Bell Gardens City Council
May 12, 2025

28 EXHIBIT “A”

LEGAL DESCRIPTION OF SITE

29 EXHIBIT “B”

SITE PLAN

30 EXHIBIT “C”

FLOOR PLAN

31 EXHIBIT “D”
PROPERTY OWNER’S CONSENT AGREEMENT

32 EXHIBIT “E”

SECURITY PLAN

33 EXHIBIT “F”

CONDITIONS OF APPROVAL

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: Mona Mossayeb, Acting City Planner
SUBJECT:Consideration of Conditional Use Permit No. 2023-073 and Recommendation to Adopt Ordinance No. 957 to Approve a
Proposed Development Agreement for a Cannabis Retail Use (“KureLeaf”) at 7821 Eastern Avenue (File No. 2023-073) DATE: April 16, 2025
RECOMMENDATION: It is staff’s recommendation that the Planning Commission:

1.Determine that Conditional Use Permit (CUP) No. 2023-073 and Ordinance No. 957 for Development Agreement (DA) No. 2023-073 are categorically exempt from the California Environmental Quality Act (CEQA) pursuant to State CEQA Guidelines Section 15061 (b)(3) (Common Sense Exemption) and Section 15301 (Existing Facilities); and

2.Adopt Resolution #PC 2025-10 approving CUP No. 2023-073, authorizing tenant and site improvements to an approximately 1,748 square-foot (SF) commercial building and authorize a cannabis retail storefront, subject to conditions of approval; and

3.Adopt Resolution #PC 2025-11 recommending the City Council to adopt Ordinance No. 957 authorizing the City of Bell Gardens (City) to enter into and execute a DA by and between the City of Bell Gardens, Francisco Aguirre Jr., and the Eastern Avenue Holdings, LLC, to permit a cannabis use for a five (5)-year term, with the option to extend the DA for an additional five (5) years for a total 10- year term in exchange for public benefits.

BACKGROUND AND SITE DESCRIPTION:

Francisco Aguirre Jr. (Applicant), requests the approval of a cannabis retail use which include tenant improvements to an existing and vacant one (1)-story, 1,748 SF commercial building (Project) on property located at 7821 Eastern Avenue (Subject Site).

The Project would involve the tenant improvement of the structure, exterior improvements resulting in approximately 553 SF of publicly accessible retail area and 1,195 SF of employee-only area, as shown in Table 1 below.

Table No. 1. Distribution of Uses
Square Feet Use
238 Lobby
315 Retail Area
400 Employee Area
41 Secure Vault
193 Employee Break Area
83 Office
56 Restroom
422 Miscellaneous Backend
1,748 Approximate Total
The Subject Site is identified by the Los Angeles County Office of the Assessor as Assessor’s Identification Number (AIN) 6227-018-002, a parcel of approximately 6,417 SF in size. The Subject Site is located within the Mixed-Use Residential/Commercial (M- U) Zone and within the Mixed Use (Commercial/Residential) (MU) General Plan Land Use Element designation. Zone M-U conditionally permits a cannabis retail use subject to the acquisition of a CUP.

Table No. 2, below, summarizes the zoning, land use designations, and uses for properties surrounding the Subject Site.

Table No. 2. Surrounding Land Uses
North East
General
Plan MU General
Plan VHDR
Zone M-U Zone R-3
Use Commercial Use Residential / Vacant
South West
General
Plan MU General
Plan MU
Zone M-U Zone M-U
Use Commercial Use Residential
The Subject Site is currently improved with a vacant one (1)-story, 1,748 SF commercial building. According to the City business regulatory permit records, the last business to occupy the site was a rental store that closed its operation in May 2017.

PROJECT DESCRIPTION:

The Applicant is requesting a CUP and a DA to establish certain rights to authorize the development and operation of the cannabis retail use, operated by KureLeaf, at the Subject Site.

The Project proposes tenant improvements to the commercial building, inclusive of a 533

SF customer-accessible retail area, and backend use area of 1,195 SF with employee- only access that would be comprised of a vault, office, staff restroom, staff breakroom, and office; a total of three (3) parking spaces (including one parking space for Americans’ with Disabilities Act of 1990 (ADA) compliance), one (1) loading space, 16 new bicycle parking spaces, and landscaping.

ANALYSIS:

General Plan Consistency
The Subject Site is designated in the City’s General Plan Land Use Element as Mixed Use (Commercial/Residential) (MU) which has been concentrated on parts of Eastern Avenue and Gage Avenue to accommodate a range of uses. This designation refers to a combination of commercial and residential uses working in tandem to supply the community with much needed housing and commercial facilities.

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. The Project proposes to reactivate a currently vacant site and would comply with the applicable development standards and locational siting requirements to enhance the economic viability of the surrounding commercial areas and would be consistent with Policy 3.

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. The introduction of a cannabis retail use would promote economic diversity within the City’s commercial zones and provide local employment opportunities while still regulating existing businesses. Therefore, the proposed use is consistent with Policy 5.

Zoning Consistency
The corresponding zone for the MU Land Use Element designation is the Mixed- Use/Residential (M-U) Zone, which conditionally permits a cannabis retail use subject to certain locational siting requirements and development standards. As explained in further detail below, the proposed use is consistent with the applicable zoning standards.

Compliance with Commercial Zone Development Standards
The Subject Site is an approximately 6,417 SF rectangularly shaped parcel of land currently developed with an existing vacant, one-story 1,748 SF commercial building. The structure is considered nonconforming to today’s standards based on its age, and the lot is considered nonconforming due to its size. Nonconforming status is obtained when any lot, use, or structure that was lawfully established and in compliance with applicable laws no longer complies due to subsequent changes in law.

The minimum lot size for Zone M-U is 15,000 square feet except for preexisting lots with a deed or contact of sale recorded prior to the minimum lot size requirement was adopted after the City’s incorporation. According to Los Angeles County records, the 1,748 SF commercial building was constructed in the year 1952, prior to the City’s incorporation in 1961. Therefore, the Subject Site is consistent with BGMC provisions for lot standards due to its nonconforming status.

Yard Setbacks
BGMC Table 9.12B provides the applicable yard setback requirements for properties zoned M-U. As stated above, according to Los Angeles County records, the structure was constructed in 1952, prior to the City’s incorporation and prior to the adoption of current BGMC setback requirements, which were adopted in 2007. At the time of construction, the existing structure was lawfully approved and constructed in compliance with all applicable ordinances/regulations which required zero setbacks and is, therefore, considered legal nonconforming due to building development standards. Pursuant to BGMC Section 9.64.060(C)(2), nonconforming structures that do not comply with setback requirements may be remodeled so long as they comply with the BGMC Title 6 (Building and Construction), and all other applicable development standards contained in Title 9 (Zoning and Planning Regulations). Nonconforming nonresidential structures are to be terminated within 40 years of nonconforming status, or 2047, if the building were to remain vacant. However, since a new use is proposed, the nonconforming status of the structure would justify a continued zero-foot (0’) front yard setback adjacent to Eastern Avenue as well as a zero-foot (0’) setback at the rear yard as demonstrated in Table No. 3, below.

Table No. 3. Yard Setback Analysis
Yard Required Provided Complies?
Front (East) 5 feet 2’-8” feet Yes, due to legal nonconforming status North Side None 35’-9” Yes
South Side None None Yes
Rear (East) 10 feet 17’-1” Yes
Lot Coverage
As proposed, the Project would comply with lot coverage provisions found in BGMC Table

9.12B, which permits up to 90% coverage. The Subject Site is an approximately 6,417 SF parcel of land and with the Project’s structure at approximately 1,748 SF. The existing commercial building would occupy approximately 27% of the Subject Site, and therefore complies with lot coverage maximums.

Height
Chapter 9.04 of the BGMC requires height to be measured from the average natural grade around the perimeter of the structure to the highest point of the coping of the proposed flat roof. Structures in Zone M-U are restricted to a maximum height of 60 feet (60’). The existing structure is 13 feet and 5 inches (13’-5”) and no increase in height is proposed.

The Project would, therefore, comply with maximum height limitations.

Screening of Mechanical and Utility Equipment
The Project would comply with the requirement that outside utility equipment such as utility meters, heating, ventilation, and air conditioning (HVAC) equipment, et cetera, be screened from public view from the public right-of-way. The Project would include HVAC and odor mitigation equipment on the structure’s roof and would comply with screening requirements as depicted in the Project’s elevations.

Mechanical Equipment
The Project would comply with the screening requirements pursuant to BGMC Section

9.12.040. All mechanical equipment would be shielded with a decorative, fiber cement

siding screen to ensure no such equipment would be visible from the street level and placed at least six inches (6”) below the top of the lowest building parapet or decorative screen. As proposed, rooftop screening material and color would continue to be architecturally compatible with the primary building and adjacent structures. HVAC equipment, et cetera, would continue to be screened from public view and would not be visible from the public rights-of-way.

Landscaping
BGMC Section 9.34.030 generally requires all setback areas and a minimum of five percent (5%) of the parking area to be landscaped with live plant materials. Based on a lot size of 6,417 SF, 321 SF of the Subject Site would be required to be landscaped pursuant to current BGMC requirements. Minimal landscaping currently exists at the Subject Site and no landscaping was required when the structure was legally established.

Due to the Subject Site’s nonconforming status as it relates to setback requirements and no proposed expansion, no new landscaping would be required. However, the Applicant has agreed to provide 332 SF of landscaping to improve the Subject Site.

Lighting
The Applicant proposes to replace the existing exterior lighting fixtures with three (3) new wall-mounted lighting fixtures and one (1) light pole as demonstrated in the Lighting Plan.

The Lighting Plan depicts the lighting coverage for each of the proposed new light fixtures, establishing that the majority of the parking lot area including adjoining parking lot area walls would be well-illuminated with no impact to neighboring properties. If approved, the Project would enhance the retail experience with a strong sense of safety and unique community identity.

Parking
A cannabis retail use must provide off-street parking for “business general” uses as set forth in BGMC Section 9.38.050, or one parking space per 400 SF. As demonstrated in Table No. 4, below, a 1,748 SF commercial use would require the provision of five (5) parking spaces (inclusive of two (2) electric vehicle (EV) charging capable spaces), one (1) loading space, and two (2) bicycle spaces. However, due to the size constraints of the Subject Site, it is not possible to provide the required parking spaces at the Subject Site.

Pursuant to BGMC Section 9.38.090(I)(1)(a)(v), the Applicant is proposing to provide eight (8) bicycle parking racks in lieu of two (2) parking spaces. With the in-lieu bicycle parking, the Project would provide three (3) newly striped vehicle parking spaces (including an ADA space and two (2) EV charging capable spaces), one (1) loading space, and 16 bicycles parking spaces (two (2) required, eight (8) as replacements for vehicle parking at a ratio 1:4, and six (6) additional bicycle spaces) as demonstrated in Table No. 4, below.

Table No. 4. Parking Analysis
Required Provided
Required Automobile Parking – § 9.38.050(C)(2)
General
Business: 1 space per 400 SF 1,748 SF/ 400 5 spaces 3
Required Bicycle Parking – § 9.38.050(D)(2)

General
Business: 1 space per 1,000 SF 1,748 SF/ 1000 2 spaces 2 Required Bicycle Parking – § 9.38.050(E)
For sites with 0 - 9 parking spaces 2 spaces 2
Bicycle Parking Replacement – § 9.38.090(I)(1)(a)(v)
4 bicycle spaces replace 1 standard automobile parking 8 bicycle spaces 14
Loading Facilities
BGMC Section 9.38.110(B) requires a minimum 250 SF loading space where the gross floor area of all buildings on a lot or parcel is less than 20,000 SF. The loading space must carry the minimum dimensions of 10-foot (10’) wide and 25-foot (25’) long. The Applicant proposes to improve the site with the provision of a loading space as shown in the Site Plan.

Trash Enclosures
Chapter 9.44 of the BGMC requires an on-site refuse dumpster on commercial sites and the maintenance of a trash enclosure area. The Applicant proposes a trash enclosure located on-site, and the proposed Condition of Approval No. 75 would ensure consistency with development standards of the City’s trash enclosure requirements.

Wall-Mounted Equipment
BGMC Section 9.12.040, Design Standards for all Commercial Development Matrix (Table 9.12) requires that water heater enclosures, vents, flashings, pipes, and conduits for solar or other equipment to be painted the same color as the surface to which they are attached. The Applicant proposes new exterior finishes consisting of a “Cape Code Gray” color, a warm wood cladding, brick veneer panels and fiber cement siding. There are no proposed changes to existing wall-mounted equipment and the existing equipment would be painted consistent with the Applicant’s proposed color scheme to align with standards contained in the City’s commercial development standard matrix and would, therefore, comply with the City’s wall-mounted equipment requirements.

Fences and Walls
Development of a fence, low barrier wall, or walls on a project site must be established and erected in accordance with provisions of Chapter 9.32 BGMC. The Project proposes to maintain the Site’s existing tubular steel fence and gate at the eastern and western sides of the site, with no proposed additional fencing at this time.

If approved, Condition of Approval No. 98 would require the maintenance of the existing fence and would require plan review of any proposed updates to the fence. Therefore, the Project complies with BGMC requirements for fences and walls.

Exterior Building Features
BGMC Section 9.12.040, Design Standards for all Commercial Development Matrix (Table 9.12) requires that (a) all building walls on a lot to be painted the same or complementary colors; (b) windows and doors on new construction to be of consistent style, material, and colors; (c) all windows and door trims, fascia boards, and similar trim features should be of the same or complementary material, style, and color; and (d) roofs on new buildings to be the same material, color and style as the roofs on existing buildings

on the lot.

The Project proposes to update the exterior design with new exterior finishes consisting of a “Cape Code Gray” color, a warm wood cladding, brick veneer panels and fiber cement siding. As proposed, the Project would be consistent with standards contained in BGMC Table 9.12.

Exterior Site Features
The Exterior Site Features standards in BGMC Table 9.12 requires that new fences and walls to be of consistent materials, design, and color, and that driveways, walkways, etcetera, to be free of gouges, ruts, and/or gaps so that the paved surface areas are maintained and in good working order to not constitute a safety hazard to the public.

The Project’s proposed improvements would be consistent in material, design, and color, and paved surface areas free of gouges, ruts, and/or gaps, maintained in good working order to not constitute a safety hazard to the public. Condition of Approval No. 92 is proposed to enforce compliance with the exterior site feature standards, and the Project would, therefore, comply with standards for exterior site features.

Signs
The Eastern and Florence Avenues Façade Design Standards found in BGMC Section

9.48.030(F) require that the total signage be no greater than 10 percent (10%) of the building face, a maximum height of lettering or logos of 18 inches (18”), with color(s) complimenting the colors and style of the frontage. Condition of Approval No. 24 would require the Applicant to submit for review and approval any proposed signage for the business.

Windows
BGMC Section 9.20.160(B)(3) requires that windows facing the street frontage be clear, untinted glass. The Project’s windows proposed to face the street are depicted clear and untinted and would, therefore, comply with BGMC provisions. Condition of Approval No. 65 requires the Applicant to provide plans that indicate the Project will install clear, untinted glass in order to demonstrate compliance with this requirement.

Decorative Railings and Grilles
BGMC Section 9.20.160(B)(4) requires that any decorative railings and grilles placed in front or behind windows be at least seventy-five percent (75%) open to perpendicular view and no more than six (6) feet in height. Security gates and grilles are prohibited. The Project does not propose any decorative railings, grilles, or exterior security gates or grilles therefore. Further, Condition of Approval No. 66 prohibits such features, therefore, the Project would comply with BGMC’s requirements.

Impacts on City Resources
A cannabis retail use is similar to other commercial uses permitted in the City’s Commercial and Industrial Zones. Cannabis retailers are subject to the same or more restrictive development standards than other commercial uses. Patrons would arrive at the Subject Site and visit a retailer for short periods of time, typically no longer than 30 minutes to make their purchase, similar to other retail uses. As described below, the Project is not anticipated to have an adverse or significant impact on existing resources and utilities.

Traffic Volumes
The Subject Site is located on Eastern Avenue, which is a primary commercial corridor in the City. Eastern Avenue is designated as a major highway in the 2022 Transportation and Circulation Element of the City’s General Plan. In accordance with this element, Eastern Avenue is a major highway designed to move large volumes of traffic through the community to freeways, other boulevards, or avenues. Major highways are intended to keep through-traffic off the local streets and out of residential areas. The Project proposes to utilize the existing entrance to Subject Site via Eastern Avenue and exit via the alley to the western side of the Subject Site away from traffic flow and with low likelihood to disrupt traffic patterns.

The Project is proposed along a major highway that currently carries large volumes of traffic to support the existing development along Eastern Avenue. Tenant improvements on existing commercial building, to support a cannabis retail use on an already-developed mixed-use corridor that operates similarly to other retail operations is unlikely to result in a substantial increase in traffic volumes. Therefore, no substantial increase in pedestrian or vehicular traffic volume to the Subject Site is expected to occur as a result of the Project if Conditional Use Permit No. 2023-073 is granted.

Utilities
The Applicant has provided will-serve letters from the major utilities and would be adequately served with water supply of quantity and pressure to meet the regulations of current water and fire codes for potable water supply and fire protection.

Conditional Use Permit
On June 26, 2023, the City Council adopted Ordinance No. 934 which permits a cannabis retail use as a conditional use in Commercial and Industrial Zones, subject to certain locational requirements, inclusive of distance from sensitive uses such as parks, schools, youth centers, and other existing cannabis retail uses. Uses permitted through a CUP may be essential or desirable to a particular community but are not allowed as a matter of right within a zoning classification and require a public hearing process. A CUP allows flexibility within a particular zone and enables certain use controls to address issues which could have detrimental effects on the community. It is the responsibility of the Planning Commission to impose conditions and/or limitations on the operation of the proposed use.

Ordinance No. 934 also limits a cannabis retail use for a term of 18 months unless the Applicant executes a development agreement for a longer term with the City. As discussed in further detail below, the Applicant has requested, and the staff recommends, the entering into and execution of the DA presented within the staff materials (Attached) with the Applicant and Property Owner for a term not to exceed 10 years in exchange for annual and quarterly community benefits.

In addition to a CUP, the Applicant would be required to obtain a California Department of Cannabis Control (DCC) Type 10 cannabis retail license and a business regulatory permit pursuant to Chapters 5.12 and 5.64 BGMC, among other state and local approvals prior to commencing operations.

Locational Requirements
In order to approve a CUP for a cannabis retail use, the following locational requirements

apply to all cannabis retailers for proximity to sensitive uses and proximity to other cannabis retailers. As detailed below, if approved, as proposed, the project complies with locational siting requirements set forth in BGMC Section 9.20.160.

Distance from Sensitive Uses (600-Foot Radius)
A cannabis retail use may not be located within a 600-foot radius of a day care center, youth center, school, or park as defined in Chapter 9.04 BGMC, that is existing at the time an application for a conditional use permit is submitted.

At the time of application, no active sensitive use was located within a 600-foot radius.

Staff utilized a measure of 1,500-feet from property line to property line. One (1) sensitive use within a 1,500-foot radius was identified: Bell Gardens Elementary School at approximately 777 feet distance, exceeding the 600-foot buffering requirement.

Distance from Cannabis Retailers (500-Foot Radius)
A cannabis retail use may not be located within a 500-foot radius of another cannabis retailer that is existing at the time an application for a conditional use permit is submitted.

At the time of application, no other active cannabis retail use was located within a 500- foot radius nor 1,500-foot radius.

Restricted Use Within the Civic Center Overlay District A cannabis retail use may not be permitted within the Civic Center Overlay District (CCOD). The CCOD encompasses Garfield Avenue, with the borders of Florence Place to the south and Gage Avenue to the north. The Subject Site is located on Eastern Avenue, which is outside of the CCOD and is therefore located outside of the prohibited use area of the CCOD and would comply with the restricted use area requirement.

Restricted Areas (BGMC 9.20.160(A)(2))
A cannabis retail use may not be permitted within the boundaries delineated in BGMC Section 9.20.160(A)(2). The restricted boundaries are located on Eastern Avenue and Florence Avenue. The Subject Site is located near the southwest corner of Eastern Avenue and Gotham Street, thus located outside the boundaries of other prohibited areas pursuant to BGMC Section 9.20.160(A)(2).

If approved, the Project would operate with an approved conditional use permit in an orderly manner. To minimize any potential concerns to neighboring properties and ensure that the operation of the cannabis retail store conforms to the City’s General Plan, conditions of approval have been included as part of the CUP to address the general operating conditions, hours of operation, standards, and security for the Subject Site.

Lighting, Odor Mitigation, and Security Plans
Chapter 5.64 of the BGMC requires a cannabis retailer to comply with specific operating standards. If CUP No. 2023-073 is approved, the Applicant would be required to implement the Lighting Plan, Odor Mitigation Plan, and Security Plan to provide safe and secure surroundings for both customers and the surrounding neighborhood, which have been submitted by the Applicant. Compliance with these plans would be incorporated by reference as exhibits into the proposed conditions of approval for CUP No. 2023-073, as well as DA No. 2023-073.

Lighting Plan

The Applicant has provided a comprehensive approach to addressing exterior lighting of the Subject Site to enhance the retail experience with a strong sense of safety and unique community identity. The City is charged with promoting design that emphasizes commercial identity that enhances the appearance, potential economic vitality, and revitalization of the commercial areas pursuant to Policy 3 of the General Plan’s Land Use Element. The proposed conditions of approval would require compliance with the submitted Lighting Plan. The requirements of the Lighting Plan are also incorporated by reference into DA No. 2023-073.

Odor Mitigation
The Applicant proposes to address the concern over cannabis product odor that may be produced as a result of this retail store by providing specifications of air filtration systems that would be installed, which are proposed to be incorporated into the conditions of approval and the DA, by referencing compliance with all conditions of approval. Staff training for the air filtration systems and HVAC would be conducted for maintenance to help ensure that no odor impact to neighbors would occur and would be prevented. Odor control devices and techniques identified in the plan to control odor incorporate a carbon filtration system, negative pressure ventilation, and HVAC. Proposed staff training would include provisions for recordkeeping systems and forms, monthly inspections, and maintenance plan of the control devices.

The Applicant proposes to carry a full range of cannabis and cannabis products. The Applicant states that the inventory team, product team, and sales associates would ensure that all jars or containers from which products would be sold remain properly sealed so as not to emanate odor, and no raw cannabis flower would be authorized to be packaged in or on the Subject Site. The proposed conditions of approval and DA would require compliance with the submitted plan to mitigate odor.

Security Plan
The Applicant would implement and maintain a Security Plan to address public safety issues inclusive of security operations. Security personnel would meet the requirements put forth by the California Department of Consumer Affairs, and as approved by the Bell Gardens Police Department. There would be one (1) armed security officer or a designated manager on the Subject Site during operational hours to ensure the protection and safety of customers, personnel, and the business, that would perform no other activity. Pursuant to Condition of Approval No. 38, Applicant would be required to have one dedicated security officer for the sole purpose of maintaining site safety 24-hours a day, seven days of the week.

The purpose of the Security Plan is to ensure safety and security for all customers, patients, employees, and visitors at the proposed retail storefront and those who purchase cannabis goods from their proposed delivery service. Employees would conspicuously wear an employer-issued identification card whilst within the facility, and all visitors would be required to check in at the front entrance.

The Applicant would contract with Spying Eye Surveillance and UL 24/7 Central Monitoring Station for 24-hour service and would allow Bell Gardens Police Department access to all surveillance materials.

The Applicant would follow the California DCC’s customer age verification as a part of

standard business practice and as a security measure to ensure that cannabis would only be purchased by adult use customers aged 21 and older or medicinal patients aged 18 or older (with a physician’s medicinal recommendation), through the use of an electronic verification device, as required by the proposed conditions of approval (Condition of Approval Nos. 29 and 30).

The conditions of approval would require compliance with the submitted Security Plan.

The requirements of the Security Plan are also incorporated by reference into DA No. 2023-073.

Hours of Operation
The DCC hours of operation for cannabis retail operations are restricted from 6:00 a.m. until 10:00 p.m. (last transaction), Monday through Sunday, with the last delivery order to be placed by 9:00 p.m., and all delivery vehicles returned no later than 10:00 p.m., unless stricter hours are imposed by a local municipality. Staff has conducted a survey of the permitted hours of the municipalities surrounding Bell Gardens within a three (3)-mile radius and have determined the most common closure time is 10:00 p.m., but at least three (3) stores within this 3-mile radius close at 9:00 p.m.; and within a five (5)-mile radius the most common opening time was 8:00 a.m. Local municipalities may permit hours of operation consistent with DCC regulations or restrict hours through a condition of approval.

Under unique circumstances, it could be appropriate to condition stricter hours of operation if the City finds that reduced hours of operation could address concerns of neighborhood compatibility, loitering, traffic and congestion, and noise. However, reduced hours may lead to other drawbacks such as reduced economic impact to public benefit funds, favored surrounding market competition, and enforcement challenges. Staff recommends hours of operations be restricted to 10:00 a.m. to 10:00 p.m., consistent with DCC regulations which are in Condition of Approval No. 23.

Development Agreement
A development agreement is a tool that allows developers to establish assurances and certainty with respect to what rules, regulations, and policies would apply to a project in return for public benefits to the City in the form of capital improvements, monetary contributions, and other obligations.

A request for a development agreement can be used when there are significant development costs and economic risks associated with efforts to improve, develop, and/or use real property for a certain purpose and to establish certain development rights on real property. A development agreement must be approved and adopted by ordinance. The City Council’s legislative action on a development agreement ordinance could facilitate the orderly development of sites within Bell Gardens, promote shared goals and vision, protect natural resources from adverse impacts, provide community benefits, and reduce economic risk for all stakeholders.

On June 12, 2023, the City Council adopted Resolution No. 2023-043, which established procedures and minimum terms for the negotiation of a development agreement for a cannabis retail use, which are consistent with or supplement the requirements set forth in Government Code Section 65864 et seq. (Development Agreement Procedures). Among the requirements to enter into a development agreement with the City, include required

findings; cost recovery provisions; annual review; default, cure, modification, and termination procedures. The Development Agreement Procedures require that eighty percent (80%) of the monetary value of the public benefits shall be dedicated to youth and educational programming and resources for the City’s housing programs.

Additionally, the Development Agreement Procedures dictate that the City Manager, Community Development Director, and City Attorney shall negotiate the terms of the development agreement prior to presenting them to the Planning Commission and City Council. However, the City Council has the ultimate authority on the terms of a development agreement, so long as they are consistent with the City’s Development Agreement Procedures.

Staff recommends approval of the proposed development agreement in the staff materials 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. The Applicant has represented that it is in agreement with all of the proposed terms of the development agreement, with the exception of the Quarterly Community Benefit, discussed below. Pursuant to recent City Council direction, the Applicant must effectuate the DA within 60 days of the ordinance’s effective date, which requires the execution of the agreement by the Applicant, property owner, satisfaction of insurance requirements and the deposit of the first One Hundred Thousand Dollar ($100,000) Annual Community Benefit, described in further detail below.

Community Benefits
As proposed, DA No. 2023-073 would require the Applicant to provide an Annual Community Benefit in the amount of One Hundred Thousand Dollars ($100,000) upon the effective date for DA No. 2023-073 and renewed on an annual basis, every January, and a Quarterly Community Benefit equal to seven percent (7%) of gross receipts, as defined in the DA, once operations have commenced.

Pursuant to the Development Agreement Procedures, eighty percent (80%) of all community benefits must be dedicated toward youth and educational programming and resources for the City’s housing programs. Benefits for youth and educational programming may be dedicated to the City’s Recreation and Community Services 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; and community benefits for the City’s housing programs shall be dedicated toward the Community Development Department and would be utilized for housing programming and long-range planning, including but not limited to affordable housing, rent stabilization and tenant protection efforts, and other land use planning efforts.

The conditions of approval for CUP No. 2023-073 which clearly outline specific conditions, requirements, and timelines for the development of the retail storefront facility to help ensure the Applicant remains in compliance with all local, state, and federal regulations, where applicable, would be expressly incorporated into the terms of the DA No. 2023- 073. In addition, the DA would provide the Applicant with assurances that would enable the Project to exist for a term of up to 10 years in exchange for public benefits. The DA is designed to facilitate ongoing communication and collaboration between the Applicant, who would be licensee, and the local community addressing concerns and ensuring the cannabis retail use 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 would be subject to an annual review, whereby if the City determines that the Applicant is not in compliance with the DA, the City may modify or terminate the DA.

Adoption of an ordinance subject to the approval of a development agreement would be justified by the legal protections and facilitated approval processes afforded by the DA.

Financial stability could also be helped since the DA outlines financial commitments to help ensure long-term viability of the cannabis retail use operation and provide a stable revenue stream for the City.

ENVIRONMENTAL REVIEW:

In accordance with CEQA (Pub. Res. Code § 21000 et seq.) and CEQA Guidelines (Cal.

Code Regs., tit. 14, § 15000 et seq.), staff recommends the Project be determined to be categorically exempt pursuant to CEQA Guidelines Section 15301 (Existing Facilities) and Section 15061(b)(3) (Common Sense Exemption). The Project would involve tenant improvements to an already existing commercial structure to support a new commercial use. No additional floor area is proposed. 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:

It is recommended that the Planning Commission determine the Project is categorically exempt from CEQA; approve Conditional Use Permit No. 2023-073 through the adoption of Resolution #PC 2025-10; and recommend to the City Council the adoption of Ordinance No. 957 to authorize the City to enter into and execute DA No. 2023-073 through the adoption of Resolution #PC 2025-11.

FISCAL IMPACT:

If the CUP and DA are approved, the Applicant would be required to make an up-front payment of One Hundred Thousand Dollars ($100,000) upon effectuating the DA and make an annual contribution every January 15 following the execution of the DA for the term of the Agreement. The Applicant would also be required to submit Quarterly Community Benefits equal to seven percent (7%) of Gross Receipts as defined in the DA upon after operations have commenced. Eighty percent (80%) of these funds would be dedicated to 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 (Cost Recovery).

ORDINANCE NO. 957

AN ORDINANCE AUTHORIZING THE EXECUTION OF A

DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF BELL
GARDENS, FRANK AGUIRRE, JR., AND EASTERN AVE HOLDINGS,
LLC RELATING TO THE PROPERTY LOCATED AT 7821 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 April 16, 2025, considered and adopted Resolution #PC 2025-10 authorizing a cannabis retail use and recommended to the City Council of Bell Gardens approval of the Development Agreement No. 2023-073 by and between the City, Frank Aguirre, Jr., and Eastern Ave Holdings, LLC (Development Agreement), which is incorporated herein by reference into the provisions of this Ordinance as Exhibit “A”; and

WHEREAS, after due notice, the City Planning Commission and the City Council did conduct a public hearing 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 2025-11; 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 seeking 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 building since 2017, thereby enhancing the economic vitality of the surrounding commercial areas and is therefore consistent with Policy 3; and

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 April 28, 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.

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 by reference, 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. 2023-073 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.

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 day of , 2025.

THE CITY OF BELL GARDENS

________________________________
Jorgel Chavez, Mayor

APPROVED AS TO FORM: ATTEST:

________________________________ ________________________________ Stephanie Vasquez Daisy Gomez
City Attorney City Clerk

I, ___________, City Clerk of the City of Bell Gardens, hereby CERTIFY that Ordinance No. 957 was introduced and placed upon its first reading at a regular meeting of the Bell Gardens City Council held on ____________________, and that thereafter said ordinance was duly adopted at a regular meeting of the Bell Gardens City Council held on ________________________ and was approved and passed by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

____________________________
Daisy Gomez, City Clerk

EXHIBIT “A”

(Development Agreement)

1 DEVELOPMENT AGREEMENT NO. 2023-073

BETWEEN

THE CITY OF BELL GARDENS
AND
FRANCISCO AGUIRRE, JR.

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

2 This DEVELOPMENT AGREEMENT (“Agreement”) is dated as of __________, 2025 by and among the City of Bell Gardens (the “City”) and Francisco Aguirre, Jr. as the developer (“Developer”) and Eastern Ave Holdings, LLC as the property owner (“Property Owner”). This Agreement shall take effect on the “Effective Date,” as this term is hereafter defined. The City, Developer, and the Property Owner may each be referred to herein individually as a “Party” or collectively as the “Parties.”

RECITALS
WHEREAS, in 1996, the California State Legislature approved Proposition 215, also known as the Compassionate Use Act (“CUA”) (Health and Saf. Code § 11262.5 et seq.) and was intended to enable persons in need of medical marijuana for specified medical purposes, such as cancer, anorexia, AIDS, chronic pain, glaucoma and arthritis, to obtain and use marijuana under limited circumstances and were recommended by a physician. The CUA provides that “nothing in this section shall be construed or supersede legislation prohibiting persons from engaging in conduct that endangers others, or to condone the diversion of marijuana for non-medical purposes”;
WHEREAS, in 2004, the California State Legislature enacted the Medical Marijuana Program Act (Health & Saf. Code § 11362.7 et seq.) (“MMP”), which clarified the scope of the CUA, created a state-approved voluntary medical marijuana identification card program, and authorized cities to adopt and enforce rules and regulations consistent with the MMP. Assembly Bill 2650 (2010) and Assembly Bill 1300 (2011) amended the MMP to expressly recognize the authority of counties and cities to “[a]dopt local ordinances that regulate the location, operation, or establishment of a medical marijuana cooperative or collective” and to civilly and criminally enforce such ordinances;
WHEREAS, on April 25, 2011, this City Council approved a moratorium on the establishment and operation of medical marijuana dispensaries through the adoption of Ordinance No. 840;
WHEREAS, in September 2015, the California State Legislature enacted, and Governor Brown signed into law three bills – Assembly Bill 243, Assembly Bill 266, and Senate Bill 643 – which together comprise the Medical Marijuana Regulation and Safety Act (the “MMRSA”). The MMRSA created a comprehensive dual state licensing system for the cultivation, manufacture, retail, sale, transport, distribution, delivery, and testing of medical cannabis; WHEREAS, on January 25, 2016, the City Council adopted Ordinance No. 873 to prohibit all commercial cannabis activities citywide, including Cannabis Retail Activities; WHEREAS, in June 2016 the MMRSA was renamed the Medical Cannabis Regulation and Safety Act (the “MCRSA”), under Senate Bill 837, which also made included substantive changes to the applicable state laws, which affect the various state agencies involved in regulating cannabis businesses as well as potential licensees;
WHEREAS, on November 8, 2016, the Control, Regulate, and Tax Adult Use of Marijuana Act (“AUMA”) was approved by California voters as Proposition 64 and became effective on November 9, 2016, pursuant to the California Constitution (Cal. Const., art. II, § 10(a)). Proposition 64 legalized the nonmedical use of cannabis by persons 21 years of age and over, and the personal

3 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 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 establishing the procedures and requirements for the consideration of development agreements within the City;

4 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 7821 Eastern Avenue in the City of Bell Gardens, County of Los Angeles, State of California, Assessor's Parcel Numbers 6227-018-002 (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 M-U Mixed Use Commercial Zone in the City where Cannabis Retail sales may be conditionally permitted; WHEREAS, Developer affirms that it has a leasehold interest in the Site pursuant to a lease with the owner of the Site, (the “Property Owner”) for the purpose of carrying out the Project; WHEREAS, the Developer has provided notarized written consent to: (1) all terms of this Agreement, including, but not limited to, Sections 6.1 and 9.6 of this Agreement; and (2) and recordation of this Agreement against the title of the Site. Such written consent agreement is attached hereto as Exhibit “D.”
WHEREAS, Government Code Section 65867.5 and the City Development Agreement Procedures require the Bell Gardens Planning Commission (“Planning Commission”) to conduct a public hearing to review a proposed development agreement; WHEREAS, on April 16, 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 April 16, 2025, the Planning Commission recommended City Council approval of this Agreement, which would allow Developer to operate the Project at the Site; WHEREAS, on April 16, 2025, the Planning Commission also reviewed, considered, and approved Conditional Use Permit No. 2023-073;
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; 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

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

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

AGREEMENT
ARTICLE 1

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

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

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

Exhibit “A”: Legal Description
Exhibit “B”: Site Plan
Exhibit “C”: Floor Plan
Exhibit “D” Property Owner Consent
Exhibit “E” Security Plan
Exhibit “F” Conditional Use Permit No. 2023-073
Section 1.4. Definitions. In this Agreement, unless the context otherwise requires, the terms below have the following meanings:
a. “Additional Insured(s)” has the meaning set forth in Section 5.1 of this Agreement. b. “Additional City Approvals” means all ministerial and discretionary permits, licenses, or other similar entitlements, including any modifications or amendments thereto that must be secured by the Developer from the City in order to develop the Project on the Site, in addition to the Conditional Use Permit and the Business Regulatory Permit. c. “Agreement” means this Development Agreement and all Exhibits attached hereto. d. “Annual Community Benefits Fees” has the meaning set forth in Section 4.2(b) of this Agreement.
e. “AUMA” has the meaning as set forth in the Recitals, above.

6 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 Bui lding S tandards Codes" means the California Building, Mechanical, Plumbing, Electrical, Fire or other similar codes set forth in Title 24 of the California Code of Regulations, as may be adopted by the City, with amendments, and set forth in the Bell Gardens Municipal Code.
i. “California Cannabis Laws” means AUMA, MAUCRSA, CUA, MMP, and the regulations adopted and promulgated by the State Licensing Authorities pursuant to such laws, as such laws and regulations may be amended from time to time. j. “Cannabis” means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture , or preparation of the plant, its seeds, or resin. "Cannabis" also means the separated resin, whether crude or purified, obtained from cannabis. "Cannabis" does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. For the purpose of this division, "cannabis" does not mean "industrial hemp" as defined by Section 11018.5 of the Health and Safety Code. Cannabis and the term "marijuana" may be used interchangeably.
k. “Cannabis Cultivation” means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis. Cannabis cultivation, as defined herein, does not include the personal cultivation at a private residence of up to six (6) plants as authorized under state law for personal use.
l. “Cannabis Distribution” means the procurement, sale, and transport of cannabis and/or cannabis products between those persons with requisite state and local government licenses to conduct permissible Commercial Cannabis Activities.
m. “Cannabis Manufacturing” means the compounding, blending, extracting, infusing, packaging, label or otherwise making or preparing a cannabis product. n. “Cannabis Product” means cannabis and such products that are intended for use on, or consumption by, an animal. Cannabis products are not considered food as defined in Health and Safety Code Section 109935, a drug as defined in Health and Safety Code Section 109925, or a cosmetic as defined in Health and Safety Code Section 109900. o. “Cannabis Retail Activities” means the retail sale and delivery of cannabis or cannabis products to customers. Delivery of cannabis and cannabis products shall also include the use of a technology platform by a cannabis retailer to conduct the commercial transfer of cannabis and cannabis products.

7 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 Francisco Aguirre, Jr. which shall reflect the owner or owners listed on the application for Business Regulatory Permit, or any transferee who has been assigned the rights, title, duties, obligations and interests of this Agreement pursuant to Section 9.1. dd. “Development Agreement Statute” has the meaning set forth in the Recitals, above. ee. “Development Agreement Procedures” has the same meaning as set forth in the Recitals, above.
ff. “Effective Date” has the meaning set forth in Section 1.7 of this Agreement. gg. “Exhibits” has the meaning set forth in Section 1.3 of this Agreement.

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

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

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

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

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

5. Receipts of refundable deposits in any Cannabis Retail Activity, except that such deposits when forfeited and taken into income of the business shall not be excluded; The intent of this definition is to ensure that in calculating the payments required under Article 4 of this Agreement, all sales related to Cannabis Retail Activity or any other Cannabis and Cannabis Products at the Site or through the Project are captured as Gross Receipts. This definition shall therefore be given the broadest possible interpretation consistent with this intent. ii. “Project” has the meaning as set forth in the Recitals, above. jj. “Property Owner” means Eastern Ave Holdings, LLC and its successors, assigns and transferees which hold a fee simple interest.
kk. “Marijuana” has the same meaning as Cannabis as defined above, and those terms may be used interchangeably.
ll. “MAUCRSA” means the Medicinal and Adult-Use Cannabis Regulation and Safety Act, (Bus. and Prof. Code § 26000 et seq. ), as may be amended from time to time, and as additionally set forth in the Recitals, above.
mm. “MCRSA” has the meaning set forth in the Recitals, above. nn. “Mortgage” has the meaning set forth in Section 6.1 of this Agreement. oo. “Non-Payment Penalty” has the meaning set forth in Section 4.7 of this Agreement.

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

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

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

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

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

10 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);
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;

11 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 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.

12 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. 2023-073, 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. 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

13 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 S tandards Codes in effect at the time as of the time that the development project application to the City for such permit was deemed complete by the City.

Section 3.4. Changes mandated by Federal or State Law. The Site and Project shall be subject to subsequently enacted state or federal laws or regulations that may preempt the Bell Gardens Municipal Code, or mandate the adoption or amendment of local regulations, or are in conflict with this Agreement or local rules or guidelines. As provided in Section 65869.5 of the Development Agreement Statute, in the event state or federal laws or regulations enacted after the Effective Date prevent or preclude compliance with one or more provisions of this Agreement, such provisions of this Agreement shall be subject to modification or suspension by the Parties as provided in this Section 3.4. as may be necessary to comply with such state or federal laws or regulations. Upon a Party’s discovery of a subsequently enacted federal or state law meeting the requirements of this Section, such Party shall provide the other Parties with written notice of the state or federal law or regulation, and a written statement of the conflicts thereby raised with the provisions of the Bell Gardens Municipal Code or this Agreement. Promptly thereafter, the Parties shall meet and confer in good faith in a reasonable attempt to modify this Agreement, as necessary, to comply with such federal or state law or regulation provided City shall not be obligated to agree to any modification materially increasing its obligations or materially adversely affecting its rights and benefits hereunder. In such discussions, the Parties shall attempt to preserve the terms of this Agreement and the rights of Developer derived from this Agreement to the maximum feasible extent while resolving the conflict. If City, in its judgment, determines it necessary to modify this Agreement to address such conflict, City shall have the right and responsibility to do so, and shall not have any liability to Developer for doing so or be considered in breach or default of this Agreement. City also agrees to process, in accordance with the provisions of this Agreement, Developer's proposed changes to the Project that are necessary to comply with such federal or state law and that such proposed changes shall be conclusively deemed to be consistent with this Agreement without further need for any amendment to this Agreement, pursuant to Section 1.10.

Section 3.5. Health and Safety Emergencies. In the event that any future public health and safety emergencies arise with respect to the Project, City agrees that it shall attempt , if reasonably possible as determined by City in its discretion, to address such emergency in a way that does not have a material adverse impact on the Project. If City determines, in its discretion,

14 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”).

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

15 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.
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

16 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.

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.

17 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.

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.

18 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 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.

19 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.

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.

20 ARTICLE 7

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

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

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

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

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

ARTICLE 8

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

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

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

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

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

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

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

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

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

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

22 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 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

23 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:

Francisco Aguirre, Jr.
7821 Eastern Ave.

Bell Gardens, CA 90201
323-804-6639
[email protected]
CITY: City of Bell Gardens
7100 Garfield Ave.

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

Eastern Avenue Holdings, LLC
7821 Eastern Ave.

Bell Gardens, CA 90201
Attn: Andrew Hernandez
775-848-7764
[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 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.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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
Francisco Aguirre, Jr.
[Notarized Signature Required]
By:_______________________________
Name: ___________________________
Title:______________________________
Date:

PROPERTY OWNER
Eastern Ave Holdings, LLC[Notarized
Signature Required]
By:______________________________
Name:____________________________
Title:_____________________________
Date: ___

EXHIBIT “A”

LEGAL DESCRIPTION OF SITE
27 27
EXHIBIT “A”

LEGAL DESCRIPTION OF SITE

EXHIBIT “B”

SITE PLAN
28 28
EXHIBIT “B”

SITE PLAN

EXHIBIT “C”

FLOOR PLAN
29 29
EXHIBIT “C”

FLOOR PLAN

EXHIBIT “D”
PROPERTY OWNER’S CONSENT AGREEMENT
30 30
EXHIBIT “D”
PROPERTY OWNER’S CONSENT AGREEMENT

EXHIBIT “E”

SECURITY PLAN
31 31
EXHIBIT “E”

SECURITY PLAN

EXHIBIT “F”

CONDITIONS OF APPROVAL
32 32
EXHIBIT “F”

CONDITIONS OF APPROVAL

RESOLUTION #PC 2025-10

RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF BELL GARDENS APPROVING CONDITIONAL USE PERMIT NO. 2023-073 FOR A CANNABIS RETAIL USE AT 7821 EASTERN AVENUE, BELL

GARDENS, CALIFORNIA
WHEREAS, Francisco Aguirre Jr. (Applicant), has requested approval of a conditional use permit (CUP) and a development agreement (DA) to perform tenant improvements to an existing commercial structure, and operate a storefront cannabis retail business in the City of Bell Gardens (City);
WHEREAS, the Applicant proposes tenant improvements to an existing, vacant one (1)-story, 1,748 square-foot (SF) commercial building, and operate a cannabis retail use located at 7821 Eastern Avenue (Subject Site), subject to conditions of approval and an ordinance to approve a DA authorizing the entering into an agreement to establish certain development rights in exchange for public benefits (Project) at the Subject Site; WHEREAS, on June 26, 2023, the City Council adopted Ordinance No. 934, which conditionally permits a cannabis retail use within Commercial and Industrial Zones, subject to certain siting requirements and conditions of approval for a term of 18 months, unless an applicant executes a DA with the City;
WHEREAS, the Subject Site is designated as Mixed Use
(Commercial/Residential) (MU) in the City’s General Plan Land Use Element; WHEREAS, the MU Land Use designation has been concentrated on parts of Gage Avenue and Eastern Avenue and refers to a combination of commercial and residential uses working in tandem;
WHEREAS, the corresponding zone for the MU Land Use Element designation is the Mixed-Use Commercial/Residential (M-U) Zone, which conditionally permits a cannabis use, subject to certain siting requirements and development standards and the Subject Site is currently located within Zone M-U;
WHEREAS, the intent and purpose of Bell Gardens Municipal Code (BGMC) Chapter 9.20 is to provide “supplementary provisions for uses which the City finds require special attention due to their sensitive nature and potential impacts to the community;” WHEREAS, the Applicant requested, pursuant to Chapter 9.50 of the BGMC, the Planning Commission to approve a CUP for a cannabis retail use with conditions which are deemed necessary to ensure the proposed use will not jeopardize, adversely affect, endanger, or otherwise constitute a nuisance to the public health, safety, or general welfare, or be materially detrimental to the property of other persons located in the vicinity of such conditional use;
WHEREAS, in conjunction with the CUP, the Applicant has requested a DA to permit a cannabis retail use for a term of five (5) years, with an option to extend the term of the development agreement for an additional five (5)-year term in exchange for public benefits;

Resolution #PC 2025-10

WHEREAS, the approval of CUP No. 2023-073 would promote the public health, safety, and general welfare because it would facilitate the orderly development of the Subject Site, create a physical environment that would be consistent with and complement the City's goals and visions since new construction would comply with BGMC provisions for building, energy efficiency, and development standards; improve, upgrade, and create additional community facilities and infrastructure, enhance services and assist in implementing the goals of the General Plan since the proposed development would comply with low impact development guidelines, where applicable, to manage stormwater runoff in a way that mitigates the impacts of pollution to rivers, lakes, streams, and the ocean; and reduce the economic risk to the surrounding community since a development agreement would establish certain development rights on real property in exchange for public benefits to the City;
WHEREAS, Policy 3 of the General Plan Land Use Element provides that the City shall promote compatible commercial development to emphasize commercial identity and to enhance the appearance, potential economic vitality, and revitalization of the commercial areas in the City;
WHEREAS, the Project is consistent with Policy 3 because the Project would reactivate currently vacant commercial building at the Subject Site into a new commercial use, thereby enhancing the appearance and economic vitality of the area and emphasizing the commercial identity of the commercial areas in the City; WHEREAS, Policy 5 of the Land Use Element requires the City to provide an environment to stimulate local employment, property values, community stability, and the economic vitality of existing local businesses;
WHEREAS, the Project is consistent with Policy 5 because it would involve the redevelopment and reactivation of a commercial site;
WHEREAS, the Project is also consistent with Policy 5 because it would add potential stability to the area through increased property values associated with the proposed improvement and renovation of an existing vacant commercial building and the conduct of well-run businesses could impact other businesses for increased area economic viability;
WHEREAS, the approval of CUP No. 2023-073 would not jeopardize, adversely affect, endanger, or otherwise constitute a nuisance to the public health, safety, or general welfare of the community because the Project would reactivate, revitalize, and reinforce the security to an existing vacant commercial development; WHEREAS, the Subject Site meets the siting requirements including the areas that prohibit a cannabis retail use pursuant to BGMC Section 9.20.160, inclusive of the 600- foot distancing requirement of day care centers, youth centers, schools, and parks and 500-foot distancing requirement from any other cannabis uses;

Resolution #PC 2025-10

WHEREAS, the Project’s Lighting Plan, Odor Mitigation Plan, and Security Plan (collectively incorporated herein by reference) aim at providing safe and secure environment for both customers and the surroundings, and that enhance the retail experience and the unique community identity, maintain air filtration, and provide safe and secure surroundings, memorialized by required conditions of approval; WHEREAS, the Subject Site is an approximately 6,417 SF parcel of land, rectangular in shape, and is currently developed with a commercial building with no proposed additional floor area proposed and is therefore adequate in size, shape, and topography to accommodate the development features prescribed in Title 9 BGMC to support the proposed business;
WHEREAS, the Subject Site is located on Eastern Avenue, which is one of the commercial corridors in the City and designated as a major highway in the 2022 Transportation and Circulation Element, as a part of the City’s General Plan; WHEREAS, Eastern Avenue is designated as a major highway, which is designed to move large volumes of traffic through the community to freeways, other boulevards, and avenues, and keep through-traffic off the local streets and out of residential areas; WHEREAS, the Project will provide eight (8) bicycle parking spaces in lieu of two (2) required vehicle parking spaces, thereby requiring the Project to provide a total of three (3) vehicle parking spaces;
WHEREAS, the introduction of a cannabis retail use in an already-developed commercial corridor that operates similarly to other retail operations is unlikely to result in a substantial increase in traffic volumes;
WHEREAS, the Subject Site is adequately served with water supply of quantity and pressure to meet the regulations of current water and fire codes for potable water supply and fire protection;
WHEREAS, the Project proposes to address concerns relating to safety, odor, and nuisance with lighting, odor mitigation, and security plans that enhance the retail experience and the unique community identity, maintain air filtration, and provide safe and secure surroundings, memorialized by required conditions of approval; 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. (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 on real property in exchange for public benefits; WHEREAS, consistent with the requirements of the Development Agreement Statute, the City adopted Resolution 2023-043 (Development Agreement Procedures)

Resolution #PC 2025-10

authorizing the use of and establishing the procedures and requirements for the consideration of development agreements within the City for a cannabis retail use; WHEREAS, the Project involves tenant improvements to an existing building on an already developed commercial property and would operate similarly to other retail operations, be subject to the same development standards as other commercial operations, including but not limited to height, setbacks, and parking, but subject to more restrictive locational siting requirements, it can be seen with certainty that the approval and regulation of cannabis retail sales at the Subject Site for a term of up to 10 years would not cause a reasonably foreseeable direct or indirect impact on the environment pursuant to the California Environmental Quality Act (CEQA) (Pub. Res. Code § 21000 et seq.) and CEQA Guidelines (Cal. Code Regs., tit. 14, § 15000 et seq.) Sections 15061(b)(3) (Common Sense Exemption) and 15301 (Existing Facilities); WHEREAS, pursuant to California Government Code Sections 65090 and 65091, the Planning Commission duly noticed, agendized, and conducted a public hearing on this matter on April 16, 2025, and reviewed all facts and evidence, both written and testimonial, pertaining to CUP No. 2023-073 and a proposed ordinance approving a development agreement authorizing the Project and to impose a lifespan in exchange for public benefits;
WHEREAS, on April 16, 2025, the Planning Commission held a duly noticed, public hearing and reviewed all facts and evidence, both written and testimonial, pertaining to CUP No. 2023-073 and a recommendation to approve an ordinance to enter into and execute a development agreement to permit the use for up to 10 years in exchange for public benefits;
WHEREAS, the Planning Commission considered all public comments received before and during the public hearing, the presentation by City staff, the relevant staff report, and all other pertinent documents related to CUP No. 2023-073 to authorize a cannabis retail use at the Subject Site; and
WHEREAS, after the close of the public hearing, the Planning Commission adopted Resolution #PC 2025-10 conditionally approving CUP No. 2023-073.

NOW, THEREFORE, THE PLANNING COMMISSION HEREBY RESOLVES, DETERMINES, AND FINDS AS FOLLOWS:

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

SECTION 2. Pursuant to BGMC Title 9, Section 9.50.050, CUP No. 2023-073:
i. Is not in conflict with the General Plan for the area and complies with the standards in Title 9 of the BGMC.

Resolution #PC 2025-10

ii. Does not jeopardize, adversely affect, endanger, or otherwise constitute a nuisance to the public health, safety, or general welfare. iii. The Subject Site for the proposed conditional use is adequate in size, shape, and topography to accommodate the yards, walls, fences, parking and loading facilities, landscaping and other development features prescribed in Title 9 BGMC, as required by the Planning Commission as a condition of approval in order to integrate said use with the existing uses in the neighborhood. iv. The Subject Site for the proposed conditional use is served by highways or streets adequate in width and improved as necessary to carry the kind and quantity of traffic such use would generate.
v. The Subject Site is served by the required utilities, including electricity and water supply of quantities and pressures required by the fire code to provide adequate protection.

SECTION 3. In accordance with CEQA and the CEQA Guidelines, CUP No. 2023- 073 is categorically exempt from CEQA pursuant to CEQA Guidelines Sections 15061(b)(3) (Common Sense Exemption) and 15301 (Existing Facilities).

SECTION 4. The Planning Commission hereby grants the Applicant’s request related to CUP No. 2023-073 to permit the Project at the Subject Site, subject to the following conditions incorporated herein in full, by reference (Exhibit “A”).

SECTION 5. If any portion of this Resolution is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.

SECTION 6. This CUP shall become effective upon the expiration of the 15 calendar days after approval by the Planning Commission unless an appeal of the CUP has been filed with the City Clerk pursuant to Section 9.50.090 of the BGMC.

PASSED, APPROVED AND ADOPTED this 16th day of April, 2025. _________________________________

ERNESTO RAMIREZ, CHAIRPERSON
ATTEST:
________________________________________

LILLY CARRILLO, PLANNING SECRETARY
APPROVED AS TO FORM:

Resolution #PC 2025-10

________________________________________

LLOYD PILCHEN, ASSISTANT CITY ATTORNEY

Resolution #PC 2025-10

EXHIBIT “A”
CUP NO. 2023-073– CONDITIONS OF APPROVAL
General Operating Conditions

1. The Subject Site shall be improved, maintained, and operated in accordance with:
a. The application on file in the Community Development Department and Exhibits 1 through 15 included in the staff report which are attached and incorporated herein by this reference.
b. All applicable laws, including but not limited to, the BGMC, the Bell Gardens Zoning Ordinance, the Business and Professions Code, Los Angeles County Department of Public Health, and the California Department of Cannabis Control (DCC).
c. All the conditions of approval as set forth in this Planning Commission Resolution for CUP No. 2023-073.
d. The terms and conditions set forth in DA No. 2023-073.

2. All conditions stated herein shall be binding upon the Applicant, their successors-in- interest, and assigns; shall run with the land; shall limit and control the issuance and validity of certificates of occupancy, and shall restrict and limit the construction, location, and conditional use and maintenance of all land and structures adjacent to or within the vicinity of the Subject Site. Failure to adhere to these conditions of approval may result in revocation pursuant to the process set forth in BGMC Section

9.62.010.

The conditions herein shall run with the land. However, any successor-in-interest must obtain the proper approvals to assign or transfer the rights, interests, and obligations pursuant to the DA No. 2023-073 in order to effectuate the rights and obligations set forth in this CUP and obtain a business regulatory permit pursuant to Chapter 5.12 and Chapter 5.64 of the BGMC.

3. CUP No. 2023-073 shall be valid strictly for a DCC Type 10 license as defined by the state Department of Cannabis Control (DCC). Prior to the issuance of a certificate of occupancy, temporary certificate of occupancy, final building permit, finalized job card or equivalent sign off from the Building and Safety Division for the Subject Site, the Applicant shall submit a copy of its business regulatory permit and Type 10 license as approved by DCC to the City of Bell Gardens Community Development Department. Cannabis cultivation, cannabis manufacturing, cannabis laboratory testing, and cannabis distribution are strictly prohibited and shall constitute grounds for revocation and termination of all rights hereunder.

Resolution #PC 2025-10

All rights hereunder shall terminate within eighteen (18) months from the date of issuance of the first building permit for the Subject Site after the approval of CUP No. 2023-073 unless DA No. 2023-073 is approved for a longer period of time, not to exceed ten (10) years. For the purposes of this condition, “building permit” shall have the same definition as BGMC Section 9.20.160(D).

CUP No. 2023-073 shall be valid strictly in compliance with DA No. 2023-073; any privileges granted hereunder shall become null and void should there be a violation hereof.

4. The abandonment or non-implementation of the conditions stated in this CUP No. 2023-073 for a period of one (1) year from the effective date of the CUP shall terminate the CUP, and any privileges granted hereunder shall become null and void; unless a written time extension for a period not to exceed one (1) year is granted by the Planning Commission. A written request to extend the time to comply with the conditions of approval stated in the CUP must be submitted to the Bell Gardens Community Development Department at least thirty (30) days prior to the expiration of the one (1)-year period.

5. Consistent with Condition No. 2, in the event of a transfer of ownership, rights, interests, obligations and/or privileges of the Subject Site involved with this CUP No. 2023-073, the transferee shall be fully informed and consent to the conditional use and development of Subject Site as set forth by this CUP together with all conditions, which are stated herein.

6. The Applicant shall comply with all applicable City, county, DCC, and other state regulations as they pertain to the sale of cannabis. Violation of any of the conditions of CUP No. 2023-073 or of any city, county and/or state law or regulation pertaining to the sale of cannabis shall be cause for revocation and termination of all rights hereunder.

7. The Applicant shall obtain all necessary permits and licenses from the state, City, and county agencies, including but not limited to, Fire Department and Industrial Waste for the proposed improvements and business operations on the Subject Site.

8. Prior to issuance of a Project building permit, the Applicant shall submit payment for the Bell Gardens Development Impact Fee(s) pursuant to Chapter 3.27 of the BGMC. For the purposes of this condition, “building permit” shall have the same definition as BGMC Section 9.20.160(D).

9. Prior to issuance of a Project building permit, the Applicant shall submit design or payment for the Bell Gardens Art in Public Places pursuant to Chapter 9.71 BGMC.

For the purposes of this condition, “building permit” shall have the same definition as BGMC Section 9.20.160(D).

Resolution #PC 2025-10

10. City staff, including but not limited to, the City Manager, Community Development Department, Bell Gardens Police Department, Los Angeles County Fire Department, and DCC shall have the right-of-entry at any time to inspect the Subject Site to verify compliance with these conditions of approval, terms set forth in DA No. 2023-073 and the BGMC, including but not limited to the operating requirements set forth in BGMC Section 5.64.040 and all state and county laws and regulations.

11. Prior to commencing operations, Applicant and/or owner/operator must possess a valid retail license, issued by DCC, pursuant to Division 10, commencing with Section 26000, of the California Business and Professions Code.

12. Prior to commencing operations, the Applicant and/or owner/operator must obtain a business regulatory permit pursuant to Chapter 5.12 and Chapter 5.64 of the BGMC.

Consistent with the requirements of BGMC Section 5.64.020, the Applicant and/or owner/operator shall commence operations within one (1) year of issuance of a business regulatory permit. Failure to commence operations within one (1) year of the issuance of a business regulatory permit shall constitute grounds for revocation and termination of all rights hereunder.

13. The Director of Community Development and/or their designee(s) shall be authorized to make minor modifications to this CUP No. 2023-073 or any of the conditions specified herein if the modifications shall achieve substantially the same results as would strict compliance with the approved conditional use permit and conditions.

14. The Subject Site shall be developed, maintained, and used in a neat, quiet, and orderly condition and all uses on the Subject Site shall be operated in a manner that shall not disturb or be detrimental to adjacent properties, surrounding land uses, or occupants.

15. Hours and days of exterior building construction and site improvements shall be as follows: Monday through Saturday, not before 8:00 A.M. and not after 7:00 P.M. on the same day. No construction or grading shall take place on Sundays and City observed holidays.

16. The Applicant shall ensure that the Subject Site is properly maintained, secured, and free of debris at all times/phases of construction.

17. Prior to commencing the construction of the Project, the Applicant shall submit a site plan indicating on-Subject Site vehicular and pedestrian traffic circulation during all stages of construction to the Community Development Department for review and approval.

18. The Subject Site and surrounding area shall be maintained in a manner free of graffiti at all times and for the life of the permit. Any graffiti that should appear on buildings, walls, or other private property on the Subject Site shall be removed within forty-

Resolution #PC 2025-10

eight (48) hours of being observed or reported. If painting is required, the paint shall be identical to the existing color.

19. During operations, the Subject Site, and adjacent public rights-of-way (ROW), inclusive of the alley adjacent north of the Subject Site, shall be maintained in a clean and well-kept condition, free of debris and litter at all times.

20. In lieu of fully installed and planted landscaping, prior to issuance of a building permit, fixed planters, where applicable, shall be depicted on an Site Plan and fixed planters shall be installed on the Subject Site, subject to the satisfaction of the Director of Community Development prior to Project certificate of occupancy, finalized building job card, or equivalent document signed by the building official. For the purposes of this condition, “building permit” shall have the same definition as BGMC Section 9.20.160(D).

21. Off-street parking areas shall remain maintained (free from debris, litter, and wilted or dead live scape removed and replaced) for the life of the permit.

22. The Applicant and/or their designee shall ensure that any existing public telephones located on the premises be removed from the Subject Site. The installation of any outside public telephones shall be prohibited on the Subject Site and the public ROW.

23. The hours of retail operation at the Subject Site shall be restricted as follows: 10:00 A.M. until 10:00 P.M., Monday through Sundays, with the last delivery order to be placed by 9:00 P.M. and all delivery vehicles returned no later than 10:00 P.M.

24. The installation of signs on the Subject Site shall be in accordance with the provisions in Chapter 9.48 of BGMC and in substantial conformance with the proposed signage approved by the Planning Commission. Temporary signs, such as banners, pennants and flags shall be prohibited, except for any traffic/safety signs specific to construction activity.

25. Signs prohibiting loitering, smoking, and vaping on or around the Subject Site shall be posted and maintained to the satisfaction of the Bell Gardens Police Department prior to issuance of a certificate of occupancy, temporary certificate of occupancy, final building permit, finalized job card, or equivalent thereof.

26. Prior to issuance of a certificate of occupancy, temporary certificate of occupancy, final building permit, finalized job card, or equivalent thereof, the Applicant shall work closely with the Bell Gardens Police Department in updating the Security Plan to guarantee adequate security measures are provided on the Subject Site, inclusive of the surface parking lot, at all times.

27. There shall be no outdoor storage permitted on the Subject Site at any time.

Resolution #PC 2025-10

Cannabis Retail – Conditional Use Operating Conditions

28. These conditions of approval must be posted in a conspicuous location for public viewing within the establishment on a continuous basis for the life of the Project beginning on the date that operations at the Subject Site commence.

29. The establishment shall only allow patrons of the age twenty-one (21) and older, with presentation of a valid government-issued identification card or eighteen (18) and older with a physician’s recommendation.

30. No persons under the age of twenty-one (21) shall be employed to sell cannabis or cannabis products at the Subject Site at any time for the life of the project.

31. An electronic age verification device shall be purchased and retained at the Subject Site to determine the age of any individual and shall be installed at each point-of- sale location prior to issuance of a certificate of occupancy, temporary certificate of occupancy, final building permit, finalized job card, or equivalent thereof.

32. The electronic age verification device shall be maintained in operational condition at all times, at each point-of-sale location, and all employees shall be instructed in its use. If an age verification device fails to operate at any point-of-sale location, no sales shall take place at that point-of-sale location until the age verification device is repaired and operational at any time for the life of the project.

33. Applicant shall create and maintain an account within the DCC track and trace system prior to engaging in any commercial cannabis activity, including:
a. All commercial cannabis activity shall be accurately recorded in the track and trace system.
b. Applicant will be responsible for the accuracy and completeness of all data and information entered into the track and trace system. The licensee is responsible for all actions taken by the designated account manager or other account users while performing track and trace activities. c. A person shall not intentionally misrepresent or falsify information entered into the track and trace system.

34. Records of all sales, whether cash, debit, or credit, must be receipted, kept, and reported as required by the California Department of Tax and Fee Administration (formerly Board of Equalization) under title 18, California Code of Regulations, sections 1698 and 4901.

35. All cash sales must be receipted, and all information captured in the track-and-trace system established pursuant to Business and Professions Code section 26067, including, but not limited to, aggregated sales or transfer information, as applicable.

Resolution #PC 2025-10

36. Applicant and/or owner/operator shall abide by all laws applicable to cannabis retailers pursuant to the Medicinal and Adult-Use Cannabis Regulation and Safety Act (Bus. & Prof. Code § 26000 et seq.) and related Medicinal and Adult-Use Commercial Cannabis Regulations (Cal. Code Regs., tit. 4, § 15000 et seq.).

37. Applicant shall perform pre-employment background checks, to be conducted by an accredited member organization of the National Association of Background Screeners, and recurrent annual background checks performed.

38. Applicant shall provide at least one dedicated security office on site, twenty-four (24) hours a day, seven (7) days a week; and one designated manager on site during operation hours.

39. Applicant shall provide a back-up power supply, for at least twenty-four (24) hours, for the storefront, in the event of a power outage.

40. Signs advertising cannabis brands or the availability of cannabis or cannabis products for sale at the Subject Site shall not be visible from the exterior of the building at all times.

41. The display of cannabis and cannabis products shall be interior only (no outdoor display) at all times.

42. Other than limited amounts of cannabis used for interior display purposes or immediate sale, all cannabis and cannabis products shall be stored in a secured and locked room, safe, or vault, and in a manner reasonably designed to prevent diversion, theft, and loss at all times.

43. There shall be no food, beverage, video or pinball games, televisions, or similar loitering attractions accessible to customers, persons engaged in sales or any transactions, and/or patrons, on the Subject Site at all times.

44. There shall be no samples provided for the on-site consumption of cannabis and cannabis products at any time.

45. There shall be no sale or display of cannabis products that is in the form of an alcoholic beverage, including, but not limited to, an infusion of cannabis or cannabinoids derived from industrial hemp into an alcoholic beverage at any time.

46. There shall be no sale of cannabis and cannabis products over the daily legal limit to any single patron at any time, pursuant to California Health and Safety Code Section 11357.

47. All cannabis and cannabis products purchased by patrons shall not leave the Subject Site unless they are placed in an opaque packaging at any time.

Resolution #PC 2025-10

48. Consumption of cannabis and cannabis products on-site is strictly prohibited, outside of the building either on the public ROW or anywhere on the Subject Site at all times.

49. Pursuant to California Labor Code Section 6404.5(c), smoking in the facility shall be strictly prohibited at all times. There shall be no display of ashtrays, or other receptacles for the purpose of collecting smoke-related debris within the interior or exterior of the building at the Subject Site.

50. Cover charges, entry fees, or minimum purchases for patrons visiting the facility shall be strictly prohibited.

51. The authorized conditional use shall be conducted at all times with due regard for the character of the surrounding neighborhood, and the right is reserved to the City Manager, Community Development Director, or their designee(s) to impose additional corrective conditions, if, it is determined that such conditions are proven necessary for the protection of persons in the neighborhood or occupants of adjacent or nearby properties.

52. The facility shall operate in accordance with the Security Plan, incorporated by reference and attached hereto, at all times. Surveillance recordings shall be maintained for a minimum period of sixty (60) days and are intended for use by the Bell Gardens Police Department.

53. The facility shall operate in accordance with the Lighting Plan, incorporated by reference and hereto, at all times. All exterior portions of the site shall be adequately illuminated in the evening so as to make discernable the faces and clothing of persons utilizing the space. Lighting shall be directed onto the Subject Site without being disruptive to uses at the adjacent properties.

54. The facility shall operate in accordance with the Odor Mitigation Plan, incorporated by references and attached hereto, at all times.

55. The Bell Gardens Police Department shall be notified within twenty-four (24) hours of any diversion, theft, loss, or other criminal activity on the premises that occurs at any point after the approval of this CUP.

Building/Site Improvements

56. The proposed site improvements on the Subject Site shall be subject to review and approval by the Planning and Building and Safety Divisions. All proposed improvements shall be completed in accordance with the provisions of the California Building Code as amended by Title 26 of the Los Angeles County Building Code. All required permits from the Building and Safety Division shall be secured prior to commencing the construction of the Project. For the purposes of this CUP, the term

Resolution #PC 2025-10

“construction” includes any demolition, grading, and construction activities, inclusive of tenant improvements.

57. All improvements at the Subject Site shall comply with all Americans with Disabilities Act (ADA) of 1990 requirements as part of the Building and Safety plan check process.

58. The Applicant shall be responsible for submitting plans for Building and Safety plan check and obtain permits for all the work proposed on the Subject Site.

59. Vehicles associated with the construction activities at the Subject Site shall not be permitted to park on the public ROW, inclusive of the alley adjacent of the Subject Site.

60. Temporary storage of building materials shall be contained within the Subject Site and shall be properly secured and screened during all stages of construction.

61. During all stages of construction, the Subject Site shall maintain a six-foot (6’) high chain-link fence and gates around the entire perimeter of the Subject Site. The gates shall be closed and locked after construction hours.

62. Contractors and subcontractors engaged in the construction activities at the Subject Site shall obtain a business license and all required permits from the City of Bell Gardens.

63. Prior to the installation of any signs at the Subject Site, the Applicant shall submit three (3) sets of sign plans for final review and approval to the Community Development Department pursuant to BGMC Section 9.48.030. Sign plans shall include elevations, lettering, colors, dimensions, and installation methods, types of lighting and such other information as may be required to assure compliance with all appropriate regulations of the City.

64. Prior to submittal of plans to Building and Safety plan check, the Applicant shall submit a color and material sample board for the exterior building materials and paint colors for trims, wall surfaces, moldings, decorative awnings, frame and glass for all windows and doors, and other exterior building elements shall be subject to review and approval by the Community Development Department. Subsequent construction of the Project shall substantially comply with the approved exterior building elements.

65. Prior to issuance of a building permit, the Applicant shall submit for review and approval to the Community Development Department a sample of the window frame and glass that shall be utilized on the door and windows of the building. Pursuant to BGMC Section 9.20.160(B)(3) windows facing the street frontage shall be clear, untinted glass. Mirror, reflective, or tinted glass may only be permitted as an architectural or decorative accent and shall comprise no more than twenty percent

Resolution #PC 2025-10

(20%) of the window. For the purposes of this condition, “building permit” shall have the same definition as BGMC Section 9.20.160(D).

66. Decorative railings and grilles that are placed behind windows shall be at least 75 percent (75%) open to perpendicular view and no more than six feet (6’) in height.

Security gates and grilles shall be prohibited on the exterior of any structure.

67. Prior to issuance of a certificate of occupancy, temporary certificate of occupancy, final building permit, finalized job card, or equivalent thereof, the roof drainage system shall be integrated into the walls of the building so that there are no visible downspouts to the satisfaction of the Building and Safety Division.

68. Any new roof mounted mechanical equipment, including any air compressor units, shall be installed a minimum of six inches (6”) below the lowest building parapet in order to prevent the visibility from public ROW. Compliance shall be demonstrated to the satisfaction of the Building and Safety Division prior to the issuance of a certificate of occupancy, temporary certificate of occupancy, final building permit, finalized job card, or equivalent thereof.

69. The following construction practices shall be implemented by all Project contractors to reduce construction noise levels:
a. Ensure that construction equipment is properly muffled according to industry standards, and all equipment shall utilize noise shielding and muffling devices.
b. Locate the construction staging area and noise-generating equipment away from adjacent residents as much as feasible.

70. The Applicant shall work closely with City staff to coordinate appropriate accommodations for commercial waste service on the Subject Site prior to issuance of any Project building permit. For the purposes of this condition, “building permit” shall have the same definition as BGMC Section 9.20.160(D).

71. Proposed and required on-Subject Site and off-Subject Site improvements shall be completed by the Applicant prior to issuance of a certificate of occupancy, temporary certificate of occupancy, final building permit, finalized job card, or equivalent thereof by the City on the Subject Site.

72. Water heater enclosures, vents, flashings, pipes, and conduits for solar or other wall- mounted equipment shall be painted the same color as the surface to which they are attached to the satisfaction of the Building and Safety Division, prior to issuance of a certificate of occupancy, temporary certificate of occupancy, final building permit, or equivalent thereof by the City on the Subject Site.

Resolution #PC 2025-10

73. Prior to issuance of a certificate of occupancy, temporary certificate of occupancy, final building permit, finalized job card, or equivalent thereof, all cable television service connections to the Project shall be installed underground. All cable and connectors shall be screened completely from view and within the building served.

Visible cabinets and boxes shall be treated to match the materials and colors of the buildings. The Applicant is responsible for contacting the cable company and arranging cable installation at the appropriate stage of construction. The type and location of cable installation is subject to approval of the Community Development Department and the construction coordinator of the cable television company servicing the area prior to issuance of Project building permits.

74. Prior to issuance of a certificate of occupancy, temporary certificate of occupancy, final building permit, finalized job card, or equivalent thereof, all electrical service connections to the Project shall be installed underground. All surface or ground mounted mechanical equipment including terminal boxes, pull boxes and electric meter cabinets shall be screened from public view and treated to match the materials and colors of the adjacent building. The Applicant is responsible for contacting Southern California Edison and arranging electrical service at the appropriate stage of construction. Installation of mechanical equipment is subject to approval by the Community Development Department and the customer service planner at Southern California Edison Company prior to issuance of Project building permits. For the purposes of this condition, “building permit” shall have the same definition as BGMC Section 9.20.160(D).

75. The trash enclosure shall be constructed with a six-foot (6’)-high split face concrete masonry unit block wall to match the proposed building materials on the Subject Site. A six-foot (6’)-high metal gate shall be installed and provided with a self-closing and self-latching mechanism. The top of the structure shall be protected with a decorative metal trellis and the same color as the existing building.

76. The Project shall adhere to and maintain lighting at the Subject Site consistent with the submitted Lighting Plan.

Los Angeles County Fire Department (Fire Department)

77. The Applicant shall obtain all required Fire Department approvals and permits prior to commencing the construction of the proposed improvements on the Subject Site.

For the purposes of this CUP, the term “construction” includes any demolition, grading, and construction activities.

78. Prior to Fire Department plan check, plans must be submitted to the City for initial review (i.e., fire sprinkler plans, etc.).

79. The Applicant shall ensure that fire protection facilities, including access, must be provided prior to and during construction. For the purposes of this CUP, the term “construction” includes any demolition, grading, and construction activities.

Resolution #PC 2025-10

80. Prior to the issuance of a Project building permit, the Applicant shall conduct a fire flow test to determine if the existing water line serving the Project has adequate capacity for both potable water and fire flow and submit the results to the City of Bell Gardens Community Development Department. For the purposes of this condition, “building permit” shall have the same definition as BGMC Section 9.20.160(D).

81. Prior to the issuance of a Project building permit, the Applicant shall submit two (2) sets of architectural plans to the Los Angeles County Fire Prevention Division, Building Plan Check Unit office located at 5823 Rickenbacker Road, Commerce, CA 90040. Architectural Plans shall include, but not be limited to, a site plan, floor plan, elevations, door and window schedules and appropriate section details. The site plan, floor plan, and elevations shall be consistent with the plans attached as exhibits and incorporated by reference, herein.

82. The Applicant shall comply with all required conditions of approval established by the Fire Department. Additionally, the Applicant shall obtain all required Fire Department approval and permits prior to commencing the construction of the proposed improvements on the Subject Site. For the purposes of this CUP, the term “construction” includes any demolition, grading, and construction activities.

83. The site plan shall show all the existing fire hydrant locations within 300 feet of all Subject Site property lines.

Public Works Department

84. All Design Standards and Parameters shall be per the County of Los Angeles and the City of Bell Gardens. If a conflict arises between these standards, the City of Bell Gardens Standards shall prevail.

85. Prior to issuance of a Project building permits the applicant shall prepare all on- Subject Site and off-Subject Site improvements plans and specification in compliance with the ADA and shall dedicate all necessary public ROW to complete the improvements to the satisfaction of the City Engineer.

86. Prior to the issuance of a Project grading permit, the applicant shall conduct their operations in a manner that will not violate the current National Pollutant Discharge Elimination System (NPDES) City Permit or Stormwater Pollution Prevention Plan (SWPPP). Subject Site parking lot drainage shall be directed to new planters noted on plan as applicable.

87. Prior to the issuance of a Project grading permit, the Applicant shall comply with all rules and conditions for the Water Quality Board and shall conduct their construction operations accordingly.

88. Prior to the issuance of a Project grading permit, the Applicant provide explanation and location of trash receptacle/enclosures, and/or turning radius analysis that a

Resolution #PC 2025-10

trash truck can negotiate through the development. All trash operations shall comply with current waste reduction regulations including green and organic wastes.

89. Public ROW improvements shall include the replacement of curb/gutter and sidewalk as required to eliminate trip hazards or ADA compliance issues in compliance with ADA Guidelines along Gage and Darwell frontage lines. Coordinate slot cutting of existing pavement for construction of the improvements and AC paving prior to issuance of a Project building permit. For the purpose of this condition, “building permit” shall have the same definition as BGMC Section 9.20.160(D).

90. The Applicant shall paint the curb with street address accordingly prior to issuance of a certificate of occupancy, temporary certificate of occupancy, final building permit, finalized job card, or equivalent thereof by the City on the Subject Site.

Parking Lot/Site Maintenance

91. The Subject Site and adjacent public ROW shall be cleared of all construction debris prior to the issuance of a certificate of occupancy, temporary certificate of occupancy, final building permit, finalized job card, or equivalent approval by the Community Development Department.

92. All parking spaces, drive aisles, walkways, shall be free of gouges, ruts, and/or gaps in the paved surface area and shall be maintained in good working order to not constitute a safety hazard to the public prior to issuance of a certificate of occupancy, temporary certificate of occupancy, final building permit, finalized job card, or equivalent thereof by the City on the Subject Site.

93. The proposed parking lot area including but not limited to vehicle maneuvering areas within the Subject Site shall be improved with asphalt pavement to the satisfaction of the Community Development Department. Parking lot and public ROW, inclusive of sidewalk areas immediately adjacent to the Subject Site, shall be pressure washed quarterly to remove oil stains and maintained clear of trash, debris, and outside storage prior to issuance of a certificate of occupancy, temporary certificate of occupancy, final building permit, finalized job card, or equivalent thereof by the City on the Subject Site at all times.

94. All designated parking spaces shall be striped in accordance with the BGMC and provided with concrete wheel stops at the front end of each parking space prior to issuance of a certificate of occupancy, temporary certificate of occupancy, final building permit, finalized job card, or equivalent thereof by the City on the Subject Site.

95. Any required ADA truncated domes shall be composed of stamped concrete and shall be a dark gray color prior to issuance of a certificate of occupancy, temporary certificate of occupancy, final building permit, finalized job card, or equivalent thereof by the City on the Subject Site.

Resolution #PC 2025-10

96. The repair or maintenance of any vehicles on the Subject Site, public ROW such as a street or alley, including but not limited to oil change or adding fluids to vehicles, shall be strictly prohibited. Signs shall be posted throughout the parking lot area prior to issuance of a certificate of occupancy, temporary certificate of occupancy, final building permit, finalized job card, or equivalent thereof by the City on the Subject Site stating that repair and maintenance activities at the Subject Site are prohibited.

No device shall be loaned by the owner, employee, or patron of the business to assist in this effort.

97. Inoperable vehicles shall not be parked within any designated parking spaces, drive aisle, or public ROW adjacent to the Subject Site at any time.

98. The Applicant shall maintain the existing fence, until such time that the Applicant submits fence/walls plans to the satisfaction of the Director of the Community Development Department , Planning Division for review and approval in accordance with Chapter 9.32 (Fence, Walls, and Hedges) BGMC, prior to the replacement of existing fencing.

99. The heights of all new fences shall be measured from the highest finished grade level on either side of the Subject Site’s property line.

Miscellaneous
100. The owner of the Subject Site, and the Project Applicant, if different from the property owner, and each of their heirs, successors in interest, and assigns, shall defend, indemnify, and hold harmless the City and its officials, agents, officers, and employees from any and all claims, actions, or proceedings brought by any party to attack, set aside, void or annul, rescind, or otherwise challenge the approval of the Project or the approval of any entitlement related to the Project by the City Council, Planning Commission, or its staff, including but not limited to, environmental determinations. Such indemnification and hold harmless shall include damages, judgments, settlements, penalties, fines, and defensive costs and expenses, incurred by, or ordered against the City in connection with or arising out of such claims, actions, or proceedings, including but limited to, interest, reasonable attorneys’ fees and costs, or expert witness fees, incurred by the City. The City shall promptly notify the Applicant of any claim, action or proceeding and the City and Applicant shall mutually cooperate fully in the defense thereof. 101. The Applicant shall sign, notarize, and return to the Community Development Department an affidavit accepting all conditions of approval of this CUP No. 2023- 073 within fifteen (15) days from the approval of Resolution #PC 2025-10 and CUP No. 2023-073. The Applicant acknowledges and understands that all conditions set forth in this Resolution are conditions precedent to the Commission’s grant of approval and failure to comply with any condition contained herein shall render this CUP non-binding as against the City and shall confer the Applicant no legal rights

Resolution #PC 2025-10

under the law. This conditional use permit shall not become effective unless and until the Applicant returns the fully executed, notarized affidavit to the Community Development Director within the time stated. Failure to comply with this condition within the prescribed time period above shall render this CUP null and void.

RESOLUTION #PC 2025-11

RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF BELL GARDENS RECOMMENDING THE ADOPTION OF ORDINANCE NO. 957

AUTHORIZING THE EXECUTION OF DEVELOPMENT AGREEMENT
NO. 2023-073 BY AND BETWEEN THE CITY OF BELL GARDENS,
FRANCISCO AGUIRRE JR., AND EASTERN AVENUE HOLDINGS, LLC

WHEREAS, Francisco Aguirre Jr. (Applicant) has requested approval of a development agreement (DA) and a conditional use permit (CUP) to develop and operate a KureLeaf cannabis retail business in the City of Bell Gardens (City);

WHEREAS, Ordinance No. 957 would authorize the City to enter into and execute a development agreement to establish certain development rights at 7821 Eastern Avenue (Subject Site) in exchange for public benefits for a five (5)-year term, with an option for an additional five (5)-year extension, by and between the City, Francisco Aguirre Jr, and Eastern Avenue Holdings, LLC, in connection with a CUP authorizing a cannabis retail use, subject to conditions of approval;

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. (Development Agreement Statute), which authorizes the City and an individual with an interest in real property to enter into a development agreement in order to establish certain development rights on real property in exchange for public benefits;

WHEREAS, consistent with the requirements of the Development Agreement Statute, the City Council adopted Resolution No. 2023-043 (Development Agreement Procedures) on June 12, 2023, authorizing the use of and establishing the procedures and requirements for the consideration of development agreements within the City;

WHEREAS, the Development Agreement Procedures permit a cannabis retail use for a term not to exceed 10 years in exchange for public benefits;

WHEREAS, on June 26, 2023, the City Council adopted Ordinance No. 934, which conditionally permits a cannabis retail use within Commercial and Industrial Zones, subject to certain siting requirements and conditions of approval for a term of 18 months unless an applicant executes a development agreement with the City;

WHEREAS, the Subject Site is designated within the City’s General Plan Land Use Element as Mixed Use (Commercial/Residential) (MU);

WHEREAS, the MU Land Use Element designation has been concentrated on parts of Eastern Avenue and Gage Avenue and refers to a combination of commercial and residential uses working in tandem;

WHEREAS, the corresponding zone for the MU Land Use Element designation is the Mixed-Use (M-U) Zone, which conditionally permits a cannabis use, subject to certain

Resolution #PC 2025-11

locational requirements and development standards and the Subject Site is located within Zone M-U;

WHEREAS, the Applicant has applied for a CUP to permit a cannabis retail use at the Subject Site;

WHEREAS, in conjunction with the CUP, the Applicant has requested for a development agreement to permit a cannabis retail use for a term of five (5) years, with an option to extend the term of the development agreement for an additional five (5)-year term in exchange for public benefits that shall obligate the Applicant to provide an up-front payment of One Hundred Thousand Dollars ($100,000) upon the effective date of the development agreement, to be renewed on an annual basis as well as the payment of quarterly public benefits in an amount equivalent to seven percent (7%) of gross receipt sales;

WHEREAS, pursuant to the City’s Development Agreement Procedures, 80 percent (80%) of the public benefits derived from DA No. 2023-073 shall be dedicated to youth and educational programming and resources for the City’s housing programs;

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

WHEREAS, the Project is consistent with Policy 3 because the Project would repurpose a vacant commercial property and provide additional commercial activity along a major corridor within the City limits;

WHEREAS, Policy 5 of the Land Use Element requires the City to provide an environment to stimulate local employment, property values, community stability, and the economic vitality of existing local businesses;

WHEREAS, the Project is consistent with Policy 5 because it would involve the revitalization of an existing commercial site;

WHEREAS, the DA would facilitate the orderly development of the Subject Site; create a physical environment that would be consistent with and complement the City's goals and visions; protect natural resources from adverse impacts; improve, upgrade, and create additional community facilities and infrastructure, enhance services, and assist in implementing the goals and policies of the General Plan; and reduce the economic risk to the surrounding community;

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;

Resolution #PC 2025-11

WHEREAS, DA No. 2023-073 incentivizes active participation in the development process based on significant public benefits derived from monetary contributions; such payments would be dedicated to the City’s youth and housing programs and could be used immediately to promote the public health, safety, and general welfare of the surrounding community;

WHEREAS, the Applicant acknowledges and agrees that the development agreement would confer substantial private benefits on them that would place burdens on City infrastructure, services, and neighborhoods and that the private benefits provided to the developer should be balanced with commensurate public benefits for the community;

WHEREAS, the proposed DA would be connected to and requires compliance with a CUP that clearly outlines specific conditions, requirements, and timelines for the development of the retail storefront facility to help ensure the Applicant remains in compliance with all local, state, and federal regulations, where applicable;

WHEREAS, DA No, 2023-073 is designed to facilitate ongoing communication and collaboration between the Applicant who would be licensee and the local community addressing concerns and ensuring the retail storefront aligns with community values and interests;

WHEREAS, the proposed DA promotes balance through the operational flexibility built into the agreement addressing unforeseen challenges or changes in circumstances, allowing for adjustments as needed through City Council approval;

WHEREAS, in exchange for an initial five (5)-year term, with an option to extend the development rights for an additional five (5) years for a total of 10 years, the Applicant would provide an annual community benefit in the amount of One Hundred Thousand Dollars ($100,000) upon the effective date for the development agreement and renewed on an annual basis and would also be required to pay a quarterly community benefit in the amount that is equivalent to seven percent (7%) of gross receipt sales on a quarterly basis;

WHEREAS, the Applicant agrees that the payment of Community Benefits Fees is proportionate to the amount that would be paid in the form of an applicable tax on commercial cannabis activities in the City related to the Project, contributing to a housing fund and youth fund;

WHEREAS, the Project would repurpose an existing building, that would result in no additional floor area, on an already developed commercial property and would operate similarly to other retail operations, be subject to the same development standards as other commercial operations, including but not limited to height, setbacks, and parking, but subject to more restrictive locational siting requirements and it can be seen with certainty that the approval and regulation of cannabis retail sales at the Subject Site for a term of up to 10 years would cause no reasonably foreseeable direct or indirect impact on the environment pursuant to the California Environmental Quality Act (CEQA) (Pub. Res. Code § 21000 et seq.) and CEQA Guidelines (Cal. Code Regs., tit. 14, § 15000 et seq.) Sections

Resolution #PC 2025-11

15061(b)(3) (Common Sense Exemption) and 15301 (Existing Facilities);

WHEREAS, pursuant to California Government Code Sections 65854, 65090, and 65091, the Planning Commission duly noticed, agendized, and conducted a public hearing on this matter on April 16, 2025;

WHEREAS, the Planning Commission considered all public comments received both before and during the public hearing, the presentation by City staff, the relevant staff report, and all other pertinent documents related to a proposed ordinance which would result in the approval of DA No. 2023-073 between the City, the Applicant, and the Property Owner for a potential term of up to 10 years in exchange for public benefits; and

WHEREAS, after the close of such public hearing, the Planning Commission adopted Resolution #PC 2025-03, recommending to the City Council the approval of Ordinance No. 952.

NOW, THEREFORE, THE PLANNING COMMISSION HEREBY RESOLVES, DETERMINES, AND FINDS AS FOLLOWS:

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

SECTION 2. Pursuant to the Development Agreement Procedures, DA No. 2023- 073:

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 Planning Commission hereby adopts this Resolution recommending to the City Council the approval of DA No. 2023-073 through the adoption of an ordinance and authorizes the City Attorney to make clarifying changes as necessary to effectuate the terms of the DA.

SECTION 4. The Planning Commission hereby transmits and recommends to the City Council the approval of an ordinance to authorize DA No. 2023-073 execution.

SECTION 5. The Project is exempt from CEQA, in accordance with CEQA Guidelines Sections 15061(b)(3) (Common Sense Exemption), and 15301 (Existing Facilities).

Resolution #PC 2025-11

SECTION 6. If any portion of this Resolution is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.

PASSED, APPROVED AND ADOPTED this 16th day of April 2025.

ERNESTO RAMIREZ, CHAIRPERSON

ATTEST:

LILLY CARRILLO, PLANNING SECRETARY

APPROVED AS TO FORM:

LLOYD PILCHEN, ASSISTANT CITY ATTORNEY

CUP & DA No. 2023-073 | 7821 Eastern Avenue
Los Angeles County Assessors Map

Subject Site

CUP & DA No. 2023-073 | 7821 EASTERN AVENUE

SITE PLAN

CUP & DA No. 2023-073 | 7821 EASTERN AVENUE

FLOOR PLAN

CUP & DA No. 2023-073 | 7821 EASTERN AVENUE

ELEVATIONS

CUP & DA No. 2023-073 | 7821 EASTERN AVENUE

ELEVATIONS

CUP & DA No. 2023-073 | 7821 EASTERN AVENUE

ELEVATIONS

CUP & DA No. 2023-073 | 7821 EASTERN AVENUE

ROOF PLAN

CUP & DA No. 2023-073 | 7821 EASTERN AVENUE
RADIUS MAPS – 500, 600 and 1,500-foot

PUBLIC NOTIFICATION

NOTICE OF PUBLIC HEARING

A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF BELL GARDENS APPROVING CONDITIONAL USE PERMIT NO. 2023-073 AND A

RESOLUTION RECOMMENDING APPROVAL OF AN ORDINANCE FOR A

PROPOSED DEVELOPMENT AGREEMENT AUTHORIZING A CANNABIS RETAIL USE AT 7821 EASTERN AVENUE, BELL GARDENS, CA 90201

NOTICE IS HEREBY GIVEN, the Planning Commission of the City of Bell Gardens will conduct a public hearing to consider approval of a conditional use permit and recommendation to the City Council to approve an ordinance to enter into and execute a development agreement to authorize a cannabis retail storefront approximately 1,748 square feet in size , located within Zone M -U (Mixed Use Residential/Commercial) and within the MU (Mixed Use Commercial/Residential) General Plan Land Use Designation.

DATE OF HEARING: Wednesday, April 16, 2025.

TIME OF HEARING: 5:15 P.M., or as soon thereafter as possible.

ENVIRONMENTAL DETERMINATIONS: In accordance with the California Environmental Quality Act (CEQA) (Pub. Res. Code § 21000 et seq.) and CEQA Guidelines (Cal. Code Regs., tit. 14, § 15000 et seq.), staff recommends that action on the proposed conditional use permit and ordinance authorizing a development agreement are both found to be categorically exempt from the provisions of CEQA pursuant to CEQA Guidelines Section 15301 (Existing Facilities) and Section 15061(b)(3) (Common Sense Exemption).

INVITATION TO BE HEARD/PUBLIC PARTICIPATION: The public hearing will be held before the City of Bell Gardens Planning Commission at 7100 Garfield Avenue, Bell Gardens, CA 90201 on Wednesday, April 16, 2025, at 5:15 p.m. The public may attend the meeting in person or may view the meeting online. The meeting will be recorded and live streamed on the City's website at https://www.bellgardens.org/i-want-to/watch- commission-meetings. Public comments for the public hearing are limited to three (3) minutes per person. Members of the public can access and participate in the meetings as follows:

IN-PERSON: Members of the public can provide in -person comments at the podium in the Council Chamber. The Council Chamber will have seating available for members of the public to attend the meeting in -person, subject to capacity limits. Public comments are limited to three (3) minutes for each designated public comment period(s) per speaker unless a different time is announced by the presiding chair. Speakers who wish to address the Planning Commission should do so by submitting a "Public Comment Card" card by 5:15 p.m. for all other designated public comment periods as listed.

BY TELEPHONE: Phone Number: (669) 900-9128 Webinar ID: 892 6467 1097# Passcode: *2021# To address the Planning Commission press *9 to raise your hand then *6 to unmute yourself when instructed.

PUBLIC NOTIFICATION

VIRTUALLY LIVE: Members of the public may participate via Zoom by clicking here https://zoom.us/join and entering the Zoom Meeting ID: 892 6467 1097 Passcode:
2021. Comments may also be made via the Zoom app by using the “Raise Hand” feature when it is your turn to speak the host will unmute you. Comments will not be accepted in the QandA Chat function of the Zoom app.

WRITTEN COMMENTS: Public comments may be emailed to [email protected] or mailed to: Community Development Department, 7100 Garfield Ave., Bell Gardens, CA 90201. To ensure distribution to the members of the Planning Commission prior to consideration of the agenda, please submit comments no later than one (1) hour prior to the meeting. Those comments, as well as any comments received after, will be distributed to the members of the Planning Commission and will be part of the official public record of this meeting.

If requested, the agenda and backup materials will be made available in appropriate alternative formats to persons with a disability, as required by Section 202 of the Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12132), and the federal rules and regulations adopted in implementation thereof. Any person who requires a disability - related modification or accommodation, in order to observe and/or offer public comment may request such service by contacting the Community Development Department’s Office no later than 72 hours before the scheduled meeting.

The Planning Commission agenda packet will be available in the Community Development Department Office and posted on the City’s website at https://www.bellgardens.org/i-want-to/view-agendas 72 hours prior to the meeting.

For more information, you may contact the Community Development Department during regular business hours 7:30 a.m. to 6:00 p.m., Monday through Thursday at (562) 806 - 7722 or via email to [email protected].

BELL GARDENS COMMUNITY DEVELOPMENT DEPARMENT
John Ramirez, Interim Community Development Director

Posted: March 27, 2025
Bell Gardens City Hall
Bell Gardens John Anson Ford Park
Bell Gardens Veterans Park - Ross Hall Auditorium
Bell Gardens Department of Public Works
Daily Journal Corporation (Bell Gardens Newspaper) – General Circulation

CUP & DA No. 2023-073 | 7821 EASTERN AVENUE
RADIUS MAPS – 500, 600 and 1,500-foot

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: May 12, 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

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 April 28, 2025, Closed Session and City Council/Successor AgencyJoint Meetings
MEETING DATE:May 12, 2025

RECOMMENDATION:

It is staff's recommendation that the City Council approve the minutes of the April 28, 2025, Closed Session and City Council/Successor Agency Joint Meetings.

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 Closed Session and City Council/Successor Agency Joint Meetings 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

CITY OF BELL GARDENS

MINUTES
City Council / Successor Agency to the Community Development Commission Joint Meeting
Monday, April 28, 2025, 5:00 PM

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.

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.

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.

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.

1. CALL TO ORDER
The Council Members of the City of Bell Gardens City Council held a regular meeting on April 28, 2025, in the Council Chambers, 7100 Garfield Avenue, Bell Gardens, CA with Mayor Jorgel Chavez presiding at 5:09 p.m.

2. 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

3. 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.

City Clerk Daisy Gomez announced that there were no written comments, and no public comments were provided.

4. CLOSED SESSION ITEMS
City Attorney Stephanie Vasquez announced the Closed Session items. The City Council recessed into closed session at 5:11 p.m. to discuss the items listed on the agenda.

4.1 Closed Session Pursuant to Government Code Section
54957 - Public Employee Discipline/Dismissal/Release

5. CLOSED SESSION REPORT
The City Council reconvened to open session at 6:06 p.m., City Attorney Stephanie Vasquez announced that personnel procedures were discussed with no reportable actions for Item 4.1.

6. ADJOURNMENT
Mayor Jorgel Chavez adjourned the meeting at 6:07 p.m.

Daisy Gomez, City Clerk

CITY OF BELL GARDENS

MINUTES
City Council / Successor Agency to the Community Development Commission Joint Meeting
Monday, April 28, 2025, 6:00 PM

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.

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.

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.

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.

1. CALL TO ORDER
The Council Members of the City of Bell Gardens City
Council/Successor Agency held a Joint Regular meeting on April 28, 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 6:07 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.

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 - Older American's Month Mayor Jorgel Chavez read the certificate of recognition and presented it to Ascension "Chon" Lopez.

5.2 Proclamation Recognizing National Small Business Week (May 4 - 10, 2025)
Mayor Jorgel Chavez read the certificate of recognition and presented it to Olympic Troys Burgers, Angel
Guerrero.

5.3 Proclamation Recognizing California Cities Week (April 20 - 26, 2025)
Mayor Jorgel Chavez proclaimed April 20-26, 2025 and
annually thereafter as California Cities Week in the City of Bell Gardens.

5.4 Proclamation Recognizing Professional Municipal Clerks Week (May 4 - 10, 2025)
Mayor Jorgel Chavez proclaimed and recognized the
week of May 4-10, 2025 as Professional Municipal Clerks Week in Bell Gardens and presented it to City Clerk Daisy Gomez and staff.

5.5 Proclamation Recognizing Building and Safety Month

Councilmember Marco Barcena read the certificate of
recognition and presented it to Building and Code
Enforcement Supervisor George Suarez and staff.

6. PUBLIC HEARING

6.1 Status Update on Staff Vacancies in Compliance with Assembly Bill 2561 (2024) – Local Public Employees:

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

CONCLUSION: The City of Bell Gardens’ workforce
remain stable with continuity of service and institutional knowledge, as a majority of the City’s staff members have served the City for 5 years or more.

FISCAL IMPACT: There is no fiscal impact associated with this status update.

ATTACHMENTS: Exhibit 1 - Presentation Hearing Item

6.1-AB 2561
Manuel Carrillo, Director of Finance & Administrative
Services, provided a presentation.

Mayor Jorgel Chavez opened the public hearing at 6:49
p.m.

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 6:58
p.m.

A motion was made by Councilmember Francis De Leon
Sanchez, seconded by Councilmember Isabel Guillen to
receive and file this item.

The motion carried 5 - 0 with the following vote:

Moved by: Francis De Leon Sanchez
Seconded by: Isabel Guillen
Yes Marco Barcena, Jorgel Chavez, Miguel De
La Rosa, Francis De Leon Sanchez, Isabel
Guillen
Carried 5-0

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.

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

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.

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

9. EXTERNAL COMMITTEES UPDATES
Mayor Jorgel Chavez provided a report on the annual City Leaders Summit, hosted by the League of California Cities in Sacramento.

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

A motion was made by Councilmember Francis De Leon Sanchez, seconded by Mayor Pro Tem Miguel De La Rosa to approve Consent Calendar Item Nos. 11.1 - 11.13.

The motion carried 5 - 0 with the following vote:

Moved by: Francis De Leon Sanchez
Seconded by: Miguel De La Rosa
Yes Marco Barcena, Jorgel Chavez, Miguel De
La Rosa, Francis De Leon Sanchez, 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: No fiscal impact.

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 April 14, 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 - Apr
14 2025 - Minutes - Html

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 04/01/2025, 04/02/2025, 04/03/2025 and 04/08/2025.

CONCLUSION: If the recommendation to the City Council
is approved, then the warrant registers, wire transfers, and net payrolls dated 04/01/2025, 04/02/2025, 04/03/2025
and 04/08/2025.

FISCAL IMPACT:

Warrant
register
04/01/20
25 194732-194818 $1,274,642
.81
Total Bank $1,274,642
.81

Wire
Transfer

04/03/20
25 2061-2065 $307,997.2
4 Warrant
register

04/08/20
25 194820-194925 $907,851.3
5 Total Bank $1,215,848
.59
Net Payroll
transfer

04/02/20
25 $572,483.4
9

Total Voucher $1,788,332
.08

Grand Total
Vouchers
$3,062,974
.89
ATTACHMENTS: Exhibit 1- Warrant Register

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

BACKGROUND/DISCUSSION: The Treasurer’s Report
is a list of cash and investments held by the City as of March 31, 2025. Monthly reporting includes cash balances by fund and reconciled bank balances provided by
Finance and Administrative Services.

CONCLUSION: The March 31, 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 - Treasurer Report

11.6 Second Reading of Ordinance No. 954 to amend BGMC
Title 9 (Zoning and Planning Regulations) to regulate
Accessory Dwelling Units
RECOMMENDATION: It is staff’s recommendation that
the City Council waive full reading and adopt Ordinance No. 954, by title only, amending 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) regulating
accessory dwelling units.

CONCLUSION: If approved, Ordinance No. 954 would
become effective thirty (30) calendar days after approval.

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.

FISCAL IMPACT: None.

ATTACHMENTS:

Exhibit 1 – Ordinance No. 954

11.7 Consideration of a Lease Agreement between the City of Bell Gardens and the Southeast Community Development
Corporation for space in the Resource Center at 6423
Florence Place
RECOMMENDATION: It is the staff’s recommendation that
the City Council adopt the attached Resolution approving a Lease Agreement between the City of Bell Gardens and the Southeast Community Development Corporation to
continue leasing space at 6423 Florence Place.

CONCLUSION: Services provided by the SCDC serve a
public benefit to the City by growing and enhancing the local workforce and providing increased economic stability, health, and welfare to City residents. It is recommended that the City Council adopt the attached Resolution
approving a Lease Agreement between the City of Bell
Gardens and SCDC, to continue providing services to City residents and businesses and to the benefit of the
surrounding communities.

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 2025-34
Exhibit 2- Lease Agreement

11.8 Consideration of a Resolution Granting a Utility Easement to Golden State Water Company for the John Anson Ford
Park Aquatics Center Improvements
RECOMMENDATION: It is staff’s recommendation that
the City Council adopt the attached Resolution granting a utility easement to Golden State Water Company for the
John Anson Ford Park Aquatics Center Improvements
and authorizing the City Manager to execute the
easement agreement, in a form approved by the City
Attorney.

CONCLUSION: Granting the utility easement to GSWC
will allow for the placement of a 4-inch water line to serve the new Aquatics Center facility.

FISCAL IMPACT: None
ATTACHMENTS:

Exhibit 1 - Resolution No. 2025-37
Exhibit 2- Grant Easement

11.8 Warrant Register Successor Agency
RECOMMENDATION: It is staff’s recommendation that
the Successor Agency members receive and file the
warrant registers dated 04/08/2025.

CONCLUSION: If the recommendation to the Successor
Agency Members is approved, then the warrant register
dated 04/08/2025 will be received and filed.

FISCAL IMPACT:

Warrant
Register
04/08/2025 12975-12976 $28.214.7
5 Total Bank $28,214.7
5 Grand Total
Vouchers
$28,214.7
5 ATTACHMENTS: Exhibit 1-Warrant Register Successor
Agency

11.1 0
Consideration of a Resolution Approving Amendment No.
1 to Funding Agreement No. 9200000000F9111 Between
the City of Bell Gardens and the Los Angeles County
Metropolitan Transportation Authority
RECOMMENDATION: It is staff’s recommendation that
the City Council adopt the attached Resolution approving Amendment No. 1 to Funding Agreement No.
9200000000F9111 between the City of Bell Gardens and
the Los Angeles County Metropolitan Transportation
Authority for the Florence Avenue Improvements at Ira
Avenue and Jaboneria Road.

CONCLUSION: Approval of Amendment No. 1 to the
Funding Agreement will allow the City to continue working with LACMTA and ensure the City remains eligible to
receive reimbursement for past project expenses.

FISCAL IMPACT: There is no fiscal impact in executing
Amendment No. 1 to the Funding Agreement.

ATTACHMENTS:

Exhibit 1 - Resolution 2025-38
Exhibit 2 - Amendment No. 1 with Master Funding
Agreement 9200000000F911

11.1 0
Acceptance of the John Anson Ford Park Infiltration
Cistern Project (CIP No. 3879) as Complete
RECOMMENDATION: It is staff’s recommendation that
the City Council:

1. Accept the John Anson Ford Park Infiltration Cistern Project (CIP No. 3879) 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 work performed by Zusser was
funded by a combination of local contributions by the Cities of Bell, Bell Gardens, Commerce, Cudahy, Huntington
Park, Maywood and Vernon; grant funding from the State
of California Prop 1 Stormwater Program; and grant funding from the Measure W Regional Program.

The total final Project costs were as follows:

Item Cost
Environmental &
Program
Management
$882,181.17
Engineering $1,006,061.49
Construction
Management
$1,749,190.00
Construction $15,585,971.45
TOTAL $19,223,404.11
ATTACHMENTS:

Exhibit 1 - Notice of Completion

11.1 1
Consideration of Approval of a Grant Agreement Between
the City of Bell Gardens and the LA84 Foundation for the Learn to Swim Program
RECOMMENDATION: It is staff’s recommendation that
the City Council adopt the attached Resolution approving an agreement with the LA84 Foundation, subject to City
Attorney approval, as to form.

CONCLUSION: It is staff’s recommendation that the City Council adopt the attached Resolution, approving a grant agreement with the LA84 Foundation to provide
scholarships for the City’s Learn to Swim Program.

FISCAL IMPACT: None.

ATTACHMENTS:

Exhibit 1 - Resolution No. 2025-39
Exhibit 2 - Agreement

11.1 2
Consideration of a Resolution Approving an Amendment
to the Master Service Agreement with NextRequest, a
Subsidary of CivicPlus, for a Public Records Request
Management System
RECOMMENDATION: It is staff's recommendation that the
City Council adopt the attached Resolution authorizing the

City Manager to execute an Amendment to the Master
Service Agreement with NextRequest, a subsidary of
CivicPlus, for the software product to manage requests for public records for four (4) years, for a cumulative not to exceed total of $45,000, subject to approval by the City Attorney, as to form.

CONCLUSION: An Amendment to the existing Master
Service Agreement extending the term and compensation
will allow public records requests to continue to be
managed with accountability and transparency.

FISCAL IMPACT: Funds for these services are included in the City Clerk’s Year 2024-2025 adopted budget, and as a regular operating expenditure, will be budgeted in future fiscal year budgets when presented to the Council.

ATTACHMENT:

Exhibit 1 - Resolution No. 2025-40

11.1 3
Consideration of a Resolution Approving a Contract
Services Agreement with Black & White Emergency
Vehicles, LLC for the Purchase and Outfitting of
Emergency Equipment for Previously Purchased Police
Vehicles
RECOMMENDATION: It is staff’s recommendation that the
City Council adopt the attached Resolution approving a
Contract Services Agreement with Black & White
Emergency Vehicles, LLC, for the purchase and installation of emergency equipment for an amount not to exceed
$328,808.11.

CONCLUSION: Approval of the Contract Services
Agreement for the purchase and installation of the
emergency vehicle equipment will enable the Bell Gardens Police Department to outfit the new fleet of vehicles that will be utilized on a daily basis to provide emergency services to the residents of the City. This equipment is also
mandated equipment by the State of California for
emergency response vehicles.

FISCAL IMPACT: The proposed Contract Services
Agreement for the outfitting of the vehicles listed above will have a Not-to-Exceed Sum of $328,808.11 and was
previously approved by the City Council under Resolution No. 2023-94 for fiscal years 2023-24 and 2024-25.

ATTACHMENTS:

Exhibit 1-Resolution No. 2025-41
Exhibit 2- Agreement

12. DISCUSSION

12.1 Local Commission
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 nominated Linda Judith Lopez to fill his vacancy in the Education Commission; Katelynn
Cabrera to fill his vacancy in the Recreation, Cultural and Youth Commission; Mayra Teresa Yaniz to fill his vacancy in the Senior Citizen Commission; Edgar Juvenal Lopez
Bustillos to fill his vacancy in the Traffic and Safety Commission.

A motion was made by Councilmember Isabel Guillen,
seconded by Councilmember Marco Barcena to fill the
vacancies as nominated by Mayor Jorgel Chavez.

The motion carried 5-0 with the following vote:

Moved by: Isabel Guillen
Seconded by: Marco Barcena

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

12.2 Updated Inventory for Vacant and/or Abandoned Property Citywide to Include Vacant Lease Space and Partially
Vacant Property Over 5,000 SF
RECOMMENDATION: It is staff’s recommendation that
the City Council take one of the following actions:

1. Receive and file this report and take no further action; or

2. Direct staff to coordinate with the City’s Economic
Development consultant to identify five to ten (5-10)
priority properties and identify opportunities for each property and then work to market the properties for
the benefit of the community; or

3. Direct staff to prepare a vacant property registration ordinance for consideration at a future public hearing; or

4. Direct staff to investigate/initiate ballot tax measure.

CONCLUSION: Proper management, monitoring and
marketing of vacant, underutilized, and abandoned sites are crucial to promoting an economically sustainable
environment that impact the quality of life for all residents and visitors alike.

FISCAL IMPACT: None.

ATTACHMENT: Exhibit 1- Presentation
John Ramirez, Interim Community Development Director,
provided a presentation.

A motion was made by Mayor Jorgel Chavez, seconded
by Councilmember Isabel Guillen to direct staff to
coordinate with the City's Economic Development
consultant to identify five to ten priority properties and identify opportunities for each property and then work to market the properties for the benefit of the community and report back to the City Council within six months.

Moved by: Jorgel Chavez
Seconded by: Isabel Guillen
Yes Marco Barcena, Jorgel Chavez, Miguel De
La Rosa, Francis De Leon Sanchez, 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 7:36 p.m.

Daisy Gomez, City Clerk

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:May 12, 2025

RECOMMENDATION
It is staff's recommendation that the City Council receive and file the warrant registers, wire transfers, and net payrolls dated 04/15/2025, 04/17/2025, and 04/22/2025.

BACKGROUND/DISCUSSION
The attached warrant registers, wire transfers, and net payrolls are for 04/15/2025, 04/17/2025, and 04/22/2025.

CONCLUSION
If the recommendation to the City Council is approved, then the warrant registers, wire transfers, and net payrolls dated 04/15/2025, 04/17/2025, and 04/22/2025.

FISCAL IMPACT:

Wire Transfer 04/15/2025 5066-5067 $2,683,416.06
Warrant Register 04/15/2025 194926-195021 $710,900.63 Total Bank $3,394,316.69
Wire Transfer 4/17/2025 5068-5071 $276,361.32
Warrant Register 4/22/2025 195022-195102 $810,426.71
Total Bank $1,086,788.03
Net Payroll Transfer 04/17/2025 $535,817.20
Total Voucher $1,622,605.23

Grand Total Vouchers $5,016,921.92
APPROVED ELECTRONICALLY BY:

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

CITY OF BELL GARDENS

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 Successor Agency
MEETING DATE: May 12, 2025

RECOMMENDATION:

It is staff’s recommendation that the Successor Agency members receive and file the warrant registers dated 04/22/2025.

BACKGROUND/DISCUSSION:

The attached warrant registers are for 04/22/2025. The warrant register reflects the obligation of the Successor Agency to Community Development.

CONCLUSION:

If the recommendation to the Successor Agency Members is approved, then the warrant register dated 04/22/2025 will be received and filed.

FISCAL IMPACT:

Warrant Register 04/22/2025 12977 $2,478.75
Total Bank $2,478.75

Grand Total Vouchers $2,478.75

APPROVED ELECTRONICALLY BY:

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

04/24/2025
Voucher List

CITY OF BELL GARDENS
1 9:44:56AM
Page:

Bank code : cdcckg
Voucher Date Vendor Invoice PO # Description/Account Amount 4/22/2025006334 TIERRA WEST ADVISORS, LLC BG-0125B 05590 CD SA PROPERTIES 01/25 97.5012977 05590 525.00CD SA PROPERTIES 02/25BG-0225B
05590 1,856.25CD SA PROPERTIES-1/24BG-1224B
Total : 2,478.75
Bank total : 2,478.75 1 Vouchers for bank code : cdcckg Total vouchers :1 Vouchers in this report 2,478.75

CITY OF BELL GARDENS

OFFICE OF THE CITY MANAGER

EXECUTIVE SUMMARY
TO: Honorable Mayor and Council Members
FROM: Michael B. O’Kelly, City Manager
BY: Manuel Carrillo, Director of Finance and Administrative Services Andrew J. Tse, Human Resources Manager
SUBJECT: Consideration of Adoption of a Resolution Approving Side Letter Agreements with the Bell Gardens City Employees Association, the Bell Gardens Public Works Employees Association, the Bell Gardens Public Works Supervisors Association, the Bell Gardens Police Officers Association, and the Bell Gardens Police Management Association, to Their Respective Memorandum of Understanding, Recognizing Juneteenth and Veterans Day as City Recognized and Observed Holidays
DATE:May 12, 2025
RECOMMENDATION:

It is staff’s recommendation that the City Council approve the attached Resolution, approving Side Letter Agreements with the Bell Gardens City Employees Association (BGCEA), the Bell Gardens Public Works Employees Association (BGPWEA), the Bell Gardens Public Works Supervisors Association (BGPWSA), the Bell Gardens Police Officers Association (BGPOA), and the Bell Gardens Police Management Association (BGPMA), to their respective Memorandum of Understanding, recognizing Juneteenth and Veterans Day as City Recognized and Observed Holidays.

BACKGROUND/DISCUSSION:

Juneteenth is a federally recognized holiday officially entitled Juneteenth National Independence Day. It is recognized and celebrated on an annual basis on June 19 th to commemorate the ending of slavery in the United States. The holiday was recognized as a federal holiday in 2021 by the 117th U.S. Congress, the first new federal holiday since Martin Luther King Jr. Day was adopted in 1983.

Veterans Day is a federally recognized holiday that is observed annually on November 11 th to honor military veterans of the United States Armed Forces. The holiday was originally known as Armistice Day. The U.S. Congress enacted 52 Stat. 351; 5 U.S. code, Sec 87a on May 13, 1938, making November 11th of each year a legal holiday.

The City is desirous of observing these two holidays to honor and respect those who endured slavery in our nation’s history, as well as to honor the men and women who have served in the armed forces to protect our nation’s security and sovereignty.

The Side Letter Agreements with the BGCEA, BGPWEA, and BGPWSA amend Section C of the MOUs that were adopted on May 22, 2023, May 22, 2023 and June 26, 2023, respectively adding Juneteenth and Veterans Day as City recognized and observed holidays.

In exchange for the recognition and observance of Juneteenth and Veterans Day, the BGCEA, BGPWEA, and BGPWSA agreed to forfeit one floating holiday.

BGPOA and BGPMA’s current agreements already recognize Veterans Day as a holiday.

However, Columbus Day is stated as a holiday which is not observed by the City. The Side Letter Agreement with the POA amends Article VIII, Section 1, Holiday In-Lieu Pay to replace Columbus Day with Juneteenth as the City recognized and observed holiday. The Side Letter Agreement with the BGPMA amends Article X, Section 1, Holiday In-Lieu Pay to replace Columbus Day with Juneteenth as the City recognized and observed holiday.

CONCLUSION:

If the Side Letter Agreements with BGCEA, BGPWEA, BGPWSA, BGPOA, and BGPMA are approved, Juneteenth and Veterans Day will be recognized and observed as City holidays.

FISCAL IMPACT:

The City would realize utilities cost savings from City facilities being closed in observance of the holidays.

APPROVED ELECTRONICALLY BY:

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

RESOLUTION NO. 2025-42

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BELL

GARDENS, CALIFORNIA, APPROVING SIDE LETTER AGREEMENTS

WITH THE BELL GARDENS CITY EMPLOYEES ASSOCIATION, THE

BELL GARDENS PUBLIC WORKS EMPLOYEES ASSOCIATION, THE

BELL GARDENS PUBLIC WORKS SUPERVISORS ASSOCIATION, THE

BELL GARDENS POLICE OFFICERS ASSOCIATION, AND THE BELL

GARDENS POLICE MANAGEMENT ASSOCIATION, RECOGNIZING

JUNETEENTH AND VETERANS DAY AS CITY RECOGNIZED AND

OBSERVED HOLIDAYS

WHEREAS, the City of Bell Gardens (“City”) and the Bell Gardens City Employees Association (“BGCEA”), the Bell Gardens Public Works Employees Association (“BGPWEA”), the Bell Gardens Public Works Supervisors Association (“BGPWSA”), the Bell Gardens Police Officers Association (“BGPOA”), and the Bell Gardens Police Management Association (“BGPMA”) desire to enter into Side Letter Agreements (“Agreement”) to their respective Memorandum of Understanding, memorializing an understanding with respect to City recognized and observed holidays; and

WHEREAS, the City and the BGCEA, BGPWEA, and the BGPWSA individually entered into Memorandum of Understanding (MOU) with a term commencing on June 1, 2023, through May 31, 2026; and

WHEREAS, the City and the BGPOA and the BGPMA individually entered into Memorandum of Understanding (MOU) with the term commencing as of April 1, 2023, through March 31, 2026; and

WHEREAS, the City is desirous of recognizing and observing the Juneteenth and Veterans Day holidays; and

WHEREAS, Juneteenth is a federally recognized holiday officially entitled Juneteenth National Independence Day; and

WHEREAS, Juneteenth is recognized and celebrated on an annual basis on June 19th to commemorate the end of slavery in the United States; and

WHEREAS, Veterans Day is a federally recognized holiday that is observed annually on November 11 th in honor of military veterans of the United States Armed Forces; and

WHEREAS, the City has completed the meet and confer process with union representatives for each bargaining unit, containing City employees affected by these proposed Agreements.

Resolution No. 2025-42

2 of 3

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

SECTION 1. The City Council hereby finds that the above recitals are true and correct and incorporate them herein as findings.

SECTION 2. Juneteenth and Veterans Day are hereby added as City recognized and observed holidays.

SECTION 3. The City Council hereby approves the Side Letter Agreements, , with the BGCEA, BGPWEA, BGPWSA, BGPOA, and BGPMA, in a form substantially the same as the attached to the Agenda Report accompanying this Resolution.

SECTION 4. The City Council hereby authorizes the City Manager to execute the Side Letter Agreements on behalf of the City, along with any appropriate and necessary amendments, addendums, or other ancillary documents, in connection with the Side Letter Agreements.

SECTION 5. 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 12th day of May 2025.

THE CITY OF BELL GARDENS

____________________________
Jorgel Chavez, Mayor

APPROVED AS TO FORM: ATTEST:

______________________________ ____________________________ Stephanie Vasquez Daisy Gomez
City Attorney City Clerk

Resolution No. 2025-42

3 of 3

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

AYES:

NOES:

ABSTAIN:

ABSENT:

12858703.1 BE030-175

SIDE LETTER OF AGREEMENT

BETWEEN

CITY OF BELL GARDENS
AND

THE BELL GARDENS CITY EMPLOYEES ASSOCIATION
This Side Letter of Agreement (“Agreement”) memorializes an agreement entered into between the City of Bell Gardens (“City”) and the Bell Gardens City Employees Association (“BGCEA”) (collectively “Parties”) with respect to the following:

WHEREAS, the Parties entered into a Memorandum of Understanding with the term of June 1, 2023, through May 31, 2026 (“MOU”); and
WHEREAS, the Parties met and conferred in good faith on the addition of Juneteenth and Veterans Day as City recognized and observed holidays and related impacts.

NOW THEREFORE, the Parties agree as follows:

1. Article IV, Section C (Holidays) of the MOU shall be amended so that Juneteenth (June 19th) and Veterans Day (November 11 th) shall be added to the list of observed holidays.

2. Under Article IV, Section C (1), there shall no longer be a floating holiday; and only 24 hours of floating leave time shall remain. Accordingly, the first sentence of Article IV, Section C (1) shall be amended to read as follows:
“24 hours of floating leave time that can be utilized by the individual employee, subject to approval by the employees’ department head.” Subsections a) & b) remain unamended.

The Parties agree that with the exception of what is agreed upon herein, all other articles and terms of the MOU shall remain unchanged and in effect during the remainder of the MOU term unless modified by written agreement of the Parties.

FOR THE BGCEA AND CITY OF BELL GARDENS:
_______________________________ __________________________ Elva Gamboa Date Michael B. O’Kelly Date
BGCEA President City Manager

12858703.1 BE030-175
_____________________________
Evangelina Reyes Date
BGCEA Vice President
_____________________________
Erika Gutierrez Date
BGCEA Secretary

12858744.1 BE030-175

SIDE LETTER OF AGREEMENT

BETWEEN

CITY OF BELL GARDENS
AND

THE BELL GARDENS PUBLIC WORKS EMPLOYEES ASSOCIATION
This Side Letter of Agreement (“Agreement”) memorializes an agreement entered into between the City of Bell Gardens (“City”) and the Bell Gardens Public Works Employees Association (“BGPWEA”) (collectively “Parties”) with respect to the following:

WHEREAS, the Parties entered into a Memorandum of Understanding with the term of June 1, 2023, through May 31, 2026 (“MOU”); and
WHEREAS, the Parties met and conferred in good faith on the addition of Juneteenth and Veterans Day as City recognized and observed holidays and related impacts.

NOW THEREFORE, the Parties agree as follows:

1. Article III, Section C (Holidays) of the MOU shall be amended so that Juneteenth (June 19th) and Veterans Day (November 11 th) shall be added to the list of observed holidays. Accordingly, Article III, Section C (2) of the MOU shall be amended to read as follows: “In addition to the above twelve (12) holidays…” in order to reflect a total of 12 observed holidays instead of the previous 10.

2. Under Article III, Section C (2), there shall no longer be 23 floating holiday hours; and instead there shall be 13 floating holiday hours. Accordingly, Article III, Section C (2) shall be amended to read as follows: “…unit members shall receive 13 floating holiday hours.”
The Parties agree that with the exception of what is agreed upon herein, all other articles and terms of the MOU shall remain unchanged and in effect during the remainder of the MOU term unless modified by written agreement of the Parties.

FOR THE BGCEA AND CITY OF BELL GARDENS:
_______________________________ __________________________ Jesse Alcaraz Date Michael B. O’Kelly Date
BGPWEA President City Manager

12858771.1 BE030-175

SIDE LETTER OF AGREEMENT

BETWEEN

CITY OF BELL GARDENS
AND

THE BELL GARDENS PUBLIC WORKS SUPERVISORS ASSOCIATION
This Side Letter of Agreement (“Agreement”) memorializes an agreement entered into between the City of Bell Gardens (“City”) and the Bell Gardens Public Works Supervisors Association (“BGPWSA”) (collectively “Parties”) with respect to the following:

WHEREAS, the Parties entered into a Memorandum of Understanding with the term of June 1, 2023, through May 31, 2026 (“MOU”); and
WHEREAS, the Parties met and conferred in good faith on the addition of Juneteenth and Veterans Day as City recognized and observed holidays and related impacts.

NOW THEREFORE, the Parties agree as follows:

1. Article III, Section C (1) (Holidays) of the MOU shall be amended so that Juneteenth (June 19th) and Veterans Day (November 11 th) shall be added to list of observed holidays.

2. Under Article III, Section C (2), there shall no longer be 23 floating holiday hours; and instead there shall be 13 floating holiday hours.

3. Article III, Section C (2) shall be amended to read as follows:
“In addition to the above twelve (12) holidays, unit members are required be available for call-outs. In consideration of this status, each unit member receives an additional 13 “floating holiday hours,” and 24 “personal leave hours,” a total of 37 leave hours in addition to the above twelve (12) designated holidays.”

4. Article III, Section C (3) shall be amended to read as follows: “Eligibility to receive any or all of the above 37 total floating holiday and personal business leave hours….”
The Parties agree that with the exception of what is agreed upon herein, all other articles and terms of the MOU shall remain unchanged and in effect during the remainder of the MOU term unless modified by written agreement of the Parties.

12858771.1 BE030-175
FOR THE BGPWSA AND CITY OF BELL GARDENS:
_______________________________ __________________________ Rick Moreno Date Michael B. O’Kelly Date
BGPWSA Representative City Manager

Side Letter of Agreement
Between
City of Bell Gardens and the Bell Gardens Police Management Association This side letter of agreement (“Agreement”) memorializes an agreement entered into between the City of Bell Gardens (“City”) and the Bell Gardens Police Management Association (“Association”) (collectively “Parties”) with respect to the following:

WHEREAS, the Parties entered into a Memorandum of Understanding with a term of April 1, 2023 to March 31, 2026 (“MOU”); and
WHEREAS, the MOU at Article X, Section 1 Holiday In-Lieu Pay states that effective the first full pay period following ratification of this agreement, employees represented by the Association shall be paid at the employee’s base hourly rate each biweekly payroll one twenty sixth (1/26) of the total holiday hours earned for the year equivalent to 12 holidays {120 hours (4/10 schedule) or 144 hours (3/12 schedule)} annually; and
WHEREAS, the Parties seek to amend the MOU in a limited manner amending Article X, Section 1 Holiday In-Lieu Pay; and
WHEREAS, all other terms of the MOU shall remain in effect.

NOW THEREFORE, the Parties have agreed to amend Article X, Section 1 Holiday In-Lieu Pay of the MOU to now read as follows:

Section 1. Holiday In-Lieu Pay
Employees represented by the Association shall be paid at the employee’s base hourly rate each biweekly payroll one twenty sixth (1/26) of the total holiday hours earned for the year equivalent to 12 holidays, which include: New Years’ Day, Martin Luther King Jr. birthday, President’s Day, Cesar Chavez birthday, Memorial Day, Juneteenth, Independence Day, Labor Day, Veterans Day,
Thanksgiving Day, the day after Thanksgiving and Christmas Day.

This totals 120 hours for employees on a 4/10 schedule or 144 hours for employees 3/12 schedule annually.

The Parties agree that with the exception of what is agreed upon herein, all other articles and terms of the MOU shall remain unchanged and in effect during the remainder of the MOU term unless modified by written agreement of the Parties.

FOR THE ASSOCIATION AND CITY OF BELL GARDENS:

I agree on behalf of the Association: I agree on behalf of the City:
__________________________ _________________________
Rigoberto Barrios Date Michael O’Kelly Date
BGPMA Representative City Manager

Side Letter of Agreement
Between
City of Bell Gardens and the Bell Gardens Police Officers Association This side letter of agreement (“Agreement”) memorializes an agreement entered into between the City of Bell Gardens (“City”) and the Bell Gardens Police Officers Association (“Association”) (collectively “Parties”) with respect to the following:

WHEREAS, the Parties entered into a Memorandum of Understanding (MOU) with a term of April 1, 2023 to March 31, 2026; and
WHEREAS, the MOU at Article VIII, Section 1 Holiday In-Lieu Pay states that effective the first full pay period following ratification of this agreement, employees represented by the Association shall be paid at the employee’s base hourly rate each biweekly payroll one twenty sixth (1/26) of the total holiday hours earned for the year equivalent to 12 holidays, which include: New Years’ Day, Martin Luther King Jr. birthday, President’s Day, Cesar Chavez birthday, Memorial Day, Juneteenth, Independence Day, Labor Day, Veterans Day, Thanksgiving Day, the day after Thanksgiving and Christmas Day. Totaling to 120 hours for employees on a 4/10 schedule or 144 hours for employees 3/12 schedule annually; and
WHEREAS, the Parties seek to amend the MOU in a limited manner by allowing for opt out of holiday in-lieu pay and earning of holiday leave; WHEREAS, all other terms of the MOU shall remain in effect; NOW THEREFORE, the Parties have agreed to amend Article VIII, Section 1 Holiday In-Lieu Pay of the MOU to now read as follows:

Section 1. Holiday In-Lieu Pay and Holiday Leave
At the end of the calendar year (i.e. year 1), and prior to the beginning of the next calendar year, employees must make an irrevocable election as to whether to receive either:

A) Holiday In-Lieu Pay; or B) Holiday Leave, for the next calendar year (i.e. year 2). Employees shall make the irrevocable election by submitting a completed City issued form within two weeks of the City’s issuance of the form. Upon submission of the form, the employee’s election is irrevocable and will be final and remain in effect for the entirety of the subsequent calendar year. If an employee fails to submit the form to the City by the deadline stated in the form, the election made by the employee in the previous calendar year shall apply to the subsequent calendar year.

A) Holiday In-Lieu Pay
Employees represented by the Association shall be paid at the employee’s base hourly rate each biweekly payroll one twenty sixth (1/26) of the total holiday hours earned for the year equivalent to 12 holidays, which include: New Years’ Day, Martin Luther King Jr. birthday, President’s Day, Cesar Chavez birthday, Memorial Day, Juneteenth, Independence Day, Labor Day, Veterans Day,
Thanksgiving Day, the day after Thanksgiving and Christmas Day.

Totaling to 120 hours for employees on a 4/10 schedule or 144 hours for employees 3/12 schedule annually.

B) Holiday Leave
Employees represented by the Association may opt out of the holiday in-lieu pay and elect to earn holiday leave each month. Employees will earn 10 or 12 hours per month depending on work schedule. The total holiday hours earned for the calendar year is the equivalent to 12 holidays, which include: New Years’ Day, Martin Luther King Jr. birthday, President’s Day, Cesar Chavez birthday, Memorial Day, Juneteenth, Independence Day, Labor Day, Veterans Day,
Thanksgiving Day, the day after Thanksgiving and Christmas Day.

Totaling to 120 hours for employees on a 4/10 schedule or 144 hours for employees 3/12 schedule annually.

These hours earned (“holidays”) are in lieu of legal holidays or other holidays. Use of such holidays shall be in increments of full workdays and subject to advanced approval.

Holiday leave may not be carried over from one calendar year to a succeeding calendar year. Unused holiday leave shall be paid out at the end of the calendar year at the employee’s base hourly rate.

Under no circumstances shall holiday-in-lieu pay or holiday leave exceed the equivalent of 12 holidays per year. Holiday leave earned shall be capped at 120 hours or 144 hours depending on work schedule. If the maximum accrual is reached, the affected employee shall cease to accrue holiday leave until such bank is reduced below the maximum accrual amount.

At the time of hire, new hires will make an irrevocable election on whether to receive holiday-in-lieu pay or holiday leave during the remainder of the calendar year. The new hire must also make an irrevocable election at the end of the calendar year on whether to receive holiday-in-lieu pay or holiday leave during the subsequent year.

Current unit members will be afforded the opportunity to “opt out” of holiday- in-lieu pay beginning the first full month following ratification of this agreement. This election will be final and irrevocable for the remainder of the calendar year of the ratification of this agreement. Thereafter, in subsequent calendar years, employees must make an irrevocable election at the end of each calendar year as described in the process above.

The Parties agree that with the exception of what is agreed upon herein, all other articles and terms of the MOU shall remain unchanged and in effect during the remainder of the MOU term unless modified by written agreement of the Parties.

FOR THE ASSOCIATION AND CITY OF BELL GARDENS:

I agree on behalf of the Association: I agree on behalf of the City:
__________________________ _________________________
Victor Arana Date Michael O’Kelly Date
BGPOA President City Manager
__________________________
Michael Weinrich Date
BGPOA Vice President
__________________________
Nancy Fierro Date
BGPOA Secretary
__________________________
Marisol Galvan Date
BGPOA Treasurer

CITY OF BELL GARDENS

OFFICE OF THE CITY MANAGER

EXECUTIVE SUMMARY
TO: Honorable Mayor and Members of the City Council
FROM:Michael B. O’Kelly, City Manager
BY:John P. Ramirez, AICP, Interim Community Development Director SUBJECT:Consideration of a Resolution Approving a Professional Services Agreement Between the City of Bell Gardens and MNS Engineers, Inc. for Economic Development Marketing Services

DATE: May 12, 2025

RECOMMENDATION
It is staff’s recommendation that the City Council adopt the attached Resolution approving a Professional Services Agreement with MNS Engineers, Inc. (“MNS”) to provide Economic Development Marketing Services to the City of Bell Gardens (“City”).

BACKGROUND/DISCUSSION
On February 12, 2025, staff released the Economic Development Marketing Services Request for Proposals (“RFP”), with a deadline date of February 27, 2025. The Economic Development Marketing Services RFP requested a scope of services to immediately prepare a plan to address the need for marketing services for the City. The requested scope of services would address digital and print marketing campaigns and program consulting for business-friendly best practices.

EVALUATION OF CONSULTANT PROPOSALS
Staff received five (5) proposals and convened a selection panel comprised of staff from the Departments of Community Development. After reviewing the proposals, the selection panel identified two candidates for follow-up virtual interviews, with MNS as the preferred Consultant based on their experience, training, education, and expertise, and for the thorough preliminary analysis presented to staff during its interview presentation.

At the April 28, 2025 regular City Council meeting, staff shared a presentation regarding the status of vacant and/or abandoned properties Citywide, that included vacant lease space and partially vacant properties over 4,500 square feet in size. City Council provided staff with direction (with a 5-0 vote) to coordinate with the future Economic Development consultant to identify five to ten (5-10) priority properties and identify opportunities for each location and then work to market them for the benefit of the community; and report back to the City Council in six months (November 2025).

ENVIRONMENTAL REVIEW
Pursuant to the CEQA, Guidelines Section No. 15060(c)(3), this report is categorically exempt as organizational or administrative activities of governments that result in no direct or indirect physical changes in the environment are exempt from the CEQA since the activity is not considered a project.

FISCAL IMPACT
If approved, the executed PSA would have a not-to-exceed amount of $60,105 Funds to pay for these services have been allocated and are part of the City’s Adopted 2024-2025 Budget.

CONCLUSION
It is staff’s recommendation that the City Council adopt the attached Resolution, approving a Professional Services Agreement with MNS Engineering, Inc., to provide for Economic Development Marketing Services.

APPROVALS:

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

RESOLUTION NO. 2025-43

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BELL

GARDENS, CALIFORNIA, APPROVING A PROFESSIONAL SERVICES

AGREEMENT BY AND BETWEEN THE CITY OF BELL GARDENS AND
MNS ENGINEERING, INC.

WHEREAS, the City of Bell Gardens (the “City”) requires City-wide consulting services for economic development marketing services;

WHEREAS, the City issued a Request for Proposals (“RFP”) for economic development marketing services in accordance with the City’s Purchasing Policies and State Law;

WHEREAS, MNS Engineering, Inc. represents that it is fully qualified to perform such professional services by virtue of its experience, training, education, and expertise; and

WHEREAS, the City desires to enter into a Professional Services Agreement with MNS Engineering, Inc.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BELL GARDENS AS FOLLOWS:

SECTION 1. The City Council of the City of Bell Gardens hereby finds that the above recitals are true and correct and incorporated them herein by this reference.

SECTION 2. Based upon the above recitals, the staff report accompanying this Resolution, and such other oral and written evidence, the City Council approves a Professional Services Agreement with MNS Engineering, Inc.

SECTION 3. The City Council further authorizes and directs the City Manager and staff to execute the Professional Services Agreement with MNS Engineering, Inc. on the City’s behalf along with any other ancillary documents relating thereto, including any other documents consistent with and necessary to implement and effectuate the intent of the City Council as set forth in this Resolution.

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

[Signatures on the following page]

Resolution No. 2025-43

PASSED, APPROVED AND ADOPTED this 12th day of May 2025.

THE CITY OF BELL GARDENS

_____________________________
Jorgel Chavez, Mayor

APPROVED AS TO FORM: ATTEST:

______________________________ ________________________________ Stephanie Vasquez Daisy Gomez
City Attorney City Clerk

Resolution No. 2025-43
I, ____________________, City Clerk of the City of Bell Gardens, hereby CERTIFY that City Council Resolution No. ___________was adopted by the Bell Gardens City Council at a regular meeting of the City Council held on ___________________, and was approved and passed by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

1 2025

PROFESSIONAL SERVICES AGREEMENT
(Engagement: Economic Development Marketing Services)
(Parties: MNS Engineers, Inc. and City of Bell Gardens)

THIS PROFESSIONAL SERVICES AGREEMENT (hereinafter, “Agreement”) is made and entered into this day of 2025 (hereinafter, the “Effective Date”) by and between the CITY OF BELL GARDENS, a municipal corporation (hereinafter, “CITY”) and MNS Engineers, Inc. (hereinafter, “CONSULTANT”). For the purposes of this Agreement, CITY and CONSULTANT may be referred to collectively by the capitalized term “Parties.” The capitalized term “Party” may refer to CITY or CONSULTANT interchangeably, as appropriate.

RECITALS

WHEREAS, CITY requires professional consulting services for economic development marketing services; and

WHEREAS, CITY staff has determined that CONSULTANT possesses the experience, skills and training necessary to competently provide such services to CITY; and

WHEREAS, the execution of this Agreement was approved by the Bell Gardens City Council at its Regular Meeting.

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

I.

ENGAGEMENT TERMS

1.1 SCOPE OF WORK:

A. Subject to the terms and conditions of this Agreement, CONSULTANT agrees to provide the services and tasks described in that certain Request for Proposals of CITY entitled “Requests for Proposals for Economic Development Marketing Services” (hereinafter, “CITY RFP”) dated February 12, 2025, and the written proposal of CONSULTANT entitled “Bell Gardens Economic Development Marketing Services RFP Proposal” (hereinafter, the “CONSULTANT Proposal”) dated February 27, 2025. The CITY RFP and the CONSULTANT Proposal are attached and incorporated hereto as Exhibit “A” and “B” respectively. The term “Scope of Work” shall be a collective reference to the CITY RFP and the CONSULTANT Proposal. The capitalized term “Work” shall be a collective reference to all the various services and tasks referenced in the Scope of Work. In the event of any conflict or inconsistency between the provisions of the document entitled CITY RFP and the provisions of the document entitled CONSULTANT Proposal, the requirements of the document entitled CITY

2 RFP shall govern and control but only to the extent of the conflict or inconsistency and no further. In the event of any conflict or inconsistency between the provisions of the Scope of Work and the provisions of this Agreement to which the Scope of Work is attached, the provisions of this Agreement shall govern and control.

1.2 PROSECUTION OF WORK:

A. Time is of the essence of this Agreement and each and every provision contained herein. The Work shall be commenced within three (3) calendar days of CITY’s issuance of a Notice to Proceed. CONSULTANT shall complete the various tasks identified in the Scope of Work within the timeframes set forth in the Scope of Work and shall complete all of the Work by or before May 31, 2026 (the “Completion Date”);

B. CONSULTANT shall cooperate with CITY and in no manner interfere with the work of CITY, its employees or other consultants, contractors or agents;

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

D. CONSULTANT shall at all times enforce strict discipline and good order among CONSULTANT’s employees; and

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

1.3 COMPENSATION: CONSULTANT shall perform the Work in accordance with the “Cost and Pricing” section of CONSULTANT Proposal (hereinafter, the “COMPENSATION RATE”). The foregoing notwithstanding, CONSULTANT’s total compensation for the performance of all Work contemplated under this Agreement, will not exceed the total budgeted aggregate sum of SIXTY THOUSAND ONE HUNDRED FIVE DOLLARS ($60,105) (hereinafter, the “Not- to-Exceed Sum”) during the prosecution of this Agreement, unless such added expenditure is first approved by the City Council. In the event CONSULTANT’s charges are projected to exceed the Not-to-Exceed Sum prior to the expiration of this Agreement, CITY may suspend CONSULTANT’s performance pending CITY approval of any anticipated expenditures in excess of the Not-to-Exceed Sum or any other CITY approved amendment to the compensation terms of this Agreement.

1.4 PAYMENT OF COMPENSATION: Following the conclusion of the work requested in Section 1.1, CONSULTANT shall submit to CITY an itemized invoice indicating the services performed and tasks completed during the recently concluded calendar month, including services and tasks performed and the reimbursable out- of-pocket expenses incurred. If the amount of CONSULTANT’s compensation is a function of hours worked by CONSULTANT’s personnel, the invoice should indicate the number of hours worked, the persons responsible for performing the

3 Work, the rate of compensation at which such services and tasks were performed, the subtotal for each task and service performed and a grand total for all services performed. Within thirty (30) calendar days of receipt of each invoice, CITY will notify CONSULTANT in writing of any disputed amounts included in the invoice.

Within forty-five (45) calendar days of receipt of each invoice, CITY will pay all undisputed amounts included on the invoice. CITY will not withhold applicable taxes or other authorized deductions from payments made to CONSULTANT.

1.5 ACCOUNTING RECORDS: CONSULTANT will maintain complete and accurate records with respect to all matters covered under this Agreement for a period of three (3) years after the expiration or termination of this Agreement. CITY will have the right to access and examine such records, without charge, during normal business hours. CITY will further have the right to audit such records, to make transcripts therefrom and to inspect all program data, documents, proceedings, and activities.

1.6 ABANDONMENT BY CONSULTANT: In the event CONSULTANT ceases to perform the Work agreed to under this Agreement or otherwise abandons the undertaking contemplated herein prior to the expiration of this Agreement or prior to completion of any or all tasks set forth in the Scope of Work, CONSULTANT will deliver to CITY immediately and without delay, all materials, records and other work product prepared or obtained by CONSULTANT in the performance of this Agreement. Furthermore, CONSULTANT will only be compensated for the reasonable value of the services, tasks and other Work performed up to the time of cessation or abandonment, less a deduction for any damages, costs or additional expenses which CITY may incur as a result of CONSULTANT’s cessation or abandonment.

II.

PERFORMANCE OF AGREEMENT

2.1 CITY’S REPRESENTATIVE: The CITY hereby designates the Community Development Director (hereinafter, the “City Representative”) to act as its representative for the performance of this Agreement. The City Representative or their designee will act on behalf of the CITY for all purposes under this Agreement.

CONSULTANT will not accept directions or orders from any person other than the City Representative or their designee.

2.2 CONSULTANT REPRESENTATIVE: CONSULTANT hereby designates Damien Delany, Housing Practice Lead, Client Oversight, to act as its representative for the performance of this Agreement (hereinafter, “Consultant Representative”).

Consultant Representative will have full authority to represent and act on behalf of the CONSULTANT for all purposes under this Agreement. Consultant Representative or their designee will supervise and direct the performance of the Work, using their best skill and attention, and will be responsible for all means, methods, techniques, sequences and procedures and for the satisfactory coordination of all portions of the Work under this Agreement. Notice to the Consultant Representative will constitute notice to CONSULTANT.

4 2.3 COORDINATION OF SERVICE; CONFORMANCE WITH REQUIREMENTS:

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

2.4 STANDARD OF CARE; PERFORMANCE OF EMPLOYEES: CONSULTANT represents, acknowledges and agrees to the following:

A. CONSULTANT will perform all Work in accordance with the generally accepted professional practices and principles and in a manner consistent with the level of care and skill ordinarily exercised by members of the profession currently practicing under similar conditions (the “Standard of Care”);

B. CONSULTANT shall at all times employ such force, plant, materials, and tools as will be sufficient in the opinion of the CITY and in compliance with the Standard of Care to perform the Services within the time limits established, and as provided herein. It is understood and agreed that said tools, equipment, apparatus, facilities, labor, and material shall be furnished and said Services performed and completed as required by the Agreement, and subject to the approval of the CITY’s authorized representative;

C. CONSULTANT will perform all Work in a manner reasonably satisfactory to the CITY;

D. CONSULTANT will comply with all applicable federal, state and local laws and regulations, including the conflict of interest provisions of Government Code Section 1090 and the Political Reform Act (Government Code Section 81000 et seq.). CONSULTANT shall be liable for all violations of such laws and regulations in connection with Services. If CONSULTANT performs any work knowing it to be contrary to such laws, rules and regulations, CONSULTANT shall be solely responsible for all costs arising therefrom;

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

F. All of CONSULTANT’s employees and agents possess sufficient skill, knowledge, training and experience to perform those services and tasks assigned to them by CONSULTANT; and

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

5 The Parties acknowledge and agree that CONSULTANT will perform, at CONSULTANT’s own cost and expense and without any reimbursement from CITY, any services necessary to correct any errors or omissions caused by CONSULTANT’s failure to comply with the standard of care set forth under this Section or by any like failure on the part of CONSULTANT’s employees, agents, contractors, subcontractors and subconsultants. Such effort by CONSULTANT to correct any errors or omissions will be commenced immediately upon their discovery by either Party and will be completed within seven (7) calendar days from the date of discovery or such other extended period of time authorized by the City Representative in writing and in their sole and absolute discretion. The Parties acknowledge and agree that CITY’s acceptance of any work performed by CONSULTANT or on CONSULTANT’s behalf will not constitute a release of any deficiency or delay in performance. The Parties further acknowledge, understand and agree that CITY has relied upon the foregoing representations of CONSULTANT, including but not limited to the representation that CONSULTANT possesses the skills, training, knowledge and experience necessary to perform the Work skillfully, competently and to the highest standards of CONSULTANT’s profession.

2.5 ASSIGNMENT: The skills, training, knowledge and experience of CONSULTANT are material to CITY’s willingness to enter into this Agreement. Accordingly, CITY has an interest in the qualifications and capabilities of the person(s) who will perform the services and tasks to be undertaken by CONSULTANT or on behalf of CONSULTANT in the performance of this Agreement. In recognition of this interest, CONSULTANT agrees that it will not assign or transfer, either directly or indirectly or by operation of law, this Agreement or the performance of any of CONSULTANT’s duties or obligations under this Agreement without the prior written consent of the CITY. In the absence of CITY’s prior written consent, any attempted assignment or transfer will be ineffective, null and void and will constitute a material breach of this Agreement.

2.6 SUBSTITUTION OF KEY PERSONNEL : CONSULTANT has represented to CITY that certain key personnel will perform and coordinate the Services under this Agreement. Should one or more of such personnel become unavailable, CONSULTANT may substitute other personnel of at least equal competence upon written approval of CITY. In the event that CITY and CONSULTANT cannot agree as to the substitution of key personnel, CITY shall be entitled to terminate this Agreement for cause. As discussed below, any personnel who fail or refuse to perform the Services in a manner acceptable to the CITY, or who are determined by the CITY to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project or a threat to the safety of persons or property, shall be promptly removed from the Project by the CONSULTANT at the request of the CITY.

2.7 CONTROL AND PAYMENT OF SUBORDINATES; INDEPENDENT
CONTRACTOR: The Work will be performed by CONSULTANT or under CONSULTANT’s strict supervision. CONSULTANT will determine the means, methods and details of performing the Work subject to the requirements of this

6 Agreement. CITY retains CONSULTANT on an independent contractor basis and not as an employee. CONSULTANT reserves the right to perform similar or different services for other principals during the term of this Agreement, provided such work does not unduly interfere with CONSULTANT’s competent and timely performance of the Work contemplated under this Agreement and provided the performance of such services does not result in the unauthorized disclosure of CITY’s confidential or proprietary information. Any additional personnel performing the Work under this Agreement on behalf of CONSULTANT are not employees of CITY and will at all times be under CONSULTANT’s exclusive direction and control. CONSULTANT will pay all wages, salaries and other amounts due to such personnel and will assume responsibility for all benefits, payroll taxes, Social Security and Medicare payments and the like. CONSULTANT will be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: Social Security taxes, income tax withholding, unemployment insurance, disability insurance, workers’ compensation insurance and the like.

2.8 REMOVAL OF EMPLOYEES OR AGENTS: If any of CONSULTANT’s officers, employees, agents, contractors, subcontractors or subconsultants is determined by the City Representative to be uncooperative, incompetent, a threat to the adequate or timely performance of the tasks assigned to CONSULTANT, a threat to persons or property, or if any of CONSULTANT’s officers, employees, agents, contractors, subcontractors or subconsultants fail or refuse to perform the Work in a manner acceptable to the CITY, such officer, employee, agent, contractor, subcontractor or subconsultant will be promptly removed by CONSULTANT and will not be reassigned to perform any of the Work.

2.9 COMPLIANCE WITH LAWS: CONSULTANT will keep itself informed of and in compliance with all applicable federal, state or local laws to the extent such laws control or otherwise govern the performance of the Work. CONSULTANT’s compliance with applicable laws will include, without limitation, compliance with all applicable Cal/OSHA requirements and applicable regulations of the Federal Department of Housing and Urbanization.

2.10 NON-DISCRIMINATION: CONSULTANT represents that it is an equal opportunity employer and it shall not discriminate against any subconsultant, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex or age. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination.

2.11 INDEPENDENT CONTRACTOR STATUS: The Parties acknowledge, understand and agree that CONSULTANT and all persons retained or employed by CONSULTANT are, and will at all times remain, wholly independent contractors and are not officials, officers, employees, departments or subdivisions of CITY.

CONSULTANT will be solely responsible for the negligent acts and/or omissions of its employees, agents, contractors, subcontractors and subconsultants.

CONSULTANT and all persons retained or employed by CONSULTANT will have no authority, express or implied, to bind CITY in any manner, nor to incur any obligation, debt or liability of any kind on behalf of, or against, CITY, whether by

7 contract or otherwise, unless such authority is expressly conferred to CONSULTANT under this Agreement or is otherwise expressly conferred by CITY in writing.

III.

INSURANCE

3.1 DUTY TO PROCURE AND MAINTAIN INSURANCE: Prior to the beginning of and throughout the duration of the Work, CONSULTANT will procure and maintain policies of insurance that meet the requirements and specifications set forth under this Article. CONSULTANT will procure and maintain the following insurance coverage, at its own expense:

A. Commercial General Liability Insurance: CONSULTANT will procure and maintain Commercial General Liability Insurance (“CGL Coverage”) as broad as Insurance Services Office Commercial General Liability coverage (occurrence Form CG 0001) or its equivalent. Such CGL Coverage will have minimum limits of no less than One Million Dollars ($1,000,000.00) per occurrence and Two Million Dollars ($2,000,000.00) in the general aggregate for bodily injury, personal injury, property damage, operations, products and completed operations, and contractual liability.

B. Automobile Liability Insurance: CONSULTANT will procure and maintain Automobile Liability Insurance as broad as Insurance Services Office Form Number CA 0001 covering Automobile Liability, Code 1 (any auto). Such Automobile Liability Insurance shall have minimum limits of no less than One Million Dollars ($1,000,000.00) per accident for bodily injury and property damage.

C. Workers’ Compensation Insurance/ Employer’s Liability Insurance: A policy of workers’ compensation insurance in such amount as will fully comply with the laws of the State of California and which will indemnify, insure and provide legal defense for both CONSULTANT and CITY against any loss, claim or damage arising from any injuries or occupational diseases occurring to any worker employed by or any persons retained by CONSULTANT in the course of carrying out the Work contemplated in this Agreement.

D. Errors & Omissions Insurance: For the full term of this Agreement and for a period of three (3) years thereafter, CONSULTANT will procure and maintain Errors and Omissions Liability Insurance appropriate to CONSULTANT’s profession. Such coverage will have minimum limits of no less than One Million Dollars ($1,000,000.00) per claim.

3.2 ADDITIONAL INSURED REQUIREMENTS: The CGL Coverage and the Automobile Liability Insurance will contain an endorsement naming the CITY and CITY’s elected and appointed officials, officers, employees, agents and volunteers as additional insureds.

3.3 REQUIRED CARRIER RATING: All varieties of insurance required under this

8 Agreement will be procured from insurers admitted in the State of California and authorized to issue policies directly to California insureds. Except as otherwise provided elsewhere under this Article, all required insurance will be procured from insurers who, according to the latest edition of the Best’s Insurance Guide, have an A.M. Best’s rating of no less than A:VII. CITY may also accept policies procured by insurance carriers with a Standard & Poor’s rating of no less than BBB according to the latest published edition the Standard & Poor’s rating guide. As to Workers’ Compensation Insurance/ Employer’s Liability Insurance, the CITY Representative is authorized to authorize lower ratings than those set forth in this Section.

3.4 PRIMACY OF CONSULTANT’S INSURANCE: All policies of insurance provided by CONSULTANT will be primary to any coverage available to CITY or CITY’s elected or appointed officials, officers, employees, agents or volunteers. Any insurance or self-insurance maintained by CITY or CITY’s elected or appointed officials, officers, employees, agents or volunteers will be in excess of CONSULTANT’s insurance and will not contribute with it.

3.5 WAIVER OF SUBROGATION: All insurance coverage provided pursuant to this Agreement will not prohibit CONSULTANT or CONSULTANT’s officers, employees, agents, subcontractors or subconsultants from waiving the right of subrogation prior to a loss. CONSULTANT hereby waives all rights of subrogation against CITY, its officials, officers, employees, agents and volunteers.

3.6 VERIFICATION OF COVERAGE: CONSULTANT acknowledges, understands and agrees, that CITY’s ability to verify the procurement and maintenance of the insurance required under this Article is critical to safeguarding CITY’s financial well-being and, indirectly, the collective well-being of the residents of the CITY.

Accordingly, CONSULTANT warrants, represents and agrees that it will furnish CITY with original certificates of insurance and endorsements evidencing the coverage required under this Article on forms satisfactory to CITY in its sole and absolute discretion. The certificates of insurance and endorsements for each insurance policy will be signed by a person authorized by that insurer to bind coverage on its behalf, and will be on forms provided by the CITY if requested. All certificates of insurance and endorsements will be received and approved by CITY as a condition precedent to CONSULTANT’s commencement of any Work. Upon CITY’s written request, CONSULTANT will also provide CITY with certified copies of all required insurance policies and endorsements.

3.7 FAILURE TO MAINTAIN COVERAGE: In the event any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced immediately so as to avoid a lapse in the required coverage, CITY has the right but not the duty to obtain the insurance it deems necessary and any premium paid by CITY will be promptly reimbursed by CONSULTANT or CITY will withhold amounts sufficient to pay premium from CONSULTANT payments. In the alternative, CITY may cancel this Agreement effective upon notice.

3.8 SPECIAL RISKS OR CIRCUMSTANCES. CITY reserves the right to modify these

9 requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.

IV.

INDEMNIFICATION

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

Notwithstanding the foregoing, to the extent CONSULTANT’s services are subject to Civil Code Section 2782.8, the above indemnity shall be limited, to the extent required by Civil Code Section 2782.8, to Claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the CONSULTANT.

CONSULTANT’s obligation to indemnify shall not be restricted to insurance proceeds, if any, received by the CITY, its officials, officers, employees, agents or volunteers.

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

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

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

4.5 CONSULTANT agrees to obtain executed indemnity agreements with provisions identical to those set forth herein this Article from each and every subcontractor or

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

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

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

V.

TERMINATION

5.1 TERMINATION WITHOUT CAUSE: CITY may immediately terminate this Agreement at any time for convenience and without cause by giving prior written notice of CITY’s intent to terminate this Agreement which notice shall specify the effective date of such termination. Upon such termination for convenience, CONSULTANT will be compensated only for those services and tasks which have been performed by CONSULTANT up to the effective date of the termination.

CONSULTANT may not terminate this Agreement except for cause as provided under Section 5.2, below. If this Agreement is terminated as provided herein, CITY may require CONSULTANT to provide all finished or unfinished Documents and Data, as defined in Section 6.1, below, and other information of any kind prepared by CONSULTANT in connection with the performance of the Work.

CONSULTANT will be required to provide such Documents and Data within fifteen (15) calendar days of CITY’s written request. No actual or asserted breach of this Agreement on the part of CITY pursuant to Section 5.2, below, will operate to prohibit or otherwise restrict CITY’s ability to terminate this Agreement for convenience as provided under this Section.

5.2 EVENTS OF DEFAULT; BREACH OF AGREEMENT:

A. In the event either Party fails to perform any duty, obligation, service or task set forth under this Agreement (or fails to timely perform or properly perform