Employees may accumulate up to a maximum of one hundred (100) hours of holiday bank time. Each January 1, such excess hours will be removed from the employee's holiday bank hours accrual, calculated at their then straight time hourly rate and placed in a holiday hours bank to be paid no later than June 30 of the same year.
If an employee separates employment from the City, and has used holiday bank time prior to the occurrence of the actual holiday, he/she will have his/her vacation bank, administrative leave and/or final paycheck reduced to reflect the excess holiday bank time used.
If an employee separates employment from the City, and has not used any eligible accrued holiday bank time, he/she will be paid for such eligible holiday bank time at his/her straight time rate.
Compensation for Accrued Leave Time
Notwithstanding the maximum accruals established for vacation, administrative leave and holiday bank, Executive employees may accrue up to a maximum of three (3) months of additional paid leave time composed of a combination of vacation, administrative leave and/or holiday bank time.
DEFERRED COMPENSATION PLANS
The City’s deferred compensation plans are designed to provide employees with a supplemental retirement savings plan.
457(b) Plan
Employee paid through pre-tax payroll deductions, subject to IRS annual limits.
401(a) Plan
Effective the first full pay period commencing on or after January 12, 2020, the City will contribute $750.00 per month into a 401(a) City sponsored defined contribution retirement plan.
UNCLASSIFIED MANAGERS
BENEFITS MATRIX
ATTACHMENT B
COST OF LIVING ADJUSTMENTS
The following unadjusted base salary shall receive the following:
COLA
Effective June 23, 2024 – 7% COLA
Effective June 22, 2025 – 5% COLA
Effective June 21, 2026 – 3% COLA
INSURANCES/SUPPLEMENTAL WANE PAYMENTS
Benefits Plan
Effective July 1, 2024, the City's contribution to medical and dental premiums shall be increased to $1,600 per month.
Effective July 1, 2025, the City's contribution to medical and dental premiums shall be increased to $1,700 per month.
Effective July 1, 2026, the City’s contribution to medical and dental premiums shall be increased to $1,800 per month.
The employee is required to maintain minimum in a plan of their choice unless the employee can show proof they have adequate health insurance coverage through another source. In instances where the employee's medical insurance premium is less than the City's monthly contribution, the employee will have an option to have the excess monies placed toward an existing benefit program. These options include:
1. Placement in a City provided health insurance plan for self, two (2) party or family coverage;
2. Placement in a City provided dental insurance plan for self, two (2) party or family coverage;
3. Placement spread over a combination of the options listed above;
4. Elect to receive any excess monies in cash, which will be considered as taxable income; or
5. Elect to place the excess cash monies in a City provided deferred compensation program.
Employees hired on or after July 1, 2024;
The cash out options for new hires will be eliminated. Pre-existing part time employees hired full time on or after July 1, 2024, will not be eligible for the cash out options.
Employees who decline medical coverage may use the City’s contribution towards any dental plan/tier premium, with no cash out options.
Vision Plan
Effective the first full pay period commencing on or after July 1, 2017, the City will provide a vision plan to all affected employees, and will contribute up to a maximum premium cost of $37.55 per month. If the premium exceeds the amount, then the employee shall be responsible to pay the difference in excess of $37.55.
Life Insurance
The City will provide term life insurance in the face amount of $60,000 effective April 6, 2016.
The City will provide a supplemental life insurance program to enable employees to purchase additional life insurance at the employee's cost and no contribution from the City.
Long-Term Disability and Short Term Disability
The City will provide each employee with long-term disability insurance coverage as set forth in the plan on file in the Human Resources Office. Effective June 1, 1993, affected employees will be eligible to receive benefits commencing on the 31st day of non-work related injury or illness, and employees will be eligible to receive a maximum benefit of 66 2/3% of their current base salary up to a maximum of $5,000 per month.
RETIREMENT
Employees Hired Before January 1, 2013
The City contracts with the State of California Public Employees Retirement System (CalPERS) for the classifications contained in this agreement. The plan shall include the following options:
1. 2.7% @ 55 retirement formula (Government Code §21354.4);
2. Single highest year final compensation (Government Code §20042);
3. Military service credit as public service option (Government Code §21024);
4. 1959 Survivors Benefit Level 1 for which each employee contributes ninety-three cents ($.93) per pay period (Government Code §21571);
5. Pre-Retirement Death Benefits to continue after remarriage of survivor (Government Code §21551);
6. 2% Annual Cost of Living Allowance (Government Code §21329);
7. $500 Retired Death Benefits.
In accordance with City Resolution 2015-094, effective October 25, 2015, employees will pay 100% of the employee’s membership contribution to the California Public Employees Retirement System (CalPERS). All such employee contributions shall be deposited in the member’s retirement account.
New CalPERS Members Hired On or After January 1, 2013
The City contracts with the State of California Public Employees Retirement System (CalPERS) for the classifications contained in this agreement. The plan shall include the following options:
1. 2% at 62 formula (Government Code §7522.20);
2. Three (3) year average final compensation period (Government Code §20037);
3. Pre-Retirement Death Benefits to continue after remarriage of survivor (Government Code §21551);
4. Military Service Credit as Public Service (Government Code §21024);
5. 1959 Survivors Benefit Level 1 for which each employee contributes ninety-three cent ($.93) per pay period (Government Code §21571);
6. 2% Annual Cost of Living Allowance (Government Code §21329);
7. Employees will pay 50% of the normal cost as determined by CalPERS.
8. $500 Retired Death Benefits
Retiree Health Benefit Plan for Employees Hired Before July 1, 2020:
For all employees hired prior to July 1, 2020, if upon retirement from the City, the employee enrolls in the City's CalPERS medical care plan, the City will pay the minimum employer contribution to CalPERS that is
required by Government Code Section 22892(b). In addition, the City will cover the premium cost for retiree- only coverage in the retiree's chosen medical plan.
Effective the first full pay period following the date of MOU approval by City Council the Health reimbursement Account (HRA) will be terminated.
Retiree Health Benefit Plan for Employees Hired on or After July 1, 2020:
For all employees hired on or after July 1, 2020, if upon retirement from the City, the employee enrolls in the City's CalPERS medical care plan, the City will pay only the minimum employer contribution to CalPERS that is required by Government Code section 22892(b).
BILINGUAL PAY
Effective the first full pay period commencing on or after July 1, 2017, the City agrees to increase the bilingual pay amount from one hundred dollars ($100.00) to one hundred fifty dollars ($150.00) per month to an employee who is capable of speaking, rea ding, writing and/or interpreting the language of Spanish, Chinese, Japanese, Vietnamese, Tagalog, and Signing. Qualifying test established by the City shall make determination of capability. Re-testing of individuals will be required to determine bilingua l capability in the above stated languages. Only those individuals who score at the level of “Good” or better will be eligible for bilingual pay.
ELECTRONIC DEVICE MONTHLY ALLOW ANCE
Effective the first full pay period commencing on or after July 1, 2017, the City will provide an Executive employee an amount of $100.00 per month to obtain and maintain access to personal electronic communication devices (smart phones, tablets, laptops, etc.) also used for City business.
LONGEVITY PAY
Effective the first full pay period following the date of MOU approval by City Council the City agrees to provide a monthly longevity premium to each eligible employee as follows:
Years of Service Monthly Premium
Five (5) – Nine (9) Years $100
Ten (10) – Fourteen (14) Years $150
Fifteen (15) – Nineteen (19) Years $200
Twenty (20) – Twenty-four (24) Years $250
Twenty-five (25) Years or more $300
Part-time longevity will be applied at fifty percent (50%). For example, one year of part-time work cannot count for more than one half year of longevity. Employees hired full-time after July 1, 2020 will not receive part-time credit for longevity. This section is effective upon ratification and shall not result in back pay or retro pay.
ATTENDANCE AND LEA VES
Sick Leave
The general policy for sick leave will be as set forth, for all full-time employees, in Section
11.4 of the Personnel Rules.
Sick leave will accrue at the rate of 3.6923 hours on a biweekly basis and shall be debited on an hourly basis.
Each eligible employee shall elect his/her maximum sick leave hours accrual. Dependent upon the total number of currently accrued sick leave hours, the maximum sick leave hours accrual may be set at 300 hours, 600 hours or 900 hours. If an eligible employee wishes to elect a maximum sick leave accrual level that is at a higher level than their closest currently accrued sick leave hours, they may do so. The maximum accrual elected by the eligible employee will be irrevocable. Once the election is made by the employee, such excess hours will be removed from the employee's sick leave hours accrual, calculated at their then straight time hourly rate and placed into a sick leave hours bank to be paid at 75% of the total value, with the timing and method of payment to be determined by the City.
When an employee's service with the City is terminated for any reason, no compensation shall be paid for the unused sick leave.
Annual Sick Leave Incentive
Sick leave shall accrue on hourly basis of eight (8) hours per month and shall be debited on an hourly usage basis. Each January 1, eligible employees will commence to accrue sick leave hours above their prior elected sick leave hours bank (300, 600 or 900). At the close of the calendar year, each eligible employee will receive 75% of the unused portion of sick leave hours as compensation, calculated at their then straight time hourly rate. Payment will be made at the next closest pay period.
Bereavement Leave
Each employee will receive up to five days of unpaid job-protected bereavement leave. The City will provide employees with the equivalent of one (1) workweek of paid bereavement leave, per incident. Employees may utilize their own forms of accruals for the additional time taken.
Family members covered:
Employee's: spouse, children, siblings, parents, grandparents, step- children, foster children, grandchildren, and State registered domestic partners.
Spouse's: parents, and grandparents
Said time will not be cumulative from one twelve (12) month period to another nor will pay in lieu of unused leave for bereavement is provided.
Vacation
Employees will be entitled to utilize accrued vacation leave after completion of six (6) months continuous employment with the City. Employees may be eligible to utilize accrued vacation leave at an earlier time, upon written request to and approval of their department head.
The times during which an employee may take his/her vacation leave shall be determined by the department head with due regard for the wishes of the employee and for the needs of the service.
Employees shall, each calendar year, be required to take a minimum of forty (40) consecutive hours vacation leave. In addition, an employee may, with approval of the appointing authority, use vacation leave in lesser increments during the calendar year.
Employees may accumulate up to a maximum of two (2) vacation periods in any one calendar year for the purpose of a vacation leave. A vacation period is defined as the maximum amount of vacation leave accrued by an employee in any calendar year, in accordance with Subsections (a), (b), (c), (d) and (e), as stated below.
a. Employees having less than five (5) years of employment (vacation accrual = 96 hours per year) the maximum amount of vacation that may be accumulated shall be 192 hours.
b. Employees having more than five (5) years of service but less than ten (10) years of employment (vacation accrual = 120 hours per year), the maximum amount of vacation that may be accumulated shall be 240 hours.
c. Employees having more than ten (10) years but less than fifteen (15) years of employment (vacation accrual = 144 hours per year), the maximum amount of vacation that may be accumulated shall be 288 hours.
d. Employees having more than fifteen (15) years but less than twenty (20) years of employment (vacation accrual = 168 hours per year), the maximum amount of vacation that may be accumulated shall be 336 hours.
e. Employees having over twenty (20) years of employment (vacation accrual — 192 hours per year). The maximum amount of vacation that may be accumulated shall be 384 hours.
If the employee, because of business necessity, is not able to utilize excess accrued vacation hours, upon written request to and approval of the Department Head, an employee will be given an extension in order to take his/her vacation. In cases where the employee forfeits vacation leave time at the request of the City, upon approval of the Chief Executive Officer or designated representative(s), said employee shall be compensated for forfeited vacation leave time at the employee's current rate of pay. It is the employee's responsibility to schedule vacation time well in advance to avoid forfeiting his/her vacation or to avoid any conflicts.
Business necessity is defined as an urgent operational need requiring the employee’s presence, as determined by the Department Head, Human Resources Manager and City Manager.
Human Resources will send out an email reminder on a semi-annual basis reminding employees to routinely check their vacation balances online to determine if they are at a use or lose status.
In the event a legal holiday falls during a vacation leave, such holiday shall not be charged as vacation leave, and the vacation leave shall be extended or accredited accordingly.
Employees who separate from the service of the City shall be eligible to receive compensation for all unused, accrued vacation leave.
Administrative Leave
Effective the first pay period including July 1, 2017, each employee shall receive a maximum of eighty (80) hours of administrative leave with pay each fiscal year. The use of such leave shall be at the reasonable discretion of the employee.
Unused time at the end of each fiscal year, June 30, will be paid during the following month of July with said time being calculated at their then straight time hourly rate.
Holidays
For employees working a 4/10 plan, the following days shall be observed as holidays:
New Year's Day- January 1st
Marthin Luther King Jr. Day – The third Monday in January President's Day- The third Monday in February
Cesar Chavez Day – Monday closest to March 31st (March 31, 2025, March 30, 2026, March 29, 2027).
Memorial Day- The last Monday in May
Independence Day- July 4th
Labor Day- The first Monday in September
Veteran's Day- November 11th
Thanksgiving Day- The fourth Thursday in November
The Friday following the fourth Thursday in November (5/40 & 9/80 schedules only) Christmas Eve- December 24th Christmas Day- December 25th
If any of the foregoing holidays falls on a Friday and/or Saturday, the holiday will not be observed on the preceding Wednesday or Thursday. If any of the holidays fall on a Sunday, the Monday following is the holiday in lieu thereof.
Floating Holidays
Employees working a 4/10 plan will receive one (1) ten (10) hour day of floating leave, for a total often (10) hours.
Holiday Bank
At the beginning of each calendar year, the City will determine how many of the set holidays fall on a Friday and/or Saturday. An employee will be credited with an equivalent number of hours of holiday time ("holiday bank"). Each affected employee will als o be credited with the above floating holidays. The actual date for the use of such leave shall be subject to the approval of the Chief Executive Officer. This holiday bank leave can be used in hourly increments and combined with other leave. Employees may accumulate up to a maximum of one hundred (100) hours of holiday bank time.
If an employee, because of business necessity, is not able to utilize accrued holiday bank hours, upon written request to, and approval of the Chief Executive Officer, the employee will be paid for any excess hours over his/her maximum holiday bank hours a ccrual. Each January 1, such excess hours will be removed from the employee's holiday bank hours accrual, calculated at their then straight time hourly rate and placed in a holiday hours bank to be paid not later than June 30 of the same year.
If an employee separates employment from the City, and has used holiday bank time prior to the occurrence of the actual holiday, he/she will have his/her vacation bank, administrative leave and/or final paycheck reduced to reflect the excess holiday bank time used.
If an employee separates employment from the City, and has not used any eligible accrued holiday bank time, he/she will be paid for such eligible holiday bank time at his/her straight time rate.
DEFERRED COMPENSATION PLANS
The City’s deferred compensation plans are designed to provide employees with a supplemental retirement savings plan.
457(b) Plan Employee paid through pre-tax payroll deductions, subject to IRS annual limits.
401(a) Plan Effective the first full pay period commencing on or after January 12, 2020, the City will contribute $150.00 per month into a 401(a) City sponsored defined contribution retirement plan.
12 EXHIBIT D
WAIVER AND RELEASE
I, the undersigned, do hereby acknowledge and attest that I have read and understood Section 4.0 of my Employment Agreement with the City of Baldwin Park, and hereby agree that by accepting severance, I agree to waive all rights to further claims, remedies, or legal action against the City its officers and employees.
In exchange for receipt of the Severance Payment, I and my representatives, heirs, successors, and assigns do hereby completely release and forever discharge the City of Baldwin Park and its related entities and their present and former officers, directors, council members, agents, employees, attorneys, and successors (collectively, "Released Parties") from all claims, rights, demands, actions, obligations, liabilities, and causes of action of every kind and character, known or unknown, mature or unmatured, which I may have now or in the future arising from any act or omission or condition occurring on or prior to the date this waiver is signed whether based on tort, contract (express o r implied), or any federal, state, or local law, statute, or regulation (collectively, the "Released Claims"). Released Claims shall also include, but not be limited to, age discrimination claims, claims for wages or other compensation due, severance pay, bonuses, sick leave, vacation pay, life or health insurance, or any other fringe benefit.
Employee knowingly and voluntarily waives any and all rights or benefits that he may now have, or in the future may have, under the terms of Section 1542 of the California Civil Code, which provides as follows:
A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR
DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF
EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE
MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR OR RELEASED PARTY.
[By initialing below, the Employee acknowledges that he or she has read and understands this waiver and voluntarily and knowingly is waiving his right under Section 1542 to pursue unknown or unanticipated claims, rights, demands, action obligations, liabilities and causes of action of any kind.] Initials of Employee___________
Employee shall not file any claim, sue or initiate against any Released Party any compliance review, action, or proceeding, or participate in the same, individually or as a member of a class, under any contract (express or implied), or any federal, state, or local law, statute, or regulation pertaining in any manner to the Released Claims.
12 Approved and Agreed to By:
EMPLOYEE: DATE:
___________________________________ _______________
CITY OF BALDWIN PARK: DATE:
___________________________________ _______________
Chief Executive Officer
CITY OF BALDWIN PARK: DATE:
___________________________________ ________________ City Attorney
ITEM NO: 21.
STAFF REPORT
TO: Honorable Mayor and Members of the City Council
FROM: Manuel Carrillo Jr, Chief Executive Officer
PREPARED BY: Christian L. Bettenhausen, City Attorney
DATE: July 15, 2026
SUBJECT: Adoption of Resolution No. 2026-023 Submitting a Non- Retail Cannabis Business Tax Measure to the Electorate at the November 3, 2026, General Municipal Election and
Requesting Consolidation with Other Elections Held on
November 3, 2026
SUMMARY:
The purpose of this staff report is for the City Council to consider adoption of a resolution submitting the Good Government Cannabis Reform Measure to the voters at the November 3, 2026, General Municipal Election and requesting consolidation of the election with other elections held on November 3, 2026.
RECOMMENDED ACTION:
It is recommended that the City Council:
1. Adopt Resolution No. 2026-023, entitled “A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF BALDWIN PARK, CALIFORNIA, SUBMITTING A NON-RETAIL CANNABIS BUSINESS TAX MEASURE TO THE ELECTORATE AT THE NOVEMBER 3, 2026 GENERAL MUNICIPAL ELECTION; REITERATING ITS REQUEST THAT THE ELECTION BE CONSOLIDATED WITH OTHER ELECTIONS TO BE HELD ON THAT DATE; AND TAKING CERTAIN OTHER RELATED ACTIONS”; and
2. If desired, authorize members of the City Council to file an argument and rebuttal regarding the measure.
FISCAL IMPACT:
If approved by voters, the proposed measure is estimated to generate approximately $1,000,000 annually in additional locally controlled revenue for general municipal purposes. The City would be responsible for applicable election consolidation and administration costs charged by Los Angeles County in connection with placing the measure on the ballot.
BACKGROUND:
The City currently imposes a four percent (4%) gross receipts tax on retail cannabis businesses operating in the City, pursuant to the requirements of Chapter 129 of the Baldwin Park Municipal Code (BPMC).
Non-retail cannabis businesses in the City, including cultivation, manufacturing, distribution, processing, testing, and other related activities, are not currently subject to any kind of uniform business tax. Instead, those businesses have been generally been addressed through individual development agreements between the city and the cannabis business. The current process has led to substantial confusion, inconsistencies and disputes with a number of the non-retail cannabis operators. Therefore, the City Council directed staff to find ways to simplify and better coordinate the taxation of cannabis businesses operating in the City.
DISCUSSION:
As a result of the City Council’s direction, staff has prepared the attached ballot measure to be presented to the voters for consideration. If approved, the proposed Good Government Cannabis Reform Measure would enact a four percent (4%) cannabis business tax on the gross receipts of non-retail cannabis businesses (Non-Retail Tax), which is the same rate currently applied to retail cannabis businesses in the City. The new Non-Retail Tax would apply to all cannabis businesses, except those which are solely involved in cannabis retailing, which would continue to be taxed under the existing retail tax. It is not a tax on on property owners or residents.
The new Non-Retail Tax would generally operate and be administered in parallel and consistent with the provisions of the City’s existing retail cannabis tax. The City Council could adopt future ordinances to change the way the Non-Retail Tax is administered or implemented, and could reduce the tax rate, but could not increase it above four percent (4%) without additional voter approval.
In situations where a businesses is operating under multiple cannabis licenses issued by the California Department of Cannabis Control, the tax would be calculated separately for those activities taking place under each of the non- retail state licenses, and then combined to determine the total tax owed. In situations where goods or services have been provided between two different licenses within the same cannabis business, or in any situation where a transaction is not paid for at arm’s length, the associated gross receipts would be calculated by the City’s tax administrator based on the wholesale fair market value of the goods or services for purposes of determining the non-retail cannabis business tax.
The attached resolution would need to be approved by a 4/5ths vote of the City Council. If approved, the resolution would place the measure before Baldwin Park voters at the November 3, 2026 General Municipal Election, and would be consolidated with other elections held on that same date. The Council’s role is merely to submit the proposed ordinance to the voters. The voters make the final decision whether to adopt (or reject) the ordinance, so there is no need for the City Council to adopt the ordinance itself. If the measure is subsequently approved, staff would prepare the necessary administrative procedures, forms, and guidance to implement the tax and coordinate it with the City’s existing cannabis tax program.
The policy and fiscal vision of the City is to reform current practices so it is fair to all related business types, and to continue to have responsible budgeting and revenue practices in place to best serve the public’s needs. In the City’s spring Community Budget Priorities Survey, residents prioritized safety, cleanliness, and quality of services such as:
• Removing trash, litter and graffiti
• Properly maintaining City streets, infrastructure, parks, and public facilities • Providing youth after-school and employment programs for youth • Fixing streets and potholes
ALTERNATIVES:
The City Council may decline to adopt the resolution, direct staff to revise the proposed ballot measure, or provide other direction regarding the placement of the measure on the ballot.
CEQA REVIEW:
None
LEGAL REVIEW:
The resolution and proposed ordinance have been reviewed and approved as to form by the City Attorney.
ATTACHMENTS:
1. Resolution No. 2026-023, with the proposed non-retail cannabis tax measure/ordinance to be proposed to the voters attached as Exhibit “A” thereto.
2. Exhibit A - Ordinance No 1529 - BP Cannabis Tax
RESOLUTION NO. 2026-023
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
BALDWIN PARK, CALIFORNIA, SUBMITTING A NON-
RETAIL CANNABIS BUSINESS TAX MEASURE TO THE
ELECTORATE AT THE NOVEMBER 3, 2026 GENERAL
MUNICIPAL ELECTION; REITERATING ITS REQUEST THAT
THE ELECTION BE CONSOLIDATED WITH OTHER
ELECTIONS TO BE HELD ON THAT DATE; AND TAKING
CERTAIN OTHER RELATED ACTIONS
WHEREAS, pursuant to Chapter 129 of the Municipal Code the City currently imposes a cannabis retailer tax upon cannabis retailers; and the rate of that tax is 4% of gross receipts; and
WHEREAS, in the interest of good government, in order to provide additional funding for general municipal purposes, and to tax all cannabis businesses at the same rate, the City Council desires to tax non-retail cannabis businesses, such as manufacturers and cultivators, at the same rate as the cannabis retailer tax; and WHEREAS, all proceeds of the tax will be deposited in the City’s general fund, which funds services such as cleaning up trash and graffiti, fixing streets and potholes, crime prevention, 911 emergency response, and providing afterschool and youth employment programs; and
WHEREAS, by its Resolution Nos. 2026-04 and 2026-05 (the “Election Resolutions”), adopted on June 3, 2026, the City Council called a General Municipal Election for November 3, 2026 (the “Election”) and requested the Election be consolidated with the statewide general election held on the same date and administered by the Los Angeles County Registrar-Recorder/County Clerk; and
WHEREAS, at the Election the City Council desires to give the voters the opportunity to vote to approve a 4% cannabis business tax on non-retail cannabis businesses; and WHEREAS, Los Angeles County continues to try to seize County control over available local revenue sources; and
WHEREAS, all money raised by this measure will stay local to help fund essential services such as cleaning up trash and graffiti, fixing streets and potholes, 911 emergency response, and providing afterschool and youth employment programs here in Baldwin Park, and by law can’t be taken by the Federal, State or County governments; and
WHEREAS, the City maintains 119 miles of streets, 221 miles of sidewalks, and 30 acres of parks, and seeks to keep its streets, parks and infrastructure in good condition, safe, and clean; and
WHEREAS, fast emergency response times for 911 calls are critical for saving lives, and funding generated by this measure will help ensure that we have enough law enforcement officers to respond quickly to 911 emergencies.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BALDWIN PARK AS FOLLOWS:
Section 1. Recitals. The City Council hereby finds and determines that the foregoing recitals are correct.
Section 2. Ballot Measure Submitted. The City Council hereby orders, pursuant to Section 9222 of the Elections Code, that the ordinance attached hereto as Exhibit “A” and incorporated herein by reference, be submitted to the voters at the Election. Adoption of the ordinance requires a majority vote of those voting on the matter.
Section 3. Ballot Question. The question submitted by Section 2 of this Resolution shall appear on the ballot as follows:
YES Good Government Cannabis Reform Measure To fund
general city services in Baldwin Park, such as cleaning trash/graffiti, fixing streets/potholes, crime prevention, 911 emergency response, and providing afterschool/ youth
employment programs, shall the measure applying the City of Baldwin Park’s existing 4% cannabis retailing tax rate to non- retail cannabis businesses, providing a projected $1,000,000 annually in additional locally-controlled funding until ended by voters, that can’t be taken by the state, with public
independent audits be adopted?
NO
Section 4. Consolidation. Pursuant Section 10400 et seq. of the Elections Code, the City Council reiterates its request set forth in the Election Resolutions that the Los Angeles County Board of Supervisors consolidate the Election with any other elections held on the same day in the same territory or in the territory that is in part the same.
Section 5. Conduct of Election. Pursuant to Section 10002 of the Elections Code, the City Council reiterates its request that the Los Angeles County Board of Supervisors permit the Registrar-Recorder/County Clerk to render all services specified by Section 10418 of the Elections Code relating to the election, for which services the City agrees to reimburse the County, in accordance with current County pro-rations and allocation procedures. The Board of Supervisors is authorized to canvass the returns of the Election pursuant to Section 10411 of the Elections Code. In all matters, not otherwise specified in this Resolution, the Election shall be held as set forth in the Election Resolution. Notice of the time and place of the Election is hereby given and the City Clerk is authorized, instructed and directed to give further or additional notice of the election as required by law and to take any other actions required for the conduct of the election.
Section 6. Filing with County. The City Clerk shall file a certified copy of this Resolution with the Board of Supervisors and the Registrar-Recorder/County Clerk.
Section 7. Impartial Analysis. The City Attorney shall prepare an impartial analysis of the measure. The analysis shall be included with other ballot materials.
Section 8. Arguments. Any person may prepare an argument for or against the measure not exceeding 300 words in length. Rebuttal arguments shall be permitted as provided by state law. If more than one argument is submitted for or against the measure,
or more than one rebuttal is submitted for or against the measure, for each, the City Clerk shall select the argument/rebuttal to be included with the ballot materials in the manner provided by state law.
Section 9. Effective Date. This Resolution shall be effective upon its adoption.
PASSED, APPROVED and ADOPTED this 15th day of July, 2026
____________________________________
Daniel Damien, 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. 2026-023 was duly adopted by the City Council of the City of Baldwin Park at a regular meeting thereof held on July 15, 2026 and that the same was adopted by the following vote to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
________________________
Chirstopher Saenz
City Clerk
Exhibit “A”
Tax Ordinance
EXHIBIT A
ORDINANCE NO. 1529
AN ORDINANCE OF THE CITY OF BALDWIN PARK, CALIFORNIA
ADDING CHAPTER 129.5 (CANNABIS BUSINESS TAX—NON-
RETAIL) TO TITLE XI OF THE BALDWIN PARK MUNICIPAL CODE
ESTABLISHING A TAX ON CANNABIS WHOLESALE BUSINESS
ACTIVITIES WITHIN THE CITY
THE PEOPLE OF THE CITY OF BALDWIN PARK DO ORDAIN AS FOLLOWS:
SECTION 1. CODE AMENDMENT. Chapter 129.5 is added to Title XI of the Baldwin Park Municipal Code to read as follows:
CHAPTER 129.5
CANNABIS BUSINESS TAX—NON-RETAIL
129.5.010 Authority and Purpose.
129.5.020 Tax Imposed.
129.5.030 Administration.
129.5.040 Personal Cultivation and Use Not Taxed.
129.5.050 Constitutionality, Legality and Apportionment. 127.5.060 Remedies Cumulative.
127.5.070 Definitions.
129.5.010 Authority and Purpose.
A. The purpose of this chapter is to adopt a tax, for revenue purposes, pursuant to Sections 37101 and 37100.5 of the California Government Code, upon cannabis businesses that engage in business in the city. This cannabis business tax is levied based upon business gross receipts. It is not a sales and use tax, a tax upon income, or a tax upon real property.
B. As cannabis retailing activities are already subject to the cannabis retailer tax levied pursuant to Chapter 129 of this code, the tax imposed by this chapter does not apply to retailing activities.
C. Nothing in this chapter shall be interpreted to authorize or permit any business activity that would not otherwise be legal or permissible under laws applicable to the activity at the time the activity is undertaken.
D. The tax imposed by this chapter is a general tax enacted solely for general governmental purposes. All of the proceeds from the tax imposed by this chapter shall be placed in the city’s general fund and be available for any lawful city expenditure.
129.5.020 Tax Imposed.
A. A cannabis business tax is hereby imposed upon each person who is engaged in business in the city as a non-retail cannabis business.
B. The rate of the cannabis business tax is 4% of the non-retail gross receipts of the non-retail cannabis business.
C. An individual who engages in business activities in the city solely as the employee of another person is not themselves subject to the cannabis business tax, so long as their employer has obtained a tax registration certificate in connection with the cannabis business tax.
D. The cannabis business tax is payable regardless of whether the business is operating lawfully in the city or unlawfully. The city’s acceptance of a cannabis business tax payment from a cannabis business that is operating illegally shall not constitute the city’s approval of or consent to such illegal operations.
E. The City Council may, by ordinance, reduce the rate of the cannabis business tax.
129.5.030 Administration.
Except as specifically provided in this chapter:
A. The cannabis business tax shall be administered in the same manner as the cannabis retailer tax and subject to the same deadlines, interest, and penalties.
B. Each person who is subject to the cannabis business tax shall be subject, with respect to their activities that are subject to the cannabis business tax, to all reporting, posting, remittance, registration and other obligations and requirements under Article 129 of this code that are applicable to activities that are subject to the cannabis retailer tax.
C. In the course of its administration of the cannabis business tax the city shall have the same authority to inspect, audit and examine records, equipment and premises, as it does in connection with the administration of the cannabis retailer tax.
D. The tax administrator shall have the authority to issues regulations, administrative interpretations, and rules that are not inconsistent with the provisions of this chapter or any ordinance of the City Council.
E. The cannabis business tax shall be subject to the same provisions for appeals as the cannabis retailer tax.
F. A tax registration certificate or other document issued in connection with the administration of this chapter does not substitute for any permit, license, certificate or other such document required by any other chapter of this code. However, the city may withhold any such permit, license, certificate or other document required by another
chapter if the person applying for such permit, license, certificate or other document has not complied with the requirements of this chapter.
129.5.040 Personal Cultivation and Use Not Taxed.
Nothing in this chapter shall apply to any individual with respect to (i) their cultivation of cannabis solely for their personal use or (ii) their personal use of cannabis. The exemption set forth in this section shall apply only to the extent that the cultivation or use is exempt from state cannabis licensing requirements and the individual received no compensation of any kind from such cultivation or use. This exemption does not apply to any corporation, partnership, or other legal person other than an individual human being.
129.5.050 Constitutionality, Legality and Apportionment.
It is the intent this chapter that any tax imposed pursuant to this chapter comply with the requirements of the constitution and laws of the United States and of California and no tax shall be applied in a manner that is impermissible under such constitutions and laws. To the extent any tax imposed by this chapter would be impermissible under such constitutions or laws unless a business activity (or the gross receipts from such activity) is apportioned between the city and other jurisdictions, such business activity or gross receipts (and the tax thereon) shall be apportioned.
If a person believes that apportionment of the tax is required, the taxpayer must indicate said apportionment on his or her tax return. The Tax Administrator may promulgate administrative procedures for apportionment as he or she finds useful or necessary. If a person believes that the tax, as applied to him or her, is impermissible under applicable law, he or she may request that the Tax Administrator release him or her from the obligation to pay the impermissible portion of the tax.
129.5.060 Remedies Cumulative.
All remedies and penalties prescribed by this chapter or which are available under any other provision of this code and any other provision of law or equity are cumulative. The use of one or more remedies by the city shall not bar the use of any other remedy for the purpose of enforcing the provisions of this chapter. The conviction and punishment of any person for failure to pay the required tax shall not excuse or exempt such person from any civil action for the tax debt unpaid at the time of such conviction. No civil action shall prevent a criminal prosecution for any violation of the provisions of this chapter or of any state law requiring the payment of all taxes. 129.5.070 Definitions.
The following words and phrases shall have the meanings set forth below when used in this chapter:
A. “Business” means all activities engaged in or caused to be engaged in within the
city, including any commercial or industrial enterprise, trade, profession, occupation, vocation, calling, or livelihood, whether or not carried on for gain or profit.
B. “Cannabis” means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. “Cannabis” also means the separated resin, whether crude or purified, obtained from cannabis. “Cannabis” shall not include industrial hemp, unless otherwise specified.
C. “Cannabis business tax” means the tax imposed by section 129.5.020 of this article.
D. “Cannabis product” means raw cannabis that has undergone a process whereby the raw agricultural product has been transformed into a concentrate, an edible product, or a topical product. “Cannabis product” also means cannabis products as defined by Section 11018.1 of the California Health and Safety Code and is not limited to medicinal cannabis products.
E. “Cannabis retailer tax” means the tax imposed by chapter 129 of this municipal code.
F. “Cultivation” means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis and includes, but is not limited to, the operation of a nursery.
G. “Employee” means each and every person engaged in the operation or conduct of any business, whether as owner, member of the owner's family, partner, associate, agent, manager or solicitor, and each and every other person employed or working in such business for a wage, salary, commission, barter or any other form of compensation.
H. “Engaged in business as a non-retail cannabis business” means the commencing, conducting, operating, managing or carrying on of a non-retail cannabis business in the city, whether done as owner, or by means of an officer, agent, manager, employee, or otherwise. A person shall be deemed engaged in business within the City if:
1. Such person or person’s employee maintains a fixed place of business within the City for the benefit or partial benefit of such person;
2. Such person or person’s employee owns or leases real property within the City for business purposes;
3. Such person or person’s employee regularly maintains a stock of tangible personal property in the City for sale in the ordinary course of business;
4. Such person or person’s employee regularly conducts solicitation of business within the City;
5. Such person or person’s employee performs work or renders services in the City.
The foregoing specified activities shall not be a limitation on the meaning of “engaged in business.”
I. “Gross receipts,” except as otherwise specifically provided, means, whether designated as a sales price, royalty, rent, delivery fee, slotting fee, any other fee, commission, dividend, or other designation, the total amount (including all receipts, cash, credits, services and property of any kind or nature) received or payable for goods, wares or merchandise, or for the performance of any act or service of any nature for which a charge is made or credit allowed (whether such service, act or employment is done as part of or in connection with the sale of goods, wares, merchandise or not), without any deduction therefrom on account of the cost of the property sold, the cost of materials used, labor or service costs, interest paid or payable, losses or any other expense whatsoever.
However, the following shall be excluded from Gross Receipts:
1. Cash discounts where allowed and taken on sales;
2. Any tax required by law to be included in or added to the purchase price and collected from the business or purchaser;
3. Such part of the sale price of any property returned by purchasers to the seller as refunded by the seller by way of cash or credit allowances or return of refundable deposits previously included in gross receipts;
4. Receipts derived from the occasional sale of used, obsolete or surplus trade fixtures, machinery or other equipment used by the taxpayer in the regular course of the taxpayer's business;
5. Whenever there are included within the gross receipts amounts which reflect sales for which credit is extended and such amount proved uncollectible in a subsequent year, those amounts may be excluded from the gross receipts in the year they prove to be uncollectible; provided, however, if the whole or portion of such amounts excluded as uncollectible are subsequently collected they shall be included in the amount of gross receipts for the period when they are recovered; and
6. Receipts of refundable deposits, except that such deposits when forfeited and taken into income of the business shall not be excluded.
J. "Non-arm's length transaction" means a transaction that is not a sale entered into in good faith and for valuable consideration reflecting the fair market value in the open market between two informed and willing parties, neither under any compulsion to participate in the
transaction.
K. “Non-retail cannabis business” means any business involving cannabis, including but not limited to cultivating, distributing, manufacturing, transporting, compounding, converting, processing, preparing, storing, packaging, testing, and wholesaling of cannabis, or cannabis products, whether or not carried on for gain or profit. However, where a business consists solely of the retail sales of cannabis, cannabis products, or ancillary products and accessories, and does not include any of the activities specifically enumerated in the first sentence of this subdivision K, such business is not a non-retail cannabis business.
L. “Non-retail gross receipts of a non-retail cannabis business” means the gross receipts of that non-retail cannabis business. However, where the non-retail cannabis business is operating under multiple state licenses (or consists of activities that would require multiple state licenses under California law), gross receipts shall be separately calculated for the activities conducted under each such license. The gross receipts of the non-retail cannabis business shall then be the sum of the gross receipts calculated for each license that is not a retail license.
For purposes of this definition, the gross receipts from any non-arm’s length transaction shall be calculated using a methodology approved by the Tax Administrator at the fair market wholesale value of the goods, wares, merchandise, acts or service that are provided by the business as part of that transaction. Where a business activity conducted under one state license (the “upstream license”) includes providing goods, wares, merchandise, acts or services for use by the cannabis business in a business activity conducted under a different state license (the “downstream license”), the act of providing such goods, wares, merchandise, acts or services for use in connection with the downstream license shall be treated as a non-arm’s length transaction for purpose of calculating the gross receipts of the activities conducted of the upstream license.
M “Person” means an individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit, whether organized as a nonprofit or for-profit entity, and includes the plural as well as the singular number.
N. “State License” means a license issued by the California Department of Cannabis Control.
O. “Tax Administrator” means the chief executive officer of the city or their designee.
SECTION 2. SEVERABILITY. If any section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this ordinance. The people of the City of Baldwin Park hereby declare that they would have passed this ordinance and each section, subsection, sentence, clause and phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, or phrases be declared invalid.
SECTION 3. AMENDMENT. This ordinance, including Chapter 129.5 of the Municipal Code, may be amended by ordinance of the City Council. However, no such amendment may increase the rate of the tax imposed by this ordinance above the rate set forth in Section 1 of this ordinance unless that increase is approved by a vote of the people as required by the California Constitution. For purposes of this section, “increase” has the meaning set forth in Section 53750 of the California Government Code.
SECTION 4. EFFECT ON REGULATIONS. The purpose of this Ordinance is solely to enact a tax upon certain cannabis businesses. Nothing in this Ordinance is intended to allow any cannabis business to operate in a manner or location that is not permitted under the Municipal Code (or under permits lawfully issued by the City or under development agreements entered into by the City). Nothing in this Ordinance is intended to (i) limit the City Council from adopting, by ordinance, rules governing operation or regulation of non-retail cannabis businesses in the City, or the terms under which permits for the operation of such businesses will be issued, limited, or revoked, or (ii) limit the City’s authority to issue, limit or revoke such permits.
SECTION 5. ENVIRONMENTAL COMPLIANCE. This ordinance is exempt from the California Environmental Quality Act, Public Resources Code Sections 21000 et seq. (“CEQA”) and 14 Cal. Code Re. Sections 15000 et seq. (“CEQA Guidelines”). Under CEQA Guidelines Section 15378 (b)(4), the tax imposed by this ordinance is not a project within the meaning of CEQA because it creates a government funding mechanism that does not involve any commitment to any specific project that may result in a potentially significant physical impact on the environment. If revenue generated by the tax is used for a purpose that would have such an effect, the City of Baldwin Park will undertake the required CEQA review for that particular project. Therefore, pursuant to CEQA Guideline Section 15060 CEQA analysis is not required.
SECTION 6. EFFECTIVE DATE. This Ordinance, and the tax imposed by this Ordinance, shall be effective on January 1, 2027.
This Ordinance was approved and adopted by the People of the City of Baldwin Park at the City’s November 3, 2026 Municipal General Election.
____________________________________
Daniel Damian, Mayor
ATTEST:
____________________________
Christopher Saenz, City Clerk
ITEM NO: 22.
STAFF REPORT
TO: Honorable Mayor and Members of the City Council
FROM: Manuel Carrillo Jr, Chief Executive Officer
PREPARED BY: Rose Tam, Finance Director
DATE: July 15, 2026
SUBJECT: American Rescue Plan Act (ARPA) Reallocation and Re- Obligation, and Reallocation of Other Funding Sources for the City Council Chamber Improvements Project
SUMMARY:
American Rescue Plan Act (“ARPA”) funds originally allocated for City Council Chamber Improvements and City Facilities Improvements (“Council Chamber Improvements”) are unlikely to be fully utilized by the December 31, 2026 expense deadline due to staff turnover. Staff have identified opportunities to reallocate ARPA funds for various projects and programs that was previously obligated before the December 31, 2024 obligation deadline. These funds that were previously budgeted for these projects and programs will be reallocated to cover portion of the cost of the Council Chamber Improvements Project.
RECOMMENDED ACTION:
It is recommended that the City Council:
1. Approve the reallocation and re-obligation of ARPA funds from Council Chamber Improvements to the projects and programs herein in the amount of $1,348,612.19; and
2. Approve Addendums under the Attachments section; and
3. Approve the reallocation of the funds in the amount of $2,177,666.88 listed in the table under the Fiscal Impact section to the Council Chamber Improvements Project; and
4. Authorize the Director of Finance to make the appropriation and necessary budget adjustments.
FISCAL IMPACT:
Re-obligate $1,348,612.19 in ARPA funds from the Council Chamber Improvements Project that may not be expended by December 31, 2026, to other eligible projects and programs, and reallocate $2,177,666.88 from the funding sources identified in the table below to the Council Chamber Improvements Project.
BACKGROUND:
The American Rescue Plan Act of 2021 (ARPA) was signed into law on March 11, 2021, providing $350 billion in additional funding for state and local governments to assist in pandemic rescue and recovery efforts. The City of Baldwin Park was allocated and received $22,917,903. All projects funded through the American Rescue Plan Act (ARPA) were fully obligated by the obligation deadline of December 31, 2024. Funds must be expended by December 31, 2026 for most eligible uses. Staff has prepared Interagency Agreements between City Council and each Department to contractually re-obligate ARPA funded projects. The agreements will ensure that the City is in compliance with the federal guidelines allowing it to utilize the remaining ARPA funds through December 31, 2026.
On November 19, 2025, Council had approved the reallocation and re-obligation of several funding sources; General Fund, Measure W, Future Development Fund, and Community Enhancement Fund, originally allocated to Zocalo Park to be revised to ARPA Funds in the amount of $1,349,224 from the Council Chamber Improvements
Project. Additionally, these funds would be committed back towards the Council Chamber Improvements Project at a later date.
On June 17, 2026, Council had approved the reallocation and re-obligation of Measure BP Funds originally allocated to Body & Vehicle Cameras project to be revised to ARPA Funds in the amount of $207,772 from the Council Chamber Improvements Project. Additionally, these funds would be committed back towards the Council Chamber Improvements Project at a later date.
Upon further review of ARPA funding timelines, staff determined that the Council Chamber Improvements Project would not fully utilize its original funding appropriation by the federal expenditure deadline of December 31, 2026. Staff identified opportunities to reallocate ARPA funds to cover eligible expenditures and projected costs for the various projects and programs listed in the table under the Fiscal Impact section.
DISCUSSION:
None
ALTERNATIVES:
CEQA REVIEW:
City Council may direct staff with a desired alternative by suggesting taking from other ARPA projects other than City Council Chambers Improvements.
LEGAL REVIEW:
This report does not require legal review.
ATTACHMENTS:
1. Addendum No. 1 - Inter-Agency Agreement - Administration
2. Addendum No. 1 - Inter-Agency Agreement - Finance
3. Addendum No. 4 - Inter-Agency Agreement - Police Department
4. Addendum No. 2 - Inter-Agency Agreement - Public Works
5. Addendum No. 1 - Inter-Agency Agreement - Recreation and Community Services
ADDENDUM NO. 1
TO THE INTER-AGENCY AGREEMENT
BETWEEN
CITY OF BALDWIN PARK
AND
ADMINISTRATION 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 ADMINISTRATION DEPARTMENT of the City of Baldwin Park (“Department”), is entered into this day of July 15, 2026 (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 the Agreement to memorialize the Department’s responsibilities regarding 2021 American Rescue Plan Act (“ARPA”) funding as described therein;
WHEREAS, the City previously obligated ARPA funding toward projects of the City Council Chambers and Facilities Improvements, the Upgrade Internet Bandwidth , and Agenda Management f.k.a. as “Prime Government”;
WHEREAS, the City has since determined to reallocate and re-obligate ARPA funding from the City Council Chambers and City Facilities Improvements to the following projects through December 31, 2026; an additional $105,706.92 to the Upgrade Internet Bandwidth; and $41,005.99 to the Agenda Management;
WHEREAS, the Parties desire to modify the Scope of Services and associated funding under the Agreement to reflect these changes;
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 Addendum are hereby amended to reflect the following set forth below:
1. The ARPA funding obligated to the Upgrade Internet Bandwidth shall be increased by $105,706.92 for projected costs, resulting in a revised total ARPA obligation for Upgrade Internet Bandwidth of $237,771.75.
2. The ARPA funding obligated to the Agenda Management shall be increased by $41,005.99 for projected costs, resulting in a revised total ARPA obligation for Agenda Management of $181,713.61.
3. The ARPA funding obligated to the City Council Chambers and City Facilities Improvements shall be reduced by a total of $146,712.91 for Department related projects/programs herein.
4. The Department shall continue to comply with all financial and performance requirements, recordkeeping, and reporting obligations as outlined in the Agreement, as modified by this Addendum No. 1.
B. EFFECT ON AGREEMENT
Except as specifically modified by this Addendum No. 1, all other terms, conditions, and provisions of the Agreement shall remain in full force and effect.
C. COUNTERPARTS
This Addendum No. 1 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.
ADMINISTRATION DEPARTMENT
By: __________________________________________
Manuel Carrillo Jr., CEO Date
CITY OF BALDWIN PARK
By: __________________________________________
Daniel Damian, Mayor Date
ATTEST
By: __________________________________________
Christopher Saenz, City Clerk Date
APPROVE AS TO FORM
By: __________________________________________
Christian L. Bettenhausen, City Attorney Date
ADDENDUM NO. 1
TO THE INTER-AGENCY AGREEMENT
BETWEEN
CITY OF BALDWIN PARK
AND
FINANCE 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 FINANCE DEPARTMENT of the City of Baldwin Park (“Department”), is entered into this day of July 15 , 2026 (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 the Agreement to memorialize the Department’s responsibilities regarding 2021 American Rescue Plan Act (“ARPA”) funding as described therein;
WHEREAS, the City previously obligated ARPA funding toward projects of the City Council Chambers and Facilities Improvements, and Administrative Expenditures;
WHEREAS, the City has since determined to reallocate and re-obligate ARPA funding from the City Council Chambers and City Facilities Improvements to Administrative Expenditures an additional $100,714.77 through December 31, 2026;
WHEREAS, the Parties desire to modify the Scope of Services and associated funding under the Agreement to reflect these changes;
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 Addendum are hereby amended to reflect the following set forth below:
1. The ARPA funding obligated to Administrative Expenditures shall be increased by $100,714.77 for projected costs, resulting in a revised total ARPA obligation for Administrative Expenditures of $220,928.80.
2. The ARPA funding obligated to the City Council Chambers and City Facilities Improvements shall be reduced by $100,714.77.
3. The Department shall continue to comply with all financial and performance requirements, recordkeeping, and reporting obligations as outlined in the Agreement, as modified by this Addendum No. 1.
B. EFFECT ON AGREEMENT
Except as specifically modified by this Addendum No. 1, all other terms, conditions, and provisions of the Agreement shall remain in full force and effect.
C. COUNTERPARTS
This Addendum No. 1 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.
FINANCE DEPARTMENT
By: __________________________________________
Rose Tam, Director of Finance Date
CITY OF BALDWIN PARK
By: __________________________________________
Daniel Damian, Mayor Date
ATTEST
By: __________________________________________
Christopher Saenz, City Clerk Date
APPROVE AS TO FORM
By: __________________________________________
Christian L. Bettenhausen, City Attorney Date
ADDENDUM NO. 4
TO THE INTER-AGENCY AGREEMENT
BETWEEN
CITY OF BALDWIN PARK AND POLICE DEPARTMENT
THIS ADDENDUM NO. 4 (“Addendum”) to the Inter-Agency Agreement dated December 4, 2024 (the “Agreement”), and as previously modified by Addendum No. 1 dated July 16, 2025, Addendum No. 2 dated August 20, 2025, and Addendum No. 3 dated November 19, 2025, 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 15, 2026 (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 the Agreement to memorialize the Department’s responsibilities regarding 2021 American Rescue Plan Act (“ARPA”) funding as described therein;
WHEREAS, the City previously obligated ARPA funding toward projects of the City Council Chambers and Facilities Improvements, the Crossing Guard Services, Animal Control f.k.a. “Los Angeles County Animal Control”, and the Body and Vehicle Cameras;
WHEREAS, the City has since determined to reallocate and re-obligate ARPA funding from the City Council Chambers and City Facilities Improvements to the following projects through December 31, 2026; an additional $7,272.00 to the Crossing Guard Services; and $208,771.67 to the Body and Vehicle Cameras.
WHEREAS, the Parties desire to modify the Scope of Services and associated funding under the Agreement to reflect these changes;
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 Addendum are hereby amended to reflect the following set forth below:
1. The ARPA funding obligated to the Crossing Guard Services shall be increased by $7,272.00 for projected costs, resulting in a revised total ARPA obligation for Crossing Guard Services of $640,190.53.
2. The ARPA funding obligated to the Body and Vehicle Cameras shall be increased by $208,771.67 for projected costs, resulting in a revised total ARPA obligation for Body and Vehicle Cameras of $750,399.05.
3. The ARPA funding obligated to the City Council Chambers and City Facilities Improvements shall be reduced by a total of $216,043.67 for Department related projects/programs herein.
4. The Department shall continue to comply with all financial and performance requirements, recordkeeping, and reporting obligations as outlined in the Agreement and Addendum No. 1, Addendum No. 2, and Addendum No. 3, as modified by this Addendum No. 4.
B. EFFECT ON AGREEMENT
Except as specifically modified by this Addendum No. 4, all other terms, conditions, and provisions of the Agreement shall remain in full force and effect.
C. COUNTERPARTS
This Addendum No. 4 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.
POLICE DEPARTMENT
By: __________________________________________
Robert A. Lopez, Chief of Police Date
CITY OF BALDWIN PARK
By: __________________________________________
Daniel Damian, Mayor Date
ATTEST
By: __________________________________________
Christopher Saenz, City Clerk Date
APPROVE AS TO FORM
By: __________________________________________
Christian L. Bettenhausen, City Attorney Date
ADDENDUM NO. 2
TO THE INTER-AGENCY AGREEMENT
BETWEEN
CITY OF BALDWIN PARK AND PUBLIC WORKS DEPARTMENT
THIS ADDENDUM NO. 2 (“Addendum”) to the Inter-Agency Agreement dated December 4, 2024 (the “Agreement”), and as previously modified by Addendum No. 1 dated November 19, 2025, by and between the CITY OF BALDWIN PARK , a California municipal corporation (the “City”) and the PUBLIC WORKS DEPARTMENT of the City of Baldwin Park (“Department”), is entered into this day of July 15, 2026 (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 the Agreement to memorialize the Department’s responsibilities regarding 2021 American Rescue Plan Act (“ARPA”) funding as described therein;
WHEREAS, the City previously obligated ARPA funding toward projects of the City Council Chambers and Facilities Improvements, the “Fleet Vehicles” f.k.a. “Lease vehicles (Patrol, Detective, and Admin”;
WHEREAS, the City has since determined to reallocate and re -obligate ARPA funding from the City Council Chambers and City Facilities Improvements to the Fleet Vehicles an additional $859,983.41 through December 31, 2026;
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 Addendum are hereby amended to reflect the following set forth below:
1. The ARPA funding obligated to the City Council Chambers and City Facilities Improvements shall be reduced by $859,983.41.
2. The ARPA funding obligated to Fleet Vehicles shall increase by $859,983.41, resulting in a revised total ARPA obligation for Fleet Vehicles of $1,503,183.75.
3. The Department shall continue to comply with all financial and performance requirements, recordkeeping, and reporting obligations as outlined in the Agreement, as modified by this Addendum No. 2.
B. EFFECT ON AGREEMENT
Except as specifically modified by this Addendum No. 2, all other terms, conditions, and provisions of the Agreement shall remain in full force and effect.
C. COUNTERPARTS
This Addendum No. 2 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.
PUBLIC WORKS DEPARTMENT
By: __________________________________________
Daniel Padilla, Director of Public Works Date
CITY OF BALDWIN PARK
By: __________________________________________
Daniel Damian, Mayor Date
ATTEST
By: __________________________________________
Christopher Saenz, City Clerk Date
APPROVE AS TO FORM
By: __________________________________________
Christian L. Bettenhausen, City Attorney Date
ADDENDUM NO. 1
TO THE INTER-AGENCY AGREEMENT
BETWEEN
CITY OF BALDWIN PARK
AND
RECREATION & COMMUNITY SERVICES 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 RECREATION & COMMUNITY SERVICES DEPARTMENT of the City of Baldwin Park (“Department”), is entered into this day of July 15, 2026 (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 the Agreement to memorialize the Department’s responsibilities regarding 2021 American Rescue Plan Act (“ARPA”) funding as described therein;
WHEREAS, the City previously obligated ARPA funding toward projects of the City Council Chambers and Facilities Improvements, the Serenity Homes and Esperanza Villa (Operating Portion), and the Morgan Park Restrooms Improvements;
WHEREAS, the City has since determined to reallocate and re-obligate ARPA funding from the City Council Chambers and City Facilities Improvements to the following projects through December 31, 2026; an additional $5,567.43 to the Serenity Homes and Esperanza Villa (Operating Portion) ; and $19,590.00 to the Morgan Park Restrooms Improvements;
WHEREAS, the Parties desire to modify the Scope of Services and associated funding under the Agreement to reflect these changes;
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 Addendum are hereby amended to reflect the following set forth below:
1. The ARPA funding obligated to the Serenity Homes and Esperanza Villa (Operating Portion) shall be increased by $5,567.43 for identified eligible costs , resulting in a revised total ARPA obligation for Serenity Homes and Esperanza Villa (Operating Portion) of $127,483.34.
2. The ARPA funding obligated to the Morgan Park Restrooms Improvements shall be increased by $19,590.00 for projected costs, resulting in a revised total ARPA obligation for Morgan Park Restrooms Improvements of $498,442.78.
3. The ARPA funding obligated to the City Council Chambers and City Facilities Improvements shall be reduced by a total of $25,157.43 for Department related projects/programs herein.
4. The Department shall continue to comply with all financial and performance requirements, recordkeeping, and reporting obligations as outlined in the Agreement, as modified by this Addendum No. 1.
B. EFFECT ON AGREEMENT
Except as specifically modified by this Addendum No. 1, all other terms, conditions, and provisions of the Agreement shall remain in full force and effect.
C. COUNTERPARTS
This Addendum No. 1 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.
RECREATION & COMMUNITY
SERVICES DEPARTMENT
By: __________________________________________
Maria Moreno, Date
Director of Recreation & Community Services
CITY OF BALDWIN PARK
By: __________________________________________
Daniel Damian, Mayor Date
ATTEST
By: __________________________________________
Christopher Saenz, City Clerk Date
APPROVE AS TO FORM
By: __________________________________________
Christian L. Bettenhausen, City Attorney Date
ITEM NO: 23.
STAFF REPORT
TO: Honorable Mayor and Members of the City Council
FROM: Manuel Carrillo Jr, Chief Executive Officer
Rose Tam, Finance Director
PREPARED BY: Daniel Padilla, Director of Public Works, Anthony Vazquez, Public Works Maintenance Manager
DATE: July 15, 2026
SUBJECT: Appropriation of Funding to Buyout City Vehicles Leased through Enterprise Fleet Management, Inc.
SUMMARY:
This report seeks City Council’s approval to buyout select City vehicles currently leased through Enterprise Fleet Management, Inc. and to make the necessary budget appropriations. The City currently leases various fleet vehicles in multiple departments under long-term lease agreements. Several of these vehicles have exceeded their original five (5) year lease term, while others have exceeded the duration of their original funding source or grant allocation.
Staff has evaluated the City’s current fleet leasing program and determined that purchasing certain existing leased vehicles is the most cost-effective and fiscally responsible option. By exercising the vehicle buyout option, the City will avoid continued monthly lease payments, reduce long-term operational costs, and extend the useful life of vehicles that remain in satisfactory operating condition.
Based on staff analysis, the proposed vehicle buyouts are anticipated to generate substantial savings to the City over time while maintaining continuity of fleet operations for essential City services.
RECOMMENDED ACTION:
It is recommended that the City Council:
1. Approve the funding for the purchase and buyout of select City vehicles currently leased through Enterprise Fleet Management, Inc. in an amount not-to-exceed $851,425; and
2. Authorize the Director of Finance to make appropriation and necessary budget adjustments; and
3. Authorize the Mayor and City Clerk to execute all necessary agreements and documents related to the vehicle buyout transactions with Enterprise Fleet Management, Inc., upon finalization; and
4. Authorize the Director of Public Works or his designee to process all necessary documents related to the purchase, transfer, registration, and continued operation of the vehicles.
FISCAL IMPACT:
Staff anticipate that purchasing the vehicles outright will result in significant long-term cost savings by eliminating ongoing monthly lease obligations. In addition to reducing the direct financial costs associated with lease payments, the proposed buyout is expected to reduce administrative and operational expenses, including staff time required to process monthly invoices. Overall, transitioning these vehicles to City ownership will improve operational efficiency while providing greater long-term financial stability and cost control for the City's fleet program.
The total estimated cost of the vehicle buyouts is approximately $851,425 with estimated savings of $148,000.
Funding for the vehicle purchases will be provided from various funding sources, primarily from ARPA funds in the amount of $843,945.23 as shown in the table below.
BACKGROUND:
The City of Baldwin Park currently leases a substantial portion of its municipal fleet through Enterprise Fleet Management, Inc. The leased fleet supports daily operations across multiple departments, including Police, Public Works, Parks & Recreation, Code Enforcement, and Administration.
In 2018, the City implemented a fleet leasing program as part of a broader initiative to modernize and stabilize its aging vehicle inventory. At that time, a significant portion of the City’s fleet had exceeded its recommended useful life, with the average fleet age approaching approximately fifteen (15) years and several vehicles exceeding twenty (20) years in service. The aging fleet resulted in increasing maintenance costs, reduced reliability, and operational inefficiencies that impacted service delivery across departments.
The leasing program allowed the City to rapidly replace outdated and unreliable vehicles while minimizing large upfront capital expenditures and establishing a more predictable fleet replacement cycle. Since implementation of the program, the City has made substantial progress in addressing years of deferred fleet replacement needs and improving the overall condition of its fleet inventory.
As a result of these efforts, the City successfully reduced the average fleet age from approximately fifteen (15) years to approximately eight (8) years. The modernization of the fleet has improved operational reliability, reduced maintenance-related downtime, enhanced employee safety, and provided departments with more dependable equipment to support daily operations and essential public services.
DISCUSSION:
As the City’s fleet condition has improved and replacement needs have become more manageable, staff have evaluated opportunities to transition certain vehicles from leased assets to City-owned vehicles to determine if they are operationally and financially advantageous.
Under the current fleet structure, many vehicles were originally leased with an anticipated replacement cycle of approximately five (5) years. However, several vehicles have remained in service beyond their original lease terms due to operational demands, budget considerations, supply chain disruptions affecting vehicle availability, and the continued satisfactory condition and performance of the vehicles. In addition, certain leased vehicles were originally funded through temporary or limited-term funding sources, including grant funding and one-time federal relief allocations such as the American Rescue Plan Act (ARPA), which are no longer available to support ongoing lease obligations.
To evaluate the feasibility of retaining select leased vehicles, staff conducted a comprehensive review of vehicle condition, maintenance history, operational usage, remaining useful life, and comparative replacement costs.
Based on this assessment, staff determined that several leased vehicles remain in good operational condition, continue to adequately support departmental needs, and are suitable candidates for lease-end purchase through Enterprise Fleet Management. At the same time, staff recognize that portions of the City’s fleet inventory continue to require replacement due to age, utilization, and operational wear.
The proposed vehicle buyouts represent a fiscally responsible approach that allows the City to maximize the remaining useful life of reliable fleet assets while avoiding the significantly higher costs associated with vehicle replacement in the current automotive market. Vehicle acquisition costs have increased substantially in recent years due to inflationary pressures, supply chain constraints, increased manufacturing costs, and limited vehicle
availability. Purchasing select vehicles at the conclusion of their lease terms provides the City with the opportunity to retain dependable equipment at a lower overall cost than entering into new lease agreements or purchasing replacement vehicles outright.
Transitioning these vehicles to City ownership would also eliminate future lease payment obligations associated with those units while allowing departments to continue utilizing operationally functional vehicles without disruption to service levels. This approach provides additional financial flexibility and allows the City to prioritize limited fleet replacement funding toward higher-need vehicles approaching the end of their useful life.
Staff recognize that fleet leasing remains an important fleet management tool and continues to provide operational flexibility for high-mileage and high-utilization vehicles, including police patrol units, graffiti abatement vehicles, and other heavily used operational equipment subject to accelerated wear and replacement cycles. However, given the progress achieved through prior fleet modernization efforts, staff believe the City is now positioned to implement a more balanced and sustainable fleet management strategy that incorporates both selective leasing and direct vehicle ownership.
Moving forward, staff will continue to monitor vehicle conditions, maintenance costs, operational performance, and replacement schedules to ensure the City maintains a safe, reliable, and cost-effective fleet inventory. The proposed vehicle buyouts are consistent with the City’s long-term fleet management objectives and support the responsible stewardship of public resources while maintaining operational efficiency across all departments.
ALTERNATIVES:
The alternatives are as follows:
1. City Council may elect not to approve the appropriation of funding for the vehicle buyouts and direct staff to continue the current leasing arrangements or pursue replacement vehicles; or
2. City Council may provide alternate directions to staff regarding fleet replacement and acquisition strategies.
CEQA REVIEW:
Pursuant to CEQA, a "project" is defined as a "whole action" subject to a public agency's discretionary funding or approval that has the potential to either (1) cause a direct physical change in the environment or (2) cause a reasonably foreseeable indirect physical change in the environment. "Projects" include discretionary activity by a public agency, a private activity that receives any public funding, or activities that involve the public agency's issuance of a discretionary approval and is not statutorily or categorically exempt from CEQA. (Pub. Res. Code§ 21065.) To the extent that matters, it has been determined that the action does not constitute a “project” under CEQA.
LEGAL REVIEW:
This report does not require legal review.
ATTACHMENTS:
1. Lease Vehicles Buyout List - Enterprise Fleet Management Inc.-Final
Make Department Fund Estimated Buyout Cost
Hyundai Admin 231 401.02
Dodge PD 110 38,618.98
Dodge PD 110 35,443.40
Dodge PD 110 38,635.21
Dodge PD 110 36,253.82
Dodge PD 110 39,675.94
Dodge PD 110 37,078.49
Dodge PD 110 35,225.03
Dodge PD 110 35,240.73
Dodge PD 110 36,306.38
Dodge PD 110 37,935.25
Ford PD 110 31,064.35
Ford PD 231 427.46
Ford PD 275 14,242.95
Ford PD 275 14,242.95
Ford PD 275 8,045.36
Ford PD 275 7,402.62
Ford PD 275 8,559.33
Ford PD 275 7,402.62
Ford PD 275 7,965.32
Ford PD 275 7,965.32
Chevrolet PD 275 8,364.06
Chevrolet PD 275 10,506.36
Chevrolet PD 275 8,364.46
Chevrolet PD 275 9,994.80
Chevrolet PD 275 11,464.30
Chevrolet PD 275 11,571.04
Chevrolet PD 275 11,297.87
Chevrolet PD 275 11,382.93
Chevrolet PD 275 13,356.26
Chevrolet PD 275 11,458.58
Chevrolet PD 275 11,571.04
Dodge PD 402 33,424.82
Dodge PD 402 33,752.07
Dodge PD 402 34,446.00
Dodge PD 402 34,039.91
Dodge PD 402 33,096.31
Ford PW 110 39,050.74
Ford PW 220 886.28
Hyundai PW 231 401.05
Hyundai PW 231 401.02
Ford PW 231 1,102.16
Ford PW 246 401.09
Chrysler REC 231 400.99
Chrysler REC 231 400.99
Chrysler REC 231 400.99
Ford REC 231 1,128.28
Ford REC 231 1,128.25
Ford REC 402 39,499.63
851,424.81$
City of Baldwin Park Lease Vehicles Buyout List
Total Estimated Buyout Cost