Agenda packet — Bell Gardens City Council, April 14, 2025 (part 1 of 6)

CITY OF BELL GARDENS
AGENDA
City Council / Successor Agency to the Community Development Commission Joint Meeting
Monday, April 14, 2025, 6:00 PM
Agenda en Español

LOCATION: CITY COUNCIL CHAMBERS, 7100 GARFIELD AVENUE, BELL GARDENS, CA 90201 The meeting will be held at Bell Gardens City Hall in the Council Chambers. The public may attend the meeting in person or virtually as instructed below. You may view the meeting live on the City's website at https://www.bellgardens.org/i-want-to/watch-city-council-meetings.

Any person who requires a disability-related modification or accommodation, in order to observe and/or offer public comment may request such reasonable modification, accommodation, aid, or service by contacting the City Clerk's office by telephone at 562-806-7704 or via email to [email protected] no later than 72-hours before the scheduled meeting.

PUBLIC PARTICIPATION: The members of the public may address the City Council on any item listed on the agenda. Public comments are limited to three (3) minutes. Public comments for non-agenda items will be limited to a total of 30 minutes. Public comments can be made by any of the following ways:

IN-PERSON: Members of the public can provide in-person comments at the podium in the Council Chamber. The Council Chambers will have seating available for members of the public to attend the meeting in person, subject to capacity limits. Public comments are limited to (3) minutes per speaker, unless different time is announced by the presiding chair. Speakers who wish to address the City Council should do so by submitting a "Public Comment Card" by 5:00 pm.

BY TELEPHONE: Phone Number: (669)900-9128 Webinar ID: 813 3236 4343# Passcode: 2021# To address the City Council press *9 to raise your hand then *6 to unmute yourself when instructed.

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VIRTUALLY LIVE: Members of the public may participate via Zoom by https://zoom.us/join and entering the Zoom Meeting ID: 813 3236 4343 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: City Clerk's Office, 7100 Garfield Ave., Bell Gardens, CA 90201. To ensure distribution to the members of the City Council 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 City Council and will be part of the official public record of this meeting.

For more information, you may contact the City Clerk's office during regular business hours 7:30 a.m. to 6:00 p.m., Monday through Thursday at (562) 806-7704.

Page

1. CALL TO ORDER

2. INVOCATION

3. PLEDGE OF ALLEGIANCE

4. ROLL CALL OF CITY COUNCIL MEMBERS / SUCCESSOR AGENCY TO THE

COMMUNITY DEVELOPMENT COMMISSION MEMBERS
Marco Barcena, Councilmember / Agency Member
Isabel Guillen, Councilwoman/ Agency Member
Francis De Leon Sanchez, Councilwoman / Agency Member
Miguel De La Rosa, Mayor Pro Tem / Vice Chair
Jorgel Chavez, Mayor / Chair

5. PRESENTATION

5.1 Certificate of Recognition - Bell Gardens High School Wrestling Team

5.2 Certificate of Recognition - Vida Sana

5.3 Certificate of Recognition - For the 30 Years of Service - Lieutenant Aguirre

Page 2 of 976 ends

6. PUBLIC HEARING

6.1 Adoption of Resolution No. 2025-31 to Allocate Community Development Grant (CDBG) Funds to Program Years 2024-
2025 and 2025-2026 for the Veterans Park Restroom
Replacement Project

RECOMMENDATION: It is staff’s recommendation that the City Council conduct a public hearing on the City’s Community Development Block Grant (“CDBG”) FY2024-2025 unallocated funds and FY 2025-2026 estimated funds. Upon consideration of the public testimony and discussion of relevant issues, adopt the attached Resolution approving the direction of 2024-2025 and 2025-2026 CDBG funds for the Veterans Park Restroom Replacement Project.

CONCLUSION: It is staff’s recommendation that the City Council adopt the attached Resolution directing the City’s unallocated 2024- 2025 and estimated allocated 2025-2026 CDBG funds for the proposed project and submitting said Resolution to LACDA to complete the funding process and allow for project implementation.

FISCAL IMPACT: None.

ATTACHMENTS:

Exhibit 1 - Resolution No. 2025-31.docx

13 - 17

6.2 Consideration of an Ordinance No. 954 Amending Title 9 (Zoning and Planning Regulations) to Regulate Accessory Dwelling Units- Zoning Code Amendments No. 2024-075

RECOMMENDATION: It is staff’s recommendation that the City Council waive full reading and introduce Ordinance No. 954, by title only, amending Section 9.20.036 (Accessory Dwelling Units) of Chapter 9.20 (Special Uses and Applicable Standards) of Title 9 (Zoning and Planning) of the Bell Gardens Municipal Code (“BGMC”) regulating accessory dwelling units.

CONCLUSION: The adoption of Ordinance No. 954 is critical to comply with recently adopted state law promoting the construction of ADUs in areas zoned for residential and mixed-uses. ADUs play a crucial role in addressing the state’s housing crisis by providing flexible housing options within existing residential areas. Following state guidelines is necessary to ensure that local ADU regulations align with state goals to promote housing development, streamline the approval process, and support more housing options. Complying with state law and guidelines and policies focused at reducing barriers to housing development helps maintain consistency and facilitates construction of units in areas where they are needed.

It is recommended that the City Council waive full reading and 18 - 43

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introduce Ordinance No. 954, by title only, approving Ordinance No. 954 amending Title 9 (Zoning and Planning Regulations) BGMC.

FISCAL IMPACT: None
ATTACHMENTS:

Exhibit 1 - Ordinance No. 954

Exhibit 2 - March 19, 2025, Planning Commission Agenda Report

Exhibit 3 - Resolution #PC 2025-06

Exhibit 4 - Public Hearing Notice

7. PUBLIC COMMENTS ON NON-AGENDA ITEMS UNDER THE SUBJECT

MATTER JURISDICTION OF THE CITY COUNCIL / SUCCESSOR AGENCY During this time, the members of the public may address the City Council / Successor Agency regarding any items within the subject matter jurisdiction of the City Council / Successor Agency. Public comments are limited to 3 minutes per person subject to an overall 30-minute period for non-agenda items. Government Code Section 54590 prohibits the City Council / Successor Agency from taking action or engaging in discussion on a specific item unless it appears on the agenda.

8. PUBLIC COMMENTS ON AGENDA ITEMS ONLY
During this time, the members of the public may address the City Council / Agency Members regarding any items listed on the agenda. Public comments are limited to 3 minutes per person.

9. EXTERNAL COMMITTEES UPDATES

10. CITY MANAGER'S REPORT

11. CONSENT CALENDAR
All matters listed under the Consent Calendar are considered to be routine and can be acted on by one roll call vote. There will be no separate discussion of these items unless members of the City Council / Successor Agency request specific items to be removed from the Consent Calendar for separate action. Items called for separate discussion will be heard as the next order of business.

11.1 General Motion to Waive Full Reading and Approve
Ordinances by Title Only Pursuant to California Government Code Section 36934 with Support from the Majority of the Legislative Body.

RECOMMENDATION: To Approve Ordinances by Title Only.

CONCLUSION: Allowing ordinances to be read by title only, according to California State Law, will expedite the conduct of business at Council Meetings.
78

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FISCAL IMPACT: None
ATTACHMENTS: None

11.2 Approval Minutes of City Council/Successor Agency - Joint Meeting

RECOMMENDATION: It is staff's recommendation that the City Council approve the minutes of the March 24, 2025, City Council/Successor Agency Joint Meeting.

CONCLUSION: If approved, the minutes of the City Council/Successor Agency Joint Meeting will be archived in the City Clerk’s Office.

FISCAL IMPACT: None
ATTACHMENTS: Exhibit 1 - City Council / Successor Agency to the Community Development Commission Joint Meeting - Mar 24 2025 - Minutes

79 - 97

11.3 Warrant Register and Wire Transfer

RECOMMENDATION: It is staff's recommendation that the City Council receive and file the warrant registers, wire transfers, and net payrolls dated 03/18/2025, 03/20/2025, and 03/25/2025.

CONCLUSION: If the recommendation to the City Council is approved, then the warrant registers, wire transfers, and net payrolls dated 03/18/2025, 03/20/2025, and 03/25/2025.

FISCAL IMPACT:

Wa
rra
nt
regi
ste
r
03 /1
8/
20 25
194
554-
194
635
$1
,6
34 ,0
96 .4
1 Tot
al
Ban
k
$1
,6
34 ,0
96 .4
1 Wir
03 /2
205
6-
$2
85 98 - 118

Page 5 of 976 ends

e
Tra
nsf
er
0/
20 25
206
0 ,0
21 .3
6 Wa
rra
nt
regi
ste
r
03 /2
5/
20 25
194
636-
194
731
$9
54 ,9
47 .0
6 Tot
al
Ban
k
$1
,2
39 ,9
68 .4
2 Net
Pay
roll
tra
nsf
er
03 /0
6/
20 25
$5
39 ,4
35 .1
3 Tot
al
Vou
che
r
$1
,7
79 ,4
03 .5
5 Gra
nd
Tot
al
Vou
che
rs
$3
,4
13 ,4
99 .9
6 ATTACHMENTS: Exhibit 1- Warrant Register

11.4 Consideration of Ordinance No. 952 to Authorize a 119 - 623

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Development Agreement by and between the City of Bell
Gardens, Flora Hospitality Group, LLC and James N. Tate III Trust relating to the property located at 6638 Eastern Avenue in the City of Bell Gardens

RECOMMENDATION: It is staff’s recommendation that the City Council waive full reading and adopt Ordinance No. 952 to approve the proposed Development Agreement (DA) No. 2024-048 for a cannabis retail storefront at 6638 Eastern Avenue.

CONCLUSION: If approved, Ordinance No. 952 would become effective 30 calendar days after approval, in addition the operator and property owner must execute the agreement, and the operator must provide proof of insurance and submit the initial Annual Community Benefits payment of One Hundred Thousand Dollars ($100,000) to effectuate the benefits conferred by the development agreement withing 60 calendar days. The development agreement would ensure vested development rights in exchange for community benefits dedicated to revenue for youth programs, housing and homelessness issues, and other discretionary items. Therefore, staff recommends that the City Council conduct a second reading of Ordinance No. 952 and adopt the ordinance, which would permit a cannabis retail use at the Subject Site for an initial five (5)-year term, subject to an option to extend the term for an additional five (5) years, for a total 10-year term.

FISCAL IMPACT: If Ordinance No. 952 is approved, the Applicant would be required to make an up-front payment of $100,000 upon the effective date of the DA and renew the contribution annually following the execution of the DA every January (Annual Community Benefit). The Applicant would also be required to make quarterly contributions equal to seven percent (7%) of gross receipts (Quarterly Community Benefit). Pursuant to the DA terms, eighty percent (80%) of these funds would be dedicated to the City’s youth and recreational programming and the City’s housing programs. Under the DA, the Applicant would also be responsible for the cost of staff time spent on the negotiation and preparation of a development agreement and monitoring activities to ensure compliance with the DA, CUP, BGMC, and other applicable laws and regulations.

ATTACHMENTS:

Exhibit 1 - Ordinance No. 952 (Development Agreement No. 2024-048)

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Exhibit 2 - Development Agreement No. 2024-048

Exhibit 3 - Mar 24, 2025, City Council Agenda Report and Exhibits

Exhibit 4 - February 19, 2025, Planning Commission 2024-048 Staff Report and Exhibits

11.5 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

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.

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.

ATTACHMENTS:

Exhibit 1 - Resolution 2025-32

Exhibit 2- Lease Agreement

624 - 644

11.6 Consideration of a Resolution Authorizing a First Amendment to Contract Services Agreement with Kimble & Company Fire Protection Systems for Emergency Fire System Repairs at the Police Department and City Hall

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.

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 645 - 722

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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.

ATTACHMENTS:

Exhibit 1 - Resolution No. 2025-33

Exhibit 2 - First Amendment to Contract Services Agreement with Exhibits

11.7 Consideration of a Resolution Permitting a New Game Entitled “Mahjong”

RECOMMENDATION: It is staff's recommendation that the City Council adopt the attached Resolution permitting Parkwest Bicycle Casino to offer a new game entitled “Mahjong”.

CONCLUSION: Pursuant to Bell Gardens Municipal Code Chapter

5.25, the Parkwest Bicycle Casino has requested that the City Council adopt the attached Resolution approving the addition of the listed game. Once approved, this request will be forwarded to the California Division of Gambling Control for their records.

FISCAL IMPACT: No fiscal impact.

ATTACHMENTS:

Exhibit 1 - Resolution No. 2025-35

11.8 Consideration of a Resolution Approving a First Amendment to Contract Services Agreement with Javier Solorzano for Bell Gardens Community Murals

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

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.

ATTACHMENTS:

Exhibit 1 - Resolution No. 2025-36

Exhibit 2- First Amendment to Contract Services Agreement with 723 - 774

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Exhibits

11.9 Acceptance of Veterans Park Stormwater Improvements (CIP No. 3880) as Complete

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.

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,
600.0
0 Topographi
c Survey &
Geotechnic
al
Infiltration
Report
$
11,70

0.00 Constructio
n
Manageme
nt &
Inspection
$
55,23

0.00 Project
Manageme
nt
$
20,58

0.00 Funding
Administrat
ion
$
7,718
.00
775 - 777

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Constructio
n Costs
$
590,4

30.00 Additive
Bids
$
100,0

00.00 Change
Order No. 1
- 3
$
19,32

2.00 Quantity
Changes
$
16,54

9.05 Publication
& Misc.

Costs
$
1,225
.57
Final
Project
Costs
$
844,3

54.82 ATTACHMENTS: Exhibit 1 - Notice of Completion

12. DISCUSSION

12.1 Local Commission Appointment List

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.

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.

ATTACHMENTS: Exhibit 1- Local Commission Vacancies

778 - 779

12.2 Annual Comprehensive Financial Report for Fiscal Year 2023- 24 780 - 976

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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.

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.

ATTACHMENTS:

Exhibit 1 - FY 23-24 Annual Comprehensive Financial Report

Exhibit 2 - FY 23-24 Single Audit Report

Exhibit 3 - Communication Report

Exhibit 4 - Independent Accountants' Report

Exhibit 5 - Presentation

13. CITY COUNCIL / SUCCESSOR AGENCY MEMBER COMMENTS

14. ADJOURNMENT
Daisy Gomez, City Clerk
Agenda Posted on April 10, 2025

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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: John P. Ramirez, AICP, Interim Community Development Director SUBJECT: Consideration of a Resolution to Allocate Community Development Block Grant (CDBG) Funds for Program Years 2024-2025 and 2025- 2026 for the Veterans Park Restroom Replacement Project MEETING DATE: April 14, 2025
RECOMMENDATION:

It is staff’s recommendation that the City Council conduct a public hearing on the City’s Community Development Block Grant (“CDBG”) FY2024-2025 unallocated funds and FY 2025-2026 estimated funds. Upon consideration of the public testimony and discussion of relevant issues, adopt the attached Resolution approving the direction of 2024-2025 and 2025- 2026 CDBG funds for the Veterans Park Restroom Replacement Project.

BACKGROUND/DISCUSSION:

The City of Bell Gardens (“City”) participates in the U.S. Department of Housing and Urban Development's (“HUD”) CDBG Program through the Los Angeles County Development Authority (“LACDA”). Each year, CDBG funds are allocated to cities by HUD and administered through LACDA. Participating cities, whose total population is less than 50,000, participate in LACDA’s Los Angeles Urban County CDBG Program, and receive funding based upon the total number of cities participating in the County's program. CDBG funding is also based on a city's need to provide housing, economic and social services; and community development opportunities that principally benefit persons of low- and moderate-income levels, aid in the prevention of neighborhood deterioration, and meet other urgent community development needs due to natural disasters or other emergencies.

Pursuant to Federal requirements, notice of this public hearing was properly published and posted in public buildings within the City. Federal requirements also mandate that as part of the hearing, the Council and public be informed of the range of eligible housing and community development activities that may be funded under the CDBG program. Interested persons may obtain a copy of the Federal eligibility guidelines, available at the City of Bell Gardens Community Development Department, during regular business hours.

The City’s estimated CDBG allocation for Program Year 2025-2026 is approximately $501,411.

This is a planning estimate only; the LACDA will not release final appropriations from HUD until Spring 2025. The City's final CDBG allocation may be more or less than the planning estimate.

Generally, the final allocation is within 10% of the estimate provided. In FY 2024-2025, Bell Gardens’ CDBG allocation was $584,125, which has not been directed to a specific City project.

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This is the 50th year the City has participated in the Los Angeles Urban County's CDBG Program. To use the unallocated FY 2024-2025 CDBG fund balance and to continue its participation in the upcoming 51st program year, which begins on July 1, 2025, and ends on June 30, 2026, the City has prepared and submitted a proposed description of the Veterans Park Restroom Replacement Project to LACDA for review and approval. Adoption of this resolution is the City’s last step to finalize this process. Upon adoption of this resolution, LACDA will prepare final documents to allow the City to move forward with the proposed project.

For consideration, the combined sum of $1,085,567 would be directed towards the following project, to begin off-cycle for the Current Year 2024-2025 CDBG Program and continue into the Program Year 2025-2026:

Veterans Park Restroom Replacement: The proposed project funding will provide for design, architectural, engineering, construction management, and inspection costs for the demolition of the existing restroom and the construction of a new restroom at Bell Gardens Veterans Park, located at 6662 Loveland Street. CDBG funds will go towards personnel, non-personnel, and capital costs.

CONCLUSION:

It is staff’s recommendation that the City Council adopt the attached Resolution directing the City’s unallocated 2024-2025 and estimated allocated 2025-2026 CDBG funds for the proposed project and submitting said Resolution to LACDA to complete the funding process and allow for project implementation.

FISCAL IMPACT:

None.

APPROVALS:

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

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RESOLUTION NO. 2025-31

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BELL

GARDENS, CALIFORNIA, DIRECTING COMMUNITY DEVELOPMENT
BLOCK GRANT (CDBG) FUNDS FOR PROGRAM YEARS 2024-2025
AND 2025-2026 FOR THE VETERANS PARK RESTROOM

REPLACEMENT PROJECT
WHEREAS, on August 22, 1974, the Housing and Community Development Act of 1974 (the “Act”) was signed into law creating, among other things, the Community Development Block Grant (“CDBG”) Program, which is administered by the U.S.

Department of Housing and Urban Development; and
WHEREAS, the primary goals of the Act are the development of viable urban communities by providing decent housing and a suitable living environment, and expanding economic opportunities, principally for persons of low and moderate income through the CDBG Program; and
WHEREAS, the City receives CDBG funding through the Los Angeles County Development Authority’s (“LACDA”) Los Angeles Urban County CDBG Program, the amount received being based on the total number of cities participating in the County's program and each city's need to provide housing, economic and social services, and community development opportunities that principally benefit persons of low- and moderate-income; and
WHEREAS, the City of Bell Gardens currently has $584,126 in unallocated federal CDBG funds for the FY 2024-2025 and estimates receiving $501,411 in federal CDBG funds for the FY 2025-2026 to further the attainment Program goals; and WHEREAS, in adopting this Resolution, the City Council would direct the combined sum of $1,085,567 in CDBG funds towards the Veterans Park Restroom Replacement Project, to begin in the Current 2024-2025 CDBG Program Year and continue into the 2025- 2026 CDBG Program Year; and
WHEREAS, the City Council conducted a public hearing on April 14, 2025 to solicit comments and suggestions from the community for the utilization of these CDBG funds; and
WHEREAS, a public hearing notice for City Council Resolution No. 2025-31 was posted at City Hall, John Anson Ford Park, Veterans Park, the Department of Public Works, and published in the Bell Gardens Review on March 13, 2025.

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

SECTION 1.The City Council hereby finds and determines that the foregoing

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Resolution No. 2025-31
2 of 3
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 of Bell Gardens desires to fund eligible CDBG projects with FY 2024-2025 and FY 2025-2026 CDBG Program Funds.

SECTION 3.City staff is hereby directed to submit to Los Angeles County Development Authority and U.S. Department of Housing and Urban Development, through this document, the City’s intent to fund the Veterans Park Restroom Replacement Project with FY 2024-2025 and FY 2025-2026 CDBG Program Funds.

SECTION 4.City staff is hereby authorized to perform modifications to approved Project as required to conform to CDBG funding requirements and to provide for the expedient expenditure of funds.

SECTION 5. Notice of the public hearing was posted and advertised pursuant to applicable federal, state, and local laws.

SECTION 6. 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

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Resolution No. 2025-31
3 of 3
I, Daisy Gomez, City Clerk of the City of Bell Gardens, hereby CERTIFY that City Council Resolution No. 2025-31 was introduced and duly adopted at a regular meeting of the Bell Gardens City Council held on Monday, April 14, 2025 and was approved and passed by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:
_______________________________
Daisy Gomez, City Clerk

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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:John P. Ramirez, AICP, Interim Community Development Director SUBJECT:Consideration of Ordinance No. 954 Amending Title 9 (Zoning and Planning Regulations) to Regulate Accessory Dwelling Units – Zoning Code Amendment No. 2024-075
MEETING DATE:April 14, 2025
RECOMMENDATION:

It is staff’s recommendation that the City Council waive full reading and introduce Ordinance No. 954, by title only, amending Section 9.20.036 (Accessory Dwelling Units) of Chapter 9.20 (Special Uses and Applicable Standards) of Title 9 (Zoning and Planning) of the Bell Gardens Municipal Code (“BGMC”) to regulate accessory dwelling units.

BACKGROUND / DISCUSSION:

In California Government Code (Government Code) Section 66310, the State Legislature found and declared that, among other things, allowing Accessory Dwelling Units (“ADUs”) in zones that allow single-family and multifamily uses provides additional rental housing and is an essential component in addressing California’s housing needs. Over the years, state ADU law has been revised to improve its effectiveness at creating more housing units. Recent legislation has made certain portions of BGMC Title 9 (Zoning and Planning Regulations) (the “Zoning Code”) outdated.

On March 26, 2024, California Governor Gavin Newsom signed Senate Bill (“SB”) 477 to make state law governing ADUs and Junior ADUs (“JADUs”) easier to read and navigate.

SB 477 made non-substantive organizational changes that relocated numerous Government Code sections into a new chapter beginning with Government Code section 66310 et seq.

On September 19, 2024, California Governor Gavin Newsom signed SB 1211, which clarified the definition of “Livable Space,” prohibited replacement requirements for certain parking spaces, and increased the quantity of detached ADUs allowed on lots with an existing multifamily dwelling unit.

Additionally, on September 28, 2024, California Governor Gavin Newsom signed Assembly Bill (“AB”) 2533, which expands the opportunity to legalize a previously unpermitted ADU or JADU built before January 1, 2020, clarifies exceptions to this procedure, and imposes new noticing requirements on local agencies. Staff would like to

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note that since this Ordinance was presented to the Planning Commission an additional sentence was added to Section (E)(5) in the Ordinance to add clarification on this law.

On February 19, 2025, the Planning Commission held a duly noticed public hearing to review all facts and evidence pertaining to Ordinance No. 954. At the hearing, staff recommended the item be continued to further assess the Ordinance. The item was continued to the next regularly scheduled Planning Commission meeting of March 19, 2025.

At the regularly scheduled Planning Commission meeting of March 19, 2025, the Planning Commission held a duly noticed public hearing and afterwards adopted Resolution #PC 2025-06 (attached) recommending to the City Council approval of Zoning Code Amendment No. 2024-075 and adoption of Ordinance No. 954.

A public hearing notice for Ordinance No. 954 was posted at City Hall, John Anson Ford Park, Veterans Park, the Department of Public Works, and published in the Daily Journal Corporation responsible for the Bell Gardens newspaper on April 4, 2025.

The City must comply with the new state ADU and JADU law implemented under SB 477, SB 1211, and AB 2533. Ordinance No. 954 proposes to amend the BGMC Section

9.20.036 (Accessory Dwelling Units) to align with the state’s new legal framework concerning local regulation of ADUs.

Draft Ordinance No. 954:

The proposed Ordinance encourages the construction of ADUs by aligning with recently amended state law that promote ADU development. Furthermore, updated ADU provisions will allow staff to streamline the review process for ADU and JADU applications by providing clearer and more defined guidelines in compliance with state law.

Definitions
SB 1211 provides a new definition for “‘livable space to mean a space in a dwelling intended for human habitation, including living, sleeping, eating, cooking, or sanitation.” Replacement Parking
Government Code section 66314(d)(11) previously prohibited local agencies from requiring replacement of off-street parking spaces when a garage, carport or covered parking structure is demolished in conjunction with the construction of, or converted to, an ADU. SB 1211 amended this subsection to also prohibit local agencies from requiring replacement parking when an uncovered parking space is demolished for, or replaced with, an ADU.

Multifamily ADUs
Government Code section 66323(a)(4)(A) previously permitted lots with an existing or proposed multifamily dwelling to have up to two detached ADUs. Following SB 1211, lots with existing multifamily dwelling units may have up to eight (8) detached ADUs, or as many detached ADUs as there are primary dwelling units on the lot, whichever is less.

SB 1211 does not alter the number of ADUs that lots with proposed multifamily dwelling can have — they remain limited to two detached ADUs.

Unpermitted ADUs and JADs Built Before January 1, 2020

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Government Code section 66332 prohibits local agencies from denying a permit to legalize a previously unpermitted ADU on the basis the ADU violated applicable building, state, or local ADU laws. AB 2533 upholds this prohibition and expanded this section to include unpermitted JADs, and ADUs and JADUs built before January 1, 2020. The new law also requires local agencies to find a unit does not comply with standards in Health and Safety Code Section 17920.3 before denying a permit, requires local agencies to provide public notice of these new regulations, and outlines the scope of City inspections of unpermitted ADUs and JADUs.

General Plan Consistency
The General Plan’s Land Use Element Policy 2 emphasizes the City’s commitment to promote compatible residential development and ensure safe housing. Ordinance No. 954 would support ADU development in zones designated for residential use. The updated ADU standards would maintain existing residential standards, ensuring that ADUs remain compatible with primary dwelling units to support Policy 2.

The General Plan’s Housing Element Program 11 highlights the City’s recognition of the state’s commitment to promote the development of ADUs with a qualified objective of facilitating ADU construction. Adoption of Ordinance No. 954 would align the City’s ADU provisions and regulations with recently updated state guidelines to encourage ADU development while allowing the City to maintain its local standards. Ordinance No. 954 is therefore in accordance with Program 11.

The General Plan’s Housing Element Program 13 identifies that the City will evaluate development standards and procedures to ensure compliance with state laws. Ordinance No. 954 would revise ADU provisions to align with new state law. The proposed Ordinance No. 954 complies with a recently adopted law that promotes the development of ADU projects, fulfilling the intent of Program 13.

Zoning Consistency
Purpose
Ordinance No. 954 would amend the BGMC to align with the state’s simplified and reorganized references and language in regard to application processing, ADU density, clarified definitions, and ADU sales. Among other things the Ordinance will amend the allowable detached ADU density for properties with existing multifamily structures from two (2) detached ADUs to up to eight (8) detached ADUs or the number of standard dwelling units, whichever is less. The Ordinance also allows for legalization of previously unpermitted ADUs and JADUs.

Definitions
Ordinance No. 954 would also adopt the new definition for the term “Livable Space.” The definition aligns with the ADU state laws and development standards. Additionally, the definition of “Proposed Dwelling” and “Converted” is being introduced to clarify the criteria for an ADU application to be considered. Finally, the definition of “Public Transit” is being updated to specify which forms of transit are recognized as public.

ENVIRONMENTAL REVIEW:

In accordance with the California Environmental Quality Act (“CEQA”) (Pub. Res. Code § 21000 et seq.) and CEQA Guidelines (Cal. Code Regs., tit. 14, § 15000 et seq.),the City

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Council finds that Ordinance No. 954 is statutorily exempt from the requirements of CEQA pursuant to Section 21080.17 of the Public Resources Code, which provides that no CEQA provisions apply to the adoption of an ordinance to implement Section 65852.1 of, or Article 2 (commencing with Section 66314) or Article 3 (commencing with Section 66333) of Chapter 13 of Division 1 of Title 7 of, the Government Code concerning accessory dwelling units and junior accessory dwelling units.

CONCLUSION:

The adoption of Ordinance No. 954 is critical to comply with recently adopted state law promoting the construction of ADUs in areas zoned for residential and mixed-uses. ADUs play a crucial role in addressing the state’s housing crisis by providing flexible housing options within existing residential areas. Following state guidelines is necessary to ensure that local ADU regulations align with state goals to promote housing development, streamline the approval process, and support more housing options. Complying with state law and guidelines and policies focused at reducing barriers to housing development helps maintain consistency and facilitates construction of units in areas where they are needed.

It is recommended that the City Council waive full reading and introduce Ordinance No. 954, by title only, approving Ordinance No. 954 amending Title 9 (Zoning and Planning Regulations) BGMC.

FISCAL IMPACT: None.

APPROVALS:

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

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ORDINANCE NO. 954

AN ORDINANCE OF THE CITY OF BELL GARDENS, CALIFORNIA
AMENDING SECTION 9.20.036 (ACCESSORY DWELLING UNITS) OF CHAPTER 9.20 (SPECIAL USES AND APPLICABLE STANDARDS) OF TITLE 9 (ZONING AND PLANNING REGULATIONS) OF THE

BELL GARDENS MUNICIPAL CODE TO COMPLY WITH NEW STATE

LAW FOR ACCESSORY DWELLING UNITS AND JUNIOR ACCESSORY

DWELLING UNITS
WHEREAS, the City of Bell Gardens (the “City”) is a general law city, incorporated under the laws of the State of California; and WHEREAS, California Constitution Article XI, Section 7, enables cities to make and enforce local land use regulations; and
WHEREAS, on March 26, 2024, California Governor Gavin Newsom signed Senate Bill (“SB”) 477, which consolidated and relocated state Accessary Dwelling Unit (“ADU”) and Junior Accessary Dwelling Unit (“JADU”) law to Government Code section 66310 et seq. making it easier to read and navigate; and WHEREAS, on September 19, 2024, California Governor Gavin Newsom signed SB 1211, which defined “livable space,” prohibited parking space replacement requirements, and increased the maximum number of detached ADUs for lots with existing multifamily dwelling units from two to eight; and WHEREAS, SB 477 and SB 1211 supports the state’s commitment to encourage the construction of additional dwelling units and to provide more housing for California residents; and
WHEREAS, the City must comply with state ADU and JADU laws; and WHEREAS, this Ordinance would amend the City’s Zoning Code to implement and comply with the changes enacted by SB 477 and SB 1211; and WHEREAS, pursuant to California Government Code Sections 65854 and 65090, the Planning Commission conducted a duly noticed public hearing on February 19, 2025, but continued the public hearing to the next Planning Commission meeting on March 19, 2025; and
WHEREAS, pursuant to California Government Code Sections 65854 and 65090, the Planning Commission conducted a duly noticed public hearing on March 19, 2025; and
WHEREAS, the Planning Commission considered and reviewed all facts and evidence, both written and testimonial, and all other pertinent documents pertaining to this proposed Ordinance and Zoning Code Amendment No. 2024-075; and

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Ordinance No. 954
Page No. 2
WHEREAS, after the close of such public hearing, the Planning Commission adopted Planning Commission Resolution #2025-06 recommending to the City Council the approval of Ordinance No. 954; and
WHEREAS, a public hearing notice for City Council Ordinance No. 954 was posted at City Hall, John Anson Ford Park, Veterans Park, the Department of Public Works, and published in the Daily Journal Corporation responsible for the Bell Gardens newspaper on April 3, 2025.

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

SECTION 1. Findings and Purpose. In adopting this Ordinance, the City Council finds and declares as follows:
i. The above recitals are true, correct, and incorporated herein. ii. Ordinance No. 954 serves the public health, safety, and welfare of the residents within the City by facilitating the development of accessory dwelling units and junior accessory dwelling units for residential purposes. iii. Ordinance No. 954 is consistent with the City’s General Plan and state law. iv. Ordinance No. 954, amending the City of Bell Gardens Municipal Code, presents no risk to the public health and safety.

SECTION 2. Bell Gardens Municipal Code Title 9, Planning and Zoning, Chapter

9.20 “Special Uses and Applicable Standards,” Section 9.20.036 “Accessory Dwelling Units,” is amended below as a strikethrough for deletions and a double underline for additions and is enacted as follows:

In addition to compliance with all other applicable statutes, ordinances and regulations, the following regulations shall apply to accessory dwelling units:

A. Intent and Purpose. The intent of this section is to implement Sections 65852.2 and 65852.22 66310 through 66342 of the California Government Code (Government Code) and to establish standards to regulate the placement and design of accessory dwelling units in compliance with the Government Code.

B. Definitions. For purposes of this section the following terms and phrases shall be defined as described herein:
“Accessory dwelling unit” or “ADU” means an attached or a detached residential dwelling unit that provides complete independent living facilities for one or more persons and is located on a lot with a proposed or existing primary residence. It shall include permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel as the single-family or multifamily dwelling is or will be situated on. Accessory dwelling units may

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Ordinance No. 954
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include an efficiency unit as defined in Section 17958.1 of the Health and Safety Code or a manufactured home as defined in Section 18007(a) of the Health and Safety Code. An accessory dwelling unit shall not be considered in the calculation of density for the lot upon which it is located.
“Accessory structure” means a structure that is accessory and incidental to a dwelling located on the same lot.
“Converted” means creating an accessory dwelling unit or junior accessory dwelling unit within a single-family or multi-family dwelling or, creating an accessory dwelling unit or junior accessory dwelling unit in a non-livable structure or in the same space as a non- livable structure, such as the conversion of an attached or detached garage, or a portion thereof, to an accessory dwelling unit.
“Efficiency unit” means a dwelling unit with an occupancy by no more than two persons which has a minimum floor area of 150 square feet, and which may also have partial kitchen or bathroom facilities.
“Junior accessory dwelling unit” or “JADU” means a unit that is no more than 500 square feet in size, created entirely within the walls of a single-family dwelling located on a lot with no more than one only single-family dwellings. A junior accessory dwelling unit may include separate sanitation facilities or may share sanitation facilities with the existing structure. A junior accessory dwelling unit shall not be considered in the calculation of density for the lot upon which it is located.
“Livable space” means a space in a dwelling intended for human habitation, including living, sleeping, eating, cooking, or sanitation.
“Multifamily dwelling” means a structure with two or more attached dwellings on a single lot. Multiple detached single-unit dwellings on the same lot are not considered multifamily dwellings for the purpose of this section.
“Newly constructed” means the construction of new walls and roofs either attached to an existing dwelling unit or accessory structure or detached from an existing dwelling unit on a lot.
“Primary dwelling” means a residential structure on a single parcel with provisions for living, sleeping, eating, a single kitchen for cooking, and sanitation facilities. Where more than one residential structure exists on a lot, the “primary dwelling” will either be the residential structure that was first permitted.
"Public transit" means a location, including, but not limited to, a bus stop or train station, where the public may access buses, trains, subways, and other forms of transportation that charge set fares, run on fixed routes, and are available to the public. “Tandem parking” means two or more automobiles parked on a driveway, or in any other parking location on a lot, lined up behind one another.

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Ordinance No. 954
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C. Applicability. These regulations shall apply to all accessory dwelling units and junior accessory dwelling units in the city. In the event of a conflict between the provisions of this chapter and the California Government Code, the California Government Code shall take precedence.

D. Applications and Processing.

1. Applications to create a junior accessory dwelling unit or an accessory dwelling unit shall be ministerially processed and either approved or denied without discretionary review or a hearing within 60 days of receipt of a complete application. If the application is denied or deemed incomplete, the city will provide, within the 60-day review period, a complete list of the application's deficiencies and describe how the applicant can remedy the application.

2. If an application to create a junior accessory dwelling unit or an accessory dwelling unit is submitted with an application to create a single-family dwelling or multifamily dwelling on the same lot, the city shall not act upon the application to create a junior accessory dwelling unit or accessory dwelling unit until the entitlement application for the new single-family dwelling or multifamily dwelling is approved or denied. Once the entitlement application for the new single-family dwelling or multifamily dwelling has been approved or denied, the permit application for the junior accessory dwelling unit or accessory dwelling unit shall be ministerially processed and either approved or denied within 60 days. Occupancy of the junior accessory dwelling unit or accessory dwelling unit shall not be allowed until the city issues a certificate of occupancy for the primary dwelling unit.

3. The city shall grant a delay in processing if requested by the applicant, in which case the 60-day period is tolled for the period of the requested delay.

4. If the applicant applies for a demolition permit to demolish a detached garage or carport and a building permit to construct a detached accessory dwelling unit, the demolition permit and building permit for the detached accessory dwelling unit will be issued at the same time.

E. Permit Requirements. The following shall apply to all accessory dwelling units and junior accessory dwelling units in the city:

1. Accessory dwelling units and junior accessory dwelling units created within the existing walls and roof of a primary dwelling unit or accessory structure shall only require a building permit approval, with no further review by the director of community development, provided, that the proposed accessory dwelling unit or junior dwelling unit has independent exterior access, and the side and rear setbacks are sufficient for fire safety.

2. Newly constructed detached or attached accessory dwelling units shall be subject to ministerial approval of site plan review by the director of community development.

A site plan review application shall contain the following information:

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Ordinance No. 954
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a. A fully dimensioned site plan containing the following information:
i. Name and address of the applicant and of all persons owning any or all of the subject property.
ii. Address and assessor parcel number(s) of subject property. iii. Property dimensions and square footage of the subject property. iv. The use, location and size of all existing buildings and structures on the property and the proposed accessory dwelling unit, yards, driveways, access and parking areas, landscaping, walls or fences, and other similar features.
b. A fully dimensioned floor plan of the existing residence and the proposed accessory dwelling unit.
c. A roof plan for all existing and proposed structures. d. A set of fully dimensioned building elevations of all sides of all existing structures on the property and the proposed accessory dwelling unit.

3. Ministerial approval shall not be conditioned on correction of nonconforming zoning conditions.

4. When a permit application is submitted for a previously unpermitted accessory dwelling unit or junior accessory dwelling unit built before January 1, 2020, the applicant shall not be required to pay impact fees, connection, or capacity fees or charges except when utility infrastructure is required to comply with California Health and Safety Code Section 17920.3 or when the fee is authorized under California Government Code Section 66324(e).

5. When a permit application is submitted for a previously unpermitted accessory dwelling unit or junior accessory dwelling unit built before January 1, 2020, the City may inspect the unit for compliance with health and safety standards. If the unit is found noncompliant the applicant will not be penalized, and the City shall approve necessary permits to correct noncompliance with health and safety standards. As authorized under Government Code Section 66332, the City may only deny a permit application submitted under this subsection when the City makes a finding that the unit is noncompliant with any specified standard in Health and Safety Code Section 17920.3.

F. Standards of Development.

1. The following standards apply to all accessory dwelling units:

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Ordinance No. 954
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1a. General. The following standards apply to all accessory dwelling units:
ai. Any new landscaping shall comply with Chapter 9.34 BGMC, Landscaping.
bii. The exterior of an accessory dwelling unit shall match the existing primary or accessory structures on the lot in material, texture, paint color, trim, window, and door details.
ciii. The roof of the accessory dwelling unit shall match the roof of the existing primary dwelling unit or accessory structure in style, material, and color. div. All new mechanical equipment associated with the accessory dwelling unit shall be located on the ground no less than three feet from the side and rear property lines. Any existing equipment located on the roof or exterior walls of the existing single-family dwelling unit, multi-family dwelling unit or accessory structure shall be provided with a decorative screen to shield such equipment from view and shall be placed at least six inches below the top of the lowest building parapet or decorative screen. No plumbing line shall be placed upon the exterior wall of a structure unless such line is enclosed or otherwise screened from view.
2b. Maximum Number of Dwelling Units. Applicants may propose any of the following within a residential or mixed-use zone: Only one type of dwelling unit listed in the subsections below shall be permitted. At no time shall any of the dwelling units described in the subsections below be combined:
a. Single-Family Dwellings. The following is permitted on a lot with an existing or proposed single-family dwelling:
i. One new or converted, attached or detached accessory dwelling unit that meets the building standards in Section (3) or one accessory dwelling unit within the proposed or existing space of the single- family dwelling or accessory structure with independent exterior access and sufficient fire and safety side and rear set-backs; and ii. One junior accessory dwelling with independent exterior access and sufficient fire and safety side and rear set-backs. b. Multi-family Dwellings. Accessory dwelling units may be permitted on a parcel with an existing or proposed multifamily dwelling, as specified, and must comply with Section (3), below:
i. one new or converted, attached, or detached accessory dwelling unit that meets the building standards in Section (3). This subsection (i). shall not to be combined with subsections (ii), (iii), or (iv) below.

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Ordinance No. 954
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ii. One accessory dwelling unit within an existing multifamily dwelling and multiple accessory dwelling units within the portions of an existing multifamily dwelling that are not used as livable spaces, including but not limited to storage rooms, boiler rooms, passageways, attics, basements, or garages, up to twenty-five percent (25%) of the existing number of multifamily dwellings units or one, whichever is greater. All units must comply with state building standards.
iii. Not more than eight detached accessory dwelling units, or an amount equal to the number of units within an existing multifamily dwelling.
iv. Not more than two detached accessory dwelling units on a lot with a proposed multifamily dwelling.
c. Accessory dwelling units shall not be rented for less than thirty-one (31) days.
i. Converted accessory dwelling unit on lots with single-family dwelling:
only one accessory dwelling unit and/or one junior accessory dwelling unit on a lot with a proposed or existing single-family dwelling on it, where the accessory dwelling or junior accessory dwelling unit:
(A) Is either: within the space of a proposed single-family dwelling; within the existing space of an existing single-family dwelling; or within the existing space of an accessory dwelling.
(B) Has exterior access that is independent of that for the single- family dwelling.

Lots with multiple detached single-family dwellings are not eligible to have a junior accessory dwelling unit.
ii. New accessory dwelling unit on lots with single-family dwelling: one newly constructed detached accessory dwelling unit on a lot with a proposed or existing single-family dwelling, in addition to any junior accessory dwelling unit that might otherwise be established on the lot under subsection (E)(1)(b)(i) of this section.
iii. Converted accessory dwelling unit on lots with multifamily dwellings:
multiple accessory dwelling units within portions of existing multifamily dwelling structures that are not used as livable spaces, including but not limited to storage rooms, boiler rooms, passageways, attics, basements, or garages, may be converted into an accessory dwelling unit they comply with the state building standards for dwellings. Only one converted accessory dwelling unit is allowed within an existing multifamily dwelling

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Ordinance No. 954
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and additional accessory dwelling units up to 25 percent of the existing multifamily structures.
iv. New accessory dwelling unit on lots with multifamily dwellings: no more than two detached new accessory dwelling units may be located on a lot that has an existing multifamily dwelling structure.
3c. Development Standards Matrix – Newly Constructed Accessory Dwelling Units.

1. The maximum square footage for an attached or detached ADU shall be 850 square feet for an ADU that is a studio or one bedroom and 1,000 square feet for an ADU with two bedrooms or more.

2. The total square footage of an attached ADU shall not exceed 50 fifty percent (50%) of the existing or proposed primary dwelling., if it doesn’t prevent an accessory dwelling unit of at least 800 square feet (or at least 1,000 square feet for ADUs with more than one bedroom)..

3. An accessory dwelling unit created within the existing or proposed space of a single-family dwelling or accessory structure cannot be expanded beyond 150 square feet of the same physical dimensions of the structure. Extensions beyond the physical dimensions of the structure will be limited to only allow for ingress and egress Maximum floor area standards shall apply.

Maximum
Floor Area

4. An accessory dwelling unit created within the existing accessory structure may be expanded beyond the physical dimensions of the structure, up to 150 square feet without application of development standards.

Minimum
Floor Area
150 sq. ft.

Location 1. Accessory dwelling units are permitted by right in all areas zoned for residential and mixed-use.1
First Story
Setbacks
Side2 4'
Streetside2 4'
Rear2 4'

1. Per BGMC 9.46.050Allowable
Projections 2. The stairway access to a second floor shall be interior. However, exterior stairway access to the second floor may be permitted when it is not readily visible from the street. The location and the design of the stairway shall be architecturally integrated into the design of the accessory dwelling unit.

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Ordinance No. 954
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Maximum
Height

1. For attached ADUs only, 25' feet in total combined height or the height limitation that applies to the primary dwelling, whichever is lower.

Accessory dwelling units shall not exceed two stories. of existing structure and accessory dwelling unit.

2. 16 feet in height for detached accessory dwelling units on lots with existing or proposed single family or multifamily dwelling units.

3. 18 feet in height for detached accessory dwelling units on lots with existing or proposed single family or multifamily dwelling units within one-half of one mile walking distance from a major transit stop or high- quality transit corridor. Up to two additional feet is permitted to accommodate a roof pitch for accessory dwelling units aligned with the roof pitch of the primary dwelling.

4. 18 feet in height for a detached accessory dwelling unit on a lot with an existing or proposed multifamily, multistory dwelling.

Minimum
Building
Separation
10' feet between dwelling units
6' feet between accessory structures (non-livable)

1. One space per accessory dwelling unit or each bedroom within the accessory dwelling unit, whichever is less.

2. Parking may be configured as tandem parking or within the rear or side setback area of a lot.

3. Parking and/or replacement parking is not required for any accessory dwelling unit when located:
a) It’s wWithin one-half mile walking distance of public transit; or b) It’s wWithin an architecturally and historically significant historic district; or
c) It’s wWithin a proposed or existing primary residence or an accessory structure; or
d) It’s iIn an area where on-street parking permits are required but not offered to the occupant of the accessory dwelling unit; or e) It’s iIn an area where a car share vehicle is located within one block of the accessory dwelling unit.
f) A permit application for an accessory dwelling unit is submitted with a permit application to create a new single-family dwelling or a new multifamily dwelling on the same lot, and the accessory dwelling unit or the parcel satisfies any other criteria listed in this subdivision (3).

Parking

4. When a garage, carport, or covered, or uncovered parking space structure is demolished in conjunction with the construction of an accessory dwelling unit or converted to an accessory dwelling unit, the off-street parking spaces do not have to be replaced. However, all portions of any existing driveway shall remain, except to the extent that the driveway becomes blocked by a new habitable livable structure.

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1. Residential or mixed-use zone should be construed broadly to mean any zone where residential uses are permitted by-right or by conditional use permit.

2. All exterior walls shall be in compliance with Building Code. 4d. Exemptions.
a. Development standards listed in this section shall not be applicable if their application prevents the creation of an ADU at least 800 square feet with a of an allowable height of at least 16 feet and four-foot side and rear yard setbacks.
b. No setbacks are required where an ADU is created by converting any portion of an existing living area, accessory structure, or a structure constructed in the same location and to the same dimensions as an existing structure.

G. Junior Accessory Dwelling Units.

1. The following standards apply to the establishment of junior accessory dwelling units. Junior accessory dwelling units will typically be smaller than an accessory dwelling unit and will shall be constructed entirely within the walls of an existing or proposed single-family dwelling.
a. Number. Only one junior accessory dwelling unit is permitted per residential zoned lot for single-family residences.
ba. Size. A junior accessory dwelling unit shall not exceed 500 square feet in size. Junior accessory dwelling units may not be expanded beyond the existing square footage of the space within the dimensions of the existing or proposed single-family dwelling.
cb. Owner Occupancy. The owner of a parcel proposed for a junior accessory dwelling unit shall occupy as a primary residence either the primary dwelling or the junior accessory dwelling as their primary residence. Owner occupancy is not required if the owner is a governmental agency, land trust, or “housing organization” as that term is defined in Government Code Section 65589.5(k)(2), as that section may be amended from time to time. dc. Sale Prohibited. A junior accessory dwelling unit shall not be sold independent of the primary dwelling on the parcel.
ed. Short-Term Rentals. The A junior accessory dwelling unit shall not be rented for periods less than 31 days.
e. Location. A junior accessory dwelling unit shall be entirely within a legal single-family residence. As such, the structure in which the junior accessory

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Ordinance No. 954
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dwelling unit is located must be in a zone that allows single-family dwellings, and must comply with all development requirements (e.g., architectural, historic preservation) otherwise applicable to the primary dwelling. Junior accessory dwelling units shall not be located in an accessory structure with the exception of an attached garage.
f. Access. A junior accessory dwelling unit shall be provided with a separate exterior entrance, independent of the primary dwelling. g. Sanitation Facilities. Junior accessory dwelling units may share sanitation facilities with the existing single-family structure. In the case of shared sanitation facilities, an interior entry to the accessory dwelling unit from the main living area of the primary residential structure shall be provided. h. Kitchen Requirements. The Jjunior accessory dwelling units shall include an efficient kitchen, including a cooking facility with appliances, a food preparation counter and storage cabinets that are reasonable size in relation to the size of the junior accessory dwelling unit.
i. Parking. No additional parking is required beyond that already required for the primary dwelling.
j. Fire Protection – Utility Service. For the purposes of any fire or life protection ordinance or regulation, or for the purposes of providing service for water, sewer, or power, a junior accessory dwelling unit shall not be considered a separate or new unit, unless the junior accessory dwelling unit was constructed in conjunction with a new single-family dwelling. No separate connection between the junior accessory dwelling unit and the utility shall be required for units created within a single-family dwelling unless the junior accessory dwelling unit is being constructed in connection with a new single-family dwelling. k. Deed Restriction. Prior to the finalization of the building permit for a junior accessory dwelling unit, the owner shall record a deed restriction in a form approved by the city that includes a prohibition on the sale of the junior accessory dwelling unit separate from the sale of the single-family residence and restricts the size and attributes of the junior dwelling unit to those that conform with this section.

H. Occupancy.

1. Owner occupancy is required for any accessory dwelling unit constructed subject to a building permit issued after January 1, 2025. Subject to this subsection, property owners must either occupy the primary dwelling or the accessory dwelling unit as their permanent home and principal residence. A violation of this subsection will result in revocation of the ADU permit.

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2. Should a property have both an accessory dwelling unit and junior accessory dwelling unit, owner occupancy is required for the newly created junior accessory dwelling unit constructed subject to a building permit issued after January 1, 2020. Subject to this subsection, property owners must either occupy the primary dwelling or the junior accessory dwelling unit as their permanent home and principal residence. A violation of this subsection will result in the revocation of the junior accessory dwelling unit permit.

31. Any accessory dwelling unit or junior accessory dwelling unit shall not be rented for periods less than 31 days. junior accessory dwelling unit shall not be rented out for less than 31 consecutive calendar days.

IH. Sale and Rental of Junior Accessory Dwelling Units and Accessory Dwelling Units.

Junior accessory dwelling units shall not be sold separately from the primary dwelling unit. However, an accessory dwelling unit may be sold or conveyed separately from the primary residence to a qualified buyer, as that term is defined in Government Code Section 66340(a), if the accessory dwelling unit and the transaction meet all the requirements under Government Code Section 66341.

I. Utilities and Impact Fees.

1. All utility extensions shall be placed underground.

2. Except as provided in subsection (3) below, an accessory dwelling unit or junior accessory dwelling unit proposed with a new single-family dwelling may be required to have a new or separate utility connection, including a separate sewer lateral, and separate water and electric meters, between the accessory dwelling unit and the utility and, and shall be subject to a connection fee or capacity charge proportionate to the accessory dwelling unit’ square footage or its drainage fixture unit (DFU) values.

3. Junior accessory dwelling units and accessory dwelling units within or on a lot with an existing single-family dwelling unit are exempt from any requirement to install a new or separate utility connection and to pay any associated connection or capacity fees or charges.

4. Impact fees imposed on accessory dwelling units shall be proportionate to the square footage of the primary dwelling unit. No impact fees may be imposed on a junior accessory dwelling unit or accessory dwelling unit that is less than 750 square feet in size. For purposes of this section, impact fees do not include utility connection fees or capacity charges.

SECTION 3. In accordance with the California Environmental Quality Act (“CEQA”) (Pub. Res. Code § 21000 et seq.) and CEQA Guidelines (Cal. Code Regs., tit. 14, § 15000

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Ordinance No. 954
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et seq.),the City Council finds that Ordinance No. 954 is statutorily exempt from the requirements of CEQA pursuant to Section 21080.17 of the Public Resources Code, which provides that no CEQA provisions apply to the adoption of an ordinance to implement Section 65852.1 of, or Article 2 (commencing with Section 66314) or Article 3 (commencing with Section 66333) of Chapter 13 of Division 1 of Title 7 of, the Government Code concerning accessory dwelling units and junior accessory dwelling units.

SECTION 4. If any section, subsection, sentence, clause, phrase, or portion of this Ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have adopted this Ordinance, and each section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, or portions might subsequently be declared invalid or unconstitutional.

SECTION 5. The City/Deputy Clerk shall send a copy of this Ordinance to the Department of Housing and Community Development within sixty (60) days after adoption, as required by Government Code Section 66326(a).

SECTION 6. The City Clerk shall certify the passage and adoption of this Ordinance, causing it to be posted as required by law, and it shall be effective thirty (30) days after its adoption.

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

THE CITY OF BELL GARDENS

Jorgel Chavez, Mayor
APPROVED AS TO FORM: ATTEST:

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Ordinance No. 954
Page No. 14

Stephanie Vasquez Daisy Gomez
City Attorney City Clerk
I, Daisy Gomez, City Clerk of the City of Bell Gardens, hereby CERTIFY that City Council Ordinance No. 954 was introduced and placed upon its first reading at a regular meeting of the Bell Gardens City Council held on ________________, 2025 and that thereafter said Ordinance was duly adopted at a regular meeting of the Bell Gardens City Council held on Monday, ________________, 2025 and was approved and passed by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:
_______________________________
Daisy Gomez, City Clerk

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CITY OF BELL GARDENS

COMMUNITY DEVELOPMENT DEPARTMENT

AGENDA REPORT
TO:Honorable Chair and Members of the Planning Commission FROM:Mona Mossayeb, Acting City Planner
BY:Adrian Flores, Associate Planner
SUBJECT:Consideration of Ordinance No. 954 Amending Title 9 (Zoning and Planning Regulations) To Regulate Accessory Dwelling Units – Zoning Code Amendment No. 2024-075
DATE:March 19, 2025
RECOMMENDATION: It is recommended that the Planning Commission:

1.Find proposed Ordinance No. 954 statutorily exempt from the provisions of the California Environmental Quality Act (“CEQA”) pursuant to Public Resources Code Section 21080.17, which provides that no CEQA provisions apply to the adoption of an ordinance to implement sections of the Government Code concerning accessory dwelling units and junior accessory dwelling units; and

2.Adopt Resolution #PC 2025-06 recommending to the City Council approval of Zoning Code Amendment (“ZCA”) No. 2024-075 and adoption of Ordinance No. 954 amending the Bell Gardens Municipal Code (“BGMC”) Section 9.20.036 (Accessory Dwelling Units) of Chapter 9.20 (Special Uses and Applicable Standards) of Title 9 (Zoning and Planning Regulations).

BACKGROUND / DISCUSSION:

In California Government Code (Government Code) Section 66310, the State Legislature found and declared that, among other things, allowing Accessary Dwelling Units (“ADUs”) in zones that allow single-family and multifamily uses provides additional rental housing and is an essential component in addressing California’s housing needs. Over the years, state ADU law has been revised to improve its effectiveness at creating more housing units. Recent legislation has made certain portions of BGMC Title 9 (Zoning and Planning Regulations) (the “Zoning Code”) outdated.

On March 26, 2024, California Governor Gavin Newsom signed Senate Bill (“SB”) 477 to make state law governing ADUs and Junior ADUs (“JADUs”) easier to read and navigate.

SB 477 made non-substantive, organizational changes that relocated numerous Government Code sections into a new chapter beginning with Government Code section 66310 et seq.

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PROJECT DESCRIPTION:

The City must comply with new state ADU and JADU law implemented under SB 477 and SB 1211. Ordinance No. 954 proposes to amend the BGMC Section 9.20.036 (Accessory Dwelling Units) to align with the state’s new legal framework concerning local regulation of ADUs.

Draft Ordinance No. 954:

SB 1211 does not alter the number of ADUs that lots with proposed multifamily dwelling can have — they remain limited to two detached ADUs.

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The General Plan’s Housing Element Program 13 identifies that the City will evaluate development standards and procedures to ensure compliance with state laws. Ordinance No. 954 would revise ADU provisions to align with new state law. The proposed Ordinance No. 954 complies with recently adopted law that promotes the development of ADU projects, fulfilling the intent of Program 13.

Zoning Consistency
Purpose
Ordinance No. 954 would amend the BGMC to align with the state’s simplified and reorganized references and language in regards to application processing, ADU density, clarified definitions, and ADU sales. Among other things the Ordinance will amend the allowable detached ADU density for properties with existing multifamily structures from two (2) detached ADUs to up to eight (8) detached ADUs or the number of standard dwelling units, whichever is less.

ENVIRONMENTAL REVIEW:

In accordance with the California Environmental Quality Act (“CEQA”) (Pub. Res. Code § 21000 et seq.) and CEQA Guidelines (Cal. Code Regs., tit. 14, § 15000 et seq.),the City Council finds that Ordinance No. 954 is statutorily exempt from the requirements of CEQA pursuant to Section 21080.17 of the Public Resources Code, which provides that no CEQA provisions apply to the adoption of an ordinance to implement Section 65852.1 of, or Article 2 (commencing with Section 66314) or Article 3 (commencing with Section 66333) of Chapter 13 of Division 1 of Title 7 of, the Government Code concerning accessory dwelling units and junior accessory dwelling units.

CONCLUSION:

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It is recommended that the Planning Commission adopt Resolution #PC 2025-06, recommending to the City Council approval of Zoning Code Amendment No. 2024-075 and adoption of Ordinance No. 954.

FISCAL IMPACT: None.

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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:Paul Camacho, Police Chief
SUBJECT:Consideration of a Resolution Permitting a New Game Entitled “Mahjong”
MEETING DATE:April 14, 2025
RECOMMENDATION:

It is staff's recommendation that the City Council adopt the attached Resolution permitting Parkwest Bicycle Casino to offer a new game entitled “Mahjong”.

BACKGROUND / DISCUSSION:

Parkwest Bicycle Casino is a card club licensed under Chapter of 5.25 of the Bell Gardens Municipal Code. Per Section 5.25.150(B) of the BGMC, Parkwest Bicycle has a desire to add a new game, entitled Mahjong, to its existing list of approved games. On April 9, 2025, the State of California Department of Justice Division of Law Enforcement Bureau of Gambling Control approved Parkwest Bicycle Casino’s request to offer the game Mahjong for play, provided that they first obtain authorization from the City Council by way of an adopted resolution.

The Bell Gardens Police Department has reviewed Parkwest Bicycle Casino’s request to offer the game of Mahjong along with the existing rules. This card game is not specifically banned under § 330 of the Penal Code.

CONCLUSION:

Pursuant to Bell Gardens Municipal Code Chapter 5.25, the Parkwest Bicycle Casino has requested that the City Council adopt the attached Resolution approving the addition of the listed game. Once approved, this request will be forwarded to the California Division of Gambling Control for their records.

FISCAL IMPACT:

No fiscal impact.

APPROVED ELECTRONICALLY BY:

Michael B. O'Kelly, City Manager

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Stephanie Vasquez, City Attorney
Manuel Carrillo, Director of Finance and Administrative Services

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RESOLUTION NO. 2025-35

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BELL

GARDENS, CALIFORNIA , PERMITTING PARKWEST BICYCLE
CASINO TO OFFER A NEW GAME ENTITLED “MAHJONG”
WHEREAS, pursuant to Section 5.25.150(B) (Unlawful Acts) of Chapter 5.25 (Card Club License Regulations) of Title 5 (Business Licenses, Regulations and Taxes) of the Bell Gardens Municipal Code, the City Council may, by resolution, authorize the playing of games which are not otherwise prohibited by California law, in card clubs licensed under Chapter 5.25 (Card Club License Regulations) of Title 5 (Business Licenses, Regulations and Taxes) of the BGMC; and WHEREAS, Parkwest Bicycle Casino is a card club licensed under Chapter

5.25 (Card Club License Regulations) of Title 5 (Business Licenses, Regulations and Taxes) of the BGMC, which operates in the City of Bell Gardens; and WHEREAS, management for the Parkwest Bicycle Casino has requested authorization to offer “Mahjong” game (“Game”) in accordance with Section

5.25.150(B) (Unlawful Acts) of Chapter 5.25 (Card Club License Regulations) of Title 5 (Business Licenses, Regulations and Taxes) of the BGMC; and WHEREAS, on A pril 9, 2025, the State of California Department of Justice Division of Law Enforcement Bureau of Gambling Control approved Parkwest Bicycle Casino’s request to offer the Game for play, provided that they first obtain authorization from the City Council by way of an adopted resolution; and WHEREAS, the Bell Gardens Police Department has additionally conducted an independent review of the Game and based on all pertinent information, recommends that the City Council adopt a resolution authorizing the Game to be played at card clubs licensed under Chap ter 5.25 (Card Club License Regulations) of Title 5 (Business Licenses, Regulations and Taxes) of the BGMC, subject to State and City of Bell Gardens limitations.

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

SECTION 1. The City Council, after con sideration of the staff report , accompanying presentation, discussion, oral testimony and evidence provided, hereby finds that the above recitals are true and correct and incorporate them herein.

SECTION 2. The City Council hereby authorizes Parkwest Bicycle Casino to offer the “Mahjong” game to be played in accordance with the game rules attached hereto as Exhibit “A.” This approval is subject to, and conditioned on, compliance by Parkwest Bicycle Casino with all conditions imposed on the playing of “Mahjong” game set forth by other authorities regulating gambling in the State or City of Bell Gardens.

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Resolution No. 2025-35
2 of 3
SECTION 3. In the event that the Chief of Police or City Prosecutor determine that the playing of the “Mahjong” game violates any provisions of the California Penal Code, the Chief of Police shall provide written notice to all licensees, cancelling or modifying the approval of the “Mahjong” to conform to with the California Penal Code.

Upon receipt of written notice, all licensees shall conform to offer playing of the “Mahjong” game pursuant to the requirements set forth in the notice.

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 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

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Resolution No. 2025-35
3 of 3
EXHIBIT “A”

GAME RULES

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Mahjong
Parkwest Bicycle Casino 1
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Type of Game
The players of Mahjong play against each other for the “pot” of money on the table. The game does not utilize a player-dealer position, it is a poker game. The gambling enterprise does not participate in the actual play of the game and has no interest in the outcome of the play.

Object of the Game
The object of Mahjong is to build a complete set of tiles known as a "Mahjong." A Mahjong hand is composed of any combination of four sets (see below) and a Pair as well as get the highest possible point value. Sets can be comprised of either a Pung, Chow, or Kong as described below. Players take turns drawing and discarding tiles in an effort to complete their Mahjong. The first player to complete their Mahjong declares victory and scores points based on the specific tiles in their set.

Description of the Deck and Number of Decks Used
Mahjong is played with 144 Chinese dominoes or ‘tiles’.

These tiles are divided into different suits and categories. The breakdown of tiles in a standard Mahjong set is as follows:
36 of the 144 tiles are called Character tiles which are comprised of 4 sets of 9 tiles numbered 1 through 9. The picture on each tile shows the Chinese symbol for the number represented. 1 2 3 4 5 6 7 8 9
36 of the 144 tiles are called Bamboo tiles which are comprised of 4 sets of 9 tiles numbered 1 through 9. The picture on each tile shows the appropriate number of bamboos. 1 2 3 4 5 6 7 8 9
36 of the 144 tiles are called Dot/Circle tiles which are comprised of 4 sets of 9 tiles numbered 1 through 9. The picture on each tile shows the appropriate number of circles. 1 2 3 4 5 6 7 8 9
12 of the 144 tiles are called Cardinal tiles, also referred to as Dragon or Special Honor Pieces, which are comprised of 3 sets of 4 tiles. 4 Red Dragon tiles are denoted by a bright red character. 4 Green Dragon tiles are denoted by a bright green character. 4 White Dragon tiles are which are traditionally denoted by a completely blank tile or a tile with a black border.

Red Green White

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16 of the 144 tiles are called Directional/Wind tiles which are comprised of 4 sets of 4 tiles and represent the four directions of North, West, South, and East. The picture on each tile shows the Chinese symbol for the represented direction.

East South West North

4 of the 144 tiles are called Flower tiles which are comprised of 1 set of 4 tiles they give bonus points when drawn. Depiction of the flowers varies hugely between sets but the most common traditionally are Plum blossom, Orchid, Chrysanthemum and Bamboo.

Plum Orchid (Lily) Chrysanthemum Bamboo

4 of the 144 tiles are call Season tiles which are comprised of 1 set of 4 tiles and they give bonus points when drawn. Depiction of the seasons varies hugely between sets and they are often not recognizable as a season by people who can't read Chinese.

Spring/Fisher Summer/Woodcutter Autumn/Farmer Winter/Scholar

When drawn, Flower and Season tiles are immediately declared and a substitute tile is drawn.

Flower(s) or Season(s) that correspond to the player's Wind will increase the score.

Flower/Season and Wind Representation
Number Flower Season Corresponding Wind
1 Plum

Spring/Fisher

East
2 Orchid (Lily)

Summer/Woodcutter

South
3 Chrysanthemum

Autumn/Farmer

West
4 Bamboo

Winter/Scholar

North

In addition to the tiles, three dice are required.

Four racks are used to hold each players’ tiles.

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Tile Values and Hand Rankings
The value of a hand is based on both the numeric and symbolic ranking of the tiles as shown above. The primary aim of the game is to collect such tiles that allow a player to call “Mahjong” (which ends the game), and score points based on the tiles in the player’s Mahjong hand. In order to do this, a player must achieve one of the following:

• A pair; and 4 Pongs, Kongs, or Chows; and/or,
• A scoring hand (shown in How Winners are Determined and Paid)

Basic Tile Combinations
Hand Description Example
Pong

A set of three identical tiles

Chow
A set of three same-suit consecutive tiles. A
chow does not score on its own and is used
to contribute to a hand to call a Mahjong.

Kong

A set of four identical tiles

Pair

A set of two identical tiles

Description of Table Used and Total Number of Seated Positions The game shall be played on a table that accommodates four players. A standard table is around 36 inches to 40 inches in width and the height is 30 inches from the ground. The table has a raised border along the edges to prevent tiles from falling off during the game. The table has built-in drawers or racks on each side to store the tiles when not in use. The table has a built-in mechanical dice cup and a mechanical shuffling machine that shuffles and arranges the tiles automatically.

Within each betting area for each seated position there shall be a single betting space specifically designated for players to place their wager. Each player’s stack of chips acts as their wager, which is referred to as table stakes. Therefore, each player’s stack of chips on the table shall be eligible to be won or lost during each round of play. A player is required to initially buy- into a game at the start of each new game.

Dealing Procedures and Round of Play

1. When first opening a game, one of each of the four Wind tiles are placed face-down and shuffled. Each player draws one of the four face-down Wind Tiles. The player who draws the East Wind will take the East side of the table. Example below:
a. Player A has drawn the South Wind
b. Player B has drawn the East Wind
c. Player C has drawn the North Wind
d. Player D has drawn the West Wind

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Wind/Seat Placement

2. If hand shuffled: Tiles are turned face-down and shuffled by the players. Each player takes 34 tiles and positions them in a wall, 2 tiles high and 17 tiles long. The tiles should have long sides touching and be face-down. Each wall should lie in front of each player running from left to right. The four walls are then pushed together to form a square like the one pictured below. It is important to ensure that the walls have no gaps and that they touch at the corners.

3. If machine shuffled: All 144 tiles are placed into the shuffling machine in the center of the table. The shuffling machine automatically shuffles the tiles and arranges 34 tiles on each side of the table two tiles high in a long line. These 4 lines are then joined to make a square called the “Wall”.

Wall Example

4. The player in the East position rolls three dice that are built into the center of the table and uses the sum to determine which wall will be the starting point (either East, North,

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West, or South): count proceeds counterclockwise around the walls, starting with the Eastern wall and number 1, so that numbers 5, 9, 13, and 17 would correspond to East, numbers 2, 6, 10, 14, and 18 would indicate South, numbers 3, 7, 11, 15 would correspond to West, and numbers 4, 8, 12, and 16 would correspond to North.

Dice Roll Example

5. Next, the player selected by the dice roll described above will roll the dice and adds the numbers together. Starting at the right hand end of their part of the Wall, they count the dice total along each pair of tiles, and when they come to the last 2 tiles, they break the wall at this point by pushing the left hand tiles slightly to make a gap. This is now the “breaking point”, and tiles will be drawn from the left side of the breaking point. Note: A dice roll of 18, would lead the starting point into the next Wall.

Breaking Point Example
First
tile
of
Wall

Breaking
Point

Last
tile
of
Wall
7 6 5 4 3 2 1

DEAD WALL

6. The seven closest stacks of tiles to the right of the breaking point are known as the Dead Wall (or Kong box); the remaining tiles, starting from the tiles to the left of the breaking point, constitute the Live Wall.
a. The 14 tiles of the Dead Wall are reserved as replacement tiles for Kongs, Flowers and Seasons and are taken from the left end of the Dead Wall.

7. Once the breaking point occurs, the tiles can be dealt. East always goes first. They take the first four tiles from the live wall, then South does the same, followed by West and then North. Tiles are taken like this until everyone has 12 tiles. Then East takes a final 2 tiles, and everyone else takes 1 as shown below. a. East takes 4 tiles
b. South takes 4 tiles
c. West takes 4 tiles
d. North takes 4 tiles
e. East takes 4 tiles
f. South takes 4 tiles
g. West takes 4 tiles
h. North takes 4 tiles
i. East takes 4 tiles

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j. South takes 4 tiles
k. West takes 4 tiles
l. North takes 4 tiles
m. East takes 2 tiles
n. South takes 1
o. West takes 1
p. North takes 1

DIRECTION OF TAKING TILES

8. This leaves East (the dealer) with 14 tiles, and the other players with 13 each.

9. If any Flower or Season tiles have been drawn, the players in turn (starting with East) place them face-up to the side of the play area and draw replacements from the Dead Wall (where the wall was broken) face-down. If a Flower or Season tile is drawn from the Dead Wall it is immediately declared and replaced. Also, if any player has a concealed Kong in their hand, they can declare it and draw a replacement tile.

10. The first turn is made by the East position who discards one tile by placing it face-up on the table inside the remainder of the walls.
a. The discarded tile can be claimed as described below in #12. b. When a tile is claimed from the discard, the player claiming the tile then discards and play continues in rotation from there as described below in #12a – thus breaking the sequence of play.
c. Then, unless the tile is claimed, each player in turn will draw a tile and then make a discard as described below in #12b, moving round the table East -> South -> West - > North.

11. The Players’ goal is to accumulate Chows, Pungs, Kongs, and Special Hands (described below) throughout the game by claiming discarded tiles or drawing tiles. a. A Chow is a “run” or sequence of three tiles of the same suit. A Chow can only be made from the discards of the player to their left, not any other players. To make a Chow, the player declares out loud “Chow” and takes the discarded tile. b. A Pung is a set of three identical tiles. The player says “Pung” out loud and takes a discard to make a Pung. They then show the created set and discards a tile. c. A Kong is a set of four identical tiles. If formed from a discarded tiles, the player declares “Kong” out loud and exposes the set. If drawn from the will, the player may retain it as concealed. Players concealing a Kong can later split it and use one of the tiles to make a Chow if needed/wished.

12. Whenever a discard is made, any player can use that discard to make a set with tiles in their hand. Then they reveal the set they have made to the other players. There are rules governing when a tile may be claimed, which depend on the type of set being made:
a. After each discard, any player who has two or three tiles that match the last discarded tile may take the next turn by calling Mahjong, Kong or Pung. Such a player, takes the discard and plays the resulting Pung or Kong on the table in front of ← ← ← ←

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them face-up or, in the case of Mahjong, takes the discard and declares all tiles in hand thus finishing the game.
i. If two or more players are attempting to claim the same discard for a Pung or Kong, the priority is given to the player who can use the discard to complete their hand and declare Mahjong. If neither player is declaring Mahjong, the priority is given to the player who is seated to the right of the player who discarded the tile. b. If no player calls Mahjong, Kong or Pung using a discard, then the player to the left of the player who just discarded takes the next turn. This player may call a Chow if they have two tiles that can be matched with the discarded tile. The player must then take the discard and play the resulting Chow face-up. Otherwise, this player simply takes a tile from the open end of the wall. If possible and desired, they can then declare to make a Pung, Kong, or Chow by laying the combination face-down in front of them.

13. The player always finishes a turn by discarding one tile and placing it face-up on the table inside the remainder of the walls.

14. Whenever a Kong is declared, the player must lay all of the tiles forming the Kong face- up on the table and shall immediately take a tile from the wall. a. The player places the four tiles on the table with the outside ones face-up and the inside two tiles face-down, indicating it is a declared hand. Then the player will draw a replacement tile as normal.
b. A declared Pung can be converted into a Kong only using a tile taken from the wall (their turn). A Kong can only be made using a discarded tile, if the other three tiles are in hand (concealed).

15. Tiles that have been discarded, unless they are picked up in the following turn, are dead tiles and take no further part in the game.

16. When a player only needs one more tile to make Mahjong, they have a “ready hand”.

This circumstance for the player is called “Waiting”.

17. When a player creates a hand of complete sets and a pair, this is a Mahjong, and they declare this out loud. A winning hand is four sets of Pungs, Chows, or Kongs, and a Pair.

18. If all the tiles from the wall are drawn then the game is declared a draw and no scores are made. The tiles are shuffled again and the game is restarted with the same player as East Wind.

19. After each hand, the Wind or seating position rotates counter-clockwise. This also happens in the event of a dead hand (where nobody wins). There are 4 rounds:
a. East
b. South
c. West
d. North

20. In each round, the seating position changes so a player plays each seat in each round.

This means if a player starts as East in the east round, they will play as follows:

Seat Rotation
Round Hand Seating position
1 East
1 East
2 South
3 West
4 North
2 South 5 East
6 South

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7 West
8 North
3 West
9 East
10 South
11 West
12 North
4 North
13 East
14 South
15 West
16 North

How Winners are Determined and Paid
A player who makes a completed Mahjong hand, declares Mahjong and lays down all of their tiles.

• It can happen that one player can call Mahjong with the discarded tile and another can call Pung or Kong with the discarded tile. In this case the player with Mahjong takes precedence.
• It can also happen that more than one player can make Mahjong with the discarded tile.

In this case, the player nearest the right of the player who discarded, wins the dispute, takes the tile and goes Mahjong.
• A player cannot declare a Kong and make Mahjong because a replacement tile must always be taken when declaring a Kong. A player cannot declare Mahjong and then discard a tile.
• In the case where a player takes a tile from the wall and plays it on an already exposed Pung to form a Kong, if another player can use that tile to go out, this player can "Rob the Kong" in order to go Mahjong. The player simply takes the tile just played and uses it to play a set of his own tiles to go out. Robbing the Kong is only allowed on exposed Kongs with one exception - a player can Rob a hidden Kong in order to complete the "Thirteen Orphans" special hand (described below).

Basic Scoring
Hand Containing Score
4 Chows 2 points
4 Pungs and/or Kongs 6 points
1 Dragon Pung or Kong 2 points
A pair of Dragon Pung 6 points
Pung/Kong of Winds that matches the round or
seat
2 points
Flowers/Seasons tile 1 point each
Win by self-drawn 1 point

Scoring Hands in Mahjong

There are 81 scoring hands, or ways to end a game in Mahjong. These are as follows:

• 13 hands score 1 point
• 10 hands score 2 points
• 4 hands score 4 points
• 7 hands score 6 points

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Mahjong
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• 9 hands score 8 points
• 5 hands score 12 points
• 6 hands score 16 points
• 9 hands score 24 points
• 3 hands score 32 points
• 2 hands score 48 points
• 6 hands score 64 points
• 7 hands score 88 points

These hands can also be classified by type – there are:

• 10 Honor tile based scoring hands
• 16 Chow based scoring hands
• 19 Pung based scoring hands (including 5 concealed hands) • 2 seven Pairs scoring hands
• 7 Suit based scoring hands
• 8 Terminal based scoring hands
• 2 Knitted tiles scoring hands
• 12 Types of Wait scoring hands (including 2 concealed hands) • 5 Special hands

1 Point Hands

1. Pure Double Chow – Chow Based

Two Chows (runs) of the same suit and numerical sequence.

2. Mixed Double Chow

Two Chows (runs) of the same numerical sequence but in two different suits.

3. Short Straight

Two consecutive Chows in the same suit

4. Two Terminal Chows

Two Terminal Chows in the same suit. A Terminal Chow is three consecutive tiles that include either a 1 or a 9.

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5. Pung of Terminals or Honors

Each Pung of terminals (1s or 9s) or Honors scores 1 point

6. Melded Kong

A Kong claimed from another player or promoted from a melded Pung.

7. One Voided Suit

A hand that is missing one suit entirely, so has either no Characters, no Dots or no Bamboos.

8. No Honors

A hand entirely made up of suit tiles, with no Honor tiles (but can contain Terminals).

9. Edge Wait

A hand waiting for an Edge – only one tile possible to complete the hand. So waiting for a 3 to complete 1-2-3 or a 7 to complete 7-8-9. This scoring hand is invalid if there are any other waits. It is acceptable to have combinations that do not add to the variety of tiles required, e.g. 7-7-8-9 which is a combination of Edge Wait and Single Wait, but only the 7 can actually complete the hand,

10. Closed Wait

A hand that goes out on a closed wait – e.g. 4-6 waiting for the 5. If combined with other waits the hand is invalid (e.g. 3-5-5-5 does not count for Single Wait or Closed Wait). It is acceptable, however, to have combinations that do not add to the variety of tiles required,

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e.g. 1-2-2-3-4, which is a Closed Wait and Edge Wait but only the 3 can complete the hand.

11. Single Wait

Going out on a Single Wait is known as Finishing a Head. Any type of combination wait invalidates the hand. It is acceptable, however, to have combinations that do not add to the variety of tiles required, e.g. 5-6-6-7, which is a Closed Wait and Single Wait but only the 6 can complete the hand.

12. Self-Drawn

Going out with a tile drawn from the Wall.

13. Flower Tiles

When a player goes out with the replacement tile drawn for a Flower tile, Self Drawn (one point) is added to the point total for the hand.

2 Point Hands

14. Dragon Pung

One Pung of Dragon tiles, that can be melded or concealed.

15. Pung of Prevalent Wind

A Pung of the Prevalent or Table Wind corresponding to the round of play in progress.

May be concealed or melded.

16. Pung of Seat Wind

A Pung of the player’s Seat Wind – concealed or melded.

17. Concealed Hand

A player that goes out off another player’s discarded tile and has a concealed hand with no melded sets.

18. All Chows

A hand consisting of all Chows and no honor tiles as the pair.

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19. Tile Hog

Using all 4 of a number in a single suit, but without declaring them as a Kong. You cannot count a Concealed Kong or Melded Kong as Tile Hog.

20. Double Pung

Two Pungs of the same number

21. Two Concealed Pungs

Two concealed Pungs (Pungs made without claiming tiles from another player).

23. Concealed Kong

A Kong made from tiles all drawn from the wall, not claimed from another player.

24. All Simples

A hand made up of no Honor tiles, and no Terminals.

4 Point Hands

25. Outside Hand

A hand with a Terminal or Honor in each element of it, including the pair/head.

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It may be combined with:

• Pure Double Chow
• Lower Three
• Tile Hog
• Double Pung
• Pung of Terminals or Honors
• Mixed Double Chow
• Two Terminal Chows
• One Voided Suit.

25. Fully Concealed Hand

A hand completed without making any melds, and that draws from the Wall to finish.

26. Two Melded Kongs

A finished hand that contains two claimed Kongs.

27. Last Tile

Going out with a tile that is the last of its kind. To claim this hand, the tile must be known to all players to be the last of its kind, which means that the other 3 tiles need to be in discard piles or used in claimed sets. You cannot add points for Robbing the Kong.

6 Point Hands

28. All Pungs

A hand consisting of all Pungs (or Kongs) and no Chows.

29. Half Flush

A hand formed from any of the suits and Honors only.

30. Mixed Shifted Chows

Three runs of Chows, one in each of the three suits, and each one increasing one in number from the start point of the previous Chow.

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31. All Types

A hand where each of the 5 elements is formed by using a different tile type: Characters Dots Bamboos Winds Dragons

32. Melded Hand

A hand where every element is completed with discarded tiles, so all 4 sets are claimed, and the player goes out off another player on a single wait.

33. Two Dragons

A hand containing 2 Pungs or Kongs of Dragons.

8 Point Hands

34. Mixed Straight

A straight (tiles 1-9) formed by Chows from all 3 suits.

35. Reversible Tiles

A hand composed completely of tiles that are vertically symmetrical! These tiles are:

• Bamboos – 1234589
• Dots – 245689
• Dragons – White

The hand thus has one voided suit and scores a point for that also.

36. Mixed Triple Chow

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Three Chows of the same numbers – one in each suit.

37. Mixed Shifted Pungs

Three Pungs, one in each suit, and each one being one number higher than the previous Pung.

38. Chicken Hand

This is a hand that should earn zero points, if it were not a special scoring hand. Flower and Season tiles do not count towards this hand; they are added as a bonus to the 8 points scored.

39. Last Tile Draw

A hand that goes out from the very last draw of the game. This scoring hand is not added to Self-Drawn.

40. Tile Claim

A hand that goes out off the very last discard in the game.

41. Out with Replacement Tile

A hand that goes out off the replacement tile drawn for a Kong. It does not apply to replacement tiles drawn for Flower or season tiles, only Kongs.

42. Two Concealed Kongs

A hand that includes 2 concealed Kongs.

43. Robbing the Kong

Going out by claiming the tile that another player adds to a melded Pung to create a Kong. This is not combined with a Fully Concealed Hand.

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12 Point Hands

44. Lesser Honors and Knitted Tiles

A hand made out of singles of these tiles only:

• Any Honor tile
• Suit tiles that belong to different Knitted sequences – e.g. 1-4-7 of Characters, 2-5- 8 of Bamboos, and 3-6-9 of Dots - each of the 3 suits must belong to a different Knitted sequence, but not necessarily in the order above.

When finished with 7 Honor tiles, the hand becomes a Greater Honors and Knitted Tiles hand. If the player goes out off his own draw, they can combine Fully Concealed. Points for All Types are not added.

45. Knitted Straight

This is a special Straight not formed by standard Chows, but by 3 different Knitted sequences, e.g. 147 Dots, 258 Characters, 369 Bamboos (not necessarily in this order).

46. Upper Four

A hand composed entirely of the upper 4 numbers (6 to 9). The hand implies a point for No Honors.

47. Lower Four

Similar to the above but created entirely from tiles in the lower 4 numbers (1 to 4). Again, the point for No Honors is implied.

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48. Big Three Winds

A hand that includes a Pung or Kong of each Wind.

16 Point Hands

49. Pure Straight

A hand formed of tiles 1-9 of any suit in three consecutive Chows.

50. Three-Suited Terminal Chows

A hand made up of:

• 2 Terminal Chows (123 and 789) in one suit.
• The same in another suit
• A head of 5's in the remaining suit.

51. Pure Shifted Chows

This hand is made up of 3 Chows all of one suit, and each one either shifted one number up from the previous, or two up – but not both.

52. All Fives

A hand that involves a number 5 tile in each element

53. Triple Pung

Three Pungs of the same number, one of each suit.

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54. Three Concealed Pungs

Three Pungs but concealed, not declared.

24 Point Hands

55. Seven Pairs

A hand made up of seven pairs. This hand will always end with a single wait, and cannot be combined with a Concealed Hand or Single Wait.

56. Greater Honors and Knitted Tiles

This is a hand composed of 7 single Honors, plus singles belonging to separate Knitted sequences (e.g. 1-4-7 Bamboos, 2-5-8 Characters and 3-6-9 Dots) You cannot combine this hand with All Types, Concealed Hand or Single Wait.

57. All Even

This is a hand composed of Pungs of even numbers (2-4-6-8) and a head of the same. It implies points scored for All Pungs and All Simples

58. Full Flush

This is a hand composed entirely of a single suit, and implies a point for No Honors.

59. Pure Triple Show

This is a hand formed of three runs of the same numerical sequence in the same suit. It cannot be combined with Pure Shifted Pungs.

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60. Pure Shifted Pungs

This is hand made up of three Pungs of the same suit, each one shifted up one number from the previous one. It cannot be combined with Pure Triple Chow.

61. Upper Tiles

This is a hand made up only of tiles numbered 7 8 and 9. It implies a point for No Honors.

62. Middle Tiles

This is a hand made up only of tiles numbered 4 5 and 6. It implies a point for No Honors.

63. Lower Tiles

This is a hand made up only of tiles numbered 1 2 and 3. It implies a point for No Honors.

32 Point Hands

64. Four Shifted Chows

This hand is made up of four Chows all in one suit. Each one is shifted over either 1 or 2 numbers from the previous Chow, but not a combination of both.

65. Three Kongs

A hand that contains three Kongs, either melded or concealed.

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66. All Terminals and Honors

A hand that consists entirely of Terminals and honors - 1, 9 and Honor tiles. It implies points for All Pungs and Pung of Terminals or Honors.

48 Point Hands

67. Quadruple Show

This hand is made up of four Chows of the same numerical sequence in the same suit. It therefore implies points for Pure Shifted Pungs, Tile Hog and Pure Double Chow.

68. Four Pure Shifted Pungs

This is four Pungs of the same suit, each one shifted up one from the previous.

64 Point Hands

69. All Terminals

This is a hand composed entirely of Terminals – 1 and 9 tiles. It cannot be combined with Double Pung or No Honors.

70. Little Four Winds

This is a hand made up of three Pungs of Winds and a head of the fourth Wind. It implies points for Big Three Winds and can be combined with Prevalent Wind and Seat Wind.

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71. Little Three Dragons

This is a hand that consists of 2 Dragon Pungs and a head of the third Dragon. Points for individual Dragon Pungs may not be added.

72. All Honors

This is a hand made up entirely of Honors. It can be made of Pungs, Kongs, concealed or melded. It can be combined with Dragon Pung and implies points for All Pungs.

73. Four Concealed Pungs

This is a hand made up of 4 Pungs, all of which are unmelded. It cannot be combined with Fully Concealed Hand or All Pungs.

74. Pure Terminal Chows

This hand consists of two each of the upper and lower terminal Chows in a single suit, plus a 5 in the same suit.

88 Point Hands

75. Big Four Winds

A hand made up of Pungs or Kongs of all four Winds. It cannot be combined with All Pungs.

76. Big Three Dragons

This is a hand made up of Pungs or Kongs of all three Dragons. It cannot be combined with Dragon Pung.

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77. All Green

This is a hand composed entirely of green tiles – i.e. 2-3-4-6-8 Bamboos and Green Dragons. It cannot be combined with Half Flush.

78. Nine Gates

This is a hand made up of 1-1-1-2-3-4-5-6-7-8-9-9-9 of one suit, making a nine- sided wait for a 1-2-3-4-5-6-7-8 or 9. It cannot be combined with Full Flush or Pung of Terminals or Honors.

79. Four Kongs

This is a hand that contains any four Kongs, concealed or melded.

80. Seven Shifted Pairs

This is a hand made up from seven pairs in the same suit, each one shifted up from the last. It cannot be combined with Full Flush, Fully Concealed Hand or Single Wait.

81. Thirteen Orphans

This is hand entirely made up of singles of any 12 of the terminal (1 and 9) and Honor Tiles, and a pair of the 13th. It cannot be combined with All Types, Concealed Hand or Single Wait.

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TABLE OF SCORING HANDS BY TYPE
Hand
Number
Points
Scored

HONOR TILE BASED SCORING HANDS
Dragon Pung 14 2
Prevalent Wind 15 2
Seat Wind 16 2
Two Dragons 34 6
Big Three Winds 48 12
Little Four Winds 70 64
Little Three Dragons 71 64
All Honors 72 64
Big Four Winds 75 88
Big Three Dragons 76 88

CHOW BASED SCORING HANDS
Pure Double Chow 1 1
Mixed Double Chow 2 1
Short Straight 3 1
Two Terminal Chows 4 1
All Chows 18 2
Mixed Shifted Chows 30 6
Mixed Straight 35 8
Mixed Triple Chow 37 8
Knitted Straight 45 12
Pure Straight 49 16

Three Suit Terminal Chows 50 16
Pure Shifted Chows 51 16
Pure Triple Chow 59 24
Four Shifted Chows 64 32
Quadruple Chow 67 48
Pure Terminal Chows 74 64

PUNG BASED SCORING HANDS
Pung of Terminals or Honors 5 1
Melded Kong 6 1
Double Pung 20 2
Two Concealed Pungs 21 2
Concealed Kong 22 2
Two Melded Kongs 26 4
All Pungs 28 6
Two Concealed Kongs 33 6
Mixed Shifted Pungs 38 8
Triple Pung 53 16

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Three Concealed Pungs 54 16
All Even 57 24
Pure Shifted Pungs 60 24
Three Kongs 65 32
All Terminals and Honors 66 32
Four Pure Shifted Pungs 68 48
All Terminals 69 64
Four Concealed Pungs 73 64
Four Kongs 79 88

SEVEN PAIRS HANDS
Seven Pairs 55 24
Seven Shifted Pairs 80 88

SUIT BASED HANDS
One Voided Suit 7 1
No Honors 8 1
Half Flush 29 6
All Types 31 6
Full Flush 58 24
All Green 77 88
Nine Gates 78 88

TERMINAL BASED HANDS
All Simples 23 2
Outside Hand 24 4
Upper Four 46 12
Lower Four 47 12
All Fives 52 16
Upper Tiles 61 24
Middle Tiles 62 24
Lower Tiles 63 24

KNITTED TILES BASED HANDS
Lesser Honors, Knitted Tiles 44 12
Greater Honors, Knitted Tiles 56 24

TYPES OF WAIT
Edge Wait 9 1
Closed Wait 10 1
Single Wait 11 1
Self-Drawn 12 1
Concealed Hand 17 2
Fully Concealed Hand 25 4

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Last Tile 27 4
Melded Hand 32 6
Last Tile Draw 40 8
Last Tile Claim 41 8
Out With Replacement Tile 42 8
Robbing The Kong 43 8

SPECIAL HANDS
Flower Tiles 13 1
Tile Hog 19 2
Reversible Tiles 36 8
Chicken Hand 39 8
Thirteen Orphans 81 88

Scoring
Scoring limits will be based on the table stakes of the game and will be predetermined and posted. The one who declares Mahjong is the only one who gets to score points. The points are based on the contents of the winning hand as shown above. The points are added together in a simple sum. Then, the flower tiles are counted apart from the 8 point minimum. Points are determined by whether Mahjong was declared due to a discard or a self-draw. If by someone’s discard, the winner would receive 8 points from each of the three opponents. In addition, the winner will also receive points from the player who discarded the winning tile equal to the points scored by the winning player.

Example: If a player wins by someone discard with the total of 10 points + 2 flower tiles = 12 points, he or she will receive 8 + 8 + 8 = 24 points + 12 points from the discarder for a grand total of 36 points.

If by self-draw, the player will add 8 points to the value of the winning hand and receives that amount from each of the three opponents.

Example: If a player wins by self-drawn with a total of 10 points + 2 flower tiles = 12 points, he or she will add 8 points to the hand for a revised total of 20 points, and will receive 20 + 20 + 20 = 60 points.

Announcing Mahjong and revealing your hand without the minimum 8 points will cost you a penalty of 30 points (10 points to each player).

The points scored are converted into chips and then collected from the other players. The point to chip ratio varies game to game and will be agreed to by the players based on the table limit and before play begins. Before play begins, each player is required to have an amount of live casino chips that will cover the maximum potential loss based on the highest possible scoring hand and the point to chip ratio that was agreed upon. This ensures that all players will have sufficient chips to cover any payout scenario each round.

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The table limits can range from $1 per point in smaller games to $100 per point in higher-stakes games.

Example: 104 point hand (88 point hand, plus 8 flowers, plus 8 point self draw) in low-limit games at $1/point = $104)

Example: 104 point hand (88 point hand, plus 8 flowers, plus 8 point self draw) in high-limit games at $100/point = $8,800)

Example: If a player scores 18 points in a low-limit game with $1 per point, they would collect $18 from each opponent, totaling $54. In a mid-range game where each point is worth $25, that same 18 points would result in $450 from each opponent. In high-limit games, where each point is valued at $100, the player would collect $1,800 from each opponent.

Glossary of Terms

• Chow: A set of three consecutive tiles in the same suit (e.g., 1-2-3 of Bamboo). • Pung: A set of three identical tiles (e.g., three Red Dragons). • Kong: A set of four identical tiles (e.g., four Green Dragons), which can be revealed or kept hidden.
• Mahjong: Winning by completing a hand with four sets (Chow, Pung, or Kong) and one pair.
• Dead Wall: A reserved section of 14 tiles used as replacements when players draw a Flower, Season, or form a Kong.
• Live Wall: The main stack of tiles from which players draw during the game. • Break the Wall: The point in the wall where the tiles are first drawn, determined by a dice roll.
• Flower/Season Tiles: Special bonus tiles. When drawn, they must be exposed, and the player draws a replacement from the dead wall.
• Honor Tiles: Special tiles that include Winds (East, South, West, North) and Dragons (Red, Green, White), used in scoring combinations.
• Wind Tiles: Four tiles representing the compass directions (East, South, West, North), which can give bonus points when used.
• Dragon Tiles: Three special Dragon tiles (Red, Green, White), which provide additional points when used in combinations.
• Wait: When a hand is one tile away from winning.
• Edge Wait: Waiting for one specific tile to finish a sequence. • Closed Wait: Waiting for a tile to fill a gap between two tiles. • Single Wait: Waiting for one tile to complete a pair. • Self-Drawn: Winning by drawing the final tile from the wall. • Discard: A tile a player no longer needs, placed face-up for others to claim. • Concealed Hand: A hand in which none of the sets have been revealed to other players. • Robbing the Kong: Winning by claiming a tile another player adds to complete a Kong • Thirteen Orphans: A rare hand made of one of each Honor and Terminal tile (1s and 9s), plus a pair of any of them.
• Nine Gates: A high-scoring hand using a specific combination of 1-9 tiles from the same suit, with multiple winning options.
• Tile Hog: A player using all four of the same tile without declaring a Kong.

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• Knitted Tiles: A special arrangement of non-consecutive tiles, such as 1-4-7 in one suit, 2-5-8 in another, and 3-6-9 in another.
• Melded: Sets (Chow, Pung, or Kong) declared using a discarded tile from another player.
• Concealed Kong: A Kong made from tiles drawn entirely from the wall, kept hidden until revealed.
• Seat Wind: The Wind tile matching a player's seat, which can earn bonus points. • Prevalent Wind: The Wind tile for the current round, giving bonus points when used in a set.
• Wall: The stack of tiles players draw from during the game, built into a square. • Double Pung: A hand with two Pungs of the same number, such as two Pungs of 7s. • Terminal Tiles: The 1s and 9s in each suit, which are valuable in special hands. • Melding: Revealing a set using a discard from another player. • Penalty: A fine or deduction given if a player declares Mahjong incorrectly.

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Collection Rate Schedule
For schedule options 1 through 20, the collection fee shall be taken by the house dealer from the winner’s payout or directly from the points/chips exchanged at the end of a hand (in cases of a non-win) and dropped into the collection box.

Minimum of $1 per Point
Maximum of $100 per Point
Schedule Option Collection Fee
1 $1
2 $2
3 $3
4 $4
5 $5
6 $6
7 $7
8 $8
9 $9
10 $10
11 $11
12 $12
13 $13
14 $14
15 $15
16 $18
17 $20
18 $25
19 $30
20 $35

For schedule options 21 through 48, the collection fee shall be taken from each player every thirty minutes by the house dealer and dropped into the collection box.

Minimum of $1 per Point
Maximum of $100 per Point
Schedule Option Collection Fee
(per player every 30 minutes)
21 $0
22 $1
23 $2
24 $3
25 $4
26 $5
27 $6
28 $7
29 $8
30 $9
31 $10
32 $11
33 $12

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34 $13
35 $14
36 $15
37 $16
38 $17
39 $18
40 $19
41 $20
42 $25
43 $30
44 $35
45 $40
46 $50
47 $60
48 $75

Collection Rates for Poker Games
• The players of the poker games, as shown above, play against each other for the pot of money on the table. The games do not utilize a player-dealer position, they are Poker games.
• The collection fees shall be predetermined and conspicuously posted on each table prior to any cards being dealt or a round of play commencing. • Collection rates and fees shall be determined prior to the start of play of any hand or round.
• Only one collection schedule option, which utilizes one table limit and the specified collection fees for that table limit, as listed above, shall be used at a table at any one time.
• Rates may not be calculated as a fraction or percentage of wagers made or winnings earned.
• Flat fees on wagers may be assessed at different collection rates; however, no more than five collection rates may be established per table limit. • Parkwest Bicycle Casino shall provide ample notice to patrons regarding the collection rates and fees, as well as the procedure for collecting them.

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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: Daisy Gomez, City Clerk
SUBJECT:General Motion To Waive Full Reading And Approve Ordinances By Title Only Pursuant To California Government Code Section 36934 MEETING DATE:April 14, 2025
RECOMMENDATION:

It is staff's recommendation that the City Council approve a general motion to waive full reading and approve Ordinances by title only pursuant to California Government Code Section 36934.

BACKGROUND / DISCUSSION:

In order to expedite the conduct of business at Council meetings, California State Law (California Government Code Section 36934) allows Ordinances to be read by title if a majority of the Council supports the motion waiving the full reading. Most California cities adopt a standard motion at the beginning of each meeting in order to effectuate this waiver.

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

CONCLUSION:

Allowing ordinances to be read by title only, according to California State Law, will expedite the conduct of business at Council Meetings.

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

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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: Daisy Gomez, City Clerk
SUBJECT: Minutes for the March 24, 2025, City Council/Successor Agency Joint Meetings
MEETING DATE: April 14, 2025

RECOMMENDATION:

It is staff's recommendation that the City Council approve the minutes of the March 24, 2025, City Council/Successor Agency Joint Meeting.

BACKGROUND / DISCUSSION:

Every Closed Session and City Council/Successor Agency Joint Meetings the City Clerk documents the actions made by the Agency Members/City Council.

CONCLUSION:

If approved, the minutes of the City Council/Successor Agency Joint Meeting will be archived in the City Clerk's Office.

FISCAL IMPACT:

No fiscal impact.

ELECTRONICALLY APPROVED BY:

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

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CITY OF BELL GARDENS

MINUTES
City Council / Successor Agency to the Community Development Commission Joint Meeting
Monday, March 24, 2025, 6:00 PM

ACCESSIBILITY: 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 reasonable modification, accommodation, aid, or service by contacting the City Clerk's office by telephone at 562-806-7704 or via email to [email protected] no later than 72-hours before the scheduled meeting.

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wish to address the City Council should do so by submitting a "Public Comment Card" by 5:00 pm.

BY TELEPHONE: Phone Number: (669)900-9128 Webinar ID: 813 3236 4343# Passcode: 2021# To address the City Council press *9 to raise your hand then *6 to unmute yourself when instructed.

VIRTUALLY LIVE: Members of the public may participate via Zoom by https://zoom.us/join and entering the Zoom Meeting ID: 813 3236 4343 Passcode: 2021

For more information, you may contact the City Clerk's office during regular business hours 7:30 a.m. to 6:00 p.m., Monday through Thursday at (562) 806-7704.

1. CALL TO ORDER
The Council Members of the City of Bell Gardens City Council/Successor Agency held a Joint Regular meeting on March 24, 2025, in the Council Chambers, 7100 Garfield Avenue, Bell Gardens, CA with Mayor Jorgel Chavez presiding. Mayor Jorgel Chavez called the joint meeting to order at 6: 12 p.m.

2. INVOCATION
The invocation was given by Minister Daniel Anguiano.

3. PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by Girl Scout Troop #2543, Cameron Vargas

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4. ROLL CALL OF CITY COUNCIL MEMBERS / SUCCESSOR AGENCY TO THE

5. PRESENTATION

5.1 Arts, Culture and Creativity Advocacy Month
Councilmember Marco Barcena read the certificate of
recognition and presented it to arts, culture and creativity recipients.

5.2 Certificate of Recognition - Bell Gardens High School Girls Volleyball Team

Mayor Jorgel Chavez read the certificate of recognition and presented it to the Bell Gardens High School Girls Volleyball team.

5.3 Certificate of Recognition - Delicias De Mexico
Mayor Jorgel Chavez read the certificate of recognition and presented it to the owner Jaime Alvarez.

6. PUBLIC HEARING

6.1 Consideration of Ordinance No. 952 to Authorize a
Development Agreement by and between the City of Bell
Gardens, Flora Hospitality Group, LLC and James N. Tate III Trust relating to the property located at 6638 Eastern Avenue in the City of Bell Gardens

RECOMMENDATION: It is staff’s recommendation that the
City Council waive full reading and introduce Ordinance No.

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952, by title only, to approve the proposed Development Agreement No. 2024-048 for a cannabis retail storefront at 6638 Eastern Avenue.

ENVIRONMENTAL REVIEW: 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.), Ordinance No. 952 has been determined to be
categorically exempt pursuant to CEQA Guidelines Section 15301 (Existing Facilities) and Section 15061(b)(3) (Common Sense Exemption). The Project would authorize a cannabis retail use within an already existing commercial structure, inclusive of tenant improvements, to support a new
commercial use for up to 10 years. No additional floor area is proposed. Additionally, a cannabis retail use has similar impacts as other typical commercial uses and would be
subject to the same or more restrictive development and operating standards as other commercial uses. This Project would comply with building, energy efficiency, and land use and development standard provisions. Therefore, it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.

CONCLUSION: The DA is designed to facilitate ongoing
communication and collaboration between the Applicant,
who would be the licensee, and the local community
addressing concerns and ensuring the retail storefront aligns with community values and interests by requiring the
Applicant to submit evidence of compliance with all terms and conditions to the City on an annual basis. Balance would be promoted with the operational flexibility built into the DA addressing unforeseen challenges or changes in
circumstances, allowing for adjustments as needed through City Council approval. Compliance with the DA and its terms and conditions will be subject to an annual review, whereby if the City determines that the Applicant is in noncompliance status with the DA, the City may modify or terminate the DA.

Adoption of Ordinance No. 952 and the execution of the
proposed DA would ensure vested development rights in
exchange for community benefits dedicated to revenue for youth programs, housing and homelessness issues, and other discretionary items. Therefore, staff recommends approval of

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the proposed Development Agreement, which would permit a cannabis retail use at the Subject Site for an initial five (5)- year term, subject to an option to extend the term for an additional five (5) years, for a total 10-year term.

FISCAL IMPACT: If Ordinance No. 952 is approved, the
Applicant would be required to make an up-front payment of $100,000 upon the effective date of the DA and renew the contribution annually following the execution of the DA, every January (Annual Community Benefit). The Applicant would also be required to make quarterly contributions equal to seven percent (7%) of gross receipts (Quarterly Community Benefit). Pursuant to the DA terms, 80 percent (80%) of these funds would be dedicated to the City’s youth and recreational programming and the City’s housing programs. Under the DA, the Applicant would also be responsible for the cost of staff time spent on the negotiation and preparation of a
development agreement and monitoring activities to ensure compliance with the DA, CUP, BGMC, and other applicable laws and regulations.

ATTACHMENTS:

Exhibit 1 - Ordinance No. 952 (Development Agreement No. 2024-048)

Exhibit 2 - Development Agreement No. 2024-048

Exhibit 3 - March 10, 2025, City Council Agenda Report and Exhibits

Exhibit 4 - February 19, 2025 PC 2024-048 Staff Report and Exhibits

Mayor Jorgel Chavez opened the public hearing at 6:47 p.m.

John Ramirez, Interim Director of Community Development, and Mona Mossayeb, Acting City Planner, provided a
presentation.

PUBLIC COMMENT
City Clerk Daisy Gomez announced that no written or
comments were received and no public comments were
provided.

Mayor Jorgel Chavez closed the public hearing at 7:12 p.m.

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A motion was made by Councilwoman Francis De Leon
Sanchez, seconded by Councilmember Marco Barcena to
approve Ordinance No. 952 and the proposed development
agreement for a cannabis retail storefront at 6638 Eastern Avenue.

The motion carried 3 - 2 with the following vote:

Moved by: Francis De Leon Sanchez
Seconded by: Marco Barcena

Yes Marco Barcena, Miguel De La Rosa, and Francis
De Leon Sanchez
No Jorgel Chavez and Isabel Guillen
Carried 3-2

7. PUBLIC COMMENTS ON NON-AGENDA ITEMS UNDER THE SUBJECT

City Clerk Daisy Gomez announced that there were no written comments received.

Lee Squire spoke regarding National Vietnam War Veteran's Day.

City Clerk Daisy Gomez announced that there were no written or public comments received.

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Richard Jarman spoke in support of Item No. 12.3.

Mario Beltran spoke in support Item No. 12.3.

Gabriela Gomez spoke in support Item No. 12.3.

9. EXTERNAL COMMITTEES UPDATES
Members of the Council reported out updates on their external committees.

LISTEN IF ANYTHING SUBSTANTIVE WAS ANNOUNCED: Mayor Jorgel Chavez reported out on Contract Cities.

Councilwoman Isabel Guillen reported out on outgoing

Councilwoman Francis De Leon Sanchez reported out on Gateway Cities - empowered gateways; JPA casino

Councilmember Marco Barcena reported out on SEEACA; HUB Cities; Vector Control; Sanitation.

Miguel De La Rosa reported out on

10. CITY MANAGER'S REPORT
City Manager Michael B. O'Kelly provided a brief report.

A motion was made by Councilwoman Francis De Leon Sanchez, seconded by

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Mayor Jorgel Chavez to approve Consent Calendar Item Nos. 11.1 - 11.11.

The motion carried 5 - 0 with the following vote:

Moved by: Francis De Leon Sanchez
Seconded by: Jorgel Chavez

Yes Marco Barcena, Jorgel Chavez, Miguel De La
Rosa, Francis De Leon Sanchez, and Isabel
Guillen
Carried 5-0

11.1 General Motion to Waive Full Reading and Approve
Ordinances by Title Only Pursuant to California Government Code Section 36934 with Support from the Majority of the Legislative Body.

RECOMMENDATION: To approve ordinances by title only.

CONCLUSION: Allowing ordinances to be read by title only, according to California State Law, will expedite the conduct of business at Council Meetings.

FISCAL IMPACT: None.

ATTACHMENTS: None.

11.2 Approval Minutes of City Council/Successor Agency - Joint Meeting

RECOMMENDATION: It is staff's recommendation that the
City Council approve the minutes of the March 10, 2025, City Council/Successor Agency Joint Meeting.

CONCLUSION: If approved, the minutes of the City
Council/Successor Agency Joint Meeting will be archived in the City Clerk’s Office.

FISCAL IMPACT: None
ATTACHMENTS: Exhibit 1 - City Council / Successor Agency to the Community Development Commission Joint Meeting -
Mar 10 2025 - Minutes - Html

11.3 Second Reading and Adoption of Ordinance 956 amending

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Title 2 (Administration and Personnel) of the Bell Gardens Municipal Code to add a new Chapter 2.74 (Electronic
Signatures) to establish a policy for the use of electronic or digital signatures

RECOMMENDATION: It is staff’s recommendation that the
City Council waive full reading and adopt Ordinance No. 956 amending Title 2 (Administration and Personnel) of the Bell Gardens Municipal Code to add a new Chapter 2.74
(Electronic Signatures) to establish a policy for the use of electronic or digital signatures.

CONCLUSION: If approved, Ordinance No. 956 would become effective thirty (30) calendar days after approval. Staff recommends that the City Council waive full reading and adopt Ordinance No. 956.

FISCAL IMPACT: None.

ATTACHMENTS: Exhibit 1 - Ordinance No. 956

11.4 Warrant Register Successor Agency

RECOMMENDATION: It is staff’s recommendation that the
Successor Agency members receive and file the warrant
registers dated 03/04/2025.

CONCLUSION: If the recommendation to the Successor
Agency Members is approved, then the warrant register dated 03/04/2025 will be received and filed.

FISCAL IMPACT:

Wa
rra
nt
Re
gist
er
03/
04/
20 25
129
74 $8
,0
83 .0
8 Tot
al
Ban
k
$8
,0
83 .0
8

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Gra
nd
Tot
al
Vou
che
rs
$8
,0
83 .0
8 ATTACHMENTS: Exhibit 1-Warrant Register Successor Agency

11.5 Warrant Register and Wire Transfer

RECOMMENDATION: It is staff's recommendation that the
City Council receive and file the warrant registers, wire transfers, and net payrolls dated 03/04/2025, 03/06/2024, and 03/11/2025.

CONCLUSION: If the recommendation to the City Council is approved, then the warrant registers, wire transfers, and net payrolls dated 03/04/2025, 03/06/2024, and 03/11/2025.

FISCAL IMPACT:

Wa
rra
nt
regi
ste
r
03 /0
4/
20 25
194
357
-
194
430
$5
93 ,6
67 .1
1 Tot
al
Ban
k
$5
93 ,6
67 .1
1 Wir
e

03 /0
205
1-
205
$1
,5
84

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Tra
nsf
er
6/
20 25
5 ,0
38 .9
4 Wa
rra
nt
regi
ste
r

03 /1
1/
20 25
194
431
-
194
553
$5
23 ,9
08 .9
7 Tot
al
Ban
k
$2
,1
07 ,9
47 .9
1 Net
Pay
roll
tra
nsf
er

03 /0
6/
20 24
$5
27 ,4
24 .9
4 Tot
al
Vou
che
r
$2
,6
35 ,3
27 .8
5 Gra
nd
Tot
al
$3
,2
29 ,0

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Vou
che
rs
39 .9
6 ATTACHMENTS: Exhibit 1- Warrant Register

11.6 February 2025 Treasurer’s Report

RECOMMENDATION: It is recommended that the City Council receive, approve, and file the February 2025 Treasurer’s Report.

CONCLUSION: The February 28, 2025, Treasurer’s Report has been presented to the City Council with a recommendation to receive, approve and file.

FISCAL IMPACT: None
ATTACHMENTS: Exhibit 1 - Treasury Report

11.7 Consideration of adoption of a Resolution Approving a Lease Agreement Between the City of Bell Gardens and the County of Los Angeles for Library premises Located at 7110 Garfield Avenue

RECOMMENDATION: It is the staff’s recommendation that the City Council adopt the attached Resolution approving a lease agreement between the County of Los Angeles and the City of Bell Gardens to continue leasing 7110 Garfield Avenue for the purpose of a County of Los Angeles library.

CONCLUSION: The Bell Gardens Library offers serval benefits including access to resources, cost efficiency, educational support, community engagement, digital access, and
technology, among others. It is recommended that the City Council adopt the attached Resolution, approving a lease agreement between the City of Bell Gardens and the County of Los Angeles, for the collective continued public library services benefits that enhance the quality of life for residents.

FISCAL IMPACT: The presence of a County library branch is a valuable community asset. The City can leverage county
funding and resources to maintain and expand library
services without bearing the full financial burden, allowing high-quality services while keeping costs manageable. The leasing of the site shall be free of charge. The Bell Gardens

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Library shall be responsible for all utility services associated with the leased premises, including but not limited to water, sewer, trash collection, pest control, telephone, electricity, and gas, as needed for the operation and use of the premises.

ATTACHMENTS:

Exhibit 1 - Resolution No. 2025-25

Exhibit 2 - Lease Agreement

11.8 Consideration of Approval of a Second Amendment to Professional Services Agreement Between the City of Bell Gardens and WSP USA Inc. for Equitable Community
Revitalization Grant Work for 5600-5636 Shull Street (Former Berk Oil Site)

RECOMMENDATION: It is staff’s recommendation that the
City Council:

1. Determine the action exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant
to State CEQA Guidelines Section 15060(c)(3); and

2. Adopt the attached resolution authorizing the City
Manager to execute a Second Amendment to the
Professional Services Agreement (“Agreement”)
between the City and WSP USA Inc. (WSP; formerly
Wood Environment & Infrastructure Solutions, Inc.).

ENVIRONMENTAL REVIEW: Pursuant to the California
Environmental Quality Act (CEQA), Guidelines Section No. 15060(c)(3), this report is categorically exempt as
organizational or administrative activities of governments since no direct or indirect physical changes in the
environment would result and the activity is not defined as a project.

CONCLUSION: WSP has provided valuable consulting
services to the City and has a deep understanding of the historical and proposed Site activity. Based on their work to date, and the additional work and testing required to
continue helping the City coordinate the physical remediation of the Site, staff recommends the City Council adopt the resolution approving a Second Amendment to the Master
Professional Services Agreement with WSP.

FISCAL IMPACT: Approval of the Second Amendment would

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have no fiscal impact to the City since Site hazardous waste cleanup activities are funded in full by the ECRG.

ATTACHMENTS:

Exhibit 1 - Resolution No. 2025-26

Exhibit 2 - Second Amendment to PSA WSP

11.9 Consideration of a Resolution to Consent and Submit the 2024 Bell Gardens General Plan Annual Progress Report to the State of California

RECOMMENDATION: It is staff’s recommendation that the
City Council adopt the attached Resolution approving and consenting to the submission of the 2024 Bell Gardens
General Plan Annual Progress Report to the State of
California.

ENVIRONMENTAL REVIEW: Pursuant to the California
Environmental Quality Act (CEQA), Guidelines Section No. 15306 (Class 6, Information Collection), this report is categorically exempt from the application of CEQA. Class 6 consists of basic data collection, research, experimental management, and resource evaluation activities which do not result in a serious or major disturbance to an environmental resource. These may be strictly for information gathering purposes, or as part of a study leading to an action which a public agency has not yet approved, adopted, or funded.

Categorical exemptions are for projects that have been
determined to not have a significant effect on the
environment, and as this report is solely for the purpose of information sharing, the collection of information is exempt from the requirement for the preparation of environmental documentation.

CONCLUSION: Staff recommends that the City Council accept the APR by adopting a resolution to consent to the APR’s submission to the California OPR and HCD.

FISCAL IMPACT: None.

ATTACHMENTS:

Exhibit 1 - Resolution No. 2025-27

Exhibit 2 - 2024 Bell Gardens General Plan Annual Progress Report

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Exhibit 3- Resolution #PC 2025-08

11.10 Consideration of a Resolution Approving a Fifth Amendment to Professional Services Agreement with RJM Design Group to Provide Additional Design Services for the John Anson Ford Park Regional Aquatics Center Improvements

RECOMMENDATION: It is staff’s recommendation that the
City Council adopt the attached Resolution authorizing the City Manager to execute a Fifth Amendment to the
Professional Services Agreement with RJM Design Group, Inc.

Conclusion: Approving a Fifth Amendment would enable RJM to provide the additional design and services necessary for the Aquatics Center.

FISCAL IMPACT: The $7,418 for additional design and the $25,000 contingency would result in a total contract cost of $1,689,255. CDBG funds are available.

ATTACHMENTS:Exhibit 1 - Resolution No 2025-28

Exhibit 2 - Fifth Amendment with Exhibits

11.11 Consideration of a Resolution Approving an Agreement with ABM Electrical & Lighting Solutions, Inc. for the Purchase and Installation of Solar-Powered Lighting at Darwell Park

RECOMMENDATION: It is staff’s recommendation that the
City Council:

1. Adopt the attached Resolution approving an
agreement with ABM Electrical & Lighting Solutions,
Inc. for the purchase and installation of new solar
lighting for a total amount not to exceed $20,608.45;
and

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

CONCLUSION: If the attached Resolution is adopted, staff will process the agreement for signatures and issue a Notice to Proceed with the Lighting Improvements to ABM. The Lighting Improvements are expected to be completed by May 30, 2025.

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FISCAL IMPACT: The agreement amount for the Lighting
Improvements is $20,608.45. A contingency of ten percent (10%) (approximately $2,060.85) will be necessary to cover any unforeseen conditions; therefore, the total project budget for the Lighting Improvements will be $22,669.30. The City’s FY 24/25 budget includes sufficient funding for the
improvements.

ATTACHMENTS:

Exhibit 1 - Resolution No. 2025-29

Exhibit 2 - Purchase and Installation Agreement

12. DISCUSSION

12.1 Local Commissions Appointment List

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.

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.

ATTACHMENTS: Exhibit 1- Local Commission Vacancies

Mayor Jorgel Chavez recessed the meeting at 7:49 p.m. and reconvened at 7:59 p.m.

This item was heard after Item No. 12.3.

No action was taken.

12.2 Legislative Update

RECOMMENDATION: It is staff’s recommendation that the
City Council receive and file this update.

CONCLUSION: The League of California Cities serves as a

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valuable resource for cities, offering legislative advocacy and educational support. Through its efforts, Cal Cities provides opportunities for deeper involvement in legislation that affects local governments by providing tools to help expand and protect local control. The City of Bell Gardens can benefit from the resources and services offered by Cal Cities to enhance its participation in the legislative process.

FISCAL IMPACT: None.

ATTACHMENTS: Exhibit 1 - Legislative Update Presentation

Nicholas Cabeza, Regional Public Affairs Manager Los Angeles County Division, League of California Cities provided a presentation.

This item was received and filed.

12.3 Consideration of Adoption of a Resolution Denouncing Institutionalized Violence Against Youth and Affirming the City's Commitment to Supporting Programs That Promote
Youth Safety, Well-Being and Success

RECOMMENDATION: It is staff’s recommendation that the
City Council adopt the attached Resolution denouncing
Institutionalized violence against youth and affirming the City's commitment to supporting programs that promote
youth safety, well-being and success.

BACKGROUND/ DISCUSSION: During the March 10, 2025 City
Council meeting, Councilmember Marco Barcena directed
staff to prepare a resolution denouncing institutionalized violence against youth and affirming the City's commitment to supporting programs that promote youth safety, well- being and success.

The attached Resolution aims to affirm that the City of Bell Gardens stands in solidarity with those advocating for the well-being and rights of youth.

CONCLUSION: Staff recommends the approval of the
attached resolution to address institutionalized violence against youth and the City’s mission to invest in youth

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services and preventative initiatives to provide a safe and supportive environment for youth.

FISCAL IMPACT: None.

ATTACHMENTS: Exhibit 1 - Resolution No. 2025-30

This item was heard prior to Item No. 12.1.

A motion was made by Councilmember Marco Barcena,
seconded by Councilwoman Isabel Guillen to adopt Resolution No. 2025-30.

The motion carried 5-0 with the following vote:

Moved by: Marco Barcena
Seconded by: Isabel Guillen

Yes Marco Barcena, Jorgel Chavez, Miguel De La
Rosa, Francis De Leon Sanchez, and Isabel
Guillen
Carried 5-0

13. CITY COUNCIL / SUCCESSOR AGENCY MEMBER COMMENTS
Members of the Council and Successor Agency made community announcements and comments.

14. ADJOURNMENT
Mayor Jorgel Chavez adjourned the meeting at 8:34 p.m.

Daisy Gomez, City Clerk

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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 & Administrative Services SUBJECT: Warrant Register and Wire Transfer
MEETING DATE: April 14, 2025

RECOMMENDATION
It is staff's recommendation that the City Council receive and file the warrant registers, wire transfers, and net payrolls dated 03/18/2025, 03/20/2025, and 03/25/2025.

BACKGROUND/DISCUSSION
The attached warrant registers, wire transfers, and net payrolls are for 03/18/2025, 03/20/2025, and 03/25/2025.

CONCLUSION
If the recommendation to the City Council is approved, then the warrant registers, wire transfers, and net payrolls dated 03/18/2025, 03/20/2024, and 03/25/2025.

FISCAL IMPACT:

Warrant Register 03/18/2025 194554-194635 $1,634,096.41 Total Bank $1,634,096.41

Wire Transfer 03/20/2025 2056-2060 $285,021.36
Warrant Register 03/25/2025 194636-194731 $954,947.06 Total Bank $1,239,968.42
Net Payroll Transfer 03/20/2024 $539,435.13
Total Voucher $1,779,403.55

Grand Total Vouchers $3,413,499.96
APPROVED ELECTRONICALLY BY:

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

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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 Ordinance No. 952 to Authorize a Development Agreement by and between the City of Bell Gardens, Flora Hospitality Group, LLC, and James N. Tate III Trust relating to the property located at 6638 Eastern Avenue in the City of Bell Gardens
MEETING DATE:April 14, 2025
RECOMMENDATION:

It is staff’s recommendation that the City Council waive full reading and adopt Ordinance No. 952 to approve the proposed Development Agreement (DA) No. 2024-048 for a cannabis retail storefront at 6638 Eastern Avenue.

BACKGROUND/DISCUSSION:

Flora Hospitality Group, LLC (Applicant) proposes to establish a cannabis retail use (Project) at 6638 Eastern Avenue (Subject Site). On February 19, 2025, the Planning Commission determined the Project was categorically exempt from the California Environmental Quality Act (CEQA) (Pub. Res. Code § 21000 et seq.), approved CUP No. 2024-048 (Resolution #PC 2025-02) and recommended to the City Council approval of Ordinance No. 952 (Resolution #PC 2025-03). At the regularly scheduled City Council meeting of March 10, 2025, staff made a presentation regarding the proposed Development Agreement, followed by a presentation by the Project Applicant. The City Council deliberated the item materials, presentations, and directed staff to revise the ordinance to require the Applicant and Property Owner to effectuate the Development Agreement within 60 days after the Ordinance becomes effective and continued the hearing by a 3-2-0 vote.

On March 24, 2025, the City Council waived the full reading and introduced Ordinance No. 952, by title only, to authorize entering into and execution of DA No. 2024-048 by a 3-2-0 vote.

If adopted, Ordinance No. 952 would permit a cannabis retail use at 6638 Eastern Avenue for an initial five (5)-year term, subject to an option to extend the term for an additional five (5) years, for a total 10-year term, so long as the operator is in compliance with applicable state and local laws, the development agreement, the conditional use permit, additional city approvals (if any), and the state cannabis licenses, in exchange for annual and quarterly community benefits provided by the cannabis retail use operator.

A detailed analysis of the Project’s compliance with the City’s development standards and the DA terms can be found in the March 24, 2025 City Council staff report attached, herein.

ENVIRONMENTAL REVIEW:

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.), Ordinance No. 952

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has been determined to be categorically exempt pursuant to CEQA Guidelines Section 15301 (Existing Facilities) and Section 15061(b)(3) (Common Sense Exemption).

CONCLUSION:

If approved, Ordinance No. 952 would become effective 30 calendar days after approval, in addition the operator and property owner must execute the agreement, and the operator must provide proof of insurance and submit the initial Annual Community Benefits payment of One Hundred Thousand Dollars ($100,000) to effectuate the benefits conferred by the development agreement withing 60 calendar days. The development agreement would ensure vested development rights in exchange for community benefits dedicated to revenue for youth programs, housing and homelessness issues, and other discretionary items. Therefore, staff recommends that the City Council conduct a second reading of Ordinance No. 952 and adopt the ordinance, which would permit a cannabis retail use at the Subject Site for an initial five (5)-year term, subject to an option to extend the term for an additional five (5) years, for a total 10-year term.

FISCAL IMPACT:

If Ordinance No. 952 is approved, the Applicant would be required to make an up-front payment of $100,000 upon the effective date of the DA and renew the contribution annually following the execution of the DA every January (Annual Community Benefit). The Applicant would also be required to make quarterly contributions equal to seven percent (7%) of gross receipts (Quarterly Community Benefit). Pursuant to the DA terms, eighty percent (80%) of these funds would be dedicated to the City’s youth and recreational programming and the City’s housing programs. Under the DA, the Applicant would also be responsible for the cost of staff time spent on the negotiation and preparation of a development agreement and monitoring activities to ensure compliance with the DA, CUP, BGMC, and other applicable laws and regulations.

APPROVED ELECTRONICALLY BY:

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

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ORDINANCE NO. 952

AN ORDINANCE AUTHORIZING THE EXECUTION OF A

DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF BELL
GARDENS, FLORA HOSPITALITY GROUP, LLC, AND JAMES N. TATE III TRUST RELATING TO THE PROPERTY LOCATED AT 6638

EASTERN AVENUE IN THE CITY OF BELL GARDENS

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

WHEREAS, the City Planning Commission, on February 19, 2025, considered and recommended to the City Council approval of the development agreement by and between the City, Flora Hospitality Group, LLC, and James N. Tate III Trust (Development Agreement), which is incorporated herein by reference as Exhibit “A”; and

WHEREAS, after due notice, the City Planning Commission and the City Council did conduct public hearings on this matter; and

WHEREAS, pursuant to Government Code Section 65864 et. seq, and City Council Resolution No. 2023-043 (Development Agreement Procedures), the City Planning Commission transmitted to the City Council its findings and recommendations through the adoption of Resolution #PC 2025-03; and

WHEREAS, the Development Agreement is in the public interest and is consistent with the City’s General Plan; and

WHEREAS, Policy 1 of the General Plan’s Land Use Element emphasizes the City’s commitment to open communication and seek public input; and

WHEREAS, the deliberation of the Ordinance has been subject to a public hearing process that has been duly noticed for the purpose of seeking public input and participation, and community members will continue to provide public input for individual projects resulting from ordinance implementation and is therefore consistent with Policy 1; and

WHEREAS, Policy 3 of the General Plan’s Land Use Element promotes compatible commercial development to emphasize commercial identity and to enhance the appearance, potential economic vitality, and revitalization of commercial areas in the City; and

WHEREAS, the Project would reactivate a currently vacant commercial parcel resulting in a planned commercial complex that includes cannabis retail storefront thereby enhancing the economic vitality of the surrounding commercial areas and is therefore consistent with Policy 3; and

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WHEREAS, the introduction of a cannabis retail use will promote an economic diversity of the City’s commercial zone in order to ensure community stability and economic vitality of existing businesses and is therefore consistent with Policy 5; and

WHEREAS, on March 10, 2025, the City Council conducted a duly noticed hearing and considered all public comments received before and during the public hearing, the presentation by City staff, the relevant staff report, the Development Agreement and the findings and recommendations of the City Planning Commission; and

WHEREAS, after consideration of the Ordinance, the City Council directed staff to revise the Ordinance to require the Applicant and Property Owner to effectuate the Development Agreement within 60 days after the Ordinance becomes effective and continued the hearing by a 3-2-0 vote; and

WHEREAS, on March 24, 2025, the City Council reopened the public hearing, considered all additional public comments received before and during the public hearing, the presentation by City staff, the relevant staff report, the revised Ordinance, and Development Agreement.

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

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

SECTION 2. The City Council finds, with respect to the Development Agreement, that it:

(i) Is consistent with the objectives, policies, general land uses and programs specified in the General Plan;

(ii) Promotes the public health, safety, and general welfare;

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

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

SECTION 3. The City Council hereby approves DA No. 2024-048 and authorizes the City Attorney to approve as to form and make clarifying changes and further authorizes and directs the City Manager to execute the Development Agreement in the name of the City of Bell Gardens.

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SECTION 4. The Applicant shall cause the Development Agreement to be effectuated by providing notarized signatures, proof of insurance and public benefits as required by the terms of the Development Agreement within 60 days of the effective date of this Ordinance.

SECTION 5. If any section, subsection, sentence, clause, phrase, or portion of this Ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have adopted this Ordinance, and each section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, or portions might subsequently be declared invalid or unconstitutional.

SECTION 6. The City Clerk shall certify the passage and adoption of this Ordinance and shall cause this Ordinance to be published and/or posted as required by law, which shall take full force and effect thirty days from its adoption.

PASSED, APPROVED AND ADOPTED this 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, Daisy Gomez, City Clerk of the City of Bell Gardens, hereby CERTIFY that Ordinance

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No. 952 was introduced and placed upon its first reading at a regular meeting of the Bell Gardens City Council held on March 24, 2025 and that thereafter said ordinance was duly adopted at a regular meeting of the Bell Gardens City Council held on April 14, 2025 and was approved and passed by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

____________________________
Daisy Gomez, City Clerk

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1 DEVELOPMENT AGREEMENT NO. 2024-048

BETWEEN

THE CITY OF BELL GARDENS
AND

FLORA HOSPITALITY GROUP, LLC

RECORDING REQUESTED BY

AND WHEN RECORDED MAIL
TO:

City of Bell Gardens
City Hall
7100 Garfield Ave.

Bell Gardens, California 90201
Attn: Office of the City Attorney
(Space above Line for Use by Recorder)
This document is exempt from the
payment of a recording fee pursuant to
Government Code Section 27383

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2 This DEVELOPMENT AGREEMENT (“Agreement”) is dated as of __________________, 2025 by and among the City of Bell Gardens (the “City”), Flora Hospitality Group, LLC (“Developer”), and James N. Tate, III (the “Property Owner”). This Agreement shall take effect on the “Effective Date,” as this term is hereafter defined. The City, Developer, and the Property Owner may each be referred to herein individually as a “Party” or collectively as the “Parties.”

RECITALS
WHEREAS, in 1996, the California State Legislature approved Proposition 215, also known as the Compassionate Use Act (“CUA”) (Health and Saf. Code § 11262.5 et seq.) and was intended to enable persons in need of medical marijuana for specified medical purposes, such as cancer, anorexia, AIDS, chronic pain, glaucoma and arthritis, to obtain and use marijuana under limited circumstances and were recommended by a physician. The CUA provides that “nothing in this section shall be construed or supersede legislation prohibiting persons from engaging in conduct that endangers others, or to condone the diversion of marijuana for non-medical purposes”;
WHEREAS, in 2004, the California State Legislature enacted the Medical Marijuana Program Act (Health & Saf. Code § 11362.7 et seq.) (“MMP”), which clarified the scope of the CUA, created a state-approved voluntary medical marijuana identification card program, and authorized cities to adopt and enforce rules and regulations consistent with the MMP. Assembly Bill 2650 (2010) and Assembly Bill 1300 (2011) amended the MMP to expressly recognize the authority of counties and cities to “[a]dopt local ordinances that regulate the location, operation, or establishment of a medical marijuana cooperative or collective” and to civilly and criminally enforce such ordinances;
WHEREAS, on April 25, 2011, this City Council approved a moratorium on the establishment and operation of medical marijuana dispensaries through the adoption of Ordinance No. 840;
WHEREAS, in September 2015, the California State Legislature enacted, and Governor Brown signed into law three bills – Assembly Bill 243, Assembly Bill 266, and Senate Bill 643 – which together comprise the Medical Marijuana Regulation and Safety Act (the “MMRSA”). The MMRSA created a comprehensive dual state licensing system for the cultivation, manufacture, retail, sale, transport, distribution, delivery, and testing of medical cannabis; WHEREAS, on January 25, 2016, the City Council adopted Ordinance No. 873 to prohibit all commercial cannabis activities citywide, including Cannabis Retail Activities; WHEREAS, in June 2016 the MMRSA was renamed the Medical Cannabis Regulation and Safety Act (the “MCRSA”), under Senate Bill 837, which also included substantive changes to the applicable state laws, which affect the various state agencies involved in regulating cannabis businesses as well as potential licensees;
WHEREAS, on November 8, 2016, the Control, Regulate, and Tax Adult Use of Marijuana Act (“AUMA”) was approved by California voters as Proposition 64 and became effective on

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3 November 9, 2016, pursuant to the California Constitution (Cal. Const., art. II, § 10(a)). Proposition 64 legalized the nonmedical use of cannabis by persons 21 years of age and over, and the personal cultivation of up to six (6) cannabis plants;
WHEREAS, AUMA also created a state regulatory and licensing system governing the commercial cultivation, testing, and distribution of nonmedical cannabis, and the manufacturing of nonmedical cannabis products;
WHEREAS, on June 27, 2017, Governor Brown signed the Legislature-approved Senate Bill 94 (“SB 94”). SB 94 combined elements of the MCRSA and AUMA to establish a streamlined singular regulatory and licensing structure for both medical and nonmedical cannabis activities given that there were discrepancies between the MCRSA and AUMA. The new consolidated provisions under SB 94 are now known as the Medicinal and Adult-Use Cannabis Regulation and Safety Act (“MAUCRSA”) to be governed by the California Bureau of Cannabis Control; WHEREAS, on September 16, 2017, Governor Brown signed Assembly Bill 133 into law, which provided cleanup and substantive to MAUCRSA, including the removal of the requirement that licensed premises remain “separate and distinct” for each license type; WHEREAS, MAUCRSA grants local jurisdictions discretion over whether businesses engaged in Commercial Cannabis Activity may operate in a particular jurisdiction and, if authorized, where within such jurisdiction;
WHEREAS, on June 26, 2023, the City Council approved Ordinance No. 934 to (i) repeal the prohibition of all adult-use Cannabis Activities in the City; and (ii) establish regulations and a discretionary review process for Cannabis Retail Activities, in the M-U (Mixed Use Residential/Commercial), C-S (Commercial Service and Professional), C-3 (Medium Commercial), C-4 (Heavy Commercial), C-M (Commercial-Manufacturing), and M-1 (Light Industrial) Zones;
WHEREAS, Ordinance No. 934 allows persons to engage in permissible Retail Commercial Cannabis Activities upon the City’s approval of a conditional use permit and issuance of a Business Regulatory Permit, for a term of eighteen (18) months unless Developer executes a development agreement with the City;
WHEREAS, Developer seeks to improve, develop, and/or use real property to operate a Cannabis Retail use in the City, in strict accordance with the California Cannabis Laws, the Bell Gardens Municipal Code, and related statutes and regulations, as each may be amended from time to time (the “Project”);
WHEREAS, to strengthen the public planning process, encourage private participation in comprehensive planning, and reduce the economic risk of development, the California Legislature adopted Government Code Section 65864 et seq. (the "Development Agreement Statute"), which authorizes City and an individual with an interest in real property to enter into a development agreement that establishes certain development rights in real property; WHEREAS, consistent with the requirements of the Development Agreement Statute, City adopted Resolution 2023-043 ("Development Agreement Procedures") authorizing the use of and

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4 establishing the procedures and requirements for the consideration of development agreements within the City;
WHEREAS, Government Code Section 65865 requires that an applicant for a development agreement hold a legal or equitable interest in the real property that is the subject of the development agreement;
WHEREAS, Developer has a leasehold interest in that certain real property located at 6638 Eastern Avenue in the City of Bell Gardens, County of Los Angeles, State of California, Assessor's Parcel Number 6328-007-032 (“APN”) (the “Site”), upon which Developer seeks to effectuate the Project;
WHEREAS, the Site is more particularly described in the Legal Description attached hereto as Exhibit “A,” the Site Plan attached hereto as Exhibit “B,” and the Floor Plan attached hereto as Exhibit “C”;
WHEREAS, the Site is located within the Mixed Use Commercial/Residential Zone in the City where Cannabis Retail sales may be conditionally permitted; WHEREAS, Developer affirms that it has a leasehold interest in the Site pursuant to a lease with the Property Owner for the purpose of carrying out the Project; WHEREAS, the Property Owner has provided notarized written consent to: (1) all terms of this Agreement, including, but not limited to, Sections 6.1 and 9.6 of this Agreement; and (2) recordation of this Agreement against the title of the Site. Such written consent agreement is attached hereto as Exhibit “D.”
WHEREAS, Government Code Section 65867.5 and the City Development Agreement Procedures require the Bell Gardens Planning Commission (“Planning Commission”) to conduct a public hearing to review a proposed development agreement; WHEREAS, on __________________, 2025, the Planning Commission, in a duly noticed and conducted public hearing, considered the recommendation of approval of this Agreement to the City Council;
WHEREAS, on __________________, 2025, the Planning Commission recommended City Council approval of this Agreement, which would allow Developer to operate the Project at the Site;
WHEREAS, on __________________, 2025, the Planning Commission also reviewed, considered, and approved Conditional Use Permit No. 2024-048; WHEREAS, on __________________, 2025, pursuant to Government Code Section 65867 and the City Development Agreement Procedures, the City Council, following a duly noticed and conducted public hearing, reviewed, considered, introduced and adopted by first reading of Ordinance No. 953, and, on __________________, the City Council approved for second reading and adopted Ordinance No. 953, authorizing the City’s engagement into this Agreement; WHEREAS, this Agreement is entered into pursuant to the Development Agreement Statute and the City’s Development Agreement Procedures;

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5 WHEREAS, the City and Developer desire to enter into this Agreement to: (i) facilitate the orderly development of the Site; (ii) create a physical environment that is consistent with and complements City's goals and visions; (iii) protect natural resources from adverse impacts; (iv) improve, upgrade, and create additional community facilities and infrastructure, enhance services, and assist in implementing the goals of the General Plan; and (v) reduce the economic risk of development of the Site to both City and Developer; and WHEREAS, the Parties intend, through this Agreement, to allow Developer to develop and operate the Project in accordance with the terms of this Agreement.

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

AGREEMENT
ARTICLE 1

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

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

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

Exhibit “A”: Legal Description
Exhibit “B”: Site Plan
Exhibit “C”: Floor Plan
Exhibit “D” Property Owner Consent
Exhibit “E” Security Plan
Exhibit “F” Conditional Use Permit No. 2024-048
Section 1.4. Definitions. In this Agreement, unless the context otherwise requires, the terms below have the following meanings:
a. “Additional Insured(s)” has the meaning set forth in Section 5.1 of this Agreement. b. “Additional City Approvals” means all ministerial and discretionary permits, licenses, or other similar entitlements, including any modifications or amendments thereto that must be secured by the Developer from the City in order to develop the Project on the Site, in addition to the Conditional Use Permit and the Business Regulatory Permit.

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6 c. “Agreement” means this Development Agreement and all Exhibits attached hereto. d. “Annual Community Benefits Fees” has the meaning set forth in Section 4.2(b) of this Agreement.
e. “AUMA” has the meaning as set forth in the Recitals, above. f. "Business Day” means any day except for Saturday, Sunday, any holiday that is observed by the City, or day that the City is not closed for business. g. “Business Regulatory Permit” means the business regulatory permit, as required in Bell Gardens Municipal Code Chapter 5.12 required for Cannabis Retail Activity issued by the Chief of Police, which can only be issued upon City approval of a Conditional Use Permit, State Cannabis License, and Additional City Approvals for each proposed Cannabis Retail Activity project.
h. “California Building Standards Codes" means the California Building, Mechanical, Plumbing, Electrical, Fire or other similar codes set forth in Title 24 of the California Code of Regulations, as may be adopted by the City, with amendments, and set forth in the Bell Gardens Municipal Code.
i. “California Cannabis Laws” means AUMA, MAUCRSA, CUA, MMP, and the regulations adopted and promulgated by the State Licensing Authorities pursuant to such laws, as such laws and regulations may be amended from time to time. j. “Cannabis” means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. "Cannabis" also means the separated resin, whether crude or purified, obtained from cannabis. "Cannabis" does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. For the purpose of this division, "cannabis" does not mean "industrial hemp" as defined by Section 11018.5 of the Health and Safety Code. Cannabis and the term "marijuana" may be used interchangeably.
k. “Cannabis Cultivation” means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis. Cannabis cultivation, as defined herein, does not include the personal cultivation at a private residence of up to six (6) plants as authorized under state law for personal use.
l. “Cannabis Distribution” means the procurement, sale, and transport of cannabis and/or cannabis products between those persons with requisite state and local government licenses to conduct permissible Commercial Cannabis Activities.
m. “Cannabis Manufacturing” means the compounding, blending, extracting, infusing, packaging, label or otherwise making or preparing a cannabis product. n. “Cannabis Product” means cannabis and such products that are intended for use on, or consumption by, an animal. Cannabis products are not considered food as defined in Health and

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7 Safety Code Section 109935, a drug as defined in Health and Safety Code Section 109925, or a cosmetic as defined in Health and Safety Code Section 109900. o. “Cannabis Retail Activities” means the retail sale and delivery of cannabis or cannabis products to customers. Delivery of cannabis and cannabis products shall also include the use of a technology platform by a cannabis retailer to conduct the commercial transfer of cannabis and cannabis products.
p. “CEQA” means the California Environmental Quality Act, as set forth in Division 13 (Commencing with Section 21000) of the California Public Resources Code, and the CEQA Guidelines as set forth in Title 14 (Commencing with Section 15000) of the California Code of Regulations.
q. “City” means the City of Bell Gardens, a municipal corporation and general law city. r. “City Council” means the City of Bell Gardens City Council. s. “City Development Agreement Procedures” has the meaning set forth in the Recitals, above.
t. “City Manager” means the City Manager of the City of Bell Gardens, or his or her designee(s).
u. “Community Benefits” has the meaning set forth in Section 4.1 of this Agreement. v. “Community Benefits Fund” has the meaning set forth in Section 4.2(c) of this Agreement.
w. “Complaining Party” has the meaning set forth in Section 8.2 of this Agreement. x. “Conditional Use Permit” means a conditional use permit and associated conditions of approval as set forth in Exhibit “F” and incorporated by reference herein, issued by the City to Developer pertaining to Developer’s development of the Project, pursuant to Bell Gardens Municipal Code Chapter 9.20 (Special Uses and Applicable Standards) and Section 9.20.160 (Cannabis Retail-Conditional Use).
y. “Cost Recovery Fees” has the meaning set forth in Section 4.3 of this Agreement. z. “CUA” has the meaning set forth in the Recitals, above. aa. “Days” shall mean calendar days unless otherwise noted. If a calendar day falls on Saturday, Sunday, holiday observed by the City or day in which the City is otherwise closed for City business, the final day shall be the next Business Day. bb. “Defaulting Party” has the meaning set forth in Section 8.2 of this Agreement. cc. “Developer” means Flora Hospitality Group, LLC, which shall reflect the owner or owners listed on the application for Business Regulatory Permit, or any transferee who has been assigned the rights, title, duties, obligations and interests of this Agreement pursuant to Section

9.1. dd. “Development Agreement Statute” has the meaning set forth in the Recitals, above.

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8 ee. “Development Agreement Procedures” has the same meaning as set forth in the Recitals, above.
ff. “Effective Date” has the meaning set forth in Section 1.7 of this Agreement. gg. “Exhibits” has the meaning set forth in Section 1.3 of this Agreement. hh. “Gross Receipts” means total revenue received or receivable by the Developer or other occupant on the Site from any Commercial Cannabis Activity on the Site or from operation of the Project on the Site, including: all sales; the total amount of compensation received or receivable for the performance of any act or service, of whatever nature it may be, for which a charge is made or credit whether or not such act or service is done as part of or in connection with the sale of materials, goods, wares, or merchandise; and gains realized from trading in stocks or bonds, interest discounts, rents, royalties, fees, commissions, dividends, or other remunerations, however designated. Included in "gross receipts" shall be all receipts, cash, credits and property of any kind or nature, without any deduction therefrom on account of the cost of the property sold, the cost of materials used, labor or service costs, interest paid or payable, or losses or other expenses whatsoever, except that the following shall be excluded therefrom:

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

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

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

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

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

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

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9 mm. “MCRSA” has the meaning set forth in the Recitals, above. nn. “Mortgage” has the meaning set forth in Section 6.1 of this Agreement. oo. “Non-Payment Penalty” has the meaning set forth in Section 4.7 of this Agreement. pp. “Notice of Non-Payment Penalty” has the meaning set forth in Section 4.7 of this Agreement.
qq. “Planning Commission” means the City of Bell Gardens Planning Commission as described in Bell Gardens Municipal Code Chapter 2.24.
rr. “Project” has the meaning set forth in the Recitals, above. ss. “Quarterly Report” has the meaning set forth in Section 4.6 of this Agreement. tt. “Site” has the meaning as set forth in the Recitals, above. uu. “Site Plan” means site plan that satisfies the requirements set forth in Bell Gardens Municipal Code Section 9.50.020; floor plans; and elevations, inclusive of proposed signage and façade improvements.
vv. “State Cannabis License(s)” means license(s) to conduct Cannabis Retail Activities issued by a State Licensing Authority to Developer for the Development of the Project on the Site. ww. “State Licensing Authority” means the state agency responsible for the issuance, renewal, or reinstatement of State Cannabis Licenses, or the state agency authorized to take disciplinary action against a business licensed under the California Cannabis Laws. xx. “Term” has the meaning set forth in Section 1.8 of this Agreement.

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

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

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

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10 Section 1.8. Term.
a. The term of this Agreement (the “Term”) shall be five (5) years commencing from the Effective Date.
b. This Agreement may be extended upon the conclusion of such initial five-year period for up to a five-year extension term not to exceed a total of ten (10) years, inclusive of the initial five-year term. Any extension shall be at the sole and absolute discretion of the City, provided that the Developer submits written notice of its desire to so extend this Agreement no less than one hundred eighty (180) days before the expiration of the initial five-year period or any following five-year extension term. The City Manager shall approve the extension in writing no later than ninety (90) days prior to the expiration of the initial five-year period subject to the following conditions: Developer understands and acknowledges the Term of this Agreement may only be extended if Developer is in compliance with the terms and conditions of California Cannabis Laws, this Agreement, the Conditional Use Permit, Additional City Approvals if any, the Business Regulatory Permit, the Bell Gardens Municipal Code, and State Cannabis License(s) and related rules and regulations at the time the written notice is submitted. Under no circumstances will the City extend the Term of this Agreement if the Developer has been issued written notice of default pursuant to Section 8.2 that has not yet been cured. The City Manager may, in its sole and absolute discretion, may approve a term extension of less than five (5) years so long as the total number of years, inclusive of the initial five-year terms and extensions, does not exceed a total of ten (10) years.

Developer Initials
c. Nothing in this Section 1.8 shall prohibit or otherwise restrict the termination of this Agreement in accordance with Section 1.9.

Section 1.9. Termination. This Agreement shall terminate upon the occurrence of any of the following events:
a. the expiration of the Term;
b. the Developer no longer has a possessory, legal or other equitable interest in the Site; c. the Developer has ceased all operations related to the Project on the Site for more than sixty (60) consecutive days;
d. mutual written consent of the Parties;
e. abandonment of Developer’s Conditional Use Permit applicable to the Project, or the failure of the Developer to commence operation of the Project on the Site within twelve (12) months following the issuance of a building permit, certificate of occupancy, temporary certificate of occupancy or similar document pursuant to Bell Gardens Municipal Code Section 5.64.040(K);

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11 f. revocation of Developer’s Conditional Use Permit due to a failure to abide by its conditions of approval (Exhibit “F”), incorporated by reference herein, pursuant to the process provided in Bell Gardens Municipal Code Section 9.62.010; g. revocation of Developer’s Business Regulatory Permit for the Project, pursuant to Bell Gardens Municipal Code Sections 5.64.050 and 5.12.100, if not appealed by the Developer;
h. City Council upholding of the revocation of Developer’s Business Regulatory Permit for the Project, if an initial revocation finding by the Chief of Police is appealed to the City Council by Developer;
i. unauthorized assignment of interest of the Developer in the Project or in the Site pursuant to Section 9.1 of this Agreement;
j. as set forth in Sections 8.4 and 8.5 of this Agreement; k. upon the occurrence of the entry of a final judgment or issuance of an order of a court with jurisdiction which such judgment or order directs the City to cancel this Agreement, after all appeals have been exhausted, as a result of any lawsuit filed against City to set aside, withdraw or abrogate the approval of the City Council of this Agreement, whereupon such termination, the Parties shall be mutually released from any further liability except as provided in Section 1.12, below.

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

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

Section 1.12. Survival of Certain Terms. The rights and obligations of the Parties which arise under Sections 1.11, 5.5, 5.6, 5.7, 5.8, 9.2, 9.3, 9.4, 9.5 and 9.6 of this Agreement and any right or obligation of the Parties in this Agreement, which, by its express terms or nature and context is intended to survive termination of this Agreement, will survive any such termination.

ARTICLE 2

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

Section 2.2.Permitted Uses and Operational Requirements. During the Term, Developer shall be permitted to develop, construct, and use the Site to carry out the Project, including for Cannabis Retail Activities, consistent with California Cannabis Laws, this Agreement, the Conditional Use Permit, Additional City Approvals, the Business Regulatory

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12 Permit, the Bell Gardens Municipal Code, and State Cannabis Licenses. Other commercial cannabis activities, including but not limited to Cannabis Cultivation, Cannabis Manufacturing, Cannabis Testing, and Cannabis Distribution are strictly prohibited. Further, subject to any limitations or prohibitions under state law, Developer shall reimburse the City within thirty (30) days following the receipt of a suitable detailed written invoice from the City for any and all of the City’s costs related to any emergency services response of the City to the Site (e.g., police and/or fire services) resulting from the Developer’s intentional neglect or violation of any Conditional Use Permit Condition or Business Regulatory Permit.

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

Section 2.4.Conditional Use Permit. Pursuant to Bell Gardens Municipal Code Chapter 9.20 and Section 9.20.160, Developer has obtained the necessary approvals pending the approval of this Agreement, to engage in Cannabis Retail Activities pertaining to the Project on the Site through the issuance of a Conditional Use Permit. Developer and Property Owner shall adhere to all of the conditions of approval set forth in Conditional Use Permit No. 2024-048, incorporated by reference herein (Exhibit “F”). Failure to comply with such conditions of approval shall constitute a breach of this Agreement.

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

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

Section 2.7.Security Plan. In accordance with the application requirements for a Conditional Use Permit, Developer has submitted a security plan for the operation of a Cannabis Retail facility, as set forth in fuller detail in Exhibit “E.” Developer represents that the security plan includes provisions for licensed security guards as required by Section 5.64.040(C) of the Bell Gardens Municipal Code, video surveillance, cash handling procedures, internal accounting controls, product handling and storage procedures, and a professional monitored alarm system. a. Video surveillance shall include, at a minimum, all site and facility entrances; all spaces accessible by the public, including points of sale; cash storage areas; and other areas necessary to protect the safety of employees and the public to ensure that Cannabis and Cannabis Products are received, handled, stored and sold in compliance with California’s Cannabis Laws, the Bell Gardens Municipal Code, the Conditional Use Permit and other applicable conditions as may be imposed by the City or any other local or state regulatory authority.

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13 b. Third-party security guards shall be properly trained and licensed by the Department of Consumer Affairs. Security may be armed so long as property licensing and insurance requirements are followed and met by the third-party operator providing such security services and such documentation is provided to the City in accordance with Section 9.2.

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

ARTICLE 3

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

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

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

Section 3.4. Changes mandated by Federal or State Law. The Site and Project shall be subject to subsequently enacted state or federal laws or regulations that may preempt the Bell Gardens Municipal Code, or mandate the adoption or amendment of local regulations, or are in conflict with this Agreement or local rules or guidelines. As provided in Section 65869.5 of the Development Agreement Statute, in the event state or federal laws or regulations enacted after the Effective Date prevent or preclude compliance with one or more provisions of this Agreement, such provisions of this Agreement shall be subject to modification or suspension by the Parties as provided in this Section 3.4. as may be necessary to comply with such state or federal laws or regulations. Upon a Party’s discovery of a subsequently enacted federal or state law meeting the requirements of this Section, such Party shall provide the other Parties with written notice of the state or federal law or regulation, and a written statement of the conflicts thereby raised with the provisions of the Bell Gardens Municipal Code or this Agreement. Promptly thereafter, the Parties shall meet and confer in good faith in a reasonable attempt to modify this Agreement, as necessary, to comply with such federal or state law or regulation provided City shall not be obligated to agree to any modification materially increasing its obligations or materially adversely affecting its rights and benefits hereunder. In such discussions, the Parties shall attempt to preserve the terms of this Agreement and the rights of Developer derived from this Agreement to the maximum feasible extent while resolving the conflict. If City, in its judgment, determines it necessary to modify this Agreement to address such conflict, City shall have the right and responsibility to do so, and shall

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14 not have any liability to Developer for doing so or be considered in breach or default of this Agreement. City also agrees to process, in accordance with the provisions of this Agreement, Developer's proposed changes to the Project that are necessary to comply with such federal or state law and that such proposed changes shall be conclusively deemed to be consistent with this Agreement without further need for any amendment to this Agreement, pursuant to Section 1.10.

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

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

ARTICLE 4

COMMUNITY BENEFITS, COST RECOVERY, RECORDKEEPING, REPORTING,

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

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

Section 4.3. Cost Recovery Fees. Developer shall be responsible for the processing and monitoring costs related to the Project, including but not limited to the processing and execution of this Agreement (“Cost Recovery Fees”) as described in this Section 4.3. a. Processing Fees. Processing fees shall include the direct and indirect costs that the City incurs in reviewing, processing and executing the Conditional Use Permit, this Agreement, and Additional City Approvals, including without limitation, staff time, legal fees, and consultant fees.
b. Monitoring Fees. Monitoring fees shall include the direct and indirect costs that the City incurs in inspecting, monitoring, investigating, and conducting compliance and enforcement actions for the purpose of confirming that the Project is in accordance with the terms of this Agreement, conditions of approval associated with the Conditional Use Permit, the operating procedures set forth in Chapter 5.64 of the Bell Gardens Municipal Code and Business Regulatory Permit, the Bell Gardens Municipal Code, and California Cannabis Laws.

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16 c. Billing and Payment. The City shall submit an invoice to Developer for Cost Recovery Fees on or before the fifth day of each month following the Effective Date of this Agreement. Owner shall pay the invoice within thirty (30) days of the date of the invoice issuance. Failure to timely pay Cost Recovery Fees shall be subject to the penalties and interest set forth in Sections 4.7 and 4.8 of this Agreement.

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

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

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

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

Section 4.7. Non-Payment Penalty. If Developer fails to make a timely payment concerning Community Benefits Fees or Cost Recovery Fees, as required by this Agreement, the City may impose a “Non-Payment Penalty.” A Non-Payment Penalty of one percent (1%) shall be applied to all past due Community Benefits Fees or Cost Recovery Fees. The City shall deliver to Developer a “Notice of Non-Payment Penalty.” Payment of the past due Community Benefits or Costs Recovery Fees, as applicable, and Non-Payment Penalty shall be in a single installment due on or before a date fifteen (15) days following delivery of the Notice of Non-Payment Penalty.

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

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

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

1.10 of this Agreement.

ARTICLE 5

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

Section 5.2. Commercial Property Insurance. Developer shall maintain commercial property insurance with coverage in an amount not less than One Million Dollars ($1,000,000) per occurrence, and Two Million Dollars ($2,000,000) general aggregate. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted. Such insurance policy shall name the City and City’s elected and appointed councils, boards, commissions, legislative bodies, officials, employees, and representatives as “Additional Insureds” by endorsement with respect to the performance of this Agreement and shall include either a severability of interest clause or cross- liability endorsement and other customary and reasonable endorsements and provisions approved by the City’s risk manager.

Section 5.3. Workers’ Compensation Insurance. Developer shall maintain workers’ compensation insurance for all its employees employed at or on the Project. Developer shall require each contractor and subcontractor working at or on the Project to provide workers’ compensation insurance for its respective employees. Developer indemnification of City set forth in Section 5.5 of this Agreement shall apply to Developer’s failure to maintain any such insurance.

Section 5.4. Evidence of Insurance. Evidence of the insurance in favor of the City required under Section 5.1 shall be provided to the City’s Risk Manager as of the Effective Date.

Thereafter, no Business Regulatory Permit for the Project shall be valid unless and until Developer furnishes satisfactory evidence of the other insurance required in Article 5 of this Agreement.

Current certification of insurance shall be kept on file with the City for the contract period and any additional length of time required thereafter. The City reserves the right to require complete, certified copies of all required insurance policies, at any time. In each case, the evidence of insurance provided to the City shall include satisfactory evidence that the insurance carrier shall give the City at least fifteen (15) days’ prior notice of the cancellation or reduction in coverage of each policy of insurance required in Article 5 of this Agreement.

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18 Section 5.5. Indemnification. The Developer and Property Owner, jointly and severally, agree to indemnify, defend with counsel acceptable to City, and hold harmless the City and City’s elected and appointed councils, boards, commissions, legislative bodies, officials, employees, and representatives from any and all claims, costs (including legal fees and costs), or liabilities of any kind arising out of or connected to any act or omission of Developer, Property Owner, or Developer’s or Property Owner’s contractor, subcontractor, agent, or representative related to its establishment or operation of the Project or arising out of or related to the approval or issuance of any permit, license, or approval by the City for the Project, except to the extent such claims, costs, and liabilities are caused by the sole negligence or willful misconduct of the City.

Developer and Property Owner agree that they shall be jointly and severally responsible for all costs incurred by the City in the event of a third party challenge related to such claims, costs, or liabilities.
_____________________
Developer Initials
____________________
Property Owner Initials
Section 5.6. Cooperation in Event of Legal Challenge. Developer and Property Owner shall defend and indemnify the City and the City’s elected and appointed councils, boards, commissions, legislative bodies, officials, employees, and representatives from any claim, action, liability, or proceeding that seeks to attack, set aside, void, or annul the Project or any of the proceedings, acts, or determinations taken, done, or made as a result of the City’s processing and approval of the Project. Developer and Property Owner’s obligation to defend and indemnify the City hereunder shall apply to any lawsuit or challenge alleging failure to comply with the requirements of any federal, state, or local law, including, but not limited to, general plan and zoning requirements and the CEQA. Developer and Property Owner’s obligations under this Section 5.6 shall include, but not be limited to, payment of all court costs and attorneys’ fees, all litigation-related costs, all costs of judgments and awards against the City, and all settlement costs, which arise out of the City’s processing and approval of the Project. The City shall notify the Developer and Property Owner promptly of any claim, action, or proceeding and reasonably cooperate in the defense. Upon receipt of such notification, the Developer and Property Owner shall assume the defense of the claim, action, or proceeding, including the employment of counsel satisfactory to the City, which approval shall not be unreasonably withheld. In the event of a disagreement between the Parties over litigation issues, the City shall have the authority to control the litigation and make litigation decisions for the City, including, but not limited to, settlement, or other disposition of the matter. If the City reasonably determines that having common counsel would create a conflict of interest between itself and Developer and/or Property Owner, then the City may hire counsel for its own defense, and Developer and Property Owner shall jointly and severally pay the City the reasonable attorneys and costs of such counsel within thirty (30) days after receiving an itemized invoice from the City. Developer and Property Owner shall further pay for all costs and fees related to any additional investigation or study, or for supplementing or revising any document, including, without limitation, environmental documents for the Project.

Section 5.7. Failure to Indemnify. The failure of Developer or Property Owner to indemnify the City, as required by this Agreement, shall constitute a material breach of this Agreement and of any applicable Conditional Use Permit, Business Regulatory Permit, and Additional City Approvals, which shall entitle the City to all remedies available under law, including, but not limited to, specific performance and damages. Failure to indemnify shall constitute grounds upon which the City may rescind its approval of any entitlement, permit, or

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19 license related to the Project, or any portion thereof, and a waiver of Developer or Property Owner’s right to file a claim, action, or proceeding against the City and City’s elected and appointed councils, boards, commissions, legislative bodies, officials, employees, and representatives based upon the City’s rescission or revocation of any applicable Conditional Use Permit, Business Regulatory Permit, and Additional City Approvals, or City’s failure to defend any claim, action, or proceeding based upon Developer or Property Owner’s failure to indemnify the City.

Section 5.8. Waiver of Damages; Referendum. Notwithstanding anything in this Agreement to the contrary, the Parties acknowledge that City would not have entered into this Agreement had it been exposed to liability for damages from the Developer and, therefore, the Developer and Property Owner hereby waive all claims for damages against City for breach of this Agreement. The Developer and Property Owner further acknowledge that under the Development Agreement Statute, land use approvals (including development agreements) must be approved by the City Council and that, under law, the City Council's discretion to vote in any particular way may not be constrained by contract. The Developer and Property Owner therefore waive all claims for damages against City in the event that this Agreement or any Project approval is: (1) not recommended for approval or approved by the Planning Commission, City Council (as the case may be); or (2) is approved by the City Council, but with new changes, amendments, conditions, or deletions to which Developer and/or Property Owner is opposed. Developer further acknowledges that, as an instrument which must be approved by ordinance, this Agreement is subject to referendum; and that, under law, the City Council's discretion to avoid a referendum by rescinding its approval of the underlying ordinance may not be constrained by contract, and Developer and Property Owner waive all claims for damages against City in this regard.

Section 5.9. Initiative Measures/Moratoria. The Parties intend this Agreement to be a legally binding contract which shall be exempt from any initiative measure or land use moratorium affecting the consideration and approval of parcel or subdivision maps (whether tentative, vesting tentative or final), building permits, occupancy certificates or other entitlements to use approved, issued or granted within the City. This Agreement shall apply to the Project to the extent such initiative measure or municipal moratorium or other limitation is inconsistent or in conflict with this Agreement. Should an initiative measure or moratorium or other limitation be enacted by the citizens of City which would preclude construction of all or any part of the Project, and to the extent such initiative, measure, moratorium, referendum, statute, ordinance, or other limitation be determined by a court of competent jurisdiction to invalidate or prevail over all or any part of this Agreement, neither Developer nor Property Owner shall have recourse against City pursuant to this Agreement for damages. The foregoing shall not be deemed to limit right of Developer or Property Owner to appeal any such determination that such initiative measure, moratorium, or other limitation invalidates or prevails over all or any part of this Agreement. The City agrees to cooperate with Developer or Property Owner in all reasonable manners in order to keep this Agreement in full force and effect, provided that Developer or Property Owner shall, jointly and severally, be obligated to reimburse the City for its actual and reasonable expenses incurred directly in connection with such cooperation and the City shall not be obligated to institute a lawsuit or other court proceedings in such cooperation.

Section 5.10. Bankruptcy. The obligations of this Agreement shall not be dischargeable in bankruptcy.

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20 ARTICLE 6

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

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

ARTICLE 7

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

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

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

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

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

ARTICLE 8

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

Section 8.2. Notice. The “Complaining Party” may not assert that an event of default has occurred against the “Defaulting Party” unless the Complaining Party has first given written

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21 notice to the Defaulting Party, specifying the nature of the default and the manner in which the default may be cured, if known to the Complaining Party. Any failure or delay by the Complaining Party in giving such notice shall not waive such default or waive any of the Complaining Party’s remedies.

Section 8.3. Cure. The Defaulting Party shall have thirty (30) days from the receipt of notice to cure the default except as provided in the next sentence. In the case of non-monetary defaults, if the default cannot be reasonably cured within such time, the default shall be deemed cured if:
a. The cure is commenced at the earliest practicable date following receipt of notice; b. The cure is diligently prosecuted to completion;
c. At the earliest practicable date (but in no event later than ten (10) days after receiving the notice of default), the Defaulting Party provides written notice to the Complaining Party that the cure cannot be reasonably completed within such thirty (30) day period; and
d. The default is cured at the earliest practicable date, but in no event later than sixty (60) days after receipt of the first notice of default.

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

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

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

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

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

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

ARTICLE 9

ADDITIONAL GENERAL/MISCELLANEOUS PROVISIONS
Section 9.1. Assignment.
a. City Council Approval Required. Developer shall not have the right to sell, assign, or transfer all or any part of its rights, title, duties, obligations, and interests in all or a portion of Site, or Project, subject to or a part of this Agreement, to any individual, firm, corporation, partnership, or entity during the Term of this Agreement without the advance approval by the City Council through a majority vote. This assignment prohibition also applies to the corporate and business entities of Developer that are a Party to this Agreement. Developer shall initiate a request for the sale, assignment, or transfer of the rights, title, duties, obligations and interests in the Site or Project that is part of this Agreement by submitting a written request to the City Manager. The proposed transferee must provide evidence and any other documents required by the City to evidence compliance with California Cannabis Laws, the Bell Gardens Municipal Code and their related statutes and regulations and any other information deemed necessary to effectuate the transfer.
b. Escrow Account. When making a written request to City Manager for the assignment of rights pursuant to this Agreement, Developer shall open an escrow account and deposit an amount of Five Thousand Dollars ($5,000) into the escrow account. If the direct and indirect costs of staff time, consultant fees, legal fees and other costs exceed the deposited amount prior to a City Council vote pursuant to subsection (a) above, the City reserves the right to require Developer to deposit an additional Five Thousand Dollars ($5,000) into the escrow account to cover direct and indirect costs. Any unused fees remaining in the escrow account following the City Council vote shall be returned to Developer no later than thirty (30) days after the City Council action. c. Renegotiation of Community Benefits. The City reserves the right to renegotiate Community Benefits with the proposed transferee pursuant to Article 4. d. Effectuation of Assignment. Any sale, assignment, or transfer of the rights, obligations, or interests in this Agreement shall only be effective upon the issuance of a Business Regulatory Permit to the party to whom such sale, assignment, or transfer is made as required by Chapter 5.12 and Section 5.64.020 of the Bell Gardens Municipal Code.

Any assignment or transfer prohibited by this Agreement will be considered an

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23 immediate material breach of this Agreement and City may elect to immediately terminate this Agreement.
e. Assumption of Obligations. Upon the effectuation of an assignment pursuant to subsection (d) above, the transferee shall expressly and unconditionally assume all rights and obligations of the Developer pursuant to this Agreement.

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

DEVELOPER: CITY:

Flora Hospitality Group
1100 Glendon Ave, PH-9
Los Angeles, CA 90024
Attn: Noelle Frontz
(323) 496-9041
[email protected]
PROPERTY OWNER:

James N. Tate, III
810 Madrid Ave.

Torrance, CA 90501
(310) 991-3405
City of Bell Gardens
7100 Garfield Ave.

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

Olivarez Madruga Law Organization, LLP
500 South Grand Ave., 12th Floor
Los Angeles, CA 90071
Attn: Stephanie Vasquez
(213) 744-0099
[email protected]
Section 9.3. Governing Law and Venue. This Agreement shall be interpreted and governed according to the laws of the State of California. In the event of litigation between the Parties, venue, without exception, shall be in the Los Angeles County Superior Court of the State of California. If, and only if, applicable law requires that all or part of any such litigation be tried exclusively in federal court, venue, without exception, shall be in the Central District of California located in the City of Los Angeles, California.

Section 9.4. Severability. If this Agreement in its entirety is determined by a court to be invalid or unenforceable, this Agreement shall automatically terminate as of the date of final entry of judgment. If any term or provision of this Agreement shall be determined by a court to be invalid and unenforceable, or if any term or provision of this Agreement is rendered invalid or unenforceable according to the terms of any federal or state statute, any provisions that are not invalid or unenforceable shall continue in full force and effect and shall be construed to give effect

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24 to the intent of this Agreement. The Parties expressly agree that each Party is strictly prohibited from failing to perform any and all obligations under this Agreement on the basis that this Agreement is invalid, unenforceable, or illegal. By entering into this Agreement, each Party disclaims any right to tender an affirmative defense in any arbitration or court of competent jurisdiction, that performance under this Agreement is not required because the Agreement is invalid, unenforceable, or illegal.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Section 9.21. Recordation of Development Agreement. The City Clerk shall cause a copy of this Agreement to be recorded against title of the Site in accordance with state law. [SIGNATURES APPEAR ON THE FOLLOWING PAGE]

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

CITY
City of Bell Gardens, a municipal
corporation
By:

Michael B. O’Kelly
Bell Gardens City Manager

Date:

Approved as to Form
By:

Stephanie Vasquez
City Attorney

Date:

DEVELOPER
Flora Hospitality Group, LLC
[Notarized Signature Required]
By:_______________________________
Name: ___________________________
Title:______________________________
Date:

PROPERTY OWNER
James N. Tate, III
[Notarized Signature Required]
By:______________________________
Name:____________________________
Title:_____________________________
Date: ___

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27 EXHIBIT “A”

LEGAL DESCRIPTION OF SITE

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28 EXHIBIT “B”

SITE PLAN

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29 EXHIBIT “C”

FLOOR PLAN

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30 EXHIBIT “D”
PROPERTY OWNER’S CONSENT AGREEMENT

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31 EXHIBIT “E”

SECURITY PLAN

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32 EXHIBIT “F”

CONDITIONS OF APPROVAL

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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 Ordinance No. 952 to Authorize a Development Agreement by and between the City of Bell Gardens, Flora Hospitality Group, LLC, and James N. Tate III Trust relating to the property located at 6638 Eastern Avenue in the City of Bell Gardens
DATE:March 24, 2025
RECOMMENDATION:

It is staff’s recommendation that the City Council waive full reading and introduce Ordinance No. 952, by title only, to approve the proposed Development Agreement No. 2024-048 for a cannabis retail storefront at 6638 Eastern Avenue.

BACKGROUND/DISCUSSION:

Flora Hospitality Group, LLC (Applicant) proposes to establish a cannabis retail use storefront (Project) at 6638 Eastern Avenue (Subject Site). The Project would include the tenant improvements to an approximately 3,782 square-foot (SF) portion of the existing commercial structure, site improvements to the parking area with a total of six (6) new parking spaces (including one parking space for Americans with Disabilities Act of 1990 (ADA) compliance), two (2) electric vehicle (EV) charging capable spaces, one (1) loading space, 16 new bicycle parking spaces, and operation of a cannabis retail use inclusive of a 1,588 SF customer-accessible retail area, and 2,194 SF employee-only access space that would be comprised of a vault, intake and processing room, staff restroom, security office, camera room, a driver and dispatch room, staff breakroom, staff meeting room, a media room, and manager’s office. The Subject Site is located within the Mixed Use (Commercial/Residential) (MU) General Plan Land Use Element designation and within the Mixed-Use (Commercial/Residential) (M-U) Zone. The MU Land Use designation and Zone M-U refer to a combination of commercial and residential uses working in tandem to supply the community with “downtown living opportunities.”
At the regularly scheduled Planning Commission meeting of February 19, 2025, the Planning Commission determined with a 3-1-1 vote that the Project was categorically exempt from the California Environmental Quality Act (CEQA) (Pub. Res. Code § 21000 et seq.), approved CUP No. 2024-048 (Resolution No. #PC 2025-02) (Attached) and recommended to the City Council approval of Ordinance No. 952 (Resolution No. #PC 2025-03) (Attached) to

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authorize the entering into and execution of Development Agreement (DA) No. 2024-048 (Attached). The adopted CUP conditions of approval (Attached) require that the operation of the cannabis retail use follow the requirements of the City and California Department of Cannabis Control (DCC) and address any potential compatibility concerns.

At the regularly scheduled City Council meeting of March 10, 2025, staff made a presentation regarding the proposed DA, followed by a presentation by the Project Applicant. The City Council deliberated the item materials, presentations, and directed staff to revise the ordinance to require the Applicant and Property Owner to effectuate the Development Agreement within 60 days after the Ordinance becomes effective, and continued the hearing by a 3-2-0 vote. The continued public hearing will now be heard at the next regularly scheduled City Council meeting of March 24, 2025. All other DA terms remain the same.

A detailed analysis of the Project’s compliance with the City’s development standards and the DA terms can be found in the March 10, 2025 City Council staff report attached, herein.

ENVIRONMENTAL REVIEW:

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.), Ordinance No. 952 has been determined to be categorically exempt pursuant to CEQA Guidelines Section 15301 (Existing Facilities) and Section 15061(b)(3) (Common Sense Exemption).

The Project would authorize a cannabis retail use within an already existing commercial structure, inclusive of tenant improvements, to support a new commercial use for up to 10 years. No additional floor area is proposed. Additionally, a cannabis retail use has similar impacts as other typical commercial uses and would be subject to the same or more restrictive development and operating standards as other commercial uses. This Project would comply with building, energy efficiency, and land use and development standard provisions. Therefore, it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.

CONCLUSION:

The DA is designed to facilitate ongoing communication and collaboration between the Applicant, who would be the licensee, and the local community addressing concerns and ensuring the retail storefront aligns with community values and interests by requiring the Applicant to submit evidence of compliance with all terms and conditions to the City on an annual basis. Balance would be promoted with the operational flexibility built into the DA addressing unforeseen challenges or changes in circumstances, allowing for adjustments as needed through City Council approval. Compliance with the DA and its terms and conditions will be subject to an annual review, whereby if the City determines that the Applicant is in noncompliance status with the DA, the City may modify or terminate the DA.

Adoption of Ordinance No. 952 and the execution of the proposed DA would ensure vested development rights in exchange for community benefits dedicated to revenue for youth programs, housing and homelessness issues, and other discretionary items. Therefore, staff recommends approval of the proposed Development Agreement, which would permit a

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cannabis retail use at the Subject Site for an initial five (5)-year term, subject to an option to extend the term for an additional five (5) years, for a total 10-year term.

FISCAL IMPACT:

If Ordinance No. 952 is approved, the Applicant would be required to make an up-front payment of $100,000 upon the effective date of the DA and renew the contribution annually following the execution of the DA, every January (Annual Community Benefit). The Applicant would also be required to make quarterly contributions equal to seven percent (7%) of gross receipts (Quarterly Community Benefit). Pursuant to the DA terms, 80 percent (80%) of these funds would be dedicated to the City’s youth and recreational programming and the City’s housing programs. Under the DA, the Applicant would also be responsible for the cost of staff time spent on the negotiation and preparation of a development agreement and monitoring activities to ensure compliance with the DA, CUP, BGMC, and other applicable laws and regulations.

APPROVALS:

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

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ORDINANCE NO. 952

AN ORDINANCE AUTHORIZING THE EXECUTION OF A

DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF BELL
GARDENS, FLORA HOSPITALITY GROUP, LLC, AND JAMES N. TATE III TRUST RELATING TO THE PROPERTY LOCATED AT 6638

EASTERN AVENUE IN THE CITY OF BELL GARDENS
WHEREAS, the City of Bell Gardens (“City”) is a general law city, incorporated under the laws of the State of California; and
WHEREAS, the City Planning Commission, on February 19, 2025, considered and recommended to the City Council approval of the Development Agreement by and between the City, Flora Hospitality Group, LLC, and James N. Tate III Trust (“Development Agreement”), which is incorporated herein by reference as Exhibit 2 to the Staff Report; and
WHEREAS, after due notice, the City Planning Commission and the City Council conducted public hearings on this matter; and
WHEREAS, pursuant to Government Code Section 65864 et. seq, and City Council Resolution No. 2023-043 (“Development Agreement Procedures”), the City Planning Commission transmitted to the City Council its findings and recommendations through the adoption of Resolution #PC 2025-03; and
WHEREAS, the Development Agreement is in the public interest and is consistent with the City’s General Plan; and
WHEREAS, Policy 1 of the General Plan’s Land Use Element emphasizes the City’s commitment to open communication and seek public input; and WHEREAS, the deliberation of the Ordinance has been subject to a public hearing process that has been duly noticed for the purpose of seeking public input and participation, and community members will continue to provide public input for individual projects resulting from ordinance implementation and is therefore consistent with Policy 1; and
WHEREAS, Policy 3 of the General Plan’s Land Use Element promotes compatible commercial development to emphasize commercial identity and to enhance the appearance, potential economic vitality, and revitalization of commercial areas in the City; and
WHEREAS, the Project would reactivate a currently vacant commercial parcel resulting in a planned commercial complex that includes cannabis retail storefront thereby enhancing the economic vitality of the surrounding commercial areas and is therefore consistent with Policy 3; and

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WHEREAS, Policy 5 of the General Plan’s Land Use Element emphasizes the provision of an environment to stimulate local employment, property values, community stability, and the economic vitality of existing local businesses; and WHEREAS, the introduction of a cannabis retail use will promote an economic diversity of the City’s commercial zone in order to ensure community stability and economic vitality of existing businesses and is therefore consistent with Policy 5; and WHEREAS, on March 10, 2025, the City Council conducted a duly noticed hearing and considered all public comments received before and during the public hearing, the presentation by City staff, the relevant staff report, the Development Agreement and the findings and recommendations of the City Planning Commission; and WHEREAS, after consideration of the Ordinance, the City Council directed staff to revise the Ordinance to require the Applicant and Property Owner to effectuate the Development Agreement within sixty (60) days after the Ordinance becomes effective, and continued the hearing by a 3-2-0 vote; and
WHEREAS, on March 24, 2025, the City Council reopened the public hearing, considered all additional public comments received before and during the public hearing, the presentation by City staff, the relevant staff report, the revised Ordinance, and Development Agreement.

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

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

SECTION 2. The City Council finds, with respect to the Development Agreement, that it:
(i) Is consistent with the objectives, policies, general land uses and programs specified in the General Plan;
(ii) Promotes the public health, safety, and general welfare; (iii) Is just, reasonable, fair, and equitable under the circumstances; and (iv)Provides sufficient benefit to the community to justify entering into the agreement.

SECTION 3. The City Council hereby approves Development Agreement No. 2024-048 and authorizes the City Attorney to approve as to form and make clarifying changes and further authorizes and directs the City Manager to execute the Development Agreement in the name of the City of Bell Gardens.

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SECTION 5.If any section, subsection, sentence, clause, phrase, or portion of this Ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have adopted this Ordinance, and each section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, or portions might subsequently be declared invalid or unconstitutional.

PASSED, APPROVED AND ADOPTED this day of , 2025.

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 Ordinance No. 952 was introduced and placed upon its first reading at a regular meeting of the Bell Gardens City Council held on March 24, 2025 and that thereafter said ordinance was duly adopted at a regular meeting of the Bell Gardens City Council held on ________________________, 2025 and was approved and passed by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:
____________________________
Daisy Gomez, City Clerk

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1 DEVELOPMENT AGREEMENT NO. 2024-048

BETWEEN

THE CITY OF BELL GARDENS
AND

FLORA HOSPITALITY GROUP, LLC

RECORDING REQUESTED BY

AND WHEN RECORDED MAIL
TO:

City of Bell Gardens
City Hall
7100 Garfield Ave.

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4 establishing the procedures and requirements for the consideration of development agreements within the City;
WHEREAS, Government Code Section 65865 requires that an applicant for a development agreement hold a legal or equitable interest in the real property that is the subject of the development agreement;
WHEREAS, Developer has a leasehold interest in that certain real property located at 6638 Eastern Avenue in the City of Bell Gardens, County of Los Angeles, State of California, Assessor's Parcel Number 6328-007-032 (“APN”) (the “Site”), upon which Developer seeks to effectuate the Project;
WHEREAS, the Site is more particularly described in the Legal Description attached hereto as Exhibit “A,” the Site Plan attached hereto as Exhibit “B,” and the Floor Plan attached hereto as Exhibit “C”;
WHEREAS, the Site is located within the Mixed Use Commercial/Residential Zone in the City where Cannabis Retail sales may be conditionally permitted; WHEREAS, Developer affirms that it has a leasehold interest in the Site pursuant to a lease with the Property Owner for the purpose of carrying out the Project; WHEREAS, the Property Owner has provided notarized written consent to: (1) all terms of this Agreement, including, but not limited to, Sections 6.1 and 9.6 of this Agreement; and (2) recordation of this Agreement against the title of the Site. Such written consent agreement is attached hereto as Exhibit “D.”
WHEREAS, Government Code Section 65867.5 and the City Development Agreement Procedures require the Bell Gardens Planning Commission (“Planning Commission”) to conduct a public hearing to review a proposed development agreement; WHEREAS, on __________________, 2025, the Planning Commission, in a duly noticed and conducted public hearing, considered the recommendation of approval of this Agreement to the City Council;
WHEREAS, on __________________, 2025, the Planning Commission recommended City Council approval of this Agreement, which would allow Developer to operate the Project at the Site;
WHEREAS, on __________________, 2025, the Planning Commission also reviewed, considered, and approved Conditional Use Permit No. 2025-048; WHEREAS, on __________________, 2025, pursuant to Government Code Section 65867 and the City Development Agreement Procedures, the City Council, following a duly noticed and conducted public hearing, reviewed, considered, introduced and adopted by first reading of Ordinance No. 953, and, on __________________, the City Council approved for second reading and adopted Ordinance No. 953, authorizing the City’s engagement into this Agreement; WHEREAS, this Agreement is entered into pursuant to the Development Agreement Statute and the City’s Development Agreement Procedures;

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AGREEMENT
ARTICLE 1

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

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9.1. dd. “Development Agreement Statute” has the meaning set forth in the Recitals, above.

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

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

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

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Bell Gardens City CouncilApril 14, 2025

Bell Gardens City Council
April 14, 2025