Bell Gardens City Council
April 14, 2025

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All employees and customers will be reminded that smoking on or near the premises is prohibited. Staff will not use air fresheners, scented candles, scented personal care products or other scented materials; not bring animals (except service animals) into the building; not eat or drink outside the break room; discard all waste in the appropriate containers; and not use portable air-cleaning or ozone-generating devices. All employees will be trained to detect and report unacceptable odor levels both inside and outside of the facility. If detectible levels of cannabis odors are detected, all air filtration equipment will be inspected to determine if maintenance or replacement is required. All fans will be inspected visually each week to ensure proper functionality. All carbon filters will be replaced according to manufacturer recommendations. Mecca will log and maintain accurate records of all HVAC, service, repairs and replacements to ventilation and odor mitigation systems and will retain records for at least three years. Regular pad and filter cleaning, maintenance of the equipment, and (if necessary) replacement will occur to decrease the accumulation of any odor causing build-up. The maintenance of the equipment will strictly follow manufacturer recommendations.

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5. SECURITY PLAN 5.1. Overview This is the written Security Plan for cannabis facility located at 6638 Eastern Ave, Bell Gardens, California. where Mecca intends to operate a retail cannabis facility for medicinal, adult use and delivery services. We are keenly aware of the added security challenges that a business of this nature faces (including the risks of robbery, internal and external theft, diversion of cannabis by employees and customers, the risk of minors accessing cannabis products, and associated risks to employees, vendors, and the general public), and we have taken extensive measures to have professionally-vetted policies, procedures, and systems in place to provide comprehensive protection, not only for the physical location and inventory, but also for the employees and customers. This security plan represents Mecca’s intention to meet or exceed each security requirement set forth in the California Department of Cannabis Control (“DCC”) regulations, and the ordinances adopted by the City of Bell Gardens (“City”). Mecca acknowledges that as incidents arise, crime trends affecting the cannabis industry evolve, or enhanced security practices develop throughout the emerging cannabis industry, the Sheriff’s Department may wish to impose additional conditions to further the public safety interests of the City. Mecca will modify this plan at the request of the City or another designee and cooperate with any request to inspect, assess, and test the security and safety strategies of the retail facility. 5.2. Security Guard Services Mecca has retained Bolton Security for security guard and consulting services. Bolton Security is a licensed Private Patrol Operator (PPO License #121068) operating in Los Angeles and Riverside Counties. 5.3. Scope of Plan This plan is based on site visits conducted in April and May 2024; review of diagrams provided by Mecca; conversations with Mecca’s management and attorneys; and independent research of best practices, state and local cannabis regulations. During the site visit and inspection, no obvious security problems or breaches were observed, and we observed no graffiti, vandalism or evidence of a transient activity in the immediate area. The facility, located at 6638 Eastern Avenue, Bell Gardens, California, is a one-story stucco, cement and brick structure, located on commercial corridor. The building shares a common wall with an adjacent restaurant. The common walls are solid cement, and a breach through these walls is unlikely. The entrance is located in the parking lot in the rear of the building. The facility is approximately 3,960 ft.2, located in a commercial, mixed used area, where commercial cannabis use is permitted. As Mecca is a Cannabis retail facility and delivery business, this plan will detail the systems and security personnel required for those operations and also for monitoring external access to the facility, as well as policies aimed at deterring employee theft or diversion of cash. Accordingly, this plan will address certain operating procedures that implicate the security of the building, such as inventory, product and cash handling; technological security features; measures for securing ingress and egress to the premises, Page 157 of 408Page 607 of 976

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protecting the building perimeter (including patrolling for vagrancy and loitering); safeguarding products and cash maintained onsite as well as in transit; use of cameras and video equipment to monitor activities; and the number/credentials of security personnel to be employed. The security at the facility is designed to both reduce the likelihood of security breaches and trigger an immediate response in the event of a breach, and control access to the limited access areas and any areas where cannabis products or cash is being handled or stored limiting it to authorized and properly identified personnel. 5.4. Overview of Interior and Exterior Site Hardening Features Mecca’s premises will be upgraded with the following features: • Shatter proof glass on front windows; • Armed licensed security guards in both fixed and roving locations; • Electronic surveillance (manned and alarmed camera surveillance, and electronic intrusion detection systems); • Burglary alarm system monitored by the alarm monitoring company, triggered by breaches of interior or exterior doors or other points of entry, and with panic buttons; • Controlled access security doors internally and externally; • Radio system for communication with employees and security personnel; • Strict policies for cash handling, receiving shipments and inventory control; • Posted signs reinforcing general prohibitions; • Secured and locked doors for all entry points; • Key cards issued to employees to limit and monitor access to entry, exits, and internal access points such as limited access areas; and • ID cards and tags to be worn by all staff and non- staff at all times. In addition, Mecca will regularly communicate with local law enforcement to develop a professional working relationship and a coherent contingency plan for incidents that require a law enforcement involvement at our facility. Page 158 of 408Page 608 of 976

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5.5. Premises Diagrams 5.5.1. Camera Locations The diagram below depicts camera locations throughout the Dispensary.

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5.6. Description of Cannabis Activity in Each Room and Security Elements The areas described below correspond to the room labels on the floor plan in Section 3.3. 5.6.1. Sales Area The Sales Area is where customers, staff and visitors will initially enter and exit the premises. Verification Clerks will be in this area to check IDs for all customers upon entry. Prior to having access to make a purchase in the dispensary, a customer is required to first present valid identification. An armed security guard will be present in the sales area during operating hours. 5.6.2. Intake/Processing The Intake/Processing room will be where shipments are received and counted once a distributor has passed the security clearance and has logged into the visitor’s log. All inventory will be compared to the physical copy of the shipping manifest, by opening bulk boxes to confirm item count and comparison to the shipping manifest prior to accepting the shipment. This room will be a limited access area and will not be accessible to the public. 5.6.3. Vault The Vault is located adjacent to the sales area. The Vault will be secured with an electronic access system and commercial grade locking mechanism, accessible only to authorized persons. This room is designated to hold all cannabis products purchased from licensed distributers that arrive at the facility. After accepting a shipment of cannabis products from a licensed distributor, verifying accuracy, the products shall be quickly moved to the secure inventory storage area. The Vault will not be accessible to the security guard but instead only to authorized management and executive management, including the Dispensary Floor Manager and Delivery/Online Retail Manager. The Security guard will ensure that no unauthorized employees or third parties can even attempt to access the drop-safe room at any time. No cannabis goods will be stored in the safe room. 5.6.4. Security Office The Security Office is a designated area for one armed security guard, monitoring and viewing live video footage. The security room will be secured with an electronic access system and be accessible only to authorized persons such as the security guard and management. It will be under camera surveillance. No cannabis will ever be stored in this room. 5.6.5. Driver/Dispatch The Driver/Dispatch room is a waiting area for delivery drivers until a route has been prepared. Once inventory staff has prepared delivery orders they will provide the delivery driver with all the orders in the Driver Dispatch room and provide instructions before the delivery driver leaves the premises. No cannabis goods will be sold in this area, no cannabis or cash will be stored in this area, and it will be under camera surveillance at all times. Page 160 of 408Page 610 of 976

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5.6.6. Manager Office The Manager Office will be locked and be used only by the GM. Mecca will install a commercial-grade depository safe (“drop safe”) in the Manager Office to hold any cash that is either ready for bank deposit, needed to pay vendors, or needed to fill cash-drawers at the beginning of a shift. The drop safe will be programed such that it can only be opened during certain hours but will allow cash deposits (or “drops”) at all times. 5.6.7. Media The Media room will be a multi-functional space dedicated to content creation such as audio and video recording, promotional photography, and graphic design. 5.6.8. Meeting Room The Meeting Room is designed for formal and informal staff meetings, vendor led product education, and seminars. 5.6.9. Break Room The Break Room serves as a place for employees to use during rest breaks and meal breaks and utilize the kitchenette and refrigerator. The Break Room is not a limited access area, but employees will be required to have proper authorization in order to open the secured doors and enter this area. No cannabis goods will be permitted in this room and it will be under camera surveillance. 5.7. Limited Access Areas Any area within the facility where cannabis goods are stored or handled will be considered as a “Limited Access Area,” shall only be accessible to Mecca employees and shall have a solid door and commercial grade locking system with electronic keycard access. In addition, Mecca shall treat areas where cash is stored or handled as a limited access area. These areas are designated on the diagram, and include the Storage, Processing, and Receiving Inventory rooms; Security office and Safe room; shipping/receiving area; IT room and Delivery rooms. No persons under 21 years of age will be permitted access to these areas. No employee will be permitted in these areas without authorization. Outside visitors will only be granted access once the reason for their visit is confirmed, and they are logged in by a facility employee and security officer and issued a temporary ID badge. All non-employees will always be escorted by an employee through a limited access area. All doors with access to entry, exits, vestibules, and to limited access areas will be controlled access by either an electronic fob or keyless system. This will control access to various areas limited to authorized staff. The doors will remain closed and locked when not in use. Mecca will maintain a record of all visitors and authorized individuals who are not employee who access the facility including any limited access area, as required by the DCC and the City. 5.8. Number and Location of Cameras A video surveillance system will be installed to cover both external and interior areas so that there will be no blind spots within the facility, or the outer parameter. It will covers all entrance and exits 24/7 per day. As per Title 4, California Code of Regulations (CCR) § 15044, all interior spaces of the facility which are open and accessible to the Page 161 of 408Page 611 of 976

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public (except restrooms) and all interior spaces where diversion of cannabis could reasonably occur, will be monitored by 24-hour video surveillance, including: • Areas where cannabis is weighed, packaged, stored, loaded, and unloaded for distribution, prepared, or moved within the premises; • Limited access areas; • Security rooms/safe room; • Areas storing a surveillance-system storage device with at least one camera recording the access points to the secured surveillance recording area; and • Entrances and exits to the premises, which shall be recorded from both indoor and outdoor vantage points. 5.8.1. Interior Camera Placement There will be 16 cameras installed in the interior of the premises. This will be more than enough to eliminate any blind spaces and corners in any spaces cannabis or cash will be stored or handled as well as other locations in accordance with the City. Cameras will be mounted over the entry and exit doors in the secure vestibules to provide close-up details of persons using those doorways or areas. All interior cameras views shall be record 24 hours per day, 7 days per week. during all hours that the facility. Please see the table below that shows the location of all cameras and the number of cameras used for that area and Diagram 5.5.1. Location # of Cameras Location # of Cameras Retail Showroom 4 Security Office 1 Registers 3 Back of House Hallway 3 Vault 3 Driver/Dispatch 1 Intake/Processing 1 5.8.2. Exterior Camera Placement There will be 7 cameras to cover all exterior areas which includes the roof and access hatch. All exterior cameras will record constantly 24 hours per day, 7 days per week, and shall be in weather-proof enclosures, located in areas where the risk of vandalism is mitigated and shall have the capability of switching between color and black and white depending on weather and light conditions. Please see the table below and Diagram 5.5.1 for numbers and locations of exterior cameras. Page 162 of 408Page 612 of 976

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Location # of Cameras Location # of Cameras Exterior Street (Eastern Ave.) 2 Parking Lot 4 Exterior Street (Lubec St.) 1 5.9. Surveillance Storage The recording server located in the Security Room will have a storage capacity to store 90 days of video and will be secured in a tamper proof enclosure. The system will be equipped with a failure notification system that provides notification to the licensee of any interruption or failure of the video surveillance system or video surveillance-system storage device. If the camera system fails to operate at any time, the facility will cease operations and will at to time be open for business while the system is down, regardless of the presence of security officers. The server will be connected to an uninterruptible power supply (UPC) rated for a minimum of 10 minutes. Prior to 90 days, no video will be erased without the prior approval of the Chief of Police or other designee. We will also be downloading footage to an external hard drive as for added caution. Mecca will employ state-of-the art external and internal cameras, each with a minimum resolution capacity of 1280 X 720 pixels per sq. inch. The specific cameras used will be Hanwha 5mp IR Flateye. This is sufficient to allow facial identification and criminal prosecution of anyone in or nearing the facility. All cameras will be equipped with motion detection, and will have infrared technology for low light conditions, capable of identifying activity at night or in unlit rooms. The eagle eye bridge is tamper proof and will be housed inside a tamper proof enclosure. The enclosure will be alarmed so that if it is tampered with the alarm would sound. All recorded images will clearly and accurately display the date and time of recording. Each camera shall be permanently mounted and in a fixed location. Each camera shall be placed in a location that allows the camera to clearly record activity occurring within 20 feet of all points of entry and exit. The placement and focus will allow for the clear and certain identification of any person and activities in all areas required to be filmed. Video footage and live feed can be viewed on a mobile device that has access to the internet. We can provide these credentials to the City and the Police Department for remote and real-time access. 5.10. Alarm and Monitoring System We will be contracting with the Alarm Company named below for installation, maintenance and monitoring of an alarm system that covers the building perimeter and all entry doors into the building. This system will provide panic alert for added protection and a default emergency code to declare an emergency exists within the facility to alert the monitoring central station and to summon local law enforcement to the business. The panic buttons will be located in the lobby, main showroom, storage room, merchandise sales area, online pickup room, security room and safe room. Panic buttons will provide direct notification to the Sheriff’s Department. The alarm systems will be monitored 24 hours per day, 7 days per week, and permit Page 163 of 408Page 613 of 976

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remote monitoring through CCTV. Window, door break tags, and motion detection sensors will be installed for added security during hours of non-operation. A keypad to activate a silent alarm upon entry of a distress code, will be considered for installation in the Vault, Safe room, and records office. The contact information for the Alarm Company is: Company: Bay Alarm Representative: Mike Pendergast Email: [email protected] Phone: 818-441-3207 5.11. Use of Onsite Security guards Uniformed licensed security personnel shall be employed to monitor site activity, control loitering and site access, and to serve as the visual deterrent to unlawful activities. Mecca fully intends on using armed security guards to monitor such activity during business hours. All security guard personnel will be contracted by Bolton Security, LLC, be at least 21 years of age and be licensed by the Bureau of Security and Investigative Services. 5.11.1. Number of Guards This facility will require two (2) armed security officers. Additional guards may be dispatched to the premises on days of extraordinary volume to help with any potential traffic issues. 5.11.2. Hours of guards Proposed hours of operation for Mecca Bell Gardens will be 8:00 a.m. to 10:00 p.m., Monday through Sunday; Officers will arrive 30 minutes prior to opening and remain on the premises until all staff safely vacates the building. 5.11.3. Security Guards Role and Responsibilities All security personnel will be thoroughly screened, trained, and strictly supervised by our Security Department working in conjunction with the security company, to ensure they are of the highest capability. Security personnel will perform and keep records of having performed routine regular inspections of all security systems, barriers, gates, doors, and locks, immediately reporting any malfunctioning or compromised security feature to the Security Agent. Any incidents qualifying as irregular or suspicious will be handled immediately. Mecca’s Security Guards will follow these policies: • Security Guards shall be charged with preventing violations of the law, reporting suspicious persons, vehicles, circumstances and all criminal offenses to the Police Department. • Security Guards shall be uniformed in such a manner so as to be readily identifiable as a security guard by the public. The sole purpose of the Security Guards shall be to provide for the protection and safety of the business, its authorized personnel, and customers. Security Guards shall not be required to perform additional, non-security related duties within the business. Page 164 of 408Page 614 of 976

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No security officer shall operate in an undercover” capacity without prior notification to law enforcement. All security officers shall be in possession of a valid state mandated guard card. (Division 3, Business and Professions Code, Chapter 11.5. Private Security Services) 5.12. Perimeter Security 5.12.1. Doors All doors within the building and access to the exterior will be self-closing and will not be propped open during business hours. All limited access doors will utilize commercial-grade locks and controlled with electronic keycard access. The customer entrance will be a double door accessed from the parking lot, which opens into a lobby area where customers will check in. 5.12.2. Windows The building’s street facing windows are designed at higher heights to prevent burglary. (See renderings in Section 3.6.) The front windows will be fortified with bullet proof/break resistant material. No sign placed on the premises shall obstruct any entrance, exit or window. 5.12.3. Nuisance/Loitering Patrolling Security officers will actively patrol the perimeter of the facility to prevent any loitering outside the facility or within at least a 50-foot radius of the premises, including the rear of the building and the parking areas. Security staff will be trained to identify and respond appropriately to all levels of suspicious or nuisance activities. No unauthorized persons will be allowed to enter the facility at any time. Active patrolling and immediate eradication of any graffiti should it occur will prohibit and deter such activity. Mecca shall have a strict “No Loitering” policy. Employees may arrive at the business premises no more than 30 minutes before their scheduled shift and must leave the business premises within 30 minutes after clocking out. Security personnel shall be vigilant in observing both the retail sales area and exterior premise areas to detect and, if necessary, communicate with suspected loiterers concerning their purpose, and prevent individuals from remaining on the premises without a valid purpose. 5.12.4. Lighting The Dispensary’s exterior and parking lot will be equipped with security lighting (including motion detectors) for added after-hour security. The main objectives of our security lighting system are to illuminate dark areas and detect and recognize movement in the protected areas. The best vision with outdoor lighting is obtained from downward directed and shielded security lighting that is constantly on, supplemented with instant-on lighting triggered by motion detectors. The photometric plan is included with the Project’s CUP application. 5.12.5. Fencing The Project will retain the existing steel fencing and gate off Lubec Street. The steel fencing will be extended to replace existing chain link fencing along the eastern property line which abuts a vacant lot. A pedestrian entry also will be added to Lubec Street. Page 165 of 408Page 615 of 976

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5.13. Building Egress and Ingress The Premises has very limited points of access. The main entrance into the cannabis retail a facility will be through the double doors accessed from the parking lot. Customers will be age-verified and checked in prior to being allowed entry into the Sales Area. This will be the primary point of ingress and egress for customers and staff. The exceptions are for distributors making shipments and Mecca delivery drivers. All persons entering the facility shall take off all sunglasses, hat wear, hoodies, or any type of identification obstruction/ intrusion while in the business. This will allow the cameras to record a clear view of facial features for identification purposes. 5.13.1. Customers Prior to having access to the Sales Area of the Dispensary, each customer will be required to present valid identification to ensure the customer is at least 21-years of age for adult-use or at least 18 years of age with doctor recommendation for medicinal use. If the customer is a medical cannabis patient, staff will also request a physician recommendation or County issued medical marijuana identification card (MMIC). 5.13.2. Staff Employees arriving for work, will generally enter and exit the facility through a separate employee-only entrance that utilizes electronic keycard access. 5.13.3. Delivery Staff Mecca delivery drivers will use a dedicated entrance directly to the Driver/Dispatch room. The entrance will be controlled by electronic keycard access. 5.13.4. Vendors Vendors shipments will be accepted through the employee entrance. The area in front of the door will remain clear from parked vehicles to allow for safe and secure unloading. 5.14. Operational Security 5.14.1. Cash Handling Any safe drops (not requiring safe opening) will first be machine-counted, recorded and marked, before being dropped into the safe. Any drops will be entered into a physical safe log that has the date, time and amount dropped. The log would have the signatures of the employee and manager and would be maintained in the safe room. The drop safe will be secured with a time-lock such that it may be opened, and cash removed, only during pre-determined time windows, such as for the dispensary opening process, during times when vendors are to be paid, and for bank deposits. Any cash provided to staff for purposes of transacting any daily sales activity will be strictly logged and accounted for. No employee will be authorized to remove cash from any cash draw without supervision of manager and security personnel. All cash transactions will be logged into the POS system. The GM or an assistant manager will be responsible for filling all POS cash drawers at the beginning of a sales associates’ shift with $180 in bills and $20 in coins, will then assign a cash drawer to a designated associate, and have the associate double-check the count. All of this will be recorded by a camera. The Dispensary Floor manager will Page 166 of 408Page 616 of 976

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check register drawers twice per shift and make drops in increments of $1,000 into the drop safe, accompanied by security guard. At the end of the shift, a sales associate with a cash drawer will be taken one-by-one to the security office to count out cash and confirm the count. Any discrepancies will require a further review of the POS sales for the day across all associates. If the discrepancy still exists, then further action will need to be taken which may, depending on the nature of the discrepancy, require discipline or reporting pursuant to CCR § 15036. Use of cash by delivery drivers will be strictly controlled, and Mecca will only provide drivers cash needed at the beginning of a route necessary to make change as requested by customers at the time of an order and then the Processor/Router will reconcile the cash for each driver at the end of each route and place it into the POS drawer located in the storage room. No more than $50,000 will be held on-site at any one time. Mecca will arrange for an armed courier service to schedule cash pick-ups for deposits whenever it appears that Mecca is nearing $50,000 in cash. Courier pickups will be recorded on camera and a security guard will always be present for cash exchanges. 5.14.2. Receiving Shipments and Inventory Control Mecca’s receiving procedures were designed with security as a top priority. Shipments will be received only through a separate, dedicated and secured set of double doors at the rear of the building, known as the Receiving Area, not accessible to the general public. (See Premises Diagrams in Section 5.5.) • Mecca will accept shipments of cannabis goods only during hours of operation (9:00 a.m. to 4:00 p.m.) as permitted by the City of and, ideally, at times of days that are off-peak sales hours to avoid creating congestion at the premises. • Distributors will be instructed to confirm estimated time of arrival at least 2 hours beforehand to give Mecca and its Security personnel enough advance notice. Onsite security guards will monitor the exterior of the premises in anticipation of a delivery to ensure no security threats are present prior to the distribution vehicle’s arrival. • The distributor agent will be directed to the rear of the building where there will be a double-door with a bell and a sign that reads: “NOT A PUBLIC ENTRANCE – RESTRICTED ACCESS – USE CALL BOX FOR ACCESS.” The distributor agent will announce his or her arrival to security staff by using the call box and informing security staff of the distribution company name and agent name. Access will not be granted to a distributor not scheduled and confirmed two hours prior. Security guards will take the following steps to receive distribution shipments: • The security guard will leave the Security room to meet the distributor agent. If the Distributor is not on the schedule, the distributor will be turned away and scheduled for a new day. • The security guard will radio the Receiving/Processing Specialist of the arrival so they can be prepared to receive the shipment. Page 167 of 408Page 617 of 976

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• The security guard will open the door to greet the distributor, check the distributor’s identification and have the distributor sign into the visitor log and issue a visitor badge. • The security guard will then escort the distributor to the Receiving Inventory room where the Receiving/Processing Specialist will be waiting and will reconcile the shipment with the shipping manifest by opening all batch boxes. • Once the accuracy of the manifest and the products delivered are confirmed, the Receiving/Processing Specialist will electronically sign the manifest and if payment is required, the accounting department will provide the payment to the distributor under supervision by security. • The distributor agent will be signed out and surrender the visitor badge, and will be escorted by Security out through the receiving area double doors and be on his/her way. All cannabis products accepted will be inventoried in Metrc and given a label with UID code in accordance with CCTT. All product movement within the facility will be recorded in Metrc and only the Metrc Manager and delegated Metrc account users have authority to log transfers of product. Mecca will complete inventory reconciliations of on-hand physical inventory against Metrc records every 28 days. Any “significant discrepancies” (as defined by CCR § 15034) in inventory reconciliation will result in an audit and, if a significant discrepancy exists, a report to the DCC and local law enforcement. 5.14.3. Deliveries Only persons with clean driving records will be hired as delivery drivers. In addition, delivery drivers will be trained in extensive procedures prior to being allowed to deliver cannabis products, including the following safety protocols: • The Delivery Driver shall be required to carry a current copy of Mecca’s DCC- issued retailer license, his or her driver’s license, and a laminated employee badge. • No more than $10,000 worth of cannabis product shall be in the vehicle at any given time based on the retail price of the products. • Orders will be locked in a secure box in the vehicle that is not visible from the exterior. • Once the driver arrives at the delivery location they will call the customer to let them know they have arrived and will meet the customer at their door; • A delivery driver will not complete a transaction with a customer from the vehicle, so that the vehicle doors may be kept locked and secured, and reduces the potential for theft of cannabis products or cash-on-hand; • The driver shall first verify the customer’s identity by checking a valid, unexpired California driver’s license, passport, or other acceptable form of government-issued identification. Page 168 of 408Page 618 of 976

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• The driver shall cross-reference the Delivery Ledger to the identity of the person and shall verify their identification. The customer shall sign a copy of the delivery request receipt, either electronically or on paper. • Cash will be stored in a locking pouch secured in the locked box as well. • The driver shall take a route from the licensed premises to the delivery address, and then directly to the other delivery addresses, and back to the licensed premises, without deviation, except for necessary fuel, rest, and repair stops or because road conditions make the continued use of the route unsafe, impossible, or impractical. • No cash or cannabis product shall ever be left unattended in the vehicle unless it is locked, and the alarm is activated. • Upon exiting the vehicle, the driver shall lock the locked box, lock the vehicle and set the alarm; • No cash or product shall be left in the vehicle overnight. • The driver logs all stops, the time of the stop, and the reason for the stop and shall provide a copy to the Processor/Router upon returning to Mecca’ s premises. 5.14.4. Delivery Vehicles A permanent GPS device will be affixed to each delivery vehicle and shall remain active at all times during the delivery, so that Mecca can track the geographical location of the vehicle. (CCR § 15417(d).) This information shall be maintained for at least 90 days. All delivery vehicles will also be equipped with an alarm system and secure lock box for storage of cash and cannabis products. (CCR § 15417(b)-(c).) Delivery vehicles will be plainly marked and not include any overt or obvious indications of the products being carried. (CCR § 15417.) 5.14.5. Retail Sales The Sales Area will be staffed by at least two employees at all times. No products will be available for a customer to access without the assistance of a Budtender. There will be tethered samples on display of certain products for viewing and otherwise all products will be viewable in locked display cases that cannot be handled without Budtender assistance. Customers will need to request a Budtender to remove from a display case any items that they want for purchase and the Budtender will secure the product behind the register counter if the customer wants to continue shopping. The Budtender will check out the customer by scanning the barcode UID of each product. The sales staff will ensure only the quantity authorized by law will be purchased. If the Budtender is alerted by the POS system that the purchase exceeds daily limits, they will not be able to continue processing the transaction. The Budtender will put all cannabis products into an opaque bag and review the contents of the bag with the customer to ensure the contents are correct and then seal the bag before the purchase is complete. The Budtender will direct them to the exit, which will return them to the lobby. Page 169 of 408Page 619 of 976

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5.14.6. Information Technology Mecca will have IT maintenance including software registration, security patches, malicious software prevention, network access monitoring, employee IT security training and vulnerability assessments. Mecca will ensure that all employee passwords for software and network access are changed every six (6) months. Access to protected information will be restricted to the GM and appropriate personnel only. Examples of protected information include but are not limited to: (i) security and cash management procedures; (ii) asset and inventory lists; (iii) network data; (iv) floor plans of critical areas; (v) passwords; (vi) customer/patient records; (vii) employee records. 5.14.7. Emergency Security Policies and Procedures Contingency plans will be in place to address fire alarm or earthquake scenarios. Plans shall include the immediate evacuation and subsequent immediate lock down of the facility. In the event of power outage or utility failure, employees will be instructed to remain calm and stay put. If employees are in an unlit area, Mecca will instruct them cautiously proceed to an area with emergency lights (or natural lighting) and call and report the outage; wait for further instructions from the upper management and/or managers. If directed to evacuate, assist authorized visitors, vendors, and others as necessary. Mecca will cease all operations until all systems, including security cameras, and alarm systems, are back online. The Dispensary’s security system will remain active in the event of a power outage in that all controlled access doors will default to a locked position and have the capability to be overridden manually. Alarm and camera surveillance systems will remain active as the alarm will have a built-in independent power sources and monitoring is done remotely and the camera surveillance system will likewise have an independent power source. Access doors will be designed to maintain limited access in event of a power outage so the locks do not default to being released. 5.15. Employee Policies Employees entering the facility must have their access card and employee badge to enter the facility. No employee or principle will be permitted access if under the influence of alcohol or cannabis while on the premises. There shall be no after-hour gatherings of employees such as social functions or events before opening or after the close of business, except for events sanctioned by management such as employee meetings, inventory audits, or pre-approved tours or inspections. 5.15.1. Hiring Practices Mecca conducts background checks on all of its employees, as permitted under California law, to ensure potential employees do not have disqualifying criminal convictions. As part of the onboarding process, employees undergo training on the importance of security and enter into a employment agreement containing express non-disclosure requirements for Mecca’s security measures. 5.15.2. Preventing Employee Theft and Diversion To prevent employee diversion of cash or product from the premises, all activity Page 170 of 408Page 620 of 976

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and transactions will be conducted in the secure areas only in full view of security cameras. All cannabis products and cash will be stored in limited access areas that under video surveillance and accessible only to authorized persons. Cash will be stored in a drop safe located within the manager’s office. Employees who are not authorized to be on the premises or have finished their shift will not be allowed to remain at the facility. All cannabis goods will be strictly accounted for from the moment they enter the premises through the time they are either sold to a customer or destroyed using CCTT. Consistent with CCR § 15036, Mecca will notify the DCC and local law enforcement within 24 hours of discovery of any (i) significant discrepancy in inventory, (ii) diversion, theft, loss or any other criminal activity pertaining to the operation of Mecca, including by any agent or employee of Mecca, (iii) loss or alteration of records related to cannabis goods, customers or Mecca employees or agents; or (iv) any other breach of security. 5.15.3. Security Training As part of its onboarding process, Mecca will ensure that all of its personnel are properly trained in all of the Mecca’s security procedures and policies set forth herein. Management will ensure each employee receives ongoing security training as part of the extensive onboarding training and continuing education and makes changes to security policies in conjunction its Security Consultant as necessary to ensure ongoing safety and security of its operations. 5.15.4. Implementation & Ongoing Compliance Mecca will implement its security procedures in consultation with its security manager and the Sheriff’s Department. Additionally, Mecca will review its security policies at least annually with its security manager to ensure it remains current. If regulatory changes occur, Mecca will revisit its policies to ensure it remains compliant with any new requirements from the City.

PUBLIC NOTIFICATION
NOTICE OF PUBLIC HEARING A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF BELL GARDENS APPROVING CONDITIONAL USE PERMIT NO. 2024-048 AND A RESOLUTION RECOMMENDING APPROVAL OF AN ORDINANCE FOR A PROPOSED DEVELOPMENT AGREEMENT AUTHORIZING A CANNABIS RETAIL USE AT 6638 EASTERN AVENUE, BELL GARDENS, CA 90201 NOTICE IS HEREBY GIVEN, the Planning Commission of the City of Bell Gardens will conduct a public hearing to consider approval of a conditional use permit and recommendation to the City Council to approve an ordinance to enter into and execute a development agreement to authorize a cannabis retail storefront approximately 3,782 square feet in size, located within Zone M-U (Mixed Use Residential/Commercial) and within the MU (Mixed Use Commercial/Residential) General Plan Land Use Designation. DATE OF HEARING: Wednesday, February 19, 2025. TIME OF HEARING: 5:15 P.M., or as soon thereafter as possible. ENVIRONMENTAL DETERMINATIONS: 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.), staff recommends that action on the proposed conditional use permit and ordinance authorizing a development agreement both are categorically exempt from the provisions of CEQA pursuant to CEQA Guidelines Section 15301 (Existing Facilities) and Section 15061(b)(3) (Common Sense Exemption). INVITATION TO BE HEARD/PUBLIC PARTICIPATION: The public hearing will be held before the City of Bell Gardens Planning Commission at 7100 Garfield Avenue, Bell Gardens, CA 90201 on Wednesday, February 19, 2025, at 5:15 p.m. The public may attend the meeting in person or may view the meeting online. The meeting will be recorded and live streamed on the City's website at https://www.bellgardens.org/i-want-to/watch-commission-meetings. Public comments for the public hearing are limited to three (3) minutes per person. Members of the public can access and participate in the meetings as follows: IN-PERSON: Members of the public can provide in-person comments at the podium in the Council Chamber. The Council Chamber will have seating available for 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 different time is announced by the presiding chair. Speakers who wish to address the Planning Commission should do so by submitting a "Public Comment Card" card by 5:15 p.m. for all other designated public comment periods as listed. BY TELEPHONE: Phone Number: (669) 900-9128 Webinar ID: 892 6467 1097# Passcode: *2021# To address the Planning Commission press *9 to raise your hand then *6 to unmute yourself when instructed. Page 172 of 408Page 622 of 976

PUBLIC NOTIFICATION
VIRTUALLY LIVE: Members of the public may participate via Zoom by clicking here https://zoom.us/join and entering the Zoom Meeting ID: 892 6467 1097 Passcode: 2021. Comments may also be made via the Zoom app by using the “Raise Hand” feature when it is your turn to speak the host will unmute you. Comments will not be accepted in the QandA Chat function of the Zoom app. WRITTEN COMMENTS: Public comments may be emailed to [email protected] or mailed to: Community Development Department, 7100 Garfield Ave., Bell Gardens, CA 90201. To ensure distribution to the members of the Planning Commission prior to consideration of the agenda, please submit comments no later than one (1) hour prior to the meeting. Those comments, as well as any comments received after, will be distributed to the members of the Planning Commission and will be part of the official public record of this meeting. If requested, the agenda and backup materials will be made available in appropriate alternative formats to persons with a disability, as required by Section 202 of the Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12132), and the federal rules and regulations adopted in implementation thereof. Any person who requires a disability-related modification or accommodation, in order to observe and/or offer public comment may request such service by contacting the Community Development Department’s Office no later than 72 hours before the scheduled meeting. The Planning Commission agenda packet will be available in the Community Development Department Office and posted on the City’s website at https://www.bellgardens.org/i-want-to/view-agendas 72 hours prior to the meeting. For more information, you may contact the Community Development Department during regular business hours 7:30 a.m. to 6:00 p.m., Monday through Thursday at (562) 806-7722 or via email to [email protected]. BELL GARDENS COMMUNITY DEVELOPMENT DEPARMENT Gustavo Romo, Deputy City Manager/Community Development Director Posted: January 30, 2025 Bell Gardens City Hall Bell Gardens John Anson Ford Park Bell Gardens Veterans Park - Ross Hall Auditorium Bell Gardens Department of Public Works Daily Journal Corporation (Bell Gardens Newspaper) – General Circulation Page 173 of 408Page 623 of 976

CITY OF BELL GARDENS

OFFICE OF THE CITY MANAGER

EXECUTIVE SUMMARY
TO:Honorable Mayor and City Council Members
FROM:Michael B. O’Kelly, City Manager
BY:John P. Ramirez, AICP, Interim Community Development Director SUBJECT:Consideration of a Lease Agreement between the City of Bell Gardens and the Human Services Association for space in the Resource Center at 6423 Florence Place
DATE: April 14, 2025
RECOMMENDATION:

It is the staff’s recommendation that the City Council adopt a resolution approving a Lease agreement between the City of Bell Gardens and the Human Services Association to continue leasing space at 6423 Florence Place.

BACKGROUND/DISCUSSION:

On April 23, 2014, the City of Bell Gardens and the Human Services Association (HSA) first entered into a rental agreement (First Lease) for the property at 6423 Florence Place, consisting of Suites #101, 102, 201, 202, 203 and 204 totaling approximately 6,942 square feet of space (Premises).

The First Lease ended on April 30, 2017, and continued on a month-to-month basis subject to the same terms and conditions set forth in the First Lease, until an Amended and Restated Lease Agreement (Amended Lease) was executed between the two parties on March 9, 2020 for the initial rent rate of $5,206.50 per month; with an annual increase based by an amount equivalent to the percentage increase in the Consumer Price Index (CPI). The Amended Lease expired on March 31, 2023, and HSA continued on a month- to-month basis subject to the same terms and conditions set forth in the Amended Lease.

Consequently, the tenant is currently paying $5,658.98 monthly.

This proposed Lease Agreement (Lease Agreement) would extend the terms and conditions for three (3) years, to expire on January 1, 2028; with an adjusted initial rent rate of approximately $0.82 per square foot for a monthly rent of $5,692.31, with an annual increase based by an amount equivalent to the percentage increase in CPI. Tenant shall pay telephone, internet, and electricity, and any and all utility or other services provided in Tenant’s name during the period of Tenant’s occupancy, without liability to the City.

City shall pay water and waste disposal charges associated with the Premises.

CONCLUSION:

Having a local office that provides social services and support to families to promote wellness and building of strong communities offers several benefits, including access to resources, connective support for early childhood development, family and senior needs, and community and civic engagement, among others. It is recommended that the City Council adopt the attached Resolution approving a Lease Agreement between the City of Bell Gardens and HSA, to provide space for the administration of public services that enhance the quality of life for residents.

FISCAL IMPACT:

None. Lease payments would be made to the City on a monthly basis, to be deposited into the City’s General Fund.

APPROVED ELECTRONICALLY BY:

Michael B. O’Kelly, City Manager
Stephanie Vasquez, City Attorney
Manuel Carrillo, Director of Finance and Administrative Services

RESOLUTION NO. 2025-32

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BELL

GARDENS, CALIFORNIA, APPROVING A LEASE AGREEMENT

BETWEEN THE CITY OF BELL GARDENS AND HUMAN SERVICES
ASSOCATION FOR SPACE IN THE RESOURCE CENTER AT 6423

FLORENCE PLACE
WHEREAS, City of Bell Gardens (“City”) entered into a rental agreement with the Human Services Association (“HSA”) on April 23, 2014 (“First Lease”) to rent a portion of the property located at 6423 Florence Place in the City of Bell Gardens, California, APN:
6358-005-907 (“Property”);
WHEREAS, the Property is improved with a building known as the Resource Center that has been historically used for office space for community service organizations (“Resource Center”);
WHEREAS, the initial term of the First Lease ended on April 30, 2017, and continued on a month-to-month basis subject to the same terms and conditions set forth in the First Lease until the City and HSA entered into an amended and restated lease on March 9, 2020 (“Amended Lease”);
WHEREAS, the term of the Amended Lease ended on March 31, 2023, and continued on a month-to-month basis subject to the same terms and conditions set forth in the Amended Lease;
WHEREAS, HSA is a non-profit organization that provides social services and comprehensive support to families in southeast Los Angeles to promote wellness and build strong communities;
WHEREAS, the services provided by HSA at the Resource Center serve a public benefit to the City by enhancing the health and welfare of City residents; and WHEREAS, as a result, the City and HSA desire to enter into a new lease agreement to continue for the benefit of the community.

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

SECTION 1.The City Council hereby finds and determines that the foregoing recitals are true and correct, constitute a material part of this Resolution, and therefore incorporate them herein in their entirety as part of the findings.

SECTION 2.The City Council hereby approves a Lease Agreement by and between the City and HSA.

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SECTION 3. The City Council further authorizes and directs the City Manager to execute the Lease Agreement on the City’s behalf along with any other ancillary documents relating thereto, including any amendments, extensions, and other documents consistent with and necessary to the implementation of 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.

PASSED, APPROVED and ADOPTED this 14th day of April 2025.

THE CITY OF BELL GARDENS
________________________________
Jorgel Chavez, Mayor
APPROVED AS TO FORM: ATTEST:
________________________________ _______________________________ Stephanie Vasquez Daisy Gomez
City Attorney City Clerk
I, ____________________, City Clerk of the City of Bell Gardens, hereby CERTIFY that City Council Resolution No. ___________was adopted by the Bell Gardens City Council

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at a regular meeting of the City Council held on ___________________, and was approved and passed by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

LEASE AGREEMENT

BETWEEN THE CITY OF BELL GARDENS

AND THE HUMAN SERVICES ASSOCIATION FOR
SPACE IN THE RESOURCE CENTER AT 6423 FLORENCE PLACE
This Amended and Restated Lease Agreement (“Agreement”) is entered into on this ___ day of _______________, 2025 (“Commencement Date”) between the CITY OF BELL GARDENS, a municipal corporation (“City”), whose address is 7100 S. Garfield Avenue, Bell Gardens, California 90201, and the HUMAN SERVICES ASSOCIATION, a California Nonprofit Corporation (“Tenant”) under Section 509 (a) (2) of the Internal Revenue Code. The City and the Tenant hereinafter may also be referred to individually as “Party” and collectively as “Parties.”

RECITALS
WHEREAS, City entered into a rental agreement with Tenant on April 23, 2014 (“First Lease”) to rent a portion of the property located at 6423 Florence Place in the City of Bell Gardens, California, APN: 6358-005-907 (the “Property”); and WHEREAS, the Property is improved with a building known as the Resource Center that has been historically used for office space for community service organizations (the “Resource Center”); and
WHEREAS, Tenant is a non-profit organization that provides social services and comprehensive support to families in southeast Los Angeles to promote wellness and build strong communities. The services provided by Tenant at the Resource Center serve a public benefit to the City by enhancing the health and welfare of City residents; and WHEREAS, the initial term of the First Lease ended on April 30, 2017, and continued on a month-to-month basis subject to the same terms and conditions set forth in the First Lease until the Parties entered into an amended and restated lease on March 9, 2020 (“Amended Lease”); and
WHEREAS, the term of the Amended Lease ended on March 31, 2023, and continued on a month-to-month basis subject to the same terms and conditions set forth in the Amended Lease; and
WHEREAS, the Parties desire the tenancy to continue for the benefit of the community; and
WHEREAS, the Parties now desire to enter into a new tenancy agreement on the terms provided herein.

NOW, THEREFORE, in consideration of the foregoing, and the covenants and agreements made on the part of each Party, as hereinafter set forth, the sufficiency of which consideration is hereby acknowledged by each Party, the Parties agree upon the following terms and conditions:

1. RECITALS. The above recitals are true and correct and incorporated into this Agreement by this reference.

2. AMENDMENT AND RESTATEMENT. Effective on the Commencement Date, this Agreement amends, restates, replaces and supersedes the Amended Lease entered on March 9, 2020, in its entirety; provided, however, nothing in this Agreement shall be construed to release or relieve Tenant or City from any obligations or liabilities under the Amended Lease accruing up to the Commencement Date, and all of such obligations and liabilities under the Amended Lease shall survive the execution of this Agreement.

3. LEASE OF PREMISES. City hereby leases to Tenant, and Tenant leases from City, on the terms and conditions set forth in this Agreement, that portion of the Resource Center consisting of Suites #101, 102, 201, 202, 203 and 204 totaling approximately 6,942 square feet of space (“Premises”) designated in “Exhibit A” attached hereto and incorporated herein by reference.

4. TERM.
a. Initial Term. The initial term of this Agreement shall be for three (3) years (“Initial Term”) that commences on Commencement Date and ends on January 1, 2028, unless extended or sooner terminated as provided under this Agreement. b. Extension Options. Provided the Agreement is in full force and effect and Tenant is not in default at the time it exercises its option, Tenant shall have the right and option to extend the Initial Term for up to two (2) additional one (1) year extension terms (each an “Extension Term”). Tenant may exercise its extension option by giving written notice to the City of its election no later than six (6) months prior to the expiration of the then current Term. The capitalized word “Term” shall refer to the Initial Term, inclusive of any Extension Terms. Except as otherwise provided under Section 4 below, the Agreement shall be subject to the same terms and conditions set forth in this Agreement during any Extension Term.

c. Holding Over. Tenant will not be permitted to hold over possession of the Premises after the expiration or earlier termination of the Agreement without the express written consent of City, which consent may be withheld in City’s sole and absolute discretion.

If Tenant holds over after the expiration or earlier termination of the Agreement with or without the express written consent of City, then, in addition to all other remedies available to City, such holding over shall be deemed a tenancy from month-to-month, subject to all the terms, provisions, covenants, and conditions of this Agreement, except that Tenant shall pay Rent to City at a rate equal to one hundred fifty percent (150%) of the Rent payable during the immediately preceding Term. Either Party may terminate such month-to-month tenancy by giving the other thirty (30) days written notice of termination. Nothing contained herein, including acceptance by City of any rent during such month-to-month tenancy, shall

constitute City’s consent to a hold over hereunder or be construed to be an extension or renewal of this Agreement.

5. RENT.
a. Initial Rent. Beginning on the Commencement Date, Tenant shall pay to City, rent for the Premises in the amount of Five Thousand Six Hundred Ninety-Two and 31/100 ($5,692.31) per month (“Rent”). Rent shall be due and payable to City in advance on the first day of every month of the Term. Rent shall increase annually as provided in Section 4(d) below. The Parties agree that Rent reflects a rate of approximately $0.82 per square foot based on 6,942 square feet of leased Premises. b. Payment of Rent. Payment of Rent shall be paid to the City in lawful money of the United States of America, without notice or demand, and delivered to the City of Bell Gardens at the address first written above Attention: Finance Department Office. c. Late Payment. If Tenant fails to pay Rent within fifteen (15) days after the date when due, then Tenant shall immediately pay City a late fee equal to ten percent (10%) of the amount past due.
d. Rent Increases. Rent shall be adjusted annually on the anniversary of the Commencement Date, in an amount equal to the percentage increase over the prior year from the base index in the then latest available Consumer Price Index, as prepared and release by the U.S. Department of Labor, Bureau of Statistics, for the Los Angeles- Riverside-Orange County area. The last index published for the month of January 2024 shall be deemed to be the base index for the purpose of this section.

6. USE OF PREMISES.
a. Authorized Use. The scope of the use granted herein shall be limited to use by Tenant, its guests, permittees, and invitees only for purposes of providing Children’s Health Outreach, Enrollment, Utilization and Retention; Rider Relief Transportation Program, meal services, and additional programs designed to benefit youth, the elderly, and individuals with disabilities in the City. Tenant shall not materially change the use of the Premises without the City’s prior written consent. Tenant shall not sublicense, lease, rent, or otherwise authorize the use by or transfer the Premises to any other person or entity.

Tenant acknowledges and agrees that the Premises subject to this Agreement includes only the physical space as designated on Exhibit A, and does not include any furniture, telephonic or computer equipment, or any other equipment, supplies, or moveable items.

b. Parking. Tenant shall be permitted to exclusively use, at no additional fee, no more than five (5) parking spaces for its employees, guests, permittees, and invitees at the City’s public library parking lot located closest to Florence Place. Signage will be posted identifying the parking spaces for Tenant’s use. Tenant shall have access to the public library parking lot Monday through Friday, during normal business hours. c. Use of Resource Center. Tenant acknowledges and agrees that the Resource Center shall be primarily utilized as a facility for City-sponsored or City-based

programs and that the foregoing is the City’s stated purpose for the Resource Center. City, in its sole discretion, has the unilateral right to make modifications, alterations, additions, improvements or other changes to the Resource Center including the Premises. City will use reasonable, good-faith efforts to share the Resource Center with Tenant and allow Tenant to enjoy quiet possession of the Premises. However, Tenant acknowledges and agrees that, in the event any issues, disputes, or conflicts arise with respect to the City’s stated purpose for the Resource Center and Tenant’s rights under this Agreement, this Agreement shall be subordinate to the City’s rights herein and construed in favor of the City and in a manner that allows the City’s stated purpose to prevail. Tenant, its agents, servants, employees, clients, or invitees shall not purposefully commit any acts, regardless whether recklessly or intentionally, which hinders, impairs, impedes or is otherwise contrary to the City’s stated purpose.
d. Compliance with Laws. Tenant shall at all times observe and comply with all laws, ordinances, codes, and regulations now in effect or subsequently imposed whether federal, state, or local.
e. Abandonment. If Tenant abandons or vacates the Premises for longer than forty-five (45) days, the City may terminate this Agreement immediately.

7. REPAIRS AND MAINTENANCE.
a. “As-Is” Condition. Tenant specifically acknowledges and agrees that City is leasing the Premises to Tenant on an “as is with all faults” basis and that Tenant is not relying on any representations or warranties of any kind whatsoever, express, or implied, from City or its agents, as to any matters concerning the Premises. b. Tenant’s Obligations. Tenant shall not commit, or suffer to be committed, any waste in, on, or about the Premises and shall not permit any objectionable odors to carry outside the Premises. Tenant shall have exclusive use and possession of the Premises and shall bear all costs and responsibility for maintenance of the Premises. Tenant shall maintain the Premises in a clean, safe, and sanitary condition at all times during the Term of this Agreement. If Tenant fails to maintain the Premises in a clean, safe and sanitary condition for fifteen (15) or more calendar days after being given written notice from City of Tenant’s failure to so maintain the Premises, City or City’s agents may enter the Premises upon twenty-four (24) hours’ notice to clean, repair or otherwise maintain the Premises.

Tenant shall be liable to City for the full costs of such cleaning, repair or maintenance and failure to pay such costs within thirty (30) days of written request shall be considered a breach of this Agreement.
c. City’s Obligations. If City fails to perform any obligations required under this Agreement within sixty (60) days after written notice from Tenant, the City shall be in default and Tenant may terminate this Agreement. Tenant’s written notice shall detail the specific obligations City failed to perform. If City commences performance within sixty (60) days but the nature of the obligation requires more than sixty (60) days, the City will thereafter diligently prosecute the same to completion.

8. ALTERATIONS AND ADDITIONS. Tenant shall not make any alterations,

additions, or improvements to the Premises without the prior written approval of the Community Development Director of the City and the City Manager. Tenant agrees to indemnify and hold the City and the Premises free and harmless from any and all liabilities, claims, liens, encumbrances, and judgments created or suffered in connection with labor, services or materials furnished in connection with any alterations or additions which Tenant causes to be made to the Premises. The City, in its sole discretion, shall decide whether to make any additions, improvements, removals or any other alterations to the Premises.

Should the City decide to make any significant changes to the Premises, City will give Tenant notice of any proposed changes within a reasonable amount of time and use good faith efforts to allow Tenant to remain in quiet possession of the Premises so long as it is feasible to do so.

9. INSURANCE AND INDEMNITY.
a. Tenant shall secure and maintain a policy of comprehensive liability insurance, in which the City is named as additional insured, for claims arising out of any use or condition of the Premises in at least the combined single limit of $1,000,000 per occurrence for bodily injury or death and damage to the property. The insurance shall further cover claims arising out of negligent acts of their clients and guests. The aforementioned minimum limits of policies shall not, however, limit the liability of Tenant hereunder. Tenant shall furnish certificates of such insurance to the City, and the form thereof shall be subject to the reasonable approval of the City’s Risk Manager. Said policy shall include a separate endorsement, in a form reasonably satisfactory to the Risk Manager and City Attorney, naming the City of Bell Gardens and its officers and employees as additional insureds. b. Tenant, its agents, servants, employees, clients, invitees, or volunteers shall be solely liable for any and all liability arising from acts of negligence, reckless behavior, or willful misconduct. The City, its employees, officers, and/or agents shall not be liable for death, injury, or damage of any kind to persons or property from any cause whatsoever by reason of the use and occupancy of the Premises by Tenant, its agents, servants, employees, clients, or invitees.
c. Tenant hereby waives all claims and causes of actions against City for any such injury or damage as well as for consequential damages, loss of profits, and business interruptions. City shall not be liable to Tenant, its agents, servants, employees, or invitees for any damage, loss, or injury caused by the condition or design of, or any defect in, the Premises, unless the loss, damage, or injury is the result of the negligence or willful misconduct of the City or its duly authorized employees, officers, or agents. In that connection, Tenant waives the benefit of California Civil Code Section 1542, which provides as follows:

A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her would have materially affected his settlement with the debtor.

The provisions of this section shall survive the termination of this Agreement.

d. Tenant agrees to indemnify City, its officers, directors, employees, agents, and volunteers and hold said individuals harmless and free from and against any and all liability, loss, cost, expense, or obligation (including, without limitation, reasonable attorneys' fees, court costs, and other expenses incurred by City) on account of or arising out of, and this Agreement. The parties agree on the express condition that City shall not be liable for, or suffer loss or incur any liability, including but not limited to, injury or death of a person; damage, interference or loss of use of property and any other non-economic damages, caused by Tenant, its agents, servants, employees, clients or invitees or connected with the condition or use of the Premises or the condition of use of personal property, moveable items or fixtures on or about the Premises.

e. The insurance policy obtained by Tenant shall specifically insure performance by Tenant of the indemnity set forth in the immediately preceding paragraph, provided that the coverage is primary and any coverage that the City may maintain shall be in excess thereto, include a cross-liability or severability of interest endorsement and provide that it shall not be canceled or modified without thirty (30) days prior written notice to the City. The liability limits of the above-described insurance policy shall in no manner limit the liability of the Tenant under the terms of the indemnification set forth in the immediately preceding paragraph.
f. Tenant agrees to procure and maintain, at its sole cost and expense, standard form fire, extended coverage, vandalism, and malicious mischief insurance insuring all of Tenant's personal property and trade fixtures located at the Premises, and all fixtures and other improvements installed at the expense of Tenant in the full amount of the value thereof. Said policy shall specifically name the City of Bell Gardens (including employees, agents and representatives) as an additional insured, provide that the coverage is primary and any coverage that the City may maintain shall be in excess thereto, provide that all payments shall be made as required by the comparative interests of the City and the Tenant and provide that it shall not be canceled or modified without thirty (30) days prior written notice to the City.
g. The City and the Tenant each hereby waive any and all rights of recovery against the other on account of losses insured against under any fire and extended coverage insurance policy in force at the time of such loss or damage, but only to the extent that such waiver will not invalidate such insurance. Tenant shall attempt to obtain an endorsement from its insurance carrier providing that the foregoing waiver shall not invalidate the Tenant’s insurance.
h. Within fifteen (15) days from executing this Agreement, Tenant shall deliver to the City’s Risk Manager and the City’s Community Development Director a certificate for each policy certifying that Tenant has obtained the insurance required by this Agreement. Tenant further agrees to deliver to the City a renewal binder for each policy no later than fifteen (15) days before expiration of the policy and/or this Agreement. If Tenant fails to maintain any required policy of insurance, the City may obtain said policy and Tenant shall immediately pay to the City as additional rent, any costs and expenses incurred by the City in acquiring such policy.

i. Each insurance policy required in this Section 8 shall be obtained with insurers acceptable to City with current BEST’S ratings of no less than A-, Class VII. All insurers shall be licensed by or hold admitted status in the State of California.

10. HAZARDOUS MATERIALS.
a. Definition. As used in this Agreement, the term “Hazardous Material” shall mean any substance, water, or material which has been determined by any state, federal, or local government authority to be capable of posing a risk of injury to health, safety, and property, including but not limited to, all of those materials, wastes and substances designated as Hazardous or Toxic by the U.S. Environmental Protection City, the U.S.

Department of Labor, the U.S. Department of Transportation and/or any other governmental agency now or hereafter authorized to regulate materials and substances in the environment.
b. Prohibited Without Consent. Tenant shall not cause or permit any Hazardous Materials to be brought onto, stored, used, generated, recycled, or disposed of in, on, under or about the leased Premises by Tenant, its agents, employees, contractors, licensees, subtenants or invitees, without the prior written consent of City, which City shall not unreasonably withhold or delay so long as Tenant demonstrates to City's reasonable satisfaction that the Hazardous Materials, and the quantities thereof, are necessary or useful to Tenant’s business. Tenant shall demonstrate that such Hazardous Materials are necessary or useful by submitting information to the City in accordance with this paragraph.

Notwithstanding the foregoing, Tenant shall have the right to bring onto, store, use and handle on the Premises minor quantities of generally available Hazardous Materials used for routine cleaning and maintenance of the Premises and other operational aspects of its business.
c. Compliance with Environmental Laws. Tenant shall comply, at its sole cost, with all applicable Environmental Laws pertaining to Hazardous Materials (the “Environmental Laws”), including but not limited to the preparation of business plans pursuant to Health & Safety Code Section 25500 et seq., to the extent applicable to Tenant.

It shall be the sole obligation of the Tenant to obtain any permits and approvals required for the operation of Tenant’s business pursuant to all applicable Environmental Laws. Tenant will prevent any action by or on behalf of Tenant, Tenant's employees, agents, and invitees that will cause the Premises to be in violation of, or will subject the Premises to, any remedial obligations under Federal, State, or local environmental laws, rules, regulations, or ordinances.
d. Disposal of Toxic Materials. Notwithstanding anything to the contrary contained in this Section 9, Tenant shall not release or dispose of any Hazardous Material, in the drains, storm drains, sewers, plumbing, or any other drainage facility within the Premises or adjacent streets that will cause or contribute to a violation of Environmental Laws or contamination of soil, subsoil or groundwater in excess of action levels used by any governmental authority or agency having jurisdiction over such contamination. The offsite disposal of Hazardous Materials shall be in strict compliance with all Environmental Laws. e. Safety. To the extent required by applicable law, Tenant shall maintain

Material Safety and Date Sheets for each and every item or product containing Hazardous Material brought onto the Premises as required by applicable Environmental Laws. Such information shall be kept current at all times.
f. Indemnity. Tenant shall be solely responsible for and shall indemnify, hold harmless and defend City, its officers, employees and agents (with counsel approved by City) from and against any and all liabilities arising from or in any way relating to the use of Hazardous Materials on the Premises, or the presence of Hazardous Materials in or originating from the soil, subsoil, or groundwater located in, on or under the Premises, provided that the liabilities are or are reasonably likely to be a result of or related to the receiving, handling, use, storage, accumulation, transportation, generation, spillage, migration, discharge, release or disposal of Hazardous Materials in, on, under or about the Premises at any time during the Term of this Agreement, and provided that the Liabilities are or were, caused by Tenant or its agents, employees, contractors, licensees, subtenants or invitees. The indemnification by Tenant under this Section shall survive the termination of this Agreement.
g. Cleanup. If Tenant, its agents, employees, contractors, licensees, subtenants, or invitees, causes Hazardous Material contamination or deterioration of groundwater, subsoil or soil in, on, under or originating from the Premises in excess of action levels used by any governmental authority or agency having jurisdiction over such contamination, the Tenant shall promptly notify all appropriate regulatory agencies and take any and all action (the “Necessary Action”) required by appropriate regulatory agencies to clean up such contamination in the manner required by law. Tenant shall promptly furnish the City with a copy of all correspondence with regulatory agencies concerning the Necessary Action. Tenant shall furnish City with a copy of any work plans, descriptions of Necessary Action or progress reports submitted to regulatory agencies for City’s review and comment. City shall have the right to submit written comments on all aspects of the work plan to Tenant and the regulatory agencies, including without limitation, comments on the remediation methodology and appropriateness of clean-up levels. Tenant shall provide the City with ten (10) business days’ written notice of all meetings with regulatory agencies concerning the Necessary Action. City and its consultants shall have the right to attend and participate actively in all meetings with regulatory agencies concerning the Necessary Action, and Tenant shall use its best efforts to facilitate City's exercise of this right to attend and participate, including but not limited to, advocacy with regulatory agencies on City's behalf. Except in the case of an emergency, no Necessary Action shall be commenced without (i) written approval by all regulatory agencies having jurisdiction over the Necessary Action and (ii) prior written notice to City. City shall have the right to have a representative present on the Premises at all times during the implementation of the Necessary Action by Tenant and its agents. Tenant agrees that the Necessary Action will be supervised by and certified by a registered or licensed professional engineer or contractor. Tenant hereby releases City, its officers, employees, and agents, from responsibility for, and indemnifies City, its officers, employees, and agents, (with counsel approved by City) against any liability in connection with the Necessary Action. If Tenant fails to take Necessary Action on a timely basis, City may, but shall not be obligated to, take Necessary Action and in such event, all costs incurred by City with respect thereto shall be for the account of Tenant and recoverable as additional Rent hereunder.

h. Timing for Clean-up/Emergencies. In the event of contamination of the Premises described in this Section, Tenant agrees and warrants and guarantees to City that Tenant shall remediate such contamination, at no cost to City, upon discovery of such contamination. If Tenant fails to initiate clean-up of the contamination (i) within 48 hours after discovery, or (ii) if the contamination poses an imminent hazard to Tenant’s employees, agents, invitees, the public, the Premises, adjacent or other property and/or the environment, within twenty-four (24) hours of the earlier of discovery of such hazard by Tenant or notice of each contamination to City by any person in or in any manner whatsoever, City shall obtain cleanup of the contamination remediation costs. In the event Tenant fails to begin cleanup of the contamination within the time period set forth above considering the extent of the contamination and the hazard posed, City may, at City’s sole option, declare the Tenant in default under this Agreement. i. Notice. If Tenant is required by statute or regulation to give notice to any state, federal or local regulatory authority about the spilling, discharging, releasing, or disposing of Toxic Materials on, in, under or about the Premises by Tenant, Tenant shall immediately notify City. This obligation to notify City shall also extend to any personal injuries or property damage to third parties resulting directly or indirectly from said spilling, discharging, releasing, or disposing of Toxic Materials. If Tenant becomes aware of or has reason to suspect the presence of any Toxic Materials present on, under, or about or coming onto the Premises or of any release of Toxic Materials that has come to be located on or beneath the Premises Tenant shall immediately give written notice of such condition to City as required by California Health and Safety Code §78700 et seq. j. Storage and Use of Toxic Materials. Any and all Toxic Materials permitted in, on, under or about the Premises pursuant to this Lease shall be stored and used in strict compliance with all Environmental Laws. There shall be no pending or uncovered surface storage whatsoever of Toxic Materials in, on or about the Premises. No underground storage tanks shall be constructed, installed, or used without the City’s prior written consent, which consent may be withheld by the City in its absolute discretion.

11. TAXES FOR POSSESSORY INTEREST AND UTILITIES.
a. Tenant recognizes and understands that this Agreement may create a possessory interest subject to property taxation levied on such interest. Parties understand and agree that all taxes and assessments (including but not limited to said possessory interest tax) which become due and payable upon the Premises or upon fixtures, equipment, or other property installed or constructed thereon, will be the full and sole responsibility of Tenant, and Tenant will cause said taxes and assessments to be paid promptly, prior to delinquency.
b. Tenant agrees to pay promptly, prior to delinquency, all bills for telephone, internet, and electricity, and any and all utility or other services provided in Tenant’s name, during the period of Tenant’s occupancy, without liability to the City. City shall pay water and waste disposal charges associated with the Premises. Tenant shall pay all charges for all electrical, internet, cable, telephone services, or other utility related to or in connection with Tenant’s leased Premises as follows: SCE Meters #222012-618637 – Suite #101; 222012-618662 – Suite #102; 222012-618638 -- Suite #201; 222012-618661 -- Suite #202;

222012-618570 -- Suite #203; and 222012-618660 – Suite #204.

12. ASSIGNMENT AND SUBLETTING. Tenant shall not voluntarily, or by operation of law, assign, sublet, transfer, mortgage, or otherwise transfer or encumber all or any part of Tenant’s interest in this Agreement or in the Premises, or rent said Premises or any part thereof, without the prior written consent of the City. Any attempted assignment, transfer, sublease, encumbering or renting without such consent shall be void and constitute a default of this Agreement. In the event a receiver, trustee or conservator is appointed to take possession of the assets of Tenant, or the possession of the Premises, or a general assignment is made by Tenant for the benefit of creditors, or any action is taken by or against Tenant under any insolvency law or bankruptcy act, the City, at its option, may forthwith terminate this Agreement. Any consent by the City to the assignment or other transfer of rights hereunder by the Tenant shall not release the Tenant from any obligations under this Agreement, and the City's consent, unless expressly provided therein, shall not include consent to any subsequent assignment or transfer by the Tenant or the Tenant's heirs, successors, or assigns.

13. ENTRY AND INSPECTION.
a. Tenant agrees that the City, its agents and employees, may enter upon the Premises at any reasonable time, during normal business hours, for the purpose of making inspections, surveys and measurements and performing other work considered necessary by the City, all with the understanding that the same will be performed in such a manner as will cause a minimum of interference with Tenant's use of the Premises. City agrees to provide Tenant with reasonable prior notice of any such entry and inspection. b. Tenant waives any claim for damages for any injury or inconvenience to, or interference with, Tenant's business, any loss of occupancy or quiet enjoyment of the Premises, and any other loss caused by the entry of the City as described herein, and Tenant agrees that there shall be no abatement of rent by reason of the City's entry for the purposes described in this Section 13, and Tenant agrees that there shall be no abatement of rent by reason of the City’s entry for the purpose described in this Section 13. c. The City shall at all times have and retain a key to access the Premises and the City shall have the right to use any and all means that it may deem proper to obtain entry into the Premises in emergencies. Any entry into the Premises obtained by the City by any means whatsoever shall not under any circumstances be deemed a forcible or unlawful entry into the Premises, nor shall such entry be construed to be an eviction of Tenant from any part of the Premises.

14. NO DISCRIMINATION. The Tenant herein covenants by and for itself, its successors, and assigns, and all persons claiming under or through it, and this Agreement is made and accepted upon and subject to the conditions that there shall be no discrimination against or segregation of any person or group of persons on account of race, color, creed, religion, sex, marital status, national origin or ancestry, in the leasing, subleasing, transferring, use, occupancy, tenure, or enjoyment of the Premises herein leased. Nor shall the Tenant itself, or any person claiming under or through Tenant, establish or permit any such practice or practices of discrimination or segregation with reference to

the selection, location, number, use, or occupancy, of tenants, lessees, sub-tenants, or sublessees or vendees in the Premises herein leased.

15. DEFAULT. In the event Tenant fails to keep and perform any term, condition or covenant herein contained, and Tenant fails or is unable to cure such default after being given notice pursuant to and within the applicable time period, if any, specified in Section 1161 of the California Code of Civil Procedure, then all rights of Tenant under this Agreement and to the use and occupancy of the Premises shall terminate and the City shall, in addition to any other remedies available by law or equity, have the immediate right of reentry and may remove all unauthorized persons and property therefrom.

16. TERMINATION BY TENANT. Tenant may at any time terminate the tenancy created by this Agreement by giving at least sixty days (60) prior written notice to the City.

17. TERMINATION BY CITY. In addition to and without elimination of the City's rights of termination pursuant to any other provision of this Agreement, the City may terminate this Agreement by giving at least sixty (60) days prior written notice to the Tenant.

18. SURRENDER OF PREMISES.
a. Upon termination of this Agreement, Tenant, without further notice, shall deliver all keys to the Premises to the Community Development Director of the City at City Hall, 7100 S. Garfield Avenue, Bell Gardens, California 90201. b. If possession is not immediately surrendered upon termination of the Agreement, City may immediately enter and take possession of the Premises and expel and remove Tenant and any other unauthorized person who may be occupying any portion of the Premises. If not then in default, Tenant may remove all furniture, removable trade fixtures and movable equipment installed by Tenant, at the termination of the Agreement; but if the same are not removed within ten (10) days after termination, they shall become the property of the City. All such removal shall be accomplished at a time specified by the City and in a good workmanlike manner so as not to damage any part of the Premises.

c. Any holding over by the Tenant pursuant to Section 4c after expiration or termination of this Agreement shall not be construed to be a renewal or extension and shall not give Tenant any rights in or to the Premises except as expressly provided in this Agreement. In the event of any unauthorized holding over, Tenant shall indemnify the City against all claims for damages by any other tenant to whom the City may have leased all or any part of the Premises effective upon the date this Agreement terminates.

19. ATTORNEY'S FEES. In the event a suit should be brought for recovery of the Premises or for any sum due hereunder, or to interpret or enforce any provision of this Agreement, the prevailing party shall be entitled to all costs incurred in connection with such action, including reasonable attorney's fees.

20. WAIVER OF BREACH. Waiver by the City of any breach of any term, covenant or condition contained in this Agreement shall not be deemed to be a waiver of any subsequent breach of the same or of any other term, covenant or condition contained in the

Agreement. The City's consent to, or approval of, any act shall not be deemed to render unnecessary the obtaining of the City's consent to or approval of any subsequent act by any Tenant nor constitute a waiver of any individual term or covenant. The acceptance of Rent or other sums payable hereunder by the City shall not be a waiver of any preceding breach by Tenant of any provision hereof, other than failure of Tenant to pay the particular Rent or other sums so accepted, regardless of the City's knowledge of such preceding breach at the time of acceptance of such Rent or sums.

21. GENDER AND NUMBER. Words used in the masculine gender shall include the feminine or neuter, and the singular shall include the plural, when appropriate.

22. WAIVER OF CLAIMS. Tenant hereby irrevocably waives on behalf of itself, its successors and assigns and all persons claiming through it, any claim which Tenant may assert against the City for inverse condemnation, relocation payment or, compensation for fixtures and equipment, and/or any other costs, expenses, or claims not specifically listed herein incurred by Tenant in connection with any termination, either by operation of law or otherwise, of this Agreement. Tenant specifically acknowledges that this Agreement may be pleaded as a defense and a bar to any such claim. Tenant further specifically acknowledges that in making this waiver, Tenant has consulted with its attorney and that this waiver is made freely and with knowledge of the character and extent of the rights thus waived.

23. NOTICES. Any notices, demands or other written communications which either party may or is required to give pursuant to the provisions of this Agreement, may be given by mailing the same by certified or registered mail,
to the Tenant:

Human Services Center
6800 Florence Avenue
Bell Gardens, CA 90201
Attn: Ricardo Mota, Chief Executive Officer
to the City:

City of Bell Gardens
7100 S. Garfield Avenue
Bell Gardens, CA 90201
Attn: Community Development Director
Phone: 562-806-7700
Failure or refusal of either party to accept any such mailed notice shall not affect its validity and such notice shall be deemed delivered upon the first date the postal service attempted delivery thereof. Either party may substitute a new address for the receipt of future notices by specifying the new address in a notice mailed by registered or certified mail to the other party. Unless such notice of changed address is so given, the other party shall be entitled to rely upon the address herein set forth for mailing notices pursuant to this Agreement.

24. COVENANT OF QUIET POSSESSION. The City covenants that it will deliver

quiet possession of the Premises to Tenant on the Commencement Date and that the Tenant's quiet possession will not be disturbed by the City or those claiming under it during the terms of this Agreement.

25. SUCCESSORS AND ASSIGNS. Subject to the provisions of Section 12 (Assignment or Subletting), the terms, covenants and conditions contained in this Agreement shall bind and inure to the benefit of Tenant and City and, except as otherwise provided herein, their personal representatives and successors and assigns.

26. RELATIONSHIP OF PARTIES. The relationship of the Parties hereto is that of landlord and tenant, and it is expressly understood and agreed that City is not and will not in any way or for any purpose become a partner of Tenant in the conduct of Tenant’s business. This Agreement and any related documents will under no circumstances constitute a joint venture or partnership between City and Tenant.

27. ENTIRE AGREEMENT. This Agreement constitutes the entire agreement of the parties hereto relating to the Premises and shall supersede all prior written or oral negotiations or agreements of the parties relating to the Premises.

28. MODIFICATION. This Agreement shall not be modified in any particular except by a writing duly executed by the parties. It is expressly understood that this Agreement does not grant Tenant any future rights for the development of the Premises.

29. SEVERABILITY. If any term, condition, or covenant of this Agreement is held by a Court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions of this Agreement shall remain valid and binding. [Signatures on next page]

IN WITNESS WHEREOF, the Parties hereto have caused this agreement to be executed by their respective officers, thereto duly authorized, as of the dates set forth below. "CITY"
The City of Bell Gardens, a municipal corporation of the State of California By: __________________________________ Dated: _____________, 2025 Michael B. O’Kelly, City Manager
ATTEST:

By: __________________________________
Daisy Gomez, City Clerk
"TENANT"
Human Services Association
By: __________________________________
Ricardo Mota, Chief Executive Officer
Dated: _______________, 2025
APPROVED AS TO FORM:

By: __________________________________
Stephanie Vasquez, City Attorney

EXHIBIT A

DESCRIPTION OF LEASED PROPERTY

CITY OF BELL GARDENS

OFFICE OF THE CITY MANAGER

EXECUTIVE SUMMARY
TO:Honorable Mayor and City Council Members
FROM: Michael B. O’Kelly, City Manager
BY:Bernardo Iniguez, Director of Public Works/Facilities Karla Gonzalez, Senior Management Analyst
SUBJECT:Consideration of a Resolution Approving a First Amendment to the Contract Services Agreement with Kimble & Company Fire
Protection Systems for Emergency Fire Protection Services at City Hall and the Police Department Facility
MEETING DATE:April 14, 2025
RECOMMENDATION: It is staff’s recommendation that the City Council:

1. Adopt the attached Resolution authorizing the City Manager to execute a First Amendment with Kimble & Company Fire Protection Systems for emergency fire protection repairs at City Hall and the Police Department Facility; and

2. Appropriate $19,000 in general funds to complete the emergency repairs.

BACKGROUND/DISCUSSION:

On January 13, 2025, the City Council approved the Contract Services Agreement with Kimble & Company Fire Protection Systems (Kimble & Company) to restore the non- compliant fire suppression systems at the Police Department and City Hall facilities in an amount not-to-exceed $72,600.

The contractor began services in accordance with the initial scope of work. However, a site inspection conducted on February 16, 2025, revealed further deficiencies in the existing fire systems, requiring additional underlying repairs to bring the systems into compliance. Some of these items include out-of-date spare sprinklers and response heads, deficient waterflow alarm devices, control valves, hose connections, and main drains. The contractor submitted a cost proposal of $19,000 to complete these additional tasks and ensure the fire systems pass inspection and meet all applicable requirements from the Los Angeles County Fire Department.

CONCLUSION:

Approving a First Amendment would allow for sufficient compensation for Kimble & Company to complete all the necessary repairs and complete the required inspections and certifications.

FISCAL IMPACT:

The cost for additional fire protection system services would result in a total not-to-exceed contract cost of $91,600. Due to these unforeseen emergency repairs, staff requests an additional appropriation of $19,000 from the General Fund to complete the necessary emergency improvements.

APPROVED ELECTRONICALLY BY:

Michael B. O'Kelly, City Manager
Stephanie Vasquez, City Attorney
Manuel Carrillo, Director of Finance and Administrative Services

RESOLUTION NO. 2025-33

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BELL

GARDENS, CALIFORNIA, APPROVING A FIRST AMENDMENT TO

THE CONTRACT SERVICES AGREEMENT WITH KIMBLE &

COMPANY FIRE PROTECTION SYSTEMS FOR EMERGENCY FIRE

PROTECTION SERVICES AT CITY HALL AND THE POLICE

DEPARTMENT FACILITY
WHEREAS, on January 13, 2025, the City of Bell Gardens (“City”) and Kimble & Company Fire Protection Systems (“Contractor”) executed and entered into a Contract Services Agreement for Emergency Fire Protection Services at City Hall and the Police Department Facility (hereinafter “Master Agreement”); and WHEREAS, on February 16, 2025, a site inspection revealed further deficiencies in the fire systems which require additional repairs in order to complete the mandatory inspections and meet all requirements set forth by the Los Angeles County Fire Department; and
WHEREAS, the City and Contractor now wish to modify the Contract Services Agreement to increase the not-to-exceed amount to $91,600, to provide additional fire system repairs to complete the necessary upgrades and ensure compliance with local and state regulations; and
WHEREAS, the City now desires to amend the existing Master Agreement to modify the scope of services and increase the compensation amount under the Master Agreement.

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 incorporate them herein.

SECTION 2. Based upon the above recitals, the staff report accompanying this Resolution, and such other oral and written evidence, the City Council hereby approves a First Amendment to the Contract Services Agreement with Contractor 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 to the Contract Services Agreement and take all actions necessary to appropriate, 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.

PASSED, APPROVED, and ADOPTED this 14h day of April, 2025.

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THE CITY OF BELL GARDENS
__________________________
Jorgel Chavez, Mayor
APPROVED AS TO FORM: ATTEST:
_______________________________ _____________________________________ Stephanie Vasquez Daisy Gomez
City Attorney City Clerk

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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:

1 2025

FIRST AMENDMENT TO CONTRACT SERVICES AGREEMENT
(Engagement: Emergency Fire Protection Services at City Hall and Police Department) (Contractor: Kimble & Company Fire Protection Systems)

THIS FIRST AMENDMENT (hereinafter, “First Amendment”) to that certain agreement entitled “2025 Contract Services Agreement ” and dated January 13, 2025 (hereinafter, the “Master Agreement”), is hereby made and entered into this ____ day of ____________, 2025 (hereinafter, “Effective Date”) by and between the CITY OF BELL GARDENS, a municipal corporation (hereinafter, “CITY”) and KIMBLE & COMPANY FIRE PROTECTION SYSTEMS (hereinafter, “CONTRACTOR”). For purposes of this First Amendment, the capitalized term “Parties” shall be a collective reference to both CITY and CONTRACTOR. The capitalized term “Party” may refer to either CITY or CONTRACTOR, interchangeably as appropriate.

RECITALS

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

WHEREAS, on January 13, 2025 , the Parties executed and entered into the Master Agreement for emergency fire protection services at City Hall and Police Department; and

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

WHEREAS, on February 16, 2025, a site inspection revealed further deficiencies in the fire systems which require additional repairs in order to complete the mandatory inspections and meet all requirements set forth by the Los Angeles County Fire Department; and

WHEREAS, on March 15, 2025, Contractor provided City with a quote entitled, “City Hall and Police Department 5 -Year Fire Sprinkler Repairs ” (hereinafter, “ March Quote”), which is attached and incorporated hereto as Exhibit “B” for the cost of the necessary repairs; and

WHEREAS, the Parties now wish to extend the Completion Date of the Master Agreement and provide additional compensation to allow the Contractor to complete the necessary repairs.

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 1(A) (SCOPE OF WORK) of the Master Agreement is hereby amended to include those services provided in Contractor’s quote, entitled, “City Hall and

2 Police Department 5-Year Fire Sprinkler Repairs” (hereinafter, “March Quote”), which is attached and incorporated hereto as Exhibit “B”.

SECTION 2. Section 3(A) (PROSECUTION OF WORK) of the Master Agreement is hereby amended to extend the Completion Date of the Master Agreement to June 30, 2025.

SECTION 3. Section 4(B) (COMPENSATION) of the Master Agreement is hereby amended to increase the total not -to-exceed amount of SEVENTY-TWO THOUSAND SIX HUNDRED DOLLARS ($72,600) by NINETEEN THOUSAND DOLLARS ($19,000) for a new not -to-exceed amount of NINETY-ONE THOUSAND SIX HUNDRED DOLLARS ($91,600) for the additional work required.

SECTION 4. Except as otherwise set forth in this First Amendment, the Master Agreement, shall remain binding, controlling, and in full force and effect. This First Amendment, together with the Master Agreement, shall constitute the entire, complete, final, and exclusive expression of the Parties with respect to the matters addressed in both documents.

SECTION 5. 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 to the extent that such provisions conflict with the Master Agreement, and no further.

(SIGNATURES ON FOLLOWING PAGE)

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

Date:

CONTRACTOR:

KIMBLE & COMPANY FIRE

PROTECTION SYSTEMS

By:_____________________________

Name:_________________________

Title: ___________________________

Date:

4 EXHIBIT “A”

MASTER AGREEMENT

5 EXHIBIT “B”
MARCH 2025 QUOTE

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March 15, 2025
City of Bell Gardens
8327 Garfield Ave.

Bell Gardens, CA 90201

Attn: Rick Moreno
Email: [email protected]

Reference: City Hall and Police Department 5-Year Fire Sprinkler Repairs Dear Rick:

Per your request we are submitting our quotation in the amount of Eight Thousand Seven Hundred Dollars ($8,700.00) for the City Hall and Ten Thousand Three Hundred Dollars ($10,300.00) for the Police Station repairs need to certify the fire sprinkler systems.

Scope of Work:

Provide labor and materials to make repairs found during our inspection conducted on 2/16/2025. All work to be in accordance with NFPA #13, (Current Editions) requirements and local authorities having legal control as follows:

Los Angeles County Fire Department.

Qualifications:

Once repairs have been made reports will be filed with the AJH and new certification stickers will be applied to the riser per the state requirements. All drains will need to be cleaned out by others prior to our arrival to make repairs. All certs are pending the fire alarm panel project being completed per the certification requirements.

Including:
• Preform 5-year fire sprinkler repairs and provide signed off reports and stickers as required by the state of California and the local AHJ.
• Make repairs as stated in reports.
• Materials as need to make repairs per reports.
• Prevailing wages per current DIR.
• Normal working hours.

Excluding:
• Fire service water supply connection and any associated fees. • Monthly monitoring. If required a separate pricing will be provided. • Delays in draining.
• Plans, plan check fees, permit fees.
• Overtime or Premium Time.
• Electrical wiring replacement or upgrade of any kind. • Fire extinguishers.

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Excluding:

• Central station (supervisory) alarm service.
• Structural calculations of any nature.
• Fire watch.
• Underground or Fire Hydrants of any kind.
• Liquidated damages.

This proposal is valid for 60 days from the date of this proposal. If you have any questions or need clarification, please do not hesitate to call cell 562-784-2301.

Sincerely,

KIMBLE AND COMPANY FIRE PROTECTION

Todd D. Smith
Service Director

______________________________________________________
If you accept the costs above, please sign and date here:

CITY OF BELL GARDENS

OFFICE OF THE CITY MANAGER

EXECUTIVE SUMMARY
TO:Honorable Mayor and City Council Members
FROM: Michael B. O’Kelly, City Manager
BY:Bernardo Iniguez, Director of Public Works/Facilities SUBJECT:Consideration of a Resolution Approving a First Amendment to Contract Services Agreement with Javier Solorzano for Bell Gardens Community Murals
MEETING DATE:April 14, 2025
RECOMMENDATION:

It is staff’s recommendation that the City Council adopt the City Council adopt the attached Resolution authorizing the City Manager to execute a First Amendment to the Contract Services Agreement with Javier Solorzano.

BACKGROUND/DISCUSSION:

In December 2024, Public Works staff solicited price proposals for the painting of murals on four utility boxes. A total of three price proposals were received and the proposal from Javier Solorzano was selected based on his overall qualifications, past experience, performance, and cost. On January 8, 2025, the City entered into a Contract Services Agreement with Javier Solorzano for a total amount not to exceed $10,000, which the City Manager executed based on his signature authority.

Javier Solorzano has completed the painting of murals on four utility boxes, which are located at the southeast corner of Florence Avenue and Eastern Avenue (Cactus concept), the southwest corner of Gage Avenue and Garfield Avenue (Hawk concept), the southeast corner of Florence Place and Garfield Avenue (Skater concept), and the northwest corner of Scout Avenue and Florence Avenue (Duck concept).

Unfortunately, the utility box with the cactus mural, located at the southeast corner of Florence Avenue and Eastern Avenue, was damaged when Public Works staff applied a defective graffiti coating layer, which caused the paint to have a mottled appearance. The only solution is to remove the existing paint and repaint the mural on the utility box since it cannot be repaired. Public Works staff requested Javier Solorzano provide a proposal for additional services to repaint the utility box.

CONCLUSION:

Approving a First Amendment would enable Javier Solorzano to provide the additional services necessary to repaint the utility box at the southeast corner of Florence Avenue and Eastern Avenue.

FISCAL IMPACT:

The $3,000 for additional services would result in a total contract cost of $13,000. General funds are available in the FY 24/25 budget.

APPROVED ELECTRONICALLY BY:

Michael B. O'Kelly, City Manager
Stephanie Vasquez, City Attorney
Manuel Carrillo, Director of Finance and Administrative Services

RESOLUTION NO. 2025-36

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BELL

GARDENS, CALIFORNIA, APPROVING A FIRST AMENDMENT TO

THE CONTRACT SERVICES AGREEMENT BY AND BETWEEN THE

CITY OF BELL GARDENS AND JAVIER SOLORZANO FOR BELL

GARDENS COMMUNITY MURALS
WHEREAS, on January 8, 2025, the City of Bell Gardens (“City”) and Javier Solorzano executed and entered into the Contract Services Agreement (“Master Agreement”) for Javier Solorzano to paint community murals on four utility boxes within the City; and
WHEREAS, the utility box located at the southeast corner of Florence Avenue and Eastern Avenue was damaged and needs to be repainted; and WHEREAS, the City and Javier Solorzano now wish to modify the scope of work of the Master Agreement to provide additional services necessary to repaint the utility box located at the southeast corner of Florence Avenue and Eastern Avenue; and WHEREAS, the City now desires enter into a First Amendment to amend the Master Agreement with Javier Solorzano to extend the Term of the Agreement, modify the Scope of Work, and increase the compensation.

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

SECTION 1. The City Council hereby finds and determines that the foregoing recitals are true and correct, constitute a material part of this Resolution, and therefore incorporate them herein in their entirety as part of the findings.

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 Master Agreement with Javier Solorzano 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 with Javier Solorzano on the City’s behalf, along with any other ancillary documents relating thereto, including any other documents consistent with and necessary 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 approve
PASSED, APPROVED, and ADOPTED this 14th day of April, 2025.

Resolution No. 2025-36
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THE CITY OF BELL GARDENS
__________________________
Jorgel Chavez, Mayor
APPROVED AS TO FORM: ATTEST:
_______________________ __________________________ Stephanie Vasquez Daisy Gomez
City Attorney City Clerk

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:

1 2025

FIRST AMENDMENT TO CONTRACT SERVICES AGREEMENT
(Contractor: Javier Solorzano)
(Nature of Engagement: Bell Gardens Community Murals)

THIS FIRST AMENDMENT (hereinafter, “First Amendment”) to that certain agreement entitled “Contract Services Agreement” and dated January 8, 2025 (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 JAVIER SOLORZANO (hereinafter, “ Contractor”).

For purposes of this First Amendment, the capitalized term “Parties” shall be a collective reference to both City and Contractor. The capitalized term “Party” may refer to either City or Contractor interchangeably, as appropriate.

RECITALS

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

WHEREAS, on January 8, 202 5, the Parties executed and entered into the Contract Services Agreement for a series of artwork to be designed and completed on utility boxes by the Contractor in the City; and

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

WHEREAS following the completion of the mural work, the utility box located on the corner of Florence Avenue and Eastern Avenue in the City was damaged, and it was determined that a repaint was required; and

WHEREAS, on April 3, 2025, Contractor provided City with a quote entitled, “Bell Gardens Community Murals Florence/Eastern Utility Box Repaint Price Quote” (hereinafter, “April Quote”), which is attached and incorporated hereto as Exhibit “B” for the cost of repainting the mural on the utility box located on the corner of Florence Avenue and Eastern Avenue; and

WHEREAS, additional time is necessary to perform the repaint of the damaged utility box; and

WHEREAS, the Parties wish to extend the Completion Date of the Master Agreement and provide additional compensation to allow the Contractor to complete the necessary repaint.

2 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 1(A) (SCOPE OF WORK) of the Master Agreement is hereby amended to include those services provided in Contractor’s quote, entitled, “Bell Gardens Community Murals Florence/Eastern Utility Box Repaint Price Quote” (hereinafter, “April Quote”), which is attached and incorporated hereto as Exhibit “B”.

SECTION 2. Section 3(A) (PROSECUTION OF WORK) of the Master Agreement is hereby amended to extend the Completion Date of the Master Agreement t o June 1, 2025.

SECTION 3. Section 4(B) (COMPENSATION) of the Master Agreement is hereby amended to increase the total not -to-exceed amount of TEN THOUSAND DOLLARS ($10,000) by THREE THOUSAND DOLLARS ($3,000) for a new not-to-exceed amount of THIRTEEN THOUSAND DOLLARS ($13,000) for the additional work required.

SECTION 4. Except as otherwise set forth in this First Amendment, the Master Agreement, shall remain binding, controlling , and in full force and effect . T his First Amendment, together with the Master Agreement, shall constitute the entire, complete, final, and exclusive expression of the Parties with respect to the matte rs addressed in both documents.

SECTION 5. 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 to the extent that such provisions conflict with the Master Agreement, and no further.

(SIGNATURES ON FOLLOWING PAGE)

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

Date:

CONTRACTOR:

JAVIER SOLORZANO

By:_____________________________

Name:_________________________

Title: ___________________________

Date:

4 EXHIBIT “A”

MASTER AGREEMENT

5 EXHIBIT “B”
APRIL 2025 QUOTE

CITY OF BELL GARDENS

OFFICE OF THE CITY MANAGER

EXECUTIVE SUMMARY
TO:Honorable Mayor and City Council Members
FROM: Michael B. O’Kelly, City Manager
BY:Bernardo Iniguez, Director of Public Works/Facilities Douglass Benash, P.E., City Engineer
SUBJECT:Acceptance of the Veterans Park City Yard Improvements Project (CIP No. 3880) as Complete
MEETING DATE:April 14, 2025
RECOMMENDATION: It is staff’s recommendation that the City Council:

1. Accept the Veterans Park City Yard Improvements Project; CIP No. 3880 as complete, and

2. Authorize staff to file the Notice of Completion.

BACKGROUND/DISCUSSION:

On September 13, 2023, the City Council approved the plans and specifications and authorized staff to solicit bids for the Veterans Park City Yard Improvements Project; CIP No. 3880 (“the Project”), and authorized staff to solicit bids for the Project. The scope of work consisted of the construction of a new trash container ramp and pit to allow direct loading into the trash bins, modifications and improvements to the material storage bins including a structure to cover the bins, construction of an underground stormwater storage and treatment device, pavement improvements and general maintenance to the yard, as required by the Plans, Specifications, and Contract documents. The specifications required the contractor to complete all work within fifty-five (55) working days.

On October 9, 2023, the City received a total of four (4) bid proposals for the project. Staff conducted an analysis of the apparent lowest bidder, Deark E & C, Inc (“Deark”). This analysis included a review of their bid schedule, bid bond, license, references, and all required documentation. Deark’s license was found to be current and active, and reference checks revealed that the contractor’s previous projects were completed satisfactorily, with no contractor-initiated change orders. Deark’s DIR Registration and

AM Best Rating Check were also reviewed and deemed satisfactory. It was determined that Deark was the lowest responsive and responsible bidder.

On November 13, 2023, the City awarded the construction contract to Deark in the amount of $690,430. Construction began on January 29, 2024, and on February 20, 2025, Deark completed the construction of the Project. The Project inspector conducted the final inspection, reviewed the Project documents, and determined that the Project was completed satisfactorily and in conformance with the Project’s plans and specifications.

The final working days were eighty-three (83) due to Contract Change Orders and additive bid completion. The final total construction cost was $726,301.25.

CONCLUSION:

The City Council’s acceptance of the Project as complete is required to allow the City Clerk to file the Notice of Completion with the LA County Registrar-Recorder.

FISCAL IMPACT:

The total Project budget included $877,551 from the Safe, Clean Water (Measure W) Municipal Program. The Project was completed within budget. The remaining unexpended balance will be returned to the Measure W Fund for future stormwater- related programs and projects.

The Veterans Park City Yard Improvements project expenditures were as follows:

Design $ 21,600.00
Topographic Survey & Geotechnical Infiltration Report $ 11,700.00 Construction Management & Inspection $ 55,230.00 Project Management $ 20,580.00
Funding Administration $ 7,718.00
Construction Costs $ 590,430.00
Additive Bid #1 $ 100,000.00
Change Order #1 -3 $ 19,322.20
Quantity Changes $ 16,549.05
Publication & Misc. Costs $ 1,225.57
FINAL PROJECT COST $ 844,354.82
APPROVED ELECTRONICALLY BY:

Michael B. O'Kelly, City Manager
Stephanie Vasquez, City Attorney
Manuel Carrillo, Director of Finance and Administrative Services

RECORDING REQUESTED BY

CITY OF BELL GARDENS

AND WHEN RECORDED MAIL TO

NAME CITY OF BELL GARDENS

CITY CLERK
STREET 7100 S. GARFIELD AVE

ADDRESS
CITY BELL GARDENS, CA 90201
STATE
ZIP

SPACE ABOVE LINE FOR RECORDER’S USE

NOTICE OF COMPLETION

Notice is hereby given that:

1. The undersigned is owner or corporate officer of the owner of the interest or estate stated below in the property hereinafter described:

2. The full name of the owner is City of Bell Gardens

3. The full address of the owner is 7100 S. Garfield Avenue, Bell Gardens, CA 90201

4. The nature of the interest or estate of the owner is: in fee.

(if other than Fee, strike “In fee” and insert, for example, “purchaser under contract of purchase”, or “lessee”)

5. The full names and full addresses of all persons, if any, who hold title with the undersigned as joint tenants or as tenants in common are:

NAMES ADDRESSES

6. A work of improvement on the property hereinafter described was substantially completed on 2/20/2025. The work done was:

Veterans Park City Yard Improvements Project (CIP No 3880).

7. The names of the contractor, if any, for such work of improvement was Deark E & C, Inc. 11/13/2023
(If no contractor for work of improvement as a whole, insert “None”) (Date of Contract)

8. The property on which said work of improvement was completed is in the City of Bell Gardens County of Los Angeles, State of CA, and is described as follows: Bell Gardens Veterans Park

9. The street address of said property is 6662 Loveland Street, Bell Gardens, CA 90201 (If no street address has been officially assigned, insert “none”.)

Dated Michael B. O’Kelly, City Manager (Signature of Owner or corporate officer of Owner named in paragraph 2, or his agent)

VERIFICATION
I, the undersigned, say: I am the City Clerk of the City of Bell Gardens, the declarant of the foregoing Notice of Completion:

I have read said Notice of Completion and know the contents thereof; the same is true to my own knowledge. I declare under penalty of perjury that the foregoing is true and correct.

Executed on _____________ at Bell Gardens, CA

Daisy Gomez, City Clerk
(Personal signature of the individual who is swearing that the contents of the Notice of Completion are true)

CITY OF BELL GARDENS

OFFICE OF THE CITY MANAGER

EXECUTIVE SUMMARY
TO:Honorable Mayor and City Council Members
FROM:Michael O’Kelly, City Manager
BY: Daisy Gomez, City Clerk
SUBJECT:Local Commissions Appointment List
MEETING DATE:April 14, 2025
RECOMMENDATION:

It is staff's recommendation that the City Council review the Commissions Appointments List and by motion, remove commissioners and/or make appointments to the posted vacancies.

BACKGROUND / DISCUSSION:

The Local Appointments List includes all Bell Gardens Commissions and Commissioners. The City Council adopted Ordinance No. 825 on July 13, 2009 establishing minimum requirements for service on commissions. All Commissioners must reside within the City of Bell Gardens and may only serve on one Commission at a time. Once appointed, each Commissioner must adhere to the requirements of the City's Conflict of Interest Code and state-mandated AB 1234 ethics training and AB 1661 harassment training.

Ordinance No. 825 allows each Council Member to remove or appoint one candidate per Commission, subject to the approval of the Council majority. Appointed Commission Members serve terms that coincide with the term of the Council Member who made the appointment.

CONCLUSION:

After an appointment is made, Commission members will receive their Oath of Office before beginning service with their respective Commission at the next regularly scheduled Commission meeting. The City Clerk's Office will arrange for the proper filing of Conflict of Interest Code forms and schedule trainings for AB 1234 and AB 1661.

FISCAL IMPACT:

No fiscal impact.

ELECTRONICALLY APPROVED BY:

Michael B. O'Kelly, City Manager
Stephanie Vasquez, City Attorney
Manual Carrillo, Director of Finance and Administrative Services

Updated: 3/11/2025

CITY OF BELL GARDENS

NOTICE OF COMMISSION VACANCIES

AND ACTIVE COMMISSIONERS

EDUCATION COMMISSION

PLANNING COMMISSION

RECREATION, CULTURAL AND YOUTH COMMISSION

SENIOR CITIZEN COMMISSION

TRAFFIC AND SAFETY COMMISSION
The City Council is seeking applications for the following vacancies:

Meeting Date: Second Thursday of every month, City Hall Council Chamber, 5:00 p.m.

Staff Liaison - Ana Avalos, Recreation and Community Services Supervisor, (562) 806-7650 Meeting Date: Third Wednesday of every month, City Hall Council Chamber, 5:15 p.m.

Staff Liaison - Steven Jones, City Planner, (562) 806-7722 Ernesto Ramirez Barcena 04/08/2024
Meeting Date: Third Thursday of every month, City Hall Council Chamber, 6:00 p.m.

Staff Liaison – Armando Andrade, Recreation and Community Services Supervisor, (562) 806-7650 Meeting Date – Second Wednesday of every month, City Hall Council Chamber, 6:00 p.m.

Staff Liaison – Diana Ortiz, Recreation and Community Services Supervisor (562) 806-7650 Meeting Date – First Tuesday of every month, City Hall Council Chamber, 5:30 p.m.

Staff Liaison – Bernardo Iniguez , Director of Public Works/Facilities (562) 806-7770 Applicants must be residents of the City. No person previously convicted of a felony in this state or elsewhere shall be permitted to serve on any City Commission. Before assuming the duties of a commissioner, each person appointed shall take and file with the City Clerk the same constitutional oath of office required of members of the city council. Any member of a commission shall be deemed to have resigned from the commission, and his or her office as a member of the commission shall automatically vacated, in the event, the member ceases to be a resident of the City or is convicted of a felony. (Bell Gardens Municipal Code Sections 2.68.030, 2.28.030, 2.22.030, 2.35.030) Applications may be obtained from the City Clerk’s Office: 7100 Garfield Ave, Bell Gardens, CA 90201. Applications will be accepted in the City Clerk’s Office on a continuous basis until an appointment is made. Please call the City Clerk’s Office at (562) 806-7705 or email [email protected] for more information.

Daisy Gomez, City Clerk
VACANT Barcena 2/3/2025
VACANT Chavez 12/9/2024
Crystal Jimenez De La Rosa 1/13/2025
Juan Manuel Rojas Guillen 1/27/2025
Miguel Maravilla Sanchez 1/13/2025
Carlos Jose Barrera Chavez 1/13/2024
Kenneth Preciado De La Rosa 1/13/2025
Yorgelys Monroy Guillen 2/11/2025
Oscar Boado Sanchez 9/11/2023
VACANT Barcena 1/6/2025
VACANT Chavez 12/9/2024
Ainslee Preciado De La Rosa 2/24/2025
VACANT Guillen
Carmen Vargas Sanchez 7/22/2024
Ana Maria Sanchez Flores Barcena 1/9/2023
VACANT Chavez 12/09/2024
VACANT De La Rosa
VACANT Guillen
Stephanie Perez Sanchez 1/23/2023
David Heredia Barcena 1/9/2023
VACANT Chavez 12/09/2024
VACANT De La Rosa
Samuel Perez Guillen 2/24/2025
Hugo Alvarado Sanchez 1/9/2023

NAME APPOINTED BY VACANCY
POSTED

APPOINTMENT
DATE
03/11/2025

CITY OF BELL GARDENS

OFFICE OF THE CITY MANAGER

EXECUTIVE SUMMARY
TO:Honorable Mayor and City Council Members
FROM: Michael B. O’Kelly, City Manager
BY:Manuel Carrillo, Director of Finance and Administrative Services
Jules Tak, Accounting Manager
SUBJECT: ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR FISCAL YEAR 2023-24
MEETING DATE:April 14, 2024
RECOMMENDATION:

It is staff’s recommendation that the following reports for the year ended June 30, 2024, be reviewed, discussed and filed by the City Council.
•Annual Comprehensive Financial Report (ACFR);
•Single Audit Report of Schedule of Expenditures of Federal Awards; •Report on Communication with Those Charged with Governance; and •Independent Accountant’s Report on Agreed-Upon Procedures Applied to Appropriations Limit Worksheet.

BACKGROUND/DISCUSSION:

The City is required to conduct an annual independent audit of its financial statements.

The City contracted with Gruber and Lopez, Inc., Certified Public Accountants to conduct the audit. The Auditors performed procedures to obtain audit evidence about the amounts and disclosures in the financial statements in order to provide an opinion of the financial statements and to report on compliance, internal controls and suggestions for improvements.

The auditors have issued an unmodified ("clean") audit opinion meaning that the financial statements (Exhibit 1) present fairly in all material respects, the financial position of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information of the City of Bell Gardens as of June 30, 2024 and the changes in financial position for the 2023-24 fiscal year in accordance with accounting principles generally accepted in the United States. The ACFR presents the City's audited financial information and financial disclosures. The ACFR has been

submitted to the Government Finance Officers Association to be considered for the Certificate in Achievement for Excellence in Financial Reporting.

The Single Audit Report on Federal Awards (Exhibit 2) received an unmodified opinion from the Auditors. The Auditors opined that the City complied in all material respects with the compliance requirements described in the OMB Compliance Supplement for each major federal program. There were six federal grant programs for fiscal year June 30, 2024; U.S. Department of Housing and Urban Development (CDBG Grants) $540,061; U.S. Department of Justice (Bulletproof Vest Partnership Program and Community Policing Grants & Equitable sharing Program - Asset Forfeiture) $43,270; U.S Department of Transportation (State & Community Highway Safety Cluster) $70,933; U.S. Department of Treasury (COVID-19 Relief Fund) $13,829; U.S.

Department of Homeland Security (Emergency Food and Shelter Program) $165,757.

The CDBG grant was the major federal program that was audited.

The City did conduct a Single Audit this year due to meeting the annual minimum dollar threshold of $750,000 in federal expenditures (Exhibit 2). The Single Audit Act of 1984 and Single Audit Act Amendments of 1996 establish uniform audit requirements for local governments expending federal awards greater than $750,000 a year. The audit is on an "entity-wide" basis and imposes additional requirements in relation to testing of, and reporting on, internal control and compliance with laws and regulations related to grants and contracts applicable to the City's federally funded programs.

The Report on Communication with those Charged with Governance (Exhibit 3) reports on significant audit matters. The report notes that there were no difficulties encountered during the audit, no significant adjustments as a results of audit procedures, and no disagreements with management.

The Independent Accountants' Report on Agreed-Upon Procedures Applied to Appropriations Limit Worksheets (Exhibit 4) reports the results of specific procedures on the City's calculation of the appropriation limit in accordance with guidelines published by the League of California Cities. No exceptions were noted.

CONCLUSION:

The auditor reports for the audit preformed for the fiscal year of June 30, 2024, have been presented to the City Council with a recommendation to review, discuss, and file.

FISCAL IMPACT:

No fiscal Impact.

APPROVED ELECTRONICALLY BY:

Michael B. O'Kelly, City Manager
Stephanie Vasquez, City Attorney
Manuel Carrillo, Director of Finance and Administrative Services

CITY OF BELL GARDENS, CALIFORNIA ANNUAL COMPREHENSIVE FINANCIAL REPORT Year Ended June 30, 2024 Prepared by: Finance and Administrative Services Department

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CITY OF BELL GARDENS Annual Comprehensive Financial Report Year Ended June 30, 2024 TABLE OF CONTENTS Page INTRODUCTORY SECTION: Letter of Transmittal i City Officials v Organization Chart vi GFOA Certificate of Achievement for Excellence in Financial Reporting vii FINANCIAL SECTION: Independent Auditors’ Report 1 Managements’ Discussion and Analysis 4 Basic Financial Statements Government-wide Financial Statements: Statement of Net Position 13 Statement of Activities 14 Fund Financial Statements: Balance Sheet – Governmental Funds: 16 Reconciliation of the Balance Sheet of Governmental Funds to Statement of Net Position 17 Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds 18 Reconciliation of Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to Statement of Activities 19 Statement of Fund Net Position – Proprietary Funds 20 Statement of Revenues, Expenses and Changes in Fund Net Position – Proprietary Funds 21 Statement of Cash Flows – Proprietary Funds 22 Statement of Fiduciary Net Position – Private-Purpose Trust Funds 23 Statement of Changes in Fiduciary Net Position – Private-Purpose Trust Funds 24 Notes to the Financial Statements 25

CITY OF BELL GARDENS Annual Comprehensive Financial Report Year Ended June 30, 2024 TABLE OF CONTENTS, (CONTINUED) Page FINANCIAL SECTION, (CONTINUED): Required Supplementary Information Budgetary Comparison Schedule – General Fund 72 Budgetary Comparison Schedule – Low and Moderate Housing Special Revenue Fund 73 Notes to Required Supplementary Information 74 Schedule of Proportionate Share of the Net Pension Liability and Related Ratios - Miscellaneous 75 Schedule of Plan Contributions – Defined Benefit Pension Plan - Miscellaneous 76 Schedule of Proportionate Share of the Net Pension Liability and Related Ratios - Safety 77 Schedule of Plan Contributions – Defined Benefit Pension Plan - Safety 78 Schedule of Changes in the Net OPEB Liability and Related Ratios 79 Schedule of Plan Contributions – OPEB Plan 81 Supplementary Information Combining Balance Sheet – Nonmajor Governmental Funds 86 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Governmental Funds 90 Budgetary Comparison Schedules – Special Revenue Funds: Public Safety Augmentation (PSAF) 94 COPS State (SLESF) 95 State Gas Tax 96 Asset Forfeiture 97 Waste Management 98 Community Development Block Grant 99 Proposition A 100 Proposition C 101 Air Quality Improvement 102 Recycling Grant 103 Post-Employment Benefits 104 Measure R 105 ABC Grants 106 COPS Grant 107 Anson Ford Park 108

CITY OF BELL GARDENS Annual Comprehensive Financial Report Year Ended June 30, 2024 TABLE OF CONTENTS, (CONTINUED) Page Supplementary Information, (Continued) Measure M 109 CalHome Grant 110 Office of Traffic Safety Grant 111 Measure W 112 Budgetary Comparison Schedules – Capital Projects Funds: Capital Improvement Projects 113 STATISTICAL SECTION: Net Position by Component 115 Changes in Net Position 116 Program Revenues by Function/Program 118 Fund Balances – Governmental Funds 119 Changes in Fund Balances – Governmental Funds 120 Tax Revenues by Source – Governmental Funds 122 Assessed Value and Estimated Actual Value of Taxable Property 123 Direct and Overlapping Property Tax Rates 124 Principal Property Tax Payers 125 Property Tax Levies and Collections 126 Taxable Sales by Category 127 Principal Sales Tax Remitters 128 Ratios of Outstanding Debt by Type 129 Ratios of General Bonded Debt Outstanding 130 Direct and Overlapping Governmental Activities Debt 131 Legal Debt Margin Information 132 Pledged Revenue Coverage 133 Demographic and Economic Statistics 134 Full-time Equivalent City Government Employees by Function/Program 135 Principal Employers 136 Operating Indicators by Function/Program 137 Capital Asset Statistics by Function/Program 138

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ii
The City is divided into seven departments of City Administration, City Clerk, Police, Public Works, Finance and Administrative Services, Community Development, and Recreation and Community Services. These departments provide a full range of services, including police protection, the construction and maintenance of City streets and sidewalks, recreational activities, cultural events, transportation, and water service to a portion of the City residents. Fire, paramedic and library services are provided by the County of Los Angeles. Animal control services are provided by the Southeast Area Animal Control Authority (SEAACA). The annual budget serves as the foundation for the City’s financial planning and control. The appropriated budget is prepared by fund, department (e.g., police) and line item. The City Council and City Manager charge department directors with the responsibility of controlling department budgets. Budgetary control is exercised through an on-line computerized system, which interfaces with the City’s general ledger. The system maintains an on-going record of budget balances throughout the year based on actual expenditures and unfilled purchase orders. The City Council has the legal authority to amend the budget at any time during the year. The City Manager has the authority to re-appropriate expenditures within a fund. Budget-to-actual comparisons are provided in this report for each governmental fund with an appropriated annual budget. For the General Fund and major special revenue funds, these comparisons are presented as part of the required supplementary information in the accompanying financial statements. For other governmental funds with appropriated annual budgets, this information is included in the supplementary section of the financial statements. It is important to note that the Academic Pursuit Fund, JAG Grant Fund, and SB 1 Road Maintenance Fund do not have legally adopted annual budgets. These funds operate based on grant awards, specific funding allocations, or other financial guidelines rather than through a formal budget adoption process. This disclosure is included to ensure consistency and transparency in the Annual Comprehensive Financial Report (ACFR), in accordance with GFOA recommendations. Factors Affecting Financial Condition The City appears to have successfully emerged from the COVID-19 pandemic, nearly all of the General Fund’s revenue sources have rebounded or surpassed its pre-pandemic levels. The top six major revenue sources of the City include Bicycle Casino Revenue, In-Lieu Motor Vehicle, Property Leases, Sales & Use Tax, Measure A, add on Transaction and Use Tax(.75%). Casino revenue has been steady as Bicycle Casino has implemented facility improvements with the purpose of expanding gaming capacity. In Fiscal Year 2023-24, recreation programs were fully opened with high levels of participation. The City received revenue from the Measure A add-on Transaction and Use Tax of $3,582,000 Prior to the pandemic, the Bicycle Casino (the Bike) accounted for over 40% of the City’s General Fund revenue. In December 2015, the Bike enhanced its revenue-generating capacity with the completion of a 100-room, four-star luxury hotel. By fiscal year 2018-19, the casino's revenue had reached a peak of $14,329,829. However, in fiscal year 2020-21, the COVID-19 pandemic resulted in a significant revenue decline, with earnings totaling $6,728,349—a decrease of $7.6 million compared to the pre-pandemic fiscal year of 2018-19. In fiscal year 2022-23, the Bike

ii
The City is divided into seven departments of City Administration, City Clerk, Police, Public Works, Finance and Administrative Services, Community Development, and Recreation and Community Services. These departments provide a full range of services, including police protection, the construction and maintenance of City streets and sidewalks, recreational activities, cultural events, transportation, and water service to a portion of the City residents. Fire, paramedic and library services are provided by the County of Los Angeles. Animal control services are provided by the Southeast Area Animal Control Authority (SEAACA). The annual budget serves as the foundation for the City’s financial planning and control. The appropriated budget is prepared by fund, department (e.g., police) and line item. The City Council and City Manager charge department directors with the responsibility of controlling department budgets. Budgetary control is exercised through an on-line computerized system, which interfaces with the City’s general ledger. The system maintains an on-going record of budget balances throughout the year based on actual expenditures and unfilled purchase orders. The City Council has the legal authority to amend the budget at any time during the year. The City Manager has the authority to re-appropriate expenditures within a fund. Budget-to-actual comparisons are provided in this report for each governmental fund with an appropriated annual budget. For the General Fund and major special revenue funds, these comparisons are presented as part of the required supplementary information in the accompanying financial statements. For other governmental funds with appropriated annual budgets, this information is included in the supplementary section of the financial statements. It is important to note that the Academic Pursuit Fund, JAG Grant Fund, and SB 1 Road Maintenance Fund do not have legally adopted annual budgets. These funds operate based on grant awards, specific funding allocations, or other financial guidelines rather than through a formal budget adoption process. This disclosure is included to ensure consistency and transparency in the Annual Comprehensive Financial Report (ACFR), in accordance with GFOA recommendations. Factors Affecting Financial Condition The City appears to have successfully emerged from the COVID-19 pandemic, nearly all of the General Fund’s revenue sources have rebounded or surpassed its pre-pandemic levels. The top six major revenue sources of the City include Bicycle Casino Revenue, In-Lieu Motor Vehicle, Property Leases, Sales & Use Tax, Measure A, add on Transaction and Use Tax(.75%). Casino revenue has been steady as Bicycle Casino has implemented facility improvements with the purpose of expanding gaming capacity. In Fiscal Year 2023-24, recreation programs were fully opened with high levels of participation. The City received revenue from the Measure A add-on Transaction and Use Tax of $3,582,000 Prior to the pandemic, the Bicycle Casino (the Bike) accounted for over 40% of the City’s General Fund revenue. In December 2015, the Bike enhanced its revenue-generating capacity with the completion of a 100-room, four-star luxury hotel. By fiscal year 2018-19, the casino's revenue had reached a peak of $14,329,829. However, in fiscal year 2020-21, the COVID-19 pandemic resulted in a significant revenue decline, with earnings totaling $6,728,349—a decrease of $7.6 million compared to the pre-pandemic fiscal year of 2018-19. In fiscal year 2022-23, the Bike

iv
As a result, the independent accounting firm of Gruber and Lopez, Inc was selected to perform the audit for the fiscal year ended June 30, 2024. The auditors' unqualified (clean) opinion on the basic financial statements and accompanying footnotes is included in the Financial Section of this report (ACFR). Long-Term Financial Planning In 2008, the City implemented a reserve policy in which they initially committed $1,000,000 for contingencies and added $200,000 per year until the amount committed for contingencies reached 10% of the General Fund’s expenditures. As of June 30, 2024, the amount committed for contingencies is $4,104,000 with $200,000 budgeted for the fund in fiscal year 2023-24. Two of the biggest challenges to the City’s long-term financial sustainability is the unfunded pension obligations for City employees under the California Public Employees’ Retirement System (CALPERS) and the growing City’s retiree healthcare liability. The City has proactively attempted to mitigate the impacts of significant increases in future pension costs, the City Council authorized staff to explore and potentially issue the Pension Obligation Bonds with the guidance of the municipal advisor. The City has successfully obtained judicial validation with the County of Los Angeles, as a tool available to the City in its future attempts to mitigate these costs. As a means to reduce the burden on city finances and to provide additional services to the community, the City will continue to search and apply for grant opportunities and monitor local and national economic trends. Awards The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Bell Gardens, California, for its annual comprehensive financial report financial report for the fiscal year ended June 30, 2024. To qualify for the Certificate of Achievement, the governmental entity must publish an easily readable and efficiently organized ACFR, the contents of which conform to program standards. Such report must satisfy accounting principles generally accepted in the United State of America, as well as all applicable legal requirements. The Certificate of Achievement is valid for only one year. The City believes this ACFR continues to conform to the Certificate of Achievement Program requirements and will be submitting it to GFOA for consideration of the annual award. Acknowledgements The dedication of the Finance Department staff made it possible to prepare this report in a timely manner. We wish to express our appreciation to all members of the department who assisted and contributed to the preparation of this report. We would like to express a sincere thank you to Jules Tak, Accounting Manager and her staff, for their dedicated efforts. The city also recognizes the contributions and positive working relationship with the Grubber and Lopez, Inc. Finally, we wish to express our sincere appreciation to the Mayor and City Council for their continued leadership, support, and professionalism in the management of the City’s finances. Respectfully submitted, Michael B. O’Kelly Manuel Carrillo City Manager Director of Finance and Administration

v
City Officials City Council Jorgel Chavez Mayor Marco Barcena Mayor Pro Tem Francis De Leon Sanchez Councilmember Gabriela Gomez Councilmember Maria Pulido Councilmember Administration and Department Heads Michael B. O’Kelly City Manager Vacant/Unfunded Assistant City Manager Paul Camacho Chief of Police Manuel Carrillo Director of Finance & Administrative Services Gustavo Romo Director of Community Development Elizabeth Nava Director of Recreation & Community Services Bernardo Iniguez Director of Public Works Daisy Gomez City Clerk Stephanie Vasquez City Attorney Douglas Benash City Engineer City of Bell Gardens

vi
City of Bell Gardens Organization Chart Residents of Bell Gardens Mayor and City Council 5 Elected Officials 1 Full Time City Clerk 5 Full Time City Manager 3 Full Time City Attorney Police 77 Full Time Finance & Admin. Services 10 Full Time Recreation & Community Services 15 Full Time Public Works 30 Full Time Community Development 13 Full Time

Government Finance Officers AssociationCertificate of Achievementfor Excellencein Financial ReportingPresented toCity of Bell GardensCaliforniaFor its Annual ComprehensiveFinancial ReportFor the Fiscal Year EndedJune 30, 2023Executive Director/CEOviiPage 797 of 976 viii
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1 438 Old Newport Blvd – Newport Beach, CA 92663 Phone (949) 346-2900 – www.gruberlopezinc.com To the Honorable Mayor and Members of the City Council City of Bell Gardens, California Independent Auditors’ Report Opinions We have audited the accompanying financial statements of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information of the City of Bell Gardens, California, as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the City of Bell Gardens, California’s basic financial statements as listed in the table of contents. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activity, each major fund, and the aggregate remaining fund information of the City of Bell Gardens, California, as of June 30, 2024, and the respective changes in financial position and where applicable cash flows (thereof) for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City of Bell Gardens, California, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City of Bell Gardens, California’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

City Council City of Bell Gardens, California
2 In performing an audit in accordance with generally accepted auditing standards, we:  Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.  Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City of Bell Gardens, California’s internal control. Accordingly, no such opinion is expressed.  Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.  Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City of Bell Gardens, California’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, the schedules of proportionate share of the net pension liability and the schedules of contributions for the CalPERS miscellaneous and safety pension plans, the schedule of changes in the net other postemployment benefit (OPEB) liability and related ratios, and the budgetary comparison schedules for the General Fund and Major Special Revenue Funds, identified as Required Supplementary Information (RSI) in the accompanying table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the RSI in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the RSI because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Bell Gardens basic financial statements. The introductory section, the combining and individual fund financial statements and schedules, and statistical section, as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

City Council City of Bell Gardens, California
3 Other Information Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 27, 2025, on our consideration of the City of Bell Gardens internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City of Bell Gardens internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City of Bell Gardens internal control over financial reporting and compliance. Gruber and Lopez, Inc. Newport Beach, California March 27, 2025 Gruber and Lopez, Inc.

4 MANAGEMENT’S DISCUSSION AND ANALYSIS

5 CITY OF BELL GARDENS MANAGEMENT’S DISCUSSION AND ANALYSIS As management of the City of Bell Gardens, we offer readers of the City’s financial statements this narrative overview and analysis of the financial activities of the City of Bell Gardens for the fiscal year ended June 30, 2024. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal and the City’s financial statements. This report consists of the following report sections: management’s discussion and analysis (this section), the basic financial statements, required supplemental information, and other supplemental information section that presents combining statements for nonmajor governmental funds. The basic financial statements are presented in two different formats: government-wide financial statements and fund financial statements. The government-wide financial statements include the statement of net position and the statement of activities. These statements provide both long-term and short-term information about the City’s overall financial condition. All amounts, unless otherwise indicated, are expressed in millions of dollars. FINANCIAL HIGHLIGHTS Government-wide:  The assets and deferred outflow of the City exceeded its liabilities and deferred inflows at the close of Fiscal Year 2023-24 resulting in a net position of $79.6 million.  For the fiscal year ended June 30, 2024, net position increased by $6.5million. The total revenues from programs and general revenues were $66 million, and total expenses for all functions and programs were $60 million. Casino revenue remained strong and stable throughout Fiscal Year 2023-24.  Total revenues of $66 million which comprised of $20.9 million in program revenues and $45.1 million in general revenues and transfers. Program revenues are divided into three categories: charges for services, $5.9 million; operating grants and contributions, $7.4 million and capital grants, and contributions, $7.6 million.  GASB Statement No. 87 – Lease became effective in Fiscal Year 2021-2022. The City recorded a lease receivable and deferred inflows of $31.7 million for both line items in Fiscal Year 2022-2023, while in Fiscal Year 2023-2024, these amounts declined to $29.5 million. The City is the lessor to BG Hotel site ground lease, bicycle club parking lease, billboard lease, shopping center market place ground lease and Verizon cell tower lease. OVERVIEW OF THE FINANCIAL STATEMENTS This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements, which are comprised of three components: 1) Government-Wide Financial Statements, 2) Fund Financial Statements, and 3) Notes to the Basic Financial Statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government-Wide Financial Statements The Government-Wide Financial Statements provide a broad overview of the City’s finances, offering a comprehensive view of its financial position, similar to the way private-sector businesses report their finances. These statements include all assets, deferred outflows of resources, liabilities (including long-term debt), and deferred inflows of resources. Inter-fund activities, payables, and receivables are eliminated in accordance with the applicable accounting standards. The Statement of Net Position and Statement of Activities present financial information about the City as a whole and its activities, using the accrual basis of accounting. This means all revenues and expenses are recognized in the period they occur, regardless of when cash is received or paid. The Statement of Net Position shows the City’s total assets, liabilities, and deferred inflows/outflows of resources. The difference between these is referred to as a net position, and its changes over time are an indicator of whether the City’s financial position is improving or declining. For example, an increase in net position could reflect successful efforts to enhance revenue, control costs, or improve asset management.

6 The Statement of Activities reports how the City’s net position changed during the year. The statement reflects all changes as soon as the underlying events occur, regardless of timing of related cash flows, helping to paint a complete picture of the City’s fiscal health. In the Statement of Net Position and the Statement of Activities, we separate the City’s activities as follows: Governmental Activities These activities include the City’s core services, such as general government, public safety, public works, community development, and parks/recreation. Most of these services are funded by taxes, state and federal grants, and other intergovernmental revenues. Significant increases in certain revenue categories, such as property taxes or special grants, are often key factors driving changes in the fund balance for governmental activities. Business-Type Activities These are services provided by the city for which a fee is charged to customers. Examples include the water utility and golf course operations. If these activities see an increase in user fees or cost-saving measures, the result will likely show an increase in net position for this category. The Government-Wide Financial Statements also include the Bell Gardens Financing Authority, a legally separate entity for which the City is financially accountable. Its financial information is blended with the primary government's financial statements to provide a complete financial picture of the City. Fund Financial Statements The fund financial statements provide detailed information about the City’s most significant funds. Some funds are required to be established by State law and bond covenants. However, management establishes many other funds to help control and manage money for particular purposes and to show that it is meeting legal responsibilities for using certain taxes, grants, and other funding sources. The fund financial statements include statements for each of the three categories of activities – governmental, proprietary, and fiduciary. The governmental activities are prepared using the current financial resources measurement focus and the modified accrual basis of accounting. The business-type activities are prepared using the economic resources measurement focus and the accrual basis of accounting. The fiduciary activities are custodial funds which only report assets and liabilities and do not have a measurement focus. Governmental Funds—The Governmental Funds are used to account for essentially the same functions reported as governmental activities in the Government-Wide Financial Statements. However, unlike the Government-Wide Financial Statements, Governmental Funds Financial Statements focus on current financial resources, which emphasize near-term inflows and outflows of spendable resources as well as balances of spendable resources at the end of the fiscal year. This information is essential in evaluating the City’s near-term financial requirements. To better understand the City’s long-term and short-term requirements, it is useful to compare the City’s Governmental Fund Statements with the governmental activities in the Government-Wide Financial Statements. A reconciliation of the statements is provided for both the governmental fund balance sheet and the statement of revenues, expenditures and changes in fund balances to facilitate this comparison. The City of Bell Gardens maintains twenty-seven (27) governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund, Low and Moderate Housing fund, and Capital Improvement Projects fund which are reported as major funds. Data from the other twenty-three (23) governmental funds are combined into a single, aggregate presentation in the non-major governmental funds. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements in the Supplementary Information section of this report. The City adopts an annual appropriated budget for its General Fund. A budgetary comparison statement has been provided for the General fund to demonstrate its compliance with this budget. Proprietary Funds— The City maintains only one type of proprietary fund, the enterprise fund for its water utility and golf course. Enterprise funds are used to report the same functions presented as business-type activities in government-wide financial statements.

7 Fiduciary Funds— As a result of the dissolution of the redevelopment agency, the city maintains a fiduciary fund, which consists of a private purpose trust fund used to account for the assets and liabilities of the former Community Development Commission and the allocated revenue to pay estimated installment payments of enforceable obligations until the obligations of the former Community Development Commission are paid in full and assets have been liquidated. Notes to the Basic Financial Statements The notes provide additional information that is essential to a full understanding of the data provided in the Government-Wide and Fund Financial Statements. The combining statements referred to earlier in connection with the non-major governmental funds and enterprise funds are presented immediately following the required supplementary information. GOVERNMENT-WIDE FINANCIAL ANALYSIS Statement of Net Position The following is the condensed Statement of Net Position for the fiscal years ended June 30, 2023 and 2024. The City’s Government-wide total net position was $79.6 million which comprised of $242.1 million total assets, deferred outflows of resources of $23.1 million, total liabilities of $138 million and deferred inflows of resources of $47.6 million. The net investment in capital assets of $105.5 million represents 134% of the City’s total net position. City’s investment in capital assets such as land, buildings, structures, machinery, and equipment, less any related debt to acquire those assets that is still outstanding. These assets are used to provide services to the citizens of the City of Bell Gardens; therefore, they are not available for future spending. Although the City’s investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since capital assets themselves cannot be used to liquidate these liabilities.

8 Statement of Activities The following is the condensed Statement of Activities for the fiscal years ended June 30, 2023 and 2024. The government-wide Statement of Activities is used to report changes in the net position reported on the government-wide statement of assets.

Revenue highlights: Revenues for the City’s governmental and business-type activities were $66 million, an increase of approximately $1 million or 2%, from $65 million in the preceding fiscal year. The important key elements of significant changes for governmental activities were as follows.  The largest revenue source continued to be card club taxes, a general revenue totaling $18.2 million for the fiscal year. This reflects a decrease of $700 thousand, or 4%, compared to the prior year. The decline is attributed to fluctuations in casino operations following a period of strong recovery.  The second largest revenue source was capital grants and contributions, a program revenue, at $7.6 million for the current fiscal year. This represents a decrease of $2 million, or 20%, from the prior year. Capital grants and contributions were allocated to public works capital projects.  The third largest revenue source was operating grants and contributions, a program revenue, totaling $7.5 million for the current fiscal year. This is very similar to the prior year, with a modest increase of $42 thousand.  The fourth largest revenue source was operating grants and contributions, a program revenue, totaling $7.5 million for the current fiscal year. This is a decrease of $249 thousand from the prior year but remains very similar to the prior year.

9 Expense highlights: Governmental activity expenses increased by $7.1 million, or 14%, compared to the preceding fiscal year. The changes in the expense categories for governmental activities are summarized as follows: a $3.2 million increase in General Government, a $4.7 million increase in Public Safety, a $518 thousand increase in Community Development, a $1.2 million increase in Parks and Recreation, a $2.8 million decrease in Public Works, and a $280 thousand increase in Interest and Fiscal Charges. Business Type Activities The City’s Water Utility System and Golf Course are the City’s business-type activity.  The Water Utility System and Golf Course revenues totaled $2.8 million, reflecting an increase of $1.2 million from the preceding fiscal year. The Water Utility System saw an increase of $1.2 million due to a water rate hike, while the Golf Course experienced a slight decrease of $11 thousand.  The Water Utility System and Golf Course expenses decreased by $1 thousand compared to the preceding fiscal year. Water utility expenses decreased by 33 thousand, while golf course expenses increased by $32 thousand.  Transfers out from the Water Utility System to General Fund to pay the water bond amounted to $145 thousand, while transfers into the Golf Course from the General Fund totaled $90 thousand to support the Golf Course operation.  At June 30, 2024, the net position was a negative of $1.9 million, compared to a negative $2 million in the preceding fiscal year. FUND FINANCIAL STATEMENT ANALYSIS The City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental Funds The focus of the City’s governmental funds is to provide information on short-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s financing requirements. As of fiscal year ended June 30, 2024, the City’s governmental funds reported combined ending fund balance of $8.4 million, an increase of $4 million, or 8%, compared to the preceding fiscal year’s balance of $44.4 million. The fund balances consisted of nonspendable, restricted, assigned, and unassigned. Nonspendale fund balance of $7.1 million is not available for use and is comprised of prepaid expenses, advances to other funds and interfund loans to the Water Utility System. Restricted fund balance of $12.6 million can only be used for specific purposes pursuant to constraints imposed by applicable laws and regulations and external parties such as grantors and creditors. Assigned fund balance of $30.9 million are assigned to contingencies, post employment benefits, compensated absences and interfund loans receivable. These funds can be used through the appropriate budget approval process. Unassigned fund balance of negative $1.4 million from Capital Grants Fund due to timing of receipts, which did not meet the revenue recognition criteria for governmental funds. Proprietary Funds The City’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. Factors concerning these funds have already been addressed in the discussion of Government-Wide Financial Analysis of business-type activities.

10 MAJOR GOVERNMENTAL FUND HIGHLIGHTS The City Council and the City Manager, pursuant to City budget policy, may revise the budget periodically to accommodate changes in community needs, program requirements, and fiscal conditions resulting from emergencies or other unforeseen events. The originally adopted General Fund appropriation and transfers out for this fiscal year totaled $43,823,992. During the year, additional appropriations and carryovers adjusted the final General Fund expenditure budget to $43,272,143, including $200,000 allocated for contingencies. As of the fiscal year ended June 30, 2024, the City’s General Fund had actual revenues exceeding the approved budget by $1.8 million, primarily due to card club taxes, a general revenue source, totaling $18.2 million. This represents a decrease of $720K, or 4%, from the preceding fiscal year. Actual expenditure exceeded the original budget by $2.4 million due to a $579K increase in contractual services, $1.6 million in capital outlays, and $965K in vacancy savings. As of June 30, 2024, the City’s Low and Moderate Housing Special Revenue Fund had actual revenues matching the originally adopted budget of $160K. Similar to the prior year, there were no budgeted or actual expenditures. CAPITAL ASSETS AND DEBT ADMINISTRATION Capital Assets The City’s investment in capital assets for governmental and business-type activities as of June 30, 2024, was $112.4 million (net accumulated depreciation) as compared to prior year of $107.5 million. Net position at July 1, 2023, as originally reported was adjusted to correct an understatement of construction in progress from the prior year, amounting to $450 thousand. Additional information about the City’s capital assets can be found in Note 5 of this report.

11 Long-term Debt At June 30, 2024, the City had $132.7 million in long-term debts including bonds, notes, pension obligations, lease payable, other post-employment benefit obligations, and accrued leaves. Long-term debt increased by $7.4 million as compared to the prior year amount of $125.3 million. The most significant increase was in other post employment obligations and net pension liability (CALPERS). The City did not issue or refund long-term debt during the year. Additional information about the City’s long-term debt can be found in Note 6, 7, 8 and 9 in this report.

ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS The City of Bell Gardens has seen strong financial performance for three consecutive years, driven by robust tax and fee revenues and investments in economic development. Casino revenue is at an all-time high, and growth in other revenues supports overall fiscal health. Additionally, the city anticipates future revenue growth from its new cannabis business program, which is expected to positively impact the City’s finances. However, the city remains cautious due to uncertainties, including inflation, recession risks, the ongoing Russia-Ukraine conflict, recent tariff changes, and the potential impact of Senate Bill 549 signed in September 2024, which allows tribal nations in California to challenge the legality of certain table games in community casinos. These factors may affect future revenue, and the City will continue to monitor economic conditions closely. As of December 2024, the California Legislative Analyst's Office (LAO) projects a budget deficit of approximately $2 billion for the 2025-26 fiscal year. This deficit is significantly smaller than the $68 billion shortfall estimated for the 2024-25 fiscal year. The improvement is attributed to increased revenue collections and proactive spending reductions implemented by the Legislature and the Administration. However, the LAO warns of substantial operating deficits averaging between $20 billion and $30 billion annually from the 2026-27 through 2028-29 fiscal years. Given these fiscal projections, the use of general purpose reserves in the current year is considered prudent. Nonetheless, the LAO advises caution in deploying reserves and implementing cost shifts, as the state's reserves may be insufficient to cover projected multiyear deficits. Addressing these deficits will likely require ongoing spending reductions, revenue enhancements, or a combination of both. These updated figures underscore the importance of careful fiscal planning and monitoring to navigate the state's evolving budgetary challenges. From an operating expenditures perspective, rising pension costs are driven by CalPERS' assumptions in estimating net pension liability and required contributions. One key factor is the discount rate, which can significantly impact on the City’s total pension liability. To address this, the city has proactively mitigated pension cost increases by pre-paying the annual UAL. Additionally, increasing health insurance costs continue to affect City finances. The total OPEB liability also poses a long-term fiscal impact on the City’s net position. As of fiscal year 2023-24, the retiree healthcare liability stands at over $68.9 million. The City’s fiscal year 2024-25 operating budget reflects its commitment to foster steady, controlled growth and provide the highest level of service to the community. Questions or requests for information regarding the City of Bell Gardens’ 2024-25 budget should be sent to the Finance Department at the address below.

12 CONTACTING THE CITY’S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors with a general overview of the City of Bell Gardens’ finances and to show the City’s accountability for money received. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the City’s Finance Department, at the City of Bell Gardens, 7100 Garfield Avenue, Bell Gardens, CA 90201.

Governmental Business-TypeASSETSActivitiesActivitiesTotalCurrent assets:44,712,180$ 24,933 44,737,113 Receivable:Accounts 3,462,874 608,713 4,071,587 Notes and loans (note 3) 9,616,834 - 9,616,834 Accrued interest 231,410 - 231,410 Leases (note 7) 29,483,296 - 29,483,296 Internal balances (note 4) 6,863,623 (6,863,623) - Advances to Successor Agency 36,962,205 - 36,962,205 Prepaid items 130,707 - 130,707 Due from other governments 3,646,019 - 3,646,019 Total current assets 135,109,148 (6,229,977) 128,879,171 Noncurrent assets:421,164 398,447 819,611 Capital assets (note 5): Non-depreciable 83,100,634 1,011,000 84,111,634 Depreciable, net 23,372,689 4,912,089 28,284,778 Total capital assets 106,473,323 5,923,089 112,396,412 Total noncurrent assets 106,894,487 6,321,536 113,216,023 Total assets242,003,635 91,559 242,095,194 DEFERRED OUTFLOWS OF RESOURCES Pensions (note 8) 20,309,677 175,985 20,485,662 OPEB (note 9) 2,584,040 33,062 2,617,102 Total deferred outflows of resources22,893,717 209,047 23,102,764 LIABILITIESCurrent liabilities: Accounts payable 3,876,166 326,455 4,202,621 Accrued liabilities 535,396 5,152 540,548 Due to other governments 173,393 - 173,393 Interest payable 30,594 4,608 35,202 Unearned revenue 2,044,015 - 2,044,015 Deposits payable 450,189 - 450,189 Long-term liabilities - due within one year (note 6) 375,616 380,211 755,827 Compensated absences - due within one year (note 6) 1,801,814 - 1,801,814 Total current liabilities 9,287,183 716,426 10,003,609 Noncurrent liabilities: Long-term liabilities - due in more than one year (note 6) 6,145,597 - 6,145,597 Net pension liability (note 8) 52,155,877 441,151 52,597,028 Net OPEB liability (note 9) 66,586,450 866,872 67,453,322 Compensated absences - due in more than one year (note 6) 1,801,815 - 1,801,815 Total noncurrent liabilities 126,689,739 1,308,023 127,997,762 Total liabilities135,976,922 2,024,449 138,001,371 DEFERRED INFLOWS OF RESOURCES Lease items (note 7) 29,483,296 - 29,483,296 Pensions (note 8) 3,032,515 22,163 3,054,678 OPEB (note 9) 14,834,019 189,797 15,023,816 Total deferred inflows of resources47,349,830 211,960 47,561,790 NET POSITIONNet investment in capital assets 99,921,516 5,542,878 105,464,394 Restricted for: Community development projects 10,305,811 - 10,305,811 Public safety 1,186,199 - 1,186,199 Parks and recreation 359,608 - 359,608 Capital projects 9,479,288 - 9,479,288 Debt service - 398,447 398,447 Total restricted 21,330,906 398,447 21,729,353 Unrestricted (39,681,822) (7,877,128) (47,558,950) Total net position81,570,600$ (1,935,803) 79,634,797 Cash and investments with fiscal agent (note 2)CITY OF BELL GARDENSStatement of Net PositionJune 30, 2024Primary Government Cash and investments (note 2) See accompanying notes to the basic financial statements.13Page 811 of 976 Operating Capital TotalCharges for Grants and Grants and ProgramExpensesServicesContributionsContributionsRevenuePrimary Government:Governmental activities:12,126,324$ 344,881 64,939 - 409,820 21,259,242 650,239 335,727 - 985,966 1,856,230 815,781 975,671 - 1,791,452 5,627,583 528,943 17,829 - 546,772 16,005,666 649,381 6,057,994 7,630,856 14,338,231 292,808 - - - - 57,167,853 2,989,225 7,452,160 7,630,856 18,072,241 Business-type activities:2,487,621 2,660,523 - - 2,660,523 275,776 185,900 - - 185,900 2,763,397 2,846,423 - - 2,846,423 59,931,250$ 5,835,648 7,452,160 7,630,856 20,918,664 General revenues: Taxes:Transfers CITY OF BELL GARDENSStatement of ActivitiesFor the Year Ended June 30, 2024 See accompanying notes to the basic financial statements.14 Functions/ProgramsProgram Revenues General government Public safety Community development Parks and recreation Public works Interest Total governmental activitiesTotal business-type activitiesTotal primary government Card club gross receipt tax Property taxes, levied for general purpose Water Golf Course Transient occupancy taxes Sales taxes Franchise taxes Business license taxes Other taxes Change in net position Net position - beginning of year, as restated (note 15) Net position - end of year Total taxes Motor vehicle in lieu - unrestricted Use of money and property Other Total general revenues and transfers

Governmental Business-TypeActivitiesActivitiesTotal(11,716,504) - (11,716,504) (20,273,276) - (20,273,276) (64,778) - (64,778) (5,080,811) - (5,080,811) (1,667,435) - (1,667,435) (292,808) - (292,808) (39,095,612) - (39,095,612) - 172,902 172,902 - (89,876) (89,876) - 83,026 83,026 (39,095,612) 83,026 (39,012,586) 18,174,682 - 18,174,682 1,889,289 - 1,889,289 641,361 - 641,361 7,479,267 - 7,479,267 4,988,489 - 4,988,489 244,575 - 244,575 5,551 - 5,551 33,423,214 - 33,423,214 6,003,344 - 6,003,344 5,415,736 47 5,415,783 251,214 - 251,214 54,635 (54,635) - 45,148,143 (54,588) 45,093,555 6,052,531 28,438 6,080,969 75,518,069 (1,964,241) 73,553,828 81,570,600$ (1,935,803) 79,634,797 15 Primary GovernmentNet (Expense) Revenue and Changes in Net Position

Special CapitalRevenue Projects FundFundLow and Capital Nonmajor TotalGeneral Moderate Improvement Governmental GovernmentalFundHousingProjectsFundsFundsASSETSCash and investments (note 2) 28,650,228$ 2,524,397 943,205 12,594,350 44,712,180 Receivables:Accounts 3,419,514 43,360 - - 3,462,874 Notes and loans (note 3) 64,768 6,801,289 - 2,750,777 9,616,834 Interest 155,665 17,169 - 58,576 231,410 Leases (note 7) 29,483,296 - - - 29,483,296 Prepaid items 130,707 - - - 130,707 Due from other governments - - 1,785,007 1,861,012 3,646,019 Due from other funds (note 4) 8,774,410 - - - 8,774,410 Advances to Successor Agency 36,962,205 - - - 36,962,205 Restricted assets:Cash and investments with fiscal agents (note 2) - - 421,164 - 421,164 Total assets107,640,793$ 9,386,215 3,149,376 17,264,715 137,441,099 LIABILITIESAccounts payable 1,866,354$ - 1,358,257 651,555 3,876,166 Accrued liabilities 535,396 - - - 535,396 Due to other governments - - - 173,393 173,393 Deposits payable 346,207 - - 103,982 450,189 Unearned revenue - - 13,002 2,031,013 2,044,015 Due to other funds (note 4) - - - 1,910,787 1,910,787 Total liabilities2,747,957 - 1,371,259 4,870,730 8,989,946 DEFERRED IN FLOWS OF RESOURCESLease items 29,483,296 - - - 29,483,296 Unavailable revenue 37,428,717 6,801,289 2,949,155 3,432,488 50,611,649 Total deferred in flows of resources 66,912,013 6,801,289 2,949,155 3,432,488 80,094,945 FUND BALANCES (note 12)Nonspendable 7,059,098 - - - 7,059,098 Restricted - 2,584,926 - 10,166,574 12,751,500 Assigned 30,849,725 - - 144,490 30,994,215 Unassigned 72,000 - (1,171,038) (1,349,567) (2,448,605) Total fund balances (deficits)37,980,823 2,584,926 (1,171,038) 8,961,497 48,356,208 Total liabilities, deferred inflows and fund balances107,640,793$ 9,386,215 3,149,376 17,264,715 137,441,099 Governmental FundsJune 30, 2024Balance SheetCITY OF BELL GARDENS See accompanying notes to the basic financial statements.16Page 814 of 976 Fund balances of governmental funds 48,356,208$ Amounts reported for governmental activities in the statement of net position are different because: Capital assets used in governmental activities were not current financial resources. Therefore, they were not reported in the governmental funds balance sheet. Capital assets were adjusted as follows: Capital assets 161,666,120 Accumulated depreciation (55,192,797) Certain revenues were not available to pay for current-period expenditures and, therefore, were deferred in funds. 50,611,649 Long-term debt and compensated absences have not been included in the governmental fund activity: Lease Revenue Refunding Bonds (4,240,000) Unamortized bond premiums/discounts (413,029) Lease Payable (1,868,184) Compensated absences (3,603,629) Proportionate share of net pension liability has not been included in governmental fund activity. (52,155,877) Deferred outflows related to contributions made after the actuarial measurement date for the net pension liability. 20,309,677 Deferred outflows and inflows related to unrecognized actuarial gains and losses for the net pension liability. (3,032,515) Net OPEB liability has not been included in governmental fund activity. (66,586,450) Deferred outflows and inflows related to unrecognized actuarial gains and losses for the net OPEB liability. (12,249,979) Accrued interest payable for the current portion of interest due on Bonds has not been reported in the governmental funds. (30,594) Net position of governmental activities 81,570,600$ CITY OF BELL GARDENSReconciliation of the Governmental Funds Balance Sheet to the Government-wide Statement of Net PositionJune 30, 2024 See accompanying notes to the basic financial statements.17Page 815 of 976 Special CapitalRevenue ProjectsFundFundLow and Capital Nonmajor TotalGeneral Moderate Improvement Governmental GovernmentalFundHousingProjectsFundsFundsRevenues: Taxes and assessments 29,174,540$ - - 6,218,804 35,393,344 Licenses and permits 697,538 - - - 697,538 Intergovernmental 6,207,085 - 2,356,727 7,318,349 15,882,161 Charges for services 339,822 - - 508,592 848,414 Use of money and property 6,253,039 97,622 22 203,912 6,554,595 Fines and forfeitures 1,003,933 - - 53,996 1,057,929 Contributions 250,000 - - - 250,000 Other revenue 1,822,414 50,068 - 14,723 1,887,205 Total revenues 45,748,371 147,690 2,356,749 14,318,376 62,571,186 Expenditures: Current: General government 7,964,458 - - 1,506,051 9,470,509 Public works 5,787,711 - - 7,790,880 13,578,591 Public safety 17,842,847 - - 310,586 18,153,433 Community development 1,405,760 - - 450,470 1,856,230 Parks and recreation 5,407,583 - - 220,000 5,627,583 Capital outlay 1,523,027 - 2,448,230 5,393,942 9,365,199 Debt service: Interest and fiscal charges 273,821 - - - 273,821 Principal retirement 329,855 - - - 329,855 Total expenditures 40,535,062 - 2,448,230 15,671,929 58,655,221 Excess (deficiency) of revenuesover (under) expenditures 5,213,309 147,690 (91,481) (1,353,553) 3,915,965 Other financing sources (uses):Transfers in (note 4) 144,484 149,624 - 2,844,245 3,138,353 Transfers out (note 4) (2,785,718) - - (298,000) (3,083,718) Total other financing sources (uses) (2,641,234) 149,624 - 2,546,245 54,635 Net change in fund balances 2,572,075 297,314 (91,481) 1,192,692 3,970,600 Fund balances (deficit), beginning of year 35,408,748 2,287,612 (1,079,557) 7,768,805 44,385,608 Fund balances (deficit), end of year 37,980,823$ 2,584,926 (1,171,038) 8,961,497 48,356,208 Statement of Revenues, Expenditures and Changes in Fund BalancesCITY OF BELL GARDENSGovernmental FundsFor the Year Ended June 30, 2024 See accompanying notes to the basic financial statements.18Page 816 of 976 Changes in fund balances of governmental funds 3,970,600$ Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlay as expenditures. However, in the government-wide statement of activities, the cost of those assets are allocated over their estimated useful lives as depreciation expense. This is the amount by which depreciation expense exceeded capital outlays in the current year, net of disposals and internal service fund activity.Capital outlay 6,938,124 Depreciation expense (2,271,556) Repayment of bond principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net position. The issuance of new debt is revenue in the governmental funds, but increases long-term liabilities in the statement of net position. Repayment of long-term debt:Lease Revenue Refunding Bonds 205,000 CJPIA General Liability Retrospective Payable (47,851) Amortization bond premiums/discounts 24,127 Lease Payable 127,954 Accrued interest for long-term liabilities. This is the net change in accrued interest for the current period 1,638 Revenues in the government-wide statement of activities that did not provide current financial resources were not reported as revenues in the governmental funds. 594,563 Compensated absences expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds (31,996) Pension obligation expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds. (1,550,817) To record as an expense the net change in other post employment benefits liability in the statement of activities. (1,907,255) Change in net position of governmental activities 6,052,531$ 19 CITY OF BELL GARDENSReconciliation of the Governmental Funds Statement of Revenues, Expenditures, andChanges in Fund Balance to the Governmental-wide Statement of ActivitiesFor the Year Ended June 30, 2024 See accompanying notes to financial statements.

GolfWaterCourseTotalsASSETSCurrent assets:Cash and investments (note 2) -$ 24,933 24,933 Receivables: Accounts 608,713 - 608,713 Restricted:Cash and investments with fiscal agents (note 2) 398,447 - 398,447 Total current assets 1,007,160 24,933 1,032,093 Noncurrent assets:Capital assets, net of accumulated depreciation (note 5): 5,923,089 - 5,923,089 Total noncurrent assets 5,923,089 - 5,923,089 Total assets 6,930,249 24,933 6,955,182 DEFERRED OUTFLOWS OF RESOURCES Pensions (note 8) 175,985 - 175,985 OPEB (note 9) 33,062 - 33,062 Total deferred outflows of resources209,047 - 209,047 LIABILITIESCurrent liabilities:Accounts payable 321,915 4,540 326,455 Accrued liabilities - 5,152 5,152 Interest payable 4,608 - 4,608 Due to other funds (note 4) 6,863,623 - 6,863,623 Long-term debt - due within one year (note 6) 380,211 - 380,211 Total current liabilities 7,570,357 9,692 7,580,049 Noncurrent liabilities: Net pension liability (note 8) 441,151 - 441,151 Net OPEB liability (note 9) 866,872 - 866,872 Total noncurrent liabilities 1,308,023 - 1,308,023 Total liabilities 8,878,380 9,692 8,888,072 DEFERRED INFLOWS OF RESOURCES Pensions (note 8) 22,163 - 22,163 OPEB (note 9) 189,797 - 189,797 Total deferred inflows of resources211,960 - 211,960 NET POSITIONNet investment in capital assets 5,542,878 - 5,542,878 Restricted for: Debt service 398,447 - 398,447 Unrestricted (7,892,369) 15,241 (7,877,128) Total net position (1,951,044)$ 15,241 (1,935,803) CITY OF BELL GARDENSStatement of Fund Net PositionProprietary FundsJune 30, 2024Business-Type Activities - Enterprise Funds See accompanying notes to the basic financial statements.20Page 818 of 976 GolfWaterCourseTotalsOperating revenues:Sales and service charges 2,647,005$ 183,606 2,830,611 Other revenues 13,518 2,294 15,812 Total operating revenues 2,660,523 185,900 2,846,423 Operating expenses:Administration and general 444,114 99,288 543,402 Cost of sales and services 1,847,506 176,488 2,023,994 Depreciation (note 5) 168,182 - 168,182 Total operating expenses 2,459,802 275,776 2,735,578 Operating income (loss) 200,721 (89,876) 110,845 Non-operating revenues (expenses):Investment income 22 25 47 Interest expense and fees (27,819) - (27,819) Total non-operating revenues (expenses) (27,797) 25 (27,772) Income (loss) before transfers 172,924 (89,851) 83,073 Transfers in (note 4) - 89,849 89,849 Transfers out (note 4) (144,484) - (144,484) Change in net position 28,440 (2) 28,438 Net position (deficit), at beginning of year (1,979,484) 15,243 (1,964,241) Net position (deficit), end of year (1,951,044)$ 15,241 (1,935,803) Business-Type Activities - Enterprise FundsCITY OF BELL GARDENSStatement of Revenues, Expenses and Changes in Fund Net PositionProprietary FundsFor the year ended June 30, 2024 See accompanying notes to the basic financial statements.21

GolfWaterCourseTotalsCash flows from operating activities:Cash received from customers and users 2,359,777$ 185,900 2,545,677 Cash paid to suppliers for goods or services (1,840,357) (180,465) (2,020,822) Cash paid to employees for services (281,451) (99,288) (380,739) Net cash provided (used by) operating activities 237,969 (93,853) 144,116 Cash flows from noncapital financing activities:Transfers in (out) from/to other funds (144,484) 89,849 (54,635) Cash borrowed from other funds 299,020 - 299,020 Net cash provided (used by) noncapital financing activities 154,536 89,849 244,385 Cash flows from capital and related financing activities:Principal paid on capital debt (360,000) - (360,000) Interest paid on capital debt (32,527) - (32,527) Net cash provided (used by) capital and related financing activities (392,527) - (392,527) Cash flows from investing activities:Investment income 22 25 47 Net cash provided (used by) investing activities 22 25 47 Net increase (decrease) in cash and cash equivalents - (3,979) (3,979) Cash and equivalents, beginning of year 398,447 28,912 427,359 Cash and equivalents, end of year 398,447$ 24,933 423,380 FINANCIAL STATEMENT PRESENTATION:Cash and investments -$ 24,933 24,933 Cash and investments with fiscal agent 398,447 - 398,447 Total cash, cash equivalents, and investments 398,447$ 24,933 423,380 Reconciliation of operating income to net cash providedby operating activities:Operating income (loss) 200,721$ (89,876) 110,845 Adjustments to reconcile operating income (loss)to net cash provided (used) by operating activities:Depreciation 168,182 - 168,182 Changes in operating assets and liabilities:(Increase) decrease in accounts receivable (300,746) (3,977) (304,723) Increase (decrease) in accounts payable 7,149 - 7,149 Increase (decrease) in net pension liability and net OPEB liability, net of deferred outflows and inflows 162,663 - 162,663 Total adjustments 37,248 (3,977) 33,271 Net cash provided (used) by operating activities 237,969$ (93,853) 144,116 Business-Type Activities - Enterprise FundsCITY OF BELL GARDENSStatement of Cash FlowsProprietary FundsFor the year ended June 30, 2024 See accompanying notes to the basic financial statements.22Page 820 of 976 Private-Purpose TrustFundSuccessorAgency of theFormerCommunityDevelopmentCommissionASSETSCash and investments (notes 2 and 13) 3,369,822$ Receivables: Notes and loans (note 13) 2,332,597 Accrued interest7,534 Restricted assets: Cash and investments with fiscal agents (notes 2 and 13) 2,356,891 Capital assets: Capital assets, not being depreciated (note 13) 1,773,001 Total assets 9,839,845 DEFERRED OUTFLOWS OF RESOURCESPensions (note 8) 65,204 LIABILITIESCurrent liabilities:Accounts payable9,400 Interest payable232,674 Deposits37,000 Long-term liabilities: Due in one year (note 13)1,228,716 Due in more than one year (note 13)47,444,159 Net pension liability (note 8)686,518 Net OPEB liability (note 9)1,165,830 Total liabilities50,804,297 DEFERRED INFLOWS OF RESOURCESPensions (note 8) 237,758 NET POSITIONHeld in trust for other purposes (41,137,006) Total net position (41,137,006)$ CITY OF BELL GARDENSStatement of Fiduciary Net PositionPrivate-Purpose Trust FundsJune 30, 2024 See accompanying notes to the basic financial statements.23Page 821 of 976 Private-Purpose TrustFundSuccessorAgency of theFormerCommunityDevelopmentCommissionAdditions:Taxes 2,546,026$ Investment income 98,530 Other income 1,137,372 Total additions 3,781,928 Deductions:Contractual services 162,846 Interest expense 924,007 Contributions to other governments 250,000 Total deductions 1,336,853 Change in net position 2,445,075 Net position (deficit), beginning of year (43,582,081) Net position (deficit), end of year (41,137,006)$ CITY OF BELL GARDENSStatement of Changes in Fiduciary Net PositionPrivate-Purpose Trust FundsFor the year ended June 30, 2024 See accompanying notes to the basic financial statements.24

25 CITY OF BELL GARDENS NOTES TO BASIC FINANCIAL STATEMENTS Year ended June 30, 2024 (1) Organization and Summary of Significant Accounting Policies a. Description of the Reporting Entity This report includes all fund types of the City of Bell Gardens (the “primary government”), as well as the Bell Gardens Financing Authority (the Authority). The Authority meets the definition of a “component unit”, and is presented on a “blended” basis, as if it were part of the primary government. Although the Authority is a legally separate entity, the governing board of the entity is comprised of the same membership as the City Council. The City may impose its will on the component unit, including the ability to appoint, hire, reassign or dismiss management. There is also a financial benefit/burden relationship between the City and the Authority. The City of Bell Gardens, California (City) was incorporated on August 1, 1961. The City operates under a Council-Manager form of government and provides the following services: general government, public safety, public works, recreation and community development. The Bell Gardens Financing Authority (Authority) was created on November 28, 1988, under a Joint Exercise of Powers Agreement by and between the City of Bell Gardens and the former Bell Gardens Community Development Commission (former Commission). The Authority was established pursuant to the laws of the State of California with authority to acquire the former RDA’s bonds as provided in Section 6588 of the Government Code of the State of California. The former RDA has determined that “significant public benefits” will be derived by the former RDA in undertaking the issuance of the bonds and their sale to the Authority and resale to the underwriter, in furtherance of the corporate purposes of the former RDA. Separate financial statements are not prepared for the Authority. b. Government-wide and Fund Financial Statements The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of activities of the primary government. For the most part, the effect of interfund activity has been removed from these statements, and elimination have been made to minimize the double counting of internal activities. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use or directly benefit from goods,

26 CITY OF BELL GARDENS NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (1) Organization and Summary of Significant Accounting Policies (continued) b. Government-wide and Fund Financial Statements (continued) services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and the major individual enterprise fund are reported as separate columns in the fund financial statements. c. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government-wide and proprietary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recoded when earned and expenses are recorded when the liability is incurred, regardless of the timing of the related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measureable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 90 days of the end of the current fiscal year. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences, claims and judgments are not recognized until paid. The City’s fiduciary funds consist of a private purpose trust fund which is reported using the “economic resources” measurement focus and the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. Property taxes, charges for services, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measureable and available only when cash is received by the government. The City reports the following major governmental funds:

27 CITY OF BELL GARDENS NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (1) Organization and Summary of Significant Accounting Policies (continued) c. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (cont.)  The General Fund is the general operating fund of the City. All general tax revenues and other receipts that are not allocated by law of contractual agreement to some other fund are accounted for in this fund. General operating expenditures not paid through other funds are paid from the General Fund.  The Low and Moderate Housing Fund was established to account for the assets of the former Community Development Commission’s Low and Moderate Housing Fund. The fund accounts for transactions related to affordable housing activities. Revenues include repayments of loans that will be recorded for use into this fund for affordable housing activities.  Capital Improvement Projects Fund – These funds account for the financial resources to be used for the acquisition or construction of major capital facilities. The City reports the following major proprietary fund:  The Water Enterprise Fund accounts for the financial activity of the City’s water utility. The costs of providing these services to the general public are financed or recovered primarily through user charges. Additionally, the City reports the following fund types:  Special Revenue Funds – These funds account for proceeds of specific revenue sources that are legally restricted or otherwise assigned for specific purposes.  Capital Projects Funds – These funds account for the financial resources to be used for the acquisition or construction of major capital facilities.  The Private purpose Trust Fund – The fund is used to account for the assets and liabilities of the former community development commission and the allocated revenue to pay estimated installment payments of enforceable obligations until the obligations of the former community development commission are paid in full and assets have been liquidated. As a general rule the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are payments in lieu of taxes and other charges between the government’s water function and various other functions of the government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Amounts reported as program revenues include 1) charges to members, customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes.

28 CITY OF BELL GARDENS NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (1) Organization and Summary of Significant Accounting Policies (continued) c. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (cont.) Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the Water Enterprise Fund are charges to customers for sales and services. Operating expenses for the enterprise fund includes the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted resources first then use unrestricted resources as needed. d. Assets, Deferred Outflows, Liabilities, Deferred Inflows and Net Position or Equity Cash and Investments Investments are reported in the accompanying statement of net position at fair value. Changes in fair value that occur during a fiscal year are recognized as investment income reported for that fiscal year. Investment income includes interest earnings, changes in fair value, and any gains or losses realized upon the liquidation, maturity, or sale of investments. The City pools cash and investments of all funds, except for assets held by bond trustees and fiscal agents. Each fund’s share in this pool is displayed in the accompanying financial statements as cash and investments. Investment income, earned by the pooled investments, is allocated to the various funds based on each fund’s average cash and investment balance. For purposes of the statement of cash flows, the City considers all highly liquid investments (including restricted assets) with maturity of three months or less when purchased to be cash equivalents. Cash invested in the City’s cash management pool is also considered to be cash equivalents. Internal Receivables and Payables Activity between funds that are representative of lending/borrowing arrangement outstanding at the end of the fiscal year are referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported as “due to/from other funds.” Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.”

29 CITY OF BELL GARDENS NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (1) Organization and Summary of Significant Accounting Policies (continued) d. Assets, Deferred Outflows, Liabilities, Deferred Inflows and Net Position or Equity (cont.) Advances, as reported in the fund financial statements, are offset by a nonspendable fund balance account in applicable governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources. All trade and property tax receivables are shown net of an allowance for uncollectibles. Under California law, property taxes are assessed and collected by the counties at 1% of assessed value plus other increases approved by the voters. Property taxes collected go into a pool and are then allocated to the cities based on a predetermined formula. The City of Bell Gardens accrues only those taxes which are received from the County of Los Angeles within 60 days after year end. Lien date: January 1 Levy date: June 30 Due dates: November 1, February 1 Delinquent dates: December 11, April 11 Inventories and Prepaid Items Inventories of material and supplies (if material) are carried at cost on a first-in, first out (FIFO) basis. The City uses the consumption method of accounting for inventories. Certain payments to vendors reflect costs applicable to future accounting periods and are recoded as prepaid items in both government-wide and fund financial statements. Restricted Assets Restricted assets represent unexpended bond proceeds, interest earning thereon and reserve amounts of certificates of participation and tax allocation bonds. Under the related resolutions and indentures, the remaining proceeds are restricted for the use of future construction of improvements to the respective projects, for debt service or for reserve requirements. The majority of these assets are held by trustees and fiscal agents.

30 CITY OF BELL GARDENS NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (1) Organization and Summary of Significant Accounting Policies (continued) d. Assets, Deferred Outflows, Liabilities, Deferred Inflows and Net Position or Equity (cont.) Capital Assets Capital assets, which include property, plant, equipment, intangible assets and infrastructure assets (e.g., roads, bridges, sidewalks and similar items), are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed (except for intangible right-to-use lease assets), the measurement of which is discussed thereafter. Donated assets are valued at acquisition value of the assets on the date on which they were contributed. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. The City utilizes a capitalization threshold of $5,000-$10,000 depending on asset type. Depreciation is charged to operations using the straight-line method over the estimated useful lives of the assets as follows: Buildings and improvements 20-40 years Equipment 3-15 years Infrastructure 20-50 years Water rights 100 years Deferred outflows/inflows of resources In addition to assets, the statement of financial position and governmental fund balance sheet will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The City has two items that qualifies for reporting in this category. One is the deferred charge on refunding reported in the business-type Statement of Net Position. A deferred charge on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. The second are deferred outflows relating to the net position liability reported in the government-wide and in the business-type Statements of Net Positions. These outflows are the results of contributions made after the measurement period, which are expensed in the following year, and of adjustments due to difference in proportions and the difference between actual contributions made and the proportionate share of the risk pool’s total contributions. These amounts are deferred and amortized over the expected average remaining service life time.

31 CITY OF BELL GARDENS NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (1) Organization and Summary of Significant Accounting Policies (continued) d. Assets, Deferred Outflows, Liabilities, Deferred Inflows and Net Position or Equity (cont.) Deferred outflows/inflows of resources (continued) In addition to liabilities, the statement of financial position and governmental fund balance sheet will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has three items, which arises only under a modified accrual basis of accounting that qualifies for reporting in this category. Accordingly, one item, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from two sources: property taxes and grants. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. The second are deferred inflows relating to the net pension obligation reported in the government-wide and in the business-type Statements of Net Positions. These inflows are the result of the net difference between projected and actual earnings on pension plan investments. This amount is deferred and amortized straight-line over a five-year period. The third are deferred inflows related to leases. Compensated absences The cost of earned but unused vacation and sick leave, for which the City has a future obligation to pay, is recognized in the government-wide financial statements. A liability for these amounts is reported in governmental funds only if they become due and payable as a result of employee resignations or retirements. Typically, the City liquidates its compensated absences with general fund resources. Long-Term Obligations In the Government-wide Financial Statements, long-term debt and other long-term obligations are reported as liabilities in the appropriate activities. Bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are no longer reported as deferred charges and amortized over the term of the related debt, instead they should be expensed in the period incurred. Bond issuance costs are immediately expensed in the Government-wide Financial Statements in addition to the Proprietary and Fiduciary Fund Statements in accordance with GASB No. 65. In the Fund Financial Statements, with the exception of advances from other funds, long-term liabilities are not presented. Governmental fund types recognize bond premiums and discounts during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. Consequently, long term debt is shown as a

32 CITY OF BELL GARDENS NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (1) Organization and Summary of Significant Accounting Policies (continued) d. Assets, Deferred Outflows, Liabilities, Deferred Inflows and Net Position or Equity (cont.) Long-Term Obligations (continued) reconciling item in the Reconciliation of the Governmental Funds Balance Sheet to the Government-wide Statement of Net Position. In the Government-wide Financial Statements, interest payable on long-term debt is recognized as the liability is incurred for governmental activities and business-type activities. In the Fund Financial Statements, only propriety fund types recognize the interest payable when the liability is incurred. Fund Balances and Spending Policy In the Governmental Fund Financial Statements, fund balances are classified in the following categories: Nonspendable – Items that cannot be spent because they are not in a spendable form, such as prepaid items and inventories, items that are legally or contractually required to be maintained intact, such as principal of an endowment or revolving loan fund. Restricted – Restricted fund balances encompass the portion of net fund resources subject to externally enforceable legal restrictions. This includes externally imposed restrictions by creditors, such as through debt covenants, grantors, contributions, laws or regulations of other governments, as well as restrictions imposed by law through constitutional provisions or enabling legislation. Committed – Committed fund balances encompass the portion of net fund resources, the use of which is constrained by limitations that the government imposes upon itself at its highest level of decision making, The City Council is considered the highest authority for the City and approves such commitments through council resolutions and/ or similar documents. These committed amounts cannot be used for any other purposes unless the City Council removes or changes the specified use through the same type of formal action taken to establish the commitment. Assigned – Assigned fund balances encompass the portion of net fund resources reflecting the government’s intended use of resources that are neither restricted or committed. Assignment of resources can be done by the highest level of decision making (City Council Resolution) or by a committee or official designated for that purpose. The City Council has designated the City Manager for the purpose to assign fund balance for specific departmental projects.

33 CITY OF BELL GARDENS NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (1) Organization and Summary of Significant Accounting Policies (continued) d. Assets, Deferred Outflows, Liabilities, Deferred Inflows and Net Position or Equity (cont.) Fund Balances and Spending Policy (cont.) Unassigned – The General Fund is the only fund that may report a positive unassigned fund balance amount. In other governmental funds it is not appropriate to report a positive unassigned fund balance amount. However, in governmental funds other than the General Fund, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed, or assigned to those purposes, it may be necessary to report a negative unassigned fund balance in that fund. In July 2008, through Resolution 2008-17, the City Council adopted a fund balance reserve policy. The policy consists of establishing an economic contingency reserve by placing liquid cash in a financial institution in compliance with the investment policy in the amount of $1,000,000 commencing July 1, 2008 and adding $200,000 to the established reserve fund each fiscal year thereafter. The City Council’s goal is to achieve a minimum of 10% of the annual General Fund appropriations as committed fund balance in the General Fund. When both restricted and unrestricted resources are available for use when an expenditure is incurred, it is the City’s policy to use restricted resources first, then unrestricted resources as they are needed. It is the City’s policy to consider committed amounts as being reduced first, followed by assigned amounts, and then unassigned amounts when expenditures are incurred for purposes for which amounts in any of those fund balance classifications could be used. Net Position Flow Assumption Sometimes the government will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted – net position and unrestricted – net position in the government-wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the government’s policy to consider restricted – net position to have been depleted before unrestricted – net position is applied. In the Government-Wide Financial Statements, net position are classified in the following categories: Net Investment in Capital Assets consists of capital assets net of accumulated depreciation and reduced by outstanding debt that attributed to the acquisition, construction, or improvement of the assets. Restricted Net Position are restricted by external creditors, grantors, contributors, laws or regulations of other governments. Unrestricted Net position is all net position that do not meet the definition of “net investment in capital assets” or “restricted net position.”

34 CITY OF BELL GARDENS NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (1) Organization and Summary of Significant Accounting Policies (continued) d. Assets, Deferred Outflows, Liabilities, Deferred Inflows and Net Position or Equity (cont.) Fund Balance Flow Assumption Sometimes the government will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements a flow assumption must be made about the order in which the resources are considered to be applied. It is the government’s policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last. e. Leases and Subscription Agreement Leases Lessee: The City is a lessee for a noncancellable lease of equipment. The City recognizes a lease or subscription agreement liability and an intangible right-to-use lease asset (lease asset) in the government-wide financial statements. The City recognizes lease or subscription agreement liabilities with an initial, individual value of $50,000 or more. At the commencement of a lease, the City initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. The lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequently, the lease asset is amortized on a straight-line basis over its useful life. Key estimates and judgments related to leases include how the City determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments. The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for leases. The lease term includes the noncancellable period of the lease. Lease payments included in the measurement of the lease liability are composed of fixed payments and purchase option price that the City is reasonably certain to exercise. The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability.

35 CITY OF BELL GARDENS NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (1) Organization and Summary of Significant Accounting Policies (continued) e. Leases (cont.) Lease assets are reported with other capital assets and lease liabilities are reported with long-term debt on the Statement of Net Position. Lessor: The City is a lessor for a noncancellable leases of a portion of real property, as well as, building and roof space. The City recognizes a lease receivable and a deferred inflow of resources in the government-wide and governmental fund financial statements. At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of the lease payments received. The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term. Key elements and judgement include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts. The City uses it estimated incremental borrowing rate as the discount rate for leases. The lease term includes the noncancellable period of the lease. Lease receipts included In the measurement of the lease receivable is composed of fixed payments from the lessee. The City monitors changes that would require a remeasurement of its lease and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable. e. Use of Estimates The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities. In addition, estimates affect the reported amount of expenses. Actual results could differ from these estimates and assumptions. f. Pensions For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City of Bell Garden’s California Public Employees’ Retirement System (CalPERS) plan (Plan) and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.

36 CITY OF BELL GARDENS NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (1) Organization and Summary of Significant Accounting Policies (continued) g. New Accounting Pronouncements For the year ended June 30, 2024, the financial statements include the adoption of GASB Statement No. 100, Accounting Changes and Error Corrections. The primary objective of this statement is to enhance accounting and financial reporting requirements for accounting changes (such as changes in accounting principles and estimates) and error corrections to provide more understandable, reliable, consistent, and comparable information for making decisions or assessing accountability. (2) Cash and Investments As of June 30, 2024, cash and investments, including cash and investments with fiscal agent, were reported in the accompanying financial statements as follows: Governmental activities $45,133,344 Business-type activities 423,380 Fiduciary funds 5,726,713 Total cash and investments $51,283,437 The City of Bell Gardens maintains a cash and investment pool that is available for use for all funds. Each fund type’s position in the pool is reported on the combined balance sheet as cash and investments. The City has adopted an investment policy, which authorizes it to invest in various investments. As of June 30, 2024, the carrying amount of the City’s deposits was $48,182,953 and the bank balance was $49,174,679. The $(991,726) difference represents outstanding checks and other reconciling items. The California Government Code requires California banks and savings and loan associations to secure a City’s deposits by pledging government securities with a value of 110% of a City’s deposits. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of a City’s total deposits. The City Treasurer may waive the collateral requirement for deposits which are fully insured up to $250,000 by the FDIC. The collateral for deposits in federal and state chartered banks is held in safekeeping by an authorized Agent of Depository recognized by the State of California Department of Banking. The collateral for deposits with savings and loan associations is generally held in safekeeping by the Federal Home Loan Bank in San Francisco, California as an Agent of Depository. These securities are physically held in an undivided pool for all California public agency depositors. Under Government Code Section 53655, the placement of securities by a bank or savings and loan association with an “Agent of Depository” has the effect of perfecting the security interest in the name of the local governmental agency.

37 CITY OF BELL GARDENS NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (2) Cash and Investments (continued) Accordingly, all collateral held by California Agents of Depository are considered to be held for, and in the name of, the local governmental agency. Investments Authorized by the City’s Investment Policy Under provision of the City’s investment policy, and in accordance with Section 53600 of the California Government Code, the following investments are authorized: Maximum Maximum Maximum Percentage Investment Investment Types Maturity Of Portfolio in One Issuer U.S. Treasury Bills, Bonds and Notes 5 years None None U.S. Government Agency Securities 5 years None None Bills of Exchange 180 days 40% 15% Commercial Paper 270 days 40% 15% Negotiable Certificates of Deposit 5 years 30% 15% Repurchase Agreements 92 days None 15% Reverse Repurchase Agreements 92 days None 15% Local Agency Investment Fund (LAIF) N/A None None Medium Term Corporate Notes 5 years 30% 15% Investments Authorized by Debt Agreements The above investments do not address investment of debt proceeds held by a bond trustee/ fiscal agent. Investments of debt proceeds held by a bond trustee are governed by provision of the debt agreements, rather than the general provision of the California Government Code or the City’s investment policy. Investments in State Investment Pool The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code under the oversight of the Treasurer of the State of California. The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based upon the City’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis.

38 CITY OF BELL GARDENS NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (2) Cash and Investments (continued) Credit Risk Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code, the City’s investment policy or debt agreements, and the actual rating, by Standard and Poor and Moody’s as of year-end for each investment type: Minimum Ratings as of Year End Legal Not Investment Type Rating AAA AA A Rated Local Agency Investment Fund $21,177,446 N/A - - - 21,177,466 Held by Fiscal Agent: Money Market Funds 3,176,502 N/A - - - 3,176,502 Total $24,353,948 - - -24,353,948 Concentration of Credit Risk ` The City’s investment policy does not impose restrictions on the maximum percentage it can invest in a single type of investment. As of June 30, 2024, in accordance with GASB Statement No. 40 requirements, the City is exposed to concentration of credit risk whenever they have invested more than 5% of their total investments in any one issuer. As of June 30, 2024, the City was not exposed to concentration of credit risk. Custodial Credit Risk The custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of a counterparty to a transaction, a government will not be able to recover the value of investment or collateral securities that are in the possession of an outside party. Custodial credit risk does not apply to a local government’s indirect investment in securities through the use of mutual funds or government investment pools (such as LAIF). As of June 30, 2024, none of the City’s deposits or investments were exposed to custodial credit risk.

39 CITY OF BELL GARDENS NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (2) Cash and Investments (continued) Disclosures Relating to Interest Rate Risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. The City’s investment policy limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. The City’s investment policy states that, with the exception of the investment of bond proceeds and LAIF, investments may not exceed five years in maturity. The City has elected to use the segmented time distribution method of disclosure for its interest rate risk. Remaining Investment Maturities Less than 1 to 3 4 to 5 Investment Type 1 Year Years Years Total Local Agency Investment Fund $21,177,466 - - 21,177,466 Held by Fiscal Agent: Money market Mutual Funds 3,176,502 - - 3,176,502 Total $24,353,948 - - 24,353,948 Fair Value Classifications Fair value measurements are categorized based on the valuation inputs used to measure fair value: Level 1 inputs are quoted prices in active markets for identical asset assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. Investments categorized as Level 2 are valued using market approach using quoted market prices. Investments' fair value measurements are as follows as of June 30, 2024: Investment Type Fair Value Level 1 Level 2 Level 3 Local Agency Investment Fund $21,177,466 Held by Fiscal Agent: Money Market Mutual Fund 3,176,502 Total $24,353,948 Investments in the LAIF investment pool and money market mutual funds are uncategorized as deposit and withdrawals are made on the basis of $1 and not fair value.

40 CITY OF BELL GARDENS NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (3) Notes and Loans Receivable Notes and loans receivable at June 30, 2024, consist of the following: a. During 1992-93, the Bell Gardens former RDA entered into a loan agreement with Nehemiah West Housing Corporation for the development of low to moderate-income housing. The loan amount is $1,000,000 originally due October 13, 1994, and bearing interest at the rate of 12% per annum compounded after its due date. The balance as of June 30, 2024 is $272,446. The City’s Low and Moderate Housing Fund has recorded unavailable revenue as of June 30, 2024 for the remainder of the outstanding loan. b. As of June 30, 2024, the City had deferred loans receivable pertaining to housing rehabilitation loans and micro business loans given under the Community Development Block Grant Program in the amount of $347,704 which has also been recorded as unavailable revenue. c. The City and Southern California Water Company executed an agreement effective July 1, 1990, providing for reimbursement to the City of certain costs incurred by the City for water system improvements. The total reimbursement has been estimated at approximately $466,563 and is to be repaid in annual installments. As of June 30, 2024, the balance of the receivable was $29,528 which has also been recorded as unavailable revenue. d. During 1997-98, the City instituted a deferred loan program for academic scholarships. As of June 30, 2024, the balance of the loans outstanding is $341,767 which has also been recorded as unavailable revenue. e. As of June 30, 2024, the City has $35,241 in settlements receivable. The City is scheduled to receive $3,600 annually toward the receivable, which has also been recorded as unavailable revenue. f. The Bell Gardens former Commission is required by State Law to set aside funds to create and preserve housing that is affordable to low and moderate income families and individuals. The City has decided to utilize these funds for a second mortgage and/or closing costs, as needed for low-to-moderate income first time homebuyers. The City has established a not-to-exceed cap of $33,000 per case on an as needed basis. The Bell Gardens First Time Home Buyer Program is a deferred equity share loan secured by a second deed of trust and note with an annual rate of 3%. The loan shall become due and payable only when the property is sold, leased or transferred. Repayment terms of principal, shared equity and interest at 3% per annum simple interest vary depending on the year sold or transferred. After the twentieth year, the loan is forgiven. The former Commission’s share of equity in the property shall not exceed the proportional investment as a percentage of the original purchase price. The balance of the First Time Home Buyer Program as of June 30, 2024 is $833,940 which has also been recorded as unavailable revenue. As a result of dissolution of the Community Development Commission, the loan receivable was transferred to the City’s Low and Moderate Housing Fund.

41 CITY OF BELL GARDENS NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (3) Notes and Loans Receivable (continued) g. On March 22, 2011, Terra Bella, LLP, a California limited partnership (the Borrower) and the Bell Gardens former RDA entered into an owner participation agreement to develop a senior affordable housing project consisting of 65 units. Pursuant to the agreement, the former Commission has provided financial assistance in the amount of $2,600,000 for the partial acquisition, construction, operation and maintenance of the units plus $32,000 on preconstruction loans. The promissory note shall bear simple interest at a rate of 3% per annum which is recorded as unavailable revenue. Payments shall be made annually in arrears on May 1. The entire unpaid principal balance, together with all accrued and unpaid interest, shall be due on the date which is 57 years from the date a certificate of occupancy is issued for the last residential unit in the project. The balance as of June 30, 2024, including accrued interest of $1,010,249, is $3,642,249. The loan receivable is recorded in the City’s Low and Moderate Housing Fund, which has also been recorded as unavailable revenue. h. On April 1, 2005, Bell Gardens Housing Partners, L.P., a California limited partnership entered in a promissory note to pay the Bell Gardens former RDA $3,812,202 for the payment of public and private debts. The Low and Moderate Housing has provided certain financial assistance in construction of a 72-unit senior affordable housing project by providing a Commission Loan (which is represented by this Promissory Note) in the amount of $3,812,202 for the acquisition and clearing of the site and to help defray Developer’s costs. The promissory note amount shall bear simple interest at the rate of 3% per annum, and 10% per annum and shall accrue upon the amount of each payment required upon the date each such payment is due. The Promissory Note shall be paid from “Residual Receipts”, defined as an amount equal to sixty-five percent (65%) of the net profits produced from the project (on a prorated basis), until the note amount has been repaid in full. Any remaining principal, interest and other amounts due and owing under this promissory note shall be paid in full on or before the fifty-fifth (55th) anniversary of the date of promissory note.

42 CITY OF BELL GARDENS NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (3) Notes and Loans Receivable (continued) h. The balance of the promissory note and the related interest has also been recorded as unavailable revenue. The outstanding balance at June 30, 2024, is as follows: Principal Interest Amount Amount Total CDBG Special Revenue $ 964,100 520,334 1,484,434 Former Community Development Commission 1,514,959 817,638 2,332,597 Low and Moderate Housing 1,333,143 719,511 2,052,654 Subtotal 3,812,202 2,057,483 5,869,685 Less amount reported in the Successor Agency 1,514,959 817,638 2,332,597 Total $2,297,243 1,239,845 3,537,088 i. On February 9, 2021, the City established a First Time Homebuyer Mortgage Assistance and/or Owner Occupied Rehabilitation program with CalHome Grant Funds. The outstanding loans as of June 30, 2024, including accrued interest of $39,698 is $576,851. The loan is recorded in the City’s CalHome Fund, which has also been recorded as unavailable revenue. Total notes and loans receivable as of June 30, 2024 is $9,616,834.

43 CITY OF BELL GARDENS NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (4) Inter-fund Receivables, Payables and Transfers a. Due To / From Other Funds: The following summarizes the total due to and from other funds as of June 30, 2024: Due To Other Funds: Nonmajor Enterprise Governmental Water Funds Fund Total Due From Other Funds: General Fund $1,910,787 6,863,623 $8,774,410 Inter-fund receivables and payables as of June 30, 2024 are the result of the elimination of deficit cash balances in individual funds. b. Transfers To / From Other Funds: The following summarizes the total transfers in and transfers out to other funds as of June 30, 2024: Transfers In: Transfers Out: General Fund Low and Mod Housing Fund Nonmajor Governmental Funds Golf Course Enterprise Fund Total General Fund $ - 149,624 2,546,245 89,849 2,785,718 Nonmajor Governmental Funds - - 298,000 - 298,000 Water Enterprise Fund 144,484 - - - 144,484 Total $144,484 149,624 2,844,245 89,849 3,228,202 The General Fund transferred funds to Nonmajor Governmental Funds to fund capital projects and to pay for operating costs. The transfer to the General Fund from Non-Major Governmental Funds was to fund administrative costs. The Water Fund transferred funds to the General Fund for prior years subsidies from the General Fund.

44 CITY OF BELL GARDENS NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (5) Capital Assets A summary of the changes in capital asset activity for the year ended June 30, 2024, is as follows: Governmental Activities: Beginning Ending Description Balance * Additions Deletions Balance Non-depreciable: Land $ 73,888,074 - (526,230) 73,361,844 Construction in process 4,626,388 6,651,781 (1,539,379) 9,738,790 Total non-depreciable 78,514,462 6,651,781 (2,065,609) 83,100,634 Depreciable: Buildings and structures 18,530,262 74,348 (31,029) 18,573,581 Equipment 12,363,363 733,458 (101,955) 12,994,866 Right-to-use, leased equipment 2,224,436 - - 2,224,436 Infrastructure 43,233,224 1,539,379 - 44,772,603 Total depreciable capital assets 76,351,285 2,347,185 (132,984) 78,565,486 Less accumulated depreciation for: Buildings and structures 10,773,069 590,266 (31,029) 11,332,306 Equipment 10,715,732 477,784 (106,722) 11,086,794 Right-to-use, leased equipment 148,296 148,296 - 296,592 Infrastructure 31,421,895 1,055,211 - 32,477,106 Total accumulated depreciation 53,058,992 2,271,556 (137,751) 55,192,797 Total depreciable capital assets, net 23,292,293 76,629 4,767 23,372,689 Total capital assets, net $101,806,755 6,727,410 (2,060,842) 106,473,323 Depreciation expense was charged in the following functions in the Statement of Activities: Governmental Activities: General government $1,216,345 Public works 1,055,221 Total $2,271,556 * – as restated

45 CITY OF BELL GARDENS NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (5) Capital Assets (continued) Business-type Activities: Beginning Ending Description Balance Additions Deletions Balance Non-depreciable: Land $1,011,000 - - 1,011,000 Total non-depreciable 1,011,000 - - 1,011,000 Depreciable: Water rights 1,914,000 - - 1,914,000 Equipment 6,973,549 - - 6,973,549 Total depreciable capital assets 8,887,549 - - 8,887,549 Less accumulated depreciation for: Water rights 631,620 19,140 - 650,760 Equipment 3,175,658 149,042 - 3,324,700 Total accumulated depreciation 3,807,278 168,182 - 3,975,460 Total depreciable capital assets, net 5,080,271 (168,182) - 4,912,089 Total capital assets, net $6,091,271 (168,182) - 5,923,089 Depreciation expense was charged in the following functions in the Statement of Activities: Business-Type Activities Water $168,182 Total $168,182

46 CITY OF BELL GARDENS NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (6) Long-term Liabilities (a) Governmental Activities Long-term liability activity for the year ended June 30, 2024 was as follows: Amounts Beginning Ending Due within Balance Additions Deletions Balance One Year Governmental Activities: 2015 Lease revenue refunding bonds $ 4,445,000 - 205,000 4,240,000 220,000 Unamortized bond premium 437,156 - 24,127 413,029 24,127 Lease payable 1,996,138 - 127,954 1,868,184 131,489 Compensated absences 3,571,633 1,122,382 1,090,386 3,603,629 1,801,815 CJPIA Retrospective Deposit Liability (Asset) (47,851) 47,851 - - - Total governmental activities $10,402,076 1,170,233 1,447,467 10,124,842 2,177,431 2015 Lease Revenue Refunding Bonds: On April 14, 2015, the Authority issued $5,830,000 of Lease Revenue Refunding Bonds. The proceeds were used to refund 2006 Certificates of Participation, to fund various capital projects within the City, to fund a reserve account and to finance the costs of the transaction. The bond refunded $3,260,000 in principal with a $32,600 premium for a total cost to refund the 2006 Certificates of Participation of $3,292,600. This refunding resulted in a net present value savings for the City of approximately $335,270. Interest rates range from 3.0% to 5.0% and is payable semiannually on each June 1 and December 1, commencing on June 1, 2016. Principal payments range from $135,000 to $370,000. As of June 30, 2024, the unamortized premium outstanding was $413,029 and the total principal balance outstanding was $4,240,000. In the event of default, the Authority may only recover rent and other monetary charges as they become due. Fiscal Year Principal Interest Total 2025 $ 220,000 199,613 419,613 2026 230,000 190,813 420,813 2027 235,000 179,313 414,313 2028 250,000 167,563 417,563 2029 260,000 155,063 415,063 2030-2034 1,510,000 566,813 2,076,813 2035-2039 1,320,000 185,188 1,505,188 2040 215,000 8,063 223,063 Total $4,240,000 1,652,429 5,592,429

47 CITY OF BELL GARDENS NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (6) Long-term Liabilities (continued) Lease Payable: On April 30, 2021, the City entered into a master equipment lease purchase for improvements to facilities lighting, HVAC, and water conservation. The initial lease liability was $2,239,435. The term of the lease is 15 years and principal and interest payments commence in October 2021. Semi annual payments of $93,182.18 are due October 31 and April 30 at an interest rate of 2.99%.At June 30, 2024, the total lease liability was $1,868,184. The equipment has a fifteen-year estimated useful life. The value of the right-to-use asset as of the end of the current fiscal year was $2,224,436 and had accumulated amortization of $296,591 as it was placed into service in the prior year. At June 30, 2024, the lease liability was $1,868,184. At June 30, 2024, the annual requirements to repay the outstanding indebtedness were as follows: Fiscal Year Principal Interest Total 2025 $ 131,489 54,875 186,364 2026 135,461 50,903 186,364 2027 139,542 46,822 186,364 2028 143,745 42,619 186,364 2029 148,075 38,289 186,364 2030-2034 810,034 160,077 970,111 2035-2036 359,838 13,525 373,363 Total $1,868,184 407,110 2,275,294 Accrued Leave Payable (Compensated Absences) For governmental funds, accrued leave payable amounted to $3,603,629 as of June 30, 2024. The balance is broken down as follows: $872,617 in vacation leave, $2,022,983 in sick leave, $191,599 in compensatory time, $424,045 in holiday, and $92,385 in administrative leave. CJPIA Retrospective Deposit Liability Retrospective deposits are cost allocation adjustments to prior coverage periods. Some claims take many years to resolve and over time their estimated value changes. The retrospective adjustments are calculated annually and take into consideration all the changes in claim values that occurred during the most recent year. The formula is designed to adequately cover the cost of claims brought against members and to ensure the overall financial strength and security of the Authority. The formula was developed to be as equitable as possible by taking into consideration both risk exposure and claims experience of individual members. CJPIA has temporarily deferred the payment on retrospective deposits owed to the Authority by members. The payment deferral period extends until July 1, 2013 for the Liability program and July 1, 2015 for the Workers’ Compensation program. Retrospective deposit payments are scheduled to resume on these dates. The October 2023 annual retrospective adjustment is included in these balances. As of June 30, 2024, the City has a retrospective deposit of $0.

48 CITY OF BELL GARDENS NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (6) Long-term Liabilities (continued) Optional Payment Plans: When retrospective deposit payments resume as indicated above, members will have the opportunity to select from a variety of optional payment plans. Discounts under the incentive plan are available to members choosing to voluntarily accelerate payment during the deferral period. The City has chosen not to voluntarily accelerate payment at this time. After the deferral period, members choosing from among the optional payment plans will be subject to a moderate annual fee. The fee is intended to provide a means for the Authority to recover otherwise foregone investment earnings and to serve as a minor disincentive for the selection of longer financing terms. Retrospective Balances will Change Annually: Retrospective balances will change with each annual computation during the payment deferral period. Member balances may increase or decrease as a result of the most recent year’s claim development. Accordingly, some members who chose to pay off their balance in full may be required to pay additional retrospective deposits in the future based on the outcome of actual claim development reflected in subsequent retrospective deposit computations. Conversely, if claim development is favorable then subsequent retrospective adjustments could potentially result in refunds to the member. More information on the CJPIA retrospective balances can be found on the CJPIA website at: http://www.cjpia.org. (b) Business-Type Activities: Amounts Beginning Ending Due within Balance Additions Deletions Balance One Year Business-type Activities: 2004 Revenue bonds $740,000 - 360,000 380,000 380,000 Unamortized bond premium 599 - 388 211 211 Total business-type activities $740,599 - 360,388 380,211 380,211 2004 Water Refunding Revenue Bonds During fiscal year 2004-2005, the Bell Gardens Financing Authority issued $5,240,000 of refunding revenue bonds to refund the 1994 Water Revenue Bonds and pay the cost of issuing the bonds (insurance, underwriter discount, and other costs). The maturity date of the bonds is October 1, 2024. The interest rate ranges from 1.75% to 4.875%. As of June 30, 2024, the unamortized premium on the 2004 Water Refunding Revenue Bonds was $211 and the outstanding balance was $380,000.

49 CITY OF BELL GARDENS NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (6) Long-term Liabilities (continued) The debt service requirements to maturity for the revenue bonds outstanding as of June 30, 2024, are as follows: Fiscal Year Principal Interest Total 2025 $ 380,000 18,430 398,430 Total $ 380,000 18,430 398,430 (7) Lease Receivable Lease revenue recognition is in accordance with GASB Statement 87. Summarized information for each lease is as follows: Monument Properties-Bell Gardens LLC (Formerly the Bicycle Hotel Casino) Prior to fiscal year ended June 30, 2022 (the year of implementation), the City entered into a 146 month lease as Lessor for the use of the Bicycle Club Parking Facility which was recognized in fiscal year June 30, 2022 as a result of implementing GASB 87. An initial lease receivable was recorded in the amount of $29,899,288. As of June 30, 2024 the value of the lease receivable and deferred inflow was $22,920,713. The lessee is required to make monthly variable fixed in substance principle and interest payments of $220,685. The lease has an interest rate of 1.25%. The City recognized lease revenue of $2,874,483 during the fiscal year. The lessee has 3 extension option(s), each for 120 months. Outfront Media, LLC Prior to fiscal year ended June 30, 2022 (the year of implementation), the City entered into a 88 month lease as Lessor for a third party use of billboard lease which was recognized in fiscal year June 30, 2022 as a result of implementing GASB 87. An initial lease receivable was recorded in the amount of $996,454. As of June 30, 2024 the value of the lease receivable and deferred inflow was $625,303. The lessee is required to make quarterly fixed payments of $140,000. The lease has an interest rate of 0.8330%. The City recognized lease revenue of $314,099 during the fiscal year. The lessee has 2 extension option(s), each for 60 months. Florence Eastern Marketplace LLC Prior to fiscal year ended June 30, 2022 (the year of implementation), the City entered into a 26 month lease as Lessor for a third party use of Shopping Center (Market Place) which was recognized in fiscal year June 30, 2022 as a result of implementing GASB 87. An initial lease receivable was recorded in the amount of $3,479,084. As of June 30, 2024 the value of the lease receivable and deferred inflow was $0. The lessee is required to make monthly fixed payments of $125,890. The lease has an interest rate of 0.2180%. The City recognized lease revenue of $276,883 during the fiscal year. The lessee has 7 extension option(s), each for 120 months.

50 CITY OF BELL GARDENS NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (7) Lease Receivable (continued) Los Angeles SMSA Limited Partnership C/O AirTouch Cellular (Version) Prior to fiscal year ended June 30, 2022 (the year of implementation), the City entered into a 59 month lease as Lessor for a third party use of ground lease which was recognized in fiscal year June 30, 2022 as a result of implementing GASB 87. An initial lease receivable was recorded in the amount of $184,671. As of June 30, 2024 the value of the lease receivable and deferred inflows was $105,853. The lessee is required to make monthly fixed payments of $3,060. The lease has an interest rate of 0.5770%. The City recognized lease revenue of $53,951 during the fiscal year. The lessee has 3 extension option(s), each for 60 months. The lessee had a termination period of 1 month as of the lease commencement. Bell Gardens Hospitality, LLC (Quality Choice) Prior to fiscal year ended June 30, 2022 (the year of implementation), the City entered into a 784 month lease as Lessor for the use of the Bell Gardens Hotel Site-Ground :Lease which was recognized in fiscal year June 30, 2022 as a result of implementing GASB 87. An initial lease receivable was recorded in the amount of $5,994,302. As of June 30, 2024 the value of the lease receivable and deferred inflows was $5,831,427. The lessee is required to make monthly fixed payments of $12,657. The lease has an interest rate of 1.7050%. The City recognized lease revenue of $52,852 during the fiscal year. (8) Defined Benefit Pension Plans Plan Description: All qualified permanent and probationary employees are eligible to participate in the City of Bell Garden’s Safety and Miscellaneous Employee Pension Plans, cost-sharing multiple employer defined benefit pension plans administered by the California Public Employees’ Retirement System (CalPERS). Benefit provisions under the Plans are established by State statute and City of Bell Garden resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website. Benefits Provided: CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law. The Public Employees’ Pension Reform Act of 2013 (PEPRA) requires new benefits and member contributions for new members as defined by PEPRA, that are hired after January 1, 2013. These PEPRA members in pooled plans are reflected in the new Miscellaneous and Safety risk pools created by the CalPERS Board in response to the passage of PEPRA, beginning with the June 30, 2013, risk-pool valuations.

51 CITY OF BELL GARDENS NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (8) Defined Benefit Pension Plans (continued) The Plans’ provisions and benefits in effect at June 30, 2022, are summarized as follows: Miscellaneous Hire Date Prior to January 1, 2013 On or after January 1, 2013 Benefit formula 2.7% @ 55 2.0% @ 62 Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life Retirement age 50 - 55 52 – 67 Monthly benefits, as a % of eligible compensation 2.0% to 2.7% 1.0% to 2.5% Required employee contribution rates 7.96% 6.92% Required employer contribution rates 14.03% 10.32% Safety Hire Date Prior to January 1, 2013 On or after January 1, 2013 Benefit formula 3.0% @ 50 2.7% @ 57 Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life Retirement age 50 - 55 52 - 67 Monthly benefits, as a % of eligible compensation 3.00% 2.0% to 2.7% Required employee contribution rates 8.99% 8.95% Required employer contribution rates 25.64% 19.87% Contributions: Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for both Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City of Bell Gardens is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Contributions to the pension plans were $2,164,373 and $3,404,444 for the Miscellaneous and Safety plans, respectively, for the year ended June 30, 2024. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions - As of June 30, 2024, the City of Bell Gardens reported net pension liabilities for its proportionate shares of the net pension liability as follows:

52 CITY OF BELL GARDENS NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (8) Defined Benefit Pension Plans (continued) Proportionate Share of Net Pension Liability Miscellaneous $19,831,676 Safety 33,451,870 Total Net Pension Liability $53,283,546 The City of Bell Gardens’ net pension liability for each Plan is measured as the proportionate share of the net pension liability. The net pension liability of each of the Plans is measured as of June 30, 2022, and the total pension liability for each Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2021 rolled forward to June 30, 2022 using standard update procedures. The City of Bell Gardens’ proportion of the net pension liability was based on a projection of the City of Bell Gardens’ long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined. The City of Bell Gardens’ proportionate share of the net pension liability for each Plan as of June 30, 2022 and 2023 was as follows: Miscellaneous Safety Proportion – June 30, 2022 0.39122% 0.45201% Proportion – June 30, 2023 0.39660% 0.44752% Change – Increase (Decrease) 0.00538% (0.00449)% For the year ended June 30, 2024, the City of Bell Gardens recognized pension expense of $3,025,002 and $4,294,074 for the Miscellaneous and Safety plans, respectively. At June 30, 2023, the City of Bell Gardens reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Miscellaneous Deferred Outflows of Resources Deferred Inflows of Resources Pension contributions subsequent to measurement date $ 2,297,697 - Change in proportion 168,361 (545,130) Net difference in actual contributions vs. proportionate share of contributions 23,861 (294,028) Net difference between expected and actual experience 1,013,109 (157,158) Net differences between projected and actual earnings on plan investments 3,210,927 - Change in assumptions 1,197,328 - Total $ 7,911,283 (996,316)

53 CITY OF BELL GARDENS NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (8) Defined Benefit Pension Plans (continued) Safety Deferred Outflows of Resources Deferred Inflows of Resources Pension contributions subsequent to measurement date $ 3,454,382 - Change in proportion - (1,033,093) Net difference in actual contributions vs. proportionate share of contributions 199,041 (1,052,769) Net difference between expected and actual experience 2,455,984 (210,258) Net differences between projected and actual earnings on plan investments 4,577,880 - Change in assumptions 1,952,296 - Total $12,639,583 (2,296,120) $2,297,697 and $3,454,382 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2025 for the Miscellaneous and Safety plans, respectively. Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows: Year Ended June 30 Miscellaneous Safety 2025 $1,189,717 $1,699,293 2026 856,017 1,331,195 2027 2,479,401 3,730,816 2028 92,135 127,777 $4,617,270 $6,889,081

54 CITY OF BELL GARDENS NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (8) Defined Benefit Pension Plans (continued) Actuarial Assumptions – The total pension liabilities in the June 30, 2022 actuarial valuations were determined using the following actuarial assumptions: Miscellaneous Safety Valuation Date June 30, 2022 June 30, 2022 Measurement Date June 30, 2023 June 30, 2023 Actuarial Cost Method Entry-Age Normal Cost Method Entry-Age Normal Cost Method Actuarial Assumptions: Discount Rate 6.90% 6.90% Inflation 2.5% 2.5% Payroll Growth 3.0% 3.0% Projected Salary Increase Varies by Entry Age Varies by Entry Age Investment Rate of Return 7.5% (1) 7.5% (2) Mortality Varies (2) Varies (2) (1) Net of pension plan investment expenses, including inflation. (2) The mortality table used was developed based on CalPERS’ specific data. The table includes 20 years of mortality improvements using Society of Actuaries Scale BB. The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2016 valuation were based on the results of a actuarial experience study for the period 1997 to 2011. Further details of the Experience Study can be found on the CalPERS website. Change of Assumptions – In Fiscal Year 2022-23, demographic assumptions and the inflation rate were changed in accordance with the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate. Deferred outflows of resources and deferred inflows of resources for changes of assumptions represent the unamortized portion of the changes of assumptions related to prior measurement periods. Discount Rate – The discount rate used to measure the total pension liability was 6.90% for each plan. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at statutorily required rates, actuarially determined. Based on those assumptions, the plans’ fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability. The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

55 CITY OF BELL GARDENS NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (8) Defined Benefit Pension Plans (continued) In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses. The expected real rates of return by asset class are as follows: Asset Class (a) Assumed Asset Allocation Real Return (b)(c) Public Equity 18.0% 4.50% Fixed Income 45.0% 1.40% TIPS 20.0% 0.50% Commodities 3.0% 1.10% REITs 14.0% 3.70% Total 100.0% (a) Commodities and REITs are included in Public Equity; TIPS are included in fixed Income. (b) An expected inflation of 2.3% used for this period. (c) Figures are based on the 2021-22 Asset Liability Management study. Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate – The following presents the Bell Gardens’ proportionate share of the net pension liability for each Plan, calculated using the discount rate for each Plan, as well as what the Bell Garden’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate: Miscellaneous Safety 1% Decrease 5.90% 5.90% Net Pension Liability $29,449,853 $48,830,667 Current Discount Rate 6.90% 6.90% Net Pension Liability $19,831,676 $33,451,870 1% Increase 7.90% 8.15% Net Pension Liability $11,915,090 $20,878,609

56 CITY OF BELL GARDENS NOTES TO BASIC FINANCIAL STATEMENTS (Continued) (9) Other Post Employment Benefits (OPEB) Plan Description - In addition to the pension benefits described above, the City provides retiree health insurance benefits through a single employer defined benefit plan. In accordance with the plan, which was approved by the City Council, these benefits are available to all employees who are eligible for normal PERS retirement and who retire after January 1, 1990. The City pays for monthly medical, dental and vision premium. The portion paid is based on years of service at retirement. The plans vary based on date of hire and bargaining unit. Employee Covered – As of June 30, 2023 actuarial valuation, the following current and former employees were covered by the benefit terms under the plan: Active employees 160 Inactive employees or beneficiaries currently receiving benefits 75 Inactive employees entitled to, but not yet receiving benefits - Total 235 Contributions - Currently, the City funds retiree healthcare benefits on a pay-as-you-go basis. The City recognizes expenditure for its share of the annual premiums as these benefits become due. For fiscal year 2023-2024, the City paid $1,561,431 for benefits of 75 retired employees. Net OPEB Liability - The City of Bell Gardens net OPEB liability was measured as of June 30, 2024 and the total OPEB liability used to calculate the net OEPB liability was determined by an actuarial valuation date June 30, 2023 that was rolled forward to determine the June 30, 2024 total OPEB liability, based on the following actuarial methods and assumptions: Actuarial Assumptions: Discount Rate 3.65% Projected Salary Increase Salary Scale General Inflation 2.75% Mortality Varies (1) (1) The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2017 valuation were based on the results of a actuarial experience study for the period 1997 to 2011. Further details of the Experience Study can be found on the CalPERS website. Discount Rate – The discount rate used to measure the OPEB liability was 3.65 percent, using the average of 3-20 year municipal bond rate indices: S&P Municipal Bond 20 Year High Grade Rate Index, Bond Buyer 20-Bond GO Index, Fidelity GO AA 20 Year Bond Index.