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Agenda packet

Bell Gardens City Council
June 24, 2024

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Agenda packet
Meeting
June 24, 2024
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Bell Gardens City Council
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Text extracted from the city's file for reading and search. Open the original on portal.laserfiche.com. That file is the official record.

CI TY OF BELL GARDENS

C IT Y C O UNC IL / S UC C E S S O R AG E NC Y T O T HE C O M M UNIT Y

D E V E L O P M E NT C O M M I S S I O N

J O I NT M E E T ING
M O ND AY, J UNE 24, 2024, 6:00 P M

AG E ND A
L O C AT IO N: C I T Y C O UNC I L C HAM B E RS, 7100 G ARF IE L D AV E NUE, B E L L G ARD E NS, C A 90201 T he meeting will be held at B ell Gardens City Hall in the Council Chambers. T he public may attend the meeting in-person or virtually as instructed below. You may view the meeting live on the City's website at https://www.bellgardens.org/i-want-to/watch-city-council-meetings .

AC C E S S IB I L IT Y: I f requested, the agenda and backup materials will be made available in appropriate alternative formats to persons with a disability, as required by S ection 202 of the A mericans with D isabilities A ct of 1990 (42 U.S .C . S ec. 12132), and the f ederal rules and regulations adopted in implementation thereof . Any person who requires a disability-related modif ication or accommodation, in order to observe and/or of f er public comment may request such reasonable modification, accommodation, aid, or service by contacting the City C lerk's of f ice by telephone at 562-806-7704 or via email to CityC [email protected] no later than 72-hours before a regular meeting or 24-hours before a special meeting.

P UB L IC PART IC I PAT I O N: F or Regular Meetings, the public may address the City Council / Agency Members on any item listed on the Regular Meeting A genda and matters which are not listed on the agenda but are within the subject matter jurisdiction of the City C ouncil / S uccessor Agency. Public comments for non-agenda items will be limited to a total of 30 minutes. For S pecial Meetings, the public may only speak on items listed on the agenda. P ublic comments are limited to three (3) minutes per person for each designated public comment period(s). P ublic comments can be made by any of the following ways:

I N-P E RS O N: Members of the public can provide in-person comments at the podium in the Council C hamber. T he Council C hambers will have seating available f or members of the public to attend the meeting in person, subject to capacity limits. Public comments are limited to three (3) minutes for each designated public comment period(s) per speaker, unless a dif f erent time is announced by the presiding chair. S peakers who wish to address the City Council / A gency Members should do so by submitting a "P ublic Comment C ard" prior to the meeting.

B Y T E L E P HO NE: P hone Number: (669)900-9128 Webinar I D : 813 3236 4343# Passcode: 2021# To address the C ity C ouncil press *9 to raise your hand then *6 to unmute yourself when instructed.

V IRT UAL LY L I V E : Members of the public may participate via Z oom by https://zoom.us/join and entering the Z oom Meeting I D: 813 3236 4343 Passcode: 2021
C omments may also be made via the Z oom app by using the "R aise Hand" feature when it is your turn to speak the host will unmute you. C omments will not be accepted in the QandA Chat f unction of the zoom app.

WRIT T E N C O M M E NT S: Public comments may be emailed to Public [email protected] or mailed to: City Clerk's Of f ice, 7100 Garf ield Ave., B ell Gardens, C A 90201. To ensure distribution to the 1 members of the City Council / A gency Members prior to consideration of the agenda, please submit comments no later than one (1) hour prior to the meeting. T hose comments, as well as any comments received after, will be distributed to the members of the C ity C ouncil / S uccessor A gency and will be part of the official public record of this meeting.

F or more information, you may contact the C ity Clerk's of f ice during regular business hours 7:30 a.m. to 6:00 p.m., Monday through T hursday at (562) 806-7704.

P UB L IC HE ARING: P ublic participation will be separately called for the public to provide comments at the time of each public hearing item. S peakers who wish to provide a comment should do so by submitting a "P ublic Comment Card" to the staff liaison, clerk, prior to the designated public comment period.

C AL L T O O RD E R

INV O C AT I O N

P L E D G E O F AL L E G IANC E

RO L L C AL L O F C I T Y C O UNC IL M E M B E RS / S UC C E S S O R AG E NC Y T O T HE C O M M UNI T Y

D E V E L O P M E NT C O M M IS S IO N M E M B E RS
J orgel C havez, C ouncil Member / Agency Member
Maria Pulido, C ouncil Member / Agency Member
F rancis De L eon S anchez, Council Member / A gency Member Marco B arcena, Mayor P ro Tem / Vice Chair
Gabriela Gomez, Mayor / C hair

P RE S E NTAT IO NS
•P RO C L AM AT IO N D E C L ARI NG T HE M O NT H O F J ULY 2024 AS PARK S M AK E L IF E

B E T T E R M O NT H
•P RO C L AM AT IO N I N HO NO R O F J UNE T E E NT H D AY O F O B S E RVANC E

P UB L IC C O M M E NT S O N NO N-AG E ND A I T E M S UND E R T HE S UB J E C T M AT T E R

J URIS D I C T IO N O F T HE C I T Y C O UNC I L / S UC C E S S O R AG E NC Y D uring this time, the members of the public may address the C ity Council / Successor A gency regarding any items within the subject matter jurisdiction of the City Council / S uccessor A gency. Public comments are limited to 3 minutes per person subject to an overall 30-minute period for non-agenda items.

Government C ode S ection 54590 prohibits the City Council / S uccessor A gency from taking action or engaging in discussion on a specific item unless it appears on the agenda.

P UB L IC C O M M E NT S O N AG E ND A I T E M S O NLY D uring this time, the members of the public may address the City Council / A gency Members regarding any items listed on the agenda. P ublic comments are limited to 3 minutes per person.

C I T Y M ANAG E R'S RE P O RT
C O NS E NT C AL E ND AR (Item Nos. 1 - 14)
All matters listed under the Consent Calendar are considered to be routine and can be acted on by one 2 roll call vote. T here will be no separate discussion of these items unless members of the City C ouncil / Successor A gency request specif ic items to be removed f rom the Consent Calendar for separate action.

I tems called f or separate discussion will be heard as the next order of business.

1.G E NE RAL M O T I O N T O WAIV E F UL L RE AD I NG AND AP P RO V E O RD INANC E S B Y T I T L E O NLY P URS UANT T O C AL I F O RNIA G O V E RNM E NT C O D E S E C T I O N 36934 I n order to expedite the conduct of business at City C ouncil meetings, California S tate L aw (California Government C ode Section 36934) allows Ordinances to be read by title if a majority of the legislative body supports the motion to waive the f ull reading.

Recommendation:

I t is staff's recommendation that the C ity C ouncil approve a general motion to waive f ull reading and approve Ordinances by title only pursuant to C alif ornia Government Code Section 36934.

2.AP P RO VAL M INUT E S O F J UNE 10, 2024 C IT Y / S UC C E S S O R AG E NC Y J O I NT

M E E T I NG
A pprove the minutes of the J une 10, 2024 C ity/Successor Agency J oint Meeting.

Recommendation:

I t is staff's recommendation that the City Council approve the minutes of the J une 10, 2024 City/S uccessor A gency J oint Meeting.

3.WARRANT RE G I S T E RS AND WI RE T RANS F E RS
I n approving the action of receiving and f iling the warrant registers, the official minutes of the Bell Gardens City C ouncil should state that each individual member of the City C ouncil is not voting on, inf luencing the outcome of, or participating in approving, accepting, receiving or filing any warrant which bears the name of the same council member, or pays for any costs or expenses, or otherwise benefits the same named council member. Each council member will not be participating, inf luencing or voting on any such warrant bearing their name or which benef its the same named council member, but with that exception is voting in favor of receiving and filing all other warrants contained in this report, unless otherwise noted on the record at the time of the approval of the action required by this report.

Recommendation:

I t is staff's recommendation that the C ity C ouncil receive and f ile the warrant registers, wire transfers, and net payrolls dated 05/28/2024, 05/30/2024, 06/04/2024, and 06/11/2024.

4.WARRANT RE G I S T E R S UC C E S S O R AG E NC Y
I n approving the action of receiving and f iling the warrant registers, the official minutes of the S uccessor A gency should state that each individual member of the S uccessor Agency is not voting on, influencing the outcome of, or participating in approving, accepting, receiving or filing any warrant which bears the name of the same Successor Agency Member, or pays for any costs or expenses, or otherwise benef its the same named Successor Agency Member. E ach S uccessor A gency Member will not be participating, influencing or voting on any such warrant bearing their name or which benefits the same named Successor A gency Member, but with that exception is voting in favor of receiving and f iling all other warrants contained in this report, unless otherwise noted on the record at the time of the approval of the action required by this report.

Recommendation:

I t is staf f 's recommendation that the S uccessor A gency Members receive and f ile the warrant register dated 06/04/2024 and 06/11/2024.

5.S E C O ND RE AD I NG AND AD O P T IO N O F O RD I NANC E NO. 940 T O AUT HO RIZE A 3 D E V E L O P M E NT AG RE E M E NT B Y AND B E T WE E N T HE C IT Y O F B E L L G ARD E NS , M R.

NI C E G UY, L L C AND J K AND S I D E V E L O P M E NT C O M PANY RE L AT I NG T O T HE P RO P E RT Y L O C AT E D AT 6231 E AS T E RN AV E NUE I N T HE C IT Y O F B E L L G ARD E NS S econd reading and adoption of Ordinance No. 940, authorizing the City to enter into, and execute, a development agreement f or a cannabis retail use in exchange f or public benef its.

Recommendation:

I t is staff’s recommendation that the C ity C ouncil waive f ull reading and adopt Ordinance No. 940 to approve the proposed D evelopment A greement (D A) No. 2023-072 f or a cannabis retail storef ront at 6231 Eastern Avenue.

6.S E C O ND RE AD I NG AND AD O P T IO N O F O RD I NANC E NO. 941 T O AUT HO RIZE A

D E V E L O P M E NT AG RE E M E NT B Y AND B E T WE E N T HE C IT Y O F B E L L G ARD E NS,

O T C B E L L G ARD E NS , L L C , AND K IM D AE HO & HY E Y E O NG, RE L AT I NG T O T HE P RO P E RT Y L O C AT E D AT 5605 G AG E AV E NUE I N T HE C IT Y O F B E L L G ARD E NS S econd reading and adoption of Ordinance No. 941, authorizing the City to enter into, and execute, a development agreement f or a cannabis retail use in exchange f or public benef its.

Recommendation:

I t is staff’s recommendation that the C ity C ouncil waive f ull reading and adopt Ordinance No. 941 to approve the proposed D evelopment A greement (D A) No. 2023-067 f or a cannabis retail storef ront at 5605 Gage Avenue.

7.S E C O ND RE AD ING AND AD O P T IO N O F O RD INANC E NO. 944 T O RE G UL AT E AND

C O ND I T I O NAL LY P E RM I T B ANQ UE T FAC I L IT IE S I N IND US T RI AL ZO NE S S econd reading and adoption of Ordinance No. 944, amending Title 5 (Business L icenses, Regulations and Taxes) and Title 9 (Z oning and P lanning R egulations) of the Bell Gardens Municipal Code to regulate and conditionally permit banquet f acilities in I ndustrial Z ones.

Recommendation:

I t is staff’s recommendation that the C ity C ouncil waive f ull reading and adopt Ordinance No. 944 to amend C hapter 5.04 (Def initions) Of Title 5 (B usiness L icenses, R egulations and Taxes); and Chapter 9.14 (I ndustrial Z one), C hapter 9.20 (S pecial Uses and Applicable S tandards) and Chapter 9.38 (P arking and L oading (Off S treet)) of Title 9 (Z oning and P lanning Regulations) of the B ell Gardens Municipal C ode to regulate and conditionally permit banquet f acilities in I ndustrial Z ones.

8.C O NS ID E RAT I O N O F F I RS T AM E ND M E NT T O P RO F E S S I O NAL S E RV IC E S AG RE E M E NT B E T WE E N T HE C IT Y O F B E L L G ARD E NS AND IM PAC T S C I E NC E S, INC .

A n amendment to extend a prof essional services agreement term through December 31, 2024, to allow I mpact S ciences, I nc. to continue to provide the C ity consulting services in the development of a new E nvironmental J ustice Element to the Bell Gardens General Plan.

Recommendation:

I t is staff’s recommendation that the C ity C ouncil:

1. Determine the action exempt from the provisions of the C alif ornia E nvironmental Quality Act (C E Q A) pursuant to S tate C E Q A Guidelines Section 15060(c)(3); and

2. A dopt the attached resolution approving a F irst Amendment to the Prof essional Services A greement between the C ity and I mpact Sciences, I nc. to accommodate alignment with grant funding term used to develop the impending E nvironmental J ustice E lement to the Bell Gardens General P lan.
4 9.AP P RO VAL O F RE IM B URS E M E NT AG RE E M E NT RE NE WAL F O R S HE LT E R B E D S

WI T HI N T HE S ALVAT IO N ARM Y B E L L S HE LT E R
A pprove and authorize the C ity Manager to execute a R eimbursement Agreement Renewal for shelter beds within the S alvation A rmy B ell Shelter with the cities of B ell, Commerce, C udahy, Huntington P ark, Maywood, S outh Gate and Vernon, collectively referred to as the L ocal Coordinating A lliance 1 (L C A1) at an estimated cost of $31,086.25 f or a term beginning J uly 1, 2024 and ending on J une 30, 2025.

Recommendation:

I t is staff's recommendation that the C ity Council approve a Reimbursement Agreement Renewal f or Shelter B eds within the S alvation A rmy B ell Shelter, with the understanding that the final cost will be updated in a final agreement to reflect the actual parties that will be participating in the program and subject to the f inal form approved by the City Attorney and C ity Manager.

10.I NI T I AL AP P RO VAL O F PARK WE S T B IC Y C L E C AS INO S O L AR S HAD E S T RUC T URE

P RO J E C T
P arkwest B icycle C asino located at 888 Bicycle Casino Drive is proposing a $10 million solar shade structure project over a large portion of the current self -parking area. T he self -parking area is owned by the C ity of Bell Gardens and it is leased to Parkwest through the B icycle C asino Master Ground L ease (“Master L ease”). T he Master L ease provides that P arkwest can construct authorized improvements. A ll other improvements not listed, which include the solar shade structure project, can only be constructed with City’s prior written consent. T his staf f report and attached C ity Council R esolution approval will satisfy the initial approval requirements.

Recommendation:

I t is staff's recommendation that the City Council adopt the attached R esolution conceptually approving the Parkwest B icycle C asino solar shade structure project.

11.RE C O M M E ND AT I O N O F AP P RO VAL O F WIRE L E S S C O M M UNIC AT IO NS US E AND

AC C E S S AG RE E M E NT WI T H INT E RAG E NC Y C O M M UNIC AT I O NS

I NT E RO P E RAB IL I T Y S Y S T E M , J PA
T he City Council will consider approving a f ive-year wireless communications use and access agreement between the I nteragency Communications I nteroperability S ystem (I C I ) and the C ity of B ell Gardens. I C I is a regional radio network operated on a UHF band that provides wide-area coverage.

Recommendation:

I t is staff's recommendation that the City C ouncil approve a five-year agreement between the I nteragency C ommunications I nteroperability S ystem (I C I ), a California J oint Powers A uthority, and the C ity of Bell Gardens.

12.RE C O M M E ND AT I O N O F AP P RO VAL O F C O NS T RUC T IO N C O NT RAC T WI T H RE S O URC E E NV I RO NM E NTAL, INC. F O R T HE S O IL RE M E D IAT IO N P RO J E C T AT F O RM E R B E RK O IL S I T E (C I P NO. 3927)
Recommendation of approval of a Construction Contract with R esource E nvironmental, I nc. f or the S oil Remediation Project at F ormer Berk Oil Site (C I P No. 3927).

Recommendation:

I t is staff’s recommendation that the C ity C ouncil:

1. Award a C onstruction Contract to Resource Environmental, I nc. (R E I ) in the amount of $2,289,000.40 f or the S oil Remediation Project at F ormer B erk O il Site; C I P No. 3927, and waive any and all minor irregularities in the bid documents submitted by R E I ; and 5 2. A uthorize the City Manager to execute the agreement and approve change orders that may be necessary during construction to cover any unf oreseen conditions in an amount not to exceed 10% of the construction contract.

13.RE C O M M E ND AT I O N O F AP P RO VAL O F C O NS T RUC T IO N C O NT RAC T WIT H RO Y AL L AN S L URRY S E AL , I NC. F O R T HE S L URRY S E AL IM P RO V E M E NT ZO NE 5 (C IP NO. 3929)
Recommendation of approval of a C onstruction C ontract with R oy A llan Slurry Seal, I nc. f or the S lurry S eal I mprovement Z one 5 (C I P No. 3929).

Recommendation:

I t is staff’s recommendation that the C ity C ouncil:

1. Award a Construction Contract to R oy A llan S lurry S eal, I nc. in the amount of $163,949.88 f or the Slurry Seal I mprovement Z one 5; C I P No. 3929; and

2. A uthorize the City Manager to execute the agreement and approve change orders that may be necessary during construction to cover any unforeseen condition in an amount not to exceed 5% of the construction contract.

14.AD O P T IO N O F RE S O L UT IO N AC C E P T ING F UND I NG F RO M T HE L A84 F O UND AT I O N A dopt a resolution approving a grant agreement with L A 84 Foundation f or a L earn to Swim P rogram.

Recommendation:

I t is staff's recommendation that the C ity Council by motion adopt the attached resolution approving an grant agreement with the L A 84 F oundation.

D I S C US S IO N (Item Nos. 15 - 19)

15.L O C AL C O M M I S S I O NS AP P O I NT M E NT L I S T T he L ocal Commissions Appointments L ist outlines the City of B ell Gardens Commissions and Commissioners. Per the B ell Gardens Municipal Code, City Commissions consist of Bell Gardens residents appointed by each member of the City Council. C ouncil Members may remove commissioners during any regular City Council meeting and may appoint commissioners f ollowing 10 working days after the posting of the vacancy notice.

Recommendation:

I t is staf f 's recommendation that the C ity Council review the C ommissions Appointments L ist and by motion, remove commissioners and/or make appointments to the posted vacancies.

16.S B 1216 T RANS P O RTAT IO N P RO J E C T S: C L AS S I I I B I K E WAY S : P RO HI B IT IO N S enate B ill 1216 (B lakespear) would prohibit, on and af ter J anuary 1, 2025, an agency responsible f or the development or operation of bikeways or highways where bicycle travel is permitted from installing or restriping a Class I I I bikeway or a sharrow on a highway that has a posted speed limit greater than 30 miles per hour. T he City of B ell Gardens has a total of 243 sharrows located on roadways with a posted speed limit above 30 miles per hour.

Recommendation:

I t is staff's recommendation that the C ity C ouncil either:

1. Receive and f ile while staf f tracks the bill; or

2. Direct S taff to prepare a C ouncil resolution to support or oppose S B 1216.

17.RE C O M M E ND AT I O N O F AP P RO VAL O F C O NS T RUC T IO N C O NT RAC T WI T H 6 S T E RND AHL E NT E RP RIS E S, L L C F O R T HE C I T Y WI D E S HARE D B IK E L ANE (S HARRO W) RE-S T RIP ING P RO J E C T (C IP NO. 3934) Recommendation of approval of a Construction C ontract with Sterndahl E nterprises, L L C for the Citywide Shared B ike L ane (Sharrow) Re-S triping P roject (C I P No. 3934).

Recommendation:

I t is staff’s recommendation that the C ity C ouncil:

1. Award a C onstruction C ontract to S terndahl E nterprises, L L C in the amount of $111,640 for the C itywide S hared Bike L ane (S harrow) R e-striping Project; C I P No. 3934;

2. A ppropriate an additional $23,000 of Measure M f unds and $34,790 of T D A Article 3 funds to cover the total estimated project expenditures; and

3. A uthorize the City Manager to execute the agreement and approve change orders that may be necessary during construction to cover any unforeseen condition in an amount not to exceed 5% of the Construction Contract.

18.C O NS ID E RAT I O N O F A RE S O L UT IO N I N S UP P O RT O F T HE J US T IC E F O R RE NT E RS

AC T (A B AL L O T I NI T I AT I V E )
A resolution in support of the J ustice for R enters A ct (a ballot initiative) which seeks to repeal the Costa-Hawkins R ental Housing A ct of 1995, granting local communities the power to regulate annual rent increases and limit rent on various housing types, including for first-time tenants in vacant units.

Recommendation:

I t is recommended that the C ity C ouncil:

1. Receive and f ile; or

2. A dopt the attached R esolution supporting the J ustice f or Renters A ct, A B allot I nitiative.

19.B E L L G ARD E NS C O NNE C T UP D AT E
T he C ity of B ell Gardens has a City app known as Bell Gardens C onnect. Bell Gardens C onnect is available free on the A pple A pp Store and G oogle P lay Store. B ell Gardens allows residents to report issues to C ity Departments by writing a description, submitting photos, and sending a location that is easily pinpointed on a map. A n update on the current downloads and marketing efforts was requested at the J une 10, 2024 City Council meeting.

Recommendation:

I t is staff's recommendation that the C ity C ouncil receive and file the report.

C I T Y C O UNC I L / S UC C E S S O R AG E NC Y M E M B E R C O M M E NT S

AD J O URNM E NT
D aisy Gomez, C ity C lerk
Agenda posted on J une 20, 2024.
7 CIT Y OF BE LL GARDENS

O F F I C E O F T HE C I T Y M ANAG E R

AG E ND A RE P O RT
I tem 1.

T O:Honorable Mayor and C ity C ouncil Members
F RO M : Michael B. O’Kelly, City Manager
B Y:D aisy Gomez, C ity C lerk
S UB J E C T:G E NE RAL M O T I O N T O WAI V E F UL L RE AD ING AND AP P RO V E O RD I NANC E S B Y T IT L E O NLY P URS UANT T O C AL IF O RNI A G O V E RNM E NT C O D E S E C T IO N 36934 D AT E:J une 24, 2024
RE C O M M E ND AT IO N:

I t is staff's recommendation that the C ity Council approve a general motion to waive full reading and approve Ordinances by title only pursuant to California Government C ode S ection 36934.

B AC K G RO UND/D IS C US S I O N:

I n order to expedite the conduct of business at Council meetings, C alif ornia S tate L aw (California Government C ode Section 36934) allows Ordinances to be read by title if a majority of the C ouncil supports the motion waiving the full reading. Most California cities adopt a standard motion at the beginning of each meeting in order to effectuate this waiver.

Since most of the Ordinances introduced and adopted consist of multiple pages of technical language, reading by title only allows the Council to eliminate the communication of redundant inf ormation and attend to other matters during the meetings. Otherwise, the entire Ordinance language will have to be read in full.

C O NC L US I O N:

Allowing ordinances to be read by title only, according to California S tate L aw, will expedite the conduct of business at C ouncil Meetings.

F I S C AL I M PAC T:

No fiscal impact.

AP P RO V E D E L E C T RO NI C AL LY B Y:

Michael B . O'K elly, C ity Manager
S tephanie Vasquez, City Attorney and/or Susie A ltamirano, Assistant City Attorney Manuel Carrillo, Director of F inance and Administrative Services 8 CIT Y OF BE LL GARDENS

O F F I C E O F T HE C I T Y M ANAG E R

AG E ND A RE P O RT
I tem 2.

T O:Honorable Mayor and C ity C ouncil Members
F RO M : Michael B. O’Kelly, E xecutive Director
B Y:D aisy Gomez, C ity C lerk
S UB J E C T:AP P RO VAL M I NUT E S O F J UNE 10, 2024 C I T Y / S UC C E S S O R AG E NC Y J O INT

M E E T ING
D AT E:J une 24, 2024
RE C O M M E ND AT IO N:

I t is staf f 's recommendation that the C ity Council approve the minutes of the J une 10, 2024 C ity/Successor A gency J oint Meeting.

B AC K G RO UND/D IS C US S I O N:

Every Closed Session and City/S uccessor A gency J oint Meetings the C ity Clerk documents the actions made by the Agency Members/C ity C ouncil.

C O NC L US I O N:

I f approved, the minutes of the City/S uccessor A gency J oint Meeting will be archived in the C ity C lerk's Office.

F I S C AL I M PAC T:

No fiscal impact.

AT TAC HM E NT S :

D escription
Exhibit 1 - Minutes of J une 10, 2024 R egular C ity C ouncil.S uccessor A gency J oint Meeting AP P RO V E D E L E C T RO NI C AL LY B Y:

Michael B . O'K elly, C ity Manager
S tephanie Vasquez, City Attorney and/or Susie A ltamirano, Assistant City Attorney Manuel Carrillo, Director of F inance and Administrative Services 9 CI TY OF BELL GARDENS

C IT Y C O UNC IL / S UC C E S S O R AG E NC Y T O T HE C O M M UNIT Y

D E V E L O P M E NT C O M M I S S I O N

J O I NT M E E T ING
M O ND AY, J UNE 10, 2024, 6:00 P M

M I NUT E S
L O C AT IO N: C I T Y C O UNC I L C HAM B E RS, 7100 G ARF IE L D AV E NUE, B E L L G ARD E NS, C A 90201 P UB L IC PART IC I PAT I O N: F or Regular Meetings, the public may address the City Council / Agency Members on any item listed on the Regular Meeting A genda and matters which are not listed on the agenda but are within the subject matter jurisdiction of the City C ouncil / S uccessor Agency. Public comments for non-agenda items will be limited to a total of 30 minutes. For S pecial Meetings, the public may only speak on items listed on the agenda. P ublic comments are limited to three (3) minutes per person for each designated public comment period(s). P ublic comments can be made by any of the following ways:

I N-P E RS O N: Members of the public can provide in-person comments at the podium in the Council C hamber. T he Council C hambers will have seating available f or members of the public to attend the meeting in person, subject to capacity limits. Public comments are limited to three (3) minutes for each designated public comment period(s) per speaker, unless a dif f erent time is announced by the presiding chair. S peakers who wish to address the City Council / A gency Members should do so by submitting a "P ublic Comment C ard" prior to the meeting.

B Y T E L E P HO NE: P hone Number: (669)900-9128 Webinar I D : 813 3236 4343# Passcode: 2021# To address the C ity C ouncil press *9 to raise your hand then *6 to unmute yourself when instructed.

V IRT UAL LY L I V E : Members of the public may participate via Z oom by https://zoom.us/join and entering the Z oom Meeting I D: 813 3236 4343 Passcode: 2021
C omments may also be made via the Z oom app by using the "R aise Hand" feature when it is your turn to speak the host will unmute you. C omments will not be accepted in the QandA Chat f unction of the zoom app.

WRIT T E N C O M M E NT S: Public comments may be emailed to Public [email protected] or mailed to: City Clerk's Of f ice, 7100 Garf ield Ave., B ell Gardens, C A 90201. To ensure distribution to the members of the City Council / A gency Members prior to consideration of the agenda, please submit comments no later than one (1) hour prior to the meeting. T hose comments, as well as any comments received after, will be distributed to the members of the C ity C ouncil / S uccessor A gency and will be part of the official public record of this meeting.

F or more information, you may contact the C ity Clerk's of f ice during regular business hours 7:30 a.m. to 6:00 p.m., Monday through T hursday at (562) 806-7704.

P UB L IC HE ARING: P ublic participation will be separately called for the public to provide comments at the time of each public hearing item. S peakers who wish to provide a comment should do so by submitting a "P ublic Comment Card" to the staff liaison, clerk, prior to the designated public comment period.
10Exhibit 1

C AL L T O O RD E R
T he Council Members of the City of Bell Gardens City Council/S uccessor A gency held a J oint R egular meeting on J une 10, 2024, in the Council Chambers, 7100 G arf ield Avenue, B ell Gardens, C A with Mayor P ro Tem Marco B arcena presiding. Mayor P ro Tem Marco B arcena called the joint meeting to order at 6:14 p.m.

Mayor Gabriela Gomez joined the meeting at 6:22 p.m. Councilmember Maria Pulido joined the meeting remotely at 6:27 p.m. within the calendar year due to just cause circumstances under A B 2449 due to childcare.

INV O C AT I O N
T he invocation was given by P astor R eynaldo L eal.

P L E D G E O F AL L E G IANC E
T he P ledge of A llegiance was led by Police Chief Paul Camacho.

RO L L C AL L O F C I T Y C O UNC IL M E M B E RS / S UC C E S S O R AG E NC Y T O T HE C O M M UNI T Y

D E V E L O P M E NT C O M M IS S IO N M E M B E RS

Present:

J orgel C havez, A gency Member/Council Member
Maria Pulido, A gency Member/Council Member (joined virtually under A B 2449 at 6:27 p.m.) F rancis De L eon S anchez, Agency Member/C ouncil Member Marco B arcena, Vice Chair/Mayor Pro Tem
Gabriela Gomez, Chair/Mayor (joined the meeting at 6:22 p.m.)

Absent:

None

P RE S E NTAT IO NS
•RE C Y C L E D FAS HI O N V ID E O G RAP HE RS AND D E S IG NE RS Mayor P ro Tem Marco B arcena read the certificate of recognition and presented it to Maria E stela Acevedo, Maria de J esus B arcena, R ocio B arcena, C isko 3000, Carolina Hernandez, A lejandra Muñoz, Ana E lena S if uentes Uriostegui; and

Photographers: J oshua F igueroa, C ecilia I zabal, Camilo Beltran, A lexis B arcena, J esse O rozco, and Ernesto R amirez.

T his item was heard after the "Certificate of Recognition - C E RT P rogram" presentation. •C E RT I F IC AT E O F RE C O G NI T I O N - C E RT P RO G RAM C ouncilmember F rancis de L eon Sanchez read the certificate of recognition and presented it to L ucila 11Exhibit 1

Barranco, Martha Carrasco, Areli L . C atalan, Margarita C hairez, J esus C hairez, Maria Davila-Rivas, A lexa Godoy, I tzel Godoy, Lyliana Godoy Madrid, Maria Gonzalez F lores, E saul J imenez, Elva Martinez, Victoria Mirembe, J orge Montoya, S ilvestre Noyola, A na Maria S anchez, Deyanira S aucedo, Silvia Saucedo, Karyme Yanez, and Mayra Yanez. This item was heard after the "CalHome G rant R ecipient Awards" presentation and prior to the "R ecycled F ashion Videographers and Designers" presentation. •C AL HO M E G RANT RE C I P I E NT AWARD S
Mayor P ro Tem Marco Barcena read the certificate of recognition and presented it to the recipients A na Garcia, I liana Teles, and Maria G arcia. T his item was heard prior to the "R ecycled F ashion Videographers and D esigners" presentation.
•P RO C L AM AT IO N RE C O G NIZING L G B T Q+
Mayor Gabriela Gomez read the certif icate of recognition. T his item was heard af ter the "R ecycled F ashion Videographers and Designers" presentation.

P UB L IC HE ARING (Item No. 1)

1.C O NS ID E RAT I O N O F O RD INANC E NO. 944 AM E ND ING T IT L E 5 (B US I NE S S L IC E NS E S , RE G UL AT IO NS AND TAX E S ) AND T IT L E 9 (ZO NING AND P L ANNI NG

RE G UL AT IO NS) O F T HE B E L L G ARD E NS M UNIC IPAL C O D E T O RE G UL AT E

B ANQ UE T FAC IL I T Y US E S
Waive full reading and introduce Ordinance No. 944, by title only, to regulate and conditionally permit banquet facilities in industrial zones.

Recommendation:

I t is staff's recommendation that the C ity C ouncil:

1. F ind proposed Ordinance No. 944 (E xhibit 1) categorically exempt f rom the California E nvironmental Quality Act (C E Q A ); and

2. Waive full reading and introduce Ordinance No. 944 by title only, amending Chapter 5.04 (Def initions) of Title 5 (B usiness L icenses, Regulations and Taxes); and Chapter 9.14 (I ndustrial Z one), Chapter 9.20 (Special Uses and Applicable Standards) and Chapter 9.38 (P arking and L oading (Off Street)) of Title 9 (Z oning and Planning Regulations) of the Bell Gardens Municipal C ode to regulate banquet facility uses.

Mayor Gabriela Gomez opened the public hearing at 6:56 p.m.

P UB L I C C O MME NT

C ity C lerk D aisy Gomez announced that no written comments were received.

Maria Ruiz spoke in opposition to this item.

Mayor Gabriela Gomez closed the public hearing at 7:25 p.m.

A motion was made by Councilmember F rancis de L eon S anchez, seconded by Mayor P ro Tem Marco Barcena to approve staff's recommendation.

T he motion carried 5-0 with the f ollowing votes:

12Exhibit 1

AYE S : Chavez, P ulido, S anchez, B arcena, Gomez NO E S: None
A B S E NT: None
A B S TA I N: None
C O NT I NUE D P UB L I C HE ARI NG (Item Nos. 2 - 3)

2.C O NS ID E RAT I O N O F O RD I NANC E NO. 940 T O AUT HO RIZE A D E V E L O P M E NT AG RE E M E NT B Y AND B E T WE E N T HE C I T Y O F B E L L G ARD E NS , M R. NIC E G UY, L L C

AND J K AND S I D E V E L O P M E NT C O M PANY, RE L AT ING T O T HE P RO P E RT Y L O C AT E D AT 6231 E AS T E RN AV E NUE I N T HE C IT Y O F B E L L G ARD E NS Waive full reading and introduce Ordinance No. 940, by title only, to approve the proposed Development A greement No. 2023-072 for a cannabis retail storef ront at 6231 E astern Avenue.

Recommendation:

I t is staff’s recommendation that the C ity C ouncil waive full reading and introduce Ordinance No. 940, by title only, to approve the proposed D evelopment A greement No. 2023-072 for a cannabis retail storef ront at 6231 E astern Avenue.

Mayor Gabriela Gomez opened the public hearing at 7:26 p.m.

P UB L I C C O MME NT

C ity C lerk D aisy Gomez announced that one (1) written comment was received.

C hase Crichton spoke in support of this item.

R amon Garcia spoke in support of this item.

Sintia Osorio spoke in support of this item.

C arrie Camacho spoke in support of this item.

Sabrina L una spoke in support of this item.

C onrad Gunderson spoke in support of this item.

C elia Garcia spoke in support of this item.

Breanna C abral spoke in support of this item.

R ogelio R odriguez spoke in opposition to this item.

Mayor Gabriela Gomez closed the public hearing at 7:53 p.m.

A motion was made by Mayor Gabriela Gomez, seconded by Mayor Pro Tem Marco Barcena to approve the first reading of Ordinance No. 940 and the proposed D evelopment Agreement No. 2023-072 with an amendment to reduce the gross receipts to 7%.
13Exhibit 1

T he motion carried 4-0-1 with the following votes:

AYE S : P ulido, S anchez, B arcena, Gomez
NO E S: Chavez
A B S E NT: None
A B S TA I N: None

3.C O NS ID E RAT I O N O F O RD I NANC E NO. 941 T O AUT HO RIZE A D E V E L O P M E NT

AG RE E M E NT B Y AND B E T WE E N T HE C I T Y O F B E L L G ARD E NS, O T C B E L L

G ARD E NS, L L C AND K IM D AE HO & HY E Y E O NG RE L AT ING T O T HE P RO P E RT Y L O C AT E D AT 5605 G AG E AV E NUE I N T HE C IT Y O F B E L L G ARD E NS Waive full reading and introduce Ordinance No. 941, by title only, to approve the proposed Development A greement No. 2023-067 for a cannabis retail storef ront at 5605 Gage Avenue.

Recommendation:

I t is staff’s recommendation that the C ity C ouncil waive full reading and introduce Ordinance No. 941, by title only, to approve the proposed D evelopment A greement No. 2023-067 for a cannabis retail storef ront at 5605 Gage Avenue.

Mayor Gabriela Gomez opened the public hearing at 7:57 p.m.

P UB L I C C O MME NT

C ity C lerk D aisy Gomez announced that were no written comments were received.

Matt J ones spoke in support of this item.

Sierra R ayne spoke in support of this time.

W illiam Hundsdorfer spoke in support of this time.

Mayor Gabriela Gomez closed the public hearing at 8:18 p.m.

A motion was made by Mayor Gabriela Gomez, seconded by Mayor Pro Tem Marco Barcena to approve the first reading of Ordinance No. 941 and the proposed D evelopment Agreement No. 2023-067 with an amendment to reduce the gross receipts to 7%.

T he motion carried 4-0-1 with the following votes:

AYE S : P ulido, S anchez, B arcena, Gomez
NO E S: Chavez
A B S E NT: None
A B S TA I N: None

P UB L IC C O M M E NT S O N NO N-AG E ND A I T E M S UND E R T HE S UB J E C T M AT T E R

J URIS D I C T IO N O F T HE C I T Y C O UNC I L / S UC C E S S O R AG E NC Y 14Exhibit 1

Mayor Gabriela Gomez recessed the meeting at 8:19 p.m. and reconvened at 8:33 p.m.

C ity C lerk D aisy Gomez announced that there were no written comments received.

R ogelio R odriguez spoke regarding L G B T Q+.

P UB L IC C O M M E NT S O N AG E ND A I T E M S O NLY C ity C lerk Daisy Gomez announced that there were two (2) written comments received in support of I tem No. 14.

Stephanie Tapa Onate spoke in support of I tem No. 14.

Mary Paz spoke in support of I tem No. 14.

Emma Hernandez spoke in support of I tem No. 14.

C I T Y M ANAG E R'S RE P O RT
C ity Manager Michael O'K elly provided a brief report.

C O NS E NT C AL E ND AR (Item Nos. 4 - 18)
All matters listed under the Consent Calendar are considered to be routine and can be acted on by one roll call vote. T here will be no separate discussion of these items unless members of the City C ouncil / Successor A gency request specif ic items to be removed f rom the Consent Calendar for separate action.

I tems called f or separate discussion will be heard as the next order of business.

A motion was made by C ouncilmember J orgel Chavez, seconded by Councilmember F rancis de L eon Sanchez to approve C onsent Calendar I tem Nos. 4 - 18.

T he motion carried 5-0 with the f ollowing votes:

AYE S : Chavez, P ulido, S anchez, B arcena, Gomez NO E S: None
A B S E NT: None
A B S TA I N: None

4.G E NE RAL M O T I O N T O WAIV E F UL L RE AD I NG AND AP P RO V E O RD INANC E S B Y T I T L E O NLY P URS UANT T O C AL I F O RNIA G O V E RNM E NT C O D E S E C T I O N 36934 I n order to expedite the conduct of business at City C ouncil meetings, California S tate L aw (California Government C ode Section 36934) allows Ordinances to be read by title if a majority of the legislative body supports the motion to waive the f ull reading.

Recommendation:

I t is staff's recommendation that the C ity C ouncil approve a general motion to waive f ull reading and approve Ordinances by title only pursuant to C alif ornia Government Code Section 36934. 15Exhibit 1

5.AP P RO VAL M INUT E S O F M AY 13, 2024 C I T Y / S UC C E S S O R AG E NC Y J O INT M E E T I NG A pprove the minutes of the May 13, 2024 City/S uccessor A gency J oint Meeting.

Recommendation:

I t is staff's recommendation that the C ity Council approve the minutes of the May 13, 2024 City/S uccessor A gency J oint Meeting.

6.WARRANT RE G I S T E RS AND WI RE T RANS F E RS
I n approving the action of receiving and f iling the warrant registers, the official minutes of the Bell Gardens City C ouncil should state that each individual member of the City C ouncil is not voting on, inf luencing the outcome of, or participating in approving, accepting, receiving or filing any warrant which bears the name of the same council member, or pays for any costs or expenses, or otherwise benefits the same named council member. Each council member will not be participating, inf luencing or voting on any such warrant bearing their name or which benef its the same named council member, but with that exception is voting in favor of receiving and filing all other warrants contained in this report, unless otherwise noted on the record at the time of the approval of the action required by this report.

Recommendation:

I t is staff's recommendation that the C ity C ouncil receive and f ile the warrant registers, wire transfers, and net payrolls dated 04/24/2024, 04/30/2024, 05/02/2024, 05/07/2024, 05/09/2024, 05/14/2024, 05/16/2024 and 05/21/2024.

7.WARRANT RE G I S T E R S UC C E S S O R AG E NC Y
I n approving the action of receiving and f iling the warrant registers, the official minutes of the S uccessor A gency should state that each individual member of the S uccessor Agency is not voting on, influencing the outcome of, or participating in approving, accepting, receiving or filing any warrant which bears the name of the same Successor Agency Member, or pays for any costs or expenses, or otherwise benef its the same named Successor Agency Member. E ach S uccessor A gency Member will not be participating, influencing or voting on any such warrant bearing their name or which benefits the same named Successor A gency Member, but with that exception is voting in favor of receiving and f iling all other warrants contained in this report, unless otherwise noted on the record at the time of the approval of the action required by this report.

Recommendation:

I t is staf f 's recommendation that the S uccessor A gency Members receive and f ile the warrant register dated 05/07/2024.

8.M ARC H 2024 T RE AS URE R'S RE P O RT
T he Treasurer's Report is a list of cash, investment portfolio and restricted bond cash held by the City.

Recommendation:

I t is recommended that the City C ouncil receive, approve, and f ile the March 2024 Treasurer's Report.

9.AP RI L 2024 T RE AS URE R'S RE P O RT
T he Treasurer's Report is a list of cash, investment portfolio and restricted bond cash held by the City.
16Exhibit 1

Recommendation:

I t is recommended that the C ity C ouncil receive, approve, and f ile the April 2024 Treasurer's Report.

10.B IE NNIAL RE V I E W O F T HE C IT Y'S C O NF L I C T O F I NT E RE S T C O D E California Government C ode S ection 87306.5 requires that local governments conduct a review of their Conf lict of I nterest C odes every two years. T he C ity's Conf lict of I nterest Code determines which City officials and employee positions must file the Fair P olitical P ractices C ommission S tatement of E conomic I nterest F orm 700.

Recommendation:

I t is staff's recommendation that the C ity Council by motion direct staff to conduct the biennial review of the City's Conf lict of I nterest Code and submit any proposed amendments no later than October 1, 2024, pursuant to Government Code Section 87306.5.

11.C O NS ID E RAT I O N O F A RE S O L UT I O N AP P RO V ING AND AUT HO RIZING A

RE I M B URS E M E NT AG RE E M E NT WIT H T HE L O S ANG E L E S C O UNT Y D E V E L O P M E NT AUT HO RI T Y (L AC D A) F O R T HE C IT Y’S C O NT INUE D PART I C IPAT IO N IN T HE P E RM ANE NT L O C AL HO US I NG AL L O C AT IO N (P L HA) P RO G RAM F O R Y E AR 4 (2024) AL L O C AT IO N T O I M P L E M E NT T HE P RO G RAM D URING F IS C AL Y E AR (F Y) 2024-2025 Resolution approving and authorizing a reimbursement agreement with the L os Angeles County Development Authority (L A C D A ) f or the C ity’s continued participation in the L os Angeles County Development A uthority P ermanent L ocal Housing Allocation (P L HA ) Program. F unds will be utilized to continue the rent subsidy program f or B ell Gardens residents.

Recommendation:

I t is staff's recommendation that the City C ouncil adopt the attached R esolution approving and authorizing a reimbursement agreement with the L os Angeles C ounty Development A uthority (L A C D A ) f or the City’s continued participation in the L os Angeles Urban C ounty P ermanent L ocal Housing A llocation (P L HA ) Program f or Year 4 (2024) to implement the program during F iscal Year (F Y) 2024-2025.

R esolution No. 2024-32 was approved..

12.S E C O ND RE AD I NG AND AD O P T I O N O F O RD I NANC E NO. 939 AM E ND I NG B E L L G ARD E NS M UNIC I PAL C O D E C HAP T E R 5.25 “C ARD C L UB L I C E NS E RE G UL AT I O NS ” O F T I T L E 5 “B US I NE S S L IC E NS E S , RE G UL AT IO NS AND TAX E S ” T O AM E ND G RO S S

RE V E NUE L I C E NS E F E E F O R C ARD C L UB L I C E NS E HO L D E RS S econd reading and adoption of Ordinance No. 939, amending Title 5 (business licenses, regulations and taxes) of the Bell Gardens Municipal C ode to modify the definition and the calculations of the monthly gross revenue license fee f or Card C lub L icense Holders.

Recommendation:

I t is staff's recommendation that the C ity Council waive full reading and adopt Ordinance No. 939 by title only, amending Bell Gardens Municipal C ode Chapter 5.25 “Card C lub L icense Regulations” of Title 5 “B usiness L icenses, R egulations and Taxes” to amend the gross revenue license fee f or card club license holders.

Ordinance No. 393 was adopted.
17Exhibit 1

13.B E T T E R B AG B AN RE S O L UT IO N
P lastic bags remain a significant contributor to C alif ornia's plastic waste and pollution issues, with detrimental impacts on wildlif e, ecosystems, and human health. T he attached Resolution in S upport of A ssembly B ill 2236 (B auer-Kahan) and Senate Bill 1053 (B lakespear) for a Better B ag B an helps in addressing the loopholes that allow grocery stores to sell single-use plastic bags by revising the requirements for reusable bags.

Recommendation:

I t is recommended that the C ity C ouncil adopt the attached Better B ag B an R esolution.

R esolution No. 2024-33 was approved.

14.RE S O L UT IO N D E NO UNC I NG D I G I TAL D I S C RIM INAT IO N T he City of Bell Gardens acknowledges the crucial role of broadband internet access for f ull participation in modern society and the digital discrimination that occurs when internet service providers (I S P s) inequitably deploy high-speed internet and disproportionately limit services to racially or socio-economically marginalized neighborhoods. The C ity denounces digital discrimination and commits to addressing the digital divide to ensure digital equity f or all residents.

Recommendation:

I t is recommended that the C ity C ouncil adopt the attached Resolution Denouncing D igital Discrimination.

R esolution No. 2024-34 was approved.

15.C O NS ID E RAT I O N O F A RE S O L UT IO N AP P RO V ING AM E ND M E NT NO. 2 T O T HE

F UND I NG AG RE E M E NT B E T WE E N T HE C IT Y O F B E L L G ARD E NS AND T HE L O S

ANG E L E S C O UNT Y M E T RO P O L I TAN T RANS P O RTAT I O N AUT HO RIT Y F UND I NG AG RE E M E NT NO. 920000000 F 7120
Consideration of a Resolution approving Amendment No. 2 to the L os A ngeles County Metropolitan Transportation A uthority F unding A greement No. 920000000 F 7120 for the E astern Avenue and F lorence Avenue Regional Surface Transportation I mprovement Project.

Recommendation:

I t is staff's recommendation that the City Council adopt the attached R esolution approving A mendment No. 2 to Funding A greement 920000000F 7120 between the City of Bell G ardens and the L os A ngeles County Metropolitan Transportation Authority f or the Eastern Avenue and F lorence Avenue R egional S urf ace Transportation I mprovement P roject.

R esolution No. 2024-35 was approved.

16.RE C O M M E ND AT I O N O F AP P RO VAL O F P RO F E S S I O NAL S E RV I C E S AG RE E M E NT

WI T H HF &H C O NS ULTANT S, L L C F O R S O L I D WAS T E C O NS ULT I NG S E RV I C E S Consideration of a Resolution to approve a Prof essional Services A greement with HF &H Consultants, L L C f or S olid Waste C onsulting S ervices.

Recommendation:

I t is staff's recommendation that the C ity Council adopt the attached Resolution approving a P rofessional S ervices Agreement with HF &H C onsultants, L L C (HF &H) f or S olid Waste Consulting Services.

R esolution No. 2024-36 was approved.
18Exhibit 1

17.RE C O M M E ND AT I O N O F AP P RO VAL O F C O NS T RUC T I O N C O NT RAC T WI T H S E Q UE L C O NT RAC T O RS, I NC. F O R T HE VARI O US RE S I D E NT IAL S T RE E T I M P RO V E M E NT S F Y 2022-2023 P RO J E C T (C IP NO. 3919)
Recommendation of approval of a Construction Contract with S equel Contractors, I nc. f or the Various Residential S treet I mprovements F Y 2022-2023 project (C I P No. 3919).

Recommendation:

I t is staff's recommendation that the C ity C ouncil:

1. Award a C onstruction Contract to S equel C ontractors, I nc. in the amount of $799,881.90 for the Various R esidential Street I mprovements F Y 2022-2023 Project (C I P No. 3919); and

2. A uthorize the C ity Manager to execute the Construction C ontract and approve change orders that may be necessary during construction to cover any unforeseen condition in an amount not to exceed 10% of the Construction Contract.

18.C O NS ID E RAT I O N O F A RE S O L UT I O N AP P RO V ING AN AG RE E M E NT WI T H AB M

B UIL D ING S O L UT IO NS, L L C F O R T HE P URC HAS E AND I NS TAL L AT I O N O F AN HVAC

UNI T AT T HE P UB L I C WO RK S C O RP O RAT IO N YARD Consideration of a Resolution approving an agreement with A B M Building S olutions, L L C, for the purchase and installation of an HVA C unit at the Public Works C orporation Yard.

Recommendation:

I t is staff's recommendation that the C ity C ouncil by motion:

1. A dopt the attached R esolution approving an agreement with A B M B uilding Solutions, L L C, f or the purchase and installation of a new rooftop HVA C unit a total amount not to exceed $17,913.72; and

2. A uthorize the City Manager to execute the agreement and approve change orders that may be necessary during construction to cover any unforeseen condition in an amount not to exceed 10% of the agreement amount.

R esolution No. 2024-37 was approved.

D I S C US S IO N (Item Nos. 19 - 22)

19.L O C AL C O M M I S S I O NS AP P O I NT M E NT L I S T T he L ocal Commissions Appointments L ist outlines the City of B ell Gardens Commissions and Commissioners. Per the B ell Gardens Municipal Code, City Commissions consist of Bell Gardens residents appointed by each member of the City Council. C ouncil Members may remove commissioners during any regular City Council meeting and may appoint commissioners f ollowing 10 working days after the posting of the vacancy notice.

Recommendation:

I t is staf f 's recommendation that the C ity Council review the C ommissions Appointments L ist and by motion, remove commissioners and/or make appointments to the posted vacancies.

No action was taken.

20.RE S O L UT IO NS C AL L ING F O R NO V E M B E R 5, 2024 G E NE RAL AND S P E C IAL

M UNI C IPAL E L E C T I O NS , RE Q UE S T I NG C O NS O L ID AT I O N S E RV I C E S WI T H L O S

ANG E L E S C O UNT Y, AND AD O P T I NG RE G UL AT I O NS F O R C AND ID AT E S TAT E M E NT S T he City of B ell Gardens is governed by a f ive-member elected City Council. Members of the C ity 19Exhibit 1

Council are elected in November of even-number years and serve staggered four-year terms. On November 5, 2024 there will be a General E lection f or two (2) City Council seats with f our (4) year expiring terms and a Special E lection f or one (1) seat with a two (2) year term.

Recommendation:

I t is staff's recommendation that the C ity C ouncil adopt the f ollowing:

1. A dopt attached Resolution calling for the holding of a General Municipal E lection to be held on Tuesday, November 5, 2024;

2. A dopt attached Resolution calling for the holding of a S pecial Municipal Election to be held on Tuesday, November 5, 2024;

3. A dopt attached Resolution requesting to consolidate a General Municipal E lection with the L os Angeles C ounty B oard of Supervisors;

4. A dopt attached R esolution requesting to consolidate a S pecial Municipal E lection with the L os Angeles C ounty B oard of Supervisors; and

5. A dopt attached R esolution adopting regulations for candidate statements submitted to voters on Tuesday, November 5, 2024, which includes the new optional C andidate Online S tatement.

R esolution Nos. 2024-38, 2024-39, 2024-40, 2024-41, and 2024-42 were approved.

D aisy Gomez, C ity C lerk, provided a presentation.

A motion was made by Mayor P ro Tem Marco Barcena, seconded by C ouncilmember F rancis de L eon Sanchez to approve staf f 's recommendation.

T he motion carried 5-0 with the f ollowing votes:

AYE S : Chavez, P ulido, S anchez, B arcena, Gomez NO E S: None
A B S E NT: None
A B S TA I N: None

21.C O UNC I L M E M B E R M ARIA P UL I D O'S E X C US E D L E AV E O F AB S E NC E Consideration of A pproval of Excused L eave of A bsence f or Council Member Maria P ulido Recommendation:

Grant permission and approve the leave of absence of Bell Gardens City Council Member Maria P ulido.

A motion was made by Councilmember F rancis de L eon Sanchez, seconded by Mayor Gabriela Gomez to approve staff's recommendation.

T he motion carried 4-0-0-1 with the f ollowing votes:

AYE S : Chavez, S anchez, B arcena, Gomez
NO E S: None
A B S E NT: None
A B S TA I N: Pulido
20Exhibit 1

22.AD O P T IO N O F T HE F I S C AL Y E AR 2024-25 O P E RAT I NG AND C AP ITAL I M P RO V E M E NT

B U D G E T S , C O M P E NS AT IO N P L AN, AND E S TAB L IS HING T HE AP P RO P RI AT I O NS

L IM IT
P resented for adoption is the J uly 1, 2024 - J une 30, 2025 Operating and Capital I mprovement B udgets and Compensation P lan; and G A NN Appropriations limit for F Y 2024-2025 pursuant to A rticle X I I I -B of the California State C onstitution.

Recommendation:

I t is staff's recommendation that the C ity C ouncil by motion approve:

1. T he attached R esolution adopting the fiscal year J uly 1, 2024 to J une 30, 2025 (F Y 2024- 2025) Operating and Capital I mprovement B udgets and C ompensation P lan; and

2. T he attached R esolution establishing the G A NN Appropriations limit for F Y 2024-2025 pursuant to Article X I I I -B of the C alif ornia S tate Constitution.

R esolution Nos. 2024-43, 2024-44, and 2024-45 were approved.

Manuel C arrillo, D irector of F inance and A dministrative S ervices, provided a presentation.

A motion was made by Councilmember J orgel C havez, seconded by Councilmember F rancis D e L eon Sanchez to approve staf f 's recommendation.

T he motion carried 5-0 with the f ollowing votes:

AYE S : Chavez, P ulido, S anchez, B arcena, Gomez NO E S: None
A B S E NT: None
A B S TA I N: None

C I T Y C O UNC I L / S UC C E S S O R AG E NC Y M E M B E R C O M M E NT S Members of the Council and Successor Agency made community announcements and comments.

AD J O URNM E NT
Mayor Gabriela Gomez adjourned the meeting at 9:56 p.m.

D aisy Gomez, C ity C lerk
Agenda posted on J une 6, 2024.
21Exhibit 1

CIT Y OF BE LL GARDENS

O F F I C E O F T HE C I T Y M ANAG E R

AG E ND A RE P O RT
I tem 3.

T O:Honorable Mayor and C ity C ouncil Members
F RO M : Michael B. O'Kelly, City Manager
B Y:Manuel C arrillo, D irector of F inance & A dministrative S ervices S UB J E C T:WARRANT RE G IS T E RS AND WIRE T RANS F E RS D AT E:J une 24, 2024
RE C O M M E ND AT IO N:

I t is staf f 's recommendation that the City Council receive and f ile the warrant registers, wire transf ers, and net payrolls dated 05/28/2024, 05/30/2024, 06/04/2024, and 06/11/2024.

B AC K G RO UND/D IS C US S I O N:

T he attached warrant registers, wire transf ers, and net payrolls are f or 05/28/2024, 05/30/2024, 06/04/2024, and 06/11/2024. T he warrant registers, wire transfers, and net payrolls ref lect the financial obligations of the C ity for the above referenced dates.

C O NC L US I O N:

I f the recommendation to the C ity Council is approved, then the warrant registers, wire transfers, and net payrolls dated 05/28/2024, 05/30/2024, 06/04/2024, and 06/11/2024 will be received and filed.

F I S C AL I M PAC T:

Warrant register 05/28/2024 190465-190542 $302,497.68
T otal Ba nk $302,497.68

Wire transfer 05/30/2024 1940-1942 $262,859.32
Warrant register 06/04/2024 190543-190610 $537,620.78
T otal Ba nk $800,480.10
N et payro ll transfer 05/30/2024 $557,786.26
T ota l Voucher $1,358,266.36

Wire transfer 06/06/2024 1943 $393,113.42
Warrant register 06/11/2024 190611-190711 $223,668.49
T otal Ba nk $616,781.91

Grand T ot a l Vouche rs $2,277,545.95

AT TAC HM E NT S :

D escription
E X HI B I T-1 W A R R A NT R E G I S T E R
22 AP P RO V E D E L E C T RO NI C AL LY B Y:

Michael B . O'K elly, C ity Manager
S tephanie Vasquez, City Attorney and/or Susie A ltamirano, Assistant City Attorney Manuel Carrillo, Director of F inance and Administrative Services 23 24Exhibit 1

25Exhibit 1

26Exhibit 1

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36Exhibit 1

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51Exhibit 1

52Exhibit 1

CIT Y OF BE LL GARDENS

O F F I C E O F T HE C I T Y M ANAG E R

AG E ND A RE P O RT
I tem 4.

T O:Honorable Mayor and C ity C ouncil Members
F RO M : Michael B. O'Kelly, City Manager
B Y:Manuel C arrillo, D irector of F inance & A dministrative S ervices S UB J E C T:WARRANT RE G IS T E R S UC C E S S O R AG E NC Y D AT E:J une 24, 2024
RE C O M M E ND AT IO N:

I t is staf f 's recommendation that the S uccessor Agency Members receive and f ile the warrant register dated 06/04/2024 and 06/11/2024.

B AC K G RO UND/D IS C US S I O N:

T he attached warrant register is f or 06/04/24 and 06/11/2024. T he warrant register reflects the obligation of the Successor A gency to the C ommunity D evelopment C ommission (S uccessor A gency) for the above referenced date.

C O NC L US I O N:

I f the recommendation to the Successor Agency Members is approved, then the warrant register dated 06/04/2024 and 06/11/2024 will be received and f iled.

F I S C AL I M PAC T:

Warrant register 06/04/2024 12950 $171.50
Total Voucher $171.50

Warrant register 06/11/2024 12951-12952 $3,825.96 Total Voucher $3,825.96

Grand Total Voucher $3,997.46

AT TAC HM E NT S :

D escription
E X HI B I T-1 W A R R A NT R E G I S T E R
AP P RO V E D E L E C T RO NI C AL LY B Y:

Michael B . O'K elly, C ity Manager
S tephanie Vasquez, City Attorney and/or Susie A ltamirano, Assistant City Attorney 53 Manuel Carrillo, Director of F inance and Administrative Services 54 55Exhibit 1

56Exhibit 1

CIT Y OF BE LL GARDENS

O F F I C E O F T HE C I T Y M ANAG E R

AG E ND A RE P O RT
I tem 5.

T O:Honorable Mayor and C ity C ouncil Members
F RO M : Michael B. O'Kelly, City Manager
B Y:Gustavo R omo, Deputy City Manager / D irector of Community D evelopment S UB J E C T:S E C O ND RE AD ING AND AD O P T IO N O F O RD INANC E NO. 940 T O AUT HO RI ZE A

D E V E L O P M E NT AG RE E M E NT B Y AND B E T WE E N T HE C I T Y O F B E L L G ARD E NS , M R. NIC E G UY, L L C AND J K AND S I D E V E L O P M E NT C O M PANY RE L AT ING T O T HE P RO P E RT Y L O C AT E D AT 6231 E AS T E RN AV E NUE IN T HE C I T Y O F B E L L G ARD E NS D AT E:J une 24, 2024
RE C O M M E ND AT IO N:

I t is staf f ’s recommendation that the City Council waive full reading and adopt Ordinance No. 940 to approve the proposed Development A greement (D A) No. 2023-072 for a cannabis retail storef ront at 6231 E astern Avenue.

B AC K G RO UND/D IS C US S I O N:

On J une 10, 2024, the C ity Council waived the full reading and introduced Ordinance No. 940, by title only, to authorize entering into and execution of D A No. 2023-072. T he C ouncil voted to adopt the ordinance with a revision to the applicable Quarterly Community Benefits schedule f rom ten percent (10%) of gross receipts to seven percent (7%) of gross receipts, by a 4-1 vote.

I f adopted, Ordinance No. 940 would permit a cannabis retail use at 6231 Eastern Avenue f or an initial f ive (5)-year term, subject to an option to extend the term for an additional five (5) years, for a total 10-year term, so long as the operator is in compliance with applicable state and local laws, the development agreement, the conditional use permit, additional city approvals (if any), and the state cannabis licenses, in exchange for annual and quarterly community benef its provided by the cannabis retail use operator.

E NV IRO NM E NTAL RE V IE W: I n accordance with the California E nvironmental Quality A ct (C E Q A) (P ub. Res.

C ode § 21000 et seq.) and C E Q A Guidelines (Cal. Code Regs., tit. 14, § 15000 et seq.), Ordinance No. 941 was determined to be categorically exempt f rom C E Q A pursuant to C E Q A Guidelines S ection 15061(b)(3) (Common Sense E xemption) by the City P lanning Commission on April 17, 2024.

C O NC L US I O N:

I f approved, O rdinance No. 940 would become effective 30 calendar days after approval once the operator provides proof of insurance and submits the initial Annual Community B enef its payment of One Hundred T housand D ollars ($100,000.00). The proposed ordinance would ensure vested development rights in exchange f or community benef its dedicated to revenue for youth programs, housing and homelessness issues, and other discretionary items.

F I S C AL I M PAC T:

Ordinance No. 940 proposes an up-front payment of $100,000 (A nnual Community B enefit) upon the ef f ective date of the D A and renew the contribution annually following the execution of the D A, every J anuary. T he cannabis retail 57 use operator would also be required to make quarterly contributions equal to seven percent (7%) of gross receipts (Quarterly C ommunity Benefit). P ursuant to the D A terms, eighty percent (80%) of these funds would be dedicated to the C ity’s youth and recreational programming and housing programs. T he D A also requires deposits to aid in cost recovery efforts to defray the costs of staf f time spent on the negotiation and preparation of a development agreement and monitoring activities to ensure compliance with the D A, C UP, B G MC, and other applicable laws and regulations.

AT TAC HM E NT S :

D escription
Exhibit 1 - Ordinance No. 940
Exhibit 2 - D A No. 2023-072 Mr. Nice Guy
AP P RO V E D E L E C T RO NI C AL LY B Y:

Michael B . O'K elly, C ity Manager
S tephanie Vasquez, City Attorney and/or Susie A ltamirano, Assistant City Attorney Manuel Carrillo, Director of F inance and Administrative Services 58 ORDINANCE NO. 940

AN ORDINANCE AUTHORIZING THE EXECUTION OF A

DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF
BELL GARDENS, MR. NICE GUY BELL GARDENS, LLC AND JK & SI

DEVELOPMENT COMPANY, LLC, RELATING TO THE PROPERTY
LOCATED AT 6231 EASTERN AVENUE IN THE CITY OF BELL
GARDENS.

WHEREAS, the City of Bell Gardens (City) Planning Commission approved and recommended to the City Council the approval of Development Agreement No. 2023-072 by and between the City and Mr. Nice Guy Bell Gardens, LLC (Operator) and JK & SI Development Company, LLC (Property Owner), which is incorporated herein by reference;
WHEREAS, after due notice, the City Planning Commission and City Council conducted duly noticed public hearings on this matter;
WHEREAS, pursuant to California Government Code Section 65864 et seq. and Resolution No. 2023-043 (Development Agreement Procedures), the City Planning Commission transmitted to the City Council its findings and recommendations through the approval of Resolution #PC 2024-02;
WHEREAS, the findings and determinations in Resolution #PC No. 2024-02 are incorporated herein by reference.

WHEREAS, DA No. 2023-072 is in the public interest and is consistent with the City’s General Plan; and
WHEREAS, the City Council has reviewed and considered DA No. 2023-072 and the findings and recommendations of the City Planning Commission.

NOW, THEREFORE, THE PEOPLE OF THE CITY OF BELL GARDENS DO ORDAIN AS FOLLOWS:

SECTION 1. The above recitals are true and correct and are incorporated in full, herein.

SECTION 2. Pursuant to the Development Agreement Procedures, DA No. 2023- 072:
i. Is consistent with the objectives, policies, general land uses and programs specified in the General Plan;

ii. Promotes the public health, safety, and general welfare;

59Exhibit 1

Ordinance No. 940

2 of 3

iii. Is just, reasonable, fair, and equitable under the circumstances; and

iv. Provides sufficient benefit to the community to justify entering into the agreement.

SECTION 3. The City Council hereby approves DA No. 2023-072 and authorizes the City Attorney to approve as to form and make clarifying changes and further authorizes and directs the Mayor to execute the development agreement in the name of the City of Bell Gardens.

SECTION 4. The City Clerk shall certify the passage and adoption of this Ordinance and shall cause this Ordinance to be published and/or posted as required by law, which shall take full force and effect thirty days from its adoption.

PASSED, APPROVED AND ADOPTED this 24 day of June 2024.

THE CITY OF BELL GARDENS

________________________________
Gabriela Gomez, Mayor

APPROVED AS TO FORM: ATTEST:

________________________________ ________________________________ Stephanie Vasquez Daisy Gomez
City Attorney City Clerk

[Signatures on the following page]
60Exhibit 1

Ordinance No. 940

3 of 3

I, ______________, City Clerk of the City of Bell Gardens, hereby CERTIFY that Ordinance No. ____ was introduced and placed upon its first reading at a regular meeting of the Bell Gardens City Council held on Monday, _____________, 2024, and that thereafter said ordinance was duly adopted at a regular meeting of the Bell Gardens City Council held on Monday, ______________, 2024 and was approved and passed by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

______________________________
Daisy Gomez, City Clerk

61Exhibit 1

1 DEVELOPMENT AGREEMENT NO. 2023-072

BETWEEN

THE CITY OF BELL GARDENS
AND
Mr. Nice Guy Bell Gardens, LLC

RECORDING REQUESTED BY

AND WHEN RECORDED MAIL
TO:

City of Bell Gardens
City Hall
7100 Garfield Ave.

Bell Gardens, California 90201
Attn: Office of the City Attorney

(Space above Line for Use by Recorder)

This document is exempt from the
payment of a recording fee pursuant to
Government Code Section 27383

62Exhibit 2

2 This DEVELOPMENT AGREEMENT (“Agreement”) is dated as of ______________, 2024 by and among the City of Bell Gardens (“City”) and Mr. Nice Guy Bell Gardens, LLC (“Developer”) and JK & SI Development Company, LLC (“Property Owner”). This Agreement shall take effect on the “Effective Date,” as this term is hereafter defined. The City, Developer, and the Property Owner may each be referred to herein individually as a “Party” or collectively as the “Parties.”

RECITALS

WHEREAS, in 1996, the California State Legislature approved Proposition 215, also known as the Compassionate Use Act (“CUA”) (Health and Saf. Code § 11262.5 et seq.) and was intended to enable persons in need of medical marijuana for specified medical purposes, such as cancer, anorexia, AIDS, chronic pain, glaucoma and arthritis, to obtain and use marijuana under limited circumstances and were recommended by a physician. The CUA provides that “nothing in this section shall be construed or supersede legislation prohibiting persons from engaging in conduct that endangers others, or to condone the diversion of marijuana for non-medical purposes”;

WHEREAS, in 2004, the California State Legislature enacted the Medical Marijuana Program Act (Health & Saf. Code § 11362.7 et seq.) (“MMP”), which clarified the scope of the CUA, created a state-approved voluntary medical marijuana identification card program, and authorized cities to adopt and enforce rules and regulations consistent with the MMP. Assembly Bill 2650 (2010) and Assembly Bill 1300 (2011) amended the MMP to expressly recognize the authority of counties and cities to “[a]dopt local ordinances that regulate the location, operation, or establishment of a medical marijuana cooperative or collective” and to civilly and criminally enforce such ordinances;

WHEREAS, on April 25, 2011, this City Council approved a moratorium on the establishment and operation of medical marijuana dispensaries through the adoption of Ordinance No. 840;

WHEREAS, in September 2015, the California State Legislature enacted and Governor Brown signed into law three bills – Assembly Bill 243, Assembly Bill 266, and Senate Bill 643 – which together comprise the Medical Marijuana Regulation and Safety Act (the “MMRSA”). The MMRSA created a comprehensive dual state licensing system for the cultivation, manufacture, retail, sale, transport, distribution, delivery, and testing of medical cannabis;

WHEREAS, on January 25, 2016, the City Council adopted Ordinance No. 873 to prohibit all commercial cannabis activities citywide, including Cannabis Retail Activities;

WHEREAS, in June 2016 the MMRSA was renamed the Medical Cannabis Regulation and Safety Act (the “MCRSA”), under Senate Bill 837, which also made included substantive changes to the applicable state laws, which affect the various state agencies involved in regulating cannabis businesses as well as potential licensees;

WHEREAS, on November 8, 2016, the Control, Regulate, and Tax Adult Use of Marijuana Act (“AUMA”) was approved by California voters as Proposition 64 and became effective on November 9, 2016, pursuant to the California Constitution (Cal. Const., art. II, § 10(a)). Proposition 64 legalized the nonmedical use of cannabis by persons 21 years of age and over, and the personal cultivation of up to six (6) cannabis plants.
63Exhibit 2

3 WHEREAS, AUMA also created a state regulatory and licensing system governing the commercial cultivation, testing, and distribution of nonmedical cannabis, and the manufacturing of nonmedical cannabis products;

WHEREAS, on June 27, 2017, Governor Brown signed the Legislature-approved Senate Bill 94. SB 94 combined elements of the MCRSA and AUMA to establish a streamlined singular regulatory and licensing structure for both medical and nonmedical cannabis activities given that there were discrepancies between the MCRSA and AUMA. The new consolidated provisions under SB 94 are now known as the Medicinal and Adult-Use Cannabis Regulation and Safety Act (“MAUCRSA”) to be governed by the California Bureau of Cannabis Control;

WHEREAS, on September 16, 2017, Governor Brown signed Assembly Bill 133 into law, which provided cleanup and substantive to MAUCRSA, including the removal of the requirement that licensed premises remain “separate and distinct” for each license type;

WHEREAS, MAUCRSA grants local jurisdictions discretion over whether businesses engaged in Commercial Cannabis Activity may operate in a particular jurisdiction and, if authorized, where within such jurisdiction;

WHEREAS, on June 26, 2023, the City Council approved Ordinance No. 934 (i) repeal the prohibition all adult-use Cannabis Activities in the City; and (ii) establish regulations and a discretionary review process for Cannabis Retail Activities, in the M-U (Mixed Use Residential/Commercial, C-S (Commercial Service and Professional), C-3 (Medium Commercial, C-4 (Heavy Commercial, C-M (Commercial-Manufacturing), and M-1 (Light Industrial) Zones;

WHEREAS, Ordinance No. 934 allows persons to engage in permissible Retail Commercial Cannabis Activities upon the City’s approval of a conditional use permit and issuance of a Business Regulatory Permit, for a term of eighteen (18) months unless Developer executes a development agreement with the City;

WHEREAS, Developer seeks to improve, develop, and/or use real property to operate a Cannabis Retail use in the City, in strict accordance with the California Cannabis Laws, the Bell Gardens Municipal Code, and related statutes and regulations, as each may be amended from time to time (the “Project”);
WHEREAS, to strengthen the public planning process, encourage private participation in comprehensive planning, and reduce the economic risk of development, the California Legislature adopted Government Code Section 65864 et seq. (the "Development Agreement Statute"), which authorizes City and an individual with an interest in real property to enter into a development agreement that establishes certain development rights in real property; WHEREAS, consistent with the requirements of the Development Agreement Statute, City adopted Resolution 2023-43 ("Development Agreement Procedures") authorizing the use of and establishing the procedures and requirements for the consideration of development agreements within the City;
WHEREAS, Government Code Section 65865 requires that an applicant for a development agreement hold a legal or equitable interest in the real property that is the subject of the development agreement;
64Exhibit 2

4 WHEREAS, Developer has a leasehold interest in that certain real property located at 6231 Eastern Avenue in the City of Bell Gardens, County of Los Angeles, State of California, Assessor's Parcel Number (“APN”) 6328-003-047 (“Site”), upon which Developer seeks to effectuate the Project;
WHEREAS, the Site is more particularly described in the Legal Description attached hereto as Exhibit “A,” the Site Plan attached hereto as Exhibit “B,” and the Floor Plan attached hereto as Exhibit “C”;
WHEREAS, the Site is located within the Mixed Use Commercial/Residential (M-U) Zone in the City where Cannabis Retail sales may be conditionally permitted; WHEREAS, Developer affirms that it has a leasehold interest in the Site pursuant to a lease with the owner of the Site, (“Property Owner”), for the purpose of carrying out the Project; WHEREAS, the Developer has provided notarized written consent to: (1) all terms of this Agreement, including, but not limited to, Sections 6.1 and 9.6 of this Agreement; and (2) and recordation of this Agreement against the title of the Site. Such written consent agreement is attached hereto as Exhibit “D.”
WHEREAS, Government Code Section 65867.5 and the City Development Agreement Procedures require the Bell Gardens Planning Commission (“Planning Commission”) to conduct a public hearing to review a proposed development agreement; WHEREAS, on ______________, 2024, the Planning Commission, in a duly noticed and conducted public hearing, considered the recommendation of approval of this Agreement to the City Council;
WHEREAS, on ______________, 2024, the Planning Commission recommended City Council approval of this Agreement, which would allow Developer to operate the Project at the Site;
WHEREAS, on ______________, 2024, the Planning Commission also reviewed, considered, and conditionally approved Conditional Use Permit No. 2023-072 pending City Council’s approval of this Agreement;
WHEREAS, on ______________, 2024, pursuant to Government Code Section 65867.5 and the City Development Agreement Procedures, the City Council, following a duly noticed and conducted public hearing, reviewed, considered, and approved Conditional Use Permit No. 2023- 072 and reviewed, considered, and adopted a first reading of Ordinance No. ______________, and, on ______________, 2024, the City Council approved for second reading and adopted Ordinance No. ______________, authorizing the City’s engagement into this Agreement; WHEREAS, this Agreement is entered into pursuant to the Development Agreement Statute and the City’s Development Agreement Procedures; WHEREAS, the City and Developer desire to enter into this Agreement to (i) facilitate the orderly development of the Site; (ii) create a physical environment that is consistent with and complements City's goals and visions; (iii) protect natural resources from adverse impacts; (iv) improve, upgrade, and create additional community facilities and infrastructure, enhance services, and assist in implementing the goals of the General Plan; and (v) reduce the economic risk of development of the Site to both City and Developer; and 65Exhibit 2

5 WHEREAS, the Parties intend through this Agreement to allow Developer to develop and operate the Project in accordance with the terms of this Agreement.

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein and other good and valuable consideration, the receipt and legal sufficiency of which are hereby acknowledged, the Parties do hereby agree as follows:

AGREEMENT
ARTICLE 1

GENERAL PROVISIONS
Section 1.1. Findings. City hereby finds and determines that entering into this Agreement furthers the public health, safety, and general welfare and is consistent with City's General Plan, including all text and maps in the General Plan.

Section 1.2. Recitals. The Recitals above are true and correct and are hereby incorporated into and made a part of this Agreement, in full herein. In the event of any inconsistency between the Recitals and any provision of Article 1 through Article 9 of this Agreement, the particular provision of Article 1 through Article 9 shall prevail.

Section 1.3. Exhibits. The following “Exhibits” are attached hereto and incorporated into this Agreement in their entirety by this reference:

Exhibit “A”: Legal Description
Exhibit “B”: Site Plan
Exhibit “C”: Floor Plan
Exhibit “D” Property Owner Consent
Exhibit “E” Security Plan
Section 1.4. Definitions. In this Agreement, unless the context otherwise requires, the terms below have the following meanings:
a. “Additional Insured(s)” has the meaning set forth in Section 5.1 of this Agreement. b. “Additional City Approvals” means all ministerial and discretionary permits, licenses, or other similar entitlements, including any modifications or amendments thereto that must be secured by the Developer from the City in order to develop the Project on the Site, in addition to the Conditional Use Permit and the Business Regulatory Permit. c. “Agreement” means this Development Agreement and all Exhibits attached hereto. d. “Annual Community Benefits Fees” has the meaning set forth in Section 4.2 of this Agreement.
e. “AUMA” has the meaning as set forth in the Recitals, above. f. "Business Day” means any day except for Saturday, Sunday, any holiday that is observed by the City, or day that the City is not closed for business. 66Exhibit 2

6 g. “Business Regulatory Permit” means the business regulatory permit, as required in Bell Gardens Municipal Code Chapter 5.12 required for Cannabis Retail Activity issued by the Chief of Police, which can only be issued upon City approval of a Conditional Use Permit, State Cannabis License, and Additional City Approvals for each proposed Cannabis Retail Activity project;
h. “California Building Standards Codes" means the California Building, Mechanical, Plumbing, Electrical, Fire or other similar codes set forth in Title 24 of the California Code of Regulations, as may be adopted by the City, with amendments, and set forth in the Bell Gardens Municipal Code.
i. “California Cannabis Laws” means AUMA, MAUCRSA, CUA, MMP, and the regulations adopted and promulgated by the State Licensing Authorities pursuant to such laws, as such laws and regulations may be amended from time to time. j. “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" does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. For the purpose of this division, "cannabis" does not mean "industrial hemp" as defined by Section 11018.5 of the Health and Safety Code. Cannabis and the term "marijuana" may be used interchangeably.
k. “Cannabis Cultivation” means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis. Cannabis cultivation, as defined herein, does not include the personal cultivation at a private residence of up to six (6) plants as authorized under state law for personal use.
l. “Cannabis Distribution” means the procurement, sale, and transport of cannabis and/or cannabis products between those persons with requisite state and local government licenses to conduct permissible Commercial Cannabis Activities.
m. “Cannabis Manufacturing” means the compounding, blending, extracting, infusing, packaging, label or otherwise making or preparing a cannabis product. n. “Cannabis Product” means cannabis and such products that are intended for use on, or consumption by, an animal. Cannabis products are not considered food as defined in Health and Safety Code Section 109935, a drug as defined in Health and Safety Code Section 109925, or a cosmetic as defined in Health and Safety Code Section 109900. o. “Cannabis Retail Activities” means the retail sale and delivery of cannabis or cannabis products to customers. Delivery of cannabis and cannabis products shall also include the use of a technology platform by a cannabis retailer to conduct the commercial transfer of cannabis and cannabis products.
p. “CEQA” means the California Environmental Quality Act, as set forth in Division 13 (Commencing with Section 21000) of the California Public Resources Code, and the CEQA 67Exhibit 2

7 Guidelines as set forth in Title 14 (Commencing with Section 15000) of the California Code of Regulations.
q. “City” means the City of Bell Gardens, a municipal corporation and general law city. r. “City Council” means the City of Bell Gardens City Council. s. “City Development Agreement Procedures” has the meaning set forth in the Recitals, above.
t. “City Manager” means the City Manager of the City of Bell Gardens, or his or her designee(s).
u. “Community Benefits” has the meaning set forth in Section 4.1 of this Agreement. v. “Community Benefits Fund” has the meaning set forth in Section 4.2(c) of this Agreement.
w. “Complaining Party” has the meaning set forth in Section 8.2 of this Agreement. x. “Conditional Use Permit” means a Conditional Use Permit No. 2023-072 issued by the City to Developer pertaining to Developer’s development of the Project, pursuant to Bell Gardens Municipal Code Chapter 9.20 (Special Uses and Applicable Standards) and Section 9.20.160 (Cannabis Retail-Conditional Use). In the event that the Conditional Use Permit may not have been issued to the Developer as of the Effective Date, the City hereby reserves its discretion under the police power to approve, conditionally approve, or deny the issuance of the Conditional Use Permit.
y. “Cost Recovery Fees” has the meaning set forth in Section 4.3 of this Agreement. z. “CUA” has the meaning set forth in the Recitals, above. aa. “Days” shall mean calendar days unless otherwise noted. If a calendar day falls on Saturday, Sunday, holiday observed by the City or day in which the City is otherwise closed for City business, the final day shall be the next Business Day. bb. “Defaulting Party” has the meaning set forth in Section 8.2 of this Agreement. cc. “Developer” means Mr. Nice Guy Bell Gardens, LLC., which shall reflect the owner or owners listed on the application for Business Regulatory Permit, or any transferee who has been assigned the rights, title, duties, obligations and interests of this Agreement pursuant to Section

9.1. dd. “Development Agreement Statute” has the meaning set forth in the Recitals, above. ee. “Development Agreement Procedures” has the same meaning as set forth in the Recitals, above.
ff. “Effective Date” has the meaning set forth in Section 1.7 of this Agreement. gg. “Exhibits” has the meaning set forth in Section 1.3 of this Agreement. 68Exhibit 2

8 hh. “Gross Receipts” means total revenue received or receivable by the Developer or other occupant on the Site from any Commercial Cannabis Activity on the Site or from operation of the Project on the Site, including: all sales; the total amount of compensation received or receivable for the performance of any act or service, of whatever nature it may be, for which a charge is made or credit whether or not such act or service is done as part of or in connection with the sale of materials, goods, wares, or merchandise; and gains realized from trading in stocks or bonds, interest discounts, rents, royalties, fees, commissions, dividends, or other remunerations, however designated. Included in "gross receipts" shall be all receipts, cash, credits, and property of any kind or nature, 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, or losses or other expenses whatsoever, except that the following shall be excluded therefrom:

1. Cash discounts allowed and taken on Commercial Cannabis Activity sale;

2. Credit allowed on property accepted as part of the purchase price on Commercial Cannabis Activity and which property may later be sold, at which time the payment of the credit balance on such property shall be included as "gross receipts";

3. Any tax required by law to be included in or added to the purchase price at time of sale or disposition of any Cannabis or Cannabis Product associated with a Commercial Cannabis Activity and collected from the consumer or purchaser;

4. Such part of the sale price of property returned by purchasers in any Cannabis Retail Activity upon rescission of a contract of sale as is refunded either in cash or by credit;

5. Receipts of refundable deposits in any Cannabis Retail Activity, except that such deposits when forfeited and taken into income of the business shall not be excluded.

The intent of this definition is to ensure that in calculating the payments required under Article 4 of this Agreement, all sales related to Cannabis Retail Activity or any other Cannabis and Cannabis Products at the Site or through the Project are captured as Gross Receipts. This definition shall therefore be given the broadest possible interpretation consistent with this intent. ii. “Project” has the meaning as set forth in the Recitals, above. jj. “Property Owner” has the meaning as set forth in introductory paragraph to this Agreement, above.
kk. “Marijuana” has the same meaning as Cannabis as defined above, and those terms may be used interchangeably.
ll. “MAUCRSA” means the Medicinal and Adult-Use Cannabis Regulation and Safety Act, (Bus. and Prof. Code § 26000 et seq.), as may be amended from time to time, and as additionally set forth in the Recitals, above.
mm. “MCRSA” has the meaning set forth in the Recitals, above. nn. “Mortgage” has the meaning set forth in Section 6.1 of this Agreement. oo. “Non-Payment Penalty” has the meaning set forth in Section 4.8 of this Agreement. 69Exhibit 2

9 pp. “Notice of Non-Payment Penalty” has the meaning set forth in Section 4.7 of this Agreement.
qq. “Planning Commission” means the City of Bell Gardens Planning Commission as described in Bell Gardens Municipal Code Chapter 2.24.
rr. “Project” has the meaning set forth in the Recitals, above. ss. “Quarterly Report” has the meaning set forth in Section 4.6 of this Agreement. tt. “Site” has the meaning as set forth in the Recitals, above. uu. “Site Plan” means site plan that satisfies the requirements set forth in Bell Gardens Municipal Code Section 9.50.020; floor plans; and elevations, inclusive of proposed signage and façade improvements.
vv. “State Cannabis License(s)” means license(s) to conduct Cannabis Retail Activities issued by a State Licensing Authority to Developer for the Development of the Project on the Site. ww. “State Licensing Authority” means the state agency responsible for the issuance, renewal, or reinstatement of State Cannabis Licenses, or the state agency authorized to take disciplinary action against a business licensed under the California Cannabis Laws. xx. “Term” has the meaning set forth in Section 1.8 of this Agreement.

Section 1.5. Project is a Private Undertaking. The Parties agree that the Project is a private development and that City has no interest therein, except as authorized in the exercise of its governmental functions. City shall not for any purpose be considered an agent of Developer or the Project.

Section 1.6. Applicability of the Agreement. This Agreement does not: (1) grant height, density, intensity or grant uses of that than is otherwise established in the Bell Gardens Municipal Code and Conditional Use Permit; (2) eliminate the need for Additional City Approvals relating to the Project submitted by Developer after the Effective Date of this Agreement; (3) guarantee that Developer will receive any profits from the Project; (4) prohibit the Project’s participation in any benefit assessment district that may be generally applicable to surrounding properties; (5) amend the City’s General Plan; or (6) amend the Bell Gardens Municipal Code.

Section 1.7. Effective Date of Agreement. This Agreement shall become effective (the “Effective Date”) upon the date when all of the following conditions have been satisfied: (i) Thirty (30) days have elapsed since the City ordinance authorizing this Agreement is approved in accordance with state law; (ii) this Agreement has been fully executed by all Parties; and (iii) the evidence of insurance coverage in favor of the City has been provided to the City as set forth in Article 5 of this Agreement.

Section 1.8. Term.
a. The term of this Agreement (the “Term”) shall be five (5) years commencing from the Effective Date.
b. This Agreement may be extended upon the conclusion of such initial five-year period for a up to one (1) five-year extension term, not to exceed a total of ten (10) years, inclusive 70Exhibit 2

10 of the initial five-year term. Any extension shall be at the sole and absolute discretion of the City, provided that the Developer submits written notice of its desire to so extend this Agreement no less than one hundred eighty days (180) days before the expiration of the initial five-year period or any following five-year extension term. The City Manager shall approve the extension in writing no later than ninety (90) days prior to the expiration of the initial five-year period subject to the following conditions: The Term of this Agreement may only be extended if Developer is in compliance with the terms and conditions of California Cannabis Laws, this Agreement, the Conditional Use Permit, Additional City Approvals if any, the Business Regulatory Permit, the Bell Gardens Municipal Code, and State Cannabis License(s) and related rules and regulations at the time the written notice is submitted. Under no circumstances will the City extend the Term of this Agreement if the Developer has been issued written notice of default pursuant to Section 8.2 that has not yet been cured. The City Manager may, in its sole and absolute discretion, approve a term extension of less than five (5) years so long as the total number of years, inclusive of the initial five-year terms and extensions, does not exceed a total of ten (10) years.
c. Nothing in this Section 1.8 shall prohibit or otherwise restrict the termination of this Agreement in accordance with Section 1.9.

Section 1.9. Termination. This Agreement shall terminate upon the occurrence of any of the following events:
a. the expiration of the Term;
b. the Developer no longer has a possessory, legal or other equitable interest in the Site; c. the Developer has ceased all operations related to the Project on the Site for more than sixty (60) consecutive days;
d. mutual written consent of the Parties;
e. abandonment of Developer’s Conditional Use Permit applicable to the Project, or the failure of the Developer to commence operation of the Project on the Site within twelve (12) months following the issuance of a building permit, certificate of occupancy, temporary certificate of occupancy or similar document pursuant to Bell Gardens Municipal Code Section 5.64.040(K);
f. revocation of Developer’s Conditional Use Permit pursuant to Bell Gardens Municipal Code Section 9.62.010;
g. revocation of Developer’s Business Regulatory Permit for the Project, pursuant to Bell Gardens Municipal Code Sections 5.64.050 and 5.12.100, if not appealed by the Developer;
h. City Council upholding of the revocation of Developer’s Business Regulatory Permit for the Project, if an initial revocation finding by the Chief of Police is appealed to the City Council by Developer;
i. unauthorized assignment of interest of the Developer in the Project or in the Site pursuant to Section 9.1 of this Agreement;
71Exhibit 2

11 j. as set forth in Sections 8.5 and 8.6 of this Agreement; k. upon the occurrence of the entry of a final judgment or issuance of an order of a court with jurisdiction which such judgment or order directs the City to cancel this Agreement, after all appeals have been exhausted, as a result of any lawsuit filed against City to set aside, withdraw or abrogate the approval of the City Council of this Agreement, whereupon such termination, the Parties shall be mutually released from any further liability except as provided in Section 1.12, below.

Section 1.10. Amendment of Agreement. This Agreement shall be amended only by mutual consent of the Parties. All amendments shall be in writing and adopted by ordinance pursuant to the same requirement set forth in the Development Agreement Statute.

Section 1.11. Fees. Developer and Property Owner shall be jointly and severally liable for the payment to the City of all Cost Recovery Fees, Community Benefits, penalties and interest, and any other applicable fees when due, including but not limited to development impact fees, payable to the City related to Developer’s development and operation of the Project on the Site, and the fees referenced in Article 4 of this Agreement.

Section 1.12. Survival of Certain Terms. The rights and obligations of the Parties which arise under Sections 1.11, 5.4, 5.5, 5.6, 5.7, 9.2, 9.3, 9.4, and 9.6 of this Agreement and any right or obligation of the Parties in this Agreement, which, by its express terms or nature and context is intended to survive termination of this Agreement, will survive any such termination. 72Exhibit 2

12 ARTICLE 2

DEVELOPMENT OF THE PROPERTY
Section 2.1. Right to Develop. During the Term of this Agreement, Developer shall have the right to develop the Project on the Site, consistent with terms and conditions of California Cannabis Laws, this Agreement, the Conditional Use Permit, Additional City Approvals if any, the Business Regulatory Permit, the Bell Gardens Municipal Code, and State Cannabis License(s).

Section 2.2. Permitted Uses and Operational Requirements. During the Term, Developer shall be permitted to develop, construct, and use the Site to carry out the Project, including for Cannabis Retail Activities, consistent with California Cannabis Laws, this Agreement, the Conditional Use Permit, Additional City Approvals, the Business Regulatory Permit, the Bell Gardens Municipal Code, and State Cannabis Licenses. Other commercial cannabis activities, including but not limited to Cannabis Cultivation, Cannabis Manufacturing, Cannabis Testing, and Cannabis Distribution are strictly prohibited. Further, subject to any limitations or prohibitions under state law, Developer shall reimburse the City within thirty (30) days following the receipt of a suitable detailed written invoice from the City for any and all of the City’s costs related to any emergency services response of the City to the Site (e.g., police and/or fire services) resulting from the Developer’s intentional neglect or violation of any Conditional Use Permit Condition or Business Regulatory Permit.

Section 2.3. Additional Entitlements, Approvals, and Permits. Successful implementation of the Project may require the Developer to obtain additional approvals and permits from City and other local and state agencies (“Additional City Approvals”). In connection with the consideration and issuance of any such Additional City Approval which is not ministerial in nature, the City reserves its discretion under the police power to approve, conditionally approve, or deny the issuance of each City Additional Approval. City shall comply with CEQA in the administration of all Additional City Approvals.

Section 2.4. Conditional Use Permit. Pursuant to Bell Gardens Municipal Code Chapter 9.20 and Section 9.20.160, Developer has obtained the necessary approvals pending the approval of this Agreement, to engage in Cannabis Retail Activities pertaining to the Project on the Site through the issuance of a Conditional Use Permit.

Section 2.5. Business Regulatory Permit. Pursuant to Bell Gardens Municipal Code Section 5.64.020(B), Developer shall not engage in Cannabis Retail Activities at the Site without first obtaining a Business Regulatory Permit in accordance with Section 5.64.030 of the Bell Gardens Municipal Code.

Section 2.6. State Cannabis Licenses. Pursuant to California Cannabis Laws and Bell Gardens Municipal Code Section 5.64.030(C), Developer shall not engage in the permitted uses set forth above pertaining to the Project on the Site without first obtaining State Cannabis Licenses to conduct Cannabis Retail Activities on the Site.

Section 2.7. Security Plan. In accordance with the application requirements for a Conditional Use Permit, Developer has submitted a security plan for the operation of a Cannabis Retail facility, as set forth in fuller detail in Exhibit “E.” Developer represents that the security plan includes provisions for licensed security guards as required by Section 5.64.040(C) of the Bell Gardens Municipal Code, video surveillance, cash handling procedures, internal accounting controls, product handling and storage procedures, and a professional monitored alarm system. 73Exhibit 2

13 a. Video surveillance shall include, at a minimum, all site and facility entrances; all spaces accessible by the public, including points of sale; cash storage areas; and other areas necessary to protect the safety of employees and the public to ensure that Cannabis and Cannabis Products are received, handled, stored and sold in compliance with California’s Cannabis Laws, the Bell Gardens Municipal Code, the Conditional Use Permit and other applicable conditions as may be imposed by the City or any other local or state regulatory authority. b. Third-party security guards shall be properly trained and licensed by the Department of Consumer Affairs. Security may be armed so long as property licensing and insurance requirements are followed and met by the third-party operator providing such security services and such documentation is provided to the City in accordance with Section 9.2.

Section 2.8. Odor Control. The Site shall have ventilation and filtration systems installed that prevent Cannabis odors from exiting the interior of the structure. The ventilation and filtration system shall be approved by the Building Official and installed prior to commencing operations within the allowable structure. Facility air intake, exhaust and recirculating system shall be of industrial grade. Activated charcoal, recirculating, and closed loop aeration systems shall be utilized as necessary for effective odor control and management.

ARTICLE 3

APPLICABLE RULES, REGULATIONS, AND OFFICIAL POLICIES
Section 3.1. Rules on Permitted Uses. Unless otherwise provided in this Agreement, the City’s ordinances, resolutions, rules, regulations, and official policies governing the permitted uses of the Site and the maximum height, bulk, and size of proposed buildings related to the Project on the Site shall be those in force and effect at the time of the City’s approval of the Conditional Use Permit for the operation of the Project at the Site.

Section 3.2. Rules on Design and Construction. Unless otherwise provided in this Agreement, the ordinances, resolutions, rules, regulations, and official policies governing the design, improvement, and construction standards and specifications applicable to the Project shall be those in force and effect at the time of the City’s issuance of the Conditional Use Permit for the operation of the Project at the Site.

Section 3.3. Uniform Codes Applicable. Unless otherwise provided in this Agreement, the Project shall be improved and constructed in accordance with the provisions of the California Building Standards Codes in effect at the time as of the time that the development project application to the City for such permit was deemed complete by the City.

Section 3.4. Changes mandated by Federal or State Law. The Site and Project shall be subject to subsequently enacted state or federal laws or regulations that may preempt the Bell Gardens Municipal Code, or mandate the adoption or amendment of local regulations, or are in conflict with this Agreement or local rules or guidelines. As provided in Section 65869.5 of the Development Agreement Statute, in the event state or federal laws or regulations enacted after the Effective Date prevent or preclude compliance with one or more provisions of this Agreement, such provisions of this Agreement shall be subject to modification or suspension by the Parties as provided in this Section 3.4. as may be necessary to comply with such state or federal laws or regulations. Upon a Party’s discovery of a subsequently enacted federal or state law meeting the requirements of this Section, such Party shall provide the other Parties with written notice of the 74Exhibit 2

14 state or federal law or regulation, and a written statement of the conflicts thereby raised with the provisions of the Bell Gardens Municipal Code or this Agreement. Promptly thereafter, the Parties shall meet and confer in good faith in a reasonable attempt to modify this Agreement, as necessary, to comply with such federal or state law or regulation provided City shall not be obligated to agree to any modification materially increasing its obligations or materially adversely affecting its rights and benefits hereunder. In such discussions, the Parties shall attempt to preserve the terms of this Agreement and the rights of Developer derived from this Agreement to the maximum feasible extent while resolving the conflict. If City, in its judgment, determines it necessary to modify this Agreement to address such conflict, City shall have the right and responsibility to do so, and shall not have any liability to Developer for doing so or be considered in breach or default of this Agreement. City also agrees to process, in accordance with the provisions of this Agreement, Developer's proposed changes to the Project that are necessary to comply with such federal or state law and that such proposed changes shall be conclusively deemed to be consistent with this Agreement without further need for any amendment to this Agreement, pursuant to Section 1.10.

Section 3.5. Health and Safety Emergencies. In the event that any future public health and safety emergencies arise with respect to the Project, City agrees that it shall attempt, if reasonably possible as determined by City in its discretion, to address such emergency in a way that does not have a material adverse impact on the Project. If City determines, in its discretion, that it is not reasonably possible to so address such health and safety emergency, to select that option for addressing the situation which, in City's discretion, minimizes, so far as reasonably possible, the impact on development and use of the Project in accordance with this Agreement, while still addressing such health and safety emergency in a manner acceptable to City.

Section 3.6. Reservation of Authority. Any other provision of this Agreement to the contrary notwithstanding, the development and operation of the Project shall be subject to new or modified ordinances, resolutions, rules, regulations, and official policies which may take effect following the Effective Date related to the following:
a. Cost Recovery Fees imposed on the Developer by the City, which are charged by the City to cover its actual and reasonable expenses incurred in processing permits, licenses, and other entitlements related to the Project, administering its cannabis-related ordinance with regard to the Project, and monitoring legal compliance of the Project on the Site, including, but not limited to compliance with the Conditional Use Permit, Business Regulatory Permit, building and safety-related inspections by the City and financial audits and shall include staff time, legal fees, and consultant fees; b. Procedural regulations related to hearing bodies, petitions, applications, notices, findings, records, hearings, reports, recommendations, appeals, and other similar procedural matters; and
c. Regulations, including, but not limited to, the California Building Standards Codes, necessary to protect the public health and safety so long as such regulations are generally applicable and do not impose a severe and significant financial burden on the Developer or materially delay the development or carrying out of the Project as contemplated in this Agreement.
75Exhibit 2

15 ARTICLE 4

COMMUNITY BENEFITS, COST RECOVERY, RECORDKEEPING, REPORTING,

AND PROCESSING
Section 4.1. Intent. The Parties acknowledge and agree that this Agreement confers substantial private benefits on the Developer that will place burdens on City infrastructure, services, and neighborhoods and that the private benefits provided to the developer should be balanced with commensurate “Annual Community Benefits Fees” and “Quarterly Community Benefits Fees” for the community (collectively, “Community Benefits”).

Section 4.2. Community Benefits Fees. Developer shall be obligated to pay to the City Community Benefits and shall be submitted to the City as described in further detail in this Section

4.2. a. “Quarterly Community Benefits Fees.” Within twenty (20) days following the conclusion of each City fiscal year quarter following the City’s issuance of a Business Regulatory Permit for the Project, Developer shall pay the City a sum of money which is equivalent to seven percent (7%) of Gross Receipts for the preceding quarter.
b. “Annual Community Benefits Fees.” Developer shall make a payment to the City in the amount of One Hundred Thousand Dollars ($100,000) by the Effective Date of this Agreement. Each following calendar year, the Developer shall make an annual payment to the City in the amount of One Hundred Thousand Dollars ($100,000) no later than January 15th of each subsequent calendar year. c. In accordance with the Development Agreement Procedures, no less than eighty percent (80%) of the monetary value of the received Community Benefits shall be deposited into a dedicated account set up by the City (“Community Benefits Fund”). Expenditures from the Community Benefits Fund shall be dedicated to youth and educational programming and resources for the City’s housing programs, as detailed below. All projects funded in part or in whole by the Community Benefits Fund shall be subject to City Council approval. i. Public benefits for youth and educational programming shall be dedicated to the City’s Recreational Department and be utilized for but not limited to youth programming, after-school programs, sports programming, personal enrichment classes or capital improvements on City-owned properties. ii. Public benefits for the City’s housing programs shall be dedicated toward the Community Development Department and shall be utilized for housing programming and long-range planning, including but not limited to affordable housing, rent stabilization and tenant protection efforts and other planning efforts.

Section 4.3. Cost Recovery Fees. Developer shall be responsible for the processing and monitoring costs related to the Project, including the processing and execution of this Agreement (collectively, “Cost Recovery Fees”) as described in this Section 4.3. a. Processing Fees. Processing fees shall include the direct and indirect costs that the City incurs in reviewing, processing and executing the Conditional Use Permit, this 76Exhibit 2

16 Agreement, and Additional City Approvals, including without limitation, staff time, legal fees, and consultant fees.
b. Monitoring Fees. Monitoring fees shall include the direct and indirect costs that the City incurs in inspecting, monitoring, investigating, and conducting compliance and enforcement actions for the purpose of confirming that the Project is in accordance with the terms of this Agreement, conditions of approval associated with the Conditional Use Permit, the operating procedures set forth in Chapter 5.64 of the Bell Gardens Municipal Code and Business Regulatory Permit, the Bell Gardens Municipal Code, and California Cannabis Laws.
c. Billing and Payment. The City shall submit an invoice to Developer for Cost Recovery Fees on or before the fifth day of each month following the Effective Date of this Agreement if any costs subject to reimbursement are incurred. Owner shall pay the invoice within thirty (30) days of the date of the invoice issuance.

Failure to timely pay Cost Recovery Fees shall be subject to the penalties and interest set forth in Sections 4.7 and 4.8 of this Agreement.

Section 4.4. Statement of Receipts/Audits. Developer shall keep complete, accurate and appropriate books and records of all receipts from operations in accordance with generally accepted accounting principles for a minimum of five (5) years. For purposes herein, “books and records” shall mean all bookkeeping or accounting documents Developer typically utilizes in managing its business operations relating to the Project. Such books and records, as well as all other relevant documents as the City Manager may reasonably require, shall, upon reasonable written notice, be open for inspection by the City, its auditors or other authorized representatives.

If any time during the term such books and records prove inadequate in the reasonable judgement of City to record the Gross Receipts from Project operations as required herein, Developer shall, upon written request by the City, procure and maintain such books and records as shall be the character and from adequate for such purpose. City shall have the right to audit and examine such books, records, and documents at any time upon reasonable request by the City, to the extent necessary for proper determination of Gross Receipt from Project operations, and all such books, records, documents, and other items shall be held available for such audit and examination.

Section 4.5. Tax Filings. Developer shall provide City with a courtesy copy of each and every report that Developer is required to provide to the County of Los Angeles and the California Department of Tax and Fee Administration for sales, use, and other tax purposes at the time such filings are made.

Section 4.6. Quarterly Reports. In addition to the recordkeeping requirements set forth in this Agreement, within twenty (20) days following the conclusion of each City fiscal year quarter following the City’s issuance of a Business Regulatory Permit for the Project, Developer shall submit a written “Quarterly Report” to the City Community Development Director showing:
a. Gross Receipts for the immediate prior City fiscal quarter received by the Developer; and
b. A calculation of Quarterly Community Benefits Fees due to the City from Developer for the immediate prior City fiscal quarter.

Section 4.7. Non-Payment Penalty. If Developer fails to make a timely payment concerning Community Benefits Fees or Cost Recovery Fees, as required by this Agreement, the 77Exhibit 2

17 City may impose a “Non-Payment Penalty.” A Non-Payment Penalty of one percent (1%) shall be applied to all past due Community Benefits Fees or Cost Recovery Fees. The City shall deliver to Developer a “Notice of Non-Payment Penalty.” Payment of the Non-Payment Penalty shall be in a single installment due on or before a date fifteen (15) days following delivery of the Notice of Non-Payment Penalty.

Section 4.8. Interest on Unpaid Non-Payment Penalty. If Developer fails to timely pay the Non-Payment Penalty after City has delivered the Notice of Non-Payment Penalty, then, in addition to the principal amount of the Non-Payment Penalty, Developer shall pay City interest at the rate of eighteen percent (18%) per annum, computed on the principal amount of the Non- Payment Penalty, from a date fifteen (15) days following delivery of the Notice of Non-Payment Penalty.

Section 4.9. Recordkeeping. Records for Community Benefits, including payroll records for compliance with Section 4.4, shall be maintained in accordance with California Cannabis Laws. City staff shall have access to such records upon request for monitoring an compliance purposes.

Section 4.10. City Cannabis Tax. Should the City voters enact a tax or taxes applicable to the Developer with regard to it carrying out of Cannabis Retail Activities in the City, the parties shall meet and confer in good faith to amend this Article in light of such tax, pursuant to Section

1.10 of this Agreement.

ARTICLE 5

INSURANCE AND INDEMNIFICATION
Section 5.1. General Liability Insurance. Developer shall maintain comprehensive general liability insurance issued by a California admitted insurance carrier whose Best Insurance Guide, current edition insurance rating is not less than “B+(vii)” with a per-occurrence combined single limit of not less than Two Million Dollars ($2,000,000) with a claim deduction not more than One Hundred Thousand Dollars ($100,000) per claim. Such insurance policy shall name the City and City’s elected and appointed councils, boards, commissions, legislative bodies, officials, employees, and representatives as “Additional Insureds” by endorsement with respect to the performance of this Agreement and shall include either a severability of interest clause or cross- liability endorsement and other customary and reasonable endorsements and provisions approved by the City’s risk manager.

Section 5.2. Workers’ Compensation Insurance. Developer shall maintain workers’ compensation insurance for all its employees employed at or on the Project. Developer shall require each contractor and subcontractor working at or on the Project to provide workers’ compensation insurance for its respective employees. Developer indemnification of City set forth in Section 5.4 of this Agreement shall apply to Developer’s failure to maintain any such insurance.

Section 5.3. Evidence of Insurance. Evidence of the insurance in favor of the City required under Section 5.1 shall be provided to the City as of the Effective Date. Thereafter, no Business Regulatory Permit for the Project shall be valid unless and until Developer furnishes satisfactory evidence of the other insurance required in Article 5 of this Agreement. In each case, the evidence of insurance provided to the City shall include satisfactory evidence that the insurance carrier shall give the City at least fifteen (15) days’ prior notice of the cancellation or reduction in coverage of each policy of insurance required in Article 5 of this Agreement. 78Exhibit 2

18 Section 5.4. Indemnification. The Developer and Property Owner, jointly and severally, agree to indemnify, defend with counsel acceptable to City, and hold harmless the City and City’s elected and appointed councils, boards, commissions, legislative bodies, officials, employees, and representatives from any and all claims, costs (including legal fees and costs), or liabilities of any kind arising out of or connected to any act or omission of Developer, Property Owner, or Developer’s or Property Owner’s contractor, subcontractor, agent, or representative related to its establishment or operation of the Project or arising out of or related to the approval or issuance of any permit, license, or approval by the City for the Project, except to the extent such claims, costs, and liabilities are caused by the sole negligence or willful misconduct of the City.

Developer and Property Owner agree that they shall be jointly and severally responsible for all costs incurred by the City in the event of a third-party challenge related to such claims, costs, or liabilities.

Section 5.5. Cooperation in Event of Legal Challenge. Developer and Property Owner shall defend and indemnify the City and the City’s elected and appointed councils, boards, commissions, legislative bodies, officials, employees, and representatives from any claim, action, liability, or proceeding that seeks to attack, set aside, void, or annul the Project or any of the proceedings, acts, or determinations taken, done, or made as a result of the City’s processing and approval of the Project. Developer and Property Owner’s obligation to defend and indemnify the City hereunder shall apply to any lawsuit or challenge alleging failure to comply with the requirements of any federal, state, or local law, including, but not limited to, general plan and zoning requirements and the CEQA. Developer and Property Owner’s obligations under this Section 5.5 shall include, but not be limited to, payment of all court costs and attorneys’ fees, all litigation-related costs, all costs of judgments and awards against the City, and all settlement costs, which arise out of the City’s processing and approval of the Project. The City shall notify the Developer and Property Owner promptly of any claim, action, or proceeding and reasonably cooperate in the defense. Upon receipt of such notification, the Developer and Property Owner shall assume the defense of the claim, action, or proceeding, including the employment of counsel satisfactory to the City, which approval shall not be unreasonably withheld. In the event of a disagreement between the Parties over litigation issues, the City shall have the authority to control the litigation and make litigation decisions for the City, including, but not limited to, settlement, or other disposition of the matter. If the City reasonably determines that having common counsel would create a conflict of interest between itself and Developer and/or Property Owner, then the City may hire counsel for its own defense, and Developer and Property Owner shall jointly and severally pay the City the reasonable attorneys and costs of such counsel within thirty (30) days after receiving an itemized invoice from the City. Developer and Property Owner shall further pay for all costs and fees related to any additional investigation or study, or for supplementing or revising any document, including, without limitation, environmental documents for the Project.

Section 5.6. Failure to Indemnify. The failure of Developer or Property Owner to indemnify the City, as required by this Agreement, shall constitute a material breach of this Agreement and of any applicable Conditional Use Permit, Business Regulatory Permit, and Additional City Approvals, which shall entitle the City to all remedies available under law, including, but not limited to, specific performance and damages. Failure to indemnify shall constitute grounds upon which the City may rescind its approval of any entitlement, permit, or license related to the Project, or any portion thereof, and a waiver of Developer or Property Owner’s right to file a claim, action, or proceeding against the City and City’s elected and appointed councils, boards, commissions, legislative bodies, officials, employees, and representatives based upon the City’s rescission or revocation of any applicable Conditional Use Permit, Business Regulatory Permit, and Additional City Approvals, or City’s failure to defend 79Exhibit 2

19 any claim, action, or proceeding based upon Developer or Property Owner’s failure to indemnify the City.

Section 5.7. Waiver of Damages; Referendum. Notwithstanding anything in this Agreement to the contrary, the Parties acknowledge that City would not have entered into this Agreement had it been exposed to liability for damages from the Developer and, therefore, the Developer and Property Owner hereby waive all claims for damages against City for breach of this Agreement. The Developer and Property Owner further acknowledge that under the Development Agreement Statute, land use approvals (including development agreements) must be approved by the City Council and that, under law, the City Council's discretion to vote in any particular way may not be constrained by contract. The Developer and Property Owner therefore waive all claims for damages against City in the event that this Agreement or any Project approval is: (1) not recommended for approval or approved by the Planning Commission, City Council (as the case may be); or (2) is approved by the City Council, but with new changes, amendments, conditions, or deletions to which Developer and/or Property Owner is opposed. Developer further acknowledges that, as an instrument which must be approved by ordinance, this Agreement is subject to referendum; and that, under law, the City Council's discretion to avoid a referendum by rescinding its approval of the underlying ordinance may not be constrained by contract, and Developer and Property Owner waive all claims for damages against City in this regard.

Section 5.8. Initiative Measures/Moratoria. The Parties intend this Agreement to be a legally binding contract which shall be exempt from any initiative measure or land use moratorium affecting the consideration and approval of parcel or subdivision maps (whether tentative, vesting tentative or final), building permits, occupancy certificates or other entitlements to use approved, issued or granted within the City. This Agreement shall apply to the Project to the extent such initiative measure or municipal moratorium or other limitation is inconsistent or in conflict with this Agreement. Should an initiative measure or moratorium or other limitation be enacted by the citizens of City which would preclude construction of all or any part of the Project, and to the extent such initiative, measure, moratorium, referendum, statute, ordinance, or other limitation be determined by a court of competent jurisdiction to invalidate or prevail over all or any part of this Agreement, neither Developer nor Property Owner shall have recourse against City pursuant to this Agreement for damages. The foregoing shall not be deemed to limit right of Developer or Property Owner to appeal any such determination that such initiative measure, moratorium, or other limitation invalidates or prevails over all or any part of this Agreement. The City agrees to cooperate with Developer or Property Owner in all reasonable manners in order to keep this Agreement in full force and effect, provided that Developer or Property Owner shall, jointly and severally, be obligated to reimburse the City for its actual and reasonable expenses incurred directly in connection with such cooperation and the City shall not be obligated to institute a lawsuit or other court proceedings in such cooperation.

Section 5.9. Bankruptcy. The obligations of this Agreement shall not be dischargeable in bankruptcy.

ARTICLE 6

MORTGAGEE PROTECTION
Section 6.1. Mortgagee Protection. This Agreement, once executed and recorded, shall be superior and senior to any lien placed upon the Site and any portion thereof following recordation of this Agreement, including the lien of any deed of trust or mortgage (“Mortgage”).

Notwithstanding the foregoing, no breach hereof shall defeat, render invalid, diminish, or impair the lien of any Mortgage made in good faith and for value. 80Exhibit 2

20 ARTICLE 7

ANNUAL REVIEW
Section 7.1. Annual Review. During the Term of this Agreement, the City shall annually review Developer’s good faith compliance with this Agreement. This periodic review shall be limited in scope to good faith compliance with the provisions of this Agreement, Conditional Use Permit and its associated conditions of approval, Business Regulatory Permit, California Cannabis Laws, the Bell Gardens Municipal Code and related statues and regulations.

Developer shall bear the burden of demonstrating good faith compliance with the foregoing requirements.

Section 7.2. Timing of Annual Review. No later than thirty (30) days prior to the yearly anniversary of the Effective Date of this Agreement, Developer shall submit to the Community Development Director evidence of compliance pursuant to Section 7.1 above. The City reserves the right to request additional information necessary to demonstrate Developer’s good faith compliance. The Community Development Director or his or her designee shall report to the Planning Commission its determination of compliance through the submission of a staff report with a determination as to the Developer’s compliance, to be considered at a future Planning Commission hearing. If the Community Development Director determines that Developer is in Default pursuant to Section 8.1, the City shall follow the procedures provided pursuant to Article

8. Section 7.3. Staff Reports. To the extent practical, the City shall deliver to the Developer a copy of all staff reports and related exhibits concerning the Developer’s performance under the Agreement within three (3) Business Days preceding Planning Commission review.

Section 7.4. Fee for Annual Review. The reasonable cost for the City’s annual review of this Agreement shall be paid by Developer, not to exceed the actual costs incurred by the City in connection with such review, inclusive of those costs incurred by consultants and legal fees as a part of Cost Recovery Fees. The Developer shall pay such costs to the City within thirty (30) days following the receipt of a written invoice from the City.

ARTICLE 8

DEFAULT, REMEDIES, AND ESTOPPEL CERTIFICATES
Section 8.1. Default. The failure of either Party to perform any obligation or duty under this Agreement within the time required by this Agreement shall be a default and after the giving of notice and the passage of the applicable amount of time, such a default shall constitute an event of default.

Section 8.2. Notice. The “Complaining Party” may not assert that an event of default has occurred against the “Defaulting Party” unless the Complaining Party has first given written notice to the Defaulting Party, specifying the nature of the default and the manner in which the default may be cured, if known to the Complaining Party. Any failure or delay by the Complaining Party in giving such notice shall not waive such default or waive any of the Complaining Party’s remedies.

Section 8.3. Cure. The Defaulting Party shall have thirty (30) days from the receipt of notice to cure the default except as provided in the next sentence. In the case of non-monetary defaults, if the default cannot be reasonably cured within such time, the default shall be deemed cured if:
81Exhibit 2

21 a. The cure is commenced at the earliest practicable date following receipt of notice; b. The cure is diligently prosecuted to completion;
c. At the earliest practicable date (but in no event later than ten (10) days after receiving the notice of default), the Defaulting Party provides written notice to the Complaining Party that the cure cannot be reasonably completed within such thirty (30) day period; and
d. The default is cured at the earliest practicable date, but in no event later than sixty (60) days after receipt of the first notice of default.

However, in the case of a monetary default (e.g., failure to make the payments to the City of fees or other costs required under this Agreement), any such default must be cured by the payment of the amount demanded within such thirty (30) day period.

Section 8.4. Failure to Cure Default Procedures. If after the cure period has elapsed, the City Manager finds and determines that Developer remains in default and that the City intends to terminate or modify this Agreement, the Community Development Director shall make a report to the Planning Commission and then set a public hearing in accordance with the local and state notice and hearing requirements. If after public hearing, the Planning Commission finds and determines, on the basis of substantial evidence that Developer remains in default and that the City intends to terminate or modify this Agreement, the Developer shall be entitled to appeal that to the City Council.

Section 8.5. Appeals to City Council. If Developer wishes to appeal the Planning Commission’s determination pursuant to Section 8.4, such appeal shall be taken within fourteen (14) days after notice of the determination is effectuated pursuant to Section 9.2 of this Agreement.

The City Council shall act upon the Planning Commission’s determination within sixty (60) days of the appeal. The failure by City Council to act within this prescribed time period shall not be deemed to be a denial or approval of the appeal and shall remain pending until final City Council action.

Section 8.6. Remedies. If the Defaulting Party fails to cure a default in accordance with the foregoing, an event of default shall be deemed to have occurred and the Complaining Party shall have the right to seek all appropriate remedies, at law or in equity, including specific performance, modification or termination of this Agreement without further or separate notice to the Defaulting Party.

Section 8.7. Estoppel Certificates.
a. City shall, upon not less than thirty (30) days prior written notice, execute, acknowledge, and deliver to Developer, Developer's lender, potential investors, or assignees an estoppel certificate in writing which certifies that this Agreement is in full force and effect, that there are no breaches or defaults under the Agreement except as described in such estoppel certificate, and that the Agreement has not been modified or terminated and is enforceable in accordance with its terms and conditions.
b. The City may recover its actual and reasonable costs and attorneys’ fees in connection with the timely dealing of any such estoppel certificate. City shall provide Developer with a written invoice of such costs to be paid by Developer within thirty (30) days of issuance. 82Exhibit 2

22 ARTICLE 9

ADDITIONAL GENERAL/MISCELLANEOUS PROVISIONS
Section 9.1. Assignment.
a. City Council Approval Required. Developer shall not have the right to sell, assign, or transfer all or any part of its rights, title, duties, obligations, and interests in all or a portion of Site, or Project, subject to or a part of this Agreement, to any individual, firm, corporation, partnership, or entity during the Term of this Agreement without the advance approval by the City Council through a majority vote. This assignment prohibition also applies to the corporate and business entities of Developer that are a Party to this Agreement. Developer shall initiate a request for the sale, assignment, or transfer of the rights, title, duties, obligations and interests in the Site or Project that is part of this Agreement by submitting a written request to the City Manager. The proposed transferee must provide evidence and any other documents required by the City to evidence compliance with California Cannabis Laws, the Bell Gardens Municipal Code and their related statutes and regulations and any other information deemed necessary to effectuate the transfer. b. Escrow Account. When making a written request to City Manager for the assignment of rights pursuant to this Agreement, Developer shall open an escrow account and deposit an amount of five thousand dollars ($5000) into the escrow account. If the direct and indirect costs of staff time, consultant fees, legal fees and other costs exceed the deposited amount prior to a City Council vote pursuant to subsection (a) above, the City reserves the right to require Developer to deposit an additional five thousand dollars ($5000) into the escrow account to cover direct and indirect costs. Any unused fees remaining in the escrow account following the City Council vote shall be returned to Developer no later than thirty (30) days after the City Council action.
c. Renegotiation of Community Benefits. The City reserves the right to renegotiate Community Benefits with the proposed transferee pursuant to Article 4. d. Effectuation of Assignment. Any sale, assignment, or transfer of the rights, obligations, or interests in this Agreement shall only be effective upon the issuance of a Business Regulatory Permit to the party to whom such sale, assignment, or transfer is made as required by Chapter 5.12 and Section 5.64.020 of the Bell Gardens Municipal Code. Any assignment or transfer prohibited by this Agreement will be considered an immediate material breach of this Agreement and City may elect to immediately terminate this Agreement.
e. Assumption of Obligations. Upon the effectuation of an assignment pursuant to subsection (d) above, the transferee shall expressly and unconditionally assume all rights and obligations of the Developer pursuant to this Agreement.

Section 9.2. Notices. All notices permitted or required under this Agreement shall be given to the respective Parties must be in writing and may be given personally, by registered or certified mail (return receipt requested), Federal Express, UPS or other similar couriers. If notice is personally delivered, the notice shall be deemed to have been given and received on the date notice was given. If given by registered or certified mail, such notice or communication shall be deemed to have been given and received three (3) days after the notice is deposited in the United 83Exhibit 2

23 States mail. If notice is given by Federal Express, UPS, or similar courier, a notice or communication shall be deemed to have been given and received on the date delivered, as shown on the receipt issued by the courier. Notice shall be provided to the following addresses:

DEVELOPER: CITY:

Mr. Nice Guy Bell Gardens, LLC
3211 S. Harbor Blvd.

Santa Ana, CA 92704
Attn: Joseph Martin
(714) 231-4435
[email protected]

City of Bell Gardens
7100 Garfield Ave.

Bell Gardens, California 90201
Attn: Michael B. O’Kelly, City Manager
(562) 806-7702
[email protected]

PROPERTY OWNER: CITY ATTORNEY:

JK & SI Development Company, LLC Olivarez Madruga Law Organization, LLP 3211 Harbor Blvd Santa Ana, CA 92704 500 South Grand Ave, 12th Floor Attn: Patrick Martin, Zhira Khoshoryan Los Angeles, CA 90071 (949) 627-5215/(213) 445-9109 Attn: Stephanie Vasquez
[email protected] (213)-744-0099
[email protected] [email protected]

Section 9.3. Governing Law and Venue. This Agreement shall be interpreted and governed according to the laws of the State of California. In the event of litigation between the Parties, venue, without exception, shall be in the Los Angeles County Superior Court of the State of California. If, and only if, applicable law requires that all or part of any such litigation be tried exclusively in federal court, venue, without exception, shall be in the Central District of California located in the City of Los Angeles, California.

Section 9.4. Severability. If this Agreement in its entirety is determined by a court to be invalid or unenforceable, this Agreement shall automatically terminate as of the date of final entry of judgment. If any term or provision of this Agreement shall be determined by a court to be invalid and unenforceable, or if any term or provision of this Agreement is rendered invalid or unenforceable according to the terms of any federal or state statute, any provisions that are not invalid or unenforceable shall continue in full force and effect and shall be construed to give effect to the intent of this Agreement. The Parties expressly agree that each Party is strictly prohibited from failing to perform any and all obligations under this Agreement on the basis that this Agreement is invalid, unenforceable, or illegal. By entering into this Agreement, each Party disclaims any right to tender an affirmative defense in any arbitration or court of competent jurisdiction, that performance under this Agreement is not required because the Agreement is invalid, unenforceable, or illegal.

Section 9.5. Constructive Notice and Acceptance. Every person who after the Effective Date and recording of this Agreement owns or acquires any right, title, or interest to any portion of the Site is and shall be conclusively deemed to have consented and agreed to every provision contained herein, whether or not any reference to this Agreement is contained in the instrument by which such person acquired an interest in the Site, and all rights and interests of such person in the Site shall be subject to the terms, requirements, and provisions of this Agreement.
84Exhibit 2

24 Section 9.6. Joint and Several Liability. Developer and Property Owner shall be jointly and severally liable for all obligations imposed on either or both under this Agreement, including but not limited to any amount due under this Agreement pursuant to Section 1.11.

Developer and Property Owner agree that the City may impose a lien and seek foreclosure on any parcel of the Site due to any default by Developer. Such consent is additionally set forth in Exhibit “D” to this Agreement.

Section 9.7. Waiver. A waiver by any Party of any breach of any term, covenant, or condition herein contained or a waiver of any right or remedy of such Party available hereunder, at law or in equity, shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant, or condition herein contained or of any continued or subsequent right to the same right or remedy. No Party shall be deemed to have made any such waiver unless it is in writing and signed by the Party so waiving.

Section 9.8. Integration. This Agreement, together with its specific references, attachments, and Exhibits, constitutes all of the agreements, understandings, representations, conditions, warranties, and covenants made by and between the Parties hereto. Unless set forth herein, no Party to this Agreement shall be liable for any representations made, express or implied.

Section 9.9. Captions. The captions of this Agreement are for convenience and reference only and the words contained therein shall in no way be held to explain, modify, amplify, or aid in the interpretation, construction, or meaning of the provisions of this Agreement.

Section 9.10. Mandatory and Permissive. "Shall" and "will" and "agrees" are mandatory. "May" or "can" are permissive.

Section 9.11. Counterparts. This Agreement may be executed simultaneously and in several counterparts, each of which shall be deemed an original, but which together shall constitute one and the same instrument.

Section 9.12. Other Documents. The Parties agree that they shall cooperate in good faith to accomplish the objectives of this Agreement and, to that end, agree to execute and deliver such other instruments or documents as may be necessary and convenient to fulfill the purposes and intentions of this Agreement.

Section 9.13. Authority. All Parties to this Agreement warrant and represent that they have the power and authority to enter into this Agreement and the names, titles, and capacities herein stated on behalf of any entities, persons, states, or firms represented or purported to be represented by such entities, persons, states, or firms and that all former requirements necessary or required by state or federal law in order to enter into this Agreement had been fully complied with. Further, by entering into this Agreement, no Party hereto shall have breached the terms or conditions of any other contract or agreement to which such Party is obligated, which such breach would have a material effect hereon.

Section 9.14. Advice of Legal Counsel. Each Party acknowledges that it has had an opportunity to review this Agreement with its own legal counsel and, based upon the advice of that counsel, freely entered into this Agreement.

Section 9.15. No Third-Party Beneficiaries. This Agreement and all provisions hereof are made and entered into for the sole protection and benefit of the Parties and their successors and assigns. No other person shall have a right of action based upon any provision in this Agreement. 85Exhibit 2

25 Section 9.16. Public Agency Coordination. The Parties shall cooperate and use reasonable efforts in coordinating the implementation of the Project with other public agencies, if any, having jurisdiction over the Site or the Project.

Section 9.17. Restrictions. Property Owner shall place in any agreements to sell or convey any interest in the Site or any portion thereof, a provision making the terms of this Agreement binding on any successors in interest of Property Owner.

Section 9.18. Attorneys’ Fees and Costs. Unless otherwise provided in this Agreement, if any action at law or in equity, including action for declaratory relief, is brought by a Party to enforce or interpret provisions of this Agreement, the prevailing Party in such action shall be entitled to recover its reasonable attorneys’ fees and costs, which may be set by the court in the same action or in a separate action brought for that purpose, in addition to any other relief to which such Party may be entitled.

Section 9.19. Environmental Remediation and Testing. The Parties acknowledge that various environmental remediation and testing activities may be required on the Site and on lands adjacent to the Site. The Parties shall consult with responsible public agencies, as appropriate, in connection with such environmental remediation and testing activities. Developer and Property Owner shall ensure that the development or operation of the Project shall not unreasonably interfere with any such remediation and testing activities.

Section 9.20. Calculation of Time Period. All time referenced in this Agreement shall be calendar days, unless the last day falls on a legal holiday, Saturday, or Sunday, in which case the last day shall be the next business day.

Section 9.21. Recordation of Development Agreement. The City Clerk shall cause a copy of this Agreement to be recorded against title of the Site in accordance with state law.

[SIGNATURES APPEAR ON THE FOLLOWING PAGE]

86Exhibit 2

26 IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed as evidenced by the signatures of the authorized officers of each of them which appear below.

CITY

City of Bell Gardens, a municipal
corporation

By:

Michael B. O’Kelly
Bell Gardens City Manager

Date:

Approved as to Form

By:

Stephanie Vasquez
City Attorney

Date:

DEVELOPER

Mr. Nice Guy Bell Gardens, LLC
[Notarized Signature Required]

By:_______________________________

Name: ___________________________

Title:______________________________

Date:

PROPERTY OWNER

Patrick Martin & Zhirayr Khoshoryan
[Notarized Signature Required]

By:______________________________

Name:____________________________

Title:_____________________________

Date: ___

87Exhibit 2

27 EXHIBIT “A”

LEGAL DESCRIPTION OF SITE

88Exhibit 2

28 EXHIBIT “B”

SITE PLAN

89Exhibit 2

29 EXHIBIT “C”

FLOOR PLAN

90Exhibit 2

30 EXHIBIT “D”
PROPERTY OWNER’S CONSENT AGREEMENT

91Exhibit 2

31 EXHIBIT “E”

SECURITY PLAN

92Exhibit 2

CIT Y OF BE LL GARDENS

O F F I C E O F T HE C I T Y M ANAG E R

AG E ND A RE P O RT
I tem 6.

T O:Honorable Mayor and C ity C ouncil Members
F RO M : Michael B. O'Kelly, City Manager
B Y:Gustavo R omo, Deputy City Manager / D irector of Community D evelopment S UB J E C T:S E C O ND RE AD ING AND AD O P T IO N O F O RD INANC E NO. 941 T O AUT HO RI ZE A

D E V E L O P M E NT AG RE E M E NT B Y AND B E T WE E N T HE C I T Y O F B E L L G ARD E NS ,

O T C B E L L G ARD E NS, L L C , AND K I M D AE HO & HY E Y E O NG, RE L AT ING T O T HE P RO P E RT Y L O C AT E D AT 5605 G AG E AV E NUE IN T HE C I T Y O F B E L L G ARD E NS D AT E:J une 24, 2024
RE C O M M E ND AT IO N:

I t is staff’s recommendation that the City Council waive full reading and adopt Ordinance No. 941 to approve the proposed Development A greement (D A) No. 2023-067 for a cannabis retail storef ront at 5605 Gage Avenue.

B AC K G RO UND/D IS C US S I O N:

On J une 10, 2024, the C ity Council waived the full reading and introduced Ordinance No. 941, by title only, to authorize entering into and execution of D A No. 2023-067. T he C ouncil voted to adopt the ordinance, with a revision to the applicable Quarterly Community Benefits schedule f rom ten percent (10%) of gross receipts to seven percent (7%) of gross receipts, by a 4-1 vote.

I f adopted, Ordinance No. 941 would permit a cannabis retail use at 5605 Gage Avenue f or an initial five (5)-year term, subject to an option to extend the term for an additional five (5) years, for a total 10-year term, so long as the operator is in compliance with applicable state and local laws, the development agreement, the conditional use permit, additional city approvals (if any), and the state cannabis licenses, in exchange for annual and quarterly community benef its provided by the cannabis retail use operator.

E NV IRO NM E NTAL RE V I E W:

I n accordance with the C alif ornia Environmental Q uality Act (C E Q A) (P ub. Res. Code § 21000 et seq.) and C E Q A Guidelines (Cal. C ode R egs., tit. 14, § 15000 et seq.), Ordinance No. 941 was determined to be categorically exempt from C E Q A pursuant to C E Q A Guidelines Section 15061(b)(3) (C ommon Sense E xemption) by the City Planning C ommission on A pril 17, 2024.

C O NC L US I O N:

I f approved, O rdinance No. 941 would become effective 30 calendar days after approval once the operator provides proof of insurance and submits the initial Annual Community B enef its payment of One Hundred T housand D ollars ($100,000.00). The proposed ordinance would ensure vested development rights in exchange f or community benef its dedicated to revenue for youth programs, housing and homelessness issues, and other discretionary items.

F I S C AL I M PAC T:

Ordinance No. 941 proposes an up-front payment of $100,000 (A nnual Community B enefit) upon the ef f ective date of the D A and renew the contribution annually following the execution of the D A, every J anuary. T he cannabis retail 93 use operator would also be required to make quarterly contributions equal to seven percent (7%) of gross receipts (Quarterly C ommunity Benefit). P ursuant to the D A terms, eighty percent (80%) of these funds would be dedicated to the C ity’s youth and recreational programming and housing programs. T he D A also requires deposits to aid in cost recovery efforts to defray the costs of staf f time spent on the negotiation and preparation of a development agreement and monitoring activities to ensure compliance with the D A, C UP, B G MC, and other applicable laws and regulations.

AT TAC HM E NT S :

D escription
Exhibit 1 - Ordinance No. 941
Exhibit 2 - D A No. 2023-067 Of f T he Charts
AP P RO V E D E L E C T RO NI C AL LY B Y:

Michael B . O'K elly, C ity Manager
S tephanie Vasquez, City Attorney and/or Susie A ltamirano, Assistant City Attorney Manuel Carrillo, Director of F inance and Administrative Services 94 ORDINANCE NO. 941

AN ORDINANCE AUTHORIZING THE EXECUTION OF A DEVELOPMENT

AGREEMENT BY AND BETWEEN THE CITY OF BELL GARDENS, OTC

BELL GARDENS, LLC, AND KIM DAE HO & HYE YEONG, RELATING TO THE PROPERTY LOCATED AT 5605 GAGE AVENUE IN THE CITY OF

BELL GARDENS

WHEREAS, the City of Bell Gardens (“City”) Planning Commission approved Resolution #PC 2024-05 and recommended to the City Council the approval of Development Agreement No. 2023-067 by and between the City and OTC Bell Gardens, LLC (Operator) and Kim Dae Ho & Hye Yeong (“Property Owner”), which is incorporated herein by reference;
WHEREAS, after due notice, the City Planning Commission and City Council conducted duly noticed public hearings on this matter;
WHEREAS, pursuant to California Government Code Section 65864 et seq. and Resolution No. 2023-043 (“Development Agreement Procedures”), the City Planning Commission transmitted to the City Council its findings and recommendations through the approval of Resolution #PC 2024-05;
WHEREAS, the findings and determinations in Resolution #PC No. 2024-05 are incorporated herein by reference.

WHEREAS, DA No. 2023-067 is in the public interest and is consistent with the City’s General Plan; and
WHEREAS, the City Council has reviewed and considered DA No. 2023-067 and the findings and recommendations of the City Planning Commission.

NOW, THEREFORE, THE PEOPLE OF THE CITY OF BELL GARDENS DO ORDAIN AS FOLLOWS:

SECTION 1. The above recitals are true and correct and are incorporated in full, herein.

SECTION 2. Pursuant to the Development Agreement Procedures, DA No. 2023- 067:
i. Is consistent with the objectives, policies, general land uses and programs specified in the General Plan;

ii. Promotes the public health, safety, and general welfare;

iii. Is just, reasonable, fair, and equitable under the circumstances; and 95Exhibit 1

Ordinance No. 941

Page 2 of 3 ends

iv. Provides sufficient benefit to the community to justify entering into the agreement.

SECTION 3. The City Council hereby approves DA No. 2023-067 and authorizes the City Attorney to approve as to form and make clarifying changes and further authorizes and directs the Mayor to execute the development agreement in the name of the City of Bell Gardens.

SECTION 4. The City Clerk shall certify the passage and adoption of this Ordinance and shall cause this Ordinance to be published and/or posted as required by law, which shall take full force and effect thirty days from its adoption.

PASSED, APPROVED AND ADOPTED this 24th day of June, 2024.

THE CITY OF BELL GARDENS

________________________________
Gabriela Gomez, Mayor

APPROVED AS TO FORM: ATTEST:

________________________________ ________________________________ Stephanie Vasquez Daisy Gomez
City Attorney City Clerk

96Exhibit 1

Ordinance No. 941

Page 3 of 3 ends

I, ______________, City Clerk of the City of Bell Gardens, hereby CERTIFY that Ordinance No. ____ was introduced and placed upon its first reading at a regular meeting of the Bell Gardens City Council held on Monday, _____________, 2024, and that thereafter said ordinance was duly adopted at a regular meeting of the Bell Gardens City Council held on Monday, ______________, 2024 and was approved and passed by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

______________________________
Daisy Gomez, City Clerk

97Exhibit 1

1 DEVELOPMENT AGREEMENT NO. 2023-067

BETWEEN

THE CITY OF BELL GARDENS
AND
OTC Bell Gardens, LLC

RECORDING REQUESTED BY

AND WHEN RECORDED MAIL
TO:

City of Bell Gardens
City Hall
7100 Garfield Ave.

Bell Gardens, California 90201
Attn: Office of the City Attorney

(Space above Line for Use by Recorder)

This document is exempt from the
payment of a recording fee pursuant to
Government Code Section 27383

98Exhibit 2

2 This DEVELOPMENT AGREEMENT (“Agreement”) is dated as of ______________, 2024 by and among the City of Bell Gardens (“City”) and OTC Bell Gardens, LLC (“Developer”) and Kim Dae Ho & Hye Yeong (“Property Owner”). This Agreement shall take effect on the “Effective Date,” as this term is hereafter defined. The City, Developer, and the Property Owner may each be referred to herein individually as a “Party” or collectively as the “Parties.”

RECITALS

WHEREAS, in 1996, the California State Legislature approved Proposition 215, also known as the Compassionate Use Act (“CUA”) (Health and Saf. Code § 11262.5 et seq.) and was intended to enable persons in need of medical marijuana for specified medical purposes, such as cancer, anorexia, AIDS, chronic pain, glaucoma and arthritis, to obtain and use marijuana under limited circumstances and were recommended by a physician. The CUA provides that “nothing in this section shall be construed or supersede legislation prohibiting persons from engaging in conduct that endangers others, or to condone the diversion of marijuana for non-medical purposes”;

WHEREAS, in 2004, the California State Legislature enacted the Medical Marijuana Program Act (Health & Saf. Code § 11362.7 et seq.) (“MMP”), which clarified the scope of the CUA, created a state-approved voluntary medical marijuana identification card program, and authorized cities to adopt and enforce rules and regulations consistent with the MMP. Assembly Bill 2650 (2010) and Assembly Bill 1300 (2011) amended the MMP to expressly recognize the authority of counties and cities to “[a]dopt local ordinances that regulate the location, operation, or establishment of a medical marijuana cooperative or collective” and to civilly and criminally enforce such ordinances;

WHEREAS, on April 25, 2011, this City Council approved a moratorium on the establishment and operation of medical marijuana dispensaries through the adoption of Ordinance No. 840;

WHEREAS, in September 2015, the California State Legislature enacted and Governor Brown signed into law three bills – Assembly Bill 243, Assembly Bill 266, and Senate Bill 643 – which together comprise the Medical Marijuana Regulation and Safety Act (the “MMRSA”). The MMRSA created a comprehensive dual state licensing system for the cultivation, manufacture, retail, sale, transport, distribution, delivery, and testing of medical cannabis;

WHEREAS, on January 25, 2016, the City Council adopted Ordinance No. 873 to prohibit all commercial cannabis activities citywide, including Cannabis Retail Activities;

WHEREAS, in June 2016 the MMRSA was renamed the Medical Cannabis Regulation and Safety Act (the “MCRSA”), under Senate Bill 837, which also made included substantive changes to the applicable state laws, which affect the various state agencies involved in regulating cannabis businesses as well as potential licensees;

WHEREAS, on November 8, 2016, the Control, Regulate, and Tax Adult Use of Marijuana Act (“AUMA”) was approved by California voters as Proposition 64 and became effective on November 9, 2016, pursuant to the California Constitution (Cal. Const., art. II, § 10(a)). Proposition 64 legalized the nonmedical use of cannabis by persons 21 years of age and over, and the personal cultivation of up to six (6) cannabis plants.

99Exhibit 2

3 WHEREAS, AUMA also created a state regulatory and licensing system governing the commercial cultivation, testing, and distribution of nonmedical cannabis, and the manufacturing of nonmedical cannabis products;

WHEREAS, on June 27, 2017, Governor Brown signed the Legislature-approved Senate Bill 94. SB 94 combined elements of the MCRSA and AUMA to establish a streamlined singular regulatory and licensing structure for both medical and nonmedical cannabis activities given that there were discrepancies between the MCRSA and AUMA. The new consolidated provisions under SB 94 are now known as the Medicinal and Adult-Use Cannabis Regulation and Safety Act (“MAUCRSA”) to be governed by the California Bureau of Cannabis Control;

WHEREAS, on September 16, 2017, Governor Brown signed Assembly Bill 133 into law, which provided cleanup and substantive to MAUCRSA, including the removal of the requirement that licensed premises remain “separate and distinct” for each license type;

WHEREAS, MAUCRSA grants local jurisdictions discretion over whether businesses engaged in Commercial Cannabis Activity may operate in a particular jurisdiction and, if authorized, where within such jurisdiction;

WHEREAS, on June 26, 2023, the City Council approved Ordinance No. 934 (i) repeal the prohibition all adult-use Cannabis Activities in the City; and (ii) establish regulations and a discretionary review process for Cannabis Retail Activities, in the M-U (Mixed Use Residential/Commercial, C-S (Commercial Service and Professional), C-3 (Medium Commercial, C-4 (Heavy Commercial, C-M (Commercial-Manufacturing), and M-1 (Light Industrial) Zones;

WHEREAS, Ordinance No. 934 allows persons to engage in permissible Retail Commercial Cannabis Activities upon the City’s approval of a conditional use permit and issuance of a Business Regulatory Permit, for a term of eighteen (18) months unless Developer executes a development agreement with the City;

WHEREAS, Developer seeks to improve, develop, and/or use real property to operate a Cannabis Retail use in the City, in strict accordance with the California Cannabis Laws, the Bell Gardens Municipal Code, and related statutes and regulations, as each may be amended from time to time (the “Project”);
WHEREAS, to strengthen the public planning process, encourage private participation in comprehensive planning, and reduce the economic risk of development, the California Legislature adopted Government Code Section 65864 et seq. (the "Development Agreement Statute"), which authorizes City and an individual with an interest in real property to enter into a development agreement that establishes certain development rights in real property; WHEREAS, consistent with the requirements of the Development Agreement Statute, City adopted Resolution 2023-43 ("Development Agreement Procedures") authorizing the use of and establishing the procedures and requirements for the consideration of development agreements within the City;
WHEREAS, Government Code Section 65865 requires that an applicant for a development agreement hold a legal or equitable interest in the real property that is the subject of the development agreement;
100Exhibit 2

4 WHEREAS, Developer has a leasehold interest in that certain real property located at 5605 E. Gage Avenue in the City of Bell Gardens, County of Los Angeles, State of California, Assessor's Parcel Numbers (“APN”) 6328-003-034 and 6328-003-035 (collectively, the “Site”), upon which Developer seeks to effectuate the Project;
WHEREAS, the Site is more particularly described in the Legal Description attached hereto as Exhibit “A,” the Site Plan attached hereto as Exhibit “B,” and the Floor Plan attached hereto as Exhibit “C”;
WHEREAS, the Site is located within the Mixed Use Commercial/Residential (“M-U”) Zone in the City where Cannabis Retail sales may be conditionally permitted; WHEREAS, Developer affirms that it has a leasehold interest in the Site pursuant to a lease with the owner of the Site, (“Property Owner”), for the purpose of carrying out the Project; WHEREAS, the Developer has provided notarized written consent to: (1) all terms of this Agreement, including, but not limited to, Sections 6.1 and 9.6 of this Agreement; and (2) and recordation of this Agreement against the title of the Site. Such written consent agreement is attached hereto as Exhibit “D.”
WHEREAS, Government Code Section 65867.5 and the City Development Agreement Procedures require the Bell Gardens Planning Commission (“Planning Commission”) to conduct a public hearing to review a proposed development agreement; WHEREAS, on ______________, 2024, the Planning Commission, in a duly noticed and conducted public hearing, considered the recommendation of approval of this Agreement to the City Council;
WHEREAS, on ______________, 2024, the Planning Commission recommended City Council approval of this Agreement, which would allow Developer to operate the Project at the Site;
WHEREAS, on ______________, 2024, the Planning Commission also reviewed, considered, and conditionally approved Conditional Use Permit No. 2023-067 pending City Council’s approval of this Agreement;
WHEREAS, on ______________, 2024, pursuant to Government Code Section 65867.5 and the City Development Agreement Procedures, the City Council, following a duly noticed and conducted public hearing, reviewed, considered, and approved Conditional Use Permit No. 2023- 072 and reviewed, considered, and adopted a first reading of Ordinance No. ______________, and, on ______________, 2024, the City Council approved for second reading and adopted Ordinance No. ______________, authorizing the City’s engagement into this Agreement; WHEREAS, this Agreement is entered into pursuant to the Development Agreement Statute and the City’s Development Agreement Procedures; WHEREAS, the City and Developer desire to enter into this Agreement to (i) facilitate the orderly development of the Site; (ii) create a physical environment that is consistent with and complements City's goals and visions; (iii) protect natural resources from adverse impacts; (iv) improve, upgrade, and create additional community facilities and infrastructure, enhance services, and assist in implementing the goals of the General Plan; and (v) reduce the economic risk of development of the Site to both City and Developer; and 101Exhibit 2

5 WHEREAS, the Parties intend through this Agreement to allow Developer to develop and operate the Project in accordance with the terms of this Agreement.

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein and other good and valuable consideration, the receipt and legal sufficiency of which are hereby acknowledged, the Parties do hereby agree as follows:

AGREEMENT
ARTICLE 1

GENERAL PROVISIONS
Section 1.1. Findings. City hereby finds and determines that entering into this Agreement furthers the public health, safety, and general welfare and is consistent with City's General Plan, including all text and maps in the General Plan.

Section 1.2. Recitals. The Recitals above are true and correct and are hereby incorporated into and made a part of this Agreement, in full herein. In the event of any inconsistency between the Recitals and any provision of Article 1 through Article 9 of this Agreement, the particular provision of Article 1 through Article 9 shall prevail.

Section 1.3. Exhibits. The following “Exhibits” are attached hereto and incorporated into this Agreement in their entirety by this reference:

Exhibit “A”: Legal Description
Exhibit “B”: Site Plan
Exhibit “C”: Floor Plan
Exhibit “D” Property Owner Consent
Exhibit “E” Security Plan
Section 1.4. Definitions. In this Agreement, unless the context otherwise requires, the terms below have the following meanings:
a. “Additional Insured(s)” has the meaning set forth in Section 5.1 of this Agreement. b. “Additional City Approvals” means all ministerial and discretionary permits, licenses, or other similar entitlements, including any modifications or amendments thereto that must be secured by the Developer from the City in order to develop the Project on the Site, in addition to the Conditional Use Permit and the Business Regulatory Permit. c. “Agreement” means this Development Agreement and all Exhibits attached hereto. d. “Annual Community Benefits Fees” has the meaning set forth in Section 4.2 of this Agreement.
e. “AUMA” has the meaning as set forth in the Recitals, above. f. "Business Day” means any day except for Saturday, Sunday, any holiday that is observed by the City, or day that the City is not closed for business. 102Exhibit 2

6 g. “Business Regulatory Permit” means the business regulatory permit, as required in Bell Gardens Municipal Code Chapter 5.12 required for Cannabis Retail Activity issued by the Chief of Police, which can only be issued upon City approval of a Conditional Use Permit, State Cannabis License, and Additional City Approvals for each proposed Cannabis Retail Activity project;
h. “California Building Standards Codes" means the California Building, Mechanical, Plumbing, Electrical, Fire or other similar codes set forth in Title 24 of the California Code of Regulations, as may be adopted by the City, with amendments, and set forth in the Bell Gardens Municipal Code.
i. “California Cannabis Laws” means AUMA, MAUCRSA, CUA, MMP, and the regulations adopted and promulgated by the State Licensing Authorities pursuant to such laws, as such laws and regulations may be amended from time to time. j. “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" does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. For the purpose of this division, "cannabis" does not mean "industrial hemp" as defined by Section 11018.5 of the Health and Safety Code. Cannabis and the term "marijuana" may be used interchangeably.
k. “Cannabis Cultivation” means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis. Cannabis cultivation, as defined herein, does not include the personal cultivation at a private residence of up to six (6) plants as authorized under state law for personal use.
l. “Cannabis Distribution” means the procurement, sale, and transport of cannabis and/or cannabis products between those persons with requisite state and local government licenses to conduct permissible Commercial Cannabis Activities.
m. “Cannabis Manufacturing” means the compounding, blending, extracting, infusing, packaging, label or otherwise making or preparing a cannabis product. n. “Cannabis Product” means cannabis and such products that are intended for use on, or consumption by, an animal. Cannabis products are not considered food as defined in Health and Safety Code Section 109935, a drug as defined in Health and Safety Code Section 109925, or a cosmetic as defined in Health and Safety Code Section 109900. o. “Cannabis Retail Activities” means the retail sale and delivery of cannabis or cannabis products to customers. Delivery of cannabis and cannabis products shall also include the use of a technology platform by a cannabis retailer to conduct the commercial transfer of cannabis and cannabis products.
p. “CEQA” means the California Environmental Quality Act, as set forth in Division 13 (Commencing with Section 21000) of the California Public Resources Code, and the CEQA 103Exhibit 2

7 Guidelines as set forth in Title 14 (Commencing with Section 15000) of the California Code of Regulations.
q. “City” means the City of Bell Gardens, a municipal corporation and general law city. r. “City Council” means the City of Bell Gardens City Council. s. “City Development Agreement Procedures” has the meaning set forth in the Recitals, above.
t. “City Manager” means the City Manager of the City of Bell Gardens, or his or her designee(s).
u. “Community Benefits” has the meaning set forth in Section 4.1 of this Agreement. v. “Community Benefits Fund” has the meaning set forth in Section 4.2(c) of this Agreement.
w. “Complaining Party” has the meaning set forth in Section 8.2 of this Agreement. x. “Conditional Use Permit” means a Conditional Use Permit No. 2023-067 and associated conditions of approval incorporated by reference herein, issued by the City to Developer pertaining to Developer’s development of the Project, pursuant to Bell Gardens Municipal Code Chapter 9.20 (Special Uses and Applicable Standards) and Section 9.20.160 (Cannabis Retail- Conditional Use). In the event that the Conditional Use Permit may not have been issued to the Developer as of the Effective Date, the City hereby reserves its discretion under the police power to approve, conditionally approve, or deny the issuance of the Conditional Use Permit. y. “Cost Recovery Fees” has the meaning set forth in Section 4.3 of this Agreement. z. “CUA” has the meaning set forth in the Recitals, above. aa. “Days” shall mean calendar days unless otherwise noted. If a calendar day falls on Saturday, Sunday, holiday observed by the City or day in which the City is otherwise closed for City business, the final day shall be the next Business Day. bb. “Defaulting Party” has the meaning set forth in Section 8.2 of this Agreement. cc. “Developer” means OTC Bell Gardens, LLC., which shall reflect the owner or owners listed on the application for Business Regulatory Permit, or any transferee who has been assigned the rights, title, duties, obligations and interests of this Agreement pursuant to Section 9.1. dd. “Development Agreement Statute” has the meaning set forth in the Recitals, above. ee. “Development Agreement Procedures” has the same meaning as set forth in the Recitals, above.
ff. “Effective Date” has the meaning set forth in Section 1.7 of this Agreement. gg. “Exhibits” has the meaning set forth in Section 1.3 of this Agreement. 104Exhibit 2

8 hh. “Gross Receipts” means total revenue received or receivable by the Developer or other occupant on the Site from any Commercial Cannabis Activity on the Site or from operation of the Project on the Site, including: all sales; the total amount of compensation received or receivable for the performance of any act or service, of whatever nature it may be, for which a charge is made or credit whether or not such act or service is done as part of or in connection with the sale of materials, goods, wares, or merchandise; and gains realized from trading in stocks or bonds, interest discounts, rents, royalties, fees, commissions, dividends, or other remunerations, however designated. Included in "gross receipts" shall be all receipts, cash, credits, and property of any kind or nature, 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, or losses or other expenses whatsoever, except that the following shall be excluded therefrom:

1. Cash discounts allowed and taken on Commercial Cannabis Activity sale;

2. Credit allowed on property accepted as part of the purchase price on Commercial Cannabis Activity and which property may later be sold, at which time the payment of the credit balance on such property shall be included as "gross receipts";

3. Any tax required by law to be included in or added to the purchase price at time of sale or disposition of any Cannabis or Cannabis Product associated with a Commercial Cannabis Activity and collected from the consumer or purchaser;

4. Such part of the sale price of property returned by purchasers in any Cannabis Retail Activity upon rescission of a contract of sale as is refunded either in cash or by credit;

5. Receipts of refundable deposits in any Cannabis Retail Activity, except that such deposits when forfeited and taken into income of the business shall not be excluded.

The intent of this definition is to ensure that in calculating the payments required under Article 4 of this Agreement, all sales related to Cannabis Retail Activity or any other Cannabis and Cannabis Products at the Site or through the Project are captured as Gross Receipts. This definition shall therefore be given the broadest possible interpretation consistent with this intent. ii. “Project” has the meaning as set forth in the Recitals, above. jj. “Property Owner” has the meaning as set forth in introductory paragraph to this Agreement, above.
kk. “Marijuana” has the same meaning as Cannabis as defined above, and those terms may be used interchangeably.
ll. “MAUCRSA” means the Medicinal and Adult-Use Cannabis Regulation and Safety Act, (Bus. and Prof. Code § 26000 et seq.), as may be amended from time to time, and as additionally set forth in the Recitals, above.
mm. “MCRSA” has the meaning set forth in the Recitals, above. nn. “Mortgage” has the meaning set forth in Section 6.1 of this Agreement. oo. “Non-Payment Penalty” has the meaning set forth in Section 4.8 of this Agreement. 105Exhibit 2

9 pp. “Notice of Non-Payment Penalty” has the meaning set forth in Section 4.7 of this Agreement.
qq. “Planning Commission” means the City of Bell Gardens Planning Commission as described in Bell Gardens Municipal Code Chapter 2.24.
rr. “Project” has the meaning set forth in the Recitals, above. ss. “Quarterly Report” has the meaning set forth in Section 4.6 of this Agreement. tt. “Site” has the meaning as set forth in the Recitals, above. uu. “Site Plan” means site plan that satisfies the requirements set forth in Bell Gardens Municipal Code Section 9.50.020; floor plans; and elevations, inclusive of proposed signage and façade improvements.
vv. “State Cannabis License(s)” means license(s) to conduct Cannabis Retail Activities issued by a State Licensing Authority to Developer for the Development of the Project on the Site. ww. “State Licensing Authority” means the state agency responsible for the issuance, renewal, or reinstatement of State Cannabis Licenses, or the state agency authorized to take disciplinary action against a business licensed under the California Cannabis Laws. xx. “Term” has the meaning set forth in Section 1.8 of this Agreement.

Section 1.5. Project is a Private Undertaking. The Parties agree that the Project is a private development and that City has no interest therein, except as authorized in the exercise of its governmental functions. City shall not for any purpose be considered an agent of Developer or the Project.

Section 1.6. Applicability of the Agreement. This Agreement does not: (1) grant height, density, intensity or grant uses of that than is otherwise established in the Bell Gardens Municipal Code and Conditional Use Permit; (2) eliminate the need for Additional City Approvals relating to the Project submitted by Developer after the Effective Date of this Agreement; (3) guarantee that Developer will receive any profits from the Project; (4) prohibit the Project’s participation in any benefit assessment district that may be generally applicable to surrounding properties; (5) amend the City’s General Plan; or (6) amend the Bell Gardens Municipal Code.

Section 1.7. Effective Date of Agreement. This Agreement shall become effective (the “Effective Date”) upon the date when all of the following conditions have been satisfied: (i) Thirty (30) days have elapsed since the City ordinance authorizing this Agreement is approved in accordance with state law; (ii) this Agreement has been fully executed by all Parties; and (iii) the evidence of insurance coverage in favor of the City has been provided to the City as set forth in Article 5 of this Agreement.

Section 1.8. Term.
a. The term of this Agreement (the “Term”) shall be five (5) years commencing from the Effective Date.
b. This Agreement may be extended upon the conclusion of such initial five-year period for a up to one (1) five-year extension term, not to exceed a total of ten (10) years, inclusive 106Exhibit 2

10 of the initial five-year term. Any extension shall be at the sole and absolute discretion of the City, provided that the Developer submits written notice of its desire to so extend this Agreement no less than one hundred eighty days (180) days before the expiration of the initial five-year period or any following five-year extension term. The City Manager shall approve the extension in writing no later than ninety (90) days prior to the expiration of the initial five-year period subject to the following conditions: The Term of this Agreement may only be extended if Developer is in compliance with the terms and conditions of California Cannabis Laws, this Agreement, the Conditional Use Permit, Additional City Approvals if any, the Business Regulatory Permit, the Bell Gardens Municipal Code, and State Cannabis License(s) and related rules and regulations at the time the written notice is submitted. Under no circumstances will the City extend the Term of this Agreement if the Developer has been issued written notice of default pursuant to Section 8.2 that has not yet been cured. The City Manager may, in its sole and absolute discretion, approve a term extension of less than five (5) years so long as the total number of years, inclusive of the initial five-year terms and extensions, does not exceed a total of ten (10) years.
c. Nothing in this Section 1.8 shall prohibit or otherwise restrict the termination of this Agreement in accordance with Section 1.9.

Section 1.9. Termination. This Agreement shall terminate upon the occurrence of any of the following events:
a. the expiration of the Term;
b. the Developer no longer has a possessory, legal or other equitable interest in the Site; c. the Developer has ceased all operations related to the Project on the Site for more than sixty (60) consecutive days;
d. mutual written consent of the Parties;
e. abandonment of Developer’s Conditional Use Permit applicable to the Project, or the failure of the Developer to commence operation of the Project on the Site within twelve (12) months following the issuance of a building permit, certificate of occupancy, temporary certificate of occupancy or similar document pursuant to Bell Gardens Municipal Code Section 5.64.040(K);
f. revocation of Developer’s Conditional Use Permit pursuant to Bell Gardens Municipal Code Section 9.62.010;
g. revocation of Developer’s Business Regulatory Permit for the Project, pursuant to Bell Gardens Municipal Code Sections 5.64.050 and 5.12.100, if not appealed by the Developer;
h. City Council upholding of the revocation of Developer’s Business Regulatory Permit for the Project, if an initial revocation finding by the Chief of Police is appealed to the City Council by Developer;
i. unauthorized assignment of interest of the Developer in the Project or in the Site pursuant to Section 9.1 of this Agreement;
107Exhibit 2

11 j. as set forth in Sections 8.5 and 8.6 of this Agreement; k. upon the occurrence of the entry of a final judgment or issuance of an order of a court with jurisdiction which such judgment or order directs the City to cancel this Agreement, after all appeals have been exhausted, as a result of any lawsuit filed against City to set aside, withdraw or abrogate the approval of the City Council of this Agreement, whereupon such termination, the Parties shall be mutually released from any further liability except as provided in Section 1.12, below.

Section 1.10. Amendment of Agreement. This Agreement shall be amended only by mutual consent of the Parties. All amendments shall be in writing and adopted by ordinance pursuant to the same requirement set forth in the Development Agreement Statute.

Section 1.11. Fees. Developer and Property Owner shall be jointly and severally liable for the payment to the City of all Cost Recovery Fees, Community Benefits, penalties and interest, and any other applicable fees when due, including but not limited to development impact fees, payable to the City related to Developer’s development and operation of the Project on the Site, and the fees referenced in Article 4 of this Agreement.

Section 1.12. Survival of Certain Terms. The rights and obligations of the Parties which arise under Sections 1.11, 5.4, 5.5, 5.6, 5.7, 9.2, 9.3, 9.4, and 9.6 of this Agreement and any right or obligation of the Parties in this Agreement, which, by its express terms or nature and context is intended to survive termination of this Agreement, will survive any such termination. 108Exhibit 2

12 ARTICLE 2

DEVELOPMENT OF THE PROPERTY
Section 2.1. Right to Develop. During the Term of this Agreement, Developer shall have the right to develop the Project on the Site, consistent with terms and conditions of California Cannabis Laws, this Agreement, the Conditional Use Permit, Additional City Approvals if any, the Business Regulatory Permit, the Bell Gardens Municipal Code, and State Cannabis License(s).

Section 2.2. Permitted Uses and Operational Requirements. During the Term, Developer shall be permitted to develop, construct, and use the Site to carry out the Project, including for Cannabis Retail Activities, consistent with California Cannabis Laws, this Agreement, the Conditional Use Permit, Additional City Approvals, the Business Regulatory Permit, the Bell Gardens Municipal Code, and State Cannabis Licenses. Other commercial cannabis activities, including but not limited to Cannabis Cultivation, Cannabis Manufacturing, Cannabis Testing, and Cannabis Distribution are strictly prohibited. Further, subject to any limitations or prohibitions under state law, Developer shall reimburse the City within thirty (30) days following the receipt of a suitable detailed written invoice from the City for any and all of the City’s costs related to any emergency services response of the City to the Site (e.g., police and/or fire services) resulting from the Developer’s intentional neglect or violation of any Conditional Use Permit Condition or Business Regulatory Permit.

Section 2.3. Additional Entitlements, Approvals, and Permits. Successful implementation of the Project may require the Developer to obtain additional approvals and permits from City and other local and state agencies (“Additional City Approvals”). In connection with the consideration and issuance of any such Additional City Approval which is not ministerial in nature, the City reserves its discretion under the police power to approve, conditionally approve, or deny the issuance of each City Additional Approval. City shall comply with CEQA in the administration of all Additional City Approvals.

Section 2.4. Conditional Use Permit. Pursuant to Bell Gardens Municipal Code Chapter 9.20 and Section 9.20.160, Developer has obtained the necessary approvals pending the approval of this Agreement, to engage in Cannabis Retail Activities pertaining to the Project on the Site through the issuance of a Conditional Use Permit.

Section 2.5. Business Regulatory Permit. Pursuant to Bell Gardens Municipal Code Section 5.64.020(B), Developer shall not engage in Cannabis Retail Activities at the Site without first obtaining a Business Regulatory Permit in accordance with Section 5.64.030 of the Bell Gardens Municipal Code.

Section 2.6. State Cannabis Licenses. Pursuant to California Cannabis Laws and Bell Gardens Municipal Code Section 5.64.030(C), Developer shall not engage in the permitted uses set forth above pertaining to the Project on the Site without first obtaining State Cannabis Licenses to conduct Cannabis Retail Activities on the Site.

Section 2.7. Security Plan. In accordance with the application requirements for a Conditional Use Permit, Developer has submitted a security plan for the operation of a Cannabis Retail facility, as set forth in fuller detail in Exhibit “E.” Developer represents that the security plan includes provisions for licensed security guards as required by Section 5.64.040(C) of the Bell Gardens Municipal Code, video surveillance, cash handling procedures, internal accounting controls, product handling and storage procedures, and a professional monitored alarm system. 109Exhibit 2

13 a. Video surveillance shall include, at a minimum, all site and facility entrances; all spaces accessible by the public, including points of sale; cash storage areas; and other areas necessary to protect the safety of employees and the public to ensure that Cannabis and Cannabis Products are received, handled, stored and sold in compliance with California’s Cannabis Laws, the Bell Gardens Municipal Code, the Conditional Use Permit and other applicable conditions as may be imposed by the City or any other local or state regulatory authority. b. Third-party security guards shall be properly trained and licensed by the Department of Consumer Affairs. Security may be armed so long as property licensing and insurance requirements are followed and met by the third-party operator providing such security services and such documentation is provided to the City in accordance with Section 9.2.

Section 2.8. Odor Control. The Site shall have ventilation and filtration systems installed that prevent Cannabis odors from exiting the interior of the structure. The ventilation and filtration system shall be approved by the Building Official and installed prior to commencing operations within the allowable structure. Facility air intake, exhaust and recirculating system shall be of industrial grade. Activated charcoal, recirculating, and closed loop aeration systems shall be utilized as necessary for effective odor control and management.

ARTICLE 3

APPLICABLE RULES, REGULATIONS, AND OFFICIAL POLICIES
Section 3.1. Rules on Permitted Uses. Unless otherwise provided in this Agreement, the City’s ordinances, resolutions, rules, regulations, and official policies governing the permitted uses of the Site and the maximum height, bulk, and size of proposed buildings related to the Project on the Site shall be those in force and effect at the time of the City’s approval of the Conditional Use Permit for the operation of the Project at the Site.

Section 3.2. Rules on Design and Construction. Unless otherwise provided in this Agreement, the ordinances, resolutions, rules, regulations, and official policies governing the design, improvement, and construction standards and specifications applicable to the Project shall be those in force and effect at the time of the City’s issuance of the Conditional Use Permit for the operation of the Project at the Site.

Section 3.3. Uniform Codes Applicable. Unless otherwise provided in this Agreement, the Project shall be improved and constructed in accordance with the provisions of the California Building Standards Codes in effect at the time as of the time that the development project application to the City for such permit was deemed complete by the City.

Section 3.4. Changes mandated by Federal or State Law. The Site and Project shall be subject to subsequently enacted state or federal laws or regulations that may preempt the Bell Gardens Municipal Code, or mandate the adoption or amendment of local regulations, or are in conflict with this Agreement or local rules or guidelines. As provided in Section 65869.5 of the Development Agreement Statute, in the event state or federal laws or regulations enacted after the Effective Date prevent or preclude compliance with one or more provisions of this Agreement, such provisions of this Agreement shall be subject to modification or suspension by the Parties as provided in this Section 3.4. as may be necessary to comply with such state or federal laws or regulations. Upon a Party’s discovery of a subsequently enacted federal or state law meeting the requirements of this Section, such Party shall provide the other Parties with written notice of the 110Exhibit 2

14 state or federal law or regulation, and a written statement of the conflicts thereby raised with the provisions of the Bell Gardens Municipal Code or this Agreement. Promptly thereafter, the Parties shall meet and confer in good faith in a reasonable attempt to modify this Agreement, as necessary, to comply with such federal or state law or regulation provided City shall not be obligated to agree to any modification materially increasing its obligations or materially adversely affecting its rights and benefits hereunder. In such discussions, the Parties shall attempt to preserve the terms of this Agreement and the rights of Developer derived from this Agreement to the maximum feasible extent while resolving the conflict. If City, in its judgment, determines it necessary to modify this Agreement to address such conflict, City shall have the right and responsibility to do so, and shall not have any liability to Developer for doing so or be considered in breach or default of this Agreement. City also agrees to process, in accordance with the provisions of this Agreement, Developer's proposed changes to the Project that are necessary to comply with such federal or state law and that such proposed changes shall be conclusively deemed to be consistent with this Agreement without further need for any amendment to this Agreement, pursuant to Section 1.10.

Section 3.5. Health and Safety Emergencies. In the event that any future public health and safety emergencies arise with respect to the Project, City agrees that it shall attempt, if reasonably possible as determined by City in its discretion, to address such emergency in a way that does not have a material adverse impact on the Project. If City determines, in its discretion, that it is not reasonably possible to so address such health and safety emergency, to select that option for addressing the situation which, in City's discretion, minimizes, so far as reasonably possible, the impact on development and use of the Project in accordance with this Agreement, while still addressing such health and safety emergency in a manner acceptable to City.

Section 3.6. Reservation of Authority. Any other provision of this Agreement to the contrary notwithstanding, the development and operation of the Project shall be subject to new or modified ordinances, resolutions, rules, regulations, and official policies which may take effect following the Effective Date related to the following:
a. Cost Recovery Fees imposed on the Developer by the City, which are charged by the City to cover its actual and reasonable expenses incurred in processing permits, licenses, and other entitlements related to the Project, administering its cannabis-related ordinance with regard to the Project, and monitoring legal compliance of the Project on the Site, including, but not limited to compliance with the Conditional Use Permit, Business Regulatory Permit, building and safety-related inspections by the City and financial audits and shall include staff time, legal fees, and consultant fees; b. Procedural regulations related to hearing bodies, petitions, applications, notices, findings, records, hearings, reports, recommendations, appeals, and other similar procedural matters; and
c. Regulations, including, but not limited to, the California Building Standards Codes, necessary to protect the public health and safety so long as such regulations are generally applicable and do not impose a severe and significant financial burden on the Developer or materially delay the development or carrying out of the Project as contemplated in this Agreement.
111Exhibit 2

15 ARTICLE 4

COMMUNITY BENEFITS, COST RECOVERY, RECORDKEEPING, REPORTING,

AND PROCESSING
Section 4.1. Intent. The Parties acknowledge and agree that this Agreement confers substantial private benefits on the Developer that will place burdens on City infrastructure, services, and neighborhoods and that the private benefits provided to the developer should be balanced with commensurate “Annual Community Benefits Fees” and “Quarterly Community Benefits Fees” for the community (collectively, “Community Benefits”).

Section 4.2. Community Benefits Fees. Developer shall be obligated to pay to the City Community Benefits and shall be submitted to the City as described in further detail in this Section

4.2. a. “Quarterly Community Benefits Fees.” Within twenty (20) days following the conclusion of each City fiscal year quarter following the City’s issuance of a Business Regulatory Permit for the Project, Developer shall pay the City a sum of money which is equivalent to seven percent (7%) of Gross Receipts for the preceding quarter.
b. “Annual Community Benefits Fees.” Developer shall make a payment to the City in the amount of One Hundred Thousand Dollars ($100,000) by the Effective Date of this Agreement. Each following calendar year, the Developer shall make an annual payment to the City in the amount of One Hundred Thousand Dollars ($100,000) no later than January 15th of each subsequent calendar year. c. In accordance with the Development Agreement Procedures, no less than eighty percent (80%) of the monetary value of the received Community Benefits shall be deposited into a dedicated account set up by the City (“Community Benefits Fund”). Expenditures from the Community Benefits Fund shall be dedicated to youth and educational programming and resources for the City’s housing programs, as detailed below. All projects funded in part or in whole by the Community Benefits Fund shall be subject to City Council approval. i. Public benefits for youth and educational programming shall be dedicated to the City’s Recreational Department and be utilized for but not limited to youth programming, after-school programs, sports programming, personal enrichment classes or capital improvements on City-owned properties. ii. Public benefits for the City’s housing programs shall be dedicated toward the Community Development Department and shall be utilized for housing programming and long-range planning, including but not limited to affordable housing, rent stabilization and tenant protection efforts and other planning efforts.

Section 4.3. Cost Recovery Fees. Developer shall be responsible for the processing and monitoring costs related to the Project, including the processing and execution of this Agreement (collectively, “Cost Recovery Fees”) as described in this Section 4.3. a. Processing Fees. Processing fees shall include the direct and indirect costs that the City incurs in reviewing, processing and executing the Conditional Use Permit, this 112Exhibit 2

16 Agreement, and Additional City Approvals, including without limitation, staff time, legal fees, and consultant fees.
b. Monitoring Fees. Monitoring fees shall include the direct and indirect costs that the City incurs in inspecting, monitoring, investigating, and conducting compliance and enforcement actions for the purpose of confirming that the Project is in accordance with the terms of this Agreement, conditions of approval associated with the Conditional Use Permit, the operating procedures set forth in Chapter 5.64 of the Bell Gardens Municipal Code and Business Regulatory Permit, the Bell Gardens Municipal Code, and California Cannabis Laws.
c. Billing and Payment. The City shall submit an invoice to Developer for Cost Recovery Fees on or before the fifth day of each month following the Effective Date of this Agreement if any costs subject to reimbursement are incurred. Owner shall pay the invoice within thirty (30) days of the date of the invoice issuance.

Failure to timely pay Cost Recovery Fees shall be subject to the penalties and interest set forth in Sections 4.7 and 4.8 of this Agreement.

Section 4.4. Statement of Receipts/Audits. Developer shall keep complete, accurate and appropriate books and records of all receipts from operations in accordance with generally accepted accounting principles for a minimum of five (5) years. For purposes herein, “books and records” shall mean all bookkeeping or accounting documents Developer typically utilizes in managing its business operations relating to the Project. Such books and records, as well as all other relevant documents as the City Manager may reasonably require, shall, upon reasonable written notice, be open for inspection by the City, its auditors or other authorized representatives.

If any time during the term such books and records prove inadequate in the reasonable judgement of City to record the Gross Receipts from Project operations as required herein, Developer shall, upon written request by the City, procure and maintain such books and records as shall be the character and from adequate for such purpose. City shall have the right to audit and examine such books, records, and documents at any time upon reasonable request by the City, to the extent necessary for proper determination of Gross Receipt from Project operations, and all such books, records, documents, and other items shall be held available for such audit and examination.

Section 4.5. Tax Filings. Developer shall provide City with a courtesy copy of each and every report that Developer is required to provide to the County of Los Angeles and the California Department of Tax and Fee Administration for sales, use, and other tax purposes at the time such filings are made.

Section 4.6. Quarterly Reports. In addition to the recordkeeping requirements set forth in this Agreement, within twenty (20) days following the conclusion of each City fiscal year quarter following the City’s issuance of a Business Regulatory Permit for the Project, Developer shall submit a written “Quarterly Report” to the City Community Development Director showing:
a. Gross Receipts for the immediate prior City fiscal quarter received by the Developer; and
b. A calculation of Quarterly Community Benefits Fees due to the City from Developer for the immediate prior City fiscal quarter.

Section 4.7. Non-Payment Penalty. If Developer fails to make a timely payment concerning Community Benefits Fees or Cost Recovery Fees, as required by this Agreement, the 113Exhibit 2

17 City may impose a “Non-Payment Penalty.” A Non-Payment Penalty of one percent (1%) shall be applied to all past due Community Benefits Fees or Cost Recovery Fees. The City shall deliver to Developer a “Notice of Non-Payment Penalty.” Payment of the Non-Payment Penalty shall be in a single installment due on or before a date fifteen (15) days following delivery of the Notice of Non-Payment Penalty.

Section 4.8. Interest on Unpaid Non-Payment Penalty. If Developer fails to timely pay the Non-Payment Penalty after City has delivered the Notice of Non-Payment Penalty, then, in addition to the principal amount of the Non-Payment Penalty, Developer shall pay City interest at the rate of eighteen percent (18%) per annum, computed on the principal amount of the Non- Payment Penalty, from a date fifteen (15) days following delivery of the Notice of Non-Payment Penalty.

Section 4.9. Recordkeeping. Records for Community Benefits, including payroll records for compliance with Section 4.4, shall be maintained in accordance with California Cannabis Laws. City staff shall have access to such records upon request for monitoring and compliance purposes.

Section 4.10. City Cannabis Tax. Should the City voters enact a tax or taxes applicable to the Developer with regard to it carrying out of Cannabis Retail Activities in the City, the parties shall meet and confer in good faith to amend this Article in light of such tax, pursuant to Section

1.10 of this Agreement.

ARTICLE 5

INSURANCE AND INDEMNIFICATION
Section 5.1. General Liability Insurance. Developer shall maintain comprehensive general liability insurance issued by a California admitted insurance carrier whose Best Insurance Guide, current edition insurance rating is not less than “B+(vii)” with a per-occurrence combined single limit of not less than Two Million Dollars ($2,000,000) with a claim deduction not more than One Hundred Thousand Dollars ($100,000) per claim. Such insurance policy shall name the City and City’s elected and appointed councils, boards, commissions, legislative bodies, officials, employees, and representatives as “Additional Insureds” by endorsement with respect to the performance of this Agreement and shall include either a severability of interest clause or cross- liability endorsement and other customary and reasonable endorsements and provisions approved by the City’s risk manager.

Section 5.2. Workers’ Compensation Insurance. Developer shall maintain workers’ compensation insurance for all its employees employed at or on the Project. Developer shall require each contractor and subcontractor working at or on the Project to provide workers’ compensation insurance for its respective employees. Developer indemnification of City set forth in Section 5.4 of this Agreement shall apply to Developer’s failure to maintain any such insurance.

Section 5.3. Evidence of Insurance. Evidence of the insurance in favor of the City required under Section 5.1 shall be provided to the City as of the Effective Date. Thereafter, no Business Regulatory Permit for the Project shall be valid unless and until Developer furnishes satisfactory evidence of the other insurance required in Article 5 of this Agreement. In each case, the evidence of insurance provided to the City shall include satisfactory evidence that the insurance carrier shall give the City at least fifteen (15) days’ prior notice of the cancellation or reduction in coverage of each policy of insurance required in Article 5 of this Agreement. 114Exhibit 2

18 Section 5.4. Indemnification. The Developer and Property Owner, jointly and severally, agree to indemnify, defend with counsel acceptable to City, and hold harmless the City and City’s elected and appointed councils, boards, commissions, legislative bodies, officials, employees, and representatives from any and all claims, costs (including legal fees and costs), or liabilities of any kind arising out of or connected to any act or omission of Developer, Property Owner, or Developer’s or Property Owner’s contractor, subcontractor, agent, or representative related to its establishment or operation of the Project or arising out of or related to the approval or issuance of any permit, license, or approval by the City for the Project, except to the extent such claims, costs, and liabilities are caused by the sole negligence or willful misconduct of the City.

Developer and Property Owner agree that they shall be jointly and severally responsible for all costs incurred by the City in the event of a third-party challenge related to such claims, costs, or liabilities.

Section 5.5. Cooperation in Event of Legal Challenge. Developer and Property Owner shall defend and indemnify the City and the City’s elected and appointed councils, boards, commissions, legislative bodies, officials, employees, and representatives from any claim, action, liability, or proceeding that seeks to attack, set aside, void, or annul the Project or any of the proceedings, acts, or determinations taken, done, or made as a result of the City’s processing and approval of the Project. Developer and Property Owner’s obligation to defend and indemnify the City hereunder shall apply to any lawsuit or challenge alleging failure to comply with the requirements of any federal, state, or local law, including, but not limited to, general plan and zoning requirements and the CEQA. Developer and Property Owner’s obligations under this Section 5.5 shall include, but not be limited to, payment of all court costs and attorneys’ fees, all litigation-related costs, all costs of judgments and awards against the City, and all settlement costs, which arise out of the City’s processing and approval of the Project. The City shall notify the Developer and Property Owner promptly of any claim, action, or proceeding and reasonably cooperate in the defense. Upon receipt of such notification, the Developer and Property Owner shall assume the defense of the claim, action, or proceeding, including the employment of counsel satisfactory to the City, which approval shall not be unreasonably withheld. In the event of a disagreement between the Parties over litigation issues, the City shall have the authority to control the litigation and make litigation decisions for the City, including, but not limited to, settlement, or other disposition of the matter. If the City reasonably determines that having common counsel would create a conflict of interest between itself and Developer and/or Property Owner, then the City may hire counsel for its own defense, and Developer and Property Owner shall jointly and severally pay the City the reasonable attorneys and costs of such counsel within thirty (30) days after receiving an itemized invoice from the City. Developer and Property Owner shall further pay for all costs and fees related to any additional investigation or study, or for supplementing or revising any document, including, without limitation, environmental documents for the Project.

Section 5.6. Failure to Indemnify. The failure of Developer or Property Owner to indemnify the City, as required by this Agreement, shall constitute a material breach of this Agreement and of any applicable Conditional Use Permit, Business Regulatory Permit, and Additional City Approvals, which shall entitle the City to all remedies available under law, including, but not limited to, specific performance and damages. Failure to indemnify shall constitute grounds upon which the City may rescind its approval of any entitlement, permit, or license related to the Project, or any portion thereof, and a waiver of Developer or Property Owner’s right to file a claim, action, or proceeding against the City and City’s elected and appointed councils, boards, commissions, legislative bodies, officials, employees, and representatives based upon the City’s rescission or revocation of any applicable Conditional Use Permit, Business Regulatory Permit, and Additional City Approvals, or City’s failure to defend 115Exhibit 2

19 any claim, action, or proceeding based upon Developer or Property Owner’s failure to indemnify the City.

Section 5.7. Waiver of Damages; Referendum. Notwithstanding anything in this Agreement to the contrary, the Parties acknowledge that City would not have entered into this Agreement had it been exposed to liability for damages from the Developer and, therefore, the Developer and Property Owner hereby waive all claims for damages against City for breach of this Agreement. The Developer and Property Owner further acknowledge that under the Development Agreement Statute, land use approvals (including development agreements) must be approved by the City Council and that, under law, the City Council's discretion to vote in any particular way may not be constrained by contract. The Developer and Property Owner therefore waive all claims for damages against City in the event that this Agreement or any Project approval is: (1) not recommended for approval or approved by the Planning Commission, City Council (as the case may be); or (2) is approved by the City Council, but with new changes, amendments, conditions, or deletions to which Developer and/or Property Owner is opposed. Developer further acknowledges that, as an instrument which must be approved by ordinance, this Agreement is subject to referendum; and that, under law, the City Council's discretion to avoid a referendum by rescinding its approval of the underlying ordinance may not be constrained by contract, and Developer and Property Owner waive all claims for damages against City in this regard.

Section 5.8. Initiative Measures/Moratoria. The Parties intend this Agreement to be a legally binding contract which shall be exempt from any initiative measure or land use moratorium affecting the consideration and approval of parcel or subdivision maps (whether tentative, vesting tentative or final), building permits, occupancy certificates or other entitlements to use approved, issued or granted within the City. This Agreement shall apply to the Project to the extent such initiative measure or municipal moratorium or other limitation is inconsistent or in conflict with this Agreement. Should an initiative measure or moratorium or other limitation be enacted by the citizens of City which would preclude construction of all or any part of the Project, and to the extent such initiative, measure, moratorium, referendum, statute, ordinance, or other limitation be determined by a court of competent jurisdiction to invalidate or prevail over all or any part of this Agreement, neither Developer nor Property Owner shall have recourse against City pursuant to this Agreement for damages. The foregoing shall not be deemed to limit right of Developer or Property Owner to appeal any such determination that such initiative measure, moratorium, or other limitation invalidates or prevails over all or any part of this Agreement. The City agrees to cooperate with Developer or Property Owner in all reasonable manners in order to keep this Agreement in full force and effect, provided that Developer or Property Owner shall, jointly and severally, be obligated to reimburse the City for its actual and reasonable expenses incurred directly in connection with such cooperation and the City shall not be obligated to institute a lawsuit or other court proceedings in such cooperation.

Section 5.9. Bankruptcy. The obligations of this Agreement shall not be dischargeable in bankruptcy.

ARTICLE 6

MORTGAGEE PROTECTION
Section 6.1. Mortgagee Protection. This Agreement, once executed and recorded, shall be superior and senior to any lien placed upon the Site and any portion thereof following recordation of this Agreement, including the lien of any deed of trust or mortgage (“Mortgage”).

Notwithstanding the foregoing, no breach hereof shall defeat, render invalid, diminish, or impair the lien of any Mortgage made in good faith and for value. 116Exhibit 2

20 ARTICLE 7

ANNUAL REVIEW
Section 7.1. Annual Review. During the Term of this Agreement, the City shall annually review Developer’s good faith compliance with this Agreement. This periodic review shall be limited in scope to good faith compliance with the provisions of this Agreement, Conditional Use Permit and its associated conditions of approval, Business Regulatory Permit, California Cannabis Laws, the Bell Gardens Municipal Code and related statues and regulations.

Developer shall bear the burden of demonstrating good faith compliance with the foregoing requirements.

Section 7.2. Timing of Annual Review. No later than thirty (30) days prior to the yearly anniversary of the Effective Date of this Agreement, Developer shall submit to the Community Development Director evidence of compliance pursuant to Section 7.1 above. The City reserves the right to request additional information necessary to demonstrate Developer’s good faith compliance. The Community Development Director or his or her designee shall report to the Planning Commission its determination of compliance through the submission of a staff report with a determination as to the Developer’s compliance, to be considered at a future Planning Commission hearing. If the Community Development Director determines that Developer is in Default pursuant to Section 8.1, the City shall follow the procedures provided pursuant to Article

8. Section 7.3. Staff Reports. To the extent practical, the City shall deliver to the Developer a copy of all staff reports and related exhibits concerning the Developer’s performance under the Agreement within three (3) Business Days preceding Planning Commission review.

Section 7.4. Fee for Annual Review. The reasonable cost for the City’s annual review of this Agreement shall be paid by Developer, not to exceed the actual costs incurred by the City in connection with such review, inclusive of those costs incurred by consultants and legal fees as a part of Cost Recovery Fees. The Developer shall pay such costs to the City within thirty (30) days following the receipt of a written invoice from the City.

ARTICLE 8

DEFAULT, REMEDIES, AND ESTOPPEL CERTIFICATES
Section 8.1. Default. The failure of either Party to perform any obligation or duty under this Agreement within the time required by this Agreement shall be a default and after the giving of notice and the passage of the applicable amount of time, such a default shall constitute an event of default.

Section 8.2. Notice. The “Complaining Party” may not assert that an event of default has occurred against the “Defaulting Party” unless the Complaining Party has first given written notice to the Defaulting Party, specifying the nature of the default and the manner in which the default may be cured, if known to the Complaining Party. Any failure or delay by the Complaining Party in giving such notice shall not waive such default or waive any of the Complaining Party’s remedies.

Section 8.3. Cure. The Defaulting Party shall have thirty (30) days from the receipt of notice to cure the default except as provided in the next sentence. In the case of non-monetary defaults, if the default cannot be reasonably cured within such time, the default shall be deemed cured if:
117Exhibit 2

21 a. The cure is commenced at the earliest practicable date following receipt of notice; b. The cure is diligently prosecuted to completion;
c. At the earliest practicable date (but in no event later than ten (10) days after receiving the notice of default), the Defaulting Party provides written notice to the Complaining Party that the cure cannot be reasonably completed within such thirty (30) day period; and
d. The default is cured at the earliest practicable date, but in no event later than sixty (60) days after receipt of the first notice of default.

However, in the case of a monetary default (e.g., failure to make the payments to the City of fees or other costs required under this Agreement), any such default must be cured by the payment of the amount demanded within such thirty (30) day period.

Section 8.4. Failure to Cure Default Procedures. If after the cure period has elapsed, the City Manager finds and determines that Developer remains in default and that the City intends to terminate or modify this Agreement, the Community Development Director shall make a report to the Planning Commission and then set a public hearing in accordance with the local and state notice and hearing requirements. If after public hearing, the Planning Commission finds and determines, on the basis of substantial evidence that Developer remains in default and that the City intends to terminate or modify this Agreement, the Developer shall be entitled to appeal that to the City Council.

Section 8.5. Appeals to City Council. If Developer wishes to appeal the Planning Commission’s determination pursuant to Section 8.4, such appeal shall be taken within fourteen (14) days after notice of the determination is effectuated pursuant to Section 9.2 of this Agreement.

The City Council shall act upon the Planning Commission’s determination within sixty (60) days of the appeal. The failure by City Council to act within this prescribed time period shall not be deemed to be a denial or approval of the appeal and shall remain pending until final City Council action.

Section 8.6. Remedies. If the Defaulting Party fails to cure a default in accordance with the foregoing, an event of default shall be deemed to have occurred and the Complaining Party shall have the right to seek all appropriate remedies, at law or in equity, including specific performance, modification or termination of this Agreement without further or separate notice to the Defaulting Party.

Section 8.7. Estoppel Certificates.
a. City shall, upon not less than thirty (30) days prior written notice, execute, acknowledge, and deliver to Developer, Developer's lender, potential investors, or assignees an estoppel certificate in writing which certifies that this Agreement is in full force and effect, that there are no breaches or defaults under the Agreement except as described in such estoppel certificate, and that the Agreement has not been modified or terminated and is enforceable in accordance with its terms and conditions.
b. The City may recover its actual and reasonable costs and attorneys’ fees in connection with the timely dealing of any such estoppel certificate. City shall provide Developer with a written invoice of such costs to be paid by Developer within thirty (30) days of issuance. 118Exhibit 2

22 ARTICLE 9

ADDITIONAL GENERAL/MISCELLANEOUS PROVISIONS
Section 9.1. Assignment.
a. City Council Approval Required. Developer shall not have the right to sell, assign, or transfer all or any part of its rights, title, duties, obligations, and interests in all or a portion of Site, or Project, subject to or a part of this Agreement, to any individual, firm, corporation, partnership, or entity during the Term of this Agreement without the advance approval by the City Council through a majority vote. This assignment prohibition also applies to the corporate and business entities of Developer that are a Party to this Agreement. Developer shall initiate a request for the sale, assignment, or transfer of the rights, title, duties, obligations and interests in the Site or Project that is part of this Agreement by submitting a written request to the City Manager. The proposed transferee must provide evidence and any other documents required by the City to evidence compliance with California Cannabis Laws, the Bell Gardens Municipal Code and their related statutes and regulations and any other information deemed necessary to effectuate the transfer. b. Escrow Account. When making a written request to City Manager for the assignment of rights pursuant to this Agreement, Developer shall open an escrow account and deposit an amount of five thousand dollars ($5000) into the escrow account. If the direct and indirect costs of staff time, consultant fees, legal fees and other costs exceed the deposited amount prior to a City Council vote pursuant to subsection (a) above, the City reserves the right to require Developer to deposit an additional five thousand dollars ($5000) into the escrow account to cover direct and indirect costs. Any unused fees remaining in the escrow account following the City Council vote shall be returned to Developer no later than thirty (30) days after the City Council action.
c. Renegotiation of Community Benefits. The City reserves the right to renegotiate Community Benefits with the proposed transferee pursuant to Article 4. d. Effectuation of Assignment. Any sale, assignment, or transfer of the rights, obligations, or interests in this Agreement shall only be effective upon the issuance of a Business Regulatory Permit to the party to whom such sale, assignment, or transfer is made as required by Chapter 5.12 and Section 5.64.020 of the Bell Gardens Municipal Code. Any assignment or transfer prohibited by this Agreement will be considered an immediate material breach of this Agreement and City may elect to immediately terminate this Agreement.
e. Assumption of Obligations. Upon the effectuation of an assignment pursuant to subsection (d) above, the transferee shall expressly and unconditionally assume all rights and obligations of the Developer pursuant to this Agreement.

Section 9.2. Notices. All notices permitted or required under this Agreement shall be given to the respective Parties must be in writing and may be given personally, by registered or certified mail (return receipt requested), Federal Express, UPS or other similar couriers. If notice is personally delivered, the notice shall be deemed to have been given and received on the date notice was given. If given by registered or certified mail, such notice or communication shall be deemed to have been given and received three (3) days after the notice is deposited in the United 119Exhibit 2

23 States mail. If notice is given by Federal Express, UPS, or similar courier, a notice or communication shall be deemed to have been given and received on the date delivered, as shown on the receipt issued by the courier. Notice shall be provided to the following addresses:

DEVELOPER: CITY:

OTC Bell Gardens, LLC
23 Corporate Plaza Drive, #150
Newport Beach, CA 92660
Attn: Norman Yousif
(949) 291-0587
[email protected]

City of Bell Gardens
7100 Garfield Ave.

Bell Gardens, California 90201
Attn: Michael B. O’Kelly, City Manager
(562) 806-7702
[email protected]

PROPERTY OWNER: CITY ATTORNEY:

Kim Dae Ho & Hye Yeong Olivarez Madruga Law Organization, LLP 5201 E. 28th Street 500 South Grand Ave, 12th Floor
Long Beach, CA 90815 Los Angeles, CA 90071
(562) 519-1079 Attn: Stephanie Vasquez
[email protected] (213)-744-0099
[email protected]

Section 9.3. Governing Law and Venue. This Agreement shall be interpreted and governed according to the laws of the State of California. In the event of litigation between the Parties, venue, without exception, shall be in the Los Angeles County Superior Court of the State of California. If, and only if, applicable law requires that all or part of any such litigation be tried exclusively in federal court, venue, without exception, shall be in the Central District of California located in the City of Los Angeles, California.

Section 9.4. Severability. If this Agreement in its entirety is determined by a court to be invalid or unenforceable, this Agreement shall automatically terminate as of the date of final entry of judgment. If any term or provision of this Agreement shall be determined by a court to be invalid and unenforceable, or if any term or provision of this Agreement is rendered invalid or unenforceable according to the terms of any federal or state statute, any provisions that are not invalid or unenforceable shall continue in full force and effect and shall be construed to give effect to the intent of this Agreement. The Parties expressly agree that each Party is strictly prohibited from failing to perform any and all obligations under this Agreement on the basis that this Agreement is invalid, unenforceable, or illegal. By entering into this Agreement, each Party disclaims any right to tender an affirmative defense in any arbitration or court of competent jurisdiction, that performance under this Agreement is not required because the Agreement is invalid, unenforceable, or illegal.

Section 9.5. Constructive Notice and Acceptance. Every person who after the Effective Date and recording of this Agreement owns or acquires any right, title, or interest to any portion of the Site is and shall be conclusively deemed to have consented and agreed to every provision contained herein, whether or not any reference to this Agreement is contained in the instrument by which such person acquired an interest in the Site, and all rights and interests of such person in the Site shall be subject to the terms, requirements, and provisions of this Agreement.
120Exhibit 2

24 Section 9.6. Joint and Several Liability. Developer and Property Owner shall be jointly and severally liable for all obligations imposed on either or both under this Agreement, including but not limited to any amount due under this Agreement pursuant to Section 1.11.

Developer and Property Owner agree that the City may impose a lien and seek foreclosure on any parcel of the Site due to any default by Developer. Such consent is additionally set forth in Exhibit “D” to this Agreement.

Section 9.7. Waiver. A waiver by any Party of any breach of any term, covenant, or condition herein contained or a waiver of any right or remedy of such Party available hereunder, at law or in equity, shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant, or condition herein contained or of any continued or subsequent right to the same right or remedy. No Party shall be deemed to have made any such waiver unless it is in writing and signed by the Party so waiving.

Section 9.8. Integration. This Agreement, together with its specific references, attachments, and Exhibits, constitutes all of the agreements, understandings, representations, conditions, warranties, and covenants made by and between the Parties hereto. Unless set forth herein, no Party to this Agreement shall be liable for any representations made, express or implied.

Section 9.9. Captions. The captions of this Agreement are for convenience and reference only and the words contained therein shall in no way be held to explain, modify, amplify, or aid in the interpretation, construction, or meaning of the provisions of this Agreement.

Section 9.10. Mandatory and Permissive. "Shall" and "will" and "agrees" are mandatory. "May" or "can" are permissive.

Section 9.11. Counterparts. This Agreement may be executed simultaneously and in several counterparts, each of which shall be deemed an original, but which together shall constitute one and the same instrument.

Section 9.12. Other Documents. The Parties agree that they shall cooperate in good faith to accomplish the objectives of this Agreement and, to that end, agree to execute and deliver such other instruments or documents as may be necessary and convenient to fulfill the purposes and intentions of this Agreement.

Section 9.13. Authority. All Parties to this Agreement warrant and represent that they have the power and authority to enter into this Agreement and the names, titles, and capacities herein stated on behalf of any entities, persons, states, or firms represented or purported to be represented by such entities, persons, states, or firms and that all former requirements necessary or required by state or federal law in order to enter into this Agreement had been fully complied with. Further, by entering into this Agreement, no Party hereto shall have breached the terms or conditions of any other contract or agreement to which such Party is obligated, which such breach would have a material effect hereon.

Section 9.14. Advice of Legal Counsel. Each Party acknowledges that it has had an opportunity to review this Agreement with its own legal counsel and, based upon the advice of that counsel, freely entered into this Agreement.

Section 9.15. No Third-Party Beneficiaries. This Agreement and all provisions hereof are made and entered into for the sole protection and benefit of the Parties and their successors and assigns. No other person shall have a right of action based upon any provision in this Agreement. 121Exhibit 2

25 Section 9.16. Public Agency Coordination. The Parties shall cooperate and use reasonable efforts in coordinating the implementation of the Project with other public agencies, if any, having jurisdiction over the Site or the Project.

Section 9.17. Restrictions. Property Owner shall place in any agreements to sell or convey any interest in the Site or any portion thereof, a provision making the terms of this Agreement binding on any successors in interest of Property Owner.

Section 9.18. Attorneys’ Fees and Costs. Unless otherwise provided in this Agreement, if any action at law or in equity, including action for declaratory relief, is brought by a Party to enforce or interpret provisions of this Agreement, the prevailing Party in such action shall be entitled to recover its reasonable attorneys’ fees and costs, which may be set by the court in the same action or in a separate action brought for that purpose, in addition to any other relief to which such Party may be entitled.

Section 9.19. Environmental Remediation and Testing. The Parties acknowledge that various environmental remediation and testing activities may be required on the Site and on lands adjacent to the Site. The Parties shall consult with responsible public agencies, as appropriate, in connection with such environmental remediation and testing activities. Developer and Property Owner shall ensure that the development or operation of the Project shall not unreasonably interfere with any such remediation and testing activities.

Section 9.20. Calculation of Time Period. All time referenced in this Agreement shall be calendar days, unless the last day falls on a legal holiday, Saturday, or Sunday, in which case the last day shall be the next business day.

Section 9.21. Recordation of Development Agreement. The City Clerk shall cause a copy of this Agreement to be recorded against title of the Site in accordance with state law.

[SIGNATURES APPEAR ON THE FOLLOWING PAGE]

122Exhibit 2

26 IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed as evidenced by the signatures of the authorized officers of each of them which appear below.

CITY

City of Bell Gardens, a municipal
corporation

By:

Michael B. O’Kelly
Bell Gardens City Manager

Date:

Approved as to Form

By:

Stephanie Vasquez
City Attorney

Date:

DEVELOPER

Mr. Nice Guy Bell Gardens, LLC
[Notarized Signature Required]

By:_______________________________

Name: ___________________________

Title:______________________________

Date:

PROPERTY OWNER

Patrick Martin & Zhirayr Khoshoryan
[Notarized Signature Required]

By:______________________________

Name:____________________________

Title:_____________________________

Date: ___

123Exhibit 2

27 EXHIBIT “A”

LEGAL DESCRIPTION OF SITE

124Exhibit 2

28 EXHIBIT “B”

SITE PLAN

125Exhibit 2

29 EXHIBIT “C”

FLOOR PLAN

126Exhibit 2

30 EXHIBIT “D”
PROPERTY OWNER’S CONSENT AGREEMENT

127Exhibit 2

31 EXHIBIT “E”

SECURITY PLAN

128Exhibit 2

CIT Y OF BE LL GARDENS

O F F I C E O F T HE C I T Y M ANAG E R

AG E ND A RE P O RT
I tem 7.

T O:Honorable Mayor and C ity C ouncil Members
F RO M : Michael B. O'Kelly, City Manager
B Y:Gustavo R omo, Deputy City Manager / D irector of Community D evelopment S UB J E C T:S E C O ND RE AD ING AND AD O P T IO N O F O RD INANC E NO. 944 T O RE G UL AT E AND

C O ND IT IO NAL LY P E RM IT B ANQ UE T FAC IL I T I E S IN I ND US T RIAL ZO NE S D AT E:J une 24, 2024
RE C O M M E ND AT IO N:

I t is staff’s recommendation that the City C ouncil waive f ull reading and adopt Ordinance No. 944 to amend C hapter

5.04 (Def initions) Of Title 5 (B usiness L icenses, Regulations and Taxes); and Chapter 9.14 (I ndustrial Z one), C hapter 9.20 (Special Uses and A pplicable Standards) and C hapter 9.38 (Parking and L oading (Off S treet)) of Title 9 (Z oning and Planning Regulations) of the B ell Gardens Municipal Code to regulate and conditionally permit banquet f acilities in I ndustrial Z ones.

B AC K G RO UND/D IS C US S I O N:

On J une 10, 2024, the City Council waived the f ull reading and introduced Ordinance No. 944, by title only, to amend the B ell Gardens Municipal Code (B G MC) Chapter 5.04 (Definitions) of Title 5 (B usiness L icenses, R egulations and Taxes) for banquet f acility uses, conditionally permit banquet facilities in Z one M-1, Chapter 9.14 (I ndustrial Z one), add development standards provisions in Chapter 9.20 (S pecial Uses and Applicable S tandards) of Title 9 (Z oning and P lanning R egulations), and amend Chapter 9.38 (Parking and L oading (Off S treet)) of Title 9 (Z oning and Planning R egulations) to establish new parking requirements for this use consistent with banquet facility parking standards in surrounding cities and waived further reading thereof. The C ouncil unanimously voted to introduce the ordinance.

C O NC L US I O N:

I f approved, Ordinance No. 944 would become effective 30 calendar days af ter approval. T he proposed ordinance would establish consistency with other heavy commercial and industrial zones that currently conditionally permit such uses. S taff recommends that the C ity C ouncil waive f ull reading and adopt Ordinance No. 944.

F I S C AL I M PAC T:

I f Ordinance No. 944 is adopted, implementation of the business regulatory and discretionary permitting required would be carried out in existing entitlement application processes with which f ees are already associated to achieve partial staf f time recovery. A pplicants would be responsible for the costs associated with processing of proposed projects. R evenue from initial and annually renewed business licenses would contribute to the General F und.

AT TAC HM E NT S :

D escription
Exhibit 1 - Ordinance No. 944
AP P RO V E D E L E C T RO NI C AL LY B Y:

Michael B . O'K elly, C ity Manager
129

S tephanie Vasquez, City Attorney and/or Susie A ltamirano, Assistant City Attorney Manuel Carrillo, Director of F inance and Administrative Services 130

ORDINANCE NO. 944

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BELL
GARDENS, CALIFORNIA, AMENDING CHAPTER 5.04 (DEFINITIONS) OF TITLE 5 (BUSINESS LICENSES, REGULATIONS AND TAXES); AND CHAPTER 9.14 (INDUSTRIAL ZONE), CHAPTER 9.20 (SPECIAL USES AND APPLICABLE STANDARDS) AND CHAPTER 9.38 (PARKING AND LOADING (OFF STREET)) OF TITLE 9 (ZONING AND PLANNING

REGULATIONS) OF THE BELL GARDENS MUNICIPAL CODE TO

REGULATE AND CONDITIONALLY PERMIT BANQUET FACILITIES IN

INDUSTRIAL ZONES

WHEREAS, the City of Bell Gardens (“City”) is a general law city, incorporated under the laws of the State of California; and

WHEREAS, pursuant to its police power, the City may enact and enforce laws within its boundaries which promote the public health, morals, safety, or general welfare of the community, and are not in conflict with general laws; and

WHEREAS, California Constitution Article XI, Section 7, enables cities to make and enforce local land use regulations; and

WHEREAS, the City’s General Plan (“General Plan”) articulates the community’s vision and is underscored by an effective Zoning Code in compliance with state law that protects the public health, safety, and welfare and enacts regulatory and enforcement controls to defend safe neighborhood character and minimize potential for negative impacts on people, the community, and the environment; and

WHEREAS, the General Plan’s Land Use Element Policy 3 emphasizes the City’s commitment to promote compatible commercial development to emphasize commercial identity and to enhance the appearance, potential economic vitality, and revitalization; and

WHEREAS, banquet facilities would be limited to commercial and industrial zones and subject to certain development standards and vehicle parking space requirements to promote compatible commercial development to emphasize commercial identity and to enhance the appearance, potential economic vitality, and revitalization and is therefore consistent with Policy 3; and

WHEREAS, the General Plan’s Land Use Element Policy 4 promotes the City’s encouragement to maintain and rehabilitate existing industrial uses and private investment in the City’s industrial economic base while ensuring compliance with necessary environmental requirements; and

131Exhibit 1

Ordinance No. 944

2 of 8

WHEREAS, Ordinance No. 944 encourages investment by authorizing consideration of banquet facilities that would be subject to a discretionary approval process and would be required to comply with all applicable state and local environmental requirements and is therefore consistent with Policy 4; and WHEREAS, the General Plan’s Land Use Element Policy 5 acknowledges the City’s support of providing an environment to stimulate local employment, property values, community stability, and the economic vitality of existing local businesses; and

WHEREAS, the introduction of a new use within the industrial zone will promote an economic diversity of the City’s industrial zones and provide local employment opportunities while still regulating the use in order to ensure community stability and economic vitality of existing businesses and is therefore consistent with Policy 5; and

WHEREAS, uses that are not listed in Table 9.14A of Chapter 9.14 (Industrial Zone) of Title 9 (Zoning and Planning Regulations) of the Bell Gardens Municipal Code (“BGMC”) are expressly prohibited; and
WHEREAS, conditionally permitting banquet facilities in Zone M-1 could significantly contribute to improvements in the City’s aesthetic and land use function in light of vacancies caused by the recent pandemic and in older buildings needing to be re-purposed; and

WHEREAS, the City finds it necessary to amend the BGMC to add language to enact provisions that authorize appropriate use standards for the banquet facilities; and

WHEREAS, the City seeks to amend zoning and planning regulations to address banquet facilities for private enterprise; and

WHEREAS, pursuant to California Government Code Sections 65854 and 65090, the Planning Commission conducted a duly noticed public hearing on May 15, 2024, and considered and reviewed all facts and evidence, both written and testimonial, and all other pertinent documents pertaining to Ordinance No. 944; and

WHEREAS, after the close of such public hearing, the Planning Commission adopted Planning Commission Resolution #PC 2024-13 recommending to the City Council the approval of Ordinance No. 944.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BELL GARDENS DOES ORDAIN AS FOLLOWS:

SECTION 1. Findings and Purpose. In adopting this Ordinance, the City Council finds and declares as follows:

132Exhibit 1

Ordinance No. 944

3 of 8

i. The above recitals are true and correct and incorporated. ii. Ordinance No. 944 serves the public health, safety, and welfare of the residents within the City by encouraging the innovative use of re-purposed land for community stability and economic vitality.
iii. Ordinance No. 944 is consistent with the City’s General Plan. iv. Ordinance No. 944 amending the BGMC presents no reasonably foreseeable risk to public health and safety.

SECTION 2. Chapter 5.04 (Definitions) of Title 5 (Business Licenses, Regulations and Taxes) of the BGMC, is amended to add the following Section 5.04.105 “Banquet Facility” to read (underlining denotes additions):

5.04.105 Banquet facility.
“Banquet facility” (also known as “reception hall”) shall mean an establishment that holds banquets for special celebration events such as weddings, anniversaries, birthdays, etc., on a pre-scheduled basis. As part of the service provided, the facility may serve alcohol and either catered food or food prepared on the premises, if proper facilities exist, and may have music and dancing specifically for the special event only.

SECTION 3. Section 9.14.030 (Permitted land uses) of Chapter 9.14 (Industrial Zone) of Title 9 (Zoning and Planning Regulations) of the BGMC, is amended to add the following use (underlining denotes additions):

Uses M-1 Special Requirements
A: Accessory Use C: Conditional Use P: Principal Use S: Site Plan Review (PC) T: Temporary Use
Banquet Facility C Refer to Chapter 9.04 BGMC, Definitions.

SECTION 4. Item C (Parking and Loading Facilities Matrix) of Section 9.38.050 (Required parking and loading spaces) of Chapter 9.38 (Parking and Loading (Off-Street)) of Title 9 (Planning and Zoning) of the BGMC, is amended and enacted as follows (underlining denotes additions):

Use Parking Spaces or Facilities Required

2. Commercial Uses
133Exhibit 1

Ordinance No. 944

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Use Parking Spaces or Facilities Required
Banquet
Facility

1. One parking space for each 50 square feet of assembly, waiting, reception, and dance floor area; and

2. One parking space for each four (4) fixed seats and for every 21 square feet of seating area where there is no fixed seat.

3. Industrial Uses
Banquet
Facility

1. One parking space for each 50 square feet of assembly, waiting, reception, and dance floor area; and

2. One parking space for each four (4) fixed seats and for every 50 square feet of seating area where there is no fixed seat.

SECTION 5. Chapter 9.20 (Special Uses and Applicable Standards) of Title 9 (Zoning and Planning Regulations) of the BGMC, is amended to add the following Section

9.20.170 “Banquet Facility – Conditional use” (underlining denotes additions):

9.20.170 Banquet Facility – Conditional use.

In addition to compliance with all other state and local statutes, ordinances, and regulations, the following regulations shall apply to banquet facilities where they are permitted by conditional use permit:

A. Location. The following locational requirements shall apply to all banquet facilities:

1. Proximity to residential zones. Banquet facilities shall not be located within a 500-foot radius of a residential zone.

B. Additional Development and Design Standards for banquet facilities. The following development and design standards shall apply to all banquet facilities, unless more restrictive conditions are imposed as a condition of approval:

1. Parking. A banquet facility shall be subject to the “banquet facility” parking requirements, as set forth in BGMC 9.38.050(C)(2) and (3).

2. Signage. All signage shall comply with the requirements set forth in Chapter

9.40 BGMC.
134Exhibit 1

Ordinance No. 944

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3. Windows. Windows facing the street frontage shall be clear untinted glass.

Mirrored, reflective, or tinted glass shall only be permitted as an architectural or decorative accent and shall not comprise more than twenty percent (20%) of the window.

4. Outdoor areas. Areas used for outdoor banquet facility areas shall not comprise more than twenty percent (20%) of the indoor banquet facility guest/patron areas and shall be fully enclosed with a decorative masonry wall and landscaping of at least three percent of the area. The commercial and noncommercial use of sound-amplifying equipment shall be subject to the regulations in BGMC 16.24.250 through 16.24.270 and 16.24.330.

C. Additional Application Requirements. Applications for a conditional use permit to permit a banquet facility retail use shall also provide the following documentation, in addition to the requirements set forth in BGMC 9.50.030:

1. A signed affidavit stating that upon a conditional approval of the banquet facility, prior to commencing operations of the banquet facility.

2. No guest or patron under 18 years of age shall be permitted in a banquet facility, unless accompanied by a parent or legal guardian. If alcohol is served or sold, the sale and consumption of alcohol to anyone under age 21 is prohibited. If less than forty percent (40%) of the floor area is devoted to dining use, including kitchen, the age limit of patrons shall be restricted to age 21.

D. A security plan shall be submitted to the Chief of Police for approval at the time the conditional use permit application request is filed with the City, and may include but need not be limited to the following:

1. “No loitering” signs posted and maintained at the entrance area and in the parking lot areas.

2. Adequate interior and exterior lighting to allow property surveillance by security personnel and/or police officers.

3. Certified trained security person(s), the number of which shall be determined by the Chief of Police, in addition to the manager of the business, in order to supervise the facility at all times during the hours of 6:00 p.m. to closing.

At least one security person in addition to the manager of the business shall be present at all other hours.

4. Security personnel shall be provided with clothing which allows them to be readily identifiable to patrons and police personnel.
135Exhibit 1

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5. A “house policy” regarding accepted patron behavior, intoxication, age restrictions, etc., shall be posted conspicuously at the entrance of the establishment, in the lobby and/or entrance area.

6. A security alarm system shall be placed on all points of ingress and/or egress to the operation.

7. A lighting plan for the exterior of the building and parking lot area shall be submitted for review and approval by the director of community development. Lighting of the exterior of the premises and the parking lot area shall comply with all applicable regulations of the BGMC and shall maintain an illumination level on the ground of not less than one-half foot- candle along walkways and in the open parking areas and driveways.

8. The commercial and noncommercial use of sound-amplifying equipment shall be subject to the regulations in BGMC 16.24.250 through 16.24.270 and 16.24.330.

9. The applicant shall comply with parking standards established in BGMC Chapter 9.38 (Parking and Loading (Off-Street)).

E. Any form of gambling activity is prohibited.

F. Alcohol. As part of the service provided, the facility may serve alcohol only in strict accordance with regulations of the State Department of Alcoholic Beverage Control and BGMC Section 9.20.050.

G. Upon consideration of the conditional use permit, the planning commission may also impose additional conditions of approval. (Ord. 934 § 6, 2023).

SECTION 6. Compliance with California Environmental Quality Act. The City Council determines that Ordinance No. 944 has been assessed in accordance with the California Environmental Quality Act (“CEQA”) (Pub. Res. Code § 21000 et seq.) and CEQA Guidelines (Cal. Code Regs., tit. 14, § 15000 et seq.). The City Council further determines that the Project is categorically exempt from the requirements of CEQA pursuant to CEQA Guidelines Section 15061(b)(3) (Common Sense Exemption). The approval of this ordinance would not result in any physical improvements or developments and future projects would be subject to discretionary review and subject to CEQA and environmental review. Therefore, it can be seen with certainty that the adoption of this ordinance would not result in any direct or indirect environmental impacts.

SECTION 7. If any section, subsection, sentence, clause, phrase, or portion of this Ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining 136Exhibit 1

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portions of this Ordinance. The City Council hereby declares that it would have adopted this Ordinance, and each section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, or portions might subsequently be declared invalid or unconstitutional.

SECTION 8. The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause this Ordinance to be published or posted as required by law, which shall take full force and effect thirty (30) days from its adoption.

PASSED, APPROVED and ADOPTED this 24th day of June 2024.

THE CITY OF BELL GARDENS

Gabriela Gomez, Mayor

APPROVED AS TO FORM: ATTEST:

Stephanie Vasquez Daisy Gomez
City Attorney City Clerk

[Signatures on the following page]

137Exhibit 1

Ordinance No. 944

8 of 8

I, Daisy Gomez, City Clerk of the City of Bell Gardens, hereby CERTIFY that City Council Ordinance No. 944 was introduced and placed upon its first reading at a regular meeting of the Bell Gardens City Council held on _______, and that thereafter said ordinance was duly adopted at a regular meeting of the Bell Gardens City Council held on Monday, June XX, 2024 and was approved and passed by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:
_______________________________
Daisy Gomez
City Clerk

138Exhibit 1

CIT Y OF BE LL GARDENS

O F F I C E O F T HE C I T Y M ANAG E R

AG E ND A RE P O RT
I tem 8.

T O:Honorable Mayor and C ity C ouncil Members
F RO M : Michael B. O'Kelly, City Manager
B Y:Gustavo R omo, Deputy City Manager/C ommunity Development D irector S UB J E C T:C O NS I D E RAT IO N O F F IRS T AM E ND M E NT T O P RO F E S S I O NAL S E RV I C E S

AG RE E M E NT B E T WE E N T HE C I T Y O F B E L L G ARD E NS AND I M PAC T S C IE NC E S , INC .

D AT E:J une 24, 2024
RE C O M M E ND AT IO N:

I t is staf f ’s recommendation that the City Council:

1. D etermine the action exempt f rom the provisions of the C alif ornia Environmental Quality A ct (C E Q A ) pursuant to S tate C E Q A Guidelines Section 15060(c)(3); and

2. Adopt the attached resolution approving a F irst A mendment to the Professional Services Agreement between the City and I mpact S ciences, I nc. to accommodate alignment with grant funding term used to develop the impending E nvironmental J ustice E lement to the B ell Gardens General P lan.

B AC K G RO UND/D IS C US S I O N:

On J une 8, 2020, the Bell Gardens C ity C ouncil adopted a resolution authorizing the submittal of a grant application for the L ocal E conomic A ssistance Program (L E A P ), which is administered by the C alif ornia Department of Housing and C ommunity Development (HUD ).

T he City was awarded $150,000 to be used for projects addressing accessibility, sustainability, and resiliency aimed at protecting the public's health, safety, and welf are. T he award was given based on the department's application that demonstrated proposed activities to f oster an increase in housing-related planning activities, facilitate accelerated housing production within the City, and promote environmental justice.

To address the C ity’s needs for an Environmental J ustice (E J ) E lement as mandated by S B 1000 and S B 379 and abide by the L E A P grant requirements, staff prepared and released a Request f or P roposals (R F P ) on A ugust 1, 2022.

T he R F P requested a scope of services proposal to prepare a S ustainability/E J E lement f or the B ell Gardens General P lan that would address the inequitable distribution of pollution and associated health ef f ects in disadvantaged and identif ied environmental justice communities.

On November 14, 2022, the City approved a Professional S ervices Agreement (P S A ) with I mpact S ciences, I nc. (I S I ) with a term expiring on J une 30, 2024. I S I has conducted the necessary stakeholder and community engagement to ensure extensive and diverse community input throughout each phase of work towards the development of the E J Element. On A pril 17, 2024, the Planning C ommission adopted Resolution #P C 2024-09 recommending the C ity C ouncil approve General P lan A mendment No. 2022-060 to create and incorporate a new E J Element into the Bell Gardens General Plan.
139

R ecently, the California Department of Housing and C ommunity D evelopment clarified the L E A P grant term funding reporting period to expire December 31, 2024. An amendment to the P S A is required to extend the term through D ecember 31, 2024, to allow I S I to continue to provide the C ity consulting services.

E NV IRO NM E NTAL RE V I E W
Pursuant to the C E Q A , G uidelines S ection No. 15060(c)(3), this report is categorically exempt as organizational or administrative activities of governments that result in no direct or indirect physical changes in the environment are exempt from the C E Q A since the activity is not considered a project.

C O NC L US I O N:

Given their work so f ar and the additional steps required to finalize the adoption of the E J E lement to identif y objectives and policies to reduce unique and/or compounded health risks, promote civic engagement, and address the needs of disadvantaged communities, staff recommends that the City Council approve a First Amendment to the P S A.

F I S C AL I M PAC T:

Approval of the First A mendment and adoption of the attached Resolution would have no fiscal impact to the City since City staf f and time, as well as that of the consultants and other supported parties, are funded in full by the L E A P grant.

AT TAC HM E NT S :

D escription
Exhibit 1 - Resolution No. 2024-46
Exhibit 2 - F irst A mendment to I mpact S ciences P S A AP P RO V E D E L E C T RO NI C AL LY B Y:

Michael B . O'K elly, C ity Manager
S tephanie Vasquez, City Attorney and/or Susie A ltamirano, Assistant City Attorney Manuel Carrillo, Director of F inance and Administrative Services 140

RESOLUTION NO. 2024-46

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BELL

GARDENS, CALIFORNIA, APPROVING A FIRST AMENDMENT

TO THE PROFESSIONAL SERVICES AGREEMENT BY AND

BETWEEN THE CITY OF BELL GARDENS AND IMPACT
SCIENCES, INC.

WHEREAS, on January 17, 2023, the Parties executed and entered into the Master Agreement for Consultant to provide consulting services to the Community Development Department to address and create a mandated EJ Element complying with SB 1000 (2016) and SB 379 (2015); and

WHEREAS, the Master Agreement is set to expire on June 30, 2024; and

WHEREAS, the Parties wish to modify the Master Agreement to extend the Term of the Agreement through December 31, 2024 to allow Impact Sciences to continue providing consulting services to finalize the EJ Element.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Bell Gardens as follows:

SECTION 1. The City Council, after consideration of the staff report and discussion, hereby finds that the above recitals are true and correct and incorporates them herein.

SECTION 2. Based upon the above recitals, the staff report accompanying this Resolution, and such other oral and written evidence, the Bell Gardens City Council hereby approves a First Amendment to the Agreement with Impact Sciences, Inc., which is attached to the staff report as Exhibit 2.

SECTION 3. The City Council further authorizes and directs the City Manager to execute the First Amendment and take all actions necessary and appropriate to implement and effectuate the intent of the City Council as set forth in this Resolution.

SECTION 4. The City Clerk shall attest and certify to the passage and adoption of this Resolution and enter it into the book of original resolutions, and it shall become effective immediately upon its approval.

141Exhibit 1

Resolution No. 2024-46
2 of 3

PASSED, APPROVED and ADOPTED this 24th day of June, 2024.

THE CITY OF BELL GARDENS

___________________________
Gabriela Gomez, Mayor

APPROVED AS TO FORM: ATTEST:

________________________________ ___________________________ Stephanie Vasquez Daisy Gomez
City Attorney City Clerk

[Signatures on the following page]

142Exhibit 1

Resolution No. 2024-46
3 of 3

I, ____________________, City Clerk of the City of Bell Gardens, hereby CERTIFY that City Council Resolution No. ___________was adopted by the Bell Gardens City Council at a regular meeting of the City Council held on ___________________, and was approved and passed by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:
__________________________
Daisy Gomez
City Clerk

143Exhibit 1

1 2024

FIRST AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT
(Engagement: General Plan Sustainability or Environmental Justice Element and Associated CEQA Compliance Document)
(Parties: City of Bell Gardens and Impact Sciences, Inc.)

THIS FIRST AMENDMENT (hereinafter, “First Amendment”) to that certain agreement entitled “Professional Services Agreement” and dated January 17, 2023 (hereinafter, “Master Agreement”), is hereby made and entered into this day of , 2024 (hereinafter, “Effective Date”) by and between CITY OF BELL GARDENS, a municipal corporation (hereinafter, “City”) and IMPACT SCIENCES, INC. (hereinafter, “Consultant”). For purposes of this First Amendment, the capitalized term “Parties” shall be a collective reference to both City and Consultant. The capitalized term “Party” may refer to either City or Consultant interchangeably, as appropriate.

RECITALS

This First Amendment is made and entered into with respect to the following facts:

WHEREAS, on January 17, 2023, the Parties executed and entered into the Master Agreement for Consultant to provide consulting services to the Community Development Department to address and create a mandated EJ Element complying with SB 1000 (2016) and SB 379 (2015); and

WHEREAS, the Master Agreement is attached and incorporated hereto as Exhibit “A”; and

WHEREAS, pursuant to terms of the Master Agreement, the Master Agreement is set to expire on June 30, 2024; and

WHEREAS, the Parties wish to extend the Term of the Master Agreement to allow Consultant to continue to provide City with consulting services to finalize the EJ Element; and

NOW, THEREFORE, in consideration of the mutual agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound hereby, the Parties agree as follows:

SECTION 1. Section 4 (TERM) of the Master Agreement is hereby amended to extend the Term of the Master Agreement through December 31, 2024.

SECTION 2. Except as otherwise set forth in this First Amendment, the Master Agreement shall remain binding, controlling, and in full force and effect. Section 18.9 of the Master Agreement notwithstanding, this First Amendment, together with the Master 144Exhibit 2

2 Agreement, shall constitute the entire, complete, final, and exclusive expression of the Parties with respect to the matters addressed in both documents.

SECTION 3. The provisions of this First Amendment shall be deemed a part of the Master Agreement and except, as otherwise provided under this First Amendment, the Master Agreement and all provisions contained therein shall remain binding and enforceable. In the event of any conflict or inconsistency between the provisions of this First Amendment and the provisions of the Master Agreement, the provisions of this First Amendment shall control, but only in so far as such provisions conflict with the Master Agreement, and no further.

[SIGNATURES ON NEXT PAGE]

145Exhibit 2

3 IN WITNESS WHEREOF, the Parties hereto have caused this First Amendment to be executed on the day and year first appearing above.

CITY:

CITY OF BELL GARDENS

By:__________________________________
Michael B. O’Kelly, City Manager

Date:

APPROVED AS TO FORM:

By:__________________________________
Stephanie Vasquez, City Attorney

CONSULTANT:

IMPACT SCIENCES, INC.

By:____________________________

Name:_________________________

Title: __________________________

Date:

146Exhibit 2

4 EXHIBIT “A”

MASTER AGREEMENT

147Exhibit 2

1 2022

PROFESSIONAL SERVICES AGREEMENT
(Engagement: General Plan Sustainability or Environmental Justice Element and Associated CEQA Compliance Document)
(Parties: City of Bell Gardens and Impact Sciences, Inc.)

1. IDENTIFICATION

THIS PROFESSIONAL SERVICES AGREEMENT (“Agreement”) is entered into by and between the City of Bell Gardens (“City”), a California municipal corporation and Impact Sciences, Inc. (“Consultant”). The capitalized term “Party” or “Parties” may refer to either City or Consultant, interchangeably as appropriate.

2. RECITALS

WHEREAS, City requires remediation consulting services to the Community Development Department to address and create a mandated EJ Element complying with SB 1000 (2016) and SB 379 (2015) as listed in Government Code Section 65302. The EJ Element will be prepared to comply with the following applicable state-required goals, policies, and objectives; and

WHEREAS, City staff has determined that Consultant possesses the experience, skills and training necessary to competently provide such services for City.

NOW, THEREFORE, for and in consideration of the mutual covenants and conditions herein contained, City and Consultant agree as follows:

3. DEFINITIONS

“Effective Date”: Date of when Agreement is fully executed by all Parties.

4. TERM

This Agreement shall have a term commencing from the Effective Date through June 30, 2024 (hereinafter, the “Term”). Nothing in this Section shall operate to prohibit or otherwise restrict the City’s ability to terminate this Agreement at any time for convenience or for cause as provided under Section 17 (Termination), below.

5. SCOPE OF WORK

5.1 Subject to the terms and conditions of this Agreement, Consultant agrees to provide the services and tasks described in that certain City Request for Proposals entitled “Request for Proposals General Plan Sustainability or Environmental Justice Element and Associated CEQA Compliance Documents” issued August 1, 2022, (hereinafter the “City RFP”) and the written proposal of Consultant entitled “City of Bell Gardens General Plan Sustainability or Environmental Justice Element and Associated CEQA Compliance Documents” (hereinafter the “Consultant Proposal”) dated August 31, 148Exhibit 2

2 2022. The City RFP and the Consultant Proposal are attached and incorporated hereto as Exhibit “A” and “B” respectively. The term “Scope of Work” shall be a collective reference to the City RFP and the Consultant Proposal. The capitalized term “Work” shall be a collective reference to all the various services and tasks referenced in the Scope of Work. In the event of any conflict or inconsistency between the provisions of the document entitled City RFP and the provisions of the document entitled Consultant Proposal, the requirements of the document entitled City RFP shall govern and control but only to the extent of the conflict or inconsistency and no further. In the event of any conflict or inconsistency between the provisions of the Scope of Work and the provisions of this Agreement to which the Scope of Work is attached, the provisions of this Agreement shall govern and control.

5.2 Consultant represents that it has, or will secure at its own expense, all personnel required to perform the services identified in the Scope of Work. All such services shall be performed by Consultant or under its supervision, and all personnel engaged in the work shall be qualified to perform such services. Consultant shall identify a project administrator and shall have direct responsibility for management of Consultant’s performance under this Agreement. No change shall be made in Consultant’s project administrator without City’ prior written consent.

5.3 Consultant understands the nature and scope of the Work to be performed under this Agreement as well as any and all schedules of performance.

5.4 Consultant shall not claim or be entitled to receive any compensation or damage because of the failure of Consultant, or its subconsultants, to have related services or tasks completed in a timely manner.

5.5 Consultant shall at all times enforce strict discipline and good order among Consultant’s employees.

5.6 Consultant, at its sole expense, shall pay all sales, consumer, use or other similar taxes required by law.

5.7 Consultant shall obtain a City business license prior to commencing performance under this Agreement. Consultant shall perform all work to the highest professional standards of Consultant’s profession and in a manner, reasonably satisfactory to City. Consultant shall comply with all applicable federal, state, and local laws and regulations (including the conflict of interest provisions of Government Code Section 1090 and the Political Reform Act (Government Code Section 81000 et seq .)).

During the term of this Agreement, Consultant shall not perform any work for another person or entity for whom Consultant was not working at the Commencement Date if both (i) such work would require Consultant to abstain from a decision under this Ag reement pursuant to a conflict of interest statute; and (ii) City has not consented in writing to Consultant’s performance of such work.

5.8 All of Consultant’s employees and agents possess sufficient skill, knowledge, training and experience to perform those services and tasks assigned to them by Consultant.
149Exhibit 2

3 5.9 All of Consultant’s employees and agents (including, but not limited to, subcontractors and subconsultants) possess all licenses, permits, certificates, qualifications and approvals of whatever nature that are legally required to perform the tasks and services contemplated under this Agreement and all such licenses, permits, certificates, qualifications and approvals will be maintained throughout the term of this Agreement and made available to City for copying and inspection.

5.10 The Parties acknowledge and agree that Consultant will perform, at Consultant’s own cost and expense and without any reimbursement from City, any services necessary to correct any errors or omissions caused by Consu ltant’s failure to comply with the standard of care set forth under this Section or by any like failure on the part of Consultant’s employees, agents, contractors, subcontractors and subconsultants.

Such effort by Consultant to correct any errors or omiss ions will be commenced immediately upon their discovery by either Party and will be completed within seven (7) calendar days from the date of discovery or such other extended period of time authorized by the city representative in writing and in their sole and absolute discretion. The Parties acknowledge and agree that City’s acceptance of any work performed by Consultant or on Consultant’s behalf will not constitute a release of any deficiency or delay in performance. The Parties further acknowledge, understand and agree that CITY has relied upon the foregoing representations of Consultant, including but not limited to the representation that Consultant possesses the skills, training, knowledge and experience necessary to perform the Work skillfully, competently and to the highest standards of Consultant’s profession.

5.11 The City hereby designates Gustavo Romo, Director of Community Development, (hereinafter, the “City Representative”) to act as its representative for the performance of this Agreement. The City Representative or their designee will act on behalf of the City for all purposes under this Agreement. Consultant will not accept directions or orders from any person other than the City Representative or their designee.

5.12 Consultant hereby designates Jessica Flores, AICP, Managing Principal, to act as its representative for the performance of this Agreement (hereinafter, “Consultant Representative”). Consultant Representative will have full authority to represent and act on behalf of the Consultant for all purposes under this Agreement. Consultant Representative or their designee will supervise and direct the performance of the Work, using their best skill and attention, and will be responsible for all means, methods, techniques, sequences and procedures and for the satisfactory coordination of all portions of the Work under this Agreement. Notice to the Consultant Representative will constitute notice to Consultant.

5.13 Consultant agrees to work closely with City staff in the performance of the Work and this Agreement and will be available to City staff and the City Representative at all reasonable times. All work prepared by Consultant will be subject to inspection and approval by City Representative or their designees.

150Exhibit 2

4 6. COMPENSATION

6.1 Consultant shall perform the Work in accordance with the Cost and Pricing which is incorporated to the Consultant Proposal (hereinafter “Compensation Rate”).The foregoing notwithstanding, Consultant’s total compensation for the performance of all Work contemplated under this Agreement, will not exceed the total budgeted aggregate sum of ONE HUNDRED NINETEEN THOUSAND SIX HUNDRED SEVEN DOLLARS ($119,607) (hereinafter the “Not-to-Exceed Sum”) during the Term of this Agreement, unless such added expenditure is first approved by the City Council. In the event Consultant’s charges are projected to exceed the Not -to-Exceed Sum prior to the expiration of this Agreement, City may suspend Consultant’s performance pending City approval of any anticipated expenditures in excess of the Not-to-Exceed Sum or any other City approved amendment to the compensation terms of this Agreement.

6.2 The Not-to-Exceed Sum will be paid to Consultant in monthly increments as the Work is completed. Following the conclusion of each calendar month, Consultant will submit to City an itemized invoice indicating the services performed and tasks completed during the recently concluded calendar month, includ ing services and tasks performed and the reimbursable out-of-pocket expenses incurred. If the amount of Consultant’s monthly compensation is a function of hours worked by Consultant’s personnel, the invoice should indicate the number of hours worked in the recently concluded calendar month, the persons responsible for performing the Work, the rate of compensation at which such services and tasks were performed, the subtotal for each task and service performed and a grand total for all services performed. Within thirty (30) calendar days of receipt of each invoice, City will notify Consultant in writing of any disputed amounts included in the invoice. Within forty-five (45) calendar days of receipt of each invoice, City will pay all undisputed amounts included on the invoice. City will not withhold applicable taxes or other authorized deductions from payments made to Consultant.

7. OWNERSHIP OF WRITTEN PRODUCTS
All reports, documents, or other written material (hereinafter “written products”) developed by Consultant in the performance of this Agreement shall be and remain the property of City without restriction or limitation upon its use or dissemination by City.

8. RELATIONSHIP OF PARTIES
Consultant is and shall remain at all times as to City, a wholly independent contractor. Consultant shall have no power to incur any debt, obligation, or liability on behalf of City or otherwise to act on behalf of City as an agent. Neither City nor any of its officers, employees or agents shall have control over the conduct of Consultant or any of Consultant’s employees, except as set forth in this Agreement. Consultant shall not represent that it is, or that any of its agents or employees are, in any manner City employees. Consultant is not, nor shall become, by virtue of performance of the professional services provided under this Agreement, entitled to any City employee benefits, including but not limited to health insurance, dental insurance, vacation pay, retirement pension, unemployment insurance or workers’ compensation insurance.

151Exhibit 2

5 9. CONFIDENTIALITY
All data, documents, discussion, or other information developed or received by Consultant or provided for performance of this Agreement are deemed confidential and shall not be disclosed by Consultant without prior written consent by City. City shall grant such consent if disclosure is legally required. Upon request, all City data and any copies thereof shall be returned to City upon the termination or expiration of this Agreement.

10. INDEMNIFICATION

10.1 The Parties agree that City and City’s elected and appointed officials, officers, employees, agents and volunteers (hereinafter, the “City Indemnitees”) should, to the fullest extent permitted by law, be protected from any and all loss, injury, damage, claim, lawsuit, cost, expense, attorneys’ fees, litigation costs, or any other cost arising out of or in any way related to the performance of this Agreement. Accordingly, the provisions of this indemnity provision are intended by the Parties to be interpreted and construed to provide the City Indemnitees with the fullest protection possible under the law. Consultant acknowledges that City would not enter into this Agreement in the absence of Consultant’s commitment to indemnify, defend and protect City as set forth herein.

Notwithstanding the foregoing, to the extent Consultant’s services are subject to Civil Code Section 2782.8, the above indemnity shall be limited, to the extent required by Civil Code Section 2782.8, to Claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant. Consultant’s obligation to indemnify shall not be restricted to insurance proceeds, if any, received by the City, its officials, officers, employees, agents or volunteers.

10.2 To the fullest extent permitted by law, Consultant shall indemnify, hold harmless and defend the City Indemnitees from and against all liability, loss, damage, expense, cost (including without limitation reasonable attorneys’ fees, expert fees and all other costs, and fees of litigation) of every nature arising out of or in connection with Consultant’s performance of work hereunder or its failure to comply with any of its obligations contained in this Agreement, except such loss or damage which is caused by the sole negligence or willful misconduct of the City.

10.3 City shall have the right to offset against the amount of any compens ation due to Consultant under this Agreement, any amount due to City from Consultant as a result of Consultant’s failure to either pay City promptly for any costs associated with Consultant’s obligations to indemnify the City Indemnitees under this Section, or related to Consultant’s failure to either (i) pay taxes on amounts received pursuant to this Agreement, or (ii) comply with applicable workers’ compensation laws.

10.4 The obligations of Consultant under this Section will not be limited by the provisions of any workers’ compensation act or similar act. Consultant expressly waives its statutory immunity under such statutes or laws as to City and City’s elected and appointed officials, officers, employees, agents, and volunteers.

10.5 Consultant agrees to obtain executed indemnity agreements with provisions identical to those set forth herein this Section from each and every subcontractor or any other person or entity involved by, for, with or on behalf of Consultant in the performance 152Exhibit 2

6 of this Agreement. In the event Consultant fails to obtain such indemnity obligations from others as required herein, Consultant agrees to be fully responsible and indemnify, hold harmless and defend City and City’s elected and appointed officials, officers, employees, agents, and volunteers from and against any and all claims and losses, costs or expenses for any damage due to death or injury to any person and injury to any property resulting from any alleged intentional, reckless, negligent, or otherwise wrongful acts, e rrors or omissions of Consultant’s subcontractors or any other person or entity involved by, for, with or on behalf of Consultant in the performance of this Agreement. Such costs and expenses shall include reasonable attorneys’ fees incurred by counsel of City’s choice.

10.6 City does not, and shall not waive any rights that it may possess against Consultant because of the acceptance by City, or the deposit with City, of any insurance policy or certificate required pursuant to this Agreement. This hold h armless and indemnification provision shall apply regardless of whether or not any insurance policies are determined to be applicable to the claim, demand, damage, liability, loss, cost, or expense.

10.7 This Section and all provisions contained herein (including but not limited to the duty to indemnify, defend, and hold free and harmless) shall survive the termination or normal expiration of this Agreement and is in addition to any other rights or remedies which the CITY may have at law or in equity.

11. INSURANCE

11.1 During the term of this Agreement, Consultant shall carry, maintain, and keep in full force and effect insurance against claims for death or injuries to persons or damages to property that may arise from or in connection with Consultant’s performance of this Agreement. Such insurance shall be of the types and in the amounts as set forth below:

11.1.1 Comprehensive General Liability Insurance with coverage limits of not less than One Million Dollars ($1,000,000) per occurrence and Two Million Dollars ($2,000,000) aggregate including products and Completed operations hazard, contractual insurance, broad form property damage, independent Consultants, personal injury.

11.1.2 Automobile liability insurance. Consultant shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Consultant arising out of or in connection with work to be performed under this Agreement, including coverage for any owned, hired, non-owned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident. Professional liability (Errors & Omissions) insurance. Consultant shall maintain professional liability insurance that covers the Services to be performed in connection with this Agreement, in the minimum amount of $1,000,000 per claim and in the aggregate. Any policy inception date, continuity date, or retroactive date must be before the effective date of this Agreement and Consultant agrees to 153Exhibit 2

7 maintain continuous coverage through a period no less than three (3) years after completion of the services required by this Agreement.

11.1.3 Professional liability (Errors & Omissions) insurance. Consultant shall maintain professional liability insurance that covers the Services to be performed in connection with this Agreement, in the minimum amount of $1,000,000 per claim and in the aggregate. Any policy inception date, continuity date, or retroactive date must be before the effective date of this Agreement and Consultant agrees to maintain continuous coverage through a period no less than three (3) years after completion of the services requ ired by this Agreement.

11.1.4 Worker’s Compensation insurance as required by the laws of the State of California and Employer’s Liability Insurance (with limits of at least $1,000,000).

11.1.5 Consultant shall submit to City, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of City, its officers, agents, employees and volunteers.

11.2 Consultant shall require each of its subcontractors, if any, to maintain insurance coverage that meets all of the requirements of this Agreement.

11.3 The policy or policies required by this Agreement shall be issued by an insurer admitted in the State of California and with a rating of at least A:VII in the latest edition of Best’s Insurance Guide.

11.4 Consultant agrees that if it does not keep the aforesaid insurance in full force and effect City may either (i) immediately terminate this Agreement; or (ii) take out the necessary insurance and pay, at Consultant’s expense, the premium thereon.

11.5 At all times during the term of this Agreement, Consultant shall maintain on file with City’ Risk Manager a certificate or certificates of insurance showing that the aforesaid policies are in effect in the required amounts and naming the City as an additional insured. Consultant shall, prior to commencement of work under this Agreement, file with City’ Risk Manager such certificate(s).

11.6 Consultant shall provide proof that policies of insurance required herein expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Such proof will be furnished at least two (2) weeks prior to the expiration of the coverages.

11.7 The general liability and automobile policies of insurance required by this Agreement shall contain an endorsement naming City, its officers, employees, agents and volunteers as additional insureds. All of the policies required under this Agreement shall contain an endorsement providing that the policies cannot be canceled or redu ced except on thirty (30) days’ prior written notice to City. Consultant agrees to require its insurer to modify the certificates of insurance to delete any exculpatory wording stating that failure of the insurer to mail written notice of cancellation imposes no obligation, and 154Exhibit 2

8 to delete the word “endeavor” with regard to any notice provisions.

11.8 The insurance provided by Consultant shall be primary to any coverage available to City. Any insurance or self-insurance maintained by City, its officers, employees, agents or volunteers, shall be in excess of Consultant’s insurance and shall not contribute with it.

11.9 Any deductibles or self-insured retentions must be declared to and approved by City. At the option of City, Consultant shall either reduce or eliminate the deductibles or self-insured retentions with respect to City, or Consultant shall procure a bond guaranteeing payment of losses and expenses.

11.10 Procurement of insurance by Consultant shall not be construed as a limitation of Consultant’s liability or as full performance of Consultant’s duties to indemnify, hold harmless and defend under Section 10 of this Agreement.

12. MUTUAL COOPERATION
City shall provide Consultant with complete access to information for the proper performance of Consultant’s services under this Agreement.

13. RECORDS AND INSPECTIONS
Consultant shall maintain full and accurate records with respect to all matters covered under this Agreement for a period of three (3) years after the expiration or termination of this Agreement. City shall have the right to access and examine such records, without charge, during normal business hours. City shall further have the right to audit such records, to make transcripts therefrom and to inspect all program data, documents, proceedings, and activities.

14. PERMITS AND APPROVALS
Consultant shall obtain, at its sole cost and expense, all permits and regulatory approvals necessary in the performance of this Agreement.

15. NOTICES
Any notices, bills, invoices, or reports required by this Agreement shall be deemed received on: (i) the day of delivery if delivered by hand, facsimile or overnight courier service during Consultant’s and City’ regular business hours; or (ii) on the third (3rd) business day following deposit in the United States mail if delivered by mail, postage prepaid, to the addresses listed below (or to such other addresses as the parties may, from time to time, designate in writing).

If to City: If to Consultant:

City of Bell Gardens
7100 S. Garfield Ave.

Bell Gardens, California 90201

With a courtesy copy to:

Impact Sciences, Inc.
811 W. 7th Street, Suite 200
Los Angeles, CA 90017
Attn: Jessica Flores, AICP
Phone: (213) 935-1901

155Exhibit 2

9 Rick Olivarez,
Olivarez Madruga Law Organization, LLP
500 S. Grand Ave., Floor 12
Los Angeles, CA 90071
Telephone: (213)744-0099
Facsimile: (213)744-0093

16. SURVIVING COVENANTS
The termination of this Agreement pursuant to any provision of this Section or by normal expiration of its term or any extension thereto will not operate to terminate any Section or provision contained herein which provides that it will survive the termination or normal expiration of this Agreement.

17. TERMINATION

17.1. City may immediately terminate this Agreement at any time for convenience and without cause by giving prior written notice of City’s intent to terminate this Agreement which notice shall specify the effective date of such termination. Upon such termination for convenience, Consultant will be compensated only for those services and tasks which have been performed by Consultant up to the effective date of the termination. Consultant may not terminate this Agreement except for cause as provided under Section 17.2, below. If this Agreement is terminated as provided herein, C ity may require Consultant to provide all finished or unfinished Documents and Data, and other information of any kind prepared by Consultant in connection with the performance of the Work. Consultant will be required to provide such Documents and Data within fifteen (15) calendar days of City’s written request. No actual or asserted breach of this Agreement on the part of C ity pursuant to Section 17.2, below, will operate to prohibit or otherwise restrict City’s ability to terminate this Agreement for convenience as provided unde r this Section.

17.2 In the event either Party fails to perform any duty, obligation, service or task set forth under this Agreement (or fails to timely perform or properly perform any such duty, obligation, service or task set forth under this Agreement), an event of default (hereinafter, “Event of Default”) will occur. For all Events of Default, the Party alleging an Event of Default will give written notice to the defaulting Party (hereinafter referred to as a “Default Notice”) which will specify: (i) the nature of the Event of Default; (ii) the action required to cure the Event of Default; (iii) a date by which the Event of Default will be cured, which will not be less than the applicable cure period set forth under Sections 17.3 and 17.4, below, or if a cure is not reasonably possible within the applicable cure period, to begin such cure and diligently prosecute such cure to completion. The Event of Default will constitute a breach of this Agreement if the defaulting Party fails to cure the Event of Default within the applicable cure period or any extended cure period allowed under this Agreement.

17.3. CONSULTANT will cure the Event of Default within the following time periods:

i. Within ten (10) business days of CITY’s issuance of a Default Notice for any failure of CONSULTANT to timely provide CITY or CITY’s 156Exhibit 2

10 employees or agents with any information and/or written reports, documentation or work product which CONSULTANT is obligated to provide to CITY or CITY’s employees or agents under this Agreement.

Prior to the expiration of the 10-day cure period, CONSULTANT may submit a written request for additional time to cure the Event of Default upon a showing that CONSULTANT has commenced efforts to cure the Event of Default and that the Event of Default cannot be reasonably cured within the 10-day cure period. The foregoing notwithstanding, CITY will be under no obligation to grant additional time for the cure of an Event of Default under this Section 17.3 that exceeds seven (7) calendar days from the end of the initial 10-day cure period; or

ii. Within fourteen (14) calendar days of CITY’s issuance of a Default Notice for any other Event of Default under this Agreement. Prior to the expiration of the 14-day cure period, CONSULTANT may submit a written request for additional time to cure the Event of Default upon a showing that CONSULTANT has commenced efforts to cure the Event of Default and that the Event of Default cannot be reasonably cured within the 14-day cure period. The foregoing notwithstanding, CITY will be under no obligation to grant additional time for the cure of an Event of Default under this Section 17.3(ii) that exceeds thirty (30) calendar days from the end of the initial 14-day cure period.

17.4 In addition to any other failure on the part of Consultant to perform any duty, obligation, service or task set forth under this Agreement (or the failure to timely perform or properly perform any such duty, obligation, service or task), an Event of Default on the part of Consultant will include, but will not be limited to the following: (i) C onsultant’s refusal or failure to perform any of the services or tasks called for under the Scope of Work; (ii) Consultant’s failure to fulfill or perform its obligations under this Agreement within the specified time or if no time is specified, within a reasonable time; (iii) Consultant’s and/or its employees’ disregard or violation of any federal, state, local law, rule, procedure or regulation; (iv) the initiation of proceedings under any bankruptcy, insolvency, receivership, reorganization, or similar legislation as relates to Consultant, whether voluntary of involuntary; (v) Consultant’s refusal or failure to perform or observe any covenant, condition, obligation or provision of this Agreement; and/or (vii) C ity’s discovery that a statement representation or warranty by Consultant relating to this Agreement is false, misleading or erroneous in any material respect.

17.5. City will cure any Event of Default asserted by Consultant within forty-five (45) calendar days of Consultant’s issuance of a Default Notice, unless the Event of Default cannot reasonably be cured within the 45-day cure period. Prior to the expiration of the 45-day cure period, City may submit a written request for additional time to cure the Event of Default upon a showing that City has commenced its efforts to cure the Event of Default and that the Event of Default cannot be reasonably cured within the 45 -day cure period. The foregoing notwithstanding, an Event of Default dealing with City’s failure to timely pay any undisputed sums to Consultant will be cured by City within five (5) calendar days from the date of Consultant’s Default Notice to City.

17.6. City, in its sole and absolute discretion, may also immediately suspend Consultant’s performance under this Agreement pending Consultant’s cure of any Event 157Exhibit 2

11 of Default by giving Consultant written notice of City’s intent to suspend Consultant’s performance (hereinafter, a “Suspension Notice”). City may issue the Suspension Notice at any time upon the occurrence of an Event of Default. Upon such suspension, Consultant will be compensated only for those services and tasks which have been rendered by Consultant to the reasonable satisfaction of City up to the effective date of the suspension. No actual or asserted breach of this Agreement on the part of C ity will operate to prohibit or otherwise restrict City’s ability to suspend this Agreement as provided herein.

17.7. No waiver of any Event of Default or breach under this Agreement will constitute a waiver of any other or subsequent Event of Default or breach. No waiver, benefit, privilege, or service voluntarily given or performed by a Party w ill give the other Party any contractual rights by custom, estoppel, or otherwise.

17.8. The duties and obligations imposed under this Agreement and the rights and remedies available hereunder will be in addition to and not a limitation of any duties, obligations, rights and remedies otherwise imposed or available by law. In addition to any other remedies available to City at law or under this Agreement in the event of any breach of this Agreement, City, in its sole and absolute discretion, may also pursue any one or more of the following remedies:

i. Upon written notice to Consultant, the City may immediately terminate this Agreement in whole or in part;

ii. Upon written notice to Consultant, the City may extend the time of performance;

iii. The City may proceed by appropriate court action to enforce the terms of the Agreement to recover damages for Consultant’s breach of the Agreement or to terminate the Agreement; or

iv. The City may exercise any other available and lawful right or remedy.

17.9 Consultant will be liable for all legal fees plus other costs and expenses that City incurs upon a breach of this Agreement or in the City’s exercise of its remedies under this Agreement.

17.10. In the event City is in breach of this Agreement, Consultant’s sole remedy will be the suspension or termination of this Agreement and/or the recovery of any unpaid sums lawfully owed to Consultant under this Agreement for completed services and tasks.

18. GENERAL PROVISIONS

18.1 Consultant shall not delegate, transfer, subcontract or assign its duties or rights hereunder, either in whole or in part, without City’s prior written consent, and any attempt to do so shall be void and of no effect. City shall not be obligated or liable under this Agreement to any party other than Consultant.

18.2 In the performance of this Agreement, Consultant shall not discriminate against any employee, subcontractor, or applicant for employment because of race, color, 158Exhibit 2

12 creed, religion, sex, marital status, national origin, ancestry, age, physical or mental handicap, medical condition, or sexual orientation. Consultant will take affirmative action to ensure that subcontractors and applicants are employed, and that employees are treated during employment, without regard to their race, color, creed, religion, sex, marital status, national origin, ancestry, age, physical or mental handicap, medical condition, or sexual orientation.

18.3 The captions appearing at the commencement of the sections hereof, and in any paragraph thereof, are descriptive only and for conven ience in reference to this Agreement. Should there be any conflict between such heading, and the section or paragraph thereof at the head of which it appears, the section or paragraph thereof, as the case may be, and not such heading, shall control and go vern in the construction of this Agreement. Masculine or feminine pronouns shall be substituted for the neuter form and vice versa, and the plural shall be substituted for the singular form and vice versa, in any place or places herein in which the context requires such substitution(s).

18.4 The waiver by City or Consultant of any breach of any term, covenant or condition herein contained shall not be deemed to be a waiver of such term, covenant, or condition or of any subsequent breach of the same or any other term, covenant or condition herein contained. No term, covenant or condition of this Agreement shall be deemed to have been waived by City or Consultant unless in writing.

18.5 Consultant shall not be liable for any failure to perform if Consultant presents acceptable evidence that such failure was due to causes beyond the control and without the fault or negligence of Consultant.

18.6 Each right, power and remedy provided for herein or now or hereafter existing at law, in equity, by statute, or otherwise shall be cumulative and shall be in addition to every other right, power, or remedy provided for herein or now or hereafter existing at law, in equity, by statute, or otherwise. The exercise, the commencement of the exercise, or the forbearance of the exercise by any party of any one or more of such rights, powers or remedies shall not preclude the simultaneous or later exercise by such party of any of all of such other rights, powers or remedies. In the event legal action shall be necessary to enforce any term, covenant or condition herein contained, the party prevailing in such action, whether reduced to judgment or not, shall be entitled to its reasonable court costs, including accountants’ fees, if any, and attorneys’ fees expended in such action subject to the limitations contained in Section 10. The venue for any litigation shall be Los Angeles County, California.

18.7 If any term or provision of this Agreement or the application thereof to any person or circumstance shall, to any extent, be invalid or unenforceable, then such term or provision shall be amended to, and solely to, the extent necessary to cure such invalidity or unenforceability, and in its amended form shall be enforceable. In such event, the remainder of this Agreement, or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby, and each term and provision of this Agreement shall be valid and be enforced to the fullest extent permitted by law.

18.8 This Agreement shall be governed and construed in accordance with the laws of the State of California.
159Exhibit 2

13 18.9 All documents referenced as exhibits in this Agreement are hereby incorporated in this Agreement. In the event of any material discrepancy between the express provisions of this Agreement and the provisions of any document incorporated herein by reference, the provisions of this Agreement shall prevail. This instrument contains the entire Agreement between City and Consultant with respect to the transactions contemplated herein. No other prior oral or written agreements are binding upon the parties. Amendments hereto or deviations here from shall be effective and binding only if made in writing and executed by City and Consultant.

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160Exhibit 2

14 TO EFFECTUATE THIS AGREEMENT, the parties have caused their duly authorized representatives to execute this Agreement on the dates set forth below.

“City” “Consultant”
City of Bell Gardens Impact Sciences, Inc.

By:_____________________________ By:_____________________________ Michael B. O’Kelly, City Manager

Date:_______________ Date:__________________

Approved as to form:

By:

Rick Olivarez, City Attorney

161Exhibit 2

15 EXHIBIT “A”

CITY RFP

162Exhibit 2

REQUEST FOR PROPOSALS
General Plan Sustainability or Environmental Justice Element and Associated CEQA Compliance Documents

RFP Release Date
August 01, 2022

Proposal Submittal Deadline
5:00 p.m., Wednesday, August 31, 2022

Contact Person:

Steven Jones, City Planner
City of Bell Gardens
7100 Garfield Avenue
Bell Gardens, CA 90201
(562) 806-7723
[email protected]
7100 Garfield Avenue • Bell Gardens, CA 90201 • (562) 806-7700 • www.bellgardens.org 163Exhibit 2

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