Agenda packet — Bellflower City Council, February 14, 2022 (part 1 of 2)

T h e C i t y o f B e l l f l o w e r
Families. Businesses. Futures.
16600 Civic Center Drive, Bellflower, CA 90706
Tel 562.804.1424 Fax 562.925.8660 www.bellflower.org

Next CC Resolution No. 22-10
Next BFA Resolution No. BFA 22-1
Next CC Agreement No. 924
Next Ordinance No. 1412

In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk’s Office at (562) 804-1424. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting.

Agenda Items are on file in the Office of the City Clerk and are available for public inspection during normal business hours. For your convenience, the Agenda is also posted on the City’s Website at www.bellflower.org with links to each Agenda Item (unless they are too lengthy or unavailable at the time of posting). Any supplemental material distributed to a majority of the members of the City Council/Successor Agency after the posting of this Agenda will be made available for public inspection during normal business hours in the City Clerk’s Office at City Hall, 16600 Civic Center Drive, Bellflower. (Privileged documents and Closed Session documents are exempted.)

REGULAR MEETING OF THE BELLFLOWER CITY COUNCIL

AND BELLFLOWER FINANCING AUTHORITY
CITY denotes City Council items
BFA denotes Bellflower Financing Authority items

MONDAY, FEBRUARY 14, 2022 - TELECONFERENCE AND

BELLFLOWER CITY HALL - COUNCIL CHAMBERS
5:30 P.M. CLOSED SESSION / 7 P.M. OPEN SESSION

NOTE THAT THIS MEETING WILL BE PARTIALLY CONDUCTED BY ELECTRONIC MEANS PURSUANT TO GOVERNMENT CODE § 54953(E) AS IMPLEMENTED BY CITY COUNCIL RESOLUTION.

COUNCIL MEMBERS WILL BE PRESENT AT CITY HALL FOR THIS MEETING. NOTE, HOWEVER, NO MEMBERS OF THE PUBLIC WILL BE ALLOWED IN CITY HALL. PERSONS WISHING TO PROVIDE PUBLIC COMMENT MUST DO SO VIRTUALLY UTILIZING ANY OF THE METHODS LISTED BELOW.

PARTICIPATION VIA ELECTRONIC MEANS IS ENCOURAGED.

PURSUANT TO GOVERNMENT CODE § 54953(E), THE PUBLIC MAY PROVIDE PUBLIC COMMENT BY EMAILING COMMENTS TO [email protected] BEFORE THE START OF THE MEETING OR IN REAL TIME DURING THE MEETING BY PARTICIPATING VIA THE ZOOM WEBSITE/APP OR BY CALLING (669) 900-6833. (ZOOM MEETING ID: 889 7238 6563)

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Bellflower City Council Agenda/Bellflower Financing Authority Agenda February 14, 2022

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VIRTUAL/ELECTRONIC PUBLIC PARTICIPATION

In accordance with Government Code § 54953(e) and City Council resolution, remote public participation is allowed in the following ways:

Participants are encouraged to join the meeting 15 minutes before the start of the meeting.

Public comment will be accepted via email to [email protected] during the meeting, before the close of public comment, and read into the record during public comment, when feasible.

We request that written communications be limited to not more than 50 words.

Public comment may be submitted via a smart device (computer, cell phone, iPad, tablet, etc.) by logging into Zoom at the following link https://us02web.zoom.us/j/88972386563 (Meeting ID number:
889 7238 6563). You may enter your name when prompted do so. This is optional and not required to attend the meeting. For public comment, however, the City Clerk will need a name for the meeting minutes. Participants entering names that violate community standards will be removed from the meeting. If you wish to provide public comment at either the beginning of the meeting or for a particular item, you may either (a) contact the City Clerk’s Office before the meeting and provide your name to be called; or (b) utilize the “raise hand” option located under the participants name. Once you click on this option you will be in the rotation to make a public comment. Participants can always click on “raise hand” again to be removed from the rotation. Please note, if you do not have audio feature on your device you will need to call in, should you want to make a public comment.

Public comment may be submitted via telephone during the meeting, before the close of public comment, by calling (669) 900-6833 and entering Zoom Meeting ID: 889 7238 6563 then press pound (#). When prompted to enter participation ID number press pound (#) again. If participants would like to make a public comment they will enter “*9” then the Clerk’s office will be notified and you will be in the rotation to make a public comment.

The public may also watch the meeting live on the City’s cable channel Spectrum Cable TV Ch. 36 (PEG) or by visiting the City’s website at https://www.bellflower.org/council/city_council_meetings/def ault.asp.

Important Disclaimer – When a participant logs in via their computer or calls in to join the meeting, their name and/or phone number will be visible to all participants. Note that all public meetings will be recorded.

Bellflower City Council Agenda/Bellflower Financing Authority Agenda February 14, 2022

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5:30 P.M. – CLOSED SESSION

1 CALL TO ORDER

2 ROLL CALL: Mayor Ray Dunton
Mayor Pro Tem Sonny R. Santa Ines
Council Member Raymond Y. Hamada
Council Member Dan Koops
Council Member Victor A. Sanchez

3 RECESS TO CLOSED SESSION

A CONFERENCE WITH LEGAL COUNSEL – INITIATION OF LITIGATION - GOVERNMENT CODE § 54956.9(d)(4). Number of Cases: Four. [CITY] Potential defendants and properties listed below (not required by applicable law; voluntarily disclosed):

1. Safaa al Lababidi; Does 1-12; 17634 Bellflower Blvd., Bellflower, CA 90706 (APN 7161-013-081);

2. Bryan Womack; Does 1-12; 15751 Blaine Avenue, Bellflower, CA 90706 (APN 6271-031-015);

3. Shaio Lang Chang; Does 1-12; 10531 Trabuco Street, Bellflower, CA 90706 (APN 7017-001-026); and

4. Samuel Bybee; Does 1-12; 9137 Belmont Street, Bellflower, CA 90706 (APN 7105-011-014).

B CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Significant exposure to litigation pursuant to Government Code Section 54956.9(d)(2): One Matter

1991 Jacquelyn S. Connolly Revocable Living Trust; APN 7161-008-905

4 RECONVENE FOR OPEN SESSION

7 P.M. – OPEN SESSION

5 CALL TO ORDER

6 ROLL CALL: Mayor Ray Dunton
Mayor Pro Tem Sonny R. Santa Ines
Council Member Raymond Y. Hamada
Council Member Dan Koops
Council Member Victor A. Sanchez

7 INVOCATION: Mayor Pro Tem Sonny R. Santa Ines

8 PLEDGE OF ALLEGIANCE: Joel Hockman, Director of Public Safety

Bellflower City Council Agenda/Bellflower Financing Authority Agenda February 14, 2022

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9 CITY COUNCIL ANNOUNCEMENTS / PRESENTATIONS

A City Council Announcements [CITY]

B African American History Month [CITY]

C Student Recognition for the Community Recycling Artwork Contest [CITY]

10 PUBLIC COMMENTS

This is the time set aside for the public to address the City Council on matters not listed on the Agenda. Those wishing to speak on an agenda item must utilize one of the methods listed on page 2 of the Agenda. You will be given three (3) minutes to address the City Council. Attempts to provide comment at times not designated

11 PUBLIC HEARINGS

None

12 ORDINANCES AND RESOLUTIONS FOR CONSIDERATION

None

13 CONSIDERATION ITEMS

A Consideration and possible action to review and confirm that an “Affirmation of Non-Ownership” letter submitted by Dynasty Alliance Grow, Inc., meets the conditions of approval for its 2022 Cannabis Business Permit (CBP) renewal. [CITY] ___ Recommendation to City Council: 1) Confirm that the “Affirmation of Non Ownership” letter submitted by Dynasty Alliance Grow, Inc., meets the conditions of approval for its 2022 CBP renewal; or 2) Alternatively, discuss and take other action related to this item.

14 CONSENT CALENDAR

All items under the Consent Calendar are considered by the City Council to be routine and will be enacted by one motion. Specific items may be removed from the Consent Calendar at the request of any member of the City Council for separate consideration.

A Consideration and possible action to receive and file City Council Warrant Register No. 22-081, dated February 14, 2022. [CITY] Recommendation to City Council: 1) Receive and file Warrant Register No. 22 081; or 2) Alternatively, discuss and take other action related to this item.

Bellflower City Council Agenda/Bellflower Financing Authority Agenda February 14, 2022

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14 CONSENT CALENDAR – Continued

B Consideration and possible action to receive and file Bellflower Financing Authority’s audited financial statements for the fiscal year ended June 30, 2021. [BFA] _____ Recommendation to Bellflower Financing Authority: 1) Receive and file Bellflower Financing Authority’s audited financial statements; or 2) Alternatively, discuss and take other action related to this item.

C Consideration and possible action to adopt Resolution No. 22-7 – A Resolution designating the Alternate Director to Los Angeles County Sanitation Districts Nos. 2, 3, and 18; and superseding Resolution No. 19-92. [CITY]
Recommendation to City Council: 1) Adopt Resolution No. 22-7; or 2) Alternatively, discuss and take other action related to this item.

D Consideration and possible action to adopt Resolution No. 22-8 – A Resolution extending the existence of a local emergency and authorizing hybrid public meetings via teleconferencing. [CITY] _____
CEQA: The Resolution itself and the actions anticipated by the Resolution were reviewed pursuant to the California Environmental Quality Act (Public Resources Code §§ 21000, et seq., “CEQA”) and the regulations promulgated thereunder (14 Cal. Code of Regulations §§15000, et seq., the “CEQA Guidelines”). Based upon that review, this action is exempt from further review pursuant to CEQA Guidelines § 15269(a) because the protection of public and private property is necessary to maintain service essential to the public, health and welfare.

Recommendation to City Council: 1) Adopt Resolution No. 22-8; or 2) Alternatively, discuss and take other action related to this item.

E Consideration and possible action to authorize the City Manager to execute Amendment No. 1 to Agreement File No. 41.1, in a form approved by the City Attorney, with Joe A. Gonsalves and Son for legislative advocacy and governmental affairs services. [CITY] ________________________________ Recommendation to City Council: 1) Authorize the City Manager to execute Amendment No. 1 to Agreement File No. 41.1, in a form approved by the City Attorney; or 2) Alternatively, discuss and take other action related to this item.

F Consideration and possible action to receive and file denial of a claim submitted by Ernesto Arreola. [CITY] Recommendation to City Council: 1) Receive and file denial of acclaim submitted by Ernesto Arreola; or 2) Alternatively, discuss and take other action related to this item.

Bellflower City Council Agenda/Bellflower Financing Authority Agenda February 14, 2022

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14 CONSENT CALENDAR – Continued

G Consideration and possible action to adopt Resolution No. 22-9 – A Resolution authorizing the submittal of application(s) for all CalRecycle grants for which the City of Bellflower is eligible. [CITY]
Recommendation to City Council: 1) Adopt Resolution No. 22-9; or 2) Alternatively, discuss and take other action related to this item.

H Consideration and possible action to authorize the City Manager to execute Agreement File No. 923, in a form approved by the City Attorney, with Craftwater Engineering, Inc., for the development of the Simms Park Regional Stormwater Capture Project design. [CITY]____________________ Recommendation to City Council: 1) Authorize the City Manager to execute Agreement File No. 923, in a form approved by the City Attorney; or 2) Alternatively, discuss and take other action related to this item.

I Consideration and possible action to approve the Minutes of the January 20, 2022 Special Meeting of the City Council. [CITY] Recommendation to City Council: 1) Approve the January 20, 2022, Special Meeting Minutes; or 2) Alternatively, discuss and take other action related to this item.

J Consideration and possible action to approve the Minutes of the January 24, 2022 Regular Meeting of the City Council. [CITY] Recommendation to City Council: 1) Approve the January 24, 2022, Regular Meeting Minutes; or 2) Alternatively, discuss and take other action related to this item.

15 COUNCIL REPORTS

16 ADJOURNMENT

Adjourn to the next Regular Meeting of the Bellflower City Council at 5:30 p.m. on Monday, February 28, 2022.

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TO: Honorable Mayor and Members of the City Council

ATTENTION: Jeffrey L. Stewart, City Manager

FROM: Travis Sais, Assistant to the City Manager

SUBJECT: Consideration and possible action to review and confirm that an “Affirmation of Non-Ownership” letter submitted by Dynasty Alliance Grow, Inc., meets the conditions of approval for its 2022 Cannabis Business Permit (CBP) renewal.

DATE: February 14, 2022

EXECUTIVE SUMMARY

On December 9, 2021, the City Council considered annual Cannabis Business Permit (CBP) renewals for current cannabis business permittees in the City of Bellflower. As a condition of Dynasty Alliance Grow, Inc.’s Cultivation CBP renewal, the City Council determined (among other things) that Mr. Yoan Leon will need to be Live -Scanned and vetted as “Ownership” (as defined in the Cannabis Regulations). In response to this condition of renewal, Berenice Cristerna of Dynasty Alliance Group, Inc., submitted a notarized “Affirmation of Non-Ownership” letter (“letter”) from Mr. Yoan Leon Vargas, dated January 31, 2022, indicating that Mr. Yoan Leon Vargas has no equity interest in the company and that he has no right or intention to participate in the direction, control, or management of Dynasty Alliance Grow, Inc.

It is staff’s understanding that Dynasty Alliance Grow, Inc. submitted the notarized letter to satisfy the condition of renewal pertaining to Mr. Yoan Leon Vargas needing to be Live-Scanned and vetted as “Ownership” (as defined in the Cannabis Regulations). The City Manager and the City Attorney reviewed the letter and are satisfied that Mr.

Vargas’s assurances in the letter confirms that he does not meet the definition of “ownership,” under the Cannabis Regulations. The City Attorney sent Dynasty Alliance Grow, Inc. a letter dated February 10, 2022, regarding the matter including notice that the City Council would consider the matter on February 14, 2022. A copy of that letter is included.

RECOMMENDATION TO CITY COUNCIL

1) Confirm that the “Affirmation of Non-Ownership” letter submitted by Dynasty Alliance Grow, Inc., meets the conditions of approval for its 2022 CBP renewal; or

2) Alternatively, discuss and take other action related to this item.

FISCAL IMPACT

No fiscal impact with respect to this action.
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Staff Report – Cannabis Business Permit Renewal – Dynasty Alliance Grow, Inc.

February 14, 2022

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DISCUSSION

On December 9, 2021, the City Council considered annual Cannabis Business Permit (CBP) renewals for current cannabis business permittees in the City of Bellflower.

Following the discussion on the renewal of Dynasty Alliance Grow, Inc.’s Cultivation CBP, the City Council granted Dynasty Alliance Grow, Inc. renewal of the CBP for Cultivation use at 8832 Ramona Street in the City of Bellflower, subject to the following conditions:

1. Mr. Yoan Leon will need to be Live-Scanned and vetted as “Ownership” (as defined in the Cannabis Regulations);

2. Proof of a Valid State Cannabis License for Dynasty Alliance Grow, Inc. will need to be provided to the City; and

3. Provide a certification, in a form approved by the City Attorney, signed under penalty of perjury in accordance with the laws of the state of California, confirming that there is no change in ownership between an originally issued CBP and a renewed CBP, unless approved by the City Council through a Modification application in accordance with the Cannabis Regulat ions.

During the discussion of the CBP renewal for Dynasty Alliance Grow, Inc, the City Council determined that Mr. Yoan Leon will need to be Live-Scanned and vetted as “Ownership” (as defined in the Cannabis Regulations ), due to his involvement in the permittee (Condition No. 1).

On January 5, 2022, the City received a document entitled “Renunciation of Dynasty Alliance Grow, Inc.” dated January 4, 2021 [sic]. It was signed by Mr. Yoan Leon Vargas and notarized. On January 10th, the City Attorney reviewed the document and advised that it did not meet the requirements of Dynasty’s CBP. Among other things, it was not signed under penalty of perjury. A copy of that document is included for reference.

Thereafter, Dynasty Alliance Group, Inc., submitted a new notarized “Affirmation of Non-Ownership” letter (“letter”) from Mr. Yoan Leon Vargas, dated January 31, 2022 (but signed January 24th), stating that Mr. Yoan Leon Vargas has no equity interest in the company and that he has no right or intention to pa rticipate in the direction, control, or management of Dynasty Alliance Grow, Inc. Additionally, Mr. Yoan Leon Vargas also states in the letter that he holds no equity interest in the company BNY Enterprises, LLC (“BNY”), which owns the real property located at 8832 Ramona Street, and that he has no right or intention to participate in the direction, control, or management of BNY.

The City Manager and the City Attorney reviewed the letter and believe that this satisfies the Cannabis Regulations and CBP conditions of approval regarding Mr. Yoan Leon Vargas’s lack of “ownership.”

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Staff Report – Cannabis Business Permit Renewal – Dynasty Alliance Grow, Inc.

February 14, 2022

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DISCUSSION – Continued

“Ownership” is defined in Resolution No. 21-08 as a person with an aggregate ownership interest of 25 percent or more in the person seeking a CBP or a permittee seeking a CBP Renewal, unless the interest is solely a security, lien, or encumbrance; or an individual who will be participating in the direction, control, or management of a permittee.

Accordingly, the City Attorney sent the permittee a le tter dated February 10, 2022 outlining the City’s understanding regarding the matter. All other conditions of renewal were satisfied by Dynasty Alliance Grow, Inc. As noted in the City Attorney’s letter, however the City may always summarily revoke the CBP if it discovers that Mr. Yoan Leon Vargas’s assurances were false or misleading.

Relatedly, the City received a letter dated December 22, 2021 from counsel representing a member of former permittee, BB&Y Logistics (now Dynasty Alliance Grow, Inc.); the City Attorney responded by letter dated December 23, 2021; and Dynasty Alliance Grow, Inc. was invited to respond to the letter on December 23, 2021.

Copies of all correspondence is included for reference.

ATTACHMENTS

January 5, 2022 Letter: “Renunciation of Dynasty Alliance Grow, Inc.”........................... 4 January 31, 2022 Letter: “Affirmation of Non-Ownership” .............................................. 5 February 10, 2022 City Attorney’s Letter ........................................................................ 7 City Attorney’s Correspondence ...................................................................................... 8

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February 10, 2022

Dynasty Alliance Grow, Inc. Letter sent via email to:

Ms. Berenice Cristerna [email protected]
8832 Ramona Street
Bellflower, CA 90706

Re: Letter dated January 31, 2022 (signed January 24, 2022) Disavowal of ownership by Mr. Yoan Vargas

Dear Ms. Cristerna:

The City received a letter dated January 31, 2021 [sic] and signed on January 24, 2022 from Mr.

Yoan Leon Vargas (the “Letter”). As you likely know, the Letter appears to disavow Mr. Vargas’s ownership in Dynasty Alliance Grow, Inc. (the “Permittee”) and arises from the Permittee’s conditions of approval in its Cannabis Business Permit (“CBP”). Specifically, Special Condition No. 3 requires that the Permittee

“[p]rovide a certification, in a form approved by the City Attorney, signed under penalty of perjury in accordance with the laws of the state of California, confirming that there is no change in ownership between an originally issued CBP and a renewed CBP, unless approved by the City Council through a Modification application in accordance with the Cannabis Regulations.”

The Letter seeks to avoid Condition No. 3 by asserting Mr. Vargas does not have “ownership” in the Permittee and therefore is not required to undergo a background check.

Based upon the Letter’s assertions, signed under penalty of perjury, it appears that Mr. Vargas does not have an ownership interest in the Permittee. I note, however, that the Letter’s wording is a bit ambiguous.

Specifically, it states that Mr. Vargas has “no right or intention to participate in the direction, control, or management of [the Permittee].” A strict reading of this wording suggests that Mr. Vargas could still be actually participating within the direction, control, or management of the Permittee. Simply because Mr. Vargas lacks the legal right to so engage, or the intent, does not mean Mr. Vargas is not actively directing, controlling, or managing the Permittee.

To ensure that the Letter meets the City Council’s expectations regarding Condition No. 3, the City Manager placed this matter onto the February 14, 2022 regular meeting agenda. You are encouraged to attend that meeting and answer questions the City Council may pose.

Be aware that Bellflower Municipal Code (“BMC”) § 14.28.040 empowers the City Manager to summarily revoke the CBP upon “learning or discovering facts that require permit denial under this title that were not previously disclosed or reasonably discoverable.” Additionally, BMC § 14.28.010 makes it a misdemeanor to violate any part of BMC Title 14 which regulates the CBP. Finally, any evidence of perjury will be transmitted to the Los Angeles County District Attorney’s office for potential prosecution.

Very truly yours,

Karl H. Berger, City Attorney
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Monday, February 7, 2022 at 14:29:13 Pacific Standard Time

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Subject:BF - Dynasty Alliance complaint
Date:Thursday, December 23, 2021 at 12:32:41 PM Pacific Standard Time From:Karl Berger
To:[email protected]
CC:Jeff Stewart, Travis Sais, Mayra Ochiqui, CAOffice
ADachments:image001.jpg, 20211222 - Reply LeTer to City of Bellflower City ATorney Karl Berger re Impermissible Transfer of CBP 19637.pdf, 20211223BF - Rogoway.pdf Good a\ernoon –

Be advised that the City of Bellflower received the aTached correspondence from a law firm challenging the City’s acFons regarding your cannabis business permit. Also aTached is my reply. The City welcomes a reply to the allegaFons contained in the !2/22/21 leTer regarding Dynasty Alliance’s CBP.

You should be aware that Dynasty Alliance is obligated to defend and indemnify the City in any legal acFon involving your CBP permit. Please also be aware that the City may be required to review your permit if it discovers false or misleading informaFon that was omiTed from the applicaFon submiTed to the City.

IdenFficaFon of any such informaFon may lead to revocaFon of your CBP.

Thank you for your aTenFon to this maTer.

Karl H. Berger

2600 W. Olive Avenue, Suite 500
Burbank, California 91505
818-333-5120 Office
661-644-5476 Mobile
[email protected]
www.hensleylawgroup.com
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BURBANK OFFICE
2600 W. OLIVE AVENUE
SUITE 500
BURBANK, CA 91505

______________

TORRANCE OFFICE
3655 TORRANCE BOULEVARD
SUITE 300
TORRANCE, CA 90503

SAN DIEGO OFFICE
3850 LA JOLLA VILLAGE DRIVE
LA JOLLA, CA 92037
WRITER'S DIRECT CONTACT:

BURBANK OFFICE
[email protected]
661.644.5476
WWW.HENSLEYLAWGROUP.COM

December 23, 2021

VIA EMAIL AND U.S. MAIL
Mr. Joseph Rogoway
Rogoway Law Group
115 4th Street, 2nd Floor, Suite B
Santa Rosa, California 96401
[email protected]

Re: Letter dated December 22, 2021

Dear Mr. Rogoway:

Thank you for your letter dated December 22, 2021. It is unclear what your letter seeks to achieve other than to create exhibits for some sort of writ petition that you obviously plan on filing against the City. So, I will be brief.

Had you reviewed the documentation that is available on the City’s website regarding cannabis permits (links were provided in my December 14, 2021 letter), you would see that the City’s cannabis regulations consist of far more than what is codified in the Bellflower Municipal Code.

Since your letter seems to hang on the notion of “ownership,” let me save you some research time and point you to Resolution No. 21-07 which defines that term for purposes of permit transfers. If you were to read the staff reports and meeting minutes associated with the modification process, you would see that the City Council’s intent regarding ownership transfers is to ensure owners are thoroughly vetted. The process has nothing to do with protecting an individual owner’s private property rights (if any); it only has to do with protecting public health, safety, and welfare. Accordingly, the City does not have any legal obligation to inform all owners of a permittee regarding a pending application.

As to your fun characterization of the City’s actions regarding your firm’s Public Records Act request, you conveniently ignore that you were provided with information during the actual public hearing regarding the permit renewal and encouraged to participate. Only your client, however, provided testimony; other than correspondence sent to the City Council outside the scope of the public hearing – which I specifically made part of the record to ensure transparency regarding the matter – the City Council heard nothing from your firm.

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Mr. Joseph Rogoway
December 22, 2021

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Your December 22nd letter also fails to acknowledge the City’s attempts to fulfill your vague, overbroad, and unduly burdensome public records request. Specifically, the City provided you with two specific URL links from where all public documents can be retrieved via the City’s webpage. The City is not legally required to engage in fishing expeditions based upon vague and inflammatory requests from your law firm and respectfully declines to do so.

The City is standing by for a revised request. My suggestion is for your firm to narrow the PRA request as to date, time, and/or authors. You are, again, informed that correspondence older than December 2019 will not be available since the City’s keeps such documents for two years in accordance with its retention schedule.

The only actual fact in your letter that piqued my interest was the quoted language referring to your client which your letter alleges is in the application. I agree that this deserves my attention.

Note that City Hall is closed until January 2022. I wish you a very Happy Holiday season.

Very truly yours,

Karl H. Berger
City Attorney

c: Mayor, Mayor pro tem, City Councilmembers
Jeff Stewart, City Manager
Mayra Ochiqui, City Clerk

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December 22, 2021
VIA EMAIL AND U.S. MAIL
Karl H. Berger, Esq.

City Attorney for the City of Bellflower
c/o Hensley Law Group
2500 W. Olive Avenue, Suite 500
Burbank, California 91505
(818)333-5120
Re: Impermissible Transfer of Cannabis Business Permit 19637 Dear Mr. Berger:

As you know, this firm represents Mr. Rene Orellana (“Mr. Orellana”), a military combat veteran and one of two equity owners of Cannabis Business Permit 19637 (“CBP 19637”). I have received your emails dated December 9, 2021, and I have also received your December 14, 2021 response to this firm’s December 10, 2021 Public Records Act Request (all attached as “Exhibit A”).

I am writing you because it has come to our attention that the City of Bellflower (“Bellflower”) has unlawfully allowed CBP 19637 to be: (1) modified to remove Mr. Orellana as the 40% owner of that permit; and (2) transferred, from BB&Y Logistics, LLC (“BB&Y”), a California limited liability company, to a new and different entity, Dynasty Alliance Grow, Inc (“Dynasty”), a California corporation.

CBP 19637: No Cognizable Ownership Transfer
On December 9, 2021, you provided us with a copy of a “CANNABIS BUSINESS PERMIT (CBP) AND MEDICAL CANNABIS BUSINESS PERMIT (MCBP) MODIFICATION APPLICATION” (the “CBP Transfer Application”), which application appears to show Berenice Cristerna (“Ms. Cristerna”) seeking to modify CBP 19637 by removing Mr. Orellana as an owner of that permit, and by transferring that permit, from BB&Y, an entity that Mr. Orellana owns 40% of, to Dynasty, an entity in which Mr. Orellana has no ownerships interest. The CBP Transfer Application appears to have been signed, on July 17, 2021, by Ms.

Cristerna, as both the landlord and the applicant.

The transferability of a Cannabis Business Permits (a “CBP”) in Bellflower is controlled by Bellflower Municipal Code section 14.08.070, which is entitled: 14.08.070 Prohibition on Transfer of Cannabis Business Permits—Exception for Conversions.

Section 14.08.070(B) prohibits both the transfer of ownership or control of a cannabis business, and the transfer of any cannabis business permit, through the following language:
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“No person may transfer ownership or control of a cannabis business permit or transfer any cannabis business permit issued under this title. A cannabis business permittee has no right to sell or transfer a cannabis business permit to another party or to have the city consider whether it should authorize the transfer of a cannabis business permit to another party. Any attempt to transfer ownership of a cannabis business or of a cannabis business permit will automatically render the cannabis business permit void.”
Section 14.08.070(B) also sets forth the requirements for an application for the transfer of a CBP Transfer Application. As Bellflower’s own transfer application form states:
“IF THE APPLICATION SEEKS AN OWNERSHIP CHANGE THE APPLICATION MUST ALSO INCLUDE:
• EVIDENCE DEMONSTRATING THERE HAS BEEN NO CHANGE IN OWNERSHIP SINCE THE ORIGINATION DATE.
• EVIDENCE DEMONSTRATING THAT THE OWNERSHIP WILL BE SUBSTANTIALLY THE SAME AS ON THE ORIGINATION DATE. SUCH EVIDENCE MAY INCLUDE (IF

AVAILABLE FROM THE ORIGINATION DATE) A COMPARISON OF OWNERSHIP

INTEREST ON THE ORIGINATION DATE AND APPLICATION FOR A MODIFICATION

CBP AND MUST INCLUDE AN AFFIDAVIT SIGNED UNDER PENALTY OF PERJURY

PURSUANT TO THE LAWS OF THE STATE OF CALIFORNIA THAT THE PERMITTEE'S

KEY INDIVIDUALS WILL CONTINUE IN THE SAME POSITION OR IN A POSITION WITH GREATER RESPONSIBILITY WITH THE PERMITTEE.
•AN EXPLANATION REGARDING THE REASONS FOR THE REQUEST TO CHANGE OWNERSHIP.
•IF THE CHANGE IN OWNERSHIP WILL ADD PERSONS NOT PREVIOUSLY

CONSIDERED BY THE CITY COUNCIL ON THE ORIGINATION DATE, THOSE PERSONS

MUST MEET THE MINIMUM QUALIFICATIONS REQUIRED BY THE CANNABIS REGULATIONS WHICH REPLICATED HERE: A PERSON OF GOOD CHARACTER, HONESTY, AND INTEGRITY; A PERSON WHOSE BACKGROUND, REPUTATION AND

ASSOCIATIONS WILL NOT RESULT IN ADVERSE PUBLICITY FOR THE CITY OF BELLFLOWER OR ITS ECONOMIC DEVELOPMENT; AND HAS ADEQUATE BUSINESS

COMPETENCE AND PRACTICAL EXPERIENCE FOR OPERATING THE CANNABIS RELATED BUSINESS.”
Here, the CBP Transfer Application, which was apparently submitted by Ms. Cristerna, does not comply with section 14.08.070(B), and it also fails to comply with the all-caps directives provided, by Bellflower, in the application itself.

Section 14.08.070(B) expressly prohibits the transfer of ownership and control in a CBP. Yet, in the CBP Transfer Application, Ms. Cristerna sought to transfer Mr. Orellana’s 40% ownership in CBP 19637 to herself, and to then transfer CBP 19637 to a new entity that she, alone, owns. Although Bellflower evidently -12-

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previously approved of that transfer1, that was an outrageous violation of the clear and express terms of section 14.08.070(B), which, under the terms of section 14.08.070(B), means that CBP 19637 is now void.

Further, Ms. Cristerna did not include, in the CBP Transfer Application, any evidence that there had been “no change in ownership since the origination date” of CBP 19637, even though that is required by the transfer application form. Apparently, that was because Ms. Cristerna was, in fact, seeking to change 40% of the ownership, and, thus, she could not provide the required evidence.

Ms. Cristerna also failed to present any “evidence that the ownership will be substantially the same as on the origination date,” as is also required by the transfer application form. Apparently, that was because Ms.

Cristerna was, in fact, seeking to substantially change the ownership, quantified as 40%, and, thus, she could not provide the required evidence.

In addition, there is no evidence that Ms. Cristerna executed the required affidavit, signed under penalty of perjury, affirming that “key individuals will continue in the same position or in a position with greater responsibility with the permittee”. Instead, in the CBP Transfer Application, Ms. Cristerna offers only this coded, and troubling, justification for failing to submit the required affidavit, signed under penalty of perjury:
“N/A. The City of Bellflower has already agreed to execute the change in ownership to remove Rene Orellana from the license.”
This statement poses serious questions for Bellflower, as it apparently agreed, outside of any cognizable process, without notice, and in direct contravention of the express and unequivocal provisions of its own municipal code, to execute a change in ownership by transferring 40% of the equity ownership in CBP 19637 by removing Mr. Orellana from that permit, and by then transferring that permit to Dynasty.

No License Issued by Department of Cannabis Control to Dynasty Alliance Grow Bellflower Municipal Code section 14.08.060 controls the renewals of cannabis business permits in Bellflower. It states, in relevant part:
“D. The renewal application must be denied if any of the following circumstances exists:

1. The renewal application is filed less than 60 calendar days before expiration of the permit.

2. The cannabis business permit is suspended at the time of the application.

3. The cannabis business has not been in regular and continuous operation in the four months before the renewal application.

4. The cannabis business failed to conform to the requirements of this title or any regulations adopted pursuant to this title.
1 Insofar as we are aware, Bellflower never attempted to notify Mr. Orellana of, much less obtain his permission for, the purported transfer of his 40% ownership in CBP 19637
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5. The permittee does not possess a valid license from the State of California, if required by law.” (emphasis added)
As far as we have been able to determine, Dynasty does not have a license from the Department of Cannabis Control (See DCC License Search Results attached hereto as Exhibit B). Thus, under Bellflower Municipal Code section 14.08.060(D)(5), Dynasty cannot have any license renewed.

Presumably, Dynasty is not currently cultivating cannabis at the BB&Y facility located at 8832 Ramona Street, Bellflower, CA 90706. If that is true, then, under section 14.08.060(D)(3), Dynasty cannot have a CBP renewed. Further, if Dynasty is currently cultivating cannabis, then it would: (1) not be eligible for a CBP renewal, under section 14.08.060(D)(4); (2) be in violation of numerous statutes and regulations; and (3) be in violation of numerous criminal laws.

As you can see, for several reasons, the renewal application for Dynasty must be denied under Bellflower Municipal Code section 14.08.060(D).

Public Records Act Requests
On December 10, 2021, this firm submitted a request, to Bellflower, under the California Public Records Act, which request seeks information related to CBP 19637 (the “Request,” attached hereto as Exhibit C).

On December 14, 2021, we received a written response (the “Response,” attached hereto as Exhibit D), from you. In broad terms, the Response essentially contends that the Request is overbroad and unduly burdensome. In support of that contention, you provided boilerplate authorities.

But, as you are undoubtedly aware, the California Public Records Act (the “CRPA”) is conceived broadly to require full agency disclosure, unless the information is statutorily exempted. (Los Angeles Unified School Dist. v. Superior Court (2007) 151 Cal. App. 4th 759; see also Bernardi v. County of Monterey (2008) 167 Cal. App. 4th 1379 (California Public Records Act embodies strong policy in favor of disclosure of public records)). All public records are subject to disclosure, unless the California Public Records Act expressly provides otherwise. (See American Civil Liberties Union of Northern Cal. v. Superior Court (2011) 202 Cal. App. 4th 55.)
An entity attempting to deny access to public records has the burden of proof, and it must justify withholding any record by demonstrating that, on the facts of the particular case, the public interest served by not disclosing the record clearly outweighs the public interest served by the disclosure of the record. (Los Angeles Unified School Dist. V. Superior Court (2007)151 Cal. App. 4th 759; see also Golden Door Properties, LLC v. Superior Court of San Diego County (2020) 53 Cal. App. 5th 733 (declaration, by county’s deputy director of project planning, in support of county’s refusal to disclose documents related to project, was merely conclusory, and, thus, was inadequate to establish that the documents were subject to the preliminary draft exemption and the deliberative process privilege, where deputy director only discussed the 1,900 documents as a single whole, rather than analyzing each document individually, where deputy director did not explain the role of individual documents in the deliberative process for project approval or why disclosure of each document would be harmful, and where deputy director only recited policy-based justifications for nondisclosure in general)). -14-

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In the Response, you claim, without any analysis: “[The Request is] overbroad and unduly burdensome and would impose an unreasonable and substantial burden on City resources and personnel to retrieve and review documents that may be responsive and to make determinations as to segregating disclosable and undisclosable material. Accordingly, the public interest in efficiency of government and limitation of its costs favors the City not processing your request ‘as is.’” (Response Pg. 1, Paragraph 3).

You are apparently claiming that the public interest exemption under the CPRA justifies Bellflower’s nondisclosure. This is nonsense. The public interest exemption under the CPRA, which allows a public agency to justify withholding any record by demonstrating that the public interest served by not disclosing the record clearly outweighs the public interest served by disclosure of the record, contemplates a case-by- case balancing process, and the proponent of nondisclosure must demonstrate a clear overbalance on the side of confidentiality. (Voice of San Diego v. Superior Court of San Diego County (2021) 66 Cal.App.5th 669.) In your response, you did not even attempt to balance the public interest served by not disclosing the records against the public interest served by disclosing the records. Perhaps that is because there is no public interest served by not disclosing the records.

Instead, the Response, which appears to be, in large part, a template cut and pasted from other letters you wrote in other matters, is under the circumstances here, preposterous. As stated above, there are serious issues related to Bellflower’s conduct in this matter, including: (a) Bellflower’s failure to follow its own municipal code; (b) the conduct of Bellflower officers and employees in transferring CBP 19637, resulting CBP 19637 being transferred contrary to the law; and (c) the transfer of CBP 19637 to an entity without a license issued by the DCC. Your mere assertion of the catch-all public interest exemption as a justification to withhold disclosure here is without merit, and it will not survive scrutiny.

Indeed, there is a strong public interest in disclosing the records sought. Mr. Orellana, and the general public, have the right to know whether Bellflower is following its own ordinances or whether those ordinances are being flagrantly disregarded, as appears to be the case here. Moreover, Mr. Orellana, and the general public, have the right to disclosure of records which will shed light on whether Bellflower is violating its ordinances in order to favor specific individuals who have personal relationships with Bellflower officials. Perhaps that is not the case, and perhaps Bellflower can explain its conduct. But, this Request is not, as you sarcastically claim, a “cathartic” fishing expedition. Beyond the acute and significant damages that Mr. Orellana has suffered due to Bellflower’s actions in this matter, this matter is also a matter of public integrity.

Instead of refusing to process the Request “as is,” Bellflower should, if reasonably required to comply with the Request, seek additional time to comply. That is what the weight of authorities mandates. (See Govt.

Code, § 6253; Becerra v. Superior Court (2020) 44 Cal. App. 5th 897 (Department of Justice failed to establish that public interest served by nondisclosure of requested records in its possession related to state and local police officers’ use of force, discharge of firearms, sexual assault, and dishonesty clearly outweighed public interest in police accountability served by disclosure under the CPRA, and, thus, records could not be withheld pursuant to the CPRA catchall exemption, where the Department did not provide a meaningful, detailed estimate of the burden and cost of production, the Department could seek an extension -15-

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of time for disclosure, consultation with other agencies, and redaction, and the Legislature anticipated disclosure would be costly).

If Bellflower wishes to amend its Response, and if it requests additional time to process the Request, Mr.

Orellana may be amenable. Alternatively, if Bellflower continues its evident attempt to stonewall the disclosure of the requested records, which are clearly material, and in which the public’s interest in disclosure is obvious, then we will have no reasonable alternative but to view that position as consciousness of guilt, and to proceed under the assumption that Bellflower is a malign actor complicit in the transfer of CBP 19637 outside of the bounds of the law.

This letter is not intended to be a complete statement of the facts or of the law relevant to this matter.

Additionally, nothing contained herein shall constitute an admission of any kind whatsoever, nor shall it constitute a waiver of any rights or remedies at law, in equity, or otherwise, all of which are hereby expressly reserved.

I look forward to receiving your response as soon as reasonably possible.

Regards,
_____________________________
Joseph Rogoway, Esq.

Attorney for Rene Orellana
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EXHIBIT A
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Re: BF - BB&Y Logistics, LLC - Dynasty Alliance Grow, Inc- Invalid Cannabis Business Permit Transfer and Demand for Return of Permit to BB&Y
---------- Forwarded message ---------
From: Karl Berger
Date: Thu, Dec 9, 2021 at 11:16 AM
Subject: BF - BB&Y Logistics, LLC - Dynasty Alliance Grow, Inc- Invalid Cannabis Business Permit Transfer and Demand for Return of Permit to BB&Y To: [email protected]
Cc: Jeff Stewart
Mr. Rogoway –
Your correspondence was forwarded to my attention. Please direct any further correspondence from your office to my attention.

The public hearing is currently in process. Your client – or you – may certainly provide public testimony regarding the matter. You may access the meeting here:

By logging into Zoom at the following link https://us02web.zoom.us/j/82807536352 (Meeting ID number: 828 0753 6352 The approval of the modification occurred four months ago pursuant to the attached application.

This appears to be a civil dispute that does not involve the City. Indeed, the City is not a party to any litigation regarding this matter. Absent a specific order from the court for the City Council to suspend consideration of the renewal application, there is no legal basis to do so.

The City Council may, of course, postpone any decision regarding the matter, but is not required to. Accordingly, you are encouraged to have your client participate in the public hearing which, again, is currently being conducted.

Thank you.

Karl H. Berger
2600 W. Olive Avenue, Suite 500
Burbank, California 91505
818-333-5120 Office
661-644-5476 Mobile
[email protected]
www.hensleylawgroup.com
Begin forwarded message:

From: Joe Rogoway
Date: December 9, 2021 at 10:24:05 AM PST
To: Dan Koops , Sonny Santa Ines , Victor Sanchez , "Raymond Y. Hamada" , Raymond Dunton
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Cc: Travis Sais , David Carman , Bird Orellana
Subject: BB&Y Logistics, LLC - Dynasty Alliance Grow, Inc- Invalid Cannabis Business Permit Transfer and Demand for Return of Permit to BB&Y Dear Mayor Koops and Members of the Bellflower City Council, I represent Rene 'Bird' Orellana in his lawsuit against Berenice Cristerna concerning BB&Y Logistics LLC and the commercial cultivation facility located at 8832 Ramona Street, Bellflower, CA 90706. I have attached a copy of this lawsuit for your review.

It has come to my attention that the City of Bellflower allowed the Cannabis Business Permit previously issued to BB&Y to be transferred to Dynasty Alliance Grow and that it is on the Council's agenda this morning to renew the improperly transferred Cannabis Business Permit . As one a rightful owner of the CBP, Mr.

Orellana should have been provided notice of the requested transfer and been provided an opportunity to object or to approve that transfer; even assuming that such transfer was permitted pursuant to the City's ordinance, which we believe it is not.

We demand that the City of Bellflower denies Dynasty Alliance Grow, Inc.'s request today for a renewal of this improperly transferred CBP and that the City restores the CBP to the correct entity, BB&Y Logistics, LLC. Failure to do so will be perilous for the City of Bellflower.

Please confirm receipt of this correspondence and confirm that the demands contained herein will be met.

Very Truly Yours,
Joe Rogoway
--
P (707) 526-0420
E [email protected]
W www.rogowaylaw.com

JOE ROGOWAY
Managing Partner, Rogoway Law Group
A 115 4th St., Second Flr, Ste. B | Santa Rosa, CA 95401 LOS ANGELES | SAN FRANCISCO | SANTA ROSA
The information contained in this correspondence is confidential and it may be subject to attorney-client privilege and work-product restrictions. If you are not the intended recipient, do not read, copy, distribute, or use any information contained in this correspondence or its attachments. If this correspondence is delivered or received in error, please notify my office by reply or phone (707) 526-0420 and delete and destroy all copies. California Evidence Code Section 956 Notice: This correspondence and legal services provided by Rogoway Law Group, P.C., apply only to medicinal or adult-use cannabis activity, in each case conducted in compliance with California law and applicable local standards, requirements and regulations. In conflict with California law, Federal law prohibits the production, possession, sale and transportation of cannabis. Nothing in this correspondence or accompanying legal services is intended to assist with violation of any applicable law. Thank you for your anticipated cooperation. --
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P (707) 526-0420
E [email protected]
W www.rogowaylaw.com

JOE ROGOWAY
Managing Partner, Rogoway Law Group
A 115 4th St., Second Flr, Ste. B | Santa Rosa, CA
95401

LOS ANGELES | SAN FRANCISCO | SANTA
ROSA
The information contained in this correspondence is confidential and it may be subject to attorney-client privilege and work-product restrictions. If you are not the intended recipient, do not read, copy, distribute, or use any information contained in this correspondence or its attachments. If this correspondence is delivered or received in error, please notify my office by reply or phone (707) 526-0420 and delete and destroy all copies. California Evidence Code Section 956 Notice: This correspondence and legal services provided by Rogoway Law Group, P.C., apply only to medicinal or adult-use cannabis activity, in each case conducted in compliance with California law and applicable local standards, requirements and regulations. In conflict with California law, Federal law prohibits the production, possession, sale and transportation of cannabis. Nothing in this correspondence or accompanying legal services is intended to assist with violation of any applicable law. Thank you for your anticipated cooperation.

CBP Modification 2021 - BB&Y.pdf
7402K
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Blair Gue
BF - Response to PRA Request
Karl Berger Tue, Dec 14, 2021 at 4:47 PM
To: "[email protected]"
Cc: "[email protected]" , "[email protected]" , CAOffice

Please see attached. A hardcopy will follow.

Karl H. Berger
2600 W. Olive Avenue, Suite 500
Burbank, California 91505
818-333-5120 Office
661-644-5476 Mobile
[email protected]
www.hensleylawgroup.com
BF - PRA 21-498 response 12142021 v2.pdf
398K
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EXHIBIT B
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EXHIBIT C
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PUBLIC RECORDS ACT REQUEST FORM
City of Bellflower – City Clerk’s Office
16600 Civic Center Drive, Bellflower, California 90706 Email: [email protected] / Phone: (562) 804-1424, Ext. 2271 Campaign Documents – Political Reform Act –GC81008: Public records; inspection and reproduction; time; charges “(a) Every report and statement filed pursuant to this title is a public record open for public inspection and reproduction during regular business hours, commencing as soon as practicable, but in any event not later than the second business day following the day on which it was received. No conditions whatsoever shall be imposed upon persons desiring to inspect or reproduce reports and statements filed under this title, nor shall any information or identification be required from such persons. Copies shall be provided at a charge not to exceed ten cents ($0.10) per page. In addition, the filing officer may charge a retrieval fee not to exceed five dollars ($5) per request for copies of reports and statements which are five or more years old. A request for more than one report or statement at the same time shall be considered a single request.” For Internal Use Only
Tracking Due Dates Distribution
___ Logged
___ Distributed
___ Calendared
10 Day: ____________
14 Day: ____________
X CA ____ ED ____ PL ____ P&R
X CC ____ FIN ____ B&S ____ PS
X CM ____ HR ____ CE ____ PW
Revised 06-08-17
________________________________________ _______________________________________ Requestor’s Name (Print) Company or Organization (if applicable) ________________________________________ _______________________________________ Address Phone (Home/Business/Mobile)
________________________________________ _______________________________________ Email Address
________________________________________
Requestor’s Signature
I am requesting to: __ Review __ Obtain a copy (Pick one: __ Pick-up __ Mail __ Email) Document Type: __ Building __ Contract __ Minutes __ Ordinance __ Resolution __ Other Permits
Please provide a detailed description of the public record(s) requested, i.e., name of document, date range, property address, and/or other applicable details that will assist with identifying the record.
___________________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ YOUR REQUEST WILL BE PROCESSED IN COMPLIANCE WITH THE PUBLIC RECORDS ACT, pursuant to California Government Code Section 6250, which, in part, provides that upon receipt of a request for public records, the City has ten (10) calendar days to notify the requestor of its determination as to whether there are public records responsive to the request and, if so, when those records will be available.

Basic Fees: Campaign Documents per Political Reform Act GC81008 – 10 cents per page; all other records 25 cents per page; $5.00 per CD/DVD; and postage costs, if applicable. Other applicable fees pursuant to the Comprehensive Fee Schedule.

PRA No. ____________
Received: / /___
X X
X

PLEASE SEE ATTACHED
Blair Gue Rogoway Law Group
115 4th Street, 2nd Floor - Suite B
Santa Rosa, CA 95401
707-526-0420
[email protected]
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Public Records Act Request Attachment
Date Range for all Requests: January 1, 2018 – December 10, 2021

1. I hereby request copies of any and all application documents, records, permits, requests, filings, and other documentation received by, or generated, by the City of Bellflower in relation to the commercial cannabis business operating at 8832 Ramona Street, Bellflower, CA 90706.

2. I hereby request copies of any and all correspondence to and from any and all City of Bellflower officials related to the commercial cannabis cultivation business operating at 8832 Ramona Street, Bellflower, CA 90706. For avoidance of doubt, this request includes, but is not limited to, correspondence received from, or sent to, any of the following individuals:
a.Berenice Cristerna
b. Yoan Leon
c.Rene Orellana
d. Allison Margolin
e.Raza Lawrence

3. I hereby request copies of any and all communications received by any member of the Bellflower City Council, by the City of Bellflower’s planning department, by the City of Bellflower’s Manager, and/or by the City of Bellflower’s Manager’s office, which communications were from any of the following entities or people:
f. BB&Y Logistics, LLC
g. Dynasty Alliance Grow, Inc.
h. Berenice Cristerna
i.Yoan Leon
j.Rene Orellana
k. Allison Margolin
l.Raza Lawrence
For avoidance of doubt, this request includes, but is not limited to, any and all text messages, emails, written notes, and all other forms of communication.

4. I hereby request copies of any and all communications sent from any member of the Bellflower City Council, from the City of Bellflower’s planning department, from the City of Bellflower’s Manager, and/or from the City of Bellflower’s Manager’s office, which communications were to any of the following entities or people:
a.BB&Y Logistics, LLC
b. Dynasty Alliance Grow, Inc.
c.Berenice Cristerna
d. Yoan Leon
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e.Rene Orellana
f. Allison Margolin
g. Raza Lawrence
For avoidance of doubt, this request includes, but is not limited to, any and all text messages, emails, written notes, and all other forms of communication.

5. I hereby request copies of any and all records, documents, communications, paperwork, forms, or other items pertaining to BB&Y Logistics, LLC’s Cannabis Business Permit issued by the City of Bellflower, or pertaining to any request to modify or transfer that permit. For avoidance of doubt, this request includes, but is not limited to, any communications between a City of Bellflower official and anyone else, which communications constitute, evidence, or pertain to that permit, or to a request or an application to modify or transfer that permit.

6.I hereby request copies of any and all records, communications, documents, paperwork, forms, or other items that cite, or that otherwise reference, the City of Bellflower's cannabis business permit transfer ordinance provisions (See Municipal Code Section 14.08.070(B)).

7. I hereby request copies of any and all records, communications, forms, or other documents in the possession of, sent by, or received by any City of Bellflower official, which records, communications, forms, or other documents include any reference to any of the following:
a.Bo's Cigar Lounge or “Bo’s”
b. 16515 Bellflower Blvd; or
c.(562) 303-9812

8. I hereby request copies of any and all documents constituting or evidencing entries, references, or items, on the calendars or appointment books of each of the City of Bellflower’s City Council members, on the calendars or appointment books of the City Manager of the City of Bellflower, and on the calendars or appointment books of any employee of the City of Bellflower involved in the City of Bellflower’s cannabis program, which entries, references, or items relate to any of the following:
a.Berenice Cristerna
b. Yoan Leon
c.Rene Orellana
d. Allison Margolin
e.Raza Lawrence
f. BB&Y Logistics, LLC
g. Dynasty Alliance Grow, Inc.
h. Bo’s Cigar Lounge or “Bo’s”
i.16515 Bellflower Blvd.
j.(562) 303-9812
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9.I hereby request copies of any and all communications, records, notices, documents, or other materials from the Federal Bureau of Investigation, or from the California Fair Political Practices Commission, or from any other enforcement or regulatory agency, which communications, records, notices, documents, or other materials concern, or relate to, actual or alleged public corruption, or actual or alleged illegal conduct, on the part of the City of Bellflower, or on the part of any employee or representative of the City of Bellflower.
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EXHIBIT D
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BURBANK OFFICE
2600 W. OLIVE AVENUE
SUITE 500
BURBANK, CA 91505
______________

TORRANCE OFFICE
3655 TORRANCE BOULEVARD
SUITE 300
TORRANCE, CA 90503

SAN DIEGO OFFICE
3850 LA JOLLA VILLAGE DRIVE
LA JOLLA, CA 92037
WRITER'S DIRECT CONTACT:

BURBANK OFFICE
[email protected]
661.644.5476
WWW.HENSLEYLAWGROUP.COM
December 14, 2021
VIA EMAIL AND U.S. MAIL
Ms. Blair Gue, Esq.

Rogoway Law Group
115 4th Street, 2nd Floor, Suite B
Santa Rosa, California 96401
[email protected]
Re: California Public Records Act Request dated December 10, 2021 Dear Ms. Gue:

This office serves as City Attorney for the City of Bellflower. We were forwarded a copy of your December 10, 20211 request for a voluminous amount of records under the California Public Records Act (“CPRA”). Thank you for your correspondence. While much of your request may be construed as an attempt to burden valuable and constrained City resources to satisfy an unreasonable “fishing expedition,” some of your request does appear to request copies of records pursuant to the CPRA.

Note that the CPRA requires the City to disclose “writings” that it keeps in the ordinary course of business (Gov’t. Code § 6252).2 However, it does not require the City to generate new records when responding to a request for documents (Rosenthal v. Hansen (1973) 34 Cal. App. 3d 754). Moreover, the CPRA does not require the City to comply with requests for documents that are unduly burdensome (State Bd. of Equalization v. Super. Ct. (1992) 10 Cal. App. 4th 1177).

Your request is obviously overbroad and unduly burdensome and would impose an unreasonable and substantial burden on City resources and personnel to retrieve and review documents that may be responsive to your request and to make determinations as to segregating disclosable and undisclosable material. Accordingly, the public interest in the efficiency of government and limitation of its costs favors the City not processing your request “as is” (§ 6255; see, e.g., Cal. First Amendment Coalition v. Sup. Court (1998) 67 Cal.App.4th 159; North County 1 The City received the request as of December 13, 2021 as City Hall was closed on December 10, 2021. 2 Further references to an undesignated code are to the Government Code. -30-

Ms. Blair Gue, Esq.

Bellflower CPRA Response
December 14, 2021

Page 2 ends

Parents Organization v. Department of Education (1994) 23 Cal.App.4th 144; State Board v. Sup.

Court (1992) 10 Cal.App.4th 1177).

The CPRA also exempts certain types of documents from disclosure (see generally §§ 6254, 6255). Accordingly, assuming that you submit a revised request, the City will not release the following types of documents:
•The City generally need not disclose preliminary drafts, notes, or interagency or intra- agency memoranda that are not retained by the City in the ordinary course of business.

Accordingly, unless such writings are on file with the City, these types of documents will not be provided (see § 6254(a));
•Section 6254(k) specifically exempts records that are protected under federal and state law. Accordingly, documents available for disclosure are those not protected by attorney- client, work-product, or other, privilege (see § 6276.04); •Similarly, records prepared in anticipation for litigation to which the City is a party will not be disclosed (§ 6254(b)); and
•The deliberative process privilege exempts disclosure of documents where public discussion would interfere with staff attempts to make candid and objective recommendations and the City’s perceived needs, rather than public opinion. (See Times Mirror Company v. Sup. Ct. (1991) 53 Cal.3d 1325; Cal. 1st Amendment Coalition v.

Super. Ct. (1998) 67 Cal.App.4th 159; Wilson v. Super. Ct. (1996) 51 Cal.App.4th 1136).

Accordingly, if the public interest in nondisclosure of certain records outweighs your private interests in disclosure, as is the case with your request for entries on calendars or appointment books, for example, those records will not be released.

The City determined that your request does seek certain disclosable records in the City’s possession. You may access such records regarding cannabis licensing on the City’s website at:
https://www.bellflower.org/government/city_manager/cannabis_establishment.php . Similarly, you may also access an archive of all cannabis-related agenda materials, including agendas, staff reports, resolutions, and ordinances are available through the City’s website at:
https://archive.bellflower.org/WebLink/Browse.aspx?dbid=0 . Materials that you can independently retrieve from the City’s website will not be separately provided to you as this additional effort would be unduly burdensome to the City as an unnecessary expenditure of public resources.

Regarding your request for correspondence and communications, please provide additional clarification on the nature and specifics of such records you seek. This will assist staff in identifying potentially responsive and disclosable records. The City is not required to engage in guesswork in order to respond to a purported CPRA request. -31-

Ms. Blair Gue, Esq.

Bellflower CPRA Response
December 14, 2021

Page 3 ends

For the applicable timeframe, keep in mind that California law generally requires the City to maintain such records for two years. The City’s records retention schedule may have caused records before approximately December 2019 to be destroyed.

Should the City receive a clarification of your request, it may produce disclosable records pursuant to § 6253(b). These may be provided via an electronic link for download. Should public records, however, only be available via hardcopy, you will be required to submit a deposit with the City for photocopy charges. If you wish to review documents in person, then you will be required to make an appointment with the City Clerk’s office so that the documents can be retrieved and provided to you in a secured room. Note that you will be required to adhere to the City’s COVID-19 protocols should you seek access to City Hall.

Regarding No. 8 of your request: while I can certainly appreciate the cathartic exercise of engaging in such hyperbole, your implications are unprofessional and unwelcome. The City does not have any such disclosable records as none exist. If you believe that any public official engaged in actions that might – whether under statute or common law – be viewed as a conflict of interest or illegal behavior, then I welcome you providing me facts supporting such a notion. I am not aware of any.

Any subsequent inquiry regarding this matter must be made in writing to my attention.

Very truly yours,
Karl H. Berger
City Attorney
c: Mayor, Mayor pro tem, City Councilmembers
Jeff Stewart, City Manager
Mayra Ochiqui, City Clerk
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14-A

TO: Honorable Mayor and Members of the City Council

ATTENTION: Jeffrey L. Stewart, City Manager

FROM: Tae Rhee, Finance Director/City Treasurer

SUBJECT: Consideration and possible action to receive and file Warrant Register No. 22-081, dated February 14, 2022.

DATE: February 14, 2022

EXECUTIVE SUMMARY

Section X.B of the Budget, Financial and Administrative Policies stipulates the City’s process in executing warrants for the payment of goods and services, as well as the requirement to make each warrant register a matter of public record by placing it on the City Council Agenda as a Consent Calendar item.

RECOMMENDATION

1) Receive and file Warrant Register No. 22-081; or

2) Alternatively, discuss and take other action related to this item.

FISCAL IMPACT

$4,169,967.67 in expenditures.

ATTACHMENT

Warrant Register No. 22-081 .......................................................................................... 2

Fund No.CITY OF BELLFLOWER:
010 General Fund 2,555,334.64$
011 General Fund Projects 370,202.50
050 Supplemental Law Enforcement Services Fund (State)5,065.88 090 Agency Fund/Refundable Deposits - Private Projects 65,399.14 100 Proposition A Fund - Transportation 42,826.53
125 Measure R Fund - Transportation / Streets 22,560.20 135 Proposition C Fund - Transportation / Streets 88,428.33 140 State Gas Tax Fund - Streets 1,264.75
145 Road Maintanence and Rehabilitation Account (RMRA) Fund 19,456.00 31X Municipal Water System 6,568.00
320 Measure W Fund- Water 303.29
510 Economic Development Fund 1,520.00
530 Equipment Replacement Fund 2,452.92
540 GIS Update Fund 96.00
542 General Plan Zoning Ordinance Update Fund 2,131.25
600 Building and Safety Fund 88,992.32
710 Debt Service Fund - BFA 37,170.28
900 Community Development Block Grant Fund 8,856.27
910 HOME Fund 2,127.50
944 Parking District No. 1 Fund 201.58
974 Low and Moderate Income Housing Asset Fund 5,658.10 Total Accounts Payable 3,326,615.48
Payroll Check Payments (Pay Period Ending 01/14/22,01/28/22)456,526.94 Total Expenditures - City 3,783,142.42$
Fund No.SUCCESSOR AGENCY:
970 Redevelopment Obligation Retirement Fund 371,825.25$ 972 Successor Agency Administrative Fund 15,000.00
Total Expenditures/Transfers - Successor Agency 386,825.25$ COMBINED TOTAL - CITY AND SUCCESSOR AGENCY 4,169,967.67$

WARRANT REGISTER FUND SUMMARY

CITY OF BELLFLOWER
(Warrant Register No. 22-081, Dated February 14, 2022)
\\sharepoint\DavWWWRoot\sites\Finance\Shared Documents\Warrant Registers\Warrant Register Cover Page Template

REPORT.: 02/08/22 City of Bellflower PAGE: 001 RUN....: 02/08/22 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Deserie Stanley CTL.: BEL

....................................................................................................................................

VENDOR.: 20434 (20434 SOUTH SANTA FE AVENUE, LLC)

....................................................................................................................................

VENDOR.: ALL12 (ALL CITY MANAGEMENT SERVICES INC.)

....................................................................................................................................

VENDOR.: AME50 (AMERINATIONAL COMMUNITY SERVICES, LLC)

3.50 974 42054 7320 10/21 COLLECTIONS,LOSS MITIGATION,CREDIT REPORTING M21000695 XXXXXX 01/27/22 8.50 974 42054 7320 12/21 MONTHLY SERVICE/OPHS

3.50 974 42054 7320 12/21 COLLECTIONS,LOSS MITIGATION,CREDIT REPORTING ------------
Vendor's Total = 24.00
------------

....................................................................................................................................

VENDOR.: ASC01 (ASCENT ENVIRONMENTAL, INC.)

REPORT.: 02/08/22 City of Bellflower PAGE: 002 RUN....: 02/08/22 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Deserie Stanley CTL.: BEL

....................................................................................................................................

VENDOR.: ATL03 (ATLAS BACKFLOW)

....................................................................................................................................

VENDOR.: BAN11 (BANK OF THE WEST)

B220127H XXXXXX 01/27/22 5620.96 999 10790 2021 BOW ACCOUNT ANALYSIS ACTIVITY FEE ------------
Vendor's Total = 20620.96
------------

....................................................................................................................................

VENDOR.: BEL11 (BELLFLOWER HOME GARDEN WATER COMPANY)

....................................................................................................................................

VENDOR.: BIS01 (BISHOP COMPANY)

REPORT.: 02/08/22 City of Bellflower PAGE: 003 RUN....: 02/08/22 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Deserie Stanley CTL.: BEL

....................................................................................................................................

VENDOR.: BLU01 (BLUE DIAMOND MATERIALS)

....................................................................................................................................

VENDOR.: BNY01 (THE BANK OF NEW YORK MELLON)

....................................................................................................................................

VENDOR.: BSN01 (VARSITY BRANDS HOLDING CO., INC.)

....................................................................................................................................

VENDOR.: BUT03 (BUTLER CHEMICALS, INC.)

....................................................................................................................................

VENDOR.: CAL63 (CALIFORNIA LANDSCAPE & DESIGN, INC.)

REPORT.: 02/08/22 City of Bellflower PAGE: 004 RUN....: 02/08/22 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Deserie Stanley CTL.: BEL

....................................................................................................................................

VENDOR.: CAL63 (CALIFORNIA LANDSCAPE & DESIGN, INC.) ..Continue..

....................................................................................................................................

VENDOR.: CAL84 (CALPERS-FISCAL SERVICES DIVISION)

....................................................................................................................................

VENDOR.: CAL86 (CALIFORNIA BUILDING STANDARDS COMMISSION)

....................................................................................................................................

VENDOR.: CAL99 (CALIFORNIA LOTBOOK INC.)

....................................................................................................................................

VENDOR.: CAP11 (CAPITAL ONE PUBLIC FUNDING)

REPORT.: 02/08/22 City of Bellflower PAGE: 005 RUN....: 02/08/22 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Deserie Stanley CTL.: BEL

....................................................................................................................................

VENDOR.: CAP11 (CAPITAL ONE PUBLIC FUNDING) ..Continue..

....................................................................................................................................

VENDOR.: CAS09 (CASHIER-CA DEPT. OF FOOD AND AGRICULTURE)

....................................................................................................................................

VENDOR.: CIT25 (CITY NET)

....................................................................................................................................

VENDOR.: COL16 (COLANTUONO, HIGHSMITH & WHATLEY, PC)

REPORT.: 02/08/22 City of Bellflower PAGE: 006 RUN....: 02/08/22 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Deserie Stanley CTL.: BEL

....................................................................................................................................

VENDOR.: COM46 (COMPLETE OFFICE OF CALIFORNIA, INC.)

....................................................................................................................................

VENDOR.: DEP13 (DEPARTMENT OF CONSERVATION)

....................................................................................................................................

VENDOR.: DIG04 (DIGITAL DOLPHIN SUPPLIES)

....................................................................................................................................

VENDOR.: DUA02 (DUANE MORITA)

....................................................................................................................................

VENDOR.: EMP05 (EMPLOYMENT DEVELOPMENT DEPARTMENT)

REPORT.: 02/08/22 City of Bellflower PAGE: 007 RUN....: 02/08/22 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Deserie Stanley CTL.: BEL

....................................................................................................................................

VENDOR.: EMP06 (EMPIRE TRANSPORTATION, INC.)

....................................................................................................................................

VENDOR.: FAI01 (FAIR HOUSING FOUNDATION)

....................................................................................................................................

VENDOR.: FAR07 (FARELLA BRAUN & MARTEL LLP)

....................................................................................................................................

VENDOR.: FER05 (FERGUSON ENTERPRISES, LLC)

REPORT.: 02/08/22 City of Bellflower PAGE: 008 RUN....: 02/08/22 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Deserie Stanley CTL.: BEL

....................................................................................................................................

VENDOR.: FIR15 (FIRST VEHICLE SERVICES)

....................................................................................................................................

VENDOR.: FRO07 (FRONTIER COMMUNICATIONS)

....................................................................................................................................

VENDOR.: GAR06 (ANDREA B. CALIP TRUST)

....................................................................................................................................

VENDOR.: GLA01 (GLASBY MAINTENANCE SUPPLY)

72.08 010 46020 3900 CLEANING SUPPLIES
320765A XXXXXX 01/27/22 366.77 010 46011 3900 CLEANING SUPPLIES 366.77 010 46013 3900 CLEANING SUPPLIES

REPORT.: 02/08/22 City of Bellflower PAGE: 009 RUN....: 02/08/22 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Deserie Stanley CTL.: BEL

....................................................................................................................................

VENDOR.: GLA01 (GLASBY MAINTENANCE SUPPLY) ..Continue..

28.77 010 46029 3900 CLEANING SUPPLIES
320951A XXXXXX 01/27/22 593.83 010 46012 3900 CLEANING SUPPLIES 320973B XXXXXX 01/27/22 39.11 010 46010 3900 CLEANING SUPPLIES

4.35 010 46020 3900 CLEANING SUPPLIES
321016A XXXXXX 01/27/22 615.20 125 46000 3910 CLEANING SUPPLIES ------------
Vendor's Total = 3404.70
------------

....................................................................................................................................

VENDOR.: GRO03 (MARK LEE GROH)

....................................................................................................................................

VENDOR.: HAR08 (HARTZOG & CRABILL, INC)

....................................................................................................................................

VENDOR.: HOM01 (HOME DEPOT)

REPORT.: 02/08/22 City of Bellflower PAGE: 010 RUN....: 02/08/22 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Deserie Stanley CTL.: BEL

....................................................................................................................................

VENDOR.: HOM01 (HOME DEPOT) ..Continue..

54.14 010 46000 2000 12/21 PUBLIC WORKS SUPPLIES/HOME DEPOT 257.09 010 46000 8000 12/21 PUBLIC WORKS SUPPLIES/HOME DEPOT 979.93 010 46010 3900 12/21 PUBLIC WORKS SUPPLIES/HOME DEPOT 114.19 010 46011 3900 12/21 PUBLIC WORKS SUPPLIES/HOME DEPOT 400.45 010 46012 3900 12/21 PUBLIC WORKS SUPPLIES/HOME DEPOT

11.22 010 46013 3900 12/21 PUBLIC WORKS SUPPLIES/HOME DEPOT 113.84 010 46023 3900 12/21 PUBLIC WORKS SUPPLIES/HOME DEPOT 996.66 010 46300 3160 12/21 PUBLIC WORKS SUPPLIES/HOME DEPOT ------------
Vendor's Total = 4539.37
------------

....................................................................................................................................

VENDOR.: IMP03 (U.S. BANK CORPORATE PAYMENT SYSTEMS)

15.84 010 43100 3000 OFFICE SUPPLIES

79.00 010 41100 3105 REGISTRATION/SWANA WEBINAR

79.00 010 41100 3105 REGISTRATION/SWANA WEBINAR 1136.81 010 46013 3900 DRINKING FOUNTAIN/BAC

35.00 010 43000 3000 LEGAL AD/QUALIFIED BIDDERS LIST 128.00 010 46013 3900 PW SUPPLIES/BAC
594.25 010 43110 4105 UNIFORMS/CODE ENFORCEMENT 594.25 900 43110 4152 UNIFORMS/CODE ENFORCEMENT 906.21 010 43100 4100 OFFICE FURNITURE

15.00 010 43020 4100 REGISTRATION/APA WEBINAR

87.88 600 43100 4120 DELIVERY FEES/9740 PARK,9735 OAK PLANS

85.39 600 43100 4120 DELIVERY FEES/RETURNING PLANS 187.54 010 41100 1000 12/13/21 CITY COUNCIL MEETING EXPENSE

34.17 010 43100 4105 OFFICE SUPPLIES/CODE ENFORCEMENT

34.17 900 43100 4150 OFFICE SUPPLIES/CODE ENFORCEMENT

35.50 010 43100 1300 OFFICE SUPPLIES
-99.09 010 43100 1300 CREDIT: RETURNED USB DOCKING STATION

REPORT.: 02/08/22 City of Bellflower PAGE: 011 RUN....: 02/08/22 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Deserie Stanley CTL.: BEL

....................................................................................................................................

VENDOR.: IMP03 (U.S. BANK CORPORATE PAYMENT SYSTEMS) ..Continue..

30.00 010 43100 5000 12/2/21-12/2/22 ANNUAL PLAN/DIGITAL SURVEILLANCE 2231.92 530 18400 CHRISTMAS TREE/DOWNTOWN LIGHTING,DECO DEPT.1012 100.80 010 43090 5000 FACEBOOK PROMOTIONS/11/25/21-12/3/21

96.86 010 41311 1012 SPECIAL EVENT STORAGE SUPPLIES 2685.00 010 37050 BVC/FAMILY ASSISTANCE PROGRAM/CHRISTMAS 657.05 010 43100 5010 FACILTIY EQUIPMENT/CHAIR CART 203.11 010 43100 8000 INK CARTRIDGE/MAILING MACHINE

11.01 010 43100 1100 OFFICE SUPPLIES
254.96 010 41100 1000 CVS AIRFARE/CCCA LEG.TOUR 1/10-12/22 254.96 010 41100 1000 CRH AIRFARE/CCCA LEG.TOUR 1/10-12/22 207.96 010 41100 1100 AIRFARE/CCCA LEG.TOUR 1/10-12/22 625.00 010 41100 3000 REG/LCC 2022 EXPO/MONTEREY/3/23-25/22

30.86 010 43100 4000 OFFICE SUPPLIES/ADJ.LAPTOP STAND

50.00 010 43010 4000 12/21 ORGANIZATIONAL MANAGEMENT SOFTWARE 189.50 010 41100 4000 SUPPLIES/ICSC "HERE WE GO" 274.29 010 43100 4000 OFFICE SUPPLIES
1500.00 510 42054 4002 12/17/21-12/16/22 ArcGIS CREATOR,BUS.WEB SUBSCRIPT

87.64 010 41318 1012 SPECIAL EVENT SUPPLIES -6.66 010 20300 SALES TAX: SPECIAL EVENT SUPPLIES 1944.00 010 41311 1012 SPECIAL EVENT FENCING/TREE LIGHTING CEREMONY 392.14 010 37050 FAMILY ASSISTANCE PROG.SUPPLIES/HOLIDAY FOOD,TOY

59.00 010 41400 1012 SPECIAL EVENT ROUTING SYSTEM/HOLIDAY DECO CONTEST 2103.20 010 37050 FAMILY ASSISTANCE PROG.SUPPLIES/HOLIDAY FOOD,TOY 1508.71 010 37050 FAMILY ASSISTANCE PROGRAM SUPPLIES 104.85 010 41400 1012 SPECIAL EVENT EQUIPMENT 102.85 900 43100 5022 OFFICE SUPPLIES/VOLUNTEER CENTER

58.18 530 18400 CHRISTMAS TREE/DOWNTOWN LIGHTING,DECO DEPT.1012

70.00 010 43100 5000 CPRS AWARD PROGRAM 2021 APPLICATION

19.00 010 41302 1012 NOMINATION FORM PLATFORM/BRAVO AWARDS 2022 ------------
Vendor's Total = 22705.36
------------

....................................................................................................................................

VENDOR.: INT15 (MIKE CABRERA CORPORATION)

REPORT.: 02/08/22 City of Bellflower PAGE: 012 RUN....: 02/08/22 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Deserie Stanley CTL.: BEL

....................................................................................................................................

VENDOR.: IRS02 (INTERNAL REVENUE SERVICE)

....................................................................................................................................

VENDOR.: JHM01 (JHM SUPPLY, INC.)

....................................................................................................................................

VENDOR.: KJS01 (KJ SERVICES ENVIRONMENTAL CONSULTING)

....................................................................................................................................

VENDOR.: LOS01 (LOS ANGELES COUNTY SHERIFF'S DEPARTMENT)

REPORT.: 02/08/22 City of Bellflower PAGE: 013 RUN....: 02/08/22 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Deserie Stanley CTL.: BEL

....................................................................................................................................

VENDOR.: LOS01 (LOS ANGELES COUNTY SHERIFF'S DEPARTMENT) ..Continue..

---- WARRANT ----- --------------------------------------- DISTRIBUTION --------------------------------------- Invoice No Number Date Amount Paid G/L Account No Ctr Description ---------- ------ -------- ------------ -------------- --- -------------------------------------------------- 221306AL XXXXXX 01/27/22 24753.25 010 42173 2200 11/21 NO CALL MOTOR (X1) 81685.74 010 42153 2200 11/21 GENERAL LAW CARS (40-HOUR) (X3) 27228.58 010 42155 2200 11/21 TRAFFIC LAW CAR (40-HOUR) (X1) 404453.20 010 42152 2200 11/21 GENERAL LAW CARS (56-HOUR)X10.61 38120.00 135 42117 3600 11/21 TRANSIT OFFICER (56-HR),TRAFFIC (X1) 22576.83 010 42150 2200 11/21 SPECIAL ASSIGNMENT SERGEANT (X1)* 34102.66 010 42165 2200 11/21 NO RELIEF GRANT CARS (40-HR) (X2) 1550.00 050 47300 2150 11/21 ALPR W/INSTALLATION (X4) 982.94 050 47300 2150 11/21 MDC DATA & MAINTENANCE ONLY (X7) 114360.00 010 42154 2200 11/21 TRAFFIC LAW CARS (56-HOUR) (X3) 221453AL XXXXXX 01/27/22 671.16 010 42182 2200 11/21 LASD HELICOPTER SUPPORT 221466AL XXXXXX 01/27/22 10642.34 010 42164 2200 11/2-30/21 OT LAW ENFORCEMENT/CRIME SUPPRESSION 221467AL XXXXXX 01/27/22 22062.60 010 42164 2200 11/21 OT LAW ENFORCEMENT/TRAFFIC ENFORCEMENT 221577AL XXXXXX 01/27/22 123766.25 010 42130 2200 12/21 SPECIAL ASSIGNMENT OFFICERS (X5) 24753.25 010 42173 2200 12/21 NO CALL MOTOR (X1) 81685.74 010 42153 2200 12/21 GENERAL LAW CARS (40-HOUR)(X3) 27228.58 010 42155 2200 12/21 TRAFFIC LAW CARS (40-HOUR)(X1) 404453.20 010 42152 2200 12/21 GENERAL LAW CARS (56-HOUR)X10.61 114360.00 010 42154 2200 12/21 TRAFFIC LAW CARS (56-HOUR) (X3) 38120.00 135 42117 3600 12/21 TRANSIT OFFICER (56-HR),TRAFFIC (X1) 22576.83 010 42150 2200 12/21 SPECIAL ASSIGNMENT SERGEANT (X1)* 34102.66 010 42165 2200 12/21 NO RELIEF GRANT CARS (40-HR) (X2) 1550.00 050 47300 2150 12/21 ALPR W/INSTALLATION (X4) 982.94 050 47300 2150 12/21 MDC DATA & MAINTENANCE (X7) ------------
Vendor's Total = 1805288.25
------------

....................................................................................................................................

VENDOR.: LOS06 (LOS ANGELES CO. DIST. ATTORNEY'S OFFICE)

....................................................................................................................................

VENDOR.: LOS29 (LOS ANGELES COUNTY SAFER ESCROW ACCOUNT)

REPORT.: 02/08/22 City of Bellflower PAGE: 014 RUN....: 02/08/22 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Deserie Stanley CTL.: BEL

....................................................................................................................................

VENDOR.: LOS29 (LOS ANGELES COUNTY SAFER ESCROW ACCOUNT) ..Continue..

---- WARRANT ----- --------------------------------------- DISTRIBUTION --------------------------------------- Invoice No Number Date Amount Paid G/L Account No Ctr Description ---------- ------ -------- ------------ -------------- --- -------------------------------------------------- 221306AL XXXXXX 01/27/22 2722.86 010 42173 2200 11/21 LIAB.INS/NO CALL MOTOR (X1) 8985.43 010 42153 2200 11/21 LIAB.INS/GENERAL LAW CARS (40-HOUR) (X3) 2995.14 010 42155 2200 11/21 LIAB.INS/TRAFFIC LAW CAR (40-HOUR) (X1) 44489.85 010 42152 2200 11/21 LIAB.INS/GENERAL LAW CARS (56-HOUR)X10.61 12579.60 010 42154 2200 11/21 LIAB.INS/TRAFFIC LAW CARS (56-HOUR) (X3) 4193.20 135 42117 3600 11/21 LIAB.INS/TRANSIT OFFICER (56-HR),TRAFFIC(X1) 3751.30 010 42165 2200 11/21 LIAB.INS/NO RELIEF GRANT CARS (40-HR) (X2) 221453AL XXXXXX 01/27/22 73.83 010 42182 2200 11/21 LIABILITY INSURANCE/LASD HELICOPTER SUPPORT 221466AL XXXXXX 01/27/22 1170.66 010 42164 2200 11/2-30/21 LIAB.INS/OT LAW ENF/CRIME SUPPRESSION 221467AL XXXXXX 01/27/22 2426.89 010 42164 2200 11/21 LIAB.INS/OT LAW ENF/TRAFFIC ENFORCEMENT 221577AL XXXXXX 01/27/22 13614.28 010 42130 2200 12/21 LIAB.INS/SPECIAL ASSIGNMENT OFFICERS (X5) 2722.86 010 42173 2200 12/21 LIAB.INS/NO CALL MOTOR (X1) 8985.43 010 42153 2200 12/21 LIAB.INS/GENERAL LAW CARS (40-HOUR) (X3) 2995.14 010 42155 2200 12/21 LIAB.INS/TRAFFIC LAW CAR (40-HOUR) (X1) 44489.85 010 42152 2200 12/21 LIAB.INS/GENERAL LAW CARS (56-HOUR)X10.61 12579.60 010 42154 2200 12/21 LIAB.INS/TRAFFIC LAW CARS (56-HOUR) (X3) 4193.20 135 42117 3600 12/21 LIAB.INS/TRANSIT OFFICER (56-HR),TRAFFIC(X1) 3751.30 010 42165 2200 12/21 LIAB.INS/NO RELIEF GRANT CARS (40-HR)(X2) ------------
Vendor's Total = 193057.57
------------

....................................................................................................................................

VENDOR.: MEN06 (WILLIAM J MENDES)

....................................................................................................................................

VENDOR.: MOS01 (MOSS, LEVY & HARTZHEIM, LLP)

REPORT.: 02/08/22 City of Bellflower PAGE: 015 RUN....: 02/08/22 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Deserie Stanley CTL.: BEL

....................................................................................................................................

VENDOR.: MTB01 (MTB ENTERPRISES, LLC)

....................................................................................................................................

VENDOR.: NAT19 (NATIONAL RENT-A-FENCE CO.)

....................................................................................................................................

VENDOR.: NEW08 (NEWMEYER & DILLION, LLP)

....................................................................................................................................

VENDOR.: NV501 (NV5,INC.)

REPORT.: 02/08/22 City of Bellflower PAGE: 016 RUN....: 02/08/22 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Deserie Stanley CTL.: BEL

....................................................................................................................................

VENDOR.: OCE01 (OCEAN BLUE ENVIRONMENTAL SERVICES, INC.)

....................................................................................................................................

VENDOR.: OMN01 (OMNI ENTERPRISE)

....................................................................................................................................

VENDOR.: ONG01 (OSCAR NERI)

....................................................................................................................................

VENDOR.: PAR01 (LIBERTY UTILITIES/PARK WATER COMPANY)

REPORT.: 02/08/22 City of Bellflower PAGE: 017 RUN....: 02/08/22 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Deserie Stanley CTL.: BEL

....................................................................................................................................

VENDOR.: PAR01 (LIBERTY UTILITIES/PARK WATER COMPANY) ..Continue..

37.80 010 43212 3900 11/08/21-01/10/22 WATER ------------
Vendor's Total = 34214.61
------------

....................................................................................................................................

VENDOR.: PERS0 (PUBLIC EMPLOYEES' RETIREMENT SYSTEM)

....................................................................................................................................

VENDOR.: PRE26 (PRETTY SMART)

....................................................................................................................................

VENDOR.: RAM14 (MARK RAMIREZ)

REPORT.: 02/08/22 City of Bellflower PAGE: 018 RUN....: 02/08/22 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Deserie Stanley CTL.: BEL

....................................................................................................................................

VENDOR.: RIC03 (RICOH USA INC.)

44.51 010 43100 5000 12/21 RICOH COPIES/COLOR/SIMMS PARK

10.32 010 43100 3000 12/21 RICOH COPIES/B&W/PUBLIC WORKS

81.10 010 43100 3000 12/21 RICOH COPIES/COLOR/PUBLIC WORKS

59.65 010 43100 8000 12/21 RICOH COPIES/B&W/2ND FL/CITY HALL 132.56 010 43100 8000 12/21 RICOH COPIES/COLOR/2ND FL/CITY HALL

43.31 010 43100 2000 12/21 RICOH COPIES/B&W/PUBLIC SAFETY

14.74 010 43100 2000 12/21 RICOH COPIES/COLOR/PUBLIC SAFETY

31.50 010 43100 8000 12/21 RICOH COPIES/B&W/1ST FL/CITY HALL 232.11 010 43100 8000 12/21 RICOH COPIES/COLOR/1ST FL/CITY HALL ------------
Vendor's Total = 661.69
------------

....................................................................................................................................

VENDOR.: SAF11 (SAFEbuilt,LLC)

....................................................................................................................................

VENDOR.: SMA01 (SMART AND FINAL)

....................................................................................................................................

VENDOR.: SMA03 (SMART & FINAL)

REPORT.: 02/08/22 City of Bellflower PAGE: 019 RUN....: 02/08/22 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Deserie Stanley CTL.: BEL

....................................................................................................................................

VENDOR.: SOU01 (SOUTHERN CALIFORNIA EDISON)

13.23 010 43210 3900 12/21 ELECTRIC
265.26 320 43210 6022 12/21 ELECTRIC
------------
Vendor's Total = 78969.74
------------

....................................................................................................................................

VENDOR.: SOU03 (THE GAS COMPANY)

84.10 010 43211 8000 12/21 GAS
220127ECFH XXXXXX 01/27/22 3799.20 010 43211 3900 ECF 12/21 GAS/THE MAYNE EVENTS CENTER B220128H XXXXXX 01/28/22 283.31 010 43211 8010 TSS 12/21 GAS ------------
Vendor's Total = 8033.04
------------

....................................................................................................................................

VENDOR.: SOU12 (SO.CA. MUNICIPAL ATHLETIC FEDERATION INC)

REPORT.: 02/08/22 City of Bellflower PAGE: 020 RUN....: 02/08/22 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Deserie Stanley CTL.: BEL

....................................................................................................................................

VENDOR.: SOU29 (SOUTHERN CALIFORNIA EDISON)

....................................................................................................................................

VENDOR.: STA15 (STATE OF CALIFORNIA)

....................................................................................................................................

VENDOR.: STA16 (STATE BOARD OF EQUALIZATION)

17.69 900 20300 2021 USE TAX
-0.95 010 20510 2021 SALES TAX
------------
Vendor's Total = 585.00
------------

....................................................................................................................................

VENDOR.: STA26 (STAPLES BUSINESS ADVANTAGE)

12.67 010 43100 5012 OFFICE SUPPLIES
495911609 XXXXXX 01/27/22 7.25 010 43100 5000 OFFICE SUPPLIES 495911612 XXXXXX 01/27/22 16.50 010 43100 5000 OFFICE SUPPLIES

REPORT.: 02/08/22 City of Bellflower PAGE: 021 RUN....: 02/08/22 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Deserie Stanley CTL.: BEL

....................................................................................................................................

VENDOR.: STA26 (STAPLES BUSINESS ADVANTAGE) ..Continue..

42.82 010 41318 1012 OFFICE SUPPLIES

42.82 010 41302 1012 OFFICE SUPPLIES
495911615 XXXXXX 01/27/22 126.29 010 43100 1200 OFFICE SUPPLIES 495911617 XXXXXX 01/27/22 195.68 010 43100 1200 OFFICE SUPPLIES 495911618C XXXXXX 01/27/22 -195.68 010 43100 1200 CREDIT: OFFICE SUPPLIES 495911619 XXXXXX 01/27/22 195.68 010 43100 1200 OFFICE SUPPLIES 495911620 XXXXXX 01/27/22 115.55 010 43100 1200 OFFICE SUPPLIES 495911610 XXXXXX 02/02/22 26.57 010 43100 5011 OFFICE SUPPLIES 495911611 XXXXXX 02/02/22 24.14 010 43100 5011 OFFICE SUPPLIES 495911622C XXXXXX 02/02/22 -66.14 010 43100 4100 CREDIT: OFFICE SUPPLIES 495911623 XXXXXX 02/02/22 55.64 010 43100 4100 OFFICE SUPPLIES 495911624 XXXXXX 02/02/22 73.97 010 43100 4100 OFFICE SUPPLIES ------------
Vendor's Total = 915.77
------------

....................................................................................................................................

VENDOR.: STA52 (STANDARD INSURANCE COMPANY)

....................................................................................................................................

VENDOR.: SUP01 (SUPERIOR PAVEMENT MARKINGS)

REPORT.: 02/08/22 City of Bellflower PAGE: 022 RUN....: 02/08/22 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Deserie Stanley CTL.: BEL

....................................................................................................................................

VENDOR.: TAG01 (TAG/AMS, INC.)

....................................................................................................................................

VENDOR.: TAY06 (TAYLOR'S LOCK & KEY SERVICE)

....................................................................................................................................

VENDOR.: TIM06 (CHARTER COMMUNICATIONS HOLDINGS, LLC)

....................................................................................................................................

VENDOR.: TIT01 (TITAN ENVIRONMENTAL SOLUTIONS, INC.)

REPORT.: 02/08/22 City of Bellflower PAGE: 023 RUN....: 02/08/22 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Deserie Stanley CTL.: BEL

....................................................................................................................................

VENDOR.: TIT01 (TITAN ENVIRONMENTAL SOLUTIONS, INC.) ..Continue..

....................................................................................................................................

VENDOR.: TON02 (TONY'S GLOVES & SAFETY SUPPLY, INC.)

....................................................................................................................................

VENDOR.: TOT01 (TOTAL COMPENSATION SYSTEMS, INC.)

....................................................................................................................................

VENDOR.: TPX01 (U.S. TELEPACIFIC CORPORATION)

REPORT.: 02/08/22 City of Bellflower PAGE: 024 RUN....: 02/08/22 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Deserie Stanley CTL.: BEL

....................................................................................................................................

VENDOR.: TPX01 (U.S. TELEPACIFIC CORPORATION) ..Continue..

....................................................................................................................................

VENDOR.: URB02 (URBAN RESTORATION GROUP US INC.)

....................................................................................................................................

VENDOR.: VER09 (VERIZON WIRELESS)

78.51 010 43300 3000 01/22 CELLULAR BROADBAND

78.51 010 43300 3100 01/22 CELLULAR BROADBAND

40.50 010 43300 3900 01/22 CELLULAR BROADBAND 121.50 010 43300 4000 01/22 CELLULAR BROADBAND

40.50 010 43300 4100 01/22 CELLULAR BROADBAND 157.02 010 43300 4105 01/22 CELLULAR BROADBAND 157.02 900 43300 4150 01/22 CELLULAR BROADBAND

40.50 010 43300 1100 01/22 CELLULAR BROADBAND

78.51 010 43300 5000 01/22 CELLULAR BROADBAND

76.02 010 43300 5010 01/22 CELLULAR BROADBAND

38.01 010 43300 5011 01/22 CELLULAR BROADBAND

40.50 010 43300 5017 01/22 CELLULAR BROADBAND

38.03 320 43300 6022 01/22 CELLULAR BROADBAND

38.01 135 43300 3610 01/22 CELLULAR BROADBAND

40.50 900 43300 5022 01/22 CELLULAR BROADBAND ------------
Vendor's Total = 1144.64
------------

REPORT.: 02/08/22 City of Bellflower PAGE: 025 RUN....: 02/08/22 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Deserie Stanley CTL.: BEL

....................................................................................................................................

VENDOR.: VIS01 (VISTA PAINT CORPORATION)

....................................................................................................................................

VENDOR.: VOY01 (VOYAGER FLEET SYSTEMS INC)

....................................................................................................................................

VENDOR.: VOY02 (VOYA RETIREMENT INS & ANNUITY CO - 457)

....................................................................................................................................

VENDOR.: VOY03 (VOYA RETIREMENT INS & ANNUITY CO - 401a)

....................................................................................................................................

VENDOR.: VOY04 (VOYA RETIREMENT INS & ANNUITY - 457 ROTH)

REPORT.: 02/08/22 City of Bellflower PAGE: 026 RUN....: 02/08/22 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Deserie Stanley CTL.: BEL

....................................................................................................................................

VENDOR.: WAL09 (DAKOTA WALLACE)

....................................................................................................................................

VENDOR.: WAV01 (WAVE COMMUNITY NEWSPAPERS, INC.)

....................................................................................................................................

VENDOR.: WIL02 (WILLIAMS PRINTING)

....................................................................................................................................

VENDOR.: WIL19 (WILLDAN FINANCIAL SERVICES)

REPORT.: 02/08/22 City of Bellflower PAGE: 027 RUN....: 02/08/22 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Deserie Stanley CTL.: BEL

....................................................................................................................................

VENDOR.: WIL25 (ROBERT WILSON)

....................................................................................................................................

VENDOR.: YAT01 (VERONICA YATES/PETTY CASH CUSTODIAN)

53.37 010 41318 1012 SUPPLIES/OUTGOING MAYOR'S CEREMONY 124.98 010 42015 1350 SUPPLIES/IN-SERVICE AWARDS

15.98 010 41100 1000 CITY COUNCIL MEETINGS EXPENSE

76.39 010 46501 3100 SUPPLIES/GAS/PS VEHCILE

12.12 010 43105 2000 SUPPLIES/2021 NATIONAL NIGHT-OUT

18.73 010 43100 2000 SUPPLIES/2021 NATIONAL NIGHT-OUT

39.99 010 42012 1350 SUPPLIES/SAFETY CONTEST

14.22 010 43100 2000 SUPPLIES/CSO VEHICLE ------------
Vendor's Total = 371.78
------------

....................................................................................................................................

VENDOR.: \ABD2 (SHERYL ABDELMESSIH)

....................................................................................................................................

VENDOR.: \ALB0 (DEBRA ALBRECHT)

REPORT.: 02/08/22 City of Bellflower PAGE: 028 RUN....: 02/08/22 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Deserie Stanley CTL.: BEL

....................................................................................................................................

VENDOR.: \AM14 (AMERICAN SOCIETY OF COMPOSERS,AUTHORS &)

....................................................................................................................................

VENDOR.: \AND0 (CRYSTAL ANDRADE)

....................................................................................................................................

VENDOR.: \AND3 (MISTY ANDRADE)

....................................................................................................................................

VENDOR.: \ART8 (MAYRA ARTEAGA)

....................................................................................................................................

VENDOR.: \BLA0 (JOSE BLANCO)

REPORT.: 02/08/22 City of Bellflower PAGE: 029 RUN....: 02/08/22 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Deserie Stanley CTL.: BEL

....................................................................................................................................

VENDOR.: \BOI1 (DONNA BOISE)

....................................................................................................................................

VENDOR.: \CA02 (LILIAN CANALES)

....................................................................................................................................

VENDOR.: \DFM1 (DFM ASSOCIATES)

....................................................................................................................................

VENDOR.: \DRA3 (AARON DRAKE)

....................................................................................................................................

VENDOR.: \FL36 (HUSANI FLOURNOY)

REPORT.: 02/08/22 City of Bellflower PAGE: 030 RUN....: 02/08/22 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Deserie Stanley CTL.: BEL

....................................................................................................................................

VENDOR.: \FOR9 (OLIVER FORTUNO)

....................................................................................................................................

VENDOR.: \FR05 (GEORGE E FRANZEN)

....................................................................................................................................

VENDOR.: \GAL0 (DARREN GALINDO)

....................................................................................................................................

VENDOR.: \GAZ3 (JUAN F. GARZA)

....................................................................................................................................

VENDOR.: \GOL0 (GOLDEN CONSTRUCTION, INC)

---- WARRANT ----- --------------------------------------- DISTRIBUTION --------------------------------------- Invoice No Number Date Amount Paid G/L Account No Description Ctr
---------- ------ -------- ------------ -------------- --- -------------------------------------------------- 6323 XXXXXX 01/27/22 9000.00 090 20506 REFUND DEPOSIT/C&D WMP/PW/16506 LAKEWOOD/R#06323 ------------
Vendor's Total = 9000.00
------------

REPORT.: 02/08/22 City of Bellflower PAGE: 031 RUN....: 02/08/22 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Deserie Stanley CTL.: BEL

....................................................................................................................................

VENDOR.: \HAN4 (AYMAN HANNA)

5.85 600 31650 REFUND SMIP FEE/CANCELLED/9408 HOBACK/R#03058

2.00 600 31652 REFUND SB1473 BSASRF/CANCELLED/9408 HOBACK/R#03058

96.00 540 36002 REFUND GEN.PLAN,ZONING FEE/CANCELLED/R#03058 ------------
Vendor's Total = 743.85
------------

....................................................................................................................................

VENDOR.: \HE10 (JULIET HERNANDEZ)

....................................................................................................................................

VENDOR.: \HE25 (CLAIRE ESTANISLAO HERNANDEZ)

....................................................................................................................................

VENDOR.: \ICO0 (ICON CONSTRUCTION & DESIGN)

REPORT.: 02/08/22 City of Bellflower PAGE: 032 RUN....: 02/08/22 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Deserie Stanley CTL.: BEL

....................................................................................................................................

VENDOR.: \JET4 (JETHA CONSULTING VENTURES LLC)

....................................................................................................................................

VENDOR.: \JO93 (STEPHANIE JONES)

....................................................................................................................................

VENDOR.: \KAA1 (KA ART PROD LLC/AKEMI)

....................................................................................................................................

VENDOR.: \L001 (ROBERT LOPEZ)

....................................................................................................................................

VENDOR.: \LEF0 (SARAH LEFEVRE)

REPORT.: 02/08/22 City of Bellflower PAGE: 033 RUN....: 02/08/22 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Deserie Stanley CTL.: BEL

....................................................................................................................................

VENDOR.: \LIE1 (LIEBERT CASSIDY WHITMORE)

....................................................................................................................................

VENDOR.: \LIN7 (LINCO )

....................................................................................................................................

VENDOR.: \LO99 (VICTORIA LOPEZ)

....................................................................................................................................

VENDOR.: \M065 (ROSA MARTINEZ)

REPORT.: 02/08/22 City of Bellflower PAGE: 034 RUN....: 02/08/22 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Deserie Stanley CTL.: BEL

....................................................................................................................................

VENDOR.: \MER1 (MICHELLE MERA)

....................................................................................................................................

VENDOR.: \NO08 (HENRIETTA NORRIS)

....................................................................................................................................

VENDOR.: \QU27 (RAYMOND QUINTANA)

....................................................................................................................................

VENDOR.: \R000 (HILARY RAMIREZ)

....................................................................................................................................

VENDOR.: \REA1 (MONICA REAL)

REPORT.: 02/08/22 City of Bellflower PAGE: 035 RUN....: 02/08/22 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Deserie Stanley CTL.: BEL

....................................................................................................................................

VENDOR.: \REA3 (RICARDO REAL)

....................................................................................................................................

VENDOR.: \RI62 (ROSA RIVAS)

....................................................................................................................................

VENDOR.: \RI63 (ROXANA RIVAS)

....................................................................................................................................

VENDOR.: \ROX0 (JIM ROXAS)

....................................................................................................................................

VENDOR.: \SC01 (TAMEAKA SCOTT)

REPORT.: 02/08/22 City of Bellflower PAGE: 036 RUN....: 02/08/22 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Deserie Stanley CTL.: BEL

....................................................................................................................................

VENDOR.: \SES1 (SESAC, INC.)

....................................................................................................................................

VENDOR.: \ST58 (CHRISTOPHER STRICKLAND)

....................................................................................................................................

VENDOR.: \TH09 (ADRIANA THOMAS)

....................................................................................................................................

VENDOR.: \TO44 (SANDRA TORRES)

....................................................................................................................................

VENDOR.: \TOS0 (JOE TOSCANO)

REPORT.: 02/08/22 City of Bellflower PAGE: 037 RUN....: 02/08/22 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Deserie Stanley CTL.: BEL

....................................................................................................................................

VENDOR.: \VE25 (R.M. VERDIN)

....................................................................................................................................

VENDOR.: \WA47 (SHENETHA WASHINGTON)

....................................................................................................................................

VENDOR.: \WI81 (BRITTANY WILLIAMS-FOLEY)

Report's Grand Total = 3713440.73
============

Page 1 of 2 ends

14-B
TO: Honorable Chairman and Directors of the Bellflower Financing Authority ATTENTION: Jeffrey L. Stewart, Executive Director
FROM: Tae Rhee, Director of Finance/Treasurer
SUBJECT: Consideration and possible action to receive and file Bellflower Financing Authority’s audited financial statements for the fiscal year ended June 30, 2021.

DATE: February 14, 2022

EXECUTIVE SUMMARY
The Bellflower Financing Authority (“BFA”) is a component unit of the City of Bellflower organized on June 26, 2006, pursuant to the California Joint Exercise of Powers Act to provide the financing of public capital improvements and other projects for the revitalization of the City. BFA functions as a separate entity and the Board of Directors are comprised solely of the Members of the City Council. The independent CPA firm, Moss, Levy & Hartzheim, LLP, audited BFA’s financial statements for fiscal year 2020-21, and there were no audit findings.

RECOMMENDATION TO BELLFLOWER FINANCING AUTHORITY
1) Receive and file Bellflower Financing Authority’s audited financial statements; or 2) Alternatively, discuss and take other action related to this item.

FISCAL IMPACT
None

KEY FINANCIAL SUMMARY
The following amounts have been rounded to the nearest 1,000. Total cash and investments $20,000
2021 COPs payable – transportation portion $8,685,000
(Maturity: October 1, 2032)
FY 2021-22 debt service (principal and interest)$923,000 Repayment sources: Propositions A/C funds and, if necessary, Measure M/R funds - 1 -

Staff Report – BFA audited financial statements for the FY ended June 30, 2021 February 14, 2022

Page 2 of 2 ends

KEY FINANCIAL SUMMARY – Continued

In January 2018, the City and BFA issued the 2018 Transportation Certificates of Participation (COPs) in the amount of $10,000,000 to provide funds for the construction of the four level Regional Transit Center and Parking Structure to add 278 parking spaces. The total project cost was $13.4 million including the site acquisition cost of $1.4 million.

In February 2021, the 2018 Transportation COPs were refinanced with 2021 COPs to realize interest cost savings of $274,000 in net present value. The 2021 COPs are secured by the Civic Center Property (City Hall).

 2021 COPs payable – water system portion, at June 30, 2021 $6,075,000 (Maturity: October 1, 2038)
FY 2021-22 debt service (principal and interest) $476,000 Repayment source: Water system revenues

In July 2008, the City and BFA issued the 2008 Water System COPs in the amount of $8,230,000 (32-year debt) to provide funds to the City for the reimbursement of costs incurred in connection with the acquisition of MWS ($6,212,000) and to make certain improvements to the water system ($965,000).

In February 2021, the 2008 Water System COPs were refinanced with 2021 COPs to realize interest cost savings of $1.7 million in net present value. The 2021 COPs are secured by the Civic Center Property (City Hall).

 Note payable to MTB Enterprises, LLC, at June 30, 2021 $820,000 (Maturity: January 15, 2036, approximate)
Related Capital Assets-Butterfly Garden, net of accumulated depreciation $994,000 FY 2021-22 debt service (principal and interest, approximate) $69,000 Repayment source: Lease revenue generated by Butterfly Garden property

In March 2015, BFA purchased a portion of the land to be developed as the Butterfly Garden in the amount of $995,000 (plus escrow closing costs), financed with a note payable to MTB Enterprises, LLC. In connection with the purchase, BFA acquired ground leases for a billboard and an oil booster pumping station. These lease revenues with annual CPI adjustments (and when necessary, the City’s general funds) are used to make the debt service payments on the note.

The other remaining portion of the Butterfly Garden was purchased by the City in the amount of $700,000 using $650,000 in State Urban Greening Grant and $50,000 in general funds.

ATTACHMENT

BFA audited financial statements for the fiscal year ended June 30, 2021………………...3

- 2 -

BELLFLOWER FINANCING AUTHORITY
(COMPONENT UNIT OF THE CITY OF BELLFLOWER)

BASIC FINANCIAL STATEMENTS

WITH REPORT ON AUDIT

BY INDEPENDENT

CERTIFIED PUBLIC ACCOUNTANTS

JUNE 30, 2021

- 3 -

BELLFLOWER FINANCING AUTHORITY

TABLE OF CONTENTS

June 30, 2021

Independent Auditor’s Report ....................................................................................................... 1

Management’s Discussion and Analysis (Required Supplementary Information)......................... 4

Basic Financial Statements:

Government – wide Financial Statements:

Statement of Net Position ....................................................................................................... 9 Statement of Activities ........................................................................................................... 10

Fund Financial Statements:

Balance Sheet – Governmental Fund .................................................................................. 11 Reconciliation of the Governmental Fund Balance Sheet
to the Statement of Net Position ......................................................................................... 12 Statement of Revenues, Expenditures, and Changes in Fund Balance – Governmental Fund ........................................................................................... 13 Reconciliation of the Governmental Fund Statement of Revenues, Expenditures, and Changes in Fund Balance to the Statement of Activities ...................... 14

Notes to Basic Financial Statements ....................................................................................... 15

Required Supplementary Information:

Schedule of Revenues, Expenditures, and Changes in
Fund Balance – Budget and Actual – General Fund .......................................................... 31

Supplemental Information:

Transportation Bonds Project Supplemental Schedule ......................................................... 32

Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards .................................................................................................................... 33

- 4 -

1 OFFICES: BEVERLY HILLS ∙ CULVER CITY ∙ SANTA MARIA

MEMBER AMERICAN INSTITUTE OF C.P.A.’S ∙ CALIFORNIA SOCIETY OF MUNICIPAL FINANCE OFFICERS ∙ CALIFORNIA ASSOCIATION OF SCHOOL BUSINESS OFFICIALS

PARTNERS COMMERCIAL ACCOUNTING & TAX SERVICES GOVERNMENTAL AUDIT SERVICES RONALD A LEVY, CPA 9465 WILSHIRE BLVD., 3RD FLOOR 5800 HANNUM AVE, SUITE E CRAIG A HARTZHEIM, CPA BEVERLY HILLS, CA 90212 CULVER CITY, CA 90230 HADLEY Y HUI, CPA TEL: 310.273.2745 TEL: 310.670.2745 ALEXANDER C. HOM, CPA www.mlhcpas.com FAX: 310.670.1689

ADAM V GUISE, CPA
TRAVIS J HOLE, CPA www.mlhcpas.com

INDEPENDENT AUDITOR’S REPORT

The Honorable Board of Directors of the
Bellflower Financing Authority
Bellflower, California

Report on the Financial Statement

We have audited the accompanying financial statements of the governmental activities and the major fund of the Bellflower Financing Authority (the Authority), a component unit of the City of Bellflower, California as of and for the fiscal year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the Authority’s basic financial statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the Authority’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Authority’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the

- 5 -

2 OFFICES: BEVERLY HILLS ∙ CULVER CITY ∙ SANTA MARIA

MEMBER AMERICAN INSTITUTE OF C.P.A.’S ∙ CALIFORNIA SOCIETY OF MUNICIPAL FINANCE OFFICERS ∙ CALIFORNIA ASSOCIATION OF SCHOOL BUSINESS OFFICIALS

appropriateness of accounting policies used, and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Opinions

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and the major fund of the Authority as of June 30, 2021 and the respective changes in its financial position for the fiscal year then ended in accordance with accounting principles generally accepted in the United States of America.

Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and the schedule of revenues, expenditures, and changes in fund balance – budget and actual – general fund, identified as Required Supplementary Information (RSI) in the accompanying table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the RSI in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the RSI because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Authority’s basic financial statements. The Transportation Bonds Project Supplemental Schedule is presented for purposes of additional analysis and is not a required part of the basic financial statements.

The Transportation Bonds Project Supplemental Schedule is the responsibility of management and was derived from and relates to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Transportation Bonds Project Supplemental Schedule is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

- 6 -

3 OFFICES: BEVERLY HILLS ∙ CULVER CITY ∙ SANTA MARIA

MEMBER AMERICAN INSTITUTE OF C.P.A.’S ∙ CALIFORNIA SOCIETY OF MUNICIPAL FINANCE OFFICERS ∙ CALIFORNIA ASSOCIATION OF SCHOOL BUSINESS OFFICIALS

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated January 24, 2022 on our consideration of the Authority’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Authority’s internal control over financial reporting and compliance.

Moss, Levy & Hartzheim, LLP
Culver City, California
January 24, 2022
- 7 -

4 MANAGEMENT’S DISCUSSION AND ANALYSIS

As management of the Bellflower Financing Authority (Authority), we offer readers of the Authority’s financial statements this narrative overview and analysis of the financial activities of the Authority for the fiscal year ended June 30, 2021. We encourage the readers to consider the information presented here in conjunction with additional information furnished in the accompanying basic financial statements.

Overview of the Financial Statements

This discussion and analysis is intended to serve as an introduction to the Authority’s basic financial statements. The basic financial statements are comprised of three components: 1) Government-Wide Financial Statements, 2) Fund Financial Statements and 3) Notes to the Financial Statements.

Government-Wide Financial Statements

These statements are designed to provide information about the activities of the Authority as a whole and present a longer-term view of the Authority’s finances. They are prepared using the accrual basis of accounting, which is similar to the accounting used by most private sector companies.

The Statement of Net Position presents information on all of the Authority’s assets, deferred outflows of resources, liabilities and deferred inflows of resources, with the difference between the assets and deferred outflows of resources less liabilities and deferred inflows of resources reported as net position. In time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the Authority is improving or deteriorating.

The Statement of Activities presents information on how the Authority’s net position changed during the fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods.

In both the Statement of Net Position and Statement of Activities, only the Authority’s basic governmental activities, such as principal and interest payments on certificates of participation and a note payable, are reported. The lease payments received from the City of Bellflower (City), a billboard and an oil booster pumping station are generally sufficient to finance the activities.

The Authority does not have any other business-type activities or separate component units. As referred to in Note 1 of the notes to the basic financial statements, the Authority conforms to accounting principles generally accepted in the United States of America as applicable to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles.

Fund Financial Statements

The Fund Financial Statements, in general, provide detailed information about the most significant individual funds – not the Authority as a whole. A fund is a group of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives.

The Authority, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. While funds can be divided into three categories (governmental, proprietary, and fiduciary), the Authority’s activities only require the maintenance of a debt service fund (a governmental fund). - 8 -

5 Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near- term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements.

Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements.

By doing so, readers may better understand the long-term impact of the Authority’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

The Authority only maintains one governmental fund (debt service fund). This fund reports financial transactions using an accounting method called modified accrual accounting. This information is presented in the Governmental Fund – Balance Sheet and in the Governmental Fund – Statement of Revenues, Expenditures, and Changes in Fund Balance. On behalf of the Authority, the City Council adopts an annual appropriated budget for the debt service fund. A budgetary comparison statement has been provided for the fund to demonstrate compliance with this budget.

Proprietary funds are primarily used to account for when a reporting entity charges for the services it provides, whether to outside customers or to other units of the entity. These funds are reported in the same way that all activities are reported in the Statement of Net Position and the Statement of Activities, using an accrual basis of accounting. Fiduciary funds are used to account for resources held for the benefit of parties outside the reporting entity. In these cases, the entity has a fiduciary responsibility and is acting as a trustee. The Statement of Fiduciary Net Position separately reports all of the entity’s fiduciary activities. These activities are excluded from the entity’s other financial statements because the entity cannot use these assets to finance its operations. However, the entity is responsible for ensuring that the assets reported in these funds are used for their intended purposes.

The Authority does not maintain any proprietary or fiduciary funds.

Notes to the Financial Statements provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements.

GOVERNMENT-WIDE FINANCIAL ANALYSIS

Net Position
Governmental
Activities /
Government-Wide
2021
Governmental
Activities /
Government-Wide
2020

Current and other assets $ 1,200,589 $ 1,484,535 Long-term assets 14,703,366 15,327,983
Total assets 15,903,955 16,812,518

Current liabilities 1,228,570 979,882
Long-term liabilities 14,512,460 15,707,038
- 9 -

6 Net Position
Governmental
Activities /
Government-Wide
2021
Governmental
Activities /
Government-Wide
2020
Total liabilities 15,741,030 16,686,920

Net position:

Net investment in capital assets 173,928 141,665
Unrestricted (11,003) (16,067)
Total net position $ 162,925 $ 125,598

The Authority’s Government-Wide total net position at June 30, 2021 was $162,925. Of this amount, $173,928 was for net investment in capital assets and $11,003 was an unrestricted deficit. The net position for net investment in capital assets represents the net book value of the Authority’s capital assets less the outstanding balance of the debt issued to finance the assets.

On the other hand, the deficit in unrestricted net position represents a shortage in assets needed to cover the accrued interest on a note payable. Funding for any shortage at the time of a debt service payment due date will be provided by the City’s General Fund. The Authority’s assets totaled $15.9 million, comprised of $20 thousand in cash and investments, $1.2 million in current lease and accrued interest receivables, $13.7 million in long-term lease receivable, and $994 thousand in capital assets. The Authority’s liabilities totaled $15.7 million, comprised of the 2021 Certificates of Participation of $14.8 million (transportation portion of $8.7 million and water system portion of $6.1 million), a note payable of $820 thousand, and the related accrued interest payable of $161 thousand.

Changes in Net Position
Governmental
Activities/
Government-Wide
Totals
2021
Governmental
Activities/
Government-Wide
Totals
2020
Revenues:

General Revenues:

Lease interest revenue $ 580,119 $ 684,389 Investment earnings 109 2,195
Total General Revenues 580,228 686,584

Expenses:

Interest and fiscal charges 541,879 660,478
Depreciation expense 1,022 1,022
Total Expenses 542,901 661,500

Increase (decrease) in net position 37,327 25,084
Net position – beginning 125,598 100,514
Net position – ending $ 162,925 $ 125,598

The Authority’s net position increased $37,327. The general revenues totaled $580 thousand comprised of lease interest revenue and investment earnings. The expenses totaled $543 thousand comprised of interest expense, fiscal charges, and depreciation expense.

- 10 -

7 FINANCIAL ANALYSIS OF THE AUTHORITY’S FUND

As noted earlier, the Authority uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.

Governmental Fund. The focus of the Authority’s governmental fund is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the Authority’s financing requirements. Under Governmental Accounting Standards Board Statement No. 54 (GASB 54), any available fund balance is classified as restricted to reflect its constraint for a specific purpose, namely capital assets and debt service.

At the end of the fiscal year, the Authority’s fund balance reserved for debt service was $17 thousand comprised of cash and investments held by the City of Bellflower and trustee.

Governmental Revenues – The following table presents a summary of governmental fund revenues for the fiscal year ended June 30, 2021, compared to the prior year revenues.

Comparison of Governmental Revenues
Fiscal Years 2020-21 and 2019-20
Amount
2020-21
% of Total
Revenues
Amount
2019-20
% of Total
Revenues

Variance
% increase
(decrease)
Lease revenue $ 952,568 99.99% $ 1,444,537 99.4% $ (491,969) (34)% Investment earnings 109 0.01% 8,579 0.6% (8,470) (99)% Total $ 952,677 100.0% $ 1,453,116 100.0% $ (500,439) (34)%

The total revenues of the governmental fund for fiscal year 2020-21 were $953 thousand, a decrease of $500 thousand, or 34%, from the preceding fiscal year. The lease revenue included amounts received from the City’s Municipal Water System, Propositions A and C local return funds, and two ground leases. The lease revenue decreased $492 thousand and investment earnings decreased $8 thousand compared to the preceding fiscal year.

Governmental Expenditures – The following table presents a summary of governmental fund expenditures for the fiscal year ended June 30, 2021, compared to the prior year expenditures.

Governmental Expenditures
Fiscal Years 2020-21 and 2019-20
Amount
2020-21
% of Total
Expenditures
Amount
2019-20
% of Total
Expenditures

Variance
% increase
(decrease)
Debt service $ 1,672,415 100.0% $ 1,453,272 100.0% $ 219,143 15% Total $ 1,672,415 100.0% $ 1,453,272 100.0% $ 219,143 15%

The total expenditures of the governmental fund for fiscal year 2020-21 were $1.7 million for debt service on the 2021 Certificates of Participation and a note payable to MTB Enterprises, LLC (note executed in connection with the Butterfly Garden property acquisition), and payment of trustee fees. The total expenditures increased $219 thousand, or 15%, from the preceding fiscal year.

CAPITAL ASSET AND DEBT ADMINISTRATION

Capital Assets. At June 30, 2021, the Authority’s investment in capital assets was $994 thousand.

The only capital asset activity for the fiscal year was the depreciation expense on the Butterfly Garden’s building and improvements in the amount of $1,022. For additional information, please refer to the notes to the basic financial statements – Note 4, Capital Assets.

- 11 -

8 Capital Assets

2021

2020

Variance
% increase
(decrease)
Land $ 948,941 $ 948,941 $ - - Buildings and improvements 44,775 45,797 (1,022) (2.2)% Total $ 993,716 $ 994,738 $ (1,022) (0.1)%

Long-Term Debt. At June 30, 2021, the Authority had $15.6 million in outstanding long-term debt for governmental activities. During the fiscal year in February 2021, the Authority refinanced both 2008 and 2018 COPs to reduce the debt service payments at the net present value savings of $1.7 million. For additional information, please refer to the notes to the basic financial statements – Note 5, Long-Term Debt.

Long-Term Debt

2021

2020

Variance
% increase
(decrease)
2008 Water System COPs $ - $ 6,610,000 $ (6,610,000) (100)% 2018 Transportation COPs - 9,055,000 (9,055,000) (100)% 2021 COPs – Water System 6,075,000 - 6,075,000 100%
2021 COPs – Transportation 8,685,000 - 8,685,000 100% Total COPs 14,760,000 15,665,000 (905,000) (5.8)%
Note payable 819,788 853,073 (33,285) (3.9)% Total $ 15,579,788 $ 16,518,073 $ (938,285) (5.7)%

ECONOMIC OUTLOOK

The Authority was organized in 2006 to undertake the financing of public capital improvements and other projects for revitalization of the City. The source of repayment for the water system portion of the Certificates of Participation is water system revenues. We believe the water system revenues generated by the Municipal Water System will continue to be sufficient to make the semi-annual debt service payments. The sources of repayment for the transportation portion of the Certificates of Participation are Proposition A and Proposition C local return funds and, if necessary, Measure M and Measure R local return funds (Proposition A/C and Measure M/R are Los Angeles Countywide sale taxes). We believe the local return funds will continue to be sufficient to make the semi-annual debt service payments. The sources of repayment for the note payable to MTB Enterprises, LLC are ground lease revenues for a billboard and an oil booster pumping station and, if necessary, the City’s General Fund revenue. We believe these revenues will continue to be sufficient to make the semi-annual debt service payments.

On November 8, 2016, Measure W was approved by the Bellflower residents to authorize the sale of the City’s water system to California American Water for $17 million. The net proceeds after paying off the existing debts, including the water system portion of the Certificates of Participation, will be placed in the Public Projects Fund to be used to fund capital projects designed to attract new businesses, retain existing businesses, and create new community recreation facilities. The sale of the water system has been challenged by the Office of Ratepayer Advocates of the California Public Utilities Commission (CPUC) and an administrative law judge will issue a ruling on this case. If the sale of the water system is ultimately approved by CPUC, it is expected that the Municipal Water System will dissolve soon thereafter.

CONTACTING THE AUTHORITY’S FINANCIAL MANAGEMENT

This financial report is designed to provide a general overview of the Authority’s finances for all those with an interest. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Director of Finance, Bellflower Financing Authority, 16600 Civic Center Drive, Bellflower, CA 90706. - 12 -

BASIC FINANCIAL STATEMENTS

- 13 -

2021 2020
Assets:

Current Assets
Cash held by the City of Bellflower $ 4,480 $ - Investments with fiscal agents 15,350 551,755 Leases receivable 1,035,000 780,000
Accrued lease interest receivable 145,759 152,780 Total Current Assets 1,200,589 1,484,535
Long-term Assets
Lease receivable 13,709,650 14,333,245
Capital assets:

Not being depreciated 948,941 948,941
Being depreciated (net of accumulated depreciation)44,775 45,797 Total Assets 15,903,955 16,812,518
Liabilities:

Current Liabilities
Interest payable 161,242 168,847
Note payable 32,328 31,035
Certificates of participation 1,035,000 780,000
Total Current Liabilities 1,228,570 979,882
Long-term Liabilities
Note payable 787,460 822,038
Certificates of participation 13,725,000 14,885,000
Total Long-Term Liabilities 14,512,460 15,707,038
Total Liabilities 15,741,030 16,686,920
NET POSITION:

Net investment in capital assets 173,928 141,665
Unrestricted (11,003) (16,067)
Total Net Position 162,925$ 125,598$
9 BELLFLOWER FINANCING AUTHORITY

STATEMENT OF NET POSITION
JUNE 30, 2021
(With comparative totals at June 30, 2020)
Governmental Activities
See accompanying notes to basic financial statements.
- 14 -

Program
Expenses Revenues 2021 2020
Governmental Activities:

Unallocated depreciation expense 1,022$ -$ (1,022)$ (1,022)$ Interest and fiscal charges 541,879 - (541,879) (660,478) Total Governmental Activities 542,901$ -$ (542,901) (661,500) General Revenues:

Lease interest revenue 580,119 684,389
Investment earnings 109 2,195
Total General Revenues 580,228 686,584
Change in Net Position 37,327 25,084
Net Position, Beginning of Fiscal Year 125,598 100,514 Net Position, End of Fiscal Year 162,925$ 125,598$ Function/Program
10 Net (Expense) Revenue and
Changes in Net Position
Governmental Activities
See accompanying notes to basic financial statements.

BELLFLOWER FINANCING AUTHORITY

STATEMENT OF ACTIVITIES
For the fiscal year ended June 30, 2021
(With comparative totals for the fiscal year ended June 30, 2020) - 15 -

2021 2020
Assets:

Cash held by the City of Bellflower 4,480$ -$
Investments with fiscal agents 15,350 551,755
Lease receivable 6,068,129 6,070,181
Total Assets 6,087,959$ 6,621,936$
Deferred Inflows of Resources:

Unavailable revenue - lease 6,068,129$ 6,070,181$
Unavailable revenue - rental payments 3,167 - Total Deferred Inflows of Resources 6,071,296 6,070,181 Fund Balance:

Restricted for debt service 16,663 551,755
Total Fund Balance 16,663 551,755
Total Deferred Inflows of Resources and Fund Balance 6,087,959$ 6,621,936$ 11 General Fund

BELLFLOWER FINANCING AUTHORITY

BALANCE SHEET - GOVERNMENTAL FUND
June 30, 2021
(With comparative totals at June 30, 2020)
See accompanying notes to basic financial statements.
- 16 -

Fund balance of governmental Fund 16,663$
Amounts reported for governmental activities in the Statement of Net Position are different because:

Unavailable lease revenue is not available to pay for current period expenditures and, therefore, is not reported in the fund financial statements:

Unavailable revenue - lease 14,744,650
Accrued lease interest receivable is not available to pay for current period expenditures and, therefore, is not reported in the fund financial statements 145,759 Unavailable rental revenue is not available to pay for current period expenditures but is recognized as revenue on the Statement of Activities 3,167 Long-term liabilities are not due and payable in the current period and are not reported as fund liabilities. Interest on long-term liabilities is not accrued in the governmental fund, but rather is recognized as an expenditure when due.

All liabilities, both current and long-term are reported in the Statement of Net Position. Balances at June 30, 2020 are:

Certificates of Participation (14,760,000)
Note payable (819,788)
Interest payable (161,242)
Capital assets, net of accumulated depreciation, used in governmental activities are not current financial resources and, therefore, are not reported in the governmental funds.993,716
Net Position of governmental activities 162,925$
12 BELLFLOWER FINANCING AUTHORITY

RECONCILIATION OF THE GOVERNMENTAL FUND

BALANCE SHEET TO THE STATEMENT OF NET POSITION
June 30, 2021
See accompanying notes to basic financial statements.
- 17 -

2021 2020
Revenues:

Lease revenue 952,568$ 1,444,537$
Investment earnings 109 8,579
Total Revenues 952,677 1,453,116
Expenditures:

Debt Service:

Principal payments 1,122,931 785,828
Interest and fiscal charges 549,484 667,444
Total Expenditures 1,672,415 1,453,272
Excess (Deficiency) of Revenues Over Expenditures (719,738) (156) Other Financing Sources (Uses):

Debt proceeds 14,760,000 -
Payment to refunded debt escrow (14,575,354) -
Total Other Financing Sources (Uses)184,646 -
Net Change in Fund Balance (535,092) (156)
Fund Balance, Beginning of Fiscal Year 551,755 551,911 Fund Balance, End of Fiscal Year 16,663$ 551,755$ 13 (With comparative totals for the fiscal year ended June 30, 2020) General Fund

BELLFLOWER FINANCING AUTHORITY

STATEMENT OF REVENUES, EXPENDITURES, AND

CHANGES IN FUND BALANCE - GOVERNMENTAL FUND
For the fiscal year ended June 30, 2021
See accompanying notes to basic financial statements.
- 18 -

Net change in fund balances of governmental fund (535,092)$ Amounts reported for governmental activities in the Statement of Activities are different because:

The issuance of long-term debt provides current financial resources to the governmental fund, while the repayment of the principal of long-term debt consumes the current financial resources of the governmental fund. Neither transaction, however, has any effect on net position. The amounts are the net effect of these differences in the treatment of long-term debt:

Debt proceeds (14,760,000)
Payment to refunded debt escrow 14,575,354
Debt issuance costs 184,646
Repayment of certificates of participation 905,000
Repayment of note payable 33,285
The governmental fund reports capital outlays as expenditures. However, in the Statement of Activities, the cost of those assets is allocated over their estimated useful lives as depreciation expense. (1,022) Revenues in the Statement of Activities do not provide current financial resources and are not reported as revenues in the governmental fund:

Receipt of lease payment and earned finance charge (372,449) Under the modified accrual basis of accounting used in the governmental fund, revenues are recognized when the resources are measurable and become available, and interest on long-term debt is not recognized until it is due.

However, in the Statement of Activities revenues and changes in interest revenue and interest expenses are recognized in the current year:

Accrued lease interest receivable under the accrual method versus the modified accrual method (7,021)
Interest expense recorded under the accrual method versus the modified accrual method 7,605
Change in net position of governmental activities 30,306$ 14 BELLFLOWER FINANCING AUTHORITY

RECONCILIATION OF THE GOVERNMENTAL FUND STATEMENT OF

REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

TO THE STATEMENT OF ACTIVITIES
For the fiscal year ended June 30, 2021
See accompanying notes to basic financial statements.
- 19 -

NOTES TO BASIC FINANCIAL STATEMENTS

- 20 -

15 BELLFLOWER FINANCING AUTHORITY

NOTES TO BASIC FINANCIAL STATEMENTS

June 30, 2021

NOTE 1 REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES:

Financial Reporting Entity:

The Bellflower Financing Authority (Authority) was organized on June 26, 2006 by the City of Bellflower (the City) and the Bellflower Redevelopment Agency pursuant to the Joint Exercise of Powers Act (California Government Code Sections 6500, et seq.) to provide the financing of public capital improvements and other projects for revitalization of the City. The Authority is a component unit of the City and is accounted for in the Public Facilities Corporation Debt Service Fund and the Transportation Bond Project Debt Service Fund in the City’s financial statements.

The Authority functions as a separate entity and its policies are determined by the Board of Directors comprised solely of the members of the City Council. All staff work is performed by the officials and staff of the City or by consultants.

Basis of Presentation:

The accounting policies of the Authority conform to accounting principles generally accepted the United States of America as they are applicable to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles.

Government-Wide Financial Statements:

The government-wide financial statements (i.e. the Statement of Net Position and the Statement of Activities) report information on all of the nonfiduciary activities of the primary government (the Authority). Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The Authority’s activities are governmental; no business-type activities are reported in the statements.

The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are expenses that are clearly identifiable with a specific program, project, function or segment. The Authority does not allocate indirect expenses to functions in the Statement of Activities. Program revenues of the Authority include: 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment.

Lease revenues and investment income and other items that are properly not included among program revenues are reported instead as general revenues.

- 21 -

16 BELLFLOWER FINANCING AUTHORITY

NOTES TO BASIC FINANCIAL STATEMENTS

June 30, 2021

NOTE 1 REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (Continued):

Fund Financial Statements:

The accounts of the Authority are organized on the basis of funds, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, deferred inflows of resources, fund equity, revenues, and expenditures or expenses, as appropriate. Authority resources are allocated to and accounted for in individual funds based upon the purpose for which they are to be spent and the means by which spending activities are controlled. The Authority’s accounts are organized into one major fund as follows:

Major Governmental Fund:

The General Fund is used to account for the accumulation of resources for, and the payment of long-term debt principal, interest, and related costs.

The accounting and financial treatment applied to a fund is determined by its measurement focus.

All governmental funds are accounted for using a flow of current financial resources measurement focus. With this measurement focus, only current assets and current liabilities are generally included on the balance sheet. The Statement of Revenues, Expenditures, and Changes in Fund Balances for these funds, present increases (i.e. revenues and other financing sources) and decreases (i.e. expenditures and other financing uses) in net current assets.

Measurement Focus and Basis of Accounting:

The accounting and financial reporting treatment is determined by the applicable measurement focus and basis of accounting. Measurement focus indicates the type of resources being measured such as current financial resources or economic resources. The basis of accounting indicates the timing of transactions or events for recognition in the financial statements.

The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Under the economic resources’ measurement focus, all (both current and long-term) economic resources and obligations of the reporting government are reported in the government-wide financial statements. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows.

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under the current financial resources’ measurement focus only current assets, deferred outflows of resources, current liabilities, and deferred inflows of resources are generally included on their balance sheets. The reported fund balance (net current assets) is considered to be a measure of “available spendable resources”. Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in fund balance. - 22 -

17 BELLFLOWER FINANCING AUTHORITY

NOTES TO BASIC FINANCIAL STATEMENTS

June 30, 2021

NOTE 1 REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (Continued):

Noncurrent portions of long-term receivables in governmental funds are reported on their balance sheets in spite of their spending measurement focus.

Recognition of governmental fund type revenues represented by noncurrent receivables are deferred inflows of resources until they become available.

Under the modified accrual basis of accounting, revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Lease revenue and investment earnings are susceptible to accrual. Expenditures generally are recorded when a liability is incurred, except for principal and interest on long-term liabilities which are recognized as expenditures to the extent they have matured. Proceeds of long-term liabilities are reported as other financing sources. General capital asset acquisitions are reported as expenditures in governmental funds.

Deferred Outflows/Inflows of Resources:

In addition to assets, the Statement of Net Position and the Governmental Fund Balance Sheet will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to future periods and so will not be recognized as an outflow of resources (expense/expenditure) until then. The Authority does not have any deferred outflows of resources to report.

In addition to liabilities, the Statement of Net Position and the Governmental Fund Balance Sheet will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to future periods and will not be recognized as an inflow of resources (revenue) until that time. The Authority has two items that qualifies for reporting in this category on the Governmental Fund Balance Sheet consisting of unavailable revenue on lease financing and unavailable revenue on lease payments.

Budgets and Budgetary Accounting:

Annual budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America for all governmental funds.

These budgets are revised by the Authority’s governing board and the Executive Director during the fiscal year, to give consideration to unanticipated income and expenditures.

- 23 -

18 BELLFLOWER FINANCING AUTHORITY

NOTES TO BASIC FINANCIAL STATEMENTS

June 30, 2021

NOTE 1 REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (Continued):

Prior Year Data:

Selected information regarding the prior year has been included in the accompanying financial statements. This information has been included for comparison purposes only and does not represent a complete presentation in accordance with generally accepted accounting principles in the United States of America. Accordingly, such information should be read in conjunction with the Authority’s prior year financial statements, from which this selected financial data was derived.

Use of Estimates:

The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that effect certain reported amounts and disclosures. Accordingly, actual results could differ from the estimates.

Assets, Liabilities, and Equity:

Cash and Investments:

Cash includes all demand accounts, savings accounts, and certificates of deposits of the Authority. The Authority’s cash and investments, with the exception of cash and investments with fiscal agent, are pooled with the City to maximize the yield. Investments are reported in the accompanying financial statements at fair value which is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Receivables:

In the government-wide statements, receivables consist of all revenues earned at fiscal year-end.

Major receivable balances for the governmental activities include lease charges. Under the financing method of accounting for the lease with the City, the minimum lease payable for the remaining term of the lease has been included in the assets of the Authority.

Capital Assets:

Capital assets, which include land and buildings and improvements, follow the City’s policy and are reported in the governmental activities column in the government-wide financial statements.

Capital assets are defined by the Authority as assets with a cost of $2,300 or more and an estimated useful life in excess of one year. Such capital assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair value at the date of donation. The cost of normal maintenance and repairs that do not add to the value of the capital asset or materially extend capital asset lives are not capitalized. - 24 -

19 BELLFLOWER FINANCING AUTHORITY

NOTES TO BASIC FINANCIAL STATEMENTS

June 30, 2021

NOTE 1 REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (Continued):

Capital assets of the Authority are depreciated using the straight-line method over their estimated useful lives: The Authority only has Buildings and improvements which have a useful life of 20 to 50 years.

Long-term Liabilities:

The accounting treatment of long-term liabilities depends on whether it is reported in the government-wide or fund financial statements.

All long-term liabilities to be repaid from governmental resources are reported as liabilities in the government-wide statements. The long-term liabilities consist of Certificates of Participation and a Note Payable.

Long-term liabilities for governmental funds are not reported as liabilities in the fund financial statements. The debt proceeds are reported as other financing sources and payment of principal, interest and issuance costs are reported as expenditures.

Equity Classifications:

Government-wide Statements:

Equity is classified as net position which can be further classified as net investment in capital assets, restricted, or unrestricted.

Net investment in capital assets - consists of net position represented by the current net book value of the Authority’s capital assets, less the outstanding balance of any debt issued to finance these assets.

Restricted net position - consists of net position with constraints placed on the use either by (1) external groups such as creditors, grantors, contributors, or laws or regulations of other governments; or (2) law through constitutional provisions or enabling legislation.

Unrestricted - consists of net position which is not restricted or invested in capital assets.

Sometimes the Authority will fund outlays for a particular purpose from both restricted and unrestricted resources. In order to calculate the amounts to report as restricted - net position and unrestricted - net position in the government-wide financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the Authority’s practice to consider restricted - net position to have been depleted before unrestricted - net position is applied.

- 25 -

20 BELLFLOWER FINANCING AUTHORITY

NOTES TO BASIC FINANCIAL STATEMENTS

June 30, 2021

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued):

Fund Statements:

Governmental fund equity is classified as fund balance. Fund balance is further classified as follows:

Nonspendable - amounts that cannot be spent either because they are in nonspendable form or because they are legally or contractually required to be maintained intact.

Restricted - amounts that can be spent only for specific purposes because of constitutional provisions or enabling legislation or because of constraints that are externally imposed by creditors, grantors, contributors, or the laws or regulations of other governments.

Committed - amounts that can be used only for specific purposes determined by a formal action of the governing board as the highest level of decision-making authority for the Authority.

Commitments may be established, modified, or rescinded only through resolutions approved by the governing board.

Assigned - .amounts that do not meet the criteria to be classified as restricted or committed but that are intended to be used for specific purposes. Under the Authority’s adopted policy, only the governing board or director may assign amounts for specific purposes.

Unassigned - all other spendable amounts.

When an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available, the Authority considers restricted funds to have been spent first. When an expenditure is incurred for which committed, assigned, or unassigned fund balance are available, the Authority considers amounts to have been spent first out of committed funds, then assigned funds, and finally unassigned funds, as needed, unless the governing board has provided otherwise in its commitment or assignment actions.

Future Accounting Pronouncements:

The provisions of Statement Number 87 “Leases” are effective for fiscal years beginning after June 15, 2021.

The provisions for Statement Number 89 “Accounting for Interest Cost Incurred before the End of a Construction Period” are effective for fiscal years beginning after December 15, 2020.

The provisions of Statement Number 92 “Omnibus 2020” are effective for reporting periods beginning after June 15, 2021.

- 26 -

21 BELLFLOWER FINANCING AUTHORITY

NOTES TO BASIC FINANCIAL STATEMENTS

June 30, 2021

NOTE 1 REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (Continued):

Future Accounting Pronouncements:

The provisions of Statement Number 93 “Replacement of Interbank Offered Rates” are effective for reporting periods beginning after December 15, 2021.

The provisions of Statement Number 94 “Public-Private and Public-Public Partnerships and Availability Payment Arrangements” are effective for reporting periods beginning after June 15, 2022.

The provisions of Statement Number 96 “Subscription-Based Information Technology Arrangements” are effective for reporting periods beginning after June 15, 2022.

The provisions of Statement Number 97 “Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans” are effective for reporting periods beginning after June 15, 2022.

The provisions of Statement Number 98 “The Annual Comprehensive Financial Report” are effective for fiscal years ending after December 15, 2021.

NOTE 2 CASH AND INVESTMENTS:

The Authority’s cash and investments are pooled with the City with the exception of cash and investments with fiscal agents. Investment income earned on pooled cash and investments is allocated based on the average monthly cash balance in each fund.

Cash and investments as of June 30, 2021 are classified in the accompanying financial statements as follows:

Statement of Net Position:

Cash and cash equivalents held by the
City of Bellflower 4,480$
Investments with fiscal agents 15,350
Total cash and investments 19,830$
Cash and investments as of June 30, 2020 consist of the following:

Statement of Net Position:

Investments with fiscal agents 551,755$
Total cash and investments 551,755$
- 27 -

22 BELLFLOWER FINANCING AUTHORITY

NOTES TO BASIC FINANCIAL STATEMENTS

June 30, 2021

NOTE 2 CASH AND INVESTMENTS (Continued):

Investments Authorized by the California Government Code and the Authority’s Investment Policy:

The table below identifies the investment types that are authorized for the Authority by the California Government Code (or the Authority’s investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the Authority’s investment policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the Authority, rather than the general provisions of the California Government Code or the Authority’s investment policy.

Note: N/A – Not Applicable.

Investments Authorized by Debt Agreements:

Investment of debt proceeds held by bond trustees are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the Authority’s investment policy. The table below identifies the investment types that are authorized for investments held by bond trustee. The table also identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk.

Maximum Maximum
Maximum Percentage Investment
Authorized Investment Type Maturity of Portfolio in One Issuer Bankers Acceptances 180 days 40%30%
CalTRUST None None None
Certificates of Deposit 5 years None None
Commercial Paper 270 days 25%None
LAIF N/A None 75,000,000$
Los Angeles County Treasury Pool None None None
Medium Term Notes, Prime Quality 5 years 30%None
Money Market Mutual Funds N/A None None
Mutual Funds, Prime Quality N/A 20%None
Negotiable Certificates of Deposit 5 years 30%10%
Broker-assisted, Private Sector
Entity-Assisted, Certificates of Deposit 5 years 30%None Passbook Savings and Money Market
Accounts (Insured)None None None
State and Local Agency Obligations 5 years None None
United States Treasury Obligations 5 years None None
United States Government Sponsored
Agency Securities 5 years None None
- 28 -

23 BELLFLOWER FINANCING AUTHORITY

NOTES TO BASIC FINANCIAL STATEMENTS

June 30, 2021

NOTE 2 CASH AND INVESTMENTS (Continued):

Disclosures Relating to Interest Rate Risk:

Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the Authority manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flows and liquidity needed for operations.

Information about the sensitivity of the fair values of the Authority’s investments and those held by bond trustees to market interest rate fluctuations is provided by the following table that shows the distribution of the Authority’s investments by maturity:

Investments with Fair Values Highly Sensitive to Interest Rate Fluctuations:

The Authority has no investments (including investments held by bond trustees) that are highly sensitive to interest rate fluctuations.

Maximum Maximum
Authorized Maximum Percentage Investment
Investment Type Maturity of Portfolio in One Issuer
Certificates of Deposit with Banks or Savings
& Loans None None None
U.S. Treasury Obligations None None None
U.S. Agency Securities None None None
Municipal Obligations None None None
Banker's Acceptances, Prime Quality 360 days None None
Commercial Paper, Prime Quality 270 days None None
Money Market Mutual Funds N/A None None
Investment Contracts None None None
Local Agency Investment Fund (State Pool) None None None Remaining
Maturity
12 Months
Totals or Less
Investments with fiscal agents
Money Market Mutual Funds 15,350$ 15,350$
15,350$ 15,350$
Investment Type
- 29 -

24 BELLFLOWER FINANCING AUTHORITY

NOTES TO BASIC FINANCIAL STATEMENTS

June 30, 2021

NOTE 2 CASH AND INVESTMENTS (Continued):

Disclosures Relating to Credit Risk:

Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code, the Authority’s investment policy, or debt agreements, and the actual rating as of fiscal year end for each investment type.

Concentration of Credit Risk:

The investment policy of the Authority contains limitations on the amount that can be invested in any one issuer. None of investments in any one issuer (other than Money Market Funds) represents 5% or more of total Authority investments.

Custodial Credit Risk:

Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g. broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the Authority’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits. The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The fair value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure Authority deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. The Authority pools its cash with the City of Bellflower.

Fiscal
Year
Minimum End
Legal Rating
Rating Total AAA
Investments with fiscal agents
Money Market Mutual Funds A 15,350$ 15,350$
Investment Type
- 30 -

25 BELLFLOWER FINANCING AUTHORITY

NOTES TO BASIC FINANCIAL STATEMENTS

June 30, 2021

NOTE 2 CASH AND INVESTMENTS (Continued):

Fair Value Measurements:

The Authority categorizes its fair value measurement within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the assets. Level 1 inputs are quoted prices in active markets for identical assets, Level 2 inputs are significant other observable inputs, and Level 3 inputs are significant unobservable inputs.

The Authority’s investment in money market mutual funds are not subject to the fair value hierarchy.

NOTE 3 LEASE RECEIVABLE:

The 2021 Certificates of Participation (COPs) issued by the Authority and outstanding at June 30, 2021 bear interest at 2.30% per annum and mature on October 1, 2038. The Certificates represent undivided proportionate interests of the Owners in certain lease payments, to be made by the City to the Authority. The City shall sublease from the Authority a leasehold interest in the Civic Center Property and Thompson Park. The balance outstanding as of June 30, 2021 was $14,744,650.

Future estimated minimum lease payments to be received are as follows:

Fiscal years
Ending
June 30, Total
2022 1,399,355$
2023 1,230,038
2024 1,228,533
2025 1,226,568
2026 1,229,085
2027-2031 6,153,638
2032-2036 3,678,415
2037-2039 1,210,990
Total investment in lease 17,356,622
Less amount representing interest (2,611,972)
Net investment in lease 14,744,650$
- 31 -

26 BELLFLOWER FINANCING AUTHORITY

NOTES TO BASIC FINANCIAL STATEMENTS

June 30, 2021

NOTE 4 CAPITAL ASSETS:

A summary of changes in the Governmental Activities capital assets at June 30, 2021 is as follows:

Governmental Activities:

NOTE 5 LONG-TERM LIABILITIES:

The following is a summary of changes in the long-term debt for the fiscal year ended June 30, 2021:

Balance Balance
July 1, 2020 June 30, 2021
Capital assets, not being depreciated:

Land $ 948,941 $ - $ - $ 948,941 Total capital assets, not
being depreciated 948,941 - - 948,941 Capital assets, being depreciated:

Buildings and improvements $ 51,075 $ - $ - $ 51,075 Total capital assets,
being depreciated 51,075 - - 51,075 Less accumulated depreciation for:

Buildings and improvements (5,278) (1,022) - (6,300) Total accumulated depreciation (5,278) (1,022) - (6,300) Total capital assets,
being depreciated, net $ 45,797 $ (1,022) $ - $ 44,775 Total government activities
capital assets, net $ 994,738 $ (1,022) $ - $ 993,716 Additions Deletions
Balance at Balance at Due Within
Governmental Activities July 1, 2020 Increase Decrease June 30, 2021 One Year 2008 Certificates of Participation 6,610,000$ -$ (6,610,000)$ -$ -$ 2018 Certificates of Participation 9,055,000 - (9,055,000) - - 2021 Certificates of Participation - 14,760,000 - 14,760,000 1,035,000 Subtotal 15,665,000 14,760,000 (15,665,000) 14,760,000 1,035,000 Note Payable - Direct Borrowing 853,073 - (33,285) 819,788 32,328 Total long-term liabilities 16,518,073$ 14,760,000$ (15,698,285)$ 15,579,788$ 1,067,328$ - 32 -

27 BELLFLOWER FINANCING AUTHORITY

NOTES TO BASIC FINANCIAL STATEMENTS

June 30, 2021

NOTE 5 LONG TERM DEBT (Continued):

Debt service requirements on long-term debt at June 30, 2021, are as follows:

2008 Certificates of Participation:

On June 9, 2008, the Bellflower Financing Authority issued 2008 Certificates of Participation (Water System) in the amount of $8,230,000 to (1) provide funds to reimburse the City’s General Fund for costs incurred in acquiring certain assets constituting the City’s municipal water system, (2) provide funds to make certain improvements to the Water System, (3) fund a debt service reserve fund for the Certificates of $539,819, and (4) pay for the costs incurred in connection with the sale and issuance of the Certificates. The COPS represent undivided proportionate interests of the owners in certain lease payments, to be made by the City to the Financing Authority. The City subleases from the Financing Authority a leasehold interest in the Civic Center Property and Thompson Park. The 2008 COPS issued by the Bellflower Financing Authority bore interest at

4.00% to 5.25% a year and matured serially in increasing amounts on each October 1 through 2040. On February 22, 2021, the 2008 COPs were refinanced as part of the 2021 COPS. The 2008 COPS balance outstanding as of June 30, 2021 was $0.

2018 Certificates of Participation:

On January 18, 2018, the Bellflower Financing Authority (Authority) issued the 2018 Certificates of Participation (Regional Transit Center and Parking Structure) in the amount of $10,000,000 in order to finance (i) construction of the Regional Transit Center and Parking Structure, (ii) a surety bond for the Reserve Fund, and (iii) costs of issuing the 2018 Certificates. On January 1, 2018 the City and the Authority entered into the “First Supplement to the Site Lease” entered into as part of the issuance of the 2008 Certificates of Participation in which the City has agreed to lease the real property consisting of the land and building comprising the City’s Civic Center and Thompson Park to the Corporation. The Certificates issued by the Authority bore interest at 3.07% a year and matured on October 1, 2018 through 2032. On February 22, 2021, the 2018 COPs were refinanced as part of the 2021 COPs. As of June 30, 2021, the outstanding balance of the 2018 COPs was $0.

Fiscal years Fiscal years
Ending June 30, Principal Interest Total Ending June 30, Principal Interest Total 2022 1,035,000$ 364,355$ 1,399,355$ 2022 32,328$ 33,646$ 65,974$ 2023 925,000 305,038 1,230,038 2023 33,675 32,299 65,974 2024 945,000 283,533 1,228,533 2024 35,079 30,895 65,974 2025 965,000 261,568 1,226,568 2025 36,541 29,433 65,974 2026 990,000 239,085 1,229,085 2026 38,064 27,910 65,974 2027-2031 5,315,000 838,638 6,153,638 2027-2031 215,477 114,393 329,870 2032-2036 3,400,000 278,415 3,678,415 2031-2035 264,279 65,591 329,870 2037-2038 1,185,000 41,340 1,226,340 2036-2040 164,345 13,817 178,162 14,760,000$ 2,611,972$ 17,371,972$ 819,788$ 347,984$ 1,167,772$ Note Direct Borrowing2021 Certificates of Participation - 33 -

28 BELLFLOWER FINANCING AUTHORITY

NOTES TO BASIC FINANCIAL STATEMENTS

June 30, 2021

NOTE 5 LONG TERM DEBT (Continued):

2021 Certificates of Participation:

On February 22, 2021 the Bellflower Financing Authority (Authority) issued the 2021 Certificates of Participation in the amount of $14,760,000 to pay off the 2008 Certificates of Participation, the 2018 Certificates of Participation, and to pay the costs of issuance of the 2021 Refunding Certificates of Participation.

The Authority assisted the City to (a) finance the costs of acquiring the City’s water system through the execution and delivery of the City of Bellflower 2008 Certificates of Participation (Water System) and (b) finance the Regional Transit Center and Parking Structure through the execution and delivery of the City of Bellflower 2018 Certificates of Participation (Regional Transit and Parking Structure) and the Authority and the City have entered into a lease agreement dated February 1, 2021 to lease certain property consisting of the City’s Civic Center and Thompson Park to the Authority. The City has agreed to lease the real property consisting of the land and building comprising the City’s Civic Center.

The 2021 Refunding Certificates of Participation shall mature on October 1, 2038 and shall bear interest at the rate of 2.30% per annum. The certificates maturing on October 1, 2038 shall be subject to mandatory sinking fund prepayment prior to maturity at a prepayment price equal to the principal amount to be repaid plus accrued interest with respect thereto to the prepayment date, on October 1 of each year, commencing October 1, 2021.

The 2021 Refunding Certificates of Participation may be prepaid before maturity on any date on and after April 1, 2031, at the option of the City exercised by notification at least 30 days prior to the scheduled prepayment date. In addition, an amount not exceeding 90% of then outstanding principal amount may be prepaid in whole or in part before the maturity on any date, at the option of the City, from moneys obtained by the City from the full or any partial sale of the City’s water system with at least 30 days prior notification.

In the event of a default of the principal and interest due, the COP owners may request that the trustee may re-let the leased premises.

- 34 -

29 BELLFLOWER FINANCING AUTHORITY

NOTES TO BASIC FINANCIAL STATEMENTS

June 30, 2021

NOTE 5 LONG TERM DEBT (Continued):

The annual requirements to amortize the 2021 Certificates of Participation outstanding at June 30, 2021 are as follows:

Note Payable:

On March 31, 2015, the City executed into a promissory note with MTB Enterprises, LLC for $995,000 to purchase real property for the Butterfly Garden. The note is secured by a deed of trust on the purchased property. Interest accrues at the annual rate of 4.125% with a principal and interest payments due on July 15, and January 15 of each fiscal year. In the event that during the term of the loan that the total rental income received by the City from the sign lease and the pumping station lease on the property exceed the predetermined principal and interest payments owed for any calendar year then the amount of excess rent will be paid by the City to MTB Enterprises, LLC to apply to the principal of the loan on or before February 15th of the year following the receipt of the excess rent. The City’s last one or more payments will be reduced to reflect that reduction in principal. The excess rent collected in fiscal year 2019-2020 that was paid in addition to the pre-determined principal amount was $4,562. The loan balance as of June 30, 2021 was $819,788.

Fiscal years
Ending June 30, Principal Interest Total
2022 1,035,000$ 364,355$ 1,399,355$
2023 925,000 305,038 1,230,038
2024 945,000 283,533 1,228,533
2025 965,000 261,568 1,226,568
2026 990,000 239,085 1,229,085
2027-2031 5,315,000 838,638 6,153,638
2032-2036 3,400,000 278,415 3,678,415
2037-2038 1,185,000 41,340 1,226,340
14,760,000$ 2,611,972$ 17,371,972$
2021 Certificates of Participation
- 35 -

30 BELLFLOWER FINANCING AUTHORITY

NOTES TO BASIC FINANCIAL STATEMENTS

June 30, 2021
NOTE 5 LONG TERM DEBT (Continued):

Annual minimum debt service requirements are as follows:

Fiscal years
Ending June 30, Principal Interest Total
2022 32,328$ 33,646$ 65,974$
2023 33,675 32,299 65,974
2024 35,079 30,895 65,974
2025 36,541 29,433 65,974
2026 38,064 27,910 65,974
2027-2031 215,477 114,393 329,870
2031-2035 264,279 65,591 329,870
2036-2040 164,345 13,817 178,162
819,788$ 347,984$ 1,167,772$
Note Direct Borrowing
- 36 -

REQUIRED SUPPLEMENTARY INFORMATION

- 37 -

Original Final

REVENUES
Lease revenue 917,286$ 1,253,938$ 952,568$ (301,370)$ Investment earnings - 2,700 109 (2,591) Total Revenues 917,286 1,256,638 952,677 (303,961)

EXPENDITURES
Debt service:

Principal payments 815,233 1,122,931 1,122,931 - Interest and fiscal charges 640,769 406,598 549,484 (142,886) Total Expenditures 1,456,002 1,529,529 1,672,415 (142,886) Excess (Deficiency) of Revenues
Over Expenditures (538,716) (272,891) (719,738) (446,847) Other Financing Sources (Uses)
Proceeds from issuance of debt - 14,760,000 14,760,000 - Payment to refunded debt escrow - (14,577,183) (14,575,354) 1,829 Total other financing sources (uses)- 182,817 184,646 1,829 Net Change in Fund Balance (538,716) (90,074) (535,092) (445,018)

Fund Balance, Beginning of Fiscal year 551,755 551,755 551,755 - Fund Balance, End of the Fiscal Year 13,039$ 461,681$ 16,663$ (445,018)$ For the fiscal year ended June 30, 2021
31 BELLFLOWER FINANCING AUTHORITY

SCHEDULE OF REVENUES, EXPENDITURES, AND

CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
Variance
with Final
Budget
Positive
(Negative)
Budgeted Amounts Actual
Amounts

GENERAL FUND
- 38 -

OTHER SUPPLEMENTAL INFORMATION

- 39 -

Transportation
Bond
Project

REVENUES
Lease revenue 721,069$
Total revenues 721,069

EXPENDITURES
Principal retirement 478,095
Interest and other charges 342,590
Total expenditures 820,685
Excess (deficiency) of revenues over expenditures (99,616)

OTHER FINANCING SOURCES (USES)
Bond proceeds 8,685,000
Payment to refunded debt escrow (8,576,905)
Total other financing sources (uses) 108,095
Net change in activity 8,479
For the fiscal year ended June 30, 2021

BELLFLOWER FINANCING AUTHORITY

TRANSPORTATION BONDS PROJECT SUPPLEMENTAL SCHEDULE
32 - 40 -

33 OFFICES: BEVERLY HILLS ∙ CULVER CITY ∙ SANTA MARIA

MEMBER AMERICAN INSTITUTE OF C.P.A.’S ∙ CALIFORNIA SOCIETY OF MUNICIPAL FINANCE OFFICERS ∙ CALIFORNIA ASSOCIATION OF SCHOOL BUSINESS OFFICIALS

PARTNERS COMMERCIAL ACCOUNTING & TAX SERVICES GOVERNMENTAL AUDIT SERVICES RONALD A LEVY, CPA 9465 WILSHIRE BLVD., 3RD FLOOR 5800 HANNUM, AVE, SUITE E CRAIG A HARTZHEIM, CPA BEVERLY HILLS, CA 90212 CULVER CITY, CA 90230 HADLEY Y HUI, CPA TEL: 310.273.2745 TEL: 310.670.2745 ALEXANDER C. HOM, CPA www.mlhcpas.com FAX: 310.670.1689

ADAM V GUISE, CPA
TRAVIS J HOLE, CPA www.mlhcpas.com

INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER

FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED

ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE

WITH GOVERNMENT AUDITING STANDARDS

The Honorable Board of Directors of the
Bellflower Financing Authority
Bellflower, California

We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities and the major fund of the Bellflower Financing Authority (the Authority), as of and for the fiscal year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the Authority’s basic financial statements, and have issued our report thereon dated January 24, 2022.

Internal Control Over Financial Reporting

In planning and performing our audit of the financial statements, we considered the Authority's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Authority’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Authority's internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the Authority’s financial statements will not be prevented or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be a material weakness.

However, material weaknesses may exist that have not been identified.

- 41 -

34 Compliance and Other Matters

As part of obtaining reasonable assurance about whether the Authority's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of this Report

The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Authority’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Authority’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Moss, Levy & Hartzheim, LLP
Culver City, California
January 24, 2022
- 42 -

14-C
TO: Honorable Mayor and Members of the City Council

ATTENTION: Jeffrey L. Stewart, City Manager

FROM: Mayra Ochiqui, City Clerk

SUBJECT: Consideration and possible action to adopt Resolution No. 22-7 – A Resolution designating the Alternate Director to Los Angeles County Sanitation Districts Nos. 2, 3, and 18; and superseding Resolution No. 19-92.

DATE: February 14, 2022

EXECUTIVE SUMMARY

The Appointment of the Alternate Director to the Los Angeles County Sanitation Districts is currently any Council Member appointed by the City Council, per Resolution No. 19-92 (Adopted December 10, 2019). At the Adjourned Regular City Council Meeting on January 13, 2022, the City Council directed staff to prepare the necessary documents to automatically designate the Mayor Pro Tem to serve as the Alternate Director, as was designated in years prior to 2019. The proposed Resolution would designate the Mayor Pro Tem to serve as the Alternate Director on the Boards of Directors to the Los Angeles County Sanitation Districts.

RECOMMENDATION TO CITY COUNCIL

1) Adopt Resolution No. 22-7; or

2) Alternatively, discuss and take other action related to this item.

FISCAL IMPACT

None

ATTACHMENT

Resolution No. 22-7......................................................................................................... 2

-1-

CITY OF BELLFLOWER

RESOLUTION NO. 22-7

A RESOLUTION DESIGNATING THE ALTERNATE

DIRECTOR TO LOS ANGELES COUNTY SANITATION
DISTRICTS NOS. 2, 3, AND 18, AND SUPERSEDING
RESOLUTION NO. 19-92

THE CITY COUNCIL RESOLVES AS FOLLOWS:

SECTION 1. California Health and Safety Code Section 4730 states that the presiding officer of a city, all or part of which is on a Sanitation District, is a member of the Board of Directors of that District.

SECTION 2. The City of Bellflower is part of Sanitation Districts Nos. 2, 3, and 18. Sanitation District Nos 2 and 3 currently meet on the second Wednesday of each month and District Nos. 2 and 18 currently meet on the fourth Wednesday of each month.

SECTION 3. The City Council chooses its Mayor from among its membership by majority vote annually in December during City Council Reorganization.

SECTION 4. Pursuant to the provisions of Section 4730 et. seq. of the Health and Safety Code of the State of California, the Mayor Pro Tem is the alternate for the City of Bellflower’s Director to Los Angeles County Sanitation Districts Nos. 2, 3, and 18 of Los Angeles County to act in the place of the presiding officer of the City Council during his/her absence, inability, or refusal to act as a member of said Boards of Directors.

SECTION 5. The City Clerk is directed to transmit a certified copy of this Resolution to the Secretary to the Boards, County Sanitation Districts of Los Angeles County.

SECTION 6. This Resolution does not affect any penalty, forfeiture, or liability incurred before, or preclude prosecution and imposition of penalties for any violation occurring before, this Resolution’s effective date. Any such amended part will remain in full force and effect for sustaining action or prosecuting violations occurring before the effective date of this Resolution.

SECTION 7. If any part of this Resolution or its application is deemed invalid by a court of competent jurisdiction, the City Council intends that such invalidity will not affect the effectiveness of the remaining provisions or applications and, to this end, the provisions of this Resolution are severable.

Page 1 of 2 ends

Bellflower City CouncilFebruary 14, 2022

Bellflower City Council
February 14, 2022