasonable assistance to the other to the extent contemplated hereunder in the
performance of all obligations under this CCA and the satisfaction of the conditions of this CCA.
Upon the request of either party at any time, the other party shall promptly execute, with acknowledgment or affidavit if reasonably required, and file or record such required instruments and writings and take any actions as may be reasonably necessary under the terms of this CCA to carry out the intent and to fulfill the provisions of this CCA or to evidence or consummate the transactions contemplated by this CCA.
12.16 Eminent Domain. No provision of this CCA shall be construed to limit or restrict the exercise by the CITY of its power of eminent domain.
12.17 Agent for Service of Process. In the event LICENSEE is not a resident of the State of California or it is an association, partnership or joint venture without a member, partner or joint venturer, resident of the State of California, or if it is a foreign corporation, then LICENSEE shall file, upon its execution of this CCA, with the Chief Executive Officer or his or her designee, upon its execution of this CCA, a designation of a natural person residing in the State of California, giving his or her name, residence and Project a ddresses, as its agent for the purpose of service of process in any court action arising out of or based upon this CCA, and the delivery to such agent of a copy of any process in any such action shall constitute valid service upon LICENSEE. If for any reason service of such process upon such agent is not feasible, then in such event LICENSEE may be personally served with such process out of the County of Los Angeles and such service shall constitute valid service upon LICENSEE. LICENSEE is amenable to the process so described, submits to the jurisdiction of the Court so obtained, and waives any and all objections and protests thereto.
12.18 Good Standing. LICENSEE represents and warrants to the CITY that the LLC is duly organized, validly existing, and in good standing under the laws of the State in which it is incorporated, and that it has all power and authority required to enter into and perform this CCA.
12.19 Authority to Execute . The person or persons executing this CCA on behalf of LICENSEE warrants and represents that he/she/they have the authority to execute this CCA on behalf of his/her/their corporation, partnership or Project entity and warrants and represents that he/she/they has/have the authority to bind LICENSEE to the performance of its obligations hereunder. LICENSEE shall each deliver to CITY on execution of this CCA a certified copy of a resolution and or minute order of their respective board of directors or appropriate governing body authorizing the execution of this CCA and naming the officers that are authorized to execute this CCA on its behalf. Each individual executing this CCA on behalf of his or her respective company or entity shall represent and warrant that:
(i) The individual is authorized to execute and deliver this CCA on behalf of that company or entity in accordance with a duly adopted resolution of the company's board of directors or appropriate governing body and in accordance with that company's or entity's articles of incorporation or charter and bylaws or applicable formation documents; and
(ii) This CCA is binding on that company or entity in accordance with its terms; and
(iii) The company or entity is a duly organized and legally existing company or entity in good standing; and
(iv) The execution and delivery of this CCA by that company or entity shall not result in any breach of or constitute a default under any mortgage, deed of trust, loan agreement, credit agreement, partnership agreement, or other contract or instrument to which that company or entity is party or by which that company or entity may be bound.
12.20 No Damages Relief Against CITY. The parties acknowledge that the CITY would not have entered into this CCA had it been exposed to damage claims from LICENSEE, its agents, officers, employees, or anyone acting on behalf of LICENSEE for any breach thereof. As such, the parties agree that in no event shall LICENSEE, or LICENSEES' agents, officers, employees, partners, or anyone acting on behalf of LICENSEE be entitled to recover damages against CITY for breach of this CCA.
12.21 Laws. LICENSEE agrees to comply with all applicable state, regional, and local laws, regulations, polices and rules. In addition, LICENSEE further agrees to comply with all issued entitlements, permits, licenses, including any and all applicable development st andards.
Specifically, LICENSEE agrees to comply with all applicable provisions of BPMC.
12.22 Compliance with Conditions of Approval . LICENSEE agrees to comply with and fulfill all conditions of approval for any and all entitlement, permits, and/or licenses it receives from the CITY. All conditions of approval for all entitlements, permits and/or licenses are attached hereto and incorporated herein by this reference.
12.23 Consistent with State and Federal Regulations . The CITY acknowledges that this CCA shall be read consistent with any statewide or national regulation of commercial cannabis that is promulgated in the future, either by legislative action or voter approval. In the event national or statewide regulations are promulgated which decriminalize or legalize the adult -use of marijuana for recreational use, this CCA shall govern the conduct of the SITE under such future regulations.
12.24 Compliance with Applicable Laws . LICENSEE shall comply with all applicable laws, ordinances, administrative regulations, and permitting requirements in carrying out its obligations under this CCA.
12.25 Necessary Acts. Each Party shall execute and deliver such papers, documents, and instruments, and perform such acts as are necessary or appropriate, to implement the terms of the CCA and the intent of the Parties to the CCA.
12.26 Consultation with Counsel. The Parties have entered and executed this CCA freely and voluntarily based on their own independent judgment, after consultation with their respective counsel, and without duress, coercion, or undue influence of any kind.
12.27 Superseding Clause. This CCA supersedes the Prior CCA as to any other terms and conditions, consistent with section 12.2, above.
12.28. Documents Attached to this CCA. The following documents are attached to and, by this reference, are made part of this CCA:
No. 1 – Legal Description of the SITE;
No. 2 – Map showing SITE and its location;
No. 3 – CITY Cannabis Permit Application Form (proprietary information to be redacted); No. 4 – Landlord Consent;
No. 5 – Personal Guaranty;
No. 6 -- Project Plan;
No. 7 –Three years revenue projections from date of execution of CCA (to be updated annually);
No. 8 – Public Benefits Plan
No. 9--California State License Type ( Manufacturer and Self-Distribution), when issued by the DCC; and
No. 10- Checklist for Determination of Renewal of CCA by CEO (per § 3.4, herein).
[Signatures on the following page]
IN WITNESS WHEREOF, the parties hereto have caused this CCA to be executed as of the dates written above.
Date: ____________________, 2025 CITY OF BALDWIN PARK a California municipal corporation
By: ____________________________
Alejandra Avila, Mayor
Date: ____________________, 2025 CALIFORNIA HARVEST FUND, LLC, a California limited liability company
By: _____________________________
Name: Jason Turchin, Managing Partner
ATTEST:
Date: ____________________, 2025 By: ____________________________ Christopher Saenz, City Clerk
Approved as to Form:
Date: ____________________, 2025 By: _______________________________ Julia Sylva, Special Counsel
Commercial Cannabis Activity,
City of Baldwin Park
Date: ____________________, 2025 By: ________________________________ Alejandro Herrera,
Counsel to Licensee
No. 1 - Legal Description of SITE:
Lot 3 of Tract 36684, in the City of Baldwin Park as per Map recorded in Book 921 Pages 18 to 20, inclusive, of Maps, in the Office of the County Recorder, County of Los Angeles.
Common Address: 15023 Ramona Boulevard, Baldwin Park, CA 91706 Assessor’s Parcel Number: 8437-021-006
No. 2 – Map showing SITE and its location
No. 3 – CITY Cannabis Permit Application
(proprietary information to be redacted)
SEE ATTACHED.
No. 4 – Landlord Consent, if applicable
SEE ATTACHED.
No. 5 – Personal Guaranty
SEE ATTACHED.
No. 6 – Project Plan
SEE ATTACHED.
No. 7 – Financial Projections
TO BE DETERMINED.
No. 8 – Public Benefits Plan
The City of Baldwin Park will establish a “Public Benefits Fund” to allocate a portion of the Public Benefits Fee, which will be used to support community-based programs and activities in the City. The City will adopt a policy to provide guidelines and procedures for the distribution and use of these allocated public funds.
No. 9 -- California State License Types
Manufacturing State License Type:
Self-Distribution State License Type:
No. 10 – Checklist for Determination of Renewal of CCA by CEO
CITY OF BALDWIN PARK
Commercial Cannabis Agreement (CCA)
Checklist for Contract Renewal
as of November 2023
No. Task Status
1 Compliance with Payment of Fees to City
2 Compliance with City Ordinance, Title XI,
Chapter 127
3 Compliance with Environmental Requirements
4 Compliance with Local Hiring Requirements in
CCA
5 Compliance with Reporting Requirements to DCC
Consent to Sublease Form
15023 Ramona Blvd, Baldwin Park Ca 91706
Landlord's Information:
K8 INVESTOR HOLDINGS LLC
Attention Corey Eagle
120 S. Sierra Avenue, Solace Beach
Ca 92075, 858.683.7100
Email Address: ceaglebruttenglobal.com
Phone Number: 858.683.7100
Tenant's Information:
T-Rex Real Estate Holdings, LLC
Attention Juan H. Herrera
15260 Ventura Blvd Suite 1210
Sherman Oaks ca. 91403
Email Address: [email protected]
Phone Number: 818-968-2440
Subtenant's Information:
California Harvest Fund, LLC
Attention Jason Turchin
15023 Ramona Blvd
Baldwin Park Ca. 91706
Email Address: [email protected]
Phone Number: 818-335-3177
Property Information:
15023 Ramona Blvd
Baldwin Park Ca. 91706
Lease Start Date: 02/01/2024 Month-to-Month lease
Original Lease Agreement Reference: K8 Investor Holdings, LLC and T-Rex Real Estate Holdings, LLC
Effective Date of Sublease: March 1, 2024
DocuSign Envelope ID: A9371736-AB5B-4903-9169-B20746AB564F Docusign Envelope ID: 1E6F2B2F-188F-4B35-B87C-858A410E9B6E
The undersigned, being the Manager of K8 Investor Holdings, LLC, (the “Landlord”) the legal owner the property located at 15023 Ramona Blvd, Baldwin Park Ca 91706 (the “Property“) and the landlord under that certain lease to T-Rex Real Estate Holdings, LLC (the “Tenant” ) for the Property (the “Lease”), hereby grants its consent to Tenant to sublease the Property to California Harvest Fund, LLC, a California limited liability company (the “Subtenant”) under this Consent to Sublease, effective March
1, 2024 subject to the following conditions:
• T-Rex Real Estate Holdings, LLC, remains responsible for all obligations outlined in the original lease agreement.
• California Harvest Fund, LLC shall abide by the terms and conditions set forth in the original lease agreement and shall communicate directly with T-Rex Real Estate Holdings, LLC. regarding any concerns or issues related to the sublease. • This consent to sublease does not constitute a transfer of tenancy or release of T-Rex Real Estate Holdings, LLC. from any obligations under the original lease agreement. • This approval is contingent upon compliance with all terms and conditions set forth in the original lease agreement between K8 Investor Holdings, LLC and T-Rex Real Estate Holdings, LLC and is intended to facilitate the necessary approvals from the City of Baldwin Park.
• Additional terms as outlined below are hereby included in these conditions By signing below, the parties to this Consent to Sublease acknowledge that they have read and understand the terms and conditions of this consent to sublease the Property.
Landlord: K8 Investor Holdings, LLC Date: July 17, 2024 ________________________
Corey Eagle, Owner
Tenant: T-Rex Real Estate Holdings, LLC Date: _____________________ ________________________
Juan H. Herrera, CEO
Subtenant: California Harvest Fund, LLC Date: _____________________ ________________________
Jason Turchin,
Managing Member
Consent to Sublease:
Additional terms
• Both of this consent as well as any related lease, sublease, master lease or any other agreement shall expire and no longer be in effect at the earlier of a) City of Baldwin Park not approving and signing Settlement Agreement with K8 Investor Holdings LLC as result of City Council hearing on July 17th, 2024, b) City of Baldwin Park not approving T-Rex Real Estate Holdings LLC and/or California Harvest Fun LLC for a Cannabis Commercial Agreement as a result of City Council hearing on August 7th, 2024 or earlier date, or c) August 15th, 2024 at the latest.
Docusign Envelope ID: 1E6F2B2F-188F-4B35-B87C-858A410E9B6E 7/17/2024
7/17/2024
SUMMARY OF BASIC SUBLEASE
INFORMATION
This SUMMARY OF BASIC SUBLEASE INFORMATION (“Summary”) is hereby incorporated into and made a part of the attached Sublease Agreement, which pertains to the Subleased Premises described below. All references in the Sublease Agreement to the “Sublease” shallinclude this Summary. If there is any inconsistency between the Summary and the Sublease Agreement, the provisions of the Sublease Agreement shall control.
1.1 7HQDQWAddress:
1.2 SubWHQDQWAddress:
1.3 /DQGORUG$GGUHVV:
T-Rex Real Estate Holdings, LLC
15260 Ventura Blvd suite 1200
Sherman Oaks Ca. 91403
CALIFORNIA HARVEST FUND LLC
14431 Ventura Blvd Suite 270
Sherman Oaks, Ca 91423
.,19(6725+2/',1*6//&
166LHUUD$YHQXH
6RODQD%HDFK&D
1.4 Subleased Premises: 15023 Ramona Blvd, Baldwin Park Ca 91706
1.5 Initial Sublease Term: 0RQWKWRPRQWK
1.6 Rent Commencement
Date:
1. Monthly Rental:
1. Utilities:
1. Permitted Use:
1.1 Security Deposit:
1.1 Guarantor:
03/01/2024
$50,000.00 Fee per month.
SubWHQDQW shall be responsible for all utilities consumed at the Subleased Premises. This is meant to be a triple net sublease with SubWHQDQW responsible for all repairs, costs, and maintenance.
Premises shall be used for general office, administration, and use for cultivation, processing, product
manufacturing, distribution and wholesale operations of cannabis and cannabis products,
$50,000 due upon execution of sublease.
The SubWHQDQW will be subject to delivery of a fully
executed Guaranty of Lease executed by
7/30/2024
Docusign Envelope ID: DEC7DB64-5895-460E-9281-29D734EC0CBD 7/31/2024
7/31/2024
1.1 Commencement of Rent:
Jason Turchin in the form attached hereto
as Exhibit C.
The VXEWenant, California Harvest Fund, LLC, agrees
that the obligation to commence rent payments under
the Lease Agreement shall be contingent upon the
approval of the California State-issued cannabis
license from the Department of Cannabis Control
("DCC") and the California Department of Public
Health ("CDPH"). Rent payments shall commence
once the state and the City of Baldwin Park issue the
approval.
Additional term
• All of the Summary of Basic Sublease, the Consent to Sublease, as well as any related Lease, Sublease, Master Lease or any other Agreement shall expire and no longer be in effect at the earlier of a) City of Baldwin Park not approving and signing Settlement Agreement with K8 Investor Holdings LLC as result of City Council hearing on July 17th, 2024, b) City of Baldwin Park not approving T-Rex Real Estate Holdings LLC and/or California Harvest Fun LLC for a Cannabis Commercial Agreement as a result of City Council hearing on August 7th, 2024 or earlier date, or c) August 17th, 2024 at the latest. __________________________
Corey Eagle
K8 Investor Holdings, LLC
7/30/2024
Docusign Envelope ID: DEC7DB64-5895-460E-9281-29D734EC0CBD
CALIFORNIA HARVEST FUND LLC
Jason Turchin
7/31/2024
7/31/2024
Juan Herrera
T-REX REAL ESTATE
HOLDINGS LLC
SUBLEASE AGREEMENT
This Sublease Agreement (the “Sublease”) is made and entered into, effective as of the 26th day of )HEUXDU\,2024,(the “Effective Date”), by and among T-REX REAL ESTATE HOLDINGS LLC , on the one hand, (the " 7HQDQW") and CALIFORNIA HARVEST FUND LLC, a California limited Liability Company (the "Sub WHQDQW"). Each of 7HQDQW and Sub WHQDQW is sometimes referred to herein individually as a “Party”) and, collectively, as the "Parties").
Purpose. The Parties agree that the SubWHQDQW shall lease from the7HQDQW(the “Sublease")a total of 100% of the building of the 7HQDQWV leasehold interest in the premises locatedat 15023 Ramona Blvd, Baldwin Park Ca 91706, as described in Exhibit A, (the “Premises"), pursuant to the terms and conditions contained in that certain Lease Agreement by and between the /DQGORUG and T-Rex Real Estate Holdings, LLC (the “WHQDQW”), atrue and correct copy of which is attached as Exhibit B to this Agreement (the “Lease &RQVHQWWR6XEOHDVH”).Except where otherwise indicated, capitalized words used but not defined in this Sublease shall have the respective meanings given to them in the Lease, and each reference in this Sublease shall be deemed by the Parties, and construed, to incorporate all of the terms and conditions set forth in the Lease. Sublease Term .S u bWHQDQW shall occupy the Sublease RQ D PRQWKWRPRQWK WHUP .
Thecommencement date will begin 0DUFK VW
Guaranty. SuEWHQDQW shall provide to the satisfaction of the Landlord and the 7HQDQW,a Lease Guaranty, substantially in the form provided as Exhibit C attached to the Lease (a “Lease Guaranty”).
Rent. SuEWHQDQW shall pay, throughout the Sublease Werm, an amount equal to Fifty Thousand Dollars ($50,000.00 per month, and its pro rata proportion of any other charges, taxes, utilities and assessments for whichWHQDQW
is obligated to pay under the Lease. Rentis
due on the 1st of every month. Late fee of 10% will be added if rent is not received by the5th day of the month. This includes fees payable under the Management Agreement 5HQW SD\PHQWVVKDOOFRPPHQFHRQFHWKH6WDWHDQGWKH&LW\RI%DOGZLQ3DUNLVVXHWKHDSSURYDO Security Deposit . Upon execution of this Sublease Agreement, Sub WHQDQW shall remit to WHQDQW a Security Deposit in the amount of )LIW\ Thousand Dollars ($50,000.00).
Security Deposit payments shall commence once the state and the City of Baldwin Park issue the approvalDQGXSRQWKHDSSURYDORIWKH&DOLIRUQLD6WDWHLVVXHGFDQQDELVOLFHQVH IURPWKH'HSDUWPHQWRI&DQQDELV&RQWURO
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Subleasing and Assignment. SubWHQDQW may not lease, sublease, or assign the Sublease hold without the prior written consent of the WHQDQW and the Landlord, as applicable. In no event, may Sub WHQDQW make any Restricted Transfer as defined and set forth in Section 18 of the Lease without obtaining the WHQDQWV and the Landlord’s prior written consent,which SubWHQDQW understands and agrees may be given or withheld in their sole discretion.
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Any purported Sublease of the Sublease hold space in the Premises, shall be in writing, and signed by all Parties thereto. Any sublease or assignment which is made without adhering to the provisions of this Section 6 shall be null and void ab initio. Compliance with Laws. The Parties each hereby agree that in the custody and use of their respective allocated portions of the Premises, no Party will take, omit to take, or suffer to be taken by any other person any act, where the taking, omission, or occurrence of such act on the Premises, does, will, or could reasonably be expected to, create a breach or violation (including without limitation upon the giving of notice or the passage of time, or both), of any Laws and Orders, as defined in and described in Section 7.1 of the Lease. Additionally, the SubWHQDQW further covenants and agrees to the 7HQDQW, that throughout its usage of the Sublease hold, it shall not, and shall permit any other person to, take or omit to take any action which does or could jeopardize in any respect, the 7HQDQWV rights and interests in and to its Licenses provided by the Bureau of Cannabis Control, CA Department of Consumer Affairs (the “Licenses”). The SuEWHQDQW hereby agrees to indemnify and hold harmless the WHQDQW, its partners, owners, officers, directors, managers, consultants, employees, agents, contractors, representatives, attorneys, joint venturers and other affiliates, and any of their respective, partners, employees, managers, consultants, attorneys, landlords, spouses, domestic partners, agents, representatives, from and against any damages, claims, injuries, obligations or other liabilities, arising or resulting from any breach or violation of SubWHQDQW of the provisions of this Section 7 of the Lease. Complete and Binding Agreement; Controlling Agreement. All prior discussions, negotiations, agreements, understandings, and undertakings between the Parties are merged into, and superseded by, the terms of this Sublease. Any modification to this Agreement must be in writing, signed by both 7HQDQW and Sub WHQDQW. In the event that any discrepancy between this Sublease and the Lease shall arise, the Lease shall be the controlling document, and the Parties shall work together in good faith to modify this Sublease so as to conform with the Lease.
Notices. All communications required or permitted under this Agreement shall be in writing and shall be deemed to have been duly given when personally delivered or when mailed by United States express, certified or registered mail, postage prepaid to the legal mailing addresses of the Parties.
Construction. This Agreement shall be governed by the internal laws of the State of California, without giving effect to the principles of conflicts of law applied thereby. Any dispute arising hereunder may be brought in any court of the State of California sitting in and for the County of Los Angeles. In the event that either Party shall be required to bring or defend against any action or otherwise to enforce any of its rights under this Letter, the prevailing Party in such action shall be entitled to recover from the non-prevailing Party all of the costs and expenses incurred in bringing or defending against such action (including, without limitation, reasonablyattorney’sfees and expenses). Counterparts; Facsimiles; Electronic Scans . This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Facsimiles and electronic scans
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containing original signatures shall be dee med for all purposes to be originally-signed copies of the documents which are the subject of such facsimiles or scans.
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SIGNATURE PAGE
IN WITNESS WHEREOF, the Parties hereto have executed this Sublease as of the day and year written below.
7(1$17:
T-REX REAL ESTATE HOLDINGS, LLC
By:
Juan Herrera
Chief Executive Officer
SU%7(1$17:
CALIFORNIA HARVEST FUND, LLC
By:
Name:
Title:
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EXHIBIT A
LEGAL DESCRIPTION
Property address: 15023 Ramona Blvd, Baldwin Park Ca 91706 County: Los Angeles
Parcel ID: APN 8437-021-006
Census Tract 405201
Block 21
Tract 36684
Lot No. 3
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EXHIBIT B
COPY OF MASTER LEASE
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Consent to Sublease Form
5DPRQD%OYG%DOGZLQ3DUN&D
Landlord's Information:
.,19(6725+2/',1*6//&
Attention &RUH\(DJOH
66LHUUD$YHQXH6RODQD%HDFK
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Email Address: FHDJOHEUXWWHQJOREDOFRP
Phone Number:
Tenant's Information:
T-Rex5HDO(VWDWH+ROGLQJV//&
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15260 Ventura Blvd Suite 1210
Sherman Oaks ca. 91403
Email Address: [email protected]
Phone Number: 818-968-2440
Subtenant's Information:
&DOLIRUQLD+DUYHVW)XQG, LLC
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5DPRQD%OYG
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Email Address: MDVRQWXUFKLQ#JPDLOFRP
Phone Number: 8
Property Information:
5DPRQD%OYG
%DOGZLQ3DUN Ca.
Lease Start Date:0RQWKWR0RQWKOHDVH
Original Lease Agreement Reference: .,QYHVWRU+ROGLQJV, LLC and T-Rex 5HDO(VWDWH +ROGLQJV//&
Effective Date of Sublease: 0DUFK 2024
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The undersigned, being the Manager of .,QYHVWRU+ROGLQJV, LLC, (the “Landlord”) the legal owner the property located at 5DPRQD%OYG%DOGZLQ3DUN&D (the “Property“)
and the landlord under that certain lease to T-Rex 5HDO(VWDWH+ROGLQJV//& (the “Tenant”) for the Property (the “Lease”), hereby grants its consent to Tenant to sublease the Property to &DOLIRUQLD+DUYHVW)XQG, LLC, a California limited liability company (the “Subtenant”) under this Consent to Sublease, effective 0DUFK 1, 202 subject to the following conditions:
x T-Rex 5HDO(VWDWH+ROGLQJV//&, remains responsible for all obligations outlined in the original lease agreement
x &DOLIRUQLD+DUYHVW)XQG, LLC shall abide by the terms and conditions set forth in the original lease agreement and shall communicate directly with T-Rex5HDO(VWDWH +ROGLQJV//&. regarding any concerns or issues related to the sublease. x This consent to sublease does not constitute a transfer of tenancy or release of T-Rex 5HDO(VWDWH+ROGLQJV//&. from any obligations under the original lease agreement. x 7KLVDSSURYDOLVFRQWLQJHQWXSRQFRPSOLDQFHZLWKDOOWHUPVDQGFRQGLWLRQVVHWIRUWKLQ WKHRULJLQDOOHDVHDJUHHPHQWEHWZHHQ.,QYHVWRU +ROGLQJV//&DQG75H[5HDO (VWDWH+ROGLQJV//&DQGLVLQWHQGHGWRIDFLOLWDWHWKHQHFHVVDU\DSSURYDOVIURPWKH &LW\RI%DOGZLQ3DUN
x $GGLWLRQDOWHUPVDVRXWOLQHGEHORZDUHKHUHE\LQFOXGHGLQWKHVHFRQGLWLRQV By signing below, the parties to this Consent to Sublease acknowledge that they have read and understand the terms and conditions of this consent to sublease the Property.
Landlord: .,QYHVWRU+ROGLQJV, LLC Date: -XO\ ________________________
&RUH\(DJOH, 2ZQHU
Tenant: T-Rex 5HDO(VWDWH+ROGLQJV//& Date: _____________________ ________________________
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Subtenant: &DOLIRUQLD+DUYHVW)XQG, LLCDate: _____________________ ________________________
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Consent to Sublease:
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EXHIBIT C
GUARANTY OF SUBLEASE
THIS GUARANTY OF LEASE(“Guaranty”) is dated February 26th, 2024 and is made and entered into by JASON TURCHIN, an individual residing in the County of Los Angeles, State of California, (“Guarantor”) to be effective as of the date of the Sublease (as defined below).
RECITALS
A. This Guaranty is being executed and delivered by Guarantor as an essential inducement to that certain Sublease dated as of February 26 th, 2024 (the “Sublease”), between 7 REX REAL ESTATE HOLDINGS LLC as 7HQDQW and CALIFORNIA HARVEST FUND LLC, a California limited Liability Company, as SuEWHQDQW, covering the Premisesas described in the Sublease.
% Unless otherwise defined in this Guaranty, all capitalized terms used in this Guaranty have the same definitions as are set forth in the Sublease.
AGREEMENT
For good and valuable consideration, the re ceipt and sufficiency of which are hereby acknowledged, Guarantor agrees, covenants, represents and warrants as set forth below.
1. Guaranty . Guarantor hereby unconditionally guarantees the timely payment and performance of all rent, charges, and obligations of Sublessee under the Sublease and all other documents evidencing or securing the obligati ons under the Sublease existing and/or accruing during the Sublease Term, including, without limitation, Sublessee’s obligations to pay all base rent, percentage rent, additional rent, common area maintenance costs and expenses, taxes and to perform all of Sublessee’s obligations under the Sub lease including, without limitation, maintenance and indemnity obligations unde r the Sublease (collectively, the “Guarantied Obligations”). This Guaranty is an absolute guarant y of payment and performance and not of collection. This Guaranty will survive the termin ation of the Sublease and will continue in full force and effect with respect to any of Sublessee’s obligations under the Sublease which are not fully performed.
2. Rights of Sublessor . Guarantor authorizes Sublessor to, at any time and from time to time, in Sublessor’s discretion, (a) take and hold, and apply, any security for the Guarantied Obligations; (b) accept addition al or substituted security; (c) subordinate, compromise or release any security; (d) release S ublessee or any other person from its liability for all or any part of the Guarantied Obligations; (e) participate in any settlement offered by Sublessee or any guarantor, whether in liquidation, reorganization, receivership, bankruptcy or otherwise; (f) release, substitute or add any one or more guarantors or endorsers; (g) assign this Guaranty and/or the Guarantied Obligations in whole or in part; or (h) modify, extend and/or amend the Guarantied Obligations. Sublessor may take any of the foregoing actions upon any terms and conditions as Sublessor may elect, without giving notice to Guarantor or obtaining the consent of Guarantor and without affecting the liability of Guarantor to Sublessor.
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3. Independent Obligations . Guarantor’s obligations under this Guaranty are independent of those of Sublessee or of any other guarantor. Sublessor may bring a separate action against Guarantor without proceeding (either before, after or concurrently) against Sublessee or any other guarantor or person or any security held by Sublessor and without pursuing any other remedy. Sublessor’s rights under this Guaranty shall not be exhausted by any action of Sublessor until all of the Guarantied Obligations have been fully performed.
4. Waiver of Defenses. Guarantor waives:
4.1 Any right to require Sublessor to proceed against Sublessee or any other person or any security now or hereafter held by Sublessor or to pursue any other remedy whatsoever, including, without limitation, any such right or any other right set forth in or arising out of Sections 2845, 2848, 2849, 2850, 2855 or 3433 of the California Civil Code.
4.2 Any defense based upon any legal disability of Sublessee or any guarantor, or any discharge or limitation of th e liability of Sublessee or any guarantor to Sublessor, or any restraint or stay applicable to actions against Sublessee or any other guarantor, whether such disability, discharge, limitation, re straint or stay is consensual, or by order of a court or other governmental authority, or aris ing by operation of law or any liquidation, reorganization, receivership, bankruptcy, insolven cy or debtor-relief proceeding, or from any other cause.
4.3 All setoffs, counterclaims, presentment, demand, protest or notice of any kind, except for any notice which may be expressly required by the provisions of this Guaranty.
4.4 Any defense based upon the modification, renewal, extension or other alteration of the Guarantied Obligations, or of the documents executed in connection therewith.
4.5 Any defense based upon the negligence of Sublessor, including, without limitation, the failure to file a claim in any bankruptcy of the Sublessee or any guarantor.
4.6 Any defense based upon a statute of limitations and any defense based upon Sublessor’s delay in enforcing this Guaranty.
4.7 All rights of subrogation, reimbursement, indemnity, all rights to enforce any remedy that Sublessor may have against Sublessee, and all rights to participate in any security held by Sublessor for the Guarantied Obligations , including, without limitation, any such right or any other right set forth in Sections 2845, 2848 or 2849 of the California Civil Code, until the Guarantied Obligations have been paid and performed in full.
4.8 Any defense based upon or arising out of any defense that the Sublessee or any other person may have to the performance of any part of the Guarantied Obligations other than Sublessor’s prior material breach.
4.9 Any defense based upon the death, incapacity, lack of authority or termination of existence or revocat ion hereof by any person or entity or persons or entities, or the substitution of any party hereto.
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4.10 Any defense based upon or related to Guarantor’s lack of knowledge as to Sublessee’s financial condition.
4.11 Any defense based upon Section 2809 of the California Civil Code.
4.12 Any and all rights to revoke this Guaranty in whole or in part, and all rights and benefits of Section 2815 of the California Civil Code.
4.13 Any defense based upon any action taken or omitted by Sublessor in any bankruptcy or other insolvency proceeding involving Sublessee, including any election to have Sublessor’s claim allowed as secured, partia lly secured or unsecured, any action taken by t he Sublessor in connection with a motion to assume , assign or reject the Sublease, any extension of credit by the Sublessor to the Sublessee in any such proceeding, and the taking and holding by the Sublessor of any security for any such extension of credit.
4.14 Any right or defense that is or may become available to the Guarantor by reason of California Civil Code Sections 2787 to and including 2855, 2899 and 3433.
4.15 All rights and defenses arising out of an election of remedies by Sublessor, even though that election of remedies destroys or impairs Guarantor’s right of subrogation and/or reimbursement against Sublessee.
5. Bankruptcy.
5.1 Until all of the Guarantied Obligations have been paid and performed in full, Guarantor shall not, without the prior written consent of Sublessor, commence, or join with any other person in commencing, any bankruptcy, reorganization, or insolvency proceeding against Sublessee. The obligations of Guarantor under this Guaranty shall not be altered, limited, or affected by any proceeding, voluntary or invol untary, involving the bankruptcy, insolvency, receivership, reorganization, liquidation, or arrangement of Sublessee, or by any defense Sublessee may have by reason of any order, decree, or decision of any court or administrative body resulting from any such proceeding. No limitation upon or stay of the enforcement of any obligation of Sublessee by virtue of any such proceeding shall limit or stay Sublessor’s enforcement of Guarantor’s payment or performance of such obligation under this Guaranty. In furtherance of the foregoing, Guarantor agrees that if acceleration of the time for payment of any amount payable by Sublessee under the Sublease or in respect of the other Guarantied Obligations is stayed for any reason, all such amounts which would be subject to acceleration shall nonetheless be deemed to be accelerated for purposes of this Guaranty and the full amount thereof shall be payable by Guarantor hereunder forthwith upon demand.
5.2 Guarantor shall file in any bankruptcy or other proceeding in which the filing of claims is required or permitted by law all claims that Guarantor may have against Sublessee relating to any indebtedness of Sublessee to Guarantor, and will upon request assign to Sublessor all rights of Guarantor thereunder. In all such cases, whether in administration, bankruptcy, or otherwise, the person or persons authorized to pay such claim shall pay to Sublessor the amount payable on such claim. Guar antor hereby assigns to Sublessor all of the Guarantor’s rights to any such payments or distributions to which Guarantor would otherwise
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be entitled; provided, however, that Guarantor’s obligations hereunder shall not be satisfied except to the extent that Sublessor receives cash by reason of any such payment or distribution.
If Sublessor receives anything hereunder other than cash, the same shall be held as collateral for amounts due under this Guaranty.
6. Costs and Expenses . Guarantor agrees to pay, upon Sublessor’s demand, Sublessor’s reasonable out-of-pocket costs and expenses, including but not limited to attorneys’ fees, costs and disbursements, incurred in any effort to collect or enforce any of the Guarantied Obligations or this Guaranty, regardless whether a ny lawsuit is filed, and in the representation of Sublessor in any insolvency, bankruptcy, re organization or similar proceeding relating to Sublessee or Guarantor. Until paid to Sublessor, such sums will bear interest from the date such costs and expenses are incurred at the rate set forth in the Sublease for past due obligations. The obligations of the Guarantor under this Section s hall include payment of all such costs and expenses incurred by Sublessor in enforcing any judgments.
7. Reinstatement . The liability of Guarantor here under will be reinstated and revived, and the rights of Sublessor will continue, with respect to any amount at any time paid on account of the Guarantied Obligations which Sub lessor is thereafter required to restore or return or which is avoided in connection with the bankruptcy, insolvency or reorganization of Sublessee or otherwise, all as though such amount had not been paid. The determination as to whether any such payment or performance must be restored or returned will be made by Sublessor in its sole discretion; provided, however, that if Sublessor chooses to contest any such matter, Guarantor agrees to indemnify, defend and hold harmless Sublessor from all costs and expenses (including, without limitation, reasonab le legal fees and disbursements) of such contest. Further, upon demand from Sublessor, Guarantor will restore or return such payment or performance directly on Sublessor’s behalf in furtherance of Guarantor’s obligations hereunder.
Sublessor will be under no obligation to retu rn or deliver this Guaranty to Guarantor, notwithstanding the payment of the Guarantied Obligations. If this Guaranty is nevertheless returned to Guarantor or is otherwise released, then the provisions of this Guaranty will survive such return or release, and the liability of Guaran tor under this Guaranty will be reinstated and continued under the circumstances provided herein notwithstanding such return or release.
8. Subordination . Any indebtedness of Sublessee to Guarantor now or hereafter existing shall be, and such indebtedness here by is, deferred, postponed and subordinated to payment and performance of the Guarantied Ob ligations. Any payment made to Guarantor by Sublessee or any third party with respect to the indebtedness subordinated hereunder at any time when an Event of Default exists under the Sublease or while any Guarantied Obligations are otherwise then payable or performable shall be he ld in trust by Guarantor for the benefit of Sublessor and shall be turned over to Sublessor immediately upon receipt thereof for application by Sublessor against the Guarantied Obligations. Any lien, charge or claim which Guarantor now has or hereafter may have on or to any re al or personal property of Sublessee (including without limitation any real property subject of the Sublease, the personal property located thereon, any rights therein and related thereto, and the revenue and/ or income realized therefrom) and any security for any loans, adva nces or other indebtedness of Sublessee to Guarantor, shall be, and hereby is, subordinated to the payment and performance of the Guarantied Obligations.
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9. Representations and Warranties . Guarantor makes the following representations and warranties, which are de emed to be continuing representations and warranties until payment and performance in full of the Guarantied Obligations.
9.1 Guarantor has all the requisite power and authority to execute, deliver and be legally bound by this Guaranty on the terms and conditions herein stated. Guarantor is a California corporation validly existing and in good standing in the State of California with the full power and authority to enter into this Guaranty.
9.2 Guarantor has all the requisite power and authority to transact any other business with Sublessor as necessary to fulfill the terms of this Guaranty.
9.3 This Guaranty constitutes the legal, valid and binding obligations of Guarantor enforceable against Guarantor in accordance with its terms.
9.4 Neither the execution and de livery of this Guaranty nor the consummation of the transaction contemplate d hereby will, with or without notice and/or lapse of time, (a) constitute a breach of any of the terms and provisions of any note, contract, document, agreement or undertaking, whether written or oral, to which Guarantor is a party or to which Guarantor’s property is subject; (b) accelerate or constitute a ny event entitling the holder of any indebtedness of Guarantor to accelerate the maturity of any such indebtedness; (c) conflict with or result in a breach of any writ, ord er, injunction or decree against Guarantor of any court or governmental agency or instrumentality; or (d) conflict with or be prohibited by any federal, state, local or other governmental law, statute, rule or regulation.
9.5 No consent of any other person not heretofore obtained and no consent, approval or authorization of any person or entity is required in connection with the valid execution, delivery or performance by Guarantor of this Guaranty.
9.6 Guarantor will receive substantial and material benefits from the leasing of the Premises to Sublessee and the consideration received by Guarantor for this Guaranty is sufficient in all respects.
9.7 Guarantor presently has and will at all times maintain sufficient assets and tangible net worth to timely pay and perform all of the Guarantied Obligations, and Guarantor will not take any action nor participate in any transaction which would materially impair Guarantor’s ability to so pay and perform the Guarantied Obligations.
9.8 Neither this Guaranty nor any other statement furnished by Guarantor to Sublessor in connection with the transactions contemplated hereby (including, without limitation, any financial statements or other business information) contains any untrue statement of material fact or omits to state a material fact necessary in order to make the statements contained herein or therein true and not misleading.
10. Joint and Several Liability . The obligations, waivers, promises, representations and warranties set forth herein are the joint a nd several undertakings of each of the persons or entities executing this Guaranty as a Guarantor and of any other guarantors or other persons or
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entities obligated from time to time with respect to the Guarantied Obligations. Sublessor may proceed hereunder against any one or more of said persons or entities without waiving its rights to proceed against any of the others. Any married person who executes this Guaranty agrees that recourse may be had against his or her separate and community property.
11. Inducement; No Assignment . Guarantor acknowledges that the undertakings given in this Guaranty are given in consideration of Sublessor’sentering into the Sublease and that Sublessor would not enter into the Sublea se but for the execution and delivery of this Guaranty. Guarantor’s obligations hereunder are personal to Guarantor and Guarantor may not assign or delegate any of its obligati ons under this Guaranty without Su blessor’s prior written consent, which consent may be withheld in Sublessor’s sole, absolute and arbitrary discretion.
12. Guarantor Information . Guarantor will promptly supply such financial statements and business information regarding Guarantor as may reasonably be requested from time to time by Sublessor or any lender or prospective purchaser of Sublessor for the purpose of evaluating the creditworthiness of Guarantor and Guarantor’s ability to perform its obligations under this Guaranty.
13. Sublessee’s Financial Condition. Guarantor is relying upon its own knowledge and has made such investigation as Guarantor has deemed necessary with respect to Sublessee’s financial condition. Guarantor a ssumes full responsibility for keeping fully informed of the financial condition of Sublessee and all other circumstances affecting Sublessee’s ability to pay and perform its obligations under the Sublease, a nd agrees that Sublessor will have no duty to report to Guarantor any information which Sublessor rec eives about Sublessee’s financial condition or any circumstances bearing on Sublessee’s ability to perform.Guarantor agrees that Sublessor has made no representations or assurances regarding Sublessee’sfinancial condition or Sublessee’s ability to pay and perform Sublessee’s obligations under the Sublease.
14. Default . The occurrence of any one or more of the following events shall, at the election of Sublessor, be deemed an event of default under this Guaranty: (a) Guarantor fails to pay any monetary Guarantied Obligation within five days after demand from Sublessor; (b) Guarantor fails to perform any non-monetary Guarantied Obligation within 15 days after demand therefor from Sublessor (or, Guarant or is not able through the use of commercially reasonable efforts to perform such Guaranteed Obligation with a 15-day period, if Guarantor does not commence to perform such obligation within such 15-day period and diligently pursue such performance to completion within an additi onal 60 days after the expiration of the initial 15-day period); (c) Guarantor fails or neglects to perform, keep or observe any other term, provision, agreement or covenant contained in this Guaranty; (d) the commencement of any liquidation, reorganization, receivership, bankruptcy, assignment for the benefit of creditors or other similar proceeding by or against Guarantor; (e) if any representation or warranty made in this Guaranty shall be or become false in any material respect; or (f) the death, legal incapacity, dissolution or termination of the Guarantor. U pon the occurrence of an event of default under this Guaranty, at the option of Sublessor, the Guarantied Obligations shall be accelerated and shall all be due and payable and enforceable against Guarantor (regardless whether the Guarantied Obligations are then due and payable under the Sublease or otherwise) and Sublessor may, in its sole discretion, in addition to any other right or remedy provided by law or at equity, all of which are cumulative and non-exclusive, proceed to suit against the Guarantor.
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15. Transfer by Sublessor . If Sublessor obtains Master Lessor’s consent to transfer, encumber or assign (other than for collateral security purposes) a majority of Sublessor’s membership interests or any other form of assign ment as defined under the Master Lease, this Guaranty shall automatically apply in favor of Master Lessor with respect to all Guarantied Obligations arising or accruing from and after the date of the transfer. In addition, this Guaranty shall remain in full force and effect in favor of the transferor with respect to all Guarantied Obligations arising or accruing under the Sublease prior to the date of the transfer including, without limitation, all Guarantied Obligations relating to Sublessee’s Indemnity and insurance obligations (and similar obligations) under the Sublease with respect to matters arising or accruing during the transferor’s period of ownership.
16. Severability . If any one or more of the cove nants, provisions or terms of this Guaranty is, in any respect, held to be invalid, illegal or unenforceable for any reason, the remaining portion thereof and all other covenant s, conditions, provisions, and terms of this Guaranty will not be affected by such holding, bu t will remain valid and in force to the fullest extent permitted by law.
17. Notices . All notices, demands and other communications with, to, from or upon the Guarantor and the Sublessor required or perm itted hereunder shall be in writing, addressed to the parties at their respective addresses as follows: (a) with respect to Sublessor, to the notice address(es) for Sublessor under the Sublease; and (b) with respect to Guarantor, unless a separate notice address is specified on the signature page of this Guaranty, to Guarantor in care of Sublessee at the notice address(es) for Sublessee under the Sublease; or (c) as to either, at such other address as shall be designated in a written notice to the other complying with the terms of this Section.
All such communications shall be deemed effective upon the earliest of (i) actual delivery if delivered by personal delivery; (ii) four Busine ss Days following deposit, first class postage prepaid, with the United States mail; (iii) if sent by certified postage prepaid mail, upon the earliest to occur of (a) four Business Days followi ng deposit thereof in the United States mail, or (b) receipt (or refusal to accept delivery); or (iv) on the next Business Day after deposit with an overnight air courier with request for next business day delivery.
18. Miscellaneous. No provision of this Guaranty or Sublessor’s rights hereunder may be waived or modified nor can Guarantor be released from its obligations hereunder except by a writing executed by Sublessor. No such waiver shall be applicable except in the specific instance for which given. No delay or failure by Sublessor to exercise any right or remedy against Sublessee or Guarantor will be construed as a waiver of that right or remedy. All remedies of Sublessor against Sublessee and Guarantor are cumulative. This Guaranty shall be governed by and construed under the laws of the State of California. The provisions of this Guaranty will bind and benefit the heirs, executors, administrators, legal representatives, successors and assigns of Guarantor and Sublessor. The term “Sublessee” will mean not only the Sublessee named herein but also any other person or entity at any ti me occupying all or any portion of the Premises or assuming or otherwise becoming liable (other than as a guarantor) for all or any part of the Guarantied Obligations. This Guaranty constitutes the entire agreement between Guarantor and Sublessor with respect to its subject matter, and supersedes all prior or contemporaneous agreements, representations and understandings.
Docusign Envelope ID: DEC7DB64-5895-460E-9281-29D734EC0CBD
All headings in this Guaranty are for c onvenience only and shall be disregarded in construing the substantive provisions of this Guaranty.
IN WITNESS WHEREOF, this Guaranty has been duly executed on behalf of Guarantor and delivered to Sublessor as of the date set forth above, to be effective as of the Effective Date set forth in the Sublease.
GUARANTOR:
Name: Jason Turchin
Title: OWNER
A Resident of Los Angeles County, California
By:
Name:
Notice Address for Guarantor:
______________________________
______________________________
______________________________
%
#
!
#
" $!
Docusign Envelope ID: DEC7DB64-5895-460E-9281-29D734EC0CBD
ITEM NO: 10.
STAFF REPORT
TO: Honorable Mayor and Members of the City Council
FROM: Manuel Carrillo Jr, Chief Executive Officer
PREPARED BY: Shirley Quinones, Chief Deputy City Clerk
DATE: July 16, 2025
SUBJECT: Meeting Minutes of June 10, 2025
SUMMARY:
The City Council held the following meeting on June 10, 2025; Special City Council Meeting.
RECOMMENDED ACTION:
It is recommended that the City Council approve the following meeting minutes of the Special City Council Meeting held June 10, 2025.
FISCAL IMPACT:
There is no fiscal impact associated with this item.
BACKGROUND:
None
DISCUSSION:
None
ALTERNATIVES:
None
CEQA REVIEW:
None
LEGAL REVIEW:
This report does not require legal review.
ATTACHMENTS:
1. 06-10- 2025 SPECIAL Meeting Minutes
CITY COUNCIL
SPECIAL MEETING
Minutes
June 10, 2025, 7:00 PM
Mayor
Mayor Pro Tem
Councilmember
Councilmember
Councilmember
Alejandra Avila
Daniel Damian
Jean M. Ayala
Emmanuel J. Estrada
Manuel Lozano
These minutes are presented in Agenda order.
CALL TO ORDER
The meeting was called to order at approximately 7:00 p.m. by Mayor Avila.
ROLL CALL
City Clerk Saenz performed roll call:
MEMBERS:
Council Member Jean M. Ayala (present)
Council Member Emmanuel J. Estrada (present arrived at 7:02 p.m.) Council Member Manuel Lozano (absent)
Mayor Pro Tem Daniel Damian (present)
Mayor Alejandra Avila (present)
MOTION: It was moved by Mayor Pro Tem Damian, seconded by Councilmember Ayala to excuse Councilmember Lozano Passed [3-0] AYES: AYALA, DAMIAN, AVILA
PUBLIC COMMUNICATIONS
The Mayor Pro Tem opened Public Communications at approximately 7:01 p.m., seeing no one wishing to speak public communications was closed.
OPEN SESSION/STUDY SESSION
RECESS CLOSED SESSION – City Council recessed to Closed Session at approximately 7:02 p.m.
1. Threat to Public Services or Facilities (Government Code § 54957) Consultation with: Robert A. Lopez, Chief of Police, Baldwin Park Police Department Daniel Padilla, Director of Public Works, City of Baldwin Park
No Reportable Action
ADJOURNMENT
The meeting was adjourned at approximately 8:13 p.m. by Mayor Pro Tem Damian.
ATTEST:
________________________
Christopher Saenz, City Clerk
Alejandra Avila, Mayor
APPROVED: July 16, 2025
ITEM NO: 11.
STAFF REPORT
TO: Honorable Mayor and Members of the City Council
FROM: Daniel Padilla, Director of Public Works
PREPARED BY: Lena Abdullah, Management Analyst
DATE: July 16, 2025
SUBJECT: Public Hearing and Adoption of Resolution No. 2025-021 “A Resolution of The City Council of The City of Baldwin Park, California, Ordering the Annual Levy and Collection of
Assessment Associated with the Citywide Park Maintenance Assessment District for FY2025-2026, and Authorizing the Los Angeles County Assessor to Add this Special Assessment to the Property Tax Bills."
SUMMARY:
The purpose of this report is to outline the required Public Hearing and subsequent adoption of a resolution ordering the annual levy and collection of assessments related to the Citywide Park Maintenance Assessment District for FY2025-2026.
RECOMMENDED ACTION:
It is recommended that the City Council hold a Public Hearing and after considering testimony, adopt Resolution No. 2025-021 entitled “A Resolution of The City Council of The City of Baldwin Park, California, Ordering the Annual Levy and Collection of Assessment Associated with the Citywide Park Maintenance Assessment District for Fiscal Year 2025-2026, and Authorizing the Los Angeles County Assessor to Add this Special Assessment to the Property Tax Bills.” and authorize the Director of Finance to make the necessary appropriation and budget adjustmetns.
FISCAL IMPACT:
The District’s anticipated revenue and expenditures were estimated at the time of the preparation of the Engineer’s Report and presented to the City Council and subsequently approved on June 4, 2025. The Citywide Park Maintenance Assessment District (PMD) revenue for FY2025-2026 is estimated at $964,578. The revised estimated expenditure is $1,046,290 with a transfer of $81,712 from the General Fund to cover estimated shortage.
BACKGROUND:
The purpose of the Citywide Park Maintenance Assessment District is to serve as mechanism for the financing of operations and maintenance associated with City Parks. It is recommended that the City continue these parks maintenance programs and fund them through special assessments provided by the PMD.
In 1996, City of Baldwin Park property owners approved the formation of a Park Maintenance Assessment District to financially support these programs, and the PMD’s formation was established in conformance with proposition 218.
DISCUSSION:
On June 5, 2025, the City Council adopted Resolution No. 2025-011 which approved the Engineer’s Report for the PMD, declared its intent to levy and collect assessments, and set a date and time for the public hearing as July 16, 2025. The Public Hearing notice was posted as required.
ALTERNATIVES:
None
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 the 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. PMD Reso 2025-021
2. Public Notice 2025
RESOLUTION NO. 2025-021
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BALDWIN PARK,
CALIFORNIA, ORDERING THE ANNUAL LEVY AND COLLECTION OF
ASSESSMENTS ASSOCIATED WITH THE CITYWIDE PARK
MAINTENANCE ASSESSMENT DISTRICT FOR FY2025-2026, AND
AUTHORIZING THE LOS ANGELES COUNTY ASSESSOR TO ADD THIS SPECIAL ASSESSMENT TO THE PROPERTY TAX BILLS.
WHEREAS, the City Council has previously ordered the formation of PARK MAINTENANCE ASSESSMENT DISTRICT FY2025-2026 (hereinafter referred to as the “DISTRICT”) pursuant to the terms and provisions of the “Landscaping and Lighting Act of 1972” being Part 2 of Division 15, of the California Streets and Highway Code; and
WHEREAS, the City Council has adopted Resolution No. 2025-011 approving the Engineer’s Report pursuant to the Provisions of Division 15, Part 2 of the Streets and Highways Code and Article XIIID of the State Constitution, declaring its intention to order the annual levy and collection of assessments, and giving notice of the time and place for a Public Hearing on the questions of the levy of the proposed assessments; and
WHEREAS, the City Council has heard all testimony and evidence, and is desirous of proceeding with the levy of annual assessments for the District.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF
BALDWIN PARK DOES HEREBY RESOLVE AND ORDER AS
FOLLOWS:
SECTION 1. That the above recitals are all true and correct.
SECTION 2. That the City Council hereby orders the maintenance work performed on the District as set forth in the Engineer’s Report for FY2025-2026, and orders the annual levy and collection of assessment of the District as shown and set forth and described in said report and declaration of intention.
SECTION 3. That the adoption of this Resolution constitutes the levy of the assessments for the fiscal year commencing July 1, 2025, and ending June 30, 2026.
SECTION 4. That the Los Angeles County Assessor, which collects assessments on the City’s behalf, shall enter on the Assessment Roll the amount of the assessments, and said assessments shall be collected and the net amount of the assessments shall be paid to the City Treasurer of the City of Baldwin Park.
SECTION 5. That the City Treasurer has established a special fund known as the “CITY OF BALDWIN PARK CITYWIDE MAINTENANCE DISTRICT FUND” into which the City Treasurer shall place all monies collected by the Tax Collector pursuant to the provisions of this Resolution.
SECTION 6. That a certified copy of the assessment and diagram shall be filed in the office of the City Engineer and a certified copy of the diagram and assessment roll filed with the Los Angeles County Assessor, together with a certified copy of this resolution upon its adoption.
SECTION 7. The City Clerk shall certify to the adoption of this Resolution.
PASSED, APPROVED, AND ADOPTED this 16th day of July 2025. __________________
Alejandra Avila
Mayor
ATTEST:
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS:
CITY OF BALDWIN PARK )
I, Christopher Saenz, City Clerk of the City of Baldwin Park do hereby certify that the foregoing Resolution No. 2025-021 was duly adopted by the City Council of the City of Baldwin Park at a regular meeting thereof held on July 16, 2025, and that the same was adopted by the following vote to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
_________________________
Christopher Saenz
City Clerk
CITY OF BALDWIN PARK NOTICE OF PUBLIC HEARING
NOTICE IS HEREBY GIVEN that the City Council of the City of Baldwin Park (“City”) will hold a Public Hearing on Wednesday, July 16, 2025, at 7:00 p.m., or soon thereafter as the matters can be heard, at the City Council Chamber, 14403 E Pacific Avenue, Baldwin Park, CA 91706 in person or virtually. Protest, comments or objections in reference to the levy and collection of the annual assessments for the FY 2025-2026, continued maintenance of public facilities specifically 1) the area within the City of Baldwin Park Citywide Park Maintenance Assessment District; and 2) The area with City of Baldwin Park Landscaping and Lighting District; all to serve the benefit of said District, which was previously approved by the City Council. A protest may be made in writing by any interested persons. Every written protest shall be emailed to the City Clerk at [email protected] before 7 pm of July 16, 2025 For information, please contact Daniel Padilla, Director of Public Works at (626) 960-4011 Ext. 460
ITEM NO: 12.
STAFF REPORT
TO: Honorable Mayor and Members of the City Council
FROM: Daniel Padilla, Director of Public Works
PREPARED BY: Lena Abdullah, Management Analyst
DATE: July 16, 2025
SUBJECT: Public Hearing and Adoption of Resolution No. 2025-022 “A Resolution of The City Council of The City of Baldwin Park, California, Ordering the Annual Levy and Collection of
Assessment Associated with the Citywide Landscaping and Lighting Maintenance Assessment District for FY2025-2026, and Authorizing the Los Angeles County Assessor to Add
this Special Assessment to the Property Tax Bills."
SUMMARY:
The Purpose of this report is to outline the required Public Hearing and subsequent adoption of a resolution ordering the annual levy and collection of assessments related to the Citywide Landscaping and Lighting Maintenance District for FY2025-2026 (LLMD or District).
RECOMMENDED ACTION:
It is recommended that the City Council hold a Public Hearing and after considering testimony, adopt Resolution No. 2025-022 entitled “A Resolution of The City Council of The City of Baldwin Park, California, Ordering the Annual Levy and Collection of Assessment Associated with the Citywide Landscaping and Lighting Maintenance Assessment District for FY2024-2025, and Authorizing the Los Angeles County Assessor to Add this Special Assessment to the Property Tax Bills” and authorize the Director of Finance to make necessary appropriation budget adjustments.
FISCAL IMPACT:
The District’s anticipated revenue and expenditures were estimated at the time of the preparation of the Engineer’s Report and presented to the City Council and subsequently approved on June 4, 2025. The Citywide Landscaping and Lighting Maintenance (LLMD) revenue for FY2025-2026 is estimated at $2,332,673. The revised estimated expenditure is $2,747,139. Staff will work to identify potential areas to reduce some expenses during the mid-year budget to help mitigate the negative impact to the fund balance.
BACKGROUND:
Over the last decade, the District has been utilized to cover the costs of providing maintenance and improvements to the street lighting, traffic signal, and landscaping operations within the public right-of- way.
On April 30, 2025, the City’s consultant, Community Economic Solutions, submitted the Preliminary Engineer’s LLMD Report for FY 2025-26. Staff has reviewed the report and it was presented to the City Council for consideration and approval.
DISCUSSION:
On June 4, 2025, the City Council adopted Resolution No. 2025-010 which approved the Engineer’s Report for the LLMD, declared its intent to levy and collect assessments, and set a date and time for the public hearing as July 16, 2025. The Public Hearing notice was posted as required.
ALTERNATIVES:
None
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 the 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. LLMD Reso 2025-022
2. Public Notice 2025
RESOLUTION NO. 2025-022
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BALDWIN PARK,
CALIFORNIA, ORDERING THE ANNUAL LEVY AND COLLECTION OF
ASSESSMENTS ASSOCIATED WITH THE CITYWIDE LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT FOR FY2025-2026,
AND AUTHORIZING THE LOS ANGELES COUNTY ASSESSOR TO ADD
THIS SPECIAL ASSESSMENT TO THE PROPERTY TAX BILLS.
WHEREAS, the City Council has previously ordered the formation of LANDSCAPING AND LIGHTING MAINTENANCE DISTRICT No. 2007- 1(hereinafter referred to as the “DISTRICT”) pursuant to the terms and provisions of the “Landscaping and Lighting Act of 1972” being Part 2 of Division 15, of the California Streets and Highway Code; and
WHEREAS, the City Council has adopted Resolution No. 2025-010 approving the Engineer’s Report pursuant to the Provisions of Division 15, Part 2 of the Streets and Highways Code and Article XIIID of the State Constitution, declaring its intention to order the annual levy and collection of assessments, and giving notice of the time and place for a Public Hearing on the questions of the levy of the proposed assessments; and
WHEREAS, the City Council has heard all testimony and evidence, and is desirous of proceeding with the levy of annual assessments for the District.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF
BALDWIN PARK DOES HEREBY RESOLVE AND ORDER AS
FOLLOWS:
SECTION 1. That the above recitals are all true and correct.
SECTION 2. That the City Council hereby orders the maintenance work performed on the District as set forth in the Engineer’s Report for FY2025-2026, and orders the annual levy and collection of assessment of the District as shown and set forth as described in said report and declaration of intention.
SECTION 3. That the adoption of this Resolution constitutes the levy of the assessments for the fiscal year commencing July 1, 2025, and ending June 30, 2026.
SECTION 4. That the Los Angeles County Assessor, which collects assessments on the City’s behalf, shall enter on the Assessment Roll the amount of the assessments, and said assessments shall be collected and the net amount of the assessments shall be paid to the City Treasurer of the City of Baldwin Park.
SECTION 5. That the City Treasurer has established a special fund known as the “CITY OF BALDWIN PARK CITYWIDE LANDSCAPING AND LIGHTING DISTRICT FUND” into which the City Treasurer shall place all monies collected by the Tax Collector pursuant to the provisions of this Resolution.
SECTION 6. That a certified copy of the assessment and diagram shall be filed in the office of the City Engineer and a certified copy of the diagram and assessment roll filed with the Los Angeles County Assessor, together with a certified copy of this resolution upon its adoption.
SECTION 7. The City Clerk shall certify to the adoption of this Resolution.
PASSED, APPROVED, AND ADOPTED this 16th day of July 2025.
Alejandra Avila
Mayor
ATTEST:
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS:
CITY OF BALDWIN PARK )
I, Christopher Saenz, City Clerk of the City of Baldwin Park do hereby certify that the foregoing Resolution No. 2025-022 was duly adopted by the City Council of the City of Baldwin Park at a regular meeting thereof held on July 16, 2025, and that the same was adopted by the following vote to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
Christopher Saenz
City Clerk
CITY OF BALDWIN PARK NOTICE OF PUBLIC HEARING
NOTICE IS HEREBY GIVEN that the City Council of the City of Baldwin Park (“City”) will hold a Public Hearing on Wednesday, July 16, 2025, at 7:00 p.m., or soon thereafter as the matters can be heard, at the City Council Chamber, 14403 E Pacific Avenue, Baldwin Park, CA 91706 in person or virtually. Protest, comments or objections in reference to the levy and collection of the annual assessments for the FY 2025-2026, continued maintenance of public facilities specifically 1) the area within the City of Baldwin Park Citywide Park Maintenance Assessment District; and 2) The area with City of Baldwin Park Landscaping and Lighting District; all to serve the benefit of said District, which was previously approved by the City Council. A protest may be made in writing by any interested persons. Every written protest shall be emailed to the City Clerk at [email protected] before 7 pm of July 16, 2025 For information, please contact Daniel Padilla, Director of Public Works at (626) 960-4011 Ext. 460
ITEM NO: 13.
STAFF REPORT
TO: Honorable Mayor and Members of the City Council
FROM: Manuel Carrillo Jr, Chief Executive Officer
Okina Dor, Director of Community Development
PREPARED BY: Nick Baldwin, City Planner, Ryan Mulligan, Housing Manager
DATE: July 16, 2025
SUBJECT: Approval of an Amended Affordable Homeownership Expansion Program and Project Activities Implemented by the San Gabriel Valley Habitat for Humanity.
SUMMARY:
City Staff is requesting City Council approval of an amendment to the project activities and associated funding sources related to the previously approved Affordable Homeownership Expansion Program with San Gabriel Valley Habitat for Humanity (SGV Habitat). Specifically, the funding source for SGV Habitat’s projects on 12779 Torch and 4428 Stewart would reclassify/change their allocation from ARPA to General Fund; and re-obligate those ARPA funds to the animal control services.
RECOMMENDED ACTION:
It is recommended that the City Council:
1. Approve the proposed reallocation of the funding source for the SGV Habitat’s projects on 12779 Torch and 4428 Stewart from ARPA to General Fund; and
2. Authorize the Director of Finance to re-appropriate funding for these projects and make the necessary budget and accounting adjustments; and
3. Authorize the Chief Executive Officer and City Attorney to continue carrying out all subsequent and needed actions to proceed with the SGV Habitat project, including approving real estate purchase transactions, amending any and all documents and agreements required to complete the project, and executing any and all amended agreements and documents; and
4. Approve the Addendum to the Inter-Agency Agreement between the City of Baldwin Park and Police Department for the ARPA Obligation.
FISCAL IMPACT:
There is no fiscal impact to the General fund. The City has since determined to shift the funding source for the Affordable Homeownership Expansion Agreement by replacing the previously obligated $1,725,000 in ARPA funds with General Fund dollars. In turn, this same $1,725,000 in ARPA funds is now being re-obligated to support the animal control services. This funding shift effectively offsets the General Fund impact, resulting in no net increase to the General Fund as a whole, as the General Fund is assuming costs for one program while being relieved of equivalent costs in another through the reallocation of ARPA funds.
BACKGROUND:
On October 6, 2021, the Council approved an Affordable Homeownership Expansion Agreement (AHEA) with SGV Habitat for the purpose of expanding affordable homeownership projects in the City to benefit low-income families. The programs identified included new home construction, acquisition, and rehabilitation of existing homes and/or substantial rehabilitation/critical home repairs for existing homeowners. Low-income families are
defined as families that earn 80% or less of the Area Median Income or $100,900 for a family of four.
On February 16, 2022, the Council approved the form of the agreements to implement an acquisition and rehabilitation housing program to acquire existing homes and rehabilitate them for sale to low-income families utilizing HOME Investment Partnership Program (“HOME”) Funds.
On August 3, 2022, the Council also approved the form of the agreements to implement an acquisition and rehabilitation housing program utilizing Low-Mod funds to acquire existing homes and rehabilitate them for sale to low-income families. The approval of the form and agreements and use of both HOME and Low-Mod funds authorized the CEO to approve real estate purchases and execute the agreements, thus positioning the City to be able to move swiftly in a competitive seller’s market.
On April 5, 2023, SGV Habitat made a presentation updating the City Council on the program and project activities since receiving approval of the AHEA with SGV Habitat.
On July 19, 2023, the City Council approved an updated Affordable Homeownership Expansion Program and Project Activities Implemented by the SGV Habitat. This update was necessary to match funding sources with specific eligible project activities. Also, the program was projected to produce or preserve approximately 54 affordable ownership housing units in the City.
DISCUSSION:
SGV Habitat’s projects at 12779 Torch and 4428 Stewart are multi-family residential projects which are more thoroughly described in Attachment 1. They are currently funded with ARPA funds for a combined total of $1,725,000. Per federal requirements, projects funded with federal money must prepare federal environmental review through the National Environmental Policy Act (NEPA) in addition to state environmental review required by the California Environmental Quality Act (CEQA). The additional federal environmental review adds significant cost and time to the front end of these projects and must be completed prior to permit issuance. In an effort to assist SGV Habitat in the expeditious development of affordable housing, City Staff propose reallocating funding by replacing ARPA funds with an equivalent amount of General Fund dollars for the projects at 12779 Torch and 4428 Stewart as presented in table shown below.
Funding Sources
Previously Approved
12779 Torch and 4428 Stewart Funded with ARPA as Loans
Animal Control Services Funded with General Fund
Proposed Reallocation
12779 Torch and 4428 Stewart Funded with General Fund as Loans Animal Control Services Funded with ARPA
A second reason to support the proposed reallocation is that the previously approved ARPA funds for the 12779 Torch and 4428 Stewart projects were not clearly identified as loans, which would be complicated by ARPA’s requirement to fully expend funds by December 31, 2026. This proposal corrects that by replacing the ARPA loans with General Fund loans, which will be repaid to the City by the borrower without the same requirements by ARPA.
The animal control services will be funded by the City’s allocation of ARPA funds through December 31, 2026, or until the obligated ARPA funds are fully expended—whichever occurs first. This funding arrangement ensures continued support for animal control services during the designated period while remaining in compliance with
federal expenditure guidelines.
ALTERNATIVES:
Council to provide other direction.
CEQA REVIEW:
None
LEGAL REVIEW:
This report has been reviewed and approved by the City Attorney as to legal form and content.
ATTACHMENTS:
1. Staff Report dated July 19, 2023 regarding Updated Affordable Housing Expansion Program
2. Staff Report dated October 6, 2021 regarding Updated Affordable Housing Expansion Program
3. Addendum to the Inter-Agency Agreement between the City of Baldwin Park and Police Department for the ARPA Obligation
STAFF REPORT
ITEM NO. _____8_____
TO: Honorable Mayor and Members of the City Council
FROM: Enrique C. Zaldivar, Chief Executive Officer
Ron Garcia, Director of Community Development
Imelda Delgado, Housing Manager
DATE: July 19, 2023
SUBJECT: Approval of an updated Affordable Homeownership Expansion Program and Project Activities Implemented
by the San Gabriel Valley Habitat for Humanity.
SUMMARY
This report seeks Council approval of an update to the project activities and associated funding sources related to the previously approved Affordable Homeownership Expansion Program with SGV Habitat.
This item was continued from the June 21, 2023 City Council meeting.
RECOMMENDATION
Staff recommends that the City Council:
1. Approve the updated Affordable Homeownership Expansion Program and Project Activities from funds authorized by the City Council on October 6, 2021; and
2. Authorize the Director of Finance to appropriate funding for this updated Program and Project Activities and make the necessary budget adjustment; and
3. Authorize the Chief Executive Officer, City Attorney, and Special Legal Counsel (Christensen & Spath, LLP) to continue carrying out all subsequent and needed actions to proceed with the Program, including approving real estate purchase transactions, and executing agreements including forms of Agreements for using American Rescue Act Funds, and Future Development Funds.
FISCAL IMPACT
There is no fiscal impact to the General Fund. The use of funds for this program were authorized by the City Council on October 6, 2021, approving $3,584,659 in funding under the Affordable Homeownership Expansion agreement as follows:
• Up to $2 million in American Rescue Act Funds
• Up to $575,000 Low/Mod Funds (Fund 890)
• Up to $725,000 in Future Development Funds (Fund 200) • A total of $284,659 in HOME Investment Partnership Act Funds or CHDO Reserve Funds as explained below under Background.
BACKGROUND
On October 6, 2021, the Council approved an Affordable Homeownership Expansion Agreement (“AHEA”) with SGV Habitat for the purpose of expanding affordable homeownership projects in the city to benefit low -income families. The programs identified included new home construction, acquisition, and rehabilitation of existing homes and/or substantial rehabilitation/critical home repairs for existing
homeowners. Low- income families are defined as families that earn 80% or less of the Area Median Income or $100,900 family of four.
On February 16, 2022, the Council approved the form of the agreements to implement an acquisition and rehabilitation housing program to acquire existing homes and rehabilitate them for sale to low - income families utilizing HOME Investment Partnership Program (“HOME”) Funds.
On August 3, 2022, the Council also approved the form of the agreements to implement an acquisition and rehabilitation housing program utilizing Low-Mod funds to acquire existing homes and rehabilitate them for sale to low-income families. The approval of the form and agreements and use of both HOME and Low-Mod funds authorized the CEO to approve real estate purchases and execute the agreements, thus positioning the City to move swiftly in a competitive seller’s market.
On April 5, 2023, SGV Habitat made a presentation updating the City Council on the program and project activities since receiving approval of the Affordable Homeownership Expansion Agreement (“AHEA”) with SGV Habitat.
DISCUSSION
The proposed update to the program will now match each funding source to specific eligible project activities. The program would produce or preserve approximately 54 affordable ownership housing units throughout the City. SGV Habitat is prepared to implem ent the following activities as part of the program:
Fund Sources
Use Key Activity
Total
Units HOME
Low-
Mod ARPA Future Total
Acquisition
Rehab Home Renovation 8 284,659 575,000 275,000 - 1,134,659 ADUs
Garage
Conversions/Deta
ched Units 4 - - - 400,000 400,000
Critical
Repairs
Owner Occupied
Rehabilitation
13 -
-
-
125,000
325,000
Owner Occupied
Rehabilitation
(Senior Veteran)
1 -
-
-
200,000
12779 Torch New Construction 12 - - 525,000 - 525,000
4288 Stewart New Construction 16 - - 1,200,000 - 1,200,000 54 284,659 575,000 2,000,000 725,000 3,584,659
Acquisition-rehabilitation: Includes condos, detached homes, and SB 9 lot splits. The latter requires the purchase of a house and later subdivision of the property to enable construction of a new detached house on the back lot. SGV rehabilitates the front house and builds a second home behind it. The outcome is that SGV Habitat sells two homes to eligible low-income buyers at affordable prices. Current activity: SGV Habitat in March 2023 purchased 4085 Bresee Ave. leveraging Low-Mod funds from the City of Baldwin Park of $222,681 . The front house is being renovated and have applied for City approval of a lot split and design/plan for an additional house (adaptive reuse of garage plus addition).
Tentative Completion Date: October 2023.
ADUs. SGV Habitat plans to build 4 ADUs mai nly through conversion of existing garages to rental units. Participating homeowners must be at 80% of AMI or below. Each ADU will be financed as the additional ADUs can be constructed in the future using funds from repaid ADU loans. Tentative Launch Date: July 2023.
Owner Occupied Rehabilitation . Includes replacement of roofs, fences, gutters, garage doors, doors; exterior painting; upgraded electrical or plumbing; accessibility upgrades; and correcting code enforcement items. Seven homes have been repaired and completed for income-eligible Baldwin Park homeowners to date. An additional 7 homes are estimated to be completed of which one of the homes includes partnership between Oath to Country and SGV Habitat to rehabilitate the home of a Senior Veteran located at 13241 Emery Avenue.
12779 Torch Street Homes: City-approved funds of $525,000 will directly support the construction of 12 attached 3-bedroom affordable townhomes, including off -site improvements required by the City.
These funds will supplement the City’s original investment of $1.41 million to purchase the Torch site approved in May 2021, which was prior to the City’s approval of the Affordable Homeownership Expansion Agreement. Current activity: The project is currently under review with City staff, for design review and entitlement clearances. Expected Completion: First quarter 2025. 4288 Stewart Avenue Homes : City -approved funds of $1,200,000 will directly support the construction of 16 attached affordable homes, including off -site improvements required by the City.
Includes the adaptive reuse of portions of the existing Baldwin Park Presbyterian Church as well as newly built units. The project is in its inception phase. Expected Completion: 3rd quarter 2025.
LEGAL REVIEW
The agreements have been reviewed and approved by Special Legal Counsel (Christensen & Spath, LLP) and the City Attorney as to legal form and content.
STAFF REPORT ITEM NO. ________14_______
TO: Honorable Mayor and Members of the City Council FROM: Enrique C. Zaldivar, Chief Executive Officer Benjamin Martinez, Community Development Director
DATE: October 6, 2021
SUBJECT: Approving an Affordable Homeownership Expansion Agreement with San Gabriel Valley Habitat for Humanity
SUMMARY
This report seeks Council approval of an Affordable Homeownership Expansion Agreement with San Gabriel Valley Habitat for Humanity (“SGV Habit at”) and it’s CHDO-affiliate Neighborhood Housing Partners, Inc. (“NHPI”), to explore homeownership expansion programs in Baldwin Park. The programs could include new home construction, acquisition and rehabilitation of existing homes and/or substantial rehabilitation/critical home repairs for existing homeowners. As proposed in the agreement, before any funding is committed or spent, NHPI and SGV Habitat would need to return to the City Council for approval of the specific homeownership project or program. At that time, staff would present the project or program and the recommended source and allocation of funds for City Council consideration of approval.
RECOMMENDATION
Staff recommends that the City Council:
1. Approve the Affordable Homeownership Expansion Agreement with NHPI and SGV Habitat to explore homeownership expansion programs in Baldwin Park; and
2. Direct the Chief Executive Officer to appropriate funding up to $3,584,659 under the agreement with NHPI and SGV Habitat; and
3. Authorize the Chief Executive Officer to execute said agreement for a term of three (3) years with an optional two-year extension at the sole discretion of the City.
FISCAL IMPACT
There is no fiscal impact to the General Fund. The proposed funding sources to provide up to $3,584,659 in funding under this agreement is as follows:
• Up to $2 million in American Rescue Act Funds
• Up to $575,000 Low/Mod Funds (Fund 890)
• Up to $725,000 in Future Development Funds (Fund 200) • A total of $284,659 in HOME Investment Partnership Act Funds or CHDO Reserve Funds as explained below under Background.
As proposed in the agreement, before any funding is committed or spent, NHPI and SGV Habitat would need to return to the City Council for approval of the specific homeownership project or program. At that time, staff would present the project or program and the recommended source and allocation of funds for City Council consideration.
BACKGROUND
On July 21, 2021, SGV Habitat made a presentation to the City Council for the following programs:
1. New home construction
2. Acquisition and rehabilitation (“acq/rehab”) of existing homes
3. Accessory Dwelling Unit (ADU) construction or conversion
4. Substantial rehab / critical home repairs / resolving code violations
5. Targeted area improvement project
Under this proposed agreement, NHPI and SGV Habitat would pursue individual homeownership projects or programs under items 1, 2 and 4 listed above. Upon selecting a potential opportunity, NHPI and SGV Habitat shall submit to the City for review a proposal describing and detailing the p otential opportunity, with supporting documents, which shall include , at a minimum, the following documents, reports and information:
• Unit mix and proposed income targeting
• An overview of any proposed construction work with preliminary cost estimates. • A proposed schedule for development of the Project and the timeframe for bringing the Projects online and making them available to purchasers. • A financial pro forma which contains: (i) a projected development budget for the Project; (ii) a projected sources and uses analysis, and (iii) and anticipated purchase prices of the individual unit or units.
The City shall review each submittal and reject, accept or meet and confer with NHPI and SGV Habitat.
If the City, NHPI and SGV Habitat are satisfied with the feasibility of any p roject, the City, NHPI and SGV Habitat shall seek in good faith to negotiate, draft and enter into mutually acceptable agreements for the contribution of City funds to and the development of such project. The term of the agreement would be for three (3) years with an optional two-year extension at the sole discretion of the City.
CHDO Reserve
Neighborhood Housing Partners, Inc. (NHPI) is a Community Housing Development Organization (“CHDO”) as defined by the Department of Housing and Urban Development (HUD). A CHDO has the organizational goal is to eliminate poverty housing by working with economically disadvantaged individuals and families to create better living conditions, and by providing decent, safe, affordable housing to low -and-moderate income individuals and families. The City Council certified NHPI as a CHDO and NHPI is a California nonprofit public benefit corporation that operates exclusively to support and benefit the San Gabriel Valley Habitat. For this reason, NHPI is eligible to receive all or a portion of the City’s $284,659 of HOME Investment Partnership Act Funds CHDO Reserve Funds.
LEGAL REVIEW
The Affordable Homeownership Expansion Agreement was prepared by Special Legal Counsel (Christensen & Spath, LLC) and reviewed and approved by the City Attorney.
ALTERNATIVES
The City Council could consider an alternative decision to modify this agreement.
ATTACHMENTS
1. Affordable Homeownership Expansion Agreement with NHPI and SGV Habitat
1 AFFORDABLE HOMEOWNERSHIP EXPANSION AGREEMENT
THIS AFFORDABLE HOMEOWNERSHIP EXPANSION AGREEMENT
(“Agreement”) is dated as of the 6th day of October, 2021, by and between the City of Baldwin Park (“City”), Neighborhood Housing Partners, Inc., a California nonprofit public benefit corporation (“NHP”), and San Gabriel Valley Habitat for Humanity, Inc., a California nonprofit public benefit corporation (“SGV Habitat”).
RECITALS
A. SGV Habitat is a nonprofit corporation whose organizational goal is to eliminate poverty housing by working with economically disadvantaged individuals and families to create better living conditions, and by providing decent, safe, affordable housing to low -and-moderate income individuals and families . NHP is a nonprofit cor poration that operates exclusively to support and benefit SGV Habitat.
B. NHP is a Community Housing Development Organization (“CHDO”) as defined in 24 CFR Part 92. The HOME Investment Partnership Act regulations (24 CFR Part 92) require the City to inv est 15% of the City’s HOME funds (“CHDO Reserve Funds”) in housing owned, developed or sponsored by CHDO’s. NHP, due to its CHDO certification, is eligible to receive 15% in HOME Investment Partnership Act Entitlement Funds from the City or what is referred to as “CHDO Reserve Funds.” The City currently has $284,659 of CHDO Reserve Funds.
C. The City desires to utilize NHP’s and SGV Habitat ’s knowledge, resources and capabilities in order to seek out, develop and expand affordable homeownership opportunities in the City of Baldwin Park (collectively “Potential Opportunities” or individually, a “Potential Opportunity”). The City, NHP and SGV Habitat desire for SGV Habitat to present the Potential Opportunities to the City, so that the City may evaluate such Potential Opportunities and determine whether to contribute funds (“City Funds”) to NHP and/or SGV Habitat to assist with the conversion of such Potential Opportunities to actual projects . The City agrees to set aside up to $3,584,659 (which amount includes the $284,659 of CHDO Reserve Funds) of City Funds to assist with any Potential Opportunities which are approved by the City and become actual projects (“Projects” or individually, a “Project”).
D. Each Project utilizing City Funds shall be the subject of a separate agreement entered into between the City and NHP and/or SGV Habitat at the time of the City’s approval of the same and the parties’ agreement with respect to the terms and conditions of the Project and City Funds. Each such separate agreement shall contain the specific details and requirements of the parties with respect to the same. NHP and SGV Habitat acknowledges that the City may utilize funds which include certain restrictions, such as United States Department of Urban Development Home Investment Partnership Program Funds. NHP and SGV Habitat agrees that any City Funds contributed to any Project shall be used only as allowed by the City consistent with the statutes and regulations governing the use of the City Funds.
2 NOW, THEREFORE, NHP, SGV Habitat and the City, hereby agree as follows:
1. Term of Agreement and Obligations. NHP and SGV Habitat agree to seek out Potential Opportunities in the City of Baldwin Park for a period of three (3 ) years from the date first set forth above , with an optional two -year extension at the sole discretion of the City (“Term”).
During the Term, NHP and SGV Habitat shall diligently and in good faith seek out Potential Opportunities, which Potential Opportunities may include new home construction, acquisition and rehabilitation of existing homes, accessory dwelling unit construction or conversion, substation rehabilitation and the making of critical repairs to existing housing stock, and community improvement projects.
2. Set Aside of City Funds
. The City agrees to set aside up to $3,584,659 of City Funds , including $284,659 of CHDO Reserve Funds , to fund any Potential Opportunities which are selected to and become Projects. These funds are contingent on availability and determination of eligibility to be conducted on a case-by-case basis as NHP and SGV Habitat propose projects for approval. NHP, SGV Habitat and the City each acknowledges that any CHDO Reserve Funds shall be invested only in Projects owned by NHP or NHP-affiliated entities as set forth in 24 CFR Section 92.300, et seq.
3. Submission of Potential Opportunities
. Upon selecting a Potential Opportunity, NHP
and/or SGV Habitat shall submit to the City for review, a proposal describing and detailing the Potential Opportunity, with supporting documents, which shall include the following documents, reports and information (collectively, the “Submittal”):
(a) Unit mix and proposed income targeting
(b) An overview of any proposed construction work with preliminary cost estimates.
(c) A proposed schedule for development of the Project and the timeframe for bringing the Projects online and making them available to purchasers.
(d) A financial pro forma which contains: (i) a projected development budget for the Project; (ii) a projected sources and uses analysis, and (iii) and anticipated purchase prices of the individual unit or units.
4. City Review and Response to Submittals
. The City shall review each Submittal and reject,
accept or meet and confer with NHP and/or SGV Habitat. If both the City and NHP and/or SGV Habitat are satisfied with the feasibility of any Project, the City and NHP and/or SGV Habitat shall seek in good faith to negotiate , draft and enter into mutually acceptable agreements for the contribution of City Funds to and the development of such Project. However, by entering into this Agreement, the Parties are not contractually bound to enter into a ny agreements for the development of any Project.
5. Cooperation
. The City agrees to cooperate with NHP and SGV Habitat and supply appropriate information to NHP and SGV Habitat with respect to the availability of the City Funds and the applicable restrictions associated with the use of any such City Funds. The City, NHP and
3 SGV Habitat each agree to provide one another and each of their professional consultants and advisors with any information and assistance reasonably within the capacity of the City , NHP or SGV Habitat , as applicable, to assist with the analysis of the feasibility of each Potential Opportunity.
6. Nondiscrimination. Neither NHP nor SGV Habitat shall discriminate against or segregate, any person, or group or persons on account of basis of race, color, creed, religion, sex, sexual orientation, sexual identity, m arital status, national origin, ancestry, familial status, source of income or disability in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of any Project, nor shall NHP or SGV Habitat establish or permit any such practice or prac tices of discrimination or segregation in the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees of any Project.
7. Environmental Requirements. Certain Federal, state and local environmental requirements (including, but without limitation, the National Environmental Policy Act and the California Environmental Quality Act of 1970, Public Resources Code Section 21000, et seq.) may be applicable to a Project and/or the use of City Funds . Pursuant to such requirements, certain environmental documents may be required to be prepared and certified for each Project prior to the City’s commitment of City Funds or entry into any agreements or commitments with respect to any Project.
8. City Approvals and Actions
. Whenever a reference is made herein to an action or approval to be undertaken by the City, the City Manager or his or her designee is authorized to act on behalf of City, unless specifically provided otherwise.
9. General Indemnity. NHP and SGV Habitat shall be responsible for all injuries to persons and/or all damages to real or personal property of the City or others, caused by or resulting from the negligence and/or breach of this Agreement, by NHP or SGV Habitat or any of their employees, contractors, subcontractors and/or agents arising out of this Agreement, except those arising from the sole active negligence or sole willful misconduct of the City . NHP and SGV Habitat shall defend and hold harmless and indemnify the City, and all of its councilmembers, agents, officers, representatives, directors and employees from all liabilities, causes of action, demands costs, damages, judgments, expenses and claims (collectively “Claims”) by any person resulting from NHP or SGV Habitat’s breach of this Agreement or the negligence of NHP or SGV Habitat or any of their employees, contractors, subcontractors and/or agents, arising out of this Agreement. NHP and SGV Habitat shall defend any Claims, at the sole cost and expense of NHP and SGV Habitat, with counsel of the indemnified party’s choosing, provided that NHP’s and SGV Habitat ’s obligation with respect to fees of indemnified party’s counsel shall be limited to reasonable fees.
10. General Provisions.
(a) Address for Notices
. All notices under this Agreement shall be in writing and sent (i) by certified or registered U.S. mail, return receipt requested, (ii) overnight by a nationally recognized overnight courier such as UPS Overnight or FedEx, (iii) by personal delivery or (iv) via email. All notices shall be effective upon receipt (or refusal to accept delivery). All notices shall be delivered to the following addresses or such other addresses as changed by any party from time to time by written notice to the other parties hereto:
4
5 Lender: c/o City of Baldwin Park
Attn: Benjamin Martinez
14403 East Pacific Avenue
Baldwin Park, CA 91706
Email: [email protected]
Copy to: Christensen & Spath LLP
550 West C Street, Suite 1660
San Diego, CA 92101
Email: [email protected]
NHP or SGV Habitat: San Gabriel Valley Habitat for Humanity, Inc.
Neighborhood Housing Partners, Inc.
Attn: Bryan Wong, Executive Director
724 East Huntington Drive
Monrovia, CA 91016
Email: [email protected]
(b) Entire Agreement
. This Agreement constitutes the entire understanding and agreement of the parties, integrates all of the terms and conditions mentioned herein or incidental hereto, and supersedes all negotiations or previous agreements between the parties or their predecessors in interest with respect to all or any part of the subject matter hereof. Notwithstanding the foregoing, with respect to any Potential Opportunity which becomes a Project, this Agreement shall be superseded by the Project -specific agreements and documents executed by NHP and/or SGV Habitat and the City. Provided, however, such Project -specific agreements and documents shall not be novation of this Agreement vis-à-vis any Potential Opportunities or Projects other than the Project which is subject to such Project-specific agreements and documents.
(c) Amendment of Agreement
. No modification, rescission, waiver, release or
amendment of any provision of this Agreement shall be mad e except by a written agreement executed by the City, NHP and SGV Habitat.
(d) Assignment Prohibited
. In no event shall NHP or SGV Habitat assign or transfer any portion of their rights or obligations under this Agreement without the prior express written consent of the City, which consent may be withheld in the City’s sole and absolute discretion.
(e) Governmental Requirements Superior . All provisions of this Agreement and all the other documents relating to the Loan shall be subject and subordinate to any and all applicable federal, state and local statutes, regulations and ordinances and shall be subject to modification to comply therewith.
(f) Severability
. If any provision of this Agreement is deemed to be invalid or unenforceable by a court of competent jurisdiction, that provision shall be severed from the rest of this Agreement and the remaining provisions shall continue in full force and effect.
6 (g) Recitals Incorporated. The Recitals to this Agreement are hereby incorporated in this Agreement by this reference.
(h) Construction of Agreement. The provisions contained in this Agreement shall not be construed in favor of or against either party but shall be construed as if both parties contributed equally to its preparation. This Agreement shall be construed in accordance with the laws of the State of California.
(i) Counterparts. This Agreement may be executed in any number of counterparts and, as so executed, the counterparts shall constitute one and the same Agreement. The parties agree that each such counterpart is an original and shall be binding upon all the part ies, even though all of the parties are not signatories to the same counterpart.
(j) Capacity and Authority. All individuals signing this Agreement for a party which is a corporation, limited liability company, partnership or other legal entity, or signing under a power of attorney, or as a trustee, guardian, conservator, or in any other legal capacity, covenant to one another that they have the necessary capacity and authority to act for, sign and bind the respective entity or principal on whose behalf they are signing.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year first above written.
CITY:
City of Baldwin Park
By:__________________________________
Enrique C. Zaldivar
Chief Executive Officer
SGV HABITAT:
San Gabriel Valley Habitat for Humanity, Inc., a California nonprofit public benefit corporation
By:__________________________________
Print Name:___________________________
Its:__________________________________
NHP:
Neighborhood Housing Partners, Inc., a California nonprofit public benefit corporation
By:__________________________________
Print Name:___________________________
Its:__________________________________
STAFF REPORT
ITEM NO. ________15_________
TO: Honorable Mayor and Members of the City Council FROM: Benjamin Martinez, Director of Community Development PREPARED BY: Carol Averell, Housing Manager
DATE: October 6, 2021
SUBJECT: Approval of Community Development Block Grant-COVID (CDBG-CV) Public Service Grant Agreement for a Legal
Services Program to A ssist Residential Tenants and
Landlords
SUMMARY
This report requests the City Council’s consider to enter into a CDBG -CV public service grant agreement in the amount of $50,000 with Neighborhood Legal Services of Los Angeles County (NLSLA), to provide Baldwin Park tenants and landlords with legal services regarding evictions and rent control brought on by COVID-19, and authorize the Chief Executive Officer to execute the CDBG- CV public service grant agreement.
RECOMMENDATION
Staff recommends that the City Council:
1. Enter into a CDBG-CV public service grant agreement in the amount of $50,000 with NLSLA to provide Baldwin Park tenants and landlords with legal services regarding evictions and rent control brought on by COVID-19; and
2. Authorize the City Attorney to make any required conforming revisions to the grant agreement as required by the Department of Housing and Urban Development and direct the Chief Executive Officer to execute a CDBG-CV public service grant agreement.
FISCAL IMPACT
The City Council has approved the allocation of $50,000 in CDBG-CV funds for legal services on April 21, 2021. There is no fiscal impact to the General Fund for the provisions of these services.
BACKGROUND
On April 21, 2021, staff presented Amendment No. Two (Substantial) to the FY 2019/20 Annual Action Plan which programed a special allocation of CDBG-Coronavirus funding in the amount of $595,251.
The substantial amendment proposed the allocation of several programs including legal services to assist Baldwin Park residents and tenants.
DISCUSSION
Staff has been working diligently to identify an organization that provides legal services, is familiar with the CDBG and CDBG -CV requirements and also has the staff capacity to provide these services .
NLSLA was established in 1965 and is the principal legal aid organization serving the Antelope, San Fernando, Pomona and San Gabriel Valleys, including the City of Baldwin Park. NLSLA is one of the largest non-profit law firms in California, recognized state and nationwide as a premier legal services organization. In 2019, NLSLA served, through representation, self -help and counsel and advice, over 100,000 people, the majority living at or below 125% of the Federal Poverty Level. NLSLA’s staff of over 130 advocates and support personnel offer legal assistance and representation in housing, health, employment, public benefits, immigration, consumer and domestic violence. NLSLA also provides community education events at local schools, faith-based organizations, and other trust centers.
A key component of NLSLA’s mission, includes the provision of legal services to help prevent incidence of homelessness and address the root causes of homelessness. They stand at the forefront of legal innovation in homelessness prevention in L.A. County. NLSLA also leads the Shriver Housing Project- LA (Shriver), the largest CA eviction assistance effort. In collaboration with the LA Superior Court and public interest law firms, Shriver has provided legal assistance in nearly 10,000 eviction. NLSLA is a core member of the Los Angeles Right to Counsel Coalition, which seeks to enshrine a right to counsel for people facing eviction in L.A. and who cannot afford an attorney. NLSLA is also a partner with LAHSA and six public interest l aw firms on Lawyers Preventing and Ending Homelessness Project which represents clients who are either currently experiencing homelessness or who are at imminent risk of homelessness.
Under this proposal, NLSLA would assist low -income residents of the Cit y of Baldwin Park through a virtual monthly legal clinic. Participants would receive education about their basic housing rights, an overview on special provisions related to COVID, counsel/advice about their legal matter, referrals to supportive services and assignment of cases to their housing teams for higher level representation at their hearings, if appropriate and within the scope of their priorities. The City of Baldwin Park may in some cases refer and/or direct residents to NLSLA as needed for assistance with legal issues as they arise, but this will be subject to NLSLA’s capacity and resource limitations.
LEGAL REVIEW
The City Attorney has reviewed the public service grant agreement as to legal form and content.
ENVIRONMENTAL
The action being considered by the City Council will require an Environmental Review for Activity/Project that is Exempt or Categorically Excluded Not Subject to Section 58.5 Pursuant to 24 CFR 58.34(a) and 58.35(b) prior to entering into the public service grant agreement. The action involves an organizational or administrative activity of government that will not result in the direct or indirect physical change in the environment
ALTERNATIVES
The City Council may provide an alternate direction.
ATTACHMENTS
1. CDBG-CV Public Service Grant Agreement with NLSLA.
For Internal Reference Only:
Contract No. BP-CDBG-CV-PSA 20.105
22 2021-2021
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
SUBAWARD AGREEMENT
LEGAL SERVICES PROGRAM OFFERED BY THE NEIGHBORHOOD LEGAL SERVICES OF
LOS ANGELES COUNTY (NLSLA)
THIS SUBAWARD AGREEMENT (hereinafter, “Agreement”) entered into as of this 6th day of October 2021 (hereinafter, “Effective Date”), is entered into by and between the CITY OF BALDWIN PARK , a California municipal corporation (hereinafter, “City”) with offices at 14403 E. Pacific Avenue, Baldwin Park, CA 91706, and Neighborhood Legal Services of Los Angeles County (NLSLA), a non- profit law firm in California (hereinafter, “Subrecipient”).
For purposes of this Agreement, the capitalized term “Parties” shall be a collective reference to both City and Subrecipient. The capitalized term “Party” may refer to either City or Subrecipient interchangeably as appropriate.
R E C I T A L S
WHEREAS, C ity participates in the Community Development Block Grant - CV (“CDBG-CV”) Program administered by the United States Department of Housing and Urban Development (“HUD”) under Government under Title I of the Housing and Community Development Act of 1974, as amended, (42 USC 5310 et seq.), which provides communities with resources to address a wide range of unique community development needs; and
WHEREAS, on June 18, 2020 the City was awarded CDBG -CV funding for the fiscal year 2020-2021 (hereinafter, “CDBG-CV Funds”). The City’s Federal Award Identification number is B-20-MW-06-0554. Pursuant to the CDBG-CV Program, City receives funds from HUD for activities that benefit low or moderate-income individuals. Each activity must meet one of the following national objectives for the CDBG -CV Program: (1) benefit low and moderate-income persons; (2) prevention or elimination of slums or blight; (3) or address community development needs having a particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community for which other funding is not available; and
WHEREAS, Subrecipient is a legal services organization that will assist low -income residents of the City of Baldwin Park through a virtual monthly legal clinic. Participants would receive education about their basic housing rights, an overview on special provisions related to COVID, counsel/advice about their legal matter, referrals to supportive services; and
WHEREAS, pursuant to 24 CFR §570.503, the City may enter into subaward agreements to administer CDBG -CV programing and City wishes Subrecipient to assist the City in utilizing such funds; and
WHEREAS, in accordance with the objectives of the HCD A ct, the City’s subaward of CDBG-CV Funds to Subrecipient will provide programing that will benefit low or moderate income persons within the City of Baldwin Park community.
For Internal Reference Only:
Contract No. BP-CDBG-CV-PSA 20.105
2 A G R E E M E N T
Based upon the foregoing Recitals and for good and valuable consideration, the receipt and sufficiency of which is acknowledged by both parties, City and Subrecipient hereby agree as follows:
I.
DEFINITIONS
For purposes of this Agreement, the following terms shall have the meanings given below unless expressly provided to the contrary:
“Agreement” shall mean this Community Development Block Grant Program – CV Subrecipient Agreement between City and Subrecipient, including all exhibits and other documents attached or otherwise incorporated hereto.
“Budget” shall refer to the NLSLA Budget that is attached and incorporated hereto as Exhibit “B” and which sets out the line item categories of Eligible Expenses and the amount of CDBG-CV Funds allocated to eac h category of Eligible Expense. The Budget may not be changed without the prior written approval of City’s Contract Officer.
“Contract Officer” shall mean City’s Community Development Director or Housing Manager or such other person as may be designated by the City Manager.
“Eligible Expenses” shall mean the expenses set forth in the Budget for which CDBG - CV Funds may be used and administrative services contemplated under this Agreement and 24 CFR §570.201.
“CDBG-CV Funds” shall mean the funds allocated to the City by HUD through the CDBG-CV Program.
“CDBG-CV Funding Cap” shall mean the maximum amount of CDBG -CV Funds that may be disbursed to Subrecipient during the Funding Period, which amount shall be as follows: FIFTY THOUSAND DOLLARS ($50,000). These CDBG-CV Funds shall be used to run the Legal Services Program.
“CDBG-CV Program” shall mean the Community Development Block Grant - Coronavurus Program administered by HUD under HCD Act and described in the CDBG -CV Program Overview, which is attached hereto as Exhibit “C.”
“Funding Period” means that certain period of time from October __ 2021 through October 31, 2022. The term of this agreement and the provisions herein shall be extended to cover any additional time period during which the Subrecipient remains in control of CDBG- CV funds or other CDBG-CV assets including Program Income.
“Program” shall mean the Legal Service Program referred to in the Recitals of this Agreement. The Program shall provide a variety of legal services to low income residents in Baldwin Park, including virtual monthly legal clinic , education about their basic housing
For Internal Reference Only:
Contract No. BP-CDBG-CV-PSA 20.105
3 rights, an overview on special provisions related to COVID, counsel/advice about their legal matter, referrals to supportive services and assignment of cases to legal housing teams for higher level representation at hearings as more particularly described in the Scope of Service and the Program Budget.
“Program Income” shall mean all gross income generated directly by Program Services and other activity supported by CDBG -CV Funds as further defined in 24 CFR §570.500 and 24 CFR §570.504.
“Program Participant” shall mean any person who participates in the Program.
“Program Regulations” shall refer collectively to the requirements of the Community Development Act 1974, as amended, and HUD’s implementing regulations set forth in 24 CFR Part 570, and the Uniform Administrative Requirements, Cost Principles , a nd Audit Requirements for Federal Awards set forth in 2 CFR Part 200, except those provisions expressly set forth in 24 CFR §570.502 as inapplicable to CDBG-CV Grants, and as the same may modified or amended from time to time and are incorporated in this Agreement by this reference.
“Program Services ” shall refer to the collective programming and activities Subrecipient shall provide as part of the Legal Services Program under the terms of this Agreement and as more particularly described in the Scope of Services attached and incorporated hereto as Exhibit “A.”
“Quarter” or “quarterly” shall mean any of the three (3) month periods during a City fiscal year commencing July 1, October 1, January 1, or April 1.
Month” or “monthly” shall mean any of the twelve (12) month periods during a City fiscal year commencing July 1, and ending June 30.
“Subrecipient Personnel” shall mean any employee, volunteer, contractor, subcontractor, or agent of Subrecipient or any other person under Subrecipient’s supervision, control or direction, including subcontractors engaged by Subrecipient to perform the services and tasks contemplated herein.
“Subrecipient Representative” shall mean Yvonne Mariajimenez , Executive Director NLSLA who is designated by Subrecipient to represent Subrecipient in the administration of this Agreement.
“Third Party Contracts” shall have the mea ning ascribed in Section 3.4 of this Agreement.
II.
USE OF CDBG-CV FUNDS
2.1 Term
. This Agreement shall govern the performance of the Parties over the course of the Funding Period, unless earlier terminated by either party in accordance with the terms of this Agreement. Notwithstanding anything herein to the contrary, Subrecipient’s
For Internal Reference Only:
Contract No. BP-CDBG-CV-PSA 20.105
4 obligations to City shall not end until all closeout requirements required by the Program Regulations are completed.
2.2 Scope of Services and Budget.
A. Under the terms and conditions of this Agreement, the City has allocated a subaward of CDBG-CV Funds to the Subrecipient to carry out certain eligible activities pursuant to 24 CFR Part 570. Subrecipient shall use the CDBG -CV Funds to perform the specific Program Services set forth in the Scope of Services , which is attached and incorporated hereto as Exhibit “A .” Subrecipient shall perform the Program Services in accordance with the approved Budget , which is attached and incorporated hereto as “Exhibit B.” Pursuant to 2 CFR §200.331, the required subaward information is attached hereto as Exhibit “D.”
B. Subrecipient shall use CDBG -CV Funds only for the Eligible Expenses permitted under the Budget and Program Regulations. Subrecipient acknowledges that it is responsible for expenses that exceed the total award amount and agrees that any funds not used in accordance with the Program Regulations and Budget must be repaid to the City.
2.3 Prior Approval for Changes
. Subrecipient may not transfer allocated funds among
cost categories within a budgeted program account witho ut City’s prior written approval; nor shall Subrecipient make any changes, directly or indirectly, in program design or Program Services or in the Budget without City’s prior written approval.
III.
DISBURSEMENT OF FUNDS
3.1 Funding Cap. Under the terms and conditions of this Agreement, the City has allocated a subaward of CDBG-CV Funds to Subrecipient in an amount not-to-exceed FIFTY THOUSAND DOLLARS ($50,000).
3.2 Reimbursement of CDBG-CV Funds
.
A. Subject to all terms, conditions , and funding restrictions set forth under this Agreement, and provided Subrecipient is not in default under this Agreement, City will disburse CDBG-CV Funds to Subrecipient on a monthly basis to reimburse Subrecipient for Eligible Expenses incurred over the course of the Funding Period.
B. All Eligible Expense shall be incurred in accordance with the Program Regulations, the Prime Award , and the authorizations, restrictions and requirements contained in the Notice of Prime Award and any amendments thereto and other applicable laws, regulations, grant terms and conditions or policies.
C. In no event shall the amount of CDBG-CV Funds disbursed to Subrecipient exceed the Funding Cap , and all sums disbursed shall abide by the expenditure limits set forth in both the Budget and Program Regulations.
D. City shall only reimburse Subrecipient for those costs actually incurred during
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5 the Funding Period and allowable under 24 CF R Part 570 and subject to the cost principles in 2 CFR Part 200, subpart E, as exempted or modified by 24 CFR §570.502. CDBG-CV Funds shall not be expended following the earlier of the expiration or termination of this Agreement.
E. The Parties acknowled ge, understand and agree that City’s obligation to disburse CDBG-CV Funds is dependent upon the availability of such funds from HUD and if for any reason, City does not receive sufficient CDBG -CV Funds from HUD, or if, for any reason, HUD withdraws such funding, City shall have no further obligation to provide additional funding for any Eligible Expenses incurred by Subrecipient nor shall City be obligated to secure funding for payment of Eligible Expenses incurred by Subrecipient from any other funding source.
3.3 Invoices
.
A. Following the conclusion of each month during the Funding Period, Subrecipient shall submit to City a detailed and itemized invoice that identifies all Eligible Expenses incurred during the recently concluded month. The invoice shall take the form and include, at minimum, the required information set forth in the sample invoice attached and incorporated hereto as Exhibit “E.” The required invoice information shall include, but is not limited to, a list a nd reasonable description all out -of-pocket expenditures made and compensable tasks performed (i.e., all Eligible Expenses) during the recently concluded month as well all matching funds used to support the program. In so far as the invoiced expenses include hourly staff time, the invoice shall indicate the number of hours devoted to a particular task, the person(s) performing the task, a reasonably detailed description of the task and the applicable hourly billing rate for performing the task. Subrecipient’s invoices shall be accompanied by supporting documentation such as receipts, paid invoices, cashed checks, time records, billing statements, bank statements, and contracts. City reserves the right to request such other supporting documentation as it deems necessary or desirable to verify whether a claimed expense qualifies as an Eligible Expense.
B. Within fifteen (15) calendar days of City’s receipt of the invoice, City shall notify Subrecipient in writing to identify any costs or expenses contained in the invoice that the City disputes or to request clarification or additional supporting documentation as to any claimed cost or expense. Within thirty (30) calendar days of receipt of each invoice, City shall disburse CDBG-CV Funds to the Subrecipient for all undisputed or unq uestioned costs and expenses set forth in the invoice submitted by Subrecipient. Sums disputed or contested by the City or which the City has requested but not received clarification or additional supporting documentation shall be paid during the next invoice cycle, provided the Parties have resolved the dispute or City has received satisfactory clarification.
C. All submitted invoices must be signed by an authorized signatory of Subrecipient and certified in accordance with 2 CFR §200.415. Notwithstanding anything to the contrary in this Agreement, the City also reserves the right to request and approve documentation supporting any invoice to verify the reasonableness and validity of such costs.
D. Subrecipient shall return to City any over payments due to unearned funds or
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6 activities disallowed pursuant to this Agreement. Subrecipient shall return any overpayment to the City within thirty (30) days after discovery by Subrecipient or within fifteen (15) days after notification by the City.
E. All invoices itemizing Eligible Expenses incurred during the Funding Period must be received by the end of the City’s Fiscal Year 2021-2022. Any invoices received after the conclusion of the Fiscal Year will not be eligible for reimbursement, unless extended to cover any additional time period during which the Subrecipient remains in control of CDBG- CV funds or other CDBG-CV assets including Program Income.
3.4 Third Party Contracts.
A. All agreements which Subrecipient proposes to execute and enter into with a third party for the subcontracting of any of the services and tasks set forth under the Scope of Services must first be approved by the City in writing and must comply with all Program Regulations and other requirements set forth under this Agreement.
B. All Third Party Contracts that Subrecipient executed must include the following minimum requirements: (i) a requirement that the subcontractor comply with all Program Regulations and all other requirements that would otherwise apply to Subrecipient if Subrecipient were to perform the service on its own; (ii) that the subcontractor comply with the Program Regulations; (iii) that the subcontractor shall cooperate with City and make available to City all information, documents, and records reasonably requested by City in connection with the activities under this Agreement; (iv) inclusion of a provision naming City as an intended third party beneficiary with the right but not the obligation to enforce the rights of Subrecipient under the Third Party Contract for the benefit of City; (v) that City be copied on all notices between the Subrecipient and the subcontractor; (vi) that the Third Party Contract shall terminate if this Agreement is terminated or expires; (vii) th at the subcontractor is not a third party beneficiary to this Agreement and shall have no expectation of funding from City; and (viii) such other provisions as the City deems necessary or desirable to safeguard the use of CDBG-CV Funds.
C. If Subrecipient believes that any of the Program Regulations are not applicable to a Third Party Contract, it is Subrecipient’s responsibility to provide to City evidence that the requirement is not applicable; however, it is ultimately Subrecipient’s responsibility to include all legal requirements in its Third Party Contracts and City shall have no liability for Subrecipient’s failure to comply with this obligation. In connection therewith, any statement made by City to Subrecipient as to the non- applicability of a particular legal requirement shall be provided as an accommodation to Subrecipient and as a statement of City’s opinion, but shall not be relied upon by Subrecipient or excuse Subrecipient from Subrecipient’s responsibility to include all applicable legal requirements in its Third Party Contracts or to comply with such requirements. Subrecipient acknowledges that City’s approval of a Third Party Contract shall in no way constitute an assumption by City of any responsibility whatsoever for the performance of any activity that is the subject of the Third Party Contract, or Subrecipient’s or the Other Contracting Party’s compliance with applicable laws, statutes, ordinances, codes, rules and regulations, or Subrecipient’s compliance with this Agreement.
In connection therewith, City assumes no responsibility or liability for any act or omission of any Other Contracting Party and in no way guarantees any of the work to be done or
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7 materials to be supplied or services to be performed. Subrecipient shall comply with all terms of Third Party Contracts.
IV.
GRANT ADMINISTRATION
4.1. Program Operation Standards
. Subrecipient shall operate the Program, in conformity with all applicable laws, regulations, and rules of governmental agencies having jurisdiction, including without limitation, the Program Regulations and laws set forth in Section 5 below.
4.2 Program Income. Program Income includes all gross income received by Subrecipient which is directly generated from the use of CDBG -CV funds and as more particularly defined in 24 CFR §570.500(a) . Program Income is governed by 24 CFR §570.504 and not by 2 CFR §200.307. Subrecipient must comply the Program Income requirements of 24 CFR §570.504(c). I f Program Income is generated by activities carried out with CDBG -CV Funds, Subrecipient shall submit to City monthly reports on all such Program Income. The Program Income shall, at City’s election, either (a) be returned to City, or (b) retained by Subrecipient and utilized for Eligibl e Expenses or such other activities approved in writing by City, in which case all provisions of this Agreement shall apply to the activities funded by the Program Income or Subrecipient shall, if required by City, enter into a separate agreement governing the use of the Program Income. In the event City determines that Subrecipient may retain the Program Income for Eligible Expenses, the Program Income shall be expended by Subrecipient for Eligible Expenses before City is obligated to advance any other CDBG-CV Funds to Subrecipient. In accordance with 24 CFR §570.503(b)(7), upon the expiration or termination of this A greement expires, any outstanding Program Income shall be returned to City.
4.3 Indirect Costs . If indirect costs are charged, Subrecipien t shall comply with the indirect cost rate for the Federal award, including, if applicable, the de minimis rate charged per 2 CFR §200.414 (Indirect (F & A) costs).
4.4 Reversion of assets. In accordance with 24 CFR §570.503 (b)(7), upon expiration or termination of this Agreement, S ubrecipient shall transfer to the recipient any CDBG -CV Funds on hand at the time of expiration and any accounts receivable attributable to the use of CDBG-CV Funds.
4.5 Program Monitoring:
A. Public Intake Form and Levels of Accomplishment. The Program’s levels of accomplishment shall be measured by paperwork turned in by Program Participants and written daily attendance records kept by Subrecipient support staff. Subrecipient shall ensure all Program Participants complete a current CDBG -CV Public Intake Form, which must include information related to the Program Participant’s total household income, ethnicity and residency, and any other required documentation.
B. Performance Monitoring. C ity shall monitor Subrecipient’s compliance with
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8 the goals and performance standards stated above. Substandard performance as determined by the City will constitute noncompliance with this Agreement. If action to correct such substandard performance is not taken by the Subrecipient within a reasonable period of time after being notified by the City , contract suspension or termination procedures will be initiated.
4.6 Records and Internal Controls . In order to enable the City and HUD to determine whether Program Regulations are being met, Subrecipient shall implement written policies and procedures to ensure the recordkeeping and reporting requirements of 24 CFR §570.506 and other Program Regulations are met, including 2 CFR §200.303.
A. Records to be Maintained. Subrecipient shall maintain records relating to the Program services as required by 24 CFR §570.506 and any other applicable Program Regulations. Such records shall include, but are not limited to, the following:
1. Records providing a full description of each activity undertaken;
2. Records demonstrating that each activity undertaken meets one of the CDBG- CV Program criteria set forth in 24 CFR §570.208;
3. Records required to determine the eligibility of activities as provided in 24 CFR §570.506(c)(1);
4. Records demonstrating compliance with the citizen participation requirements prescribed in 24 CFR Part 91, subpart B, for entitlement recipients, or in 24 CFR part 91, subpart C, for HUD -administered small cities recipients, as applicable;
5. Records documenting compliance with the fair housing and equal opportunity components of the CDBG-CV Program;
6. Financial records as required by 24 CFR §570.502 and 24 CFR Part 200; and
7. Other records necessary to document compliance with Subpart K of 24 CFR Part 570.
B. Client Data. Subrecipient shall maintain client data demonstrating client eligibility for services provided. Such data shall include, but not be limited to, client name, address, income level or other basis for determining eligibility, and description of service provided. Such information shall be made available to City monitors or their designees for review upon request.
4.6 Inspections/Access to Records
A. Access. Pursuant to 2 CFR §200.336, the City and HUD and/or their representatives shall have full and free access to, and the right to examine, inspect, and audit, all of Subrecipient’s books and records pertaining to this Agreement at all times during normal business hours. This right shall also include timely and reasonable access to Subrecipient’s personnel for the purpos e of interviewing and discussion related to said documents. This same right to review and access will be imposed upon any third party or subcontractor and it is the Subrecipient’s responsibility to ensure that any contract entered into with third parties contain all necessary clauses and language required by the City and/or HUD to ensure compliance with this Agreement and with all federal, state, and local laws and regulations. Notwithstanding 2 CFR 200.337, recipients shall provide citizens with
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9 reasonable access to records regarding the past use of CDBG -CV funds, consistent with applicable State and local laws regarding privacy and obligations of confidentiality.
B. Location of Records. The books and records required to be maintained by Subrecipient shall be kept at the business offices of Subrecipient.
C. Retention. In accordance with 2 CFR §200.333 and 24 CFR §§570.502- 503, Subrecipient is required to maintain all records, books, papers and other documents related to this Agreement. All Program records shall be maintained for a period of five (5 ) years following the final expenditure report or, from the date of the submission of the monthly or annual financial, or for such longer period as is necessary for the resolution of any litigation, claim, negotiation, audit or other inquiry involving this Agreement.
4.7 Reports and Audits.
A. Reports. Subrecipient shall, at such times and in such forms as required by City, prepare and submit to the Contract Officer, such reports concerning the Program Services, and other activities under this Agreement, the costs and obligations incurred or to be incurred in connection therewith, and any other matters covered by this Agreement in compliance with Program Regulations, and as City may reasonably require from time to time.
Subrecipient shall prepare all reports in conformance with the Program Regulations.
Subrecipient shall keep confidential all reco rds containing personally identifying information regarding Program Participants.
B. Audits. Subrecipient shall perform all audits of its books and records that may be required by the Program Regulations or as otherwise required by City or HUD, and a copy of such audits shall be forwarded to the City within fifteen (15) days after the stated date for completion. Subrecipient shall be subject to all audit and review requirements imposed on City in connection with the use of CDBG -CV Funds and shal l, at its sole cost and expense, ensure such audits and reviews are timely performed. In accordance with 2 CFR §200.510, Subrecipient shall prepare financial statements and schedule of expenditures of federal awards. Subrecipient’s annual financial statem ent shall be prepared by an actively licensed public accountant and provided to the City within ninety (90) days of the end of its operating year.
4.8 Closeout. Subrecipient shall provide City with any information or assistance necessary in order to com ply with the closeout requirements in 2 CFR §200.343 as well as the post-closeout requirements in 2 CFR §200.344.2.
V.
APPLICABLE LAWS
5.1 General.
A. Subrecipient shall perform all activities funded by this Agreement in accordance with the Program Regulations , including all f ederal laws and regulations described in 24 CFR Part 570, subpart K, except:
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10 (i) Subrecipient shall not assume City’s environmental responsibilities described at 24 CFR §570.604; and
(ii) Subrecipient shall not assume Cities responsibility for initiating the review process under Executive Order 12372, Intergovernmental Review of Federal Programs, and HUD implementing regulations in 24 CFR Part 52.
B. Subrecipient shall also comply with all other applicable federal, state and local laws. The term “federal, state and local laws” as used in this Agreement shall mean all applicable statutes, rules, regulations, executive orders, directives or other laws, including all laws as presently in effect and as may be amended or otherwise altered during the Funding Period, as well as all such laws which may be enacted or otherwise become effective during the Funding Period. The term “federal, state and local laws” shall include, but it is not limited to those laws set forth in Sections 5.2 through 5.10 below.
5.2 Suspension and Debarment. Subrecipient shall comply with the debarment and suspension requirements set forth in 24 CFR §5 and 24 CFR §24. Subrecipient represents that neither it nor any of its principals has been debarred, suspended or determined ineligible to participate in federal assistance awards or contracts as defined in regulations implementing Office of Management and Budget Guidelines on Government wide Debarment and Suspension (Non-procurement) in Executive Order 12549. Subrecipient further agrees that it will notify City immediately if it or any of its principals is placed on the list of parties excluded from federal procurement or non- procurement programs available at www.sam.gov.;
5.3 Federal Funding Accountability and Transparency Act of 2006. Subrecipient agrees to provide City with all information requested by City to enable City to comply with the reporting requirements of the Federal Funding Accountability and Transparency Act of 2006 (P.L. 109-282, as amended by section 6202 of P.L. 110-252).
5.4 Regulations on Nondiscrimination and Equal Opportunity. In accordance with 24 CFR §§570.601-602, 24 CFR §570.607, 24 CFR §570.614, and 24 CFR §570.506, Subrecipient shall comply with and maintain records showing compliance with all applicable fair housing and civil rights requirements in 24 CFR §5.105(a). The Subrecipie nt shall not discriminate against any employee or person served on account of race, color, sex, age, religion, ancestry, national origin, handicap or marital status in the performance of this Agreement. Specifically, Subrecipient shall comply with all of the following:
(a) The Fair Housing Act (42 U.S.C. §3601 - 3619) and implementing regulations at 24 CFR Part 100 et seq.;
(b) Executive Order 11063, as amended by Executive Order 12259 (3 CFR, 1959- 1963 Comp., p. 652 and 3 CFR, 1980 Comp., p. 307) and implementing regulations at 24 CFR Part 107 (Equal Opportunity in Housing Programs);
(c) Title VI of the Civil Rights of 1964 (42 U.S.C. §§2000d - 2000d-4) and implementing regulations at 24 CFR Part 1 (Nondiscrimination in Federally Assisted Programs;
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11 (d) The Age Discrimination Act of 1975 (42 U.S.C. §§6101 - 6107) and implementing regulations at 24 CFR Part 146;
(e) Title II of the Americans w ith Disabilities Act (42 U.S.C. §12101), et. seq. and 28 CFR Parts 35 and 36;
(f) Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. §794) and implementing regulations at 24 CFR Part 8 for purpo ses of the CDBG -CV program, the term “dwelling units” in 24 CFR Part 8 shall include sleeping accommodations;
(g) Executive Order 11246, as amended by Executive Orders 11375, 11478, 12086 and 12107, and implementing regulations at 41 CFR Part 60 (Equal Employment Opportunity Programs);
(h) Executive Order 11625, as amended by Executive Order 12007 (Mi nority Business Enterprises);
(i) Executive Order 12432 (Minority Business Enterprise Development); and
(j) Executive Order 12138, as amended by Executive Order 12608 (Women's Business Enterprise);
(k) Executive Order 12138, as amended by Executive Order 12608 (Women's Business Enterprise); and
(l) Executive Order 13279 (Equal Protection of the Laws for Faith –Based and Community Organizations).
5.5 Housing and Urban Development Act. Subrecipient shall comply with Section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701u) and implementing regulations at 24 CFR part 135.
5.6 Religious Activities. Subrecipient shall not use CDBG -CV Funds for inherently religious activities prohibited by 24 CFR 570.200(j), such as worship, religious instruction, or proselytization.
5.7 Drug-Free Workplace. Subrecipient shall comply with the Drug Free Workplace Act of 1988, 41 U.S.C. §701, et. seq.) as well as HUD s implementing regulations at 24 CFR Part 2429, which require all programs and activities receiving federal assistance to maintain a drug-free workplace.
5.8 Hatch Act . Subrecipient agrees that no funds provided, nor personnel employed under this Agreement, shall be in any way or to any extent engaged in the conduct of political activities in violation of Chapter 15 of Title V of the U.S.C.
5.9 Lead Based Paint: As provided by 24 CFR §570.608 Lead-Based Paint Poisoning
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12 Prevention Act (42 U.S.C. 4821- 4846), as amended by the Residential Lead -Based Paint Hazard Reduction Act of 1992 (42 U.S.C. 4851- 4856) and implementing regulations at 24 CFR Part 35, subparts A, B, H, J, K, M, and R shall apply to all shelters assisted under the CDBG- CV program and all housing occupied by program participants.
5.10 Conflicts of Interest.
A. In the procurement of supplies, equipment, construction, and services, Subrecipient shall comply with the conflict of interest rules in 2 CFR Part 200. Subrecip ient agrees and warrants that it will establish and adopt written standards of conduct governing conflicts of interest and the performance of its officers, employees, or agents engaged in the selection, award and administration of contracts supported by these federal funds.
B. At a minimum these safeguards must ensure that no employee, officer or agent participates in the selection, award, or administration of a contract supported by a Federal award if he or she has a real or apparent conflict of interest. Such a conflict of interest would arise when the employee, officer, or agent, any member of his or her immediate family, his or her partner, or an organization which employs or is about to employ any of the parties indicated in 2 CFR §200.318, has a financial or other interest in or a tangible personal benefit from a firm considered for a contract. The officers, employees, and agents of Subrecipient cannot solicit or accept gratuities, favors, or anything of monetary value from contractors or parties to s ubcontracts. These standards of conduct must also provide for disciplinary actions to be applied for violations of such standards by officers, employees, or agents of Subrecipient. If Subrecipient has a parent, affiliate, or subsidiary organization, Subrecipient must also maintain written standards of conduct covering organizational conflicts of interest.
C. In all cases not governed by 2 CFR Part 200, Subrecipient shall comply with the conflict of interest provisions contained in 24 CFR §570.611. Subrecipient shall also keep records supporting requests for waivers of conflicts.
D. Subrecipient will disclose in writing any potential conflict of interest to the City. By executing this Agreement, Subrecipient covenants and certifies that none of its employees, officers, or agents described in these regulations have any interest in this Agreement or any other interest which would conflict in any manner with this Agreement or the performance of this Agreement.
5.11 Confidentiality: Subrecipient shall develop, implement, and maintain written procedures to ensure the confidentiality of records pertaining to any individual(s) assisted with CDBG-CV funds under this Agreement, and that the address or location of any assisted housing will not be made public.
VI.
NONCOMPLIANCE AND TERMINATION
6.1 Remedies for Non -compliance. If Subrecipient fails to comply with Federal statutes, regulations, or the terms and conditions of this Agreement, the City may impose additional conditions as described in 2 CFR §200.207. As provided under 2 CFR §200.338 If the City
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13 determines that noncompliance cannot be remedied by imposing additional conditions, the City may take one or more of the following actions, including but not limited to:
(a) Temporarily withhold cash payment pending correction of the deficiency or more severe enforcement action by the City;
(b) Disallow both use of funds and any applicable matching credit for all or part of the cost of the activity or action not in compliance;
(c) Wholly or partly suspend or terminate the award;
(d) Initiate suspension or debarment proceedings as authorized under 2 CFR Part 180 and applicable regulations or recommend such proceedings be initiated by HUD;
(e) Withhold further federal awards for the project or program; and
(f) Take other remedies that may be legally available including, but not limited to litigation, declarator y judgment, specific performance, damages, injunctions, enforcement of the Declaration of Restrictive Covenant, termination of the Agreement, or any other available remedies.
6.2 Defaults: In the event either Party fails to perform, or adhere to, any applicable duty, obligation or standard of conduct set forth under this Agreement (or fails to perform or adhere to any such duty, obligation or standard of conduct at the time, place or manner set forth in this Agreement), an event of default (hereinafter, “Event of Default”) shall have occurred. Except as otherwise provided in this Agreement, if an Event of Default remains uncured by the defaulting Party for a period in excess of thirty (30) calendar days from the date upon which the non- defaulting Party issues notice of default (hereinafter, a “Default Notice”) to the defaulting Party, then the default shall constitute a breach of this Agreement.
If a Party is in breach of this Agreement, the non- breaching Party may pursue any and all remedies available to it at law or in equity. If Subrecipient is in breach (whether or not such breach is caused by Subrecipient or Subrecipient’s officials, officers, employees, agents, contractors, subcontractors or subconsultants, City may, in its sole and absolute discretion (and without obligation), terminate this Agreement upon the issuance of five (5) calendar days prior written notice of termination on the grounds of breach (a “Breach -Termination Notice”). City’s ability to terminate this Agreement as provided in this Section shall be in addition to any other remedies City may have at law or in equity in the event of breach and shall not be in lieu of such other remedies.
6.3 Suspension and Term ination: Subrecipient and City shall comply with the noncompliance and termination provisions in 2 CFR Part 200. In addition to the other remedies for noncompliance, this Agreement may be terminated as follows:
(i) Lack of Funding. If, for any reason, the CDBG-CV Funds required by City to fund the Eligible Expenses are not received by City or are withdrawn from City, the City may unilaterally terminate or modify the terms of this Agreement to reflect the loss of funding, which modification may
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14 include withou t limitation a reduction in the CDBG-CV Funding Cap and/or further restrictions on the range of costs or expenses that qualify as Eligible Expenses.
(ii) By City. As provided by 2 CFR §§200.338 and 339, the City may suspend or terminate this Agreement in whole or in part if Subrecipient fails to comply with any terms and conditions of this Agreement or upon the occurrence of any Event of Default or any other breach of this Agreement. In accordance with 2 CFR §200.339, the City may also terminate this Agreement with the consent of Subrecipient, in which case, Subrecipient and City must agree upon the termination conditions, including the effective date, and in the case of partial termination, the portion to be terminated.
(iii) By Subrecipient. Under 2 CFR §200.339(a )(4), this Agreement may also be terminated by Subrecipient by providing City with written notification setting forth the reason for such termination, the effective date and in the case of partial termination, the portion to be terminated.
In the case of partial termination, if City determines that the reduced or modified portion of the award will not accomplish the purposes for which the award was made, the City may terminate the award and this Agreement in its entirety.
(iv) Termination for Convenience. City may, by written notice to Subrecipient, terminate this Agreement at any time for convenience and without cause or penalty by giving written notice to Subrecipient of such termination, and specifying the effective date thereof, at least five (5) calendar days before the effective date of such termination.
Upon such termination for convenience, Subrecipient shall be compensated only for those Eligible Expenses incurred prior to the effective date of City’s termination. In no event shall Subrecipient be entitled to funding for any Eligible Expenses incurred after the effective date of termination.
If this award is terminated or partially terminated, the Subrecipient remains responsible for compliance with the closeout requirements in 2 CFR §200.343 and post- closeout requirements set forth in 2 CFR §200.344.
6.4 Scope of Waivers. No waiver of any default or breach under this Agreement shall constitute a waiver of any other default or breach, whether of the same or other covenant, warranty, agreement, term, condition, duty or requirement contained in this Agreement. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel, or otherwise.
6.5 Rights and Remedies are Cumulative. All remedies provided for herein are cumulative and shall be in addition to any and all other rights and remedies provided by law.
The exercise by a party of one or more of its rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or
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15 any other default by the other Party.
VII.
GENERAL PROVISIONS
7.1 Notices. All notices required to be delivered under this Agreement to City or Subrecipient shall be delivered to the respective parties at the address set forth next to the party’s signature to this Agreement or to such other address as the parties may hereafter designate by written notice to the other party.
7.2 Contract Administration. The Contract Officer shall be the person designated by City to administer this Agreement on behalf of City, and the Subrecipient Representative shall be the person designated by Subrecipient to administer this Agreement on behalf of Subrecipient.
7.3 Entire Agreement, Waivers and Amendments. This Agreement including its exhibits integrate all of the terms and conditions mentioned herein, or incidental hereto, and supersedes all negotiations and previous agreements between the parties with respect to all or any part of the subject matter hereof. All waivers of the provisions of this Agreement must be in writing and signed by the appropriate authorities of the party to be charged, and all amendments and modifications hereto must be in writing and signed by the appropriate authorities of City and Subrecipient.
7.4 Enforced Delay; Extension of Times of Performance. Time is of the essence in the performance of each of the parties’ respective obligations set forth in this Agreement. No party shall be deemed to be in default and times for performance hereunder shall be extended where delays are due to war; insurrection; any form of labor dispute; lockouts; riots: floods; earthquakes; fires; acts of God or of third parties; third party litigation; acts of a public enemy; referenda; acts of or failures to act by governmental authorities (except that the failure of City to act as required hereunder shall not excuse its performance); moratoria; epidemics; quarantine restrictions; freight em bargoes; unusually severe weather; inability to secure necessary labor, materials, or tools; or other similar causes beyond the control and without the fault of the party claiming an extension of time to perform; provided, however, that the party claiming the existence of a force majeure delay and an extension of its obligation to perform shall notify the other party of the nature of the matter causing the delay within thirty (30) days from the occurrence thereof; and, provided further, that the extension of time shall be only for the period of the force majeure delay.
7.5 Prohibition Against Assignment and Transfer. The qualifications and identity of Subrecipient are of particular concern to City. It is because of those qualifications and identity that C ity has entered into this Agreement with Subrecipient . Accordingly, Subrecipient shall not, whether voluntarily, involuntarily, or by operation of law, undergo any change in ownership or assign, transfer or convey all or any part of this Agreement or any rights hereunder without City’s prior written approval. In considering whether it will grant approval, City shall consider factors such as (a) whether the completion of the Program would be jeopardized; (b) the financial credit, strength, and capability o f the proposed transferee to perform Subrecipient’s obligations hereunder, including the operation of the Program on the Property; and (c) the proposed transferee’s experience and expertise in the
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16 planning, financing, development, ownership, and operation of similar projects and programs. In the absence of specific written agreement by City, no transfer by Subrecipient of all or any portion of its interest in this Agreement shall be deemed to relieve it or any successor party from the obligation to perform the duties and obligations set forth herein.
No assignment shall be approved if Subrecipient is in default (or a default notice has been issued) of this Agreement.
7.6 Authority to Execute. The person(s) executing this Agreement on behalf of the parties hereto warrant that (a) such party is duly organized and existing, (b) they are duly authorized to execute and deliver this Agreement on behalf of said party, and (c) by so executing this Agreement, such party is formally bound to the provisions of this Agreement.
7.7 Execution in Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed to be an original, and such counterparts shall constitu te one and the same instrument.
7.8 Exhibits. This Agreement incorporates by reference the following six (6 ) Exhibits attached hereto:
Exhibit A Scope of Services
Exhibit B Program Budget
Exhibit C CDBG-CV Program Overview
Exhibit D Subrecipient Information
Exhibit E Sample Invoice
Exhibit F Insurance Requirements
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17 IN WITNESS WHEREOF, City and Subrecipient have entered into this Agreement to be effective as of the date set forth above.
Address:
City of Baldwin Park
Community Development Department
Housing Division
14403 E. Pacific Avenue
Baldwin Park, CA 91706
Attn: Housing Manager
“CITY”
City of Baldwin Park, a California municipal
corporation
By:___________________________
Enrique C. Zaldivar, City Manager
Date: _________________________
Address:
Neighborhood Legal Services of
Los Angeles County
1104 E. Chevy Chase Drive
Glendale, CA 91205
“SUBRECIPIENT”
Neighborhood Legal Services of Los
Angeles County (NLSLA)
By:___________________________
Yvonne Mariajimenez
Date: _________________________
APPROVED AS TO FORM:
City of Baldwin Park City Attorney
________________________________
City Attorney
For Internal Reference Only:
Contract No. BP-CDBG-CV-PSA 20.105
18 EXHIBIT “A”
SCOPE OF SERVICES
Under this proposal, NLSLA would assist low -income residents of the City of Baldwin Park through a virtual monthly legal clinic. Participants would receive education about their basic housing rights, an overview on special provisions related to COVID, counsel/advice about their legal matter, referrals to supportive services and assignment of cases to our housing teams for higher level representation at their hearings, if appropriate and within the scope of our priorities. The City of Baldwin Park may in som e cases refer and/or direct residents to NLSLA as needed for assistance with legal issues as they arise, but this will be subject to NLSLA’s capacity and resource limitations.
For Internal Reference Only:
Contract No. BP-CDBG-CV-PSA 20.105
19 EXHIBIT “B”
PROGRAM BUDGET
CDBG Funding Uses/Expenses CDBG Total Total Amount
Personnel Services - Salaries $ 50,000.00
Total $ 50,000.00
For Internal Reference Only:
Contract No. BP-CDBG-CV-PSA 20.105
20 EXHIBIT “C”
CDBG-CV PROGRAM OVERVIEW
The goal of the Neighborhood Legal Services to provide legal services by providing services to low income residents in Baldwin Park.
Under this proposal, NLSLA will assist low -income residents of the City of Baldwin Park through a virtual monthly legal clinic. Participants w ill receive education about their basic housing rights, an overview on special provis ions related to COVID, counsel/advice about their legal matter, referrals to supportive services and assignment of cases to NLSLA housing teams for higher level representation at the hearings, if appropriate and within the scope of our priorities. The City of Baldwin Park may in some cases refer and/or direct residents to NLSLA as needed for assistance with legal issues as they arise, but this will be subject to NLSLA’s capacity and resource limitations.
Staff salaries would include:
Intake Screener – Salary.
Other legal staff
For Internal Reference Only:
Contract No. BP-CDBG-CV-PSA 20.105
21 EXHIBIT “D”
SUBAWARD DATA
(i) Subrecipient Name Legal Services Program
(ii) Subrecipient Unique Entity Identifier: 95-2408642 (iii) Federal Award Identification Number (FAIN): B-20-MW-06-0554 (iv) Federal Award Date of Award to the Recipient by the Federal Agency:
06/18/2020
(v) Subaward Period of Performance Start Date: 10/07/2021 Subaward Period of Performance End Date: 10/31/2022
(vi) Amount of Federal Funds Obligated by this Action by City to the Subrecipient:
$50,000
(vii) Total Amount of Federal Funds Obligated to the
Subrecipient by the City Including the Current
Obligation:
$50,000
(viii) Total Amount of the Federal Award Committed to the Subrecipient by the City:
$50,000
(ix) Federal Award Project Description: Other Public Services (x) Name of Federal Awarding Agency: HUD / CDBG-CV
Name of Pass-Through Entity: City of Baldwin Park
Contact Information f or Federal Awarding Official: Rufus Washington, Director / CPD
Contact Information for City’s Authorizing Official: Enrique Z. Zaldivar, City Manager
Contact Information for City’s Project Director: Carol Averell, Housing Manager
(xi) CFDA Number and Name: 14.218 - Community
Development Block
Grant/Entitlement Grants
(xii) Identification of Whether Subaward is R&D: N/A
(xiii) Indirect Cost Rate for the Federal Award: N/A
Subrecipient Indirect Costs: N/A
For Internal Reference Only:
Contract No. BP-CDBG-CV-PSA 20.105
22 EXHIBIT “E”
Sample Program Invoice
Please view attached invoice template, this attachment will also be available in Excel format upon contract execution.
For Internal Reference Only:
Contract No. BP-CDBG-CV-PSA 20.105
23
For Internal Reference Only:
Contract No. BP-CDBG-CV-PSA 20.105
24 EXHIBIT “F”
Insurance Requirements
The policy or policies of insurance maintained by Subrecipient shall provide the following limits and coverages:
POLICY
• Additional Insured Endorsement
o Modifying the policy and naming “The City and its Officers, Employees and Agents” as additionally insured.
• Worker's Compensation Insurance:
o Statutory
• Comprehensive Automobile Liability Insurance (including hired and non- owned automobiles)
o $1,000,000 Bodily Injury each person
o $1,000,000 Bodily Injury each occurrence
o $1,000,000 Property Damage each occurrence
• Comprehensive General Liability Insurance (including occurrence products and completed operations, broad form occurrence contractual, and personal injury)
o $1,000,000 Bodily Injury each person
o $1,000,000 Bodily Injury each occurrence
o $1,000,000 Bodily Injury Aggregate
o $1,000,000 Property Damage each occurrence
Any deductibles of self-insurance retentions must be declared to and approved by the City.
At the option of the City, either: the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, officials, employees and volunteers; or the Subrecipient shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses.
For Internal Reference Only:
Contract No. BP-CDBG-CV-PSA 20.105
25 Insurance shall be in full force and effect commencing on the first day of the term of this Agreement. Each insurance policy required by this Agreement shall contain the following clauses:
• "This insurance shall not be suspended, voided, cancelled, reduced in coverage or in limits except after thirty (30) days written notice has been given to the City by Certified Mail, Return Requested." • "All rights of subrogation are hereby waived against the City and the members of the City Council and elective or appointive officers or employees, when acting within the scope of their employment or appointment." • "The City, its officers, employees, agents and volunteers are to be covered as insureds as respects: liability arising out of activities performed by or on behalf of the Subrecipient, products and completed operations of the Subrecipient; premises owned, occupied or used by the Subrecipient; or automobiles owned, leased, hired or borrowed by the Subrecipient. The coverage shall contain no special limitations on the scope of protection afforded to the City, its officers, officials, employees, agents or volunteers." • "It is agreed that any insurance maintained by the City will apply in excess of, and no contribute to, insurance provided by the Subrecipient." • "Any failure to comply with reporting or other provisions of the policies including breaches of warranties shall not affect coverage provided to the City, its officers, officials, employees agents or volunteers." • "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."
All insurance coverage required under this Agreement shall be provided through carriers with a Best's Key Rating guide rating of A-:VII or higher that are admitted to do business in the State of California. The certificate(s) of insurance evidencing such coverage shall be completed and executed by an authorized representative of the Company providing insurance, and shall be filed with and approved by the City.
Subrecipient shall include all subcontractors as insured's under its policies, or shall furnish separate certificates and endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the requirements stated above.
ADDENDUM NO. 1
TO THE INTER-AGENCY AGREEMENT
BETWEEN
CITY OF BALDWIN PARK AND POLICE DEPARTMENT
THIS ADDENDUM NO. 1 (“Addendum”) to the Inter-Agency Agreement dated December 4, 2024 (the “Agreement”), by and between the CITY OF BALDWIN PARK, a California municipal corporation (the “City”) and the POLICE DEPARTMENT of the City of Baldwin Park (“Department”), is entered into this day of July 16, 2025 (the “Effective Date”). Each party is at times individually referred to as a “Party” and collectively as the “Parties” herein.
WHEREAS, the Parties entered into an Agreement to memorialize the Department’s responsibilities regarding 2021 American Rescue Plan Act (“ARPA”) funding as described therein; WHEREAS, the City previously obligated $1,725,000 of ARPA funding towards the Affordable Homeownership Expansion Agreement, which includes the properties located at 12779 Torch Street and 4428 Stewart Avenue;
WHEREAS, the City has since determined to reclassify the funding source for the Affordable Homeownership Expansion Agreement from ARPA funds to the General Fund; WHEREAS, the City now desires to re-obligate the $1,725,000 ARPA funds for animal control services provided by the Los Angeles County Animal Control to support eligible services and programs; WHEREAS, the Parties desire to modify the Scope of Services and associated funding under the Agreement to reflect this change;
NOW, THEREFORE, THIS AGREEMENT WITNESSETH that in consideration of the mutual promises contained herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties hereto agree as follows:
A. AMENDMENT TO SCOPE OF WORK AND PAYMENT OF FUNDS
Section A (SCOPE OF WORK AND PAYMENT OF FUNDS) and Exhibit A (SCOPE OF SERVICES/SCHEDULE OF COMPENSATION) of the Agreement are hereby amended to reflect the following set forth below:
1. The City shall increase the ARPA funding obligated for animal control services provided by the Los Angeles County Animal Control by $1,725,000.
2. The revised Scope of Services includes the provision of animal control services through Los Angeles County Animal Control in accordance with ARPA SLFRF guidelines.
3. The Department shall continue to comply with all financial and performance requirements, recordkeeping, and reporting obligations as outlined in the Agreement with respect to the revised funding.
B. EFFECT ON AGREEMENT
Except as specifically modified by this Addendum, all other terms, conditions, and provisions of the Agreement shall remain in full force and effect.
C. COUNTERPARTS
This Addendum may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument.
IN WITNESS WHEREOF, the Parties hereby evidence their agreement to the terms and conditions herein by causing this Addendum to be executed below as of the date set forth above.
CITY OF BALDWIN PARK POLICE DEPARTMENT
By: ______________________________ By: ________________________________ Alejandra Avila Date Robert A. Lopez Date Mayor Chief of Police
ATTEST APPROVE AS TO FORM
By: ______________________________ By: ______________________________ Christopher Saenz Date Christian L. Bettenhausen Date City Clerk City Attorney
ITEM NO: 14.
STAFF REPORT
TO: Honorable Mayor and Members of the City Council
FROM: Manuel Carrillo Jr, Chief Executive Officer
PREPARED BY: Karina Rueda, Human Resources/Risk Manager DATE: July 16, 2025
SUBJECT: Approval of an Exception to the 180-Day California Employees’ Retirement System (CalPERS) Wait Period for a Retired Annuitant Under Government Code Sections
7522.56 and 21224 and Authorization to Execute an
Employment Agreement with Elizabeth G. Pereida to fill a Critical Need in the Communication Operations Bureau of the Police Department
SUMMARY:
The Public Employees’ Pension Reform Act (PEPRA), which took effect in January 2013, made substantial changes to retirement law in California including California Government Code section 7522.56 and 21224 which requires a 180-day break in service before a retired annuitant can return to work as extra help. The law allows for an exception to the 180-day rule for a critical need position or for work that requires specialized skills. The appointments are for a limited duration. The City of Baldwin Park’s Communication Operations Bureau of the Police Department has a need for extra help due to the upcoming retirement of the Civilian Dispatch Supervisor.
Elizabeth G. Pereida, Civilian Dispatch Supervisor has submitted notice of retirement to be effective July 17, 2025, after 27+ years of service, resulting in a loss to the City of institutional and operational knowledge. The City may provide an arrangement where Ms. Pereida can continue to work for a limited duration, with a 960-hour limitation per fiscal year. This additional time for extra help, will minimize disruption, assist with eliminating backlog and will allow for Ms. Pereida to perform work that is in excess of what permanent employees are able to do, while providing emergency dispatch support to the Communication Operations Bureau of the Police Department. Ms. Pereida's continued part-time involvement will ensure continuity of operations while permanent staff develop the necessary experience and institutional knowledge to maintain current service levels and also assist in training new employees that are added to the Communication Operations Bureau.
RECOMMENDED ACTION:
It is recommended that the City Council:
1. Approve and adopt Resolution No. 2025-028 approving an exception to the 180-day CalPERS waiting period for a retired annuitant, in accordance with Government Code Sections 7522.56 and 21224.
2. Authorize the Chief Executive Officer and Human Resources/Risk Manager to reinstate Elizabeth G.
Pereida as a retired annuitant prior to the 180-day wait period and provide authorization to execute an Employment Agreement with Elizabeth G. Pereida at a rate of $34.4271 per hour effective July 28, 2025 through June 30, 2026, and may end sooner, to fill a critical need position in the Communication Operations Bureau of the Police Department.
FISCAL IMPACT:
Funding will be paid from the salary cost savings associated with the currently vacant Civilian Dispatch Supervisor and Civilian Dispatcher positions. This will result in a savings to the General Fund as this appointment
will receive no benefits other than an hourly salary within the current range of the Civilian Dispatcher position.
BACKGROUND:
According to Government Code Sections 7522.56 and 21224 a retiree can only work 960 hours per fiscal year.
The law also states that if an agency wishes to reemploy such individual sooner than 180 days after retirement, the governing board must certify that the nature of the appointment is necessary to fill a critical need position.
Although it is likely that Ms. Pereida will complete her temporary assignment within the next four to six months, or sooner, there is some flexibility in making the agreement effective through June 30, 2026. Under CalPERS restrictions, the agreement can be terminated earlier.
In order to be compliant with California Law and the 2013 Pension Reform Act, it is normally necessary for the City Council to certify there is an urgent need to waive the 180-day waiting period as well as take an action affirming the execution of such employment arrangements. Additionally, compensation paid to retirees cannot be less than the minimum nor exceed the maximum monthly base salary paid to other employees performing comparable duties. Furthermore, per CalPERS guidelines, the retiree must certify that he has not or will not receive a Golden Handshake or any other retirement-related incentive. The attached resolution and agreement satisfy those requirements.
DISCUSSION:
None
ALTERNATIVES:
No alternatives being recommended.
CEQA REVIEW:
None
LEGAL REVIEW:
This report does not require legal review.
ATTACHMENTS:
1. Resolution No. 2025-028 - Approving Exception 180day Waiting - Elizabeth Pereida
2. Employment Agreement - Elizabeth Pereida
RESOLUTION NO. 2025-028
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BALDWIN
PARK, CALIFORNIA, APPROVING EXCEPTION TO THE 180-DAY
WAITING PERIOD TO HIRE A CALPERS RETIRED ANNUITANT IN
ACCORDANCE WITH GOVERNMENT CODE SECTIONS 7522.56
AND 21224 AND AUTHORIZING AN EMPLOYMENT AGREEMENT
BETWEEN THE CITY OF BALDWIN PARK AND ELIZABETH G.
PEREIDA TO PROVIDE TEMPORARY EXTRA HELP AS A RETIRED
ANNUITANT FOR A LIMITED DURATION
WHEREAS, in compliance with Government (Gov.) Code section 7522.56 of the Public Employees’ Retirement Law, the City Council must provide CalPERS this certification resolution when hiring a retiree before 180 days has passed since their retirement date; and
WHEREAS, Elizabeth G. Pereida, will retire from the City of Baldwin Park in the position of Civilian Dispatcher Supervisor, effective July 17, 2025; and WHEREAS, Gov. Code section 7522.56 requires that post-retirement employment commence no earlier than 180 days after the retirement date, which is January 13, 2026 without this certification resolution; and WHEREAS, Gov. Code section 7522.56 provides that this exception to the 180- day wait period shall not apply if the retiree accepts any retirement-related incentive; and
WHEREAS, the City Council, the City of Baldwin Park, and Elizabeth G. Pereida certify that Elizabeth G. Pereida has not and will not receive a Golden Handshake or any other retirement-related incentive; and
WHEREAS, the City Council hereby appoints Elizabeth G. Pereida as an extra help retired annuitant to perform the duties of a Civilian Dispatcher for the City of Baldwin Park under Gov. Code section 21224, effective July 28, 2025; and WHEREAS, the entire employment agreement, contract or appointment document between Elizabeth G. Pereida and the City of Baldwin Park has been reviewed by this body and is attached herein; and
WHEREAS, no matters, issues, terms or conditions related to this employment and appointment have been or will be placed on a consent calendar; and WHEREAS, the employment shall be limited to 960 hours per fiscal year for all
CalPERS employers; and
WHEREAS, the compensation paid to retirees cannot be less than the minimum nor exceed the maximum monthly base salary paid to other employees performing comparable duties, divided by 173.333 to equal the hourly rate; and WHEREAS, the maximum base salary for this position is $5,967.36 and the hourly equivalent is $34.4271, and the minimum base salary for this position is $4,909.36 and the hourly equivalent is $28.3232; and
WHEREAS, the hourly rate paid to Elizabeth G. Pereida will be $34.4271; and WHEREAS, Elizabeth G. Pereida has not and will not receive any other benefit, incentive, compensation in lieu of benefit or other form of compensation in addition to this hourly pay rate; and
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF BALDWIN PARK DOES HEREBY RESOLVE AND ORDER AS FOLLOWS:
SECTION 1. the City Council hereby certifies the nature of the appointment of Elizabeth G. Pereida as described herein and detailed in the attached employment agreement and that this appointment is necessary to fill the critically needed position of Civilian Dispatcher for the City of Baldwin Park by July 28, 2025 due to the specialized skills required of said position and to perform work that is in excess of what permanent employees are able to do, while providing emergency dispatch support to the Communication Operations Bureau of the Police Department.
PASSED, APPROVED AND ADOPTED this 16th day of July 2025. __________________________________
ALEJANDRA AVILA
MAYOR
[ATTESTATION ON NEXT PAGE]
ATTEST:
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES SS:
CITY OF BALDWIN PARK
I, Christopher Saenz, City Clerk of the City of Baldwin Park hereby certify that the foregoing Resolution No. 2025-028 was duly adopted by the City Council of the City of Baldwin Park at a regular scheduled meeting held on the 16 th day of July 2025, by the following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
___________________
CHRISTOPHER SAENZ
CITY CLERK
EMPLOYMENT AGREEMENT
This employment agreement is effective as of July 28, 2025, between the City of Baldwin Park (“Employer”) and Elizabeth G. Pereida (“Retired Annuitant”).
1. The Retired Annuitant served as a Civilian Dispatch Supervisor for Employer.
Employer desires to ensure continued services of Retired Annuitant as a Civilian Dispatcher in order to maintain her experience, abilities, and knowledge until such time is suitable for the Communication Operations Bureau of the Police Department, under the terms and conditions set forth below.
2. Retired Annuitant desires to resume employment with Employer and is willing to do so under the terms and conditions set forth below.
a. THEREFORE, in consideration of the above recitals, and of mutual promises and conditions in this AGREEMENT, it is agreed as follows:
3. TERMS OF EMPLOYMENT. Subject to earlier termination as provided for in this AGREEMENT, Retired Annuitant shall be employed for a term beginning July 28, 2025 and ending no later than June 30, 2026.
4.DUTIES AND AUTHORITY. Employer shall employ Retired Annuitant as the Civilian Dispatcher. Retired Annuitants shall be vested with full power and authority to direct and conduct all the business of the City of Baldwin Park as is provided for by the Baldwin Park Municipal Code and other applicable statutory provisions.
Duties and assignments while in this capacity shall generally include emergency dispatch services.
5.REASONABLE TIME AND EFFORT. During his employment, Retired Annuitant shall devote such time, interest, and effort to the performance of his AGREEMENT as necessary. In no event shall Retired Annuitant work more than 960 hours within any Fiscal Year during the term of this Agreement.
6. WAGES. During the term of this AGREEMENT, Employer agrees to pay Retired Annuitant the hourly rate of $34.4271, payable in bi-weekly installments subject to all applicable withholding and deductions.
7. ADDITIONAL BENEFITS. Except as provided for above, or as required by State and Federal law, during the employment term, Retired Annuitant shall not be entitled to receive other benefits of employment generally available to Employer’s other employees.
8. TERMINATION OF AGREEMENT. Employer may terminate Retired Annuitant’s employment at any time during the term of this AGREEMENT.
9. INDEMNIFICATION BY EMPLOYER. Employer shall, to the maximum extent permitted by the law, indemnify and hold Retired Annuitant harmless for any acts or decisions made by him in the course and scope of employment. To the same,
Employer will pay and advance all expenses, including reasonable attorney’s fees and costs of court approved settlements, actually and necessarily incurred by Employer in connection with the defense of any action suit or proceeding and in connection with any appeal, which has been brought against Retired Annuitant by reason of his performance of services as an officer or agent of the Employer.
10.TERMINATION OR RESIGNATION. Retired Annuitant may terminate this AGREEMENT by giving Employer prior written notice of resignation. Unless otherwise agreed to by the parties, termination of employment by resignation shall result in no post-resignation compensation being paid to Retired Annuitant.
11.CONFORMANCE WITH RETIREMENT LAW. This Agreement may only be modified, including extension of term, in writing by Retired Annuitant and Mayor and City Council or their designee provided that changes are in conformance with current California Public Employee’s Retirement law involving post-retirement employment under Section 7522.56.
12.CITY COUNCIL APPROVAL. This AGREEMENT shall be of no force and effect unless or until approved by the City Council of Baldwin Park.
IN WITNESS WHEREOF, the City of Baldwin Park has caused this Agreement to be signed and executed and duly attested by its officers thereunto duly authorized, and Retired Annuitant has signed and executed this Agreement.
CITY OF BALDWIN PARK
_____________________________________
Alejandra Avila
Mayor
___________________
Date
RETIRED ANNUITANT
____________________________________
Elizabeth G. Pereida
____________________
Date
[ATTESTATION ON THE NEXT PAGE]
ATTEST:
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES SS:
CITY OF BALDWIN PARK
I, CHRISTOPHER SAENZ, City Clerk of the City of Baldwin Park do hereby certify that the foregoing Resolution No. 2025-028 was duly adopted by the City Council of the City of Baldwin Park at a regular meeting thereof held on June 18, 2025 and that the same was adopted by the following vote to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
___________________________
CHRISTOPHER SAENZ
CITY CLERK
ITEM NO: 15.
STAFF REPORT
TO: Honorable Mayor and Members of the City Council
FROM: Rose Tam, Finance Director
PREPARED BY: Anthony Ceballos, Accountant
DATE: July 16, 2025
SUBJECT: Treasurer's Report SA - May 2025
SUMMARY:
Attached is the Treasurer’s Report for the month of May 2025. The Treasurer’s Report lists all cash for the City which includes the Baldwin Park Financing Authority, the Housing Authority, and the Successor Agency to the Community Development Commission (CDC). All investments are in compliance with the City’s Investment Policy and the California Government Code.
RECOMMENDED ACTION:
Staff recommends that the Board receive and file the Treasurer’s Report for May 2025.
FISCAL IMPACT:
None
BACKGROUND:
City of Baldwin Park Investment Policy requires the Treasurer’s Report be submitted to the Mayor and City Council on a monthly basis.
DISCUSSION:
None
ALTERNATIVES:
None
CEQA REVIEW:
None
LEGAL REVIEW:
Not Applicable
ATTACHMENTS:
1. Treasurer Report May 2025
ITEM NO: 16.
STAFF REPORT
TO: Honorable Mayor and Members of the City Council
FROM: Rose Tam, Finance Director
PREPARED BY: Anthony Ceballos, Accountant
DATE: July 16, 2025
SUBJECT: Treasurer's Report FA - May 2025
SUMMARY:
Attached is the Treasurer’s Report for the month of May 2025. The Treasurer’s Report lists all cash for the City which includes the Baldwin Park Financing Authority, the Housing Authority, and the Successor Agency to the Community Development Commission (CDC). All investments are in compliance with the City’s Investment Policy and the California Government Code.
RECOMMENDED ACTION:
Staff recommends that the Board receive and file the Treasurer’s Report for May 2025.
FISCAL IMPACT:
None
BACKGROUND:
City of Baldwin Park Investment Policy requires the Treasurer’s Report be submitted to the Mayor and City Council on a monthly basis.
DISCUSSION:
None
ALTERNATIVES:
None
CEQA REVIEW:
None
LEGAL REVIEW:
Not Applicable
ATTACHMENTS:
1. Treasurer Report May 2025
ITEM NO: 17.
STAFF REPORT
TO: Honorable Mayor and Members of the City Council
FROM: Rose Tam, Finance Director
PREPARED BY: Jenny Yu, Sr. Finance Clerk
DATE: July 16, 2025
SUBJECT: Baldwin Park Housing Authority's Warrants and Demands
SUMMARY:
Attached are the Warrants and Demands Registers for the City of Baldwin Park Housing Authority to be ratified by the Board.
RECOMMENDED ACTION:
Staff recommends that the Board ratify the attached Warrants and Demands Register.
FISCAL IMPACT:
The total of the Warrants and Demands for Housing Authority was $835,447.81.
BACKGROUND:
The attached Claims and Demands report format meet the required information as set out in the California Government Code. Staff has reviewed the requests for expenditures for the appropriate budgetary approval and for the authorization from the department head or its designee. Pursuant to Section 37208 of the California Government Code, the Chief Executive Officer or his/her designee does hereby certify to the accuracy of the demands hereinafter referred. Payments released since the previous meeting and the following is a summary of the payment released:
1. The Jun 06, 2025 to Jul 03, 2025 Warrant check numbers 73384 through 73424 in the amount of $11,316.65 and Automated Clearing House (ACH) in the amount of $824,131.16 were made on behalf of City of Baldwin Park Housing Authority constituting of claims and demands, are herewith presented to the Board as required by law, and hereby ratified.
DISCUSSION:
None
ALTERNATIVES:
None
CEQA REVIEW:
None
LEGAL REVIEW:
Not Applicable
ATTACHMENTS:
1. Happy Check Register
2. Happy Check Register ACH
Check Register Report
Date Range: 6/6/2025...7/3/2025
VMS Date Range: ...
Program: -
Payment Type:
Check Numbers: ...
Direct Deposit: Exclude Direct Deposit
Check Cleared: All
Port Status: Include Port Ins
Zero HAPs: Include Zero HAPs
Voided Payments: Omit Voided Payments
Held Checks: Exclude Held Checks
Grouped by:
Sorted by: Check Number
7/3/2025
Check Number Check Date Payee Name Amount
DDVMS Date
73384 06/30/2025 Jennelle M Henderson $36.0006/01/2023
73385 06/30/2025 Julie L Fonseca $10.0006/01/2023
73386 06/30/2025 Jacqueline Chaves $60.0012/01/2021
73387 06/30/2025 Carmen Riv era-Madrid $28.0008/01/2023 73388 06/30/2025 Yvette A Heredia $54.0010/01/2021
73389 06/30/2025 Lakeisha Com aneci Hutchinson $5.0004/01/2015 73390 06/30/2025 Michael P Onopa $224.0003/01/2022
73391 06/30/2025 Hermila Silva $12.0001/01/2017
73392 06/30/2025 Valerie Lorraine Casanov a $95.0010/01/2020 73393 06/30/2025 Ernestina Galindo $9.0006/01/2021
73394 06/30/2025 Mindy Sophia Aguirre $33.0009/01/2022
73395 06/30/2025 Camille M Lovesmith $12.0006/01/2022
73396 06/30/2025 Christine A Rodriguez $411.0 001/01/2025 73397 06/30/2025 Sarah Rios $42.00 10/01/2023
73398 06/30/2025 Deanna Talamantes $97.0005/06/2025
73399 06/30/2025 Dolores Valjean Jeannette Gomez $44.0011/01/2021 73400 07/01/2025 Julie L Fonseca $20.0007/01/2025
73401 07/01/2025 Vanessa G Ros s $43.0007/01/2025
73402 07/01/2025 Jacqueline Chaves $168.0007/01/2025
73403 07/01/2025 Carmen Riv era-Madrid $32.0007/01/2025 73404 07/01/2025 Xiomara A Martinez $26.0007/01/2025
73405 07/01/2025 City of Pomona Housing Authority $1232.3207/01/2025 73406 07/01/2025 Marlene Valente $167.0007/01/2025
73407 07/01/2025 Ken Chi-Kin Yu $30.0007/01/2025
73408 07/01/2025 Courtney F Crocker $26.0007/01/2025
73409 07/01/2025 Mindy Sophia Aguirre $101.0007/01/2025 73410 07/01/2025 Christine A Rodriguez $62.0007/01/2025 73411 07/01/2025 Gwendolyn Jean Adams $88.0007/01/2025
73412 07/01/2025 Jess Edward Peralta $15.0007/01/2025
73413 07/01/2025 Korina Gonzales $226.0007/01/2025
73414 07/01/2025 Kellie D Towns $46.0007/01/2025
73415 07/01/2025 Elaina A Caldera $16.0007/01/2025
Check Register Report JY 07/03/2025 Page 1Copyright © 2011-2025, HAPPY Software, Inc.
73416 07/01/2025 Manuel Ochoa $159.0007/01/2025
73417 07/01/2025 Jose J Martinez $87.0007/01/2025
73418 07/01/2025 Bianca M Harris $122.0007/01/2025
73419 07/01/2025 Deanna Talamantes $53.0007/01/2025
73420 07/01/2025 George Ka Chun Chew $2579.0007/01/2025 73421 07/01/2025 City of Carlsbad $1232.8307/01/2025
73422 07/01/2025 Cameron Properties $3383.5007/01/2025
73423 07/01/2025 Sylvia J Rodriguez $139.0007/01/2025
73424 07/01/2025 Mary F Ballesteros $91.0007/01/2025
$11,316.65Total
5Unit Count
$1,642.10Average Weighted by Unit Count
$166.42Average
Hard to House Count
Check Register Report JY 07/03/2025 Page 2Copyright © 2011-2025, HAPPY Software, Inc.
Check Register Report
Date Range: 6/6/2025...7/3/2025
VMS Date Range: ...
Program: -
Payment Type:
Check Numbers: ...
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Grouped by:
Sorted by: Check Number
7/3/2025
Check Number Check Date Payee Name Amount
DDVMS Date
36584 06/11/2025 Oak Park Monrovia, LP $2140.0006/01/2025 36585 06/11/2025 Monica D Mao $151.0006/01/2025
36856 06/30/2025 $4428.00* 05/07/2025
36857 06/30/2025 Post Brookhollow , LP $2542.0005/06/2025 36858 07/01/2025 Y & H Investment, Inc. $1392.0007/01/2025 36859 07/01/2025 Eunice Property, LLC $1365.0007/01/2025 36860 07/01/2025 Wilson Apartment Associates L.P. $1855.0007/01/2025 36861 07/01/2025 ASCENSION HOLDINGS LLC $1294.0007/01/2025 36862 07/01/2025 Tom Cinquegrani $918.0007/01/2025
36863 07/01/2025 Mark T. Fernandez $631.0007/01/2025
36864 07/01/2025 Melody (Muoi) Dao $1709.0007/01/2025
36865 07/01/2025 Han Van Tran $3497.0007/01/2025
36866 07/01/2025 John W. Ruwitc h and Anh Lam Truong $2220.0007/01/2025 36867 07/01/2025 Adam King Lee and Joyce Ng Lee $1505.0007/01/2025 36868 07/01/2025 Mingyu Qu $734.00 07/01/2025
36869 07/01/2025 SAE GROUP, LLC $2289.0007/01/2025
36870 07/01/2025 Wei Zhen Su $1700.0007/01/2025
36871 07/01/2025 Mallorca A partments, LTD $3995.0007/01/2025 36872 07/01/2025 Cipriano Salazar Jr. $1616.0007/01/2025 36873 07/01/2025 Dung Tran $2280.0007/01/2025
36874 07/01/2025 $1596.0007/01/2025
36875 07/01/2025 Monrov ia 612, LP $29000.0007/01/2025
36876 07/01/2025 Leslie K Ng $1113.0 007/01/2025
36877 07/01/2025 Jun Hua Hu $2279.0007/01/2025
36878 07/01/2025 Lien Diep $1493.00 07/01/2025
36879 07/01/2025 Dajojo, LLC $1433.0007/01/2025
36880 07/01/2025 Wen Chia Ko $2190.0007/01/2025
36881 07/01/2025 Investor Trust Realty Group, Inc. $1425.0007/01/2025 36882 07/01/2025 Sieu Tuan Phan $2248.0007/01/2025
36883 07/01/2025 Ana Thai $1029.0007/01/2025
36884 07/01/2025 SRI Properties No 15 LLC $1388.0007/01/2025 36885 07/01/2025 Larry Chow $2021.0007/01/2025
Check Register Report JY 07/03/2025 Page 1Copyright © 2011-2025, HAPPY Software, Inc.
36886 07/01/2025 T & T Asset Holding, LLC $229.0007/01/2025 36887 07/01/2025 Mousa Boushaaya $1848.0007/01/2025
36888 07/01/2025 Tuan Viet Ho $2190.0007/01/2025
36889 07/01/2025 Xiaomin Lin and Xiaoxi Wu $2463.0007/01/2025 36890 07/01/2025 Housing Author ity Of The County Of $5604.8407/01/2025 36891 07/01/2025 4324 Walnut St LLC $2304.0007/01/2025
36892 07/01/2025 El Monte H ousing Partners LP $12919.0007/01/2025 36893 07/01/2025 Joseph T. Tung $1130.0 007/01/2025
36894 07/01/2025 Alamitas LLC $1002.0007/01/2025
36895 07/01/2025 Avalon Monrovia LLC $2216.0007/01/2025 36896 07/01/2025 Pro M anagement Inc. $1742.0007/01/2025 36897 07/01/2025 Andrew & Eva Fogg $1497.0007/01/2025
36898 07/01/2025 Heritage Park Villas LP $28138.0007/01/2025 36899 07/01/2025 Heritage Park Villas LP $6609.0007/01/2025 36900 07/01/2025 $4178.0007/01/2025
36901 07/01/2025 Manapa Enterprises LLC $1495.0007/01/2025 36902 07/01/2025 $6560.0007/01/2025
36903 07/01/2025 Oak Park Monrovia, LP $32979.0007/01/2025 36904 07/01/2025 Palo Verde Apartments, LP $893.0007/01/2025 36905 07/01/2025 Eladio Diaz $2073.0007/01/2025
36906 07/01/2025 Sharon Campbell $3087.0007/01/2025
36907 07/01/2025 John M Ja cquet Sr. $2100.0007/01/2025 36908 07/01/2025 Steven Eraj Espantman and Marta $1440.0007/01/2025 36909 07/01/2025 Linda Alice Enriquez $2163.0007/01/2025 36910 07/01/2025 Ha X Van $4871.00 07/01/2025
36911 07/01/2025 Chen Jackson $740.0007/01/2025
36912 07/01/2025 Group XII Properties, LP $1688.0007/01/2025 36913 07/01/2025 Philip Tsui $779.00 07/01/2025
36914 07/01/2025 Paul Yen $1587.00 07/01/2025
36915 07/01/2025 Becky Binh Nguyet Luu or Eddie Ma $2126.0007/01/2025 36916 07/01/2025 Tinh Van Le $729.0007/01/2025
36917 07/01/2025 The Six Straws LLC $7112.0 007/01/2025 36918 07/01/2025 Twelve31 Partners LP $1637.0007/01/2025 36919 07/01/2025 Everardo Garcia $2566.0007/01/2025
36920 07/01/2025 Ngoc T. Lieu $2819.0007/01/2025
36921 07/01/2025 Alfred Tai-Kong Ho and Lisa Chen $875.0007/01/2025 36922 07/01/2025 Covina 023 Woods 206 LP c/o $763.0007/01/2025 36923 07/01/2025 Doreen Han $1898.0007/01/2025
36924 07/01/2025 Cecilia Lan Cao $1548.0007/01/2025
36925 07/01/2025 Baldwin Park Family Housing Limited $30409.0007/01/2025 36926 07/01/2025 Grace Chiou $1603.0007/01/2025
36927 07/01/2025 Marina Alvarez $5107.0007/01/2025
36928 07/01/2025 Zhi Min Li and WX L Investments Inc. $1070.0007/01/2025 36929 07/01/2025 Sui Man Mak $1084.0007/01/2025
36930 07/01/2025 Henry Wong $2038.0007/01/2025
36931 07/01/2025 West Covina Senior Villas II, LP $1017.0007/01/2025 Check Register Report JY 07/03/2025 Page 2Copyright © 2011-2025, HAPPY Software, Inc.
36932 07/01/2025 Francisco J. Sanchez and Gloria $1043.0007/01/2025 36933 07/01/2025 Blessed Rock of El Monte $28030.0007/01/2025 36934 07/01/2025 Blessed Rock of El Monte $1286.0007/01/2025 36935 07/01/2025 Joanne Pham Chau $2524.0007/01/2025
36936 07/01/2025 Vintage Park, LLC dba: Vintage Par k $6010.0007/01/2025 36937 07/01/2025 Alfonso Contreras $962.0007/01/2025
36938 07/01/2025 Ryan Quach and Hue Cao $1286.0007/01/2025 36939 07/01/2025 Windwood West Co vina, L.P. c/o GK $1588.0007/01/2025 36940 07/01/2025 Alta Vista Villas, LP c/o Yale $3696.0007/01/2025 36941 07/01/2025 West Covina Seniors Villas I $1003.0007/01/2025 36942 07/01/2025 Post Brookhollow , LP $21867.0007/01/2025 36943 07/01/2025 Alexander Chan $2516.0007/01/2025
36944 07/01/2025 Phat Binh Vuong $1126.0 007/01/2025
36945 07/01/2025 Alan Wu $831.0007/01/2025
36946 07/01/2025 Keymax Group, Inc $3280.0007/01/2025
36947 07/01/2025 Lawe Family Trust $794.0007/01/2025
36948 07/01/2025 Henry Ho $1300.00 07/01/2025
36949 07/01/2025 PAMA IV Properties, LP $4958.0007/01/2025 36950 07/01/2025 Roger Hin Nam Mak $7777.0007/01/2025
36951 07/01/2025 LAT Inve stments, LLC $3924.0007/01/2025 36952 07/01/2025 Kimmie Mu Matsunaga $4221.0007/01/2025 36953 07/01/2025 Xitlalai Del Real Sanchez $1713.0007/01/2025 36954 07/01/2025 Delgar IV LLC $1377.0007/01/2025
36955 07/01/2025 Mary L Haynes $1126.0 007/01/2025
36956 07/01/2025 $2002.0007/01/2025
36957 07/01/2025 Betty Chim Lieu $1336.0007/01/2025
36958 07/01/2025 Kimberly Nguyen $1014.0007/01/2025
36959 07/01/2025 Gregory W. Pratt $2570.0007/01/2025
36960 07/01/2025 Joseph M. Kwok $2216.0007/01/2025
36961 07/01/2025 Leng Zhang and Bao Ying Jiang $1767.0007/01/2025 36962 07/01/2025 Mack E Titus $1752.0007/01/2025
36963 07/01/2025 Propman Inc. $1304.0007/01/2025
36964 07/01/2025 Lourdes J. Garrison $1496.0007/01/2025 36965 07/01/2025 Lois J Gaston $1839.0007/01/2025
36966 07/01/2025 Doan & Lily Thi $2300.0007/01/2025
36967 07/01/2025 El Monte Affor dable Housing Partner $931.0007/01/2025 36968 07/01/2025 Jose Baudelio Delgado $1594.0007/01/2025 36969 07/01/2025 Larry Mimms $1600.0007/01/2025
36970 07/01/2025 $3059.0007/01/2025
36971 07/01/2025 Fat Law $946.00 07/01/2025
36972 07/01/2025 Kevin Kambor Kwong and Yuk Ming $1458.0007/01/2025 36973 07/01/2025 Dwight Chang $2484.0007/01/2025
36974 07/01/2025 Cameron Park Community Partners, $1885.0007/01/2025 36975 07/01/2025 Mozhgan Tavakoli $5154.0007/01/2025
36976 07/01/2025 Lourdes Vela $4331.0007/01/2025
36977 07/01/2025 Gilbert Roybal $734.0007/01/2025
Check Register Report JY 07/03/2025 Page 3Copyright © 2011-2025, HAPPY Software, Inc.
36978 07/01/2025 Philip & Fanny Kwok $1665.0007/01/2025 36979 07/01/2025 Woodside Vill age Apartments LP $18659.0007/01/2025 36980 07/01/2025 Cynthia Pham $664.0007/01/2025
36981 07/01/2025 Katie Yau and Daniel Hong $3178.0007/01/2025 36982 07/01/2025 Fanny Chan $1167.0 007/01/2025
36983 07/01/2025 Kwan and Mei Chiang $1258.0007/01/2025 36984 07/01/2025 Sergio Molina $1600.0007/01/2025
36985 07/01/2025 Fortune America $1700.0007/01/2025
36986 07/01/2025 Jason Tran $1028.0007/01/2025
36987 07/01/2025 Chuen Lau $4130.0007/01/2025
36988 07/01/2025 Tanya H Chen $2887.0007/01/2025
36989 07/01/2025 Dan Thanh Peng and Hoan Peng $1594.0007/01/2025 36990 07/01/2025 Sunset Square #200U, LP $11015.3207/01/2025 36991 07/01/2025 Ngoc Lieu $1362.0007/01/2025
36992 07/01/2025 Lark Ellen Village $15185.0007/01/2025 36993 07/01/2025 Xuyen Thach Han $3093.0007/01/2025
36994 07/01/2025 Kim Wah Wong and Sau Yi Wong $1592.0007/01/2025 36995 07/01/2025 Lucena A Ewing $3406.0007/01/2025
36996 07/01/2025 Christine Wu or Joseph Wu $1881.0007/01/2025 36997 07/01/2025 Jocelyn Jae Jhong $3445.0007/01/2025
36998 07/01/2025 Emilio De Jesus Cruz $429.0007/01/2025 36999 07/01/2025 Delgar V LLC $1284.0007/01/2025
37000 07/01/2025 Isabel R Sanchez $1847.0007/01/2025
37001 07/01/2025 Cienega Gar den Apartments $9529.0007/01/2025 37002 07/01/2025 Vinh Hong La i $5743.0007/01/2025
37003 07/01/2025 LPC 1829 E Workman Ave., LLC $6060.0007/01/2025 37004 07/01/2025 EZ 50 LLC $1863.0007/01/2025
37005 07/01/2025 Kuen K Wong $1500.0007/01/2025
37006 07/01/2025 Doreen E Ewing $3633.0007/01/2025
37007 07/01/2025 Moller Property Management $1365.0007/01/2025 37008 07/01/2025 TPA/NASCH LLC, Westgate as a sole $1122.0 007/01/2025 37009 07/01/2025 TDF LP - Pacific Towers c/o Winn $13093.0007/01/2025 37010 07/01/2025 Paul & Annie W Chau $889.0007/01/2025
37011 07/01/2025 Gilbert Dominguez $9788.0007/01/2025
37012 07/01/2025 Mary Ann Norwood $1447.0007/01/2025
37013 07/01/2025 Eric Yu $2391.00 07/01/2025
37014 07/01/2025 Up Hill Investment Inc. $1861.0007/01/2025 37015 07/01/2025 Dieu Van Huynh $916.0007/01/2025
37016 07/01/2025 Kelly Nguyen $1810.0007/01/2025
37017 07/01/2025 Vijay Gulat i $3544.0007/01/2025
37018 07/01/2025 Nancy Mikhaiel $2314.0007/01/2025
37019 07/01/2025 Badillo Street S enior Apartments, L.P. $32020.0007/01/2025 37020 07/01/2025 Monrovia He ritage Park LP $29849.0007/01/2025 37021 07/01/2025 Tyler-Valley Me tro Housing, LP $12425.0007/01/2025 37022 07/01/2025 James or Barbara Fox $1125.0 007/01/2025 37023 07/01/2025 Mayra Ortega $1373.0007/01/2025
Check Register Report JY 07/03/2025 Page 4Copyright © 2011-2025, HAPPY Software, Inc.
37024 07/01/2025 Sel Homes LLC $9388.0007/01/2025
37025 07/01/2025 Hui Chuan Wang $4030.0007/01/2025
37026 07/01/2025 Nhan Nguyen and Amy Tran $3007.0007/01/2025 37027 07/01/2025 Puente Villa LLC $2967.0007/01/2025
37028 07/01/2025 RAMONA BLVD. FAMILY $13362.0007/01/2025 37029 07/01/2025 AJG Realty Inc. $2038.0007/01/2025
37030 07/01/2025 Maria Martha Martinez $8033.0007/01/2025 37031 07/01/2025 Antonio & Aida Rinos $1807.0007/01/2025 37032 07/01/2025 Greater San G abriel Valley Property $1816.0007/01/2025 37033 07/01/2025 Annette C Scott $1509.0007/01/2025
37034 07/01/2025 1024 Royal Oaks LP dba Whispering $20010.0007/01/2025 37035 07/01/2025 1024 Royal Oaks LP dba Whispering $7989.0007/01/2025 37036 07/01/2025 Khiem Nguyen, Authorized Signer $2463.0007/01/2025 37037 07/01/2025 Derek Sim $2176.0007/01/2025
37038 07/01/2025 Josephine Tran $1154.0 007/01/2025
37039 07/01/2025 Therese Marie Simon $2192.0007/01/2025 37040 07/01/2025 Allan M. & Virginia J Chipp and Ralph $1151.0007/01/2025 37041 07/01/2025 Zi Jian Li $972.00 07/01/2025
37042 07/01/2025 Minh A Nguyen $1778.0007/01/2025
37043 07/01/2025 DelGar I LLC. $1316.0007/01/2025
37044 07/01/2025 Jaime Barcena $1550.0007/01/2025
37045 07/01/2025 Monica D Mao $1489.0007/01/2025
37046 07/01/2025 Shiu-Ein Huang $308.0007/01/2025
37047 07/01/2025 The Promenade Hous ing Partners, LP $7088.0007/01/2025 37048 07/01/2025 Paramjit S Nijjar $3264.0007/01/2025
37049 07/01/2025 Rosa Beltran $2223.0007/01/2025
37050 07/01/2025 David Wagner $1156.0 007/01/2025
37051 07/01/2025 Ynfante Ho ldings I, LLC $789.0007/01/2025 37052 07/01/2025 Roman Basin $2132.0007/01/2025
37053 07/01/2025 Sandhya Kal and Padma Kal $2915.0007/01/2025 37054 07/01/2025 Venancio Feli x $278.0007/01/2025
37055 07/01/2025 Nomer Lacson $2041.0007/01/2025
37056 07/01/2025 Anna & Simon Choi $1519.0007/01/2025
37057 07/01/2025 Chung Thi Pham $2540.0007/01/2025
37058 07/01/2025 $2463.0007/01/2025
37059 07/01/2025 Roy Lam $1345.00 07/01/2025
37060 07/01/2025 Golden Dragon Pr operties LLC c/o $575.0007/01/2025 37061 07/01/2025 Nancy H Shen $955.0007/01/2025
37062 07/01/2025 Richard A DaSylveira $408.0007/01/2025 37063 07/01/2025 Sara Romo $2440.0007/01/2025
37064 07/01/2025 Singing Wood Senior Housing LP $19436.0007/01/2025 37065 07/01/2025 Sitara B. Mamdani $2446.0007/01/2025
37066 07/01/2025 Garvey Senior A ffordable Partners, LP $4575.0007/01/2025 37067 07/01/2025 Amy Phan Tran $1789.0007/01/2025
37068 07/01/2025 Ryan Kinpong Woo and Ching King $991.0007/01/2025 37069 07/01/2025 Mei Yan Chen $941.0007/01/2025
Check Register Report JY 07/03/2025 Page 5Copyright © 2011-2025, HAPPY Software, Inc.
37070 07/01/2025 Shawn Hui Zhen $3176.0007/01/2025
$824,131.16Total
519Unit Count
$1,575.83Average Weighted by Unit Count
$1,560.85Average
Hard to House Count
Check Register Report JY 07/03/2025 Page 6Copyright © 2011-2025, HAPPY Software, Inc.
ITEM NO: 18.
STAFF REPORT
TO: Honorable Mayor and Members of the City Council
FROM: Rose Tam, Finance Director
PREPARED BY: Anthony Ceballos, Accountant
DATE: July 16, 2025
SUBJECT: Treasurer's Report HA - May 2025
SUMMARY:
Attached is the Treasurer’s Report for the month of May 2025. The Treasurer’s Report lists all cash for the City which includes the Baldwin Park Financing Authority, the Housing Authority, and the Successor Agency to the Community Development Commission (CDC). All investments are in compliance with the City’s Investment Policy and the California Government Code.
RECOMMENDED ACTION:
Staff recommends that the Board receive and file the Treasurer’s Report for May 2025.
FISCAL IMPACT:
None
BACKGROUND:
City of Baldwin Park Investment Policy requires the Treasurer’s Report be submitted to the Mayor and City Council on a monthly basis.
DISCUSSION:
None
ALTERNATIVES:
None
CEQA REVIEW:
None
LEGAL REVIEW:
Not Applicable
ATTACHMENTS:
1. Treasurer Report May 2025