Agenda packet — Bellflower City Council, May 11, 2026 (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.ca.gov

Next CC Resolution No. 26-17 Next CC Agreement No. 1139 Next Ordinance No. 1457

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, extension 2220 or [email protected]. 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.ca.gov 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
MONDAY, MAY 11, 2026

BELLFLOWER CITY HALL - COUNCIL CHAMBERS
5:30 P.M. CLOSED SESSION / 7:00 P.M. OPEN SESSION

5:30 P.M. – CLOSED SESSION

1 CALL TO ORDER
2 ROLL CALL: Mayor Sonny R. Santa Ines
Mayor Pro Tem Victor A. Sanchez
Council Member Ray Dunton
Council Member Dan Koops
Council Member Wendi Morse

Page 1 of 5 ends

AGENDA

Bellflower City Council Agenda
May 11, 2026

Page 2 of 5 ends

3 RECESS TO CLOSED SESSION

A CONFERENCE WITH REAL PROPERTY NEGOTIATOR
(Pursuant to Government Code § 54956.8)

Property: 10030 Flora Vista Street (APN is 7109-009-011) Agency Negotiator: Ryan Smoot, City Manager
Negotiating Party: Chris J. Kim, Property Owner
Under Negotiation: Price and terms of payment

4 RECONVENE FOR OPEN SESSION

7:00 P.M. – OPEN SESSION

5 CALL TO ORDER

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

7 INVOCATION: Council Member Wendi Morse

8 PLEDGE OF ALLEGIANCE: Elizabeth Oba, Director of Planning and Building Services

9 REQUEST TO APPEAR REMOTELY

None

10 CITY COUNCIL ANNOUNCEMENTS / PRESENTATIONS

A City Council Announcements

B Presentation: Certificate of Recognition to Parks and Recreation Commissioner Mitch Haack

C Proclamation Declaring May 17 – 23, 2026, as “National Public Works Week”

D Proclamation Declaring the month of May as “Asian American and Pacific Islander Month”

E Presentation and Proclamation Declaring May as “CalFresh Awareness Month”

Bellflower City Council Agenda
May 11, 2026

Page 3 of 5 ends

11 PUBLIC COMMENTS

This is the time set aside for the public to address the City Council on matters not listed on the Agenda. Anyone wishing to address the City Council should come to the podium, be recognized by the Mayor, and state your name for the record. If you wish to address the City Council on an Agenda Item, you may do so by approaching the podium as we review that particular item. You will be given three (3) minutes to address the City Council.

12 PUBLIC HEARINGS

A Consideration and possible action to conduct a public hearing to consider The Medicine Woman Group, LLC’s appeal of the Tax Administrator’s final determination related to the audit of dispensary operations for calendar years 2022–2024. ________________________________________________ Recommendation to City Council: 1) Open the public hearing; take testimonial and documentary evidence; and, after considering the evidence, uphold the Tax Administrator’s Administrative Decision dated April 15, 2026, in full, confirming that all assessed taxes, penalties, interest, and audit costs are due and payable; and 2) Direct staff to proceed with all authorized collection and enforcement actions if payment is not remitted promptly; or 3) Alternatively, discuss and take other action related to this item.

13 ORDINANCES AND RESOLUTIONS FOR CONSIDERATION

None

14 CONSIDERATION ITEMS

A Consideration and possible action to authorize the City Manager to execute Agreement File No. 572.3, in a form approved by the City Attorney, with Kingdom Causes Bellflower to provide coordinated homeless outreach, case management, and community mobilization services to assist those experiencing homelessness, and approve a budget amendment to fund services for FY 26/27.

Recommendation to City Council: 1) Authorize the City Manager to execute Agreement File No. 572.3, in a form approved by the City Attorney; and 2) Approve a budget amendment to carry forward an estimated $24,000 in anticipated unspent funds from the Drug Education Fund Rapid Rehousing and Homeless Prevention Account 037-44802-2510 from FY 2025-26 to FY 2026-27, and transfer $53,500 from the unfilled Sheriff Motor Deputy position 010-42173-2200 to the Rapid Rehousing and Homeless Prevention – Public Safety Support Services Account 010-44802-2230; or 3) Alternatively, discuss and take other action related to this item.

Bellflower City Council Agenda
May 11, 2026

Page 4 of 5 ends

14 CONSIDERATION ITEMS – Continued

B Consideration and possible action to select and approve a design concept for pedestrian improvements on Coke Avenue between Artesia Boulevard and the south City Limit.

Recommendation to City Council: 1) Approve one of the two design options presented for installation of sidewalk on Coke Avenue between Artesia Boulevard and the south City Limit; or 2) Alternatively, discuss and take other action related to this item.

15 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 Warrant Register No. 26-111, dated May 11, 2026.

Recommendation to City Council: 1) Receive and file Warrant Register No. 26-111; or 2) Alternatively, discuss and take other action related to this item.

B Consideration and possible action to approve the reappointment of Chamber of Commerce’s nominee Larry Wehage to the Southeast Los Angeles County Workforce Development Board (SELACO WDB) for the term ending June 2028.

Recommendation to City Council: 1) Approve the appointment of Chamber of Commerce’s nominee Larry Wehage to the SELACO WDB for the term ending June 2028; or 2) Alternatively, discuss and take other action related to this item.

C Consideration and possible action to adopt Resolution No. 26-16 – A Resolution declaring unclaimed monies as property of the City of Bellflower and transferring it to the City’s General Fund pursuant to Government Code § 50053.

Recommendation to City Council: 1) Adopt Resolution No. 26-16; and 2) Approve a budget amendment authorizing the transfer of escheated substation rent checks to the General Fund Capital Projects Fund for the future Public Safety Facility; or or 3) Alternatively, discuss and take other action related to this item.

D Consideration and possible action to authorize the City Manager to execute Agreement File No. 1090.4, in a form approved by the City Attorney, with Ambros Construction, Inc., for on-call maintenance services and minor improvement services.

Recommendation to City Council: 1) Authorize the City Manager to execute Agreement File No. 1090.4, in a form approved by the City Attorney; or 2) Alternatively, discuss and take other action related to this item.

Bellflower City Council Agenda
May 11, 2026

Page 5 of 5 ends

15 CONSENT CALENDAR – Continued

E Consideration and possible action to authorize the City Manager to execute Amendment No. 2 to AFN 230.3 with West Coast Arborists, Inc., in a form approved by the City Attorney, for tree maintenance services._____________ Recommendation to City Council: 1) Authorize the City Manager to execute Amendment No. 2 to AFN 230.3, in a form approved by the City Attorney, with West Coast Arborists, Inc.; or 2) Alternatively, discuss and take other action related to this item.

F Consideration and possible action to approve the Minutes of the April 13, 2026, Regular Meeting of the City Council.

Recommendation to City Council: 1) Approve the April 13, 2026, Regular Meeting Minutes; or 2) Alternatively, discuss and take other action related to this item.

G Consideration and possible action to approve the Minutes of the April 23, 2026, Special Meeting of the City Council.

Recommendation to City Council: 1) Approve the April 23, 2026, Special Meeting Minutes; or 2) Alternatively, discuss and take other action related to this item.

16 COUNCIL REPORTS

17 ADJOURNMENT

Adjourn to the next Regular Meeting of the Bellflower City Council at 5:30 p.m. on Tuesday, May 26, 2026.

STATE OF CALIFORNIA

COUNTY OF LOS ANGELES ) SS

CITY OF BELLFLOWER
I, Jennifer Russell, Management Assistant, of the City of Bellflower, do hereby declare under penalty of perjury, that the Agenda for the Regular Meeting of the Bellflower City Council to be held on Monday, May 11, 2026, at 5:30 p.m., was posted Thursday, May 7, 2026, at the following locations in the City of Bellflower:

City HaII Lobby and Doors, 16600 Civic Center Drive
City Website at www.bellflower.orq
Clifton M. Brakensiek Library
Executed this 7th day of May 2026 at Bellflower, California.

Jennif Russ
Management Assistant

C' of LtFLOw�R

SPEAKER SIGN -IN SHEET
(Voluntary)

BELLFLOWER CITY COUNCIL REGULAR MEETING
May 11 2026

PLEASE PRINT LEGIBLY
NAME
C� �i2YL )/GU9*#
CAdeAla ;tr. -No 9creA0-;
ii\NeVw L7(A/\

ORGANIZATION
(if applicable)
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1 Mayra Ochiqui
From:Jennifer McGrath
Sent:Thursday, May 7, 2026 5:29 PM
To:Sonny Santa Ines; Victor Sanchez; Dan Koops; Raymond Dunton; Wendi Morse; Mayra Ochiqui; City Clerk
Cc:[email protected]; TMW; Charis Burrett; [email protected]; Brandon Scadron; Berger, Karl H.; Campen, Timothy E.; Ryan Smoot; Wangsu Lee Subject:Late Communication for meeting of May 11, 2026 / Request for Continuance to May 25, 2026
Follow Up Flag:Flag for follow up
Flag Status:Flagged
Honorable Mayor Santa Ines and Member of the City Council -

I am writing on behalf of our client, The Medicine Woman Group, LLC, regarding a public hearing scheduled for your regularly scheduled City Council meeting of May 11, 2026 entitled "CITY OF BELLFLOWER NOTICE OF PUBLIC HEARING APPEAL OF TAX ADMINISTRATOR’S FINAL DETERMINATION THE MEDICINE WOMAN GROUP, LLC."

The Medicine Women Group, LLC, received the minimum notice required by the Bellflower Municipal Code after 5 p.m. on Wednesday, May 6, 2026. My staff and myself have a pre-existing commitment out of town and are unable to attend the hearing.

The Bellflower Municipal Code 3.37.180(C) specifically contemplates a continuance based on mutual consent.

After unsuccessful attempts with both internal staff and your City Attorney to have the hearing continued to May 25, 2026, I am contacting you directly with this request.

As notices were not sent to anyone else in the public and the agenda has only just been published at the time of this email, there is no prejudice to the City or members of the community in granting a continuance. The City Clerk has adequate time to post a revised agenda identifying the continuance of the item. The item can be continued to May 25, 2026, without opening the public hearing.

In the absence of a continuance, The Medicine Woman Group, LLC, will not be afforded the fair hearing to which it is entitled.

Please advise if a continuance can be facilitated in advance of the meeting through the City Manager's Office.

Jennifer McGrath
Law Offices of Jennifer McGrath
7755 Center Avenue, Suite 1100
Huntington Beach CA 92647
(714) 231-2124
https://www.jennifermcgrath.com/

2 This email has been scanned for spam and viruses by Proofpoint Essentials. Click here to report this email as spam.

1 Mayra Ochiqui
From:Campen, Timothy E.

Sent:Thursday, May 7, 2026 6:13 PM
To:Jennifer McGrath; Sonny Santa Ines; Victor Sanchez; Dan Koops; Raymond Dunton; Wendi Morse; Mayra Ochiqui; City Clerk
Cc:[email protected]; TMW; Charis Burrett; [email protected]; Brandon Scadron; Berger, Karl H.; Ryan Smoot; Wangsu Lee
Subject:RE: Late Communication for meeting of May 11, 2026 / Request for Continuance to May 25, 2026
Follow Up Flag:Flag for follow up
Flag Status:Flagged
Dear Ms. McGrath,

As I indicated on our text exchange on this matter, I am providing you here with information relating to the City providing an accommodation, as you requested due to “being out of town,” concerning The Medicine Woman’s appearance before the Bellflower City Council at its regularly scheduled meeting this Monday, May 11, 2026, concerning your appeal of the Tax Administrator’s Final Determination.

The City will provide The Medicine Woman with the opportunity to appear at the appeal hearing remotely via videoconference (Zoom or Microsoft Teams), if you choose to do so, in lieu of personal appearance in Council Chambers. Remote appearance can be for all participants on behalf of The Medicine Woman or a combination of personal and remote appearance. The City anticipates having at least one witness appear via video conference.

If you choose to use this accommodation, please provide the name, email address, and phone number for each person who will be appearing remotely . In those cases where more than one participant will be appearing on the same camera/connection, please identify each such person per connection and who among them is the direct contact regarding any technical logistics related to the video conferencing.

Please be advised that any remote appearance on behalf of either The Medicine Woman or the City is done at their own risk. Any technical issues with the video conferencing system, regardless of the cause or origin, should not be expected to result in any continuance of this appeal hearing. You should plan accordingly.

Please let me know if you have any questions on the logistics of appearing via video conference. Beyond that, this correspondence represents the City’s final response regarding your request for accommodation. As previously advised, you are free to request a continuance of the appeal hearing from the City Council at the hearing on Monday, if you choose.

Sincerely,

Timothy E. Campen | Partner
Burke, Williams & Sorensen, LLP

2 501 West Broadway - Suite 1600, San Diego, CA 92101
D 619.814.5810 | O 619.814.5800 | F 619.814.6799 | M 619.861.7707 [email protected] | vCard | Bio | bwslaw.com

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The information contained in this e-mail message is intended only for the CONFIDENTIAL use of the designated addressee named above. The information transmitted is subject to the attorney-client privilege and/or represents confidential attorney work product. Recipients should not file copies of this email with publicly accessible records. If you are not the designated addressee named above or the authorized agent responsible for delivering it to the designated addressee, you received this document through inadvertent error and any further review, dissemination, distribution or copying of this communication by you or anyone else is strictly prohibited. IF YOU RECEIVED THIS COMMUNICATION IN ERROR, PLEASE NOTIFY US IMMEDIATELY BY TELEPHONING THE SENDER NAMED ABOVE AT 800.333.4297. Thank you.

From: Jennifer McGrath
Sent: Thursday, May 7, 2026 5:29 PM
To: [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; Mayra Ochiqui ; City Clerk
Cc: [email protected]; TMW ; Charis Burrett ; [email protected]; Brandon Scadron ; Berger, Karl H. ; Campen, Timothy E. ; Ryan Smoot ;
Wangsu Lee
Subject: Late Communication for meeting of May 11, 2026 / Request for Continuance to May 25, 2026

[EXTERNAL]
Honorable Mayor Santa Ines and Member of the City Council -

The Bellflower Municipal Code 3.37.180(C) specifically contemplates a continuance based on mutual consent.

After unsuccessful attempts with both internal staff and your City Attorney to have the hearing continued to May 25, 2026, I am contacting you directly with this request.

In the absence of a continuance, The Medicine Woman Group, LLC, will not be afforded the fair hearing to which it is entitled.

3 Please advise if a continuance can be facilitated in advance of the meeting through the City Manager's Office.

Jennifer McGrath
Law Offices of Jennifer McGrath
7755 Center Avenue, Suite 1100
Huntington Beach CA 92647
(714) 231-2124
https://www.jennifermcgrath.com/

This email has been scanned for spam and viruses by Proofpoint Essentials. Click here to report this email as spam.

1 Mayra Ochiqui
From:Jennifer McGrath
Sent:Friday, May 8, 2026 5:34 PM
To:Sonny Santa Ines; Victor Sanchez; Dan Koops; Raymond Dunton; Wendi Morse; Mayra Ochiqui; City Clerk
Cc:[email protected]; TMW; Charis Burrett; [email protected]; Brandon Scadron; Berger, Karl H.; Campen, Timothy E.; Ryan Smoot; Wangsu Lee Subject:Late Communication re: Agenda Item #12A; May 11, 2026 Attachments:Executed Declaration with Exhibits 2.23.26.pdf Honorable Mayor Santa Ines and Member of the City Council -

Please see the attached Declaration of Charis Burrett, Chief Executive Officer of The Medicine Woman Group LLC. This document was originally submitted with the Opposition Brief before the Tax Administrator hearing; however, Staff did not include it in the Staff Report distributed as part of the agenda materials.

Jennifer McGrath
Law Offices of Jennifer McGrath
7755 Center Avenue, Suite 1100
Huntington Beach CA 92647
(714) 231-2124
https://www.jennifermcgrath.com/

This email has been scanned for spam and viruses by Proofpoint Essentials. Click here to report this email as spam.

1 2
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JENNIFER McGRATH (SBN 179917)
EDWARD PINCHIFF (SBN 137183)
Law Offices of Jennifer McGrath
9114 Adams Ave ., #264
Huntington Beach, CA 92646
Phone : (714) 231-2124
Attorneys for

THE MEDICINE WOMAN GROUP, LLC

CITY OF BELLFLOWER
11 In the Matter of the Bellflower City Tax
Assessment against
12 13 THE MEDICINE WOMAN GROUP, LLC
14 dba The Medicine Woman,

DECLARATION OF CHARIS

BURRETT IN SUPPORT OF

OBJECTION TO TAX ASSESSMENT

AGAINST THE MEDICINE WOMAN

GROUPLLC
15 16
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21 22
23 24
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27 28
Date :

Time:

Place :

February 24, 2026
1:00 p.m.

Bellflower City Hall

DECLARATION OF CHARIS BURRETT

1. I am the Chief Executive Officer of THE MEDICINE WOMAN GROUP LLC dba The Medicine Woman ("TMW"). I submit this declaration in support ofTMW's Objections to the City of Bellflower's ("City") Tax Assessment against TMW and the findings in the Cannabis Tax Report of Examination for Calendar Years 2022-2024 prepared by Avenu Insights and Analytics dated November 24, 2025. The facts herein are within my personal knowledge, except as to those stated on information and belief, and if called and sworn as a witness, I could and would competently testify thereto .
nP.rTAR ATJ()N OF rHARlS RllRRP.TT 1N SUPPORT OF ORlFri'mN TO TAX ASSP.SSMPNT An A INST THP

1 2. I am familiar with TMW's recordkeeping practices. TMW utilizes a point-of-sale 2 software system provided by Treez for inventory control, sales, purchasing, METRC 3 compliance, and reporting. Data is entered into the Treez software system in the regular course 4 of business at or near the time of the act, condition, or event. 5 3 . From that software system, I requested General Manager Brandon Scandon to create the 6 attached reports in support of the Objections filed by TMW to the City's Tax Assessment against 7 TMW and the Cannabis Tax Report of Examination dated November 24, 2025 . The exhibits to 8 this Declaration are true and correct copies of those reports and I certify the authenticity of these 9 business records ofTMW.
10 4. The true and correct cannabis product net sales for all audit reporting periods for TMW 11 is identified in the fourth column labeled "Net" of Exhibit A. 12 5. The true and correct non-cannabis product net sales for all audit reporting periods for 13 TMW is identified in the fifth column labeled "Non Cannabis Net" of Exhibit A and the fourth 14 column labeled "Net" of Exhibit B.
15 6. The true and correct delivery fees for all audit reporting periods for TMW is identified in 16 the first column labeled "Fees Collected" of Exhibit C. 17 I declare under penalty of perjury under the laws of the State of California that the 18 foregoing is true and correct. Executed on February 2 19 20
21 22
23 24
25 26
27 28
Charis B ett, Chief Executive Officer
The Medicine Woman Gro1:1p LLC
OF.C'T.AR ATION OF C'HARTS RTJRRF.TT TN STTPPORT OF ORTF.C'TTONTO TAX' ASSP.SSMFNT AOATNSTTHF

EXHIBIT A

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1 EXHIBIT B

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Mayra Ochiqui
From:Jennifer McGrath
Sent:Sunday, May 10, 2026 2:02 PM
To:Sonny Santa Ines; Victor Sanchez; Dan Koops; Raymond Dunton; Wendi Morse; Mayra Ochiqui; City Clerk
Cc:[email protected]; TMW; Charis Burrett; [email protected]; Brandon Scadron; Berger, Karl H.; Campen, Timothy E.; Ryan Smoot; Wangsu Lee Subject:Re: Late Communication for meeting of May 11, 2026 / Request for Continuance to May 25, 2026
Attachments:Late Communication 5.10.26 with attachments.pdf Follow Up Flag:Flag for follow up
Flag Status:Flagged
Please see the additional Late Communication attached to this email.

Jennifer McGrath
Law Offices of Jennifer McGrath
7755 Center Avenue, Suite 1100
Huntington Beach CA 92647
(714) 231-2124
https://www.jennifermcgrath.com/

On Thu, May 7, 2026 at 6:13 PM Campen, Timothy E. wrote:

Dear Ms. McGrath,

If you choose to use this accommodation, please provide the name, email address, and phone number for each person who will be appearing remotely . In those cases where more than one

2 participant will be appearing on the same camera/connection, please identify each such person per connection and who among them is the direct contact regarding any technical logistics related to the video conferencing.

Sincerely,

To help protect your privacy, Microsoft Office prevented automatic download of this picture from the Internet.photo

From: Jennifer McGrath
Sent: Thursday, May 7, 2026 5:29 PM

3 To: [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; Mayra Ochiqui ; City Clerk

Cc: [email protected]; TMW ; Charis Burrett ; [email protected]; Brandon Scadron ; Berger, Karl H. ; Campen, Timothy E. ; Ryan Smoot ;
Wangsu Lee
Subject: Late Communication for meeting of May 11, 2026 / Request for Continuance to May 25, 2026

[EXTERNAL]
Honorable Mayor Santa Ines and Member of the City Council -

The Bellflower Municipal Code 3.37.180(C) specifically contemplates a continuance based on mutual consent.

After unsuccessful attempts with both internal staff and your City Attorney to have the hearing continued to May 25, 2026, I am contacting you directly with this request.

In the absence of a continuance, The Medicine Woman Group, LLC, will not be afforded the fair hearing to which it is entitled.

4 Please advise if a continuance can be facilitated in advance of the meeting through the City Manager's Office.

Jennifer McGrath
Law Offices of Jennifer McGrath
7755 Center Avenue, Suite 1100
Huntington Beach CA 92647
(714) 231-2124
https://www.jennifermcgrath.com/

LAW OFFICES OF

JENNIFER MCGRATH

9114 Adams Avenue #264, Huntington Beach, CA 92646
714.231.2124 | [email protected]

City of Bellflower May 10, 2026
16600 Civic Center Drive via email only Bellflower, CA 90706

RE: Late Communication re: Agenda Item #12A; May 11, 2026

Honorable Mayor Santa Ines and Members of the City Council -

With respect to Agenda Item #12A of the City Council meeting on May 11, 2026, please see the attached documents which appellant The Medicine Woman Group, LLC (TMW) is providing in further support of its position that:

1) Amounts collected by TMW from its customers for the City's cannabis tax should not be included in taxable gross income;

2) Sales of non-cannabis items should not be subject to the city cannabis tax.

The attached documents are:

a) City of Bellflower Resolution No. 16-80, approved and adopted by the City Council on November 28, 2016, which is a resolution adding the Bellflower cannabis tax proposition (Measure B) to the March 7, 2017 general municipal election. Exhibit A of the Resolution is the full text of the ballot measure.

b) The Impartial Analysis of Measure B prepared by the Bellflower City Attorney's office (obtained from Ballotpedia at
https://ballotpedia.org/Bellflower,_California,_Marijuana_Tax,_Measure_B_(March_201 7).

Both of these documents support TMW's position. The plain language of Measure B presents the Measure as a cannabis tax and nowhere in the text of the Measure is it stated or implied that the cannabis tax should apply to amounts collected by TMW from its customers for the City's cannabis tax (a tax on tax). Nor does the plain language state or imply that the cannabis tax should be applied to non-cannabis items.

The Impartial Analysis of Measure B prepared by the Bellflower City Attorney's office also supports TMW's position and the plain language reading of the Measure B text.

The Impartial Analysis states that Measure B "authorizes imposition of an annual tax upon all commercial cannabis activities...". Bellflower Municipal Code section

8.48.040 defines "commercial cannabis activity" as including "cultivation, possession, manufacture, processing, storing, laboratory testing, labeling, transporting, distribution, or sale of cannabis or a cannabis product.” (Emphasis added.)

The City of Bellflower cannot impose a cannabis tax that goes beyond what was authorized by the voters in Measure B. The City cannot impose a tax on taxes, nor can it impose a tax on non-cannabis items.

TMW encourages the City Council to carefully review these materials as well as the "Objection to Tax Assessment; Hearing Brief by the Medicine Woman Group, LLC." The Objection & Hearing Brief outline the history of this matter and TMW's legal arguments.

Please also take note of the procedural defects in the tax assessment and notice of the tax assessment detailed in the Hearing Brief at page 3 line 21 through page 4 line 13.

TMW has not and does not waive any procedural defects which, in addition to the legal arguments, are fatal to the tax assessment.

The City Council should grant the appeal of TMW and reject the Tax Administrator's Decision upholding the revised cannabis business tax assessment. The City Council should issue findings that 1) amounts collected by TMW from its customers for the City's cannabis tax should not be included in taxable gross income, and 2) sales of non- cannabis items should not be subject to the city cannabis tax.

Sincerely,

Jennifer McGrath, Esq.

Attachment:

A. City of Bellflower Resolution No. 16-80
B. Impartial Analysis of Measure B prepared by the Bellflower City Attorney's office

S. Santa Ines
V. Sanchez
D. Koops
R. Dutton
W. Morse
Mayra Ochiqui
City Clerk [email protected]
Ryan Smoot
Wangsu Lee [email protected]
Karl H. Berger [email protected]
Timothy Campen

CITY OF BELLFLOWER
RESOLUTION NO. 16-80

A RESOLUTION ADDING A PROPOSITION TO THE BALLOT FOR THE PREVIOUSLY CALLED MARCH 7, 2017, GENERAL MUNICIPAL
ELECTION PURSUANT TO ELECTIONS CODE § 9222, FOR THE

SUBMISSION TO THE VOTERS A PROPOSITION WHICH WOULD

IMPOSE A NEW TAX UPON CANNABIS -RELATED BUSINESSES
THE CITY COUNCIL RESOLVES AS FOLLOWS:

SECTION 1. Pursuant to Elections Code § 9222, the City Council places a proposition on the ballot for the regular municipal election scheduled for Tuesday, March 7, 2017, as previously established and implemented by City Council Resolution Nos. 16-76, 16-77, and 16-78 adopted on October 24, 2016.

SECTION 2. A copy of the proposition to be considered by the voters is attached as Exhibit "A," and incorporated by reference.

SECTION 3. Pursuant to Elections Code §§ 9222, 9603, and 13119, the exact form of the question to be voted on at the election as it should appear on the ballot is as follows:

CANNABIS TAX
Shall the proposition imposing a tax on cannabis
related businesses operating within the City of
Bellflower be adopted?
YES
NO
SECTION 4. The City Clerk must certify to the passage and adoption of this Resolution; enter the same in the book of original Resolutions; and make a minute of the passage and adoption thereof in the records of the proceedings of the City Council in the minutes of the meeting at which the same is passed and adopted.

SECTION 5. The Mayor, or presiding officer, is hereby authorized to affix a signature to this Resolution signifying its adoption by the City Council of the City of Bellflower, and the City Clerk, or her duly appointed deputy, is directed to attest thereto.

Page 1 of 2 ends

City of Bellflower
Resolution No. 16-80

Page 2 of 2 ends

SECTION 6. This Resolution will become effective immediately upon adoption.

PASSED, APPROVED, AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF BELLFLOWER ON THIS 28TH DAY OF NOVEMBER, 2016.

Dan Koops, Mayor
Attest:
l
Mayr O hiqui, City Cler,

APPROVED R
Karl . Berger, City orney
Attachment:

Exhibit A — Full Tof the Ballot Measure

EXHIBIT A

FULL TEXT OF THE BALLOT MEASURE

CITY OF BELLFLOWER
ORDINANCE NO. 1324

A PROPOSITION ADOPTING AN ORDINANCE TO APPROVE
ARTICLE II OF CHAPTER 3.37 TO TITLE 3 OF THE BELLFLOWER MUNICIPAL CODE ENTITLED "CANNABIS TAX" AND IMPOSING A
TAX ON VARIOUS CANNABIS RELATED BUSINESSES.

THE PEOPLE OF THE CITY OF BELLFLOWER DO HEREBY ORDAIN AS FOLLOWS:

SECTION 1. Article II of Chapter 3.37 in Title 3 of the Bellflower Municipal Code ("BMC") , entitled "Cannabis tax," is approved to read as follows:

ARTICLE II — VOTER APPROVED TAX

3.37.040 VOTER APPROVAL REQUIRED.

This Article II of Chapter 3.37 of the Bellflower Municipal Code must be approved by voters in accordance with applicable law.

3.37.050 TAX IMPOSED.

There is established and imposed, beginning July 1, 2017, a cannabis tax in the manner and rates set forth in this chapter.

3.37.060 CANNABIS TAX.

A. Tax on commercial cannabis cultivation except nurseries.

1. Every person who is engaged in commercial cannabis cultivation in the City must pay an annual Cannabis tax. The initial tax rate effective July 1, 2017 for commercial cannabis cultivation, excluding nurseries, is set at $15.00 per fiscal year, per square foot of canopy space authorized by each City permit, or by each state license in the absence of a City permit, not deducting for unutilized square footage. The square footage is the maximum square footage of canopy allowed by the City permit for commercial cannabis cultivation, or, in the absence of a City permit, the square footage is the maximum square footage of canopy for commercial cannabis cultivation allowed by the state license type. In no case can canopy square footage which is authorized by the permit or license, but not utilized for cultivation, be deducted for the purpose of determining the tax for cultivation unless duly authorized in writing by the administrator.

Page 1 of 6 ends

City of Bellflower
Ordinance No. 1324

Page 2 ends

2. Beginning on July 1, 2020, the tax rate will automatically increase each fiscal year by $2.50 per square foot of authorized canopy.

Except as otherwise provided, the maximum tax rate is $25.00 per square foot.

B. Tax on cultivation of cannabis as a nursery.

1. Every person who is engaged in cultivation of cannabis as a nursery as defined in this chapter in the City must pay an annual Cannabis tax. The initial tax rate effective July 1, 2017 is set at

2.00 per square foot of canopy authorized by each City permit, or by each state license in the absence of a City permit, not deducting for unutilized square footage. The square footage is the maximum square footage of canopy allowed by the City permit for cultivation of cannabis as a nursery, or, in the absence of a City permit, the square footage is the maximum square footage of canopy for cultivation of cannabis as a nursery allowed by the state license type. In no case must canopy square footage which is authorized by the permit or license but not utilized for cultivation as a nursery be deducted for the purpose of determining the tax for cultivation as a nursery unless duly authorized in writing by the administrator.

2. Beginning on July 1, 2020, such tax rate will automatically increase each fiscal year by $1.50 per square foot of canopy utilized for cannabis cultivation as a nursery. Except as otherwise provided, the maximum tax rate is $5.00 per square foot per annum.

C. Tax on transportation businesses.

Every person who is engaged in a cannabis transportation business must pay an annual Cannabis tax of $1,500.00 per year effective July 1, 2017.

D. Tax on all other commercial cannabis businesses.

1. Every person who is engaged in business as a dispensary, manufacturer, testing laboratory, or distribution facility, or engaging in delivery of cannabis in the City must pay an annual commercial Cannabis tax. The initial tax rate effective July 1, 2017 is set at 5% of the gross receipts per fiscal year.
2 Beginning on July 1, 2020, the tax rate will automatically increase each fiscal year by 2.5%. Except as otherwise provided, the maximum tax rate is 10% per fiscal year on gross receipts.

City of Bellflower
Ordinance No. 1324

Page 3 of 6 ends

3.37.070 AUTOMATIC TAX INCREASE.

A. Beginning on July 1, 2024, non -gross receipts based taxes imposed by this chapter will be increased annually each July
1st on a percentage basis
using the percentage increase in the consumer price index ("CPI") for all urban consumers as calculated by the United States Department of Labor, Bureau of Labor Statistics, for the Los Angeles -Riverside -Orange County area, for the 12 months ending March
31st
of each year.

Notwithstanding any other provisions of this code, the tax imposed in this chapter will be increased by a minimum of one cent ($0.01) every year for square footage -based or other non -gross receipts based taxes.

3.37.080 REPORTING AND REMITTANCE OF TAX.

A. Each person required by this chapter to remit a tax must file a return to the administrator on forms approved by the administrator on or before the due date. The full amount of the tax owed must be included with the return and filed with the administrator. The administrator is authorized to require such additional information as deemed necessary to determine if the tax is being levied, collected, and remitted in accordance with this chapter.

Pursuant to Revenue and Tax Code § 7284.6, the administrator, and its agents, must maintain such filing returns as confidential information, and not subject to the California Public Records Act.

B. The Cannabis tax imposed by this chapter is imposed on a fiscal year basis and is due and payable in quarterly installments as follows:

1. Each person or business owing a Cannabis tax must, on or before the last day of the month following the close of each fiscal year quarter remit to the administrator the tax due. The tax due is no less than the quarterly installment due, but the taxpayer may at any time pay the tax due for the entire fiscal year.

2. If the Cannabis tax is owed on commercial cannabis cultivation, the square footage tax due is paid based on the square footage of cultivation authorized by the City permit. The tax will not be prorated or adjusted for any reduction in the square footage authorized but not utilized for cultivation unless duly authorized in writing by the administrator. If the cultivation begins in the middle of a fiscal year, the administrator must prorate, in daily increments, the amount due for the fiscal year.

C. Tax statements and payments for all outstanding taxes owed the City are immediately due to the administrator upon cessation of business for any reason.

City of Bellflower
Ordinance No. 1324

Page 4 of 6 ends

D. The administrator may establish shorter reporting and payment periods for any taxpayer as the administrator deems necessary to ensure collection of the tax.

E. The administrator may, as part of administering the tax, modify the form of payment and take such other administrative actions as needed to facilitate collection of the tax.

3.37.090 CONSTITUTIONAL EXEMPTIONS.

A. The tax imposed by this chapter does not apply to:

1. Any person or service when imposition of the tax upon that person or service would violate a federal or state statute, the Constitution of the United States, or the Constitution of the state of California;

2. The city.

B. Except as otherwise provided, any person that is exempt from the tax imposed by this chapter must file an application with the administrator for an exemption. The application for a Tax exemption must be made upon a form approved by the administrator and state those facts, declared under penalty of perjury, which qualify the applicant for an exemption, and include the names of all utility service providers serving that person. If deemed exempt by the administrator, such person must give the administrator timely written notice of any change in utility service providers so that the administrator can properly notify the new utility service provider of the person's Tax exempt status.

C. A person failing to comply with this section is not entitled to a refund of Tax remitted to the administrator from such person as a result of such non-compliance.

3.37.100 SUSPENSION OR REDUCTION.

Nothing in this chapter requires the City Council to collect a tax; the city council may suspend or reduce tax rates imposed by this chapter by resolution after a public hearing.

3.37.110 CITY COUNCIL AUTHORITY TO AMEND.

Unless voter is approval is required by the California Constitution or applicable law, the City Council may exercise all applicable powers set forth in the Government Code including, without limitation, amending this chapter by ordinance upon three affirmative votes by its members. It may, in additional, adopt by ordinance or resolution such additional regulations that may be necessary to implement the purposes of this chapter."

City of Bellflower
Ordinance No. 1324

Page 5 ends

SECTION 2. Environmental Analysis. This Resolution is exempt from review under the California Environmental Quality Act (California Public Resources Code §§ 2100, et seq., "CEQA") and CEQA regulations (14 California Code of Regulations §§ 15000, et seq.) because it establishes rules and procedures to implement government funding mechanisms; does not involve any commitment to a specific project which could result in a potentially significant physical impact on the environment; and constitutes an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. Accordingly, this Resolution does not constitute a "project" that requires environmental review (see specifically 14 CCR § 15378(b)(4-5)).

SECTION 3. Interpretation. This Proposition must be interpreted so as to be consistent with all federal and state laws, rules, and regulations. If any section, sub- section, sentence, clause, phrase, part, or portion of this Proposition is held to be invalid or unconstitutional by a final judgment of a court of competent jurisdiction, such decision does not affect the validity of the remaining portions of this Proposition. The voters declare that this Proposition, and each section, sub -section, sentence, clause, phrase, part, or portion thereof, would have been adopted or passed irrespective of the fact that any one or more sections, sub -sections, sentences, clauses, phrases, part, or portion is found to be invalid. If any provision of this Proposition is held invalid as applied to any person or circumstance, such invalidity does not affect any application of this Proposition that can be given effect without the invalid application.

SECTION 4. Severability. If any portion of this Proposition is held by a court of competent jurisdiction to be invalid, the remainder of the Proposition and the application of such provision to other persons or circumstances will not be affected thereby. We the People indicate our strong desire that: (i) the City Council use its best efforts to sustain and reenact that portion, and (ii) the City Council implement this Proposition by taking all steps possible to cure any inadequacies or deficiencies identified by the court in a manner consistent with the express and implied intent of this Proposition, and then adopting or reenacting such portion as necessary or desirable to allow imposition of the tax.

SECTION 5. Construction. This Proposition must be broadly construed in order to achieve the purposes stated in this Proposition. It is the intent of the voters that the provisions of this Proposition be interpreted or implemented by the City and others in a manner that facilitates the purposes set forth in this Proposition.

SECTION 6. Effective Date. This Proposition will enact and impose a general tax. Accordingly, it will be submitted to a general election on March 7, 2017 for voter approval. If a majority of voters vote in favor of this Proposition, it will become valid and binding ten days after the date that the City Council certifies the election results in accordance with Elections Code § 9217.

City of Bellflower
Ordinance No. 1324

Page 6 ends

SECTION 7. City Council Authority. BMC Chapter 3.37 may be repealed or amended by a majority of the City Council without voter approval. However, voter approval is required for any amendment that would increase the rate of any tax levied pursuant to this Proposition as required by California Constitution Article XIIIC. Should the provisions of Government Code § 53720, et seq. or California Constitution Article XIIIC be repealed or amended, or interpreted by the courts so that voter approval is not required for enacting this Proposition, then this Proposition will take effect as provided for all other City ordinances and may be amended in the same manner as all other City ordinances.

SECTION 8. Effective Date. The Mayor will sign this Proposition and the City Clerk will attest and certify to the passage and adoption of this Ordinance if a majority of the voters voting in the City's general election on March 7, 2017 approve the Proposition.

I HEREBY CERTIFY MEASURE _ (ORDINANCE NO. 1324) WAS PASSED,

APPROVED, AND ADOPTED BY THE VOTE OF THE PEOPLE OF THE CITY OF

BELLFLOWER ON
Mayor
Attest:

City Clerk
APPROVED AS TO FORM:

City Attorney

STATE OF CALIFORNIA

COUNTY OF LOS ANGELES )SS

CITY OF BELLFLOWER
I, Mayra Ochiqui, City Clerk of the City of Bellflower, California, do hereby certify under penalty of perjury that the foregoing Resolution No. 16-80 was duly passed, approved, and adopted by the City Council of the City of Bellflower at its Regular Meeting of November 28, 2016, by the following vote to wit:

AYES: Council Members — Garza, Santa Ines, Schnablegger, Dunton, and Mayor Koops
Dated: November 29, 2016
Mayra Ocrfiiqui, City Clerk
City of Bellflower, California
SEAL)

Impartial analysis
The following impartial analysis of Measure B was provided by the office of the Bellflower city attorney:[3]
“Measure B is a proposition placed on the ballot by the Bellflower City Council. If approved by voters, Measure B would impose a new general tax upon cannabis businesses operating within the City of Bellflower including commercial cultivation, distribution, manufacturing, and retail sales. All tax revenue derived from the tax would be deposited in the City’s General Fund.

Measure B itself does not authorize or permit cannabis business activities. Rather, beginning July 1, 2017, it authorizes imposition of an annual tax upon all commercial cannabis activities authorized by separate City Council action and state law.

For commercial cannabis cultivation (except for nurseries) the tax would be $15.00 per fiscal year, per square foot of authorized space. Commencing July 1, 2020, this tax will increase each fiscal year by $2.50 per square foot until it reaches a maximum annual tax rate of $25.00 per square foot. For nurseries, the tax would be $2.00 per square foot of authorized space.

Beginning July 1, 2020, this tax will increase each fiscal year by $1.50 per square foot until it reaches a maximum annual tax rate of $5.00 per square foot.

Every person transporting cannabis or cannabis products from one permitted business location of one permittee to another must pay an annual tax of $1,500.00 per year.

Every person who operates a dispensary, manufacturing facility, testing laboratory, or distribution facility, or engages in delivery of cannabis in the City must pay an initial annual tax of 5% of the gross receipts per fiscal year. That rate would increase on July 1, 2020 (and for each fiscal year thereafter) by 2.5% until it reaches an annual maximum tax rate of 10%.

Beginning July 1, 2024, and continuing each July 1st thereafter, non-gross receipt based cannabis taxes (cultivation, nurseries, and transportation) would increase based upon the consumer price index.

There is no sunset clause on the taxes. All the taxes implemented by Measure B may be suspended or reduced by City Council action. Any other increase of the tax would require voter approval.

Measure B would impose a “general tax.” Therefore, all tax revenue would be available for use by the City to pay for general City operations and services. The City would not be legally bound in any way to use the tax monies for any special purpose or for any particular facilities or programs. Since this ballot measure proposes a “general tax” rather than a “special tax,” it requires approval by a simple majority of the City’s voters.

A “yes” vote on Measure B favors the Measure. A “no” vote on Measure B opposes the Measure.[2]

1 Mayra Ochiqui
From:Berger, Karl H.

Sent:Sunday, May 10, 2026 6:51 PM
To:Jennifer McGrath
Cc:Campen, Timothy E.; Ryan Smoot; Wangsu Lee; Mayra Ochiqui; Anna Garan Subject:BF - Response to TMW Letter of 5-10-26
Attachments:20260510BF - TMW Response to 5-10.pdf
Follow Up Flag:Flag for follow up
Flag Status:Flagged
Ms. McGrath –

Please see attached, responding to your letter from earlier today. The City Council is blind copied on this email.

Thank you.

The information contained in this e-mail message is intended only for the CONFIDENTIAL use of the designated addressee named above. The information transmitted is subject to the attorney privilege and/or represents confidential attorney work product. Recipients should not file copies of this email with publicly accessible records. If you are not the designated addressee n the authorized agent responsible for delivering it to the designated addressee, you received this document through inadvertent error and any further review, dissemination, distribution or copying of this communication by you or anyone else is strictly prohibited. IF YOU RECEIVED THIS COMMUNICATION IN ERROR, PLEASE NOTIFY U S IMMEDIATELY BY TELEPHONING THE SENDER NAMED ABOVE AT 800.333.4297. Thank you.

From: Jennifer McGrath
Date: Sunday, May 10, 2026 at 2:03 PM
To: "[email protected]" , "[email protected]" , "[email protected]" ,
"[email protected]" , "[email protected]" , Mayra Ochiqui , City Clerk

Cc: "[email protected]" , TMW , Charis
Burrett , "[email protected]" , Brandon
Scadron , "Berger, Karl H." , "Campen, Timothy E."
, Ryan Smoot , Wangsu Lee
Subject: Re: Late Communication for meeting of May 11, 2026 / Request for Continuance to May 25, 2026

2 [EXTERNAL]
Please see the additional Late Communication attached to this email.

Jennifer McGrath
Law Offices of Jennifer McGrath
7755 Center Avenue, Suite 1100
Huntington Beach CA 92647
(714) 231-2124
https://www.jennifermcgrath.com/

On Thu, May 7, 2026 at 6:13 PM Campen, Timothy E. wrote:

Dear Ms. McGrath,

3 Please let me know if you have any questions on the logistics of appearing via video conference. Beyond that, this correspondence represents the City’s final response regarding your request for accommodation. As previously advised, you are free to request a continuance of the appeal hearing from the City Council at the hearing on Monday, if you choose.

Sincerely,

The linked image cannot be displayed. The file may have been moved, renamed, or deleted. Verify that the link points to the correct file and location.

From: Jennifer McGrath
Sent: Thursday, May 7, 2026 5:29 PM
To: [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; Mayra Ochiqui ; City Clerk

[EXTERNAL]

4 Honorable Mayor Santa Ines and Member of the City Council -

The Bellflower Municipal Code 3.37.180(C) specifically contemplates a continuance based on mutual consent.

After unsuccessful attempts with both internal staff and your City Attorney to have the hearing continued to May 25, 2026, I am contacting you directly with this request.

In the absence of a continuance, The Medicine Woman Group, LLC, will not be afforded the fair hearing to which it is entitled.

Please advise if a continuance can be facilitated in advance of the meeting through the City Manager's Office.

Jennifer McGrath
Law Offices of Jennifer McGrath
7755 Center Avenue, Suite 1100
Huntington Beach CA 92647

5 (714) 231-2124
https://www.jennifermcgrath.com/

Sonny R. Santa Ines
Mayor
Victor A. Sanchez
Mayor Pro Tem
Ray Dunton
Council Member
Dan Koops
Council Member
Wendi Morse
Council Member

1 May 10, 2026

VIA EMAIL ONLY

Jennifer McGrath, Esq.

Law Offices of Jennifer McGrath
9114 Adams Avenue #264
Huntington Beach, CA 92646
[email protected]

RE: Response to Late Communication Dated May 10, 2026

Dear Ms. McGrath:

Thank you for your letter dated May 10, 2026 sent on behalf of The Medicine Woman Group, LLC (“TMW”). In short, your letter adds nothing new to your argument; the controlling language regarding the City’s cannabis tax may be found in the Bellflower Municipal Code (“BMC”). While your letter includes Resolution No. 16-80 and the Impartial Analysis of Measure B prepared by the City Attorney, these documents do not alter the City’s position.

Accordingly, refer to my letter of April 28, 2026 for a response to TMW’s arguments.

While I will not repeat what was already stated in my April 28th letter (and before that date by the Finance Director), I reiterate that the City’s cannabis tax under BMC § 3.37.060(D)(1) is a direct tax on the business for the privilege of conducting commercial cannabis operations within the City. It is not a tax imposed on the consumer or purchaser. The fact that TMW voluntarily chooses to collect this amount from its customers and itemize it on receipts does not transform a privilege tax on the business into a pass-through tax on the consumer. When TMW collects the tax from customers and lists it on receipts, those amounts constitute part of TMW’s gross receipts for purposes of calculating the cannabis tax.

Note that the City Attorney’s Impartial Analysis of Measure B does what is intended: it describes the Measure in general terms for the benefit of voters. The BMC – which is the only relevant authority for this matter – defines “cannabis business” or “commercial cannabis business” to mean “any commercial business activity relating to cannabis including, without limitation, cultivating, transporting, distributing, manufacturing, compounding, converting, processing, preparing, storing, packaging, delivering, and selling (wholesale and/or retail sales) of cannabis and any ancillary products and accessories in the City, whether or not carried on for gain or profit.” The express inclusion of “ancillary products and accessories” in the definition of “commercial cannabis business” under BMC § 3.37.020 is controlling.

Sonny R. Santa Ines
Mayor
Victor A. Sanchez
Mayor Pro Tem
Ray Dunton
Council Member
Dan Koops
Council Member
Wendi Morse
Council Member

2 TMW’s May 10 letter references “procedural defects in the tax assessment and notice of the tax assessment detailed in the Hearing Brief” and states that TMW “has not and does not waive any procedural defects.” The City has reviewed TMW’s Hearing Brief and does not concur that any procedural defects exist. The Tax Administrator’s Determination Letter of April 15, 2026, was issued following the administrative hearing held on February 24, 2026, and a thorough review of all documentation submitted for consideration, in accordance with BMC Chapter 3.37. All procedural requirements were satisfied.

The City’s demand for payment of $55,056.11 (net of payment received to date), plus accruing interest at 0.75% per month and audit examination costs of $9,000.00, remains in full force and effect. TMW is again urged to remit payment immediately to avoid further accrual of penalties and interest and to preserve the status of its cannabis business permit.

Very truly yours,

Karl H. Berger
City Attorney

C: City Council
City Manager
City Clerk
Finance Director

Page 1 of 5 ends

12-A

TO: Honorable Mayor and Members of the City Council

FROM: Anna Garan, Director of Finance

SUBJECT: Consideration and possible action to conduct a public hearing to consider The Medicine Woman Group, LLC’s appeal of the Tax Administrator’s final determination related to the audit of dispensary operations for calendar years 2022–2024.

DATE: May 11, 2026

EXECUTIVE SUMMARY

The Medicine Woman Group, LLC (“Taxpayer”) has appealed the Tax Administrator’s Administrative Decision, which upheld a revised cannabis business tax assessment for the Taxpayer’s dispensary operations for calendar years 2022 through 2024. The audit was conducted primarily during the second half of 2025, with the original audit report finalized in November 2025 and distributed to all active dispensary permittees in December 2025. Permittees were provided an opportunity to review and respond to the audit findings prior to finalization.

The Taxpayer was given the opportunity to be heard at an administrative hearing on February 24, 2026, and to submit additional documentation, which the City reviewed.

Following this process, the Tax Administrator issued a final determination affirming the audit findings, with adjustments primarily related to delivery fee calculations based on the supplemental records.

The appeal contests the inclusion of (1) amounts labeled as “City Cannabis Tax” and (2) revenues from non-cannabis sales in taxable gross receipts.

RECOMMENDATION TO CITY COUNCIL

1) Open the public hearing; take testimonial and documentary evidence; and, after considering the evidence, uphold the Tax Administrator’s Administrative Decision dated April 15, 2026, in full, confirming that all assessed taxes, penalties, interest, and audit costs are due and payable; and

2) Direct staff to proceed with all authorized collection and enforcement actions if payment is not remitted promptly; or

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

SUPPLEMENTAL MATERIAL

Staff Report – The Medicine Woman Group, LLC’s Appeal of Tax Administrator’s Final Determination Related to the Audit of Dispensary Operations for Calendar Years 2022–2024
May 11, 2026

Page 2 of 5 ends

FISCAL IMPACT

The total outstanding amount resulting from the audit of the Taxpayer’s dispensary operations for calendar years 2022 through 2024 is $57,957284.0140. This amount consists of $60,985.42 in tax, $12,892.93 in penalties, $13,925253.66 05 in interest, $9,000.00 for the Taxpayer’s proportionate share of audit examination costs and is net of the $38,847 payment made in January 2026.

The increase in interest of $2,900228.90 29 reflects additional accrual resulting from the Taxpayer’s failure to remit the assessed amount within 10 business days of the tax assessment letter. The original interest calculation included in the Tax Administrator’s letter was accrued only through November 2025, when the audit report was finalized; interest is now calculated through May 2026.

BACKGROUND AND DISCUSSION

The City conducts periodic cannabis business tax audits, generally every three years, covering the preceding three calendar years of operations. The purpose of each audit is to assess compliance with the City’s cannabis tax pursuant to Bellflower Municipal Code (BMC) § 3.37. The most recent prior audit of this Taxpayer, conducted in 2023 for calendar years 2019 through 2021, identified similar issues, including the exclusion of amounts labeled “City Cannabis Tax” collected from purchasers and delivery fees from taxable gross receipts. The Taxpayer subsequently paid the additional amounts due as a result of those audit findings in 2023.

The current audit covering calendar years 2022 through 2024 was conducted during the second half of 2025. The audit report was finalized in November 2025 and distributed to all active dispensary permittees in December 2025. Permittees were directed to remit any resulting liabilities by January 9, 2026, which coincided with the 2026 cannabis permit renewal deadline, for administrative efficiency.

On January 9, 2026, the Taxpayer submitted a payment which, consistent with City policy and prior notice to the Taxpayer, was applied first to outstanding tax liabilities, penalties, and interest resulting from the audit. As a result, the 2026 cannabis permit fee and other outstanding obligations remained unpaid.

On January 30, 2026, the City Attorney’s Office issued a formal demand for payment requiring satisfaction of all outstanding permit fees, audit liabilities, and delinquent taxes by February 9, 2026. The Taxpayer remitted only the permit and other permit-related fees, and an administrative hearing was initially scheduled for February 17, 2026, but was continued to February 24, 2026 at the Taxpayer’s request.

The Taxpayer disputed portions of the audit findings, presented evidence at the administrative hearing, and was granted the opportunity to submit supplemental documentation afterward, which was fully considered.

Staff Report – The Medicine Woman Group, LLC’s Appeal of Tax Administrator’s Final Determination Related to the Audit of Dispensary Operations for Calendar Years 2022–2024
May 11, 2026

Page 3 of 5 ends

BACKGROUND AND DISCUSSION – Continued

The Tax Administrator issued a final determination affirming the audit with minor adjustments, primarily related to delivery fee revenue based on supplemental records.

The original audit report included estimated delivery revenues because the Taxpayer did not provide the requested documentation or clarification by the established audit deadline.

The determination addressed three issues: (1) inclusion of amounts labeled “City Cannabis Tax” in gross receipts, (2) reporting of delivery fees, and (3) inclusion of non- cannabis sales in taxable gross receipts. The Taxpayer appeals issues (1) and (3) to the City Council.

With respect to the first issue on appeal, the record shows that the Taxpayer collected amounts from customers identified as “City Cannabis Tax” but excluded those amounts from reported gross receipts. The Taxpayer contends these amounts are excludable under BMC § 3.37.020 as taxes required by law to be included in or added to the purchase price and collected from the consumer, or amounts collected on behalf of others where the business is acting as an agent or trustee.

The determination concludes these amounts are properly included in taxable gross receipts because the City’s cannabis business tax is imposed directly on the operator as a tax on the privilege of conducting commercial cannabis activity, not on the consumer .

Unlike state sales tax or the cannabis excise tax, the City Cannabis Tax is not required by law to be passed through to customers or separately stated on receipts. Accordingly, the Taxpayer’s decision to itemize and collect a “City Cannabis Tax” charge d oes not alter its character as a business-level tax obligation or convert it into a pass-through tax.

Instead, amounts collected under this label represent consideration received in the course of business operations and are includable in gross receipts und er the BMC.

The “agent or trustee” exclusion also does not apply. The Taxpayer is not collecting funds on behalf of a third party but is recovering its own tax obligation as the licensed permittee.

Because no agency or fiduciary relationship exists under the ordinance, the statutory exclusion is inapplicable.

With respect to non-cannabis items, the second issue on appeal, the determination finds that receipts from these sales are properly included in taxable gross receipts. The cannabis business tax is imposed on the privilege of operating a commercial cannabis business as a whole, rather than on individual product categories.

Under BMC § 3.37.020, “commercial cannabis business” is defined to include any commercial activity relating to cannabis, including without limitation the selling of cannabis and ancillary products and accessories, whether conducted for gain or profit. Sect ion

3.37.020 states in relevant part as follows:

"Cannabis business" or "commercial cannabis business"
means any commercial business activity relating to cannabis including, without limitation, cultivating, transporting, distributing, manufacturing, compounding, converting, processing, preparing, storing, packaging, delivering, and selling (wholesale and/or retail sales) of cannabis and any ancillary products and accessories in the City, whether or not carried on for gain or profit.

Staff Report – The Medicine Woman Group, LLC’s Appeal of Tax Administrator’s Final Determination Related to the Audit of Dispensary Operations for Calendar Years 2022–2024
May 11, 2026

Page 4 of 5 ends

BACKGROUND AND DISCUSSION – Continued

"Gross receipts,"
except as otherwise specifically provided, means the total amount actually received or receivable from all sales; the total amount or compensation actually received or receivable for the performance of any act or service, of whatever nature it may be, for which a charge is made or credit allowed, whether or not such act or service is done as a part of or in connection with the sale of materials, goods, wares or merchandise; discounts, rents, royalties, fees, commissions, dividends, and gains realized from trading in stocks or bonds, however designated. Included in "gross receipts" is all receipts, cash, credits and property of any kind or nature, without any deduction there from on account of the cost of the property sold, the cost of materials used, labor or service costs, interest paid or payable, or losses or other expenses whatsoever, except that the following is excluded:

1. Cash discounts where allowed and taken on sales;

2. Credit allowed on property accepted as part of the purchase price and which property may later be sold, at which time the sales price is included as gross receipts;

3. Any tax required by law to be included in or added to the purchase price and collected from the consumer or purchaser;

4. Such part of the sale price of any property returned by purchasers to the seller as refunded by the seller by way of cash or credit allowances or return of refundable deposits previously included in gross receipts;

5. Receipts from investments where the holder of the investment receives only interest and/or dividends, royalties, annuities and gains from the sale or exchange of stock or securities solely for a person's own account, not derived in the ordinary course of a business;

6. Receipts derived from the occasional sale of used, obsolete or surplus trade fixtures, machinery or other equipment used by the taxpayer in the regular course of the taxpayer's business;

7. Whenever there are included within the gross receipts amounts which reflect sales for which credit is extended and such amount proved uncollectible in a subsequent year, those amounts may be excluded from the gross receipts in the year they prove to be uncollectible; provided, however, if the whole or portion of such amounts excluded as uncollectible are subsequently collected they are included in the amount of gross receipts for the period when they are recovered;

8. Receipts of refundable deposits, except that such deposits when forfeited and taken into income of the business must not be excluded when in excess of one dollar ($1.00);

9. Amounts collected for others where the business is acting as an agent or trustee and to the extent that such amounts are paid to those for whom collected. These agents or trustees must provide the finance department with the names and the addresses of the others and the amounts paid to them. This exclusion does not apply to any fees, percentages, or other payments retained by the agent or trustees.

Staff Report – The Medicine Woman Group, LLC’s Appeal of Tax Administrator’s Final Determination Related to the Audit of Dispensary Operations for Calendar Years 2022–2024
May 11, 2026

Page 5 of 5 ends

BACKGROUND AND DISCUSSION – Continued

This interpretation is further supported by City policy clarifying the scope of taxable operations. As reflected in the City’s Administrative Policy and Procedure No. 3 (as amended and ratified by the City Council in Resolution No. 22 -18), businesses engaged in qualifying cannabis-related retail activity are subject to the cannabis tax on their entire gross receipts when their cannabis-related sales exceed 50% of total gross receipts. The policy explicitly recognizes that once a business meets this threshold and is classified as operating within the cannabis sector for tax purposes, the tax applies to all receipts of the business, including non-cannabis merchandise such as apparel or accessories, because those revenues are generated through and in connection with the cannabis business operation.

Accordingly, receipts from non-cannabis items are properly included in taxable gross receipts because they are part of the total revenue derived from the Taxpayer’s commercial cannabis business activities and are not subject to any applicable exclusion under BMC § 3.37.020.

Staff concludes that the Tax Administrator’s Determination Letter is legally sound, supported by substantial evidence, and consistent with the Bellflower Municipal Code.

ATTACHMENTS

Appeal of Administrative Decision ................................................................................... 6 Response to Appeal of Administrative Decision ............................................................ 15 Tax Administrator’s Determination Letter ...................................................................... 21 The Medicine Woman Group, LLC Audit Report date d April 14, 2026 .......................... 25 Payment Demand and Notice of Suspension Letter dated January 30, 2026 ............... 33 The Medicine Woman Group, LLC Request for Hearing dated February 5, 2026 ......... 37 Notice of Tax Assessment Hearing for February 17, 2026 dated February 5, 2026 ...... 39 Hearing Extension Request Dated February 13, 2026 .................................................. 52 Notice of Tax Assessment Hearing for February 24, 2026 ............................................ 53 Agenda Item 14-C, Resolution No. 22-18
Ratifying Administrative Policies and Procedures No. 3 – Cannabis Tax Application to Sale of Industrial Hemp-Derived Monies ....................................................................... 54

Page 1 of 5 ends

12-A

TO: Honorable Mayor and Members of the City Council

FROM: Anna Garan, Director of Finance

DATE: May 11, 2026

EXECUTIVE SUMMARY

The Taxpayer was given the opportunity to be heard at an administrative hearing on February 24, 2026, and to submit additional documentation, which the City reviewed.

The appeal contests the inclusion of (1) amounts labeled as “City Cannabis Tax” and (2) revenues from non-cannabis sales in taxable gross receipts.

RECOMMENDATION TO CITY COUNCIL

2) Direct staff to proceed with all authorized collection and enforcement actions if payment is not remitted promptly; or

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

- 1 -
stafJeport

Staff Report – The Medicine Woman Group, LLC’s Appeal of Tax Administrator’s Final Determination Related to the Audit of Dispensary Operations for Calendar Years 2022–2024
May 11, 2026

Page 2 of 5 ends

FISCAL IMPACT

The total outstanding amount resulting from the audit of the Taxpayer’s dispensary operations for calendar years 2022 through 2024 is $57,957.01. This amount consists of $60,985.42 in tax, $12,892.93 in penalties, $13,925.66 in interest, $9,000.00 for the Taxpayer’s proportionate share of audit examination costs and is net of the $38,847 payment made in January 2026.

The increase in interest of $2,900.90 reflects additional accrual resulting from the Taxpayer’s failure to remit the assessed amount within 10 business days of the tax assessment letter. The original interest calculation included in the Tax Administrator’s letter was accrued only through November 2025, when the audit report was finalized; interest is now calculated through May 2026.

BACKGROUND AND DISCUSSION

- 2 -

Staff Report – The Medicine Woman Group, LLC’s Appeal of Tax Administrator’s Final Determination Related to the Audit of Dispensary Operations for Calendar Years 2022–2024
May 11, 2026

Page 3 of 5 ends

BACKGROUND AND DISCUSSION – Continued

The Tax Administrator issued a final determination affirming the audit with minor adjustments, primarily related to delivery fee revenue based on supplemental records.

The original audit report included estimated delivery revenues because the Taxpayer did not provide the requested documentation or clarification by the established audit deadline.

Unlike state sales tax or the cannabis excise tax, the City Cannabis Tax is not required by law to be passed through to customers or separately stated on receipts. Accordingly, the Taxpayer’s decision to itemize and collect a “City Cannabis Tax” charge does not alter its character as a business-level tax obligation or convert it into a pass-through tax.

Instead, amounts collected under this label represent consideration received in the course of business operations and are includable in gross receipts under the BMC.

The “agent or trustee” exclusion also does not apply. The Taxpayer is not collecting funds on behalf of a third party but is recovering its own tax obligation as the licensed permittee.

Because no agency or fiduciary relationship exists under the ordinance, the statutory exclusion is inapplicable.

3.37.020 states in relevant part as follows:

Staff Report – The Medicine Woman Group, LLC’s Appeal of Tax Administrator’s Final Determination Related to the Audit of Dispensary Operations for Calendar Years 2022–2024
May 11, 2026

Page 4 of 5 ends

BACKGROUND AND DISCUSSION – Continued

1. Cash discounts where allowed and taken on sales;

2. Credit allowed on property accepted as part of the purchase price and which property may later be sold, at which time the sales price is included as gross receipts;

3. Any tax required by law to be included in or added to the purchase price and collected from the consumer or purchaser;

6. Receipts derived from the occasional sale of used, obsolete or surplus trade fixtures, machinery or other equipment used by the taxpayer in the regular course of the taxpayer's business;

8. Receipts of refundable deposits, except that such deposits when forfeited and taken into income of the business must not be excluded when in excess of one dollar ($1.00);

- 4 -

Staff Report – The Medicine Woman Group, LLC’s Appeal of Tax Administrator’s Final Determination Related to the Audit of Dispensary Operations for Calendar Years 2022–2024
May 11, 2026

Page 5 of 5 ends

BACKGROUND AND DISCUSSION – Continued

This interpretation is further supported by City policy clarifying the scope of taxable operations. As reflected in the City’s Administrative Policy and Procedure No. 3 (as amended and ratified by the City Council in Resolution No. 22-18), businesses engaged in qualifying cannabis-related retail activity are subject to the cannabis tax on their entire gross receipts when their cannabis-related sales exceed 50% of total gross receipts. The policy explicitly recognizes that once a business meets this threshold and is classified as operating within the cannabis sector for tax purposes, the tax applies to all receipts of the business, including non-cannabis merchandise such as apparel or accessories, because those revenues are generated through and in connection with the cannabis business operation.

Staff concludes that the Tax Administrator’s Determination Letter is legally sound, supported by substantial evidence, and consistent with the Bellflower Municipal Code.

ATTACHMENTS

Appeal of Administrative Decision ................................................................................... 6 Response to Appeal of Administrative Decision ............................................................ 15 Tax Administrator’s Determination Letter ...................................................................... 21 The Medicine Woman Group, LLC Audit Report dated April 14, 2026 .......................... 25 Payment Demand and Notice of Suspension Letter dated January 30, 2026 ............... 33 The Medicine Woman Group, LLC Request for Hearing dated February 5, 2026 ......... 37 Notice of Tax Assessment Hearing for February 17, 2026 dated February 5, 2026 ...... 39 Hearing Extension Request Dated February 13, 2026 .................................................. 52 Notice of Tax Assessment Hearing for February 24, 2026 ............................................ 53 Agenda Item 14-C, Resolution No. 22-18
Ratifying Administrative Policies and Procedures No. 3 – Cannabis Tax Application to Sale of Industrial Hemp-Derived Monies ....................................................................... 54 - 5 -

LAW OFFICES OF

JENNIFER MCGRATH
9114 Adams Avenue #264, Huntington Beach, CA 92646
714.231.2124 | [email protected]
City of Bellflower April 19, 2026
Attn: Mayra Ochiqui, City Clerk via email only at 16600 Civic Center Drive [email protected]
Bellflower CA 90706
RE: Appeal of Administrative Decision Following Tax Assessment Hearing for the Audited Period (Calendar Years 2022–2024) dated April 15, 2026 Dear Ms. Ochiqui:

On February 24, 2026, the City of Bellflower (the “City”) held an administrative hearing regarding a tax audit assessment involving The Medicine Woman Group, LLC (the “Taxpayer”) pursuant to Chapter 3.37 of the Bellflower Municipal Code (“BMC”). The City had conducted an audit of the Taxpayer’s records and determined there were unpaid taxes pursuant to the City’s cannabis tax requirements. The Taxpayer challenged portions of the audit findings at the hearing and presented documentation, testimony and argument in support of its position. At the conclusion of the hearing, the Taxpayer requested an opportunity to present additional documentation for the City’s consideration, which was granted.

On April 15, 2026, The Medicine Woman Group, LLC, received the Tax Administrator’s Decision. This letter constitutes an appeal to the City Council of that Decision and/or the Failure of the Tax Administrator to grant an exemption pursuant to BMC 3.37.180(B).

Said hearing to be scheduled within 30 days. BMC 3.37.180(C).

Although there is no BMC code requirement to state the grounds for the hearing, The Medicine Woman felt it would better serve both the City and The Medicine Woman to detail the reasons for this appeal.

This appeal is based on the attached Objection To Tax Assessment; Hearing Brief By The Medicine Woman Group, LLC submitted to the Tax Administrator for consideration at the assessment hearing of February 24, 2026. Specifically, The Medicine Woman is appealing the Tax Administrator’s Decision on two issues:
- 6 -

- 7 -

1. Amounts Collected By TMW From Its Customers For The City's Cannabis Tax Should Not Be Included In Taxable Gross Receipts As Specific Exemptions Under BMC 3.37.020 defining "gross receipts" apply; and

2. Sales of Non-Cannabis Items Should Not be Subject to the City Cannabis Tax Pursuant to BMC 3.3.180(C), The Medicine Women Group, LLC may present such relevant evidence it may have relating to the determination from which the appeal is taken.

We look forward to the hearing before the City Council.

Sincerely,
~~"1r(7Ttr'o/MTfl
Jennifer McGrath, Esq.

I, Charis Burrett, Chief Executive Officer, The
this request for hearing submitted on beh
Charis Surrett
Attachment:

Objection To Tax Assessment; Hearing Brief By The Medicine Woman Group, LLC Cc:

Berger, Kart H. ([email protected])
Tim Campen ([email protected])
Solange Fortenbach ([email protected])
Ryan Smoot ([email protected])
Anna Garan ([email protected])
Wangsu Lee ([email protected])
•

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OBJECTION TO TAX ASSESSMENT; HEARING BRIEF BY THE MEDICINE WOMAN GROUP, LLC - 1
JENNIFER McGRATH (SBN 179917) EDWARD PINCHIFF (SBN 137183) Law Offices of Jennifer McGrath
9114 Adams Ave., #264
Huntington Beach, CA 92646
Phone: (714) 231-2124
Attorneys for

THE MEDICINE WOMAN GROUP, LLC

CITY OF BELLFLOWER
In the Matter of the Bellflower City Tax
Assessment against

THE MEDICINE WOMAN GROUP, LLC
dba The Medicine Woman,
OBJECTION TO TAX ASSESSMENT;

HEARING BRIEF BY THE MEDICINE

WOMAN GROUP, LLC
Date: February 24, 2026
Time: 1:00 p.m.

Place: Bellflower City Hall
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OBJECTION TO TAX ASSESSMENT; HEARING BRIEF BY THE MEDICINE WOMAN GROUP, LLC - 2
I. INTRODUCTION
A. Parties
The Medicine Woman Group, LLC (“TMW”) is a California Limited Liability Company operating a licensed cannabis dispensary located at 9058 Rose Street, Bellflower, California. Its CEO is Charis Burrett.

The City of Bellflower (the “City” or “Bellflower”) is a municipal corporation located in southeastern Los Angeles County, California. The City was a general law City until Bellflower Measure B was approved by voters in November 2024 establishing Bellflower as a charter city.

B. Procedural History
This matter arises from a tax assessment against Medicine Woman Group, LLC by the City’s administrator. The Bellflower Municipal Code (“BMC”) defines the administrator as the “city manager, or designee.” (BMC § 3.37.020) The tax assessment is for alleged unpaid taxes pursuant to BMC § 3.37.120, et seq. That assessment is the result of the City’s cannabis tax examination audit for the period from January 1, 2022, through December 31, 2024.

As a result of that tax examination, the City issued a Cannabis Tax Report of Examination (“Tax Report”) dated November 24, 2025. The tax examiner for the City was Chris Wills. The Tax Report states that during this period, TMW reported $10,017,465 in Gross Receipts and remitted $851,485 in cannabis tax to the City. The Tax Report determined that an additional cannabis tax liability existed primarily comprised of two issues.

The first issue identified in the Tax Report was that TMW charged and collected the City’s Cannabis Tax from their customers and did not report those amounts as taxable gross receipts.

The second issue in the Tax Report was that TMW charged its customers a delivery fee on transactions that are delivered to their customers and did not report those amounts as gross receipts to the City. The City contends that these two items should have been reported as gross receipts to the City pursuant to the BMC 3.37.020 definition of gross receipts.

TMW contends that the amounts TMW charged and collected from its customers for the City’s Cannabis Tax should not be included in gross receipts and that to do so amounts to a “tax on tax” which is inappropriate, unlawful, and unfair.
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OBJECTION TO TAX ASSESSMENT; HEARING BRIEF BY THE MEDICINE WOMAN GROUP, LLC - 3
TMW also contends that it properly included delivery fees in gross receipts. With respect to the amount of the delivery fees, the tax examiner did not have records showing actual delivery fees for the audit period, so the tax examiner estimated monthly delivery fees based on a prior audit. TMW contends that the estimated amounts are not correct as TMW ceased doing deliveries for nearly all of the audit period.

The Tax Report also applies the City Cannabis Tax to non-cannabis items. TMW contends that non-cannabis sales are not subject to the City Cannabis Tax and the tax assessment should be modified to reflect as such.

The Tax Report includes a finding that TMW owes the City an additional $67,709.76 in local cannabis taxes. It also includes a finding that TMW owes penalties of $13,985.46 and interest of $11,514.97. The total of these amounts is $93,210.19. TMW disagrees with these findings.

As a result of the alleged underpaid taxes, the City also claims that TMW owes an additional amount of $9,000.00 for the cost of the tax examination pursuant to BMC 3.16.130.

TMW objects to this charge as it contends there was no underpayment of taxes exceeding 2% and asserts that it should not have to pay any amount for the cost of the tax examination. TMW also objects to this charge as the City has not provided documentation establishing what the tax examination costs were for the third party conducting the audit, Avenu Insights & Analytics, LLC, or the fair share of costs TMW should be expected to pay (Avenu Insights & Analytics was retained by the City to provide examinations/audits for multiple cannabis dispensaries.) The City and TMW disagree on whether the City has issued a proper tax assessment to TMW. The City’s Director of Finance, Anna Garan, sent an email dated December 11, 2025, indicating that the City’s auditor completed its review and identified $93,210.19 in underpaid taxes including penalties and interest. It also indicated that TMW’s share of the audit costs is $9,000. TMW’s position is that this email was not a proper notice of assessment by the City as it did not comply with the procedures set forth in BMC 3.37.150 which provides that formal notice of any tax assessment be mailed by the administrator to TMW with details of the assessment and the time and place where the assessment may be contested at least 10 days before a hearing on - 10 -

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OBJECTION TO TAX ASSESSMENT; HEARING BRIEF BY THE MEDICINE WOMAN GROUP, LLC - 4
the assessment. That was not done. The December 11, 2025, email from Anna Garan, Director of Finance, was not mailed, does not contain the requisite information, and there was no hearing providing an opportunity for interested parties to object. Once that hearing takes place, then the assessment, decision, or administrative ruling may be appealed to the City Council under BMC

3.37.180.

After being notified that TMW did not acknowledge December 11, 2025, email as proper notice of a tax assessment pursuant to the BMC, the City unilaterally set a tax assessment hearing for February 17, 2026. That hearing was then continued by agreement of the parties to February 24, 2026.

TMW objects to the tax assessment by the City and asserts that it does not owe any additional cannabis taxes, penalties, or interest. TMW also objects to the December 11, 2025, email as proper notice of a tax assessment and contends the City has failed to date to issue a proper notice.

II. LEGAL ARGUMENT
The primary issue before the City administrator is whether to confirm or modify the tax assessment. (BMC § 3.37.150)
A. Amounts Collected by TMW from its Customers for the City’s Cannabis Tax Should Not be Included in Taxable Gross Receipts
TMW collected the City Cannabis Tax for the City from its customers. The tax was included on the customer receipt as required by CDTFA regulations as the City Cannabis Tax amount is necessary to compute the state cannabis excise tax and sales tax. (See 18 CCR § 3802.) California Department of Cannabis Control regulations also require that all taxes be stated on the receipt. (See 4 CCR §15420(a)(8).)
Pursuant to BMC § 3.37.020, the definition of “gross receipts” has several exemptions from that definition. Exemption #3 excludes from gross receipts “Any tax required by law to be included in or added to the purchase price and collected from the consumer or purchaser;” and Exemption #9 excludes “Amounts collected for others where the business is acting as an agent or trustee and to the ex-tent [sic] that such amounts are paid to those for whom collected.” - 11 -

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OBJECTION TO TAX ASSESSMENT; HEARING BRIEF BY THE MEDICINE WOMAN GROUP, LLC - 5
As to Exemption #3, CDTFA regulations and DCC regulations require the City Cannabis Tax to be included in or added to the purchase price and collected from the consumer or purchaser. Consequently, the City Cannabis Tax should not be included in the BMC definition of “gross receipts.”
As to Exemption #9, the City Cannabis Tax was collected (by TMW) for others (the City) where the business (TMW) is acting as an agent or trustee (for the City) and such amounts were paid (by TMW) to those for whom collected (the City). Indeed, at a February 9, 2026, meeting between the parties addressing the tax assessment, the attorney for the City acknowledged that TMW collects the City Cannabis Tax from the consumer on behalf of the City. Consequently, the City Cannabis Tax should not be included in the BMC definition of “gross receipts.” B. Amounts Collected by TMW from its Customers for Delivery Fees Are Not Accurately Reflected in the Tax Assessment
TMW will show at the hearing that delivery fees collected by TMW from its customers were reported in gross receipts and the tax assessment delivery fee numbers are wrong. As to the amount of the delivery fees, the tax examiner did not have records showing actual delivery fees for the audit period, so the tax examiner estimated monthly delivery fees based on a prior audit.

Those estimates are not accurate. TMW will show at the hearing the true amount of the actual delivery fees collected, which are minimal for the audit period as TMW ceased deliveries for nearly all of the audit period.

C. Sales of Non-Cannabis Items Should Not be Subject to the City Cannabis Tax The City Staff Report dated October 10, 2016 (City Council Agenda Item 11D), states, in relevant part that “[t]he primary purpose of this program is to generate revenue for the City's General Fund. Preliminary estimates suggest the City may receive between $1.8 million and $3.4 million in annual revenue (cannabis business tax and sales tax) from the first full year of issuing 12 permits to 2023-24, respectively, when all the proposed tax rates are fully phased in prior to subsequent annual CPI adjustments.” TMW does not dispute that non-cannabis items are subject to the sales tax under BMC 3.04.
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However, BMC 3.37.020 defines "Tax," "cannabis tax," "business tax," or commercial marijuana tax" to mean the tax due pursuant to this chapter for engaging in commercial cannabis business in the City. Therefore, TMW does contend that non-cannabis items are not subject to the Cannabis Business Tax under BMC 3.37.060(D). Non-cannabis items include, but are not limited to, branded clothing such as t-shirts, shorts, socks, hats, hoodies, winter caps, child- resistant storage containers, pouches, and bags. None of which are subject to the CDTFA cannabis excise tax. (See 18 CCR § 3802).

The October 2016 Staff Report further states that “Of greatest interest to the City is the proposed tax that would be imposed for the privilege of operating a Cannabis Operation within Bellflower' s jurisdiction.” All discussion before the City Council in considering the marijuana tax measure in October and November 2016 emphasized “a tax on cannabis related businesses.” The ballot language for the Bellflower cannabis tax initiative (Measure B) approved by voters in March 2017 reiterated the same message. Shall the proposition imposing a tax on cannabis related businesses operating within the City of Bellflower be adopted? (emphasis added) Moreover, neither the impartial analysis nor the ballot arguments dissuaded the voter from believing the taxation was on cannabis. There is no language in the Staff Reports or ballot materials that would educate a voter that a cannabis related business would be subject to the standard sales and use tax similar to any other non-cannabis retail business but also penalized with an additional cannabis tax rate on non-cannabis goods because the t-shirt is sold in the same retail business as cannabis. In short, the “privilege” has become a penalty.

If it was the intent of the voters that non-cannabis goods would be subject to a cannabis business tax, the initiative could have explicitly said so. If it was the intent of the City Council that non-cannabis goods would be subject to a cannabis business tax, the BMC could have explicitly said so. They do not.

California courts consistently hold that an ambiguity in a tax statute will generally be resolved in favor of the taxpayer. In re Transient Occupancy Tax Cases (2016) 2 Cal. 5th 131, 134. See also Microsoft Corp. v. Franchise Tax Bd. (2006) 39 Cal.4th 750, 759; Agnew v. State Bd. of Equalization (1999) 21 Cal.4th 310, 330.
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TMW will show at the hearing the true amount of the cannabis sales vs. non-cannabis sales.

TMW contends that non-cannabis sales are not subject to the Cannabis Business Tax and the tax assessment should be modified to reflect as such.

III.CONCLUSION
Based on the foregoing, it is respectfully submitted that the administrator should modify the tax assessment to reflect that no additional taxes, interest, or penalties are due from TMW and to reflect that TMW does not owe any amount for the cost of the tax examination.

DATED: February 17, 2026 _____________________________________ Jennifer McGrath
Attorneys for THE MEDICINE WOMAN GROUP, LLC
Jennifer McGrath
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Sonny R. Santa Ines
Mayor
Victor A. Sanchez
Mayor Pro Tem
Ray Dunton
Council Member
Dan Koops
Council Member
Wendi Morse
Council Member

1 April 28, 2026

VIA EMAIL AND U.S. MAIL

Jennifer McGrath, Esq.

Law Offices of Jennifer McGrath
9114 Adams Avenue #264
Huntington Beach, CA 92646
[email protected]

RE: Response to Appeal of Administrative Decision Following Tax Assessment Hearing The Medicine Woman Group, LLC (Calendar Years 2022–2024); Demand for Payment

Dear Ms. McGrath:

A copy of your correspondence dated April 19, 2026 and April 22, 2026 was forwarded to my attention (“April Correspondence”). In part, the April Correspondence seeks confirmation that the Tax Administrator’s Determination Letter of April 15, 2026 (the “Determination Letter”) is not final and that the assessed amount of $93,903.11 is not due and payable pending resolution of the appeal.

The City will schedule a hearing before the City Council within the time frame prescribed by the BMC. However, the City cannot confirm that the obligation to pay the assessed amount is suspended during the pendency of the appeal. To the contrary, as set forth below, the full amount of $55,056.11 (net of payment received to date) remains due and payable, and the City may pursue all available enforcement remedies in the event of non-payment.

This letter also responds to the substantive arguments raised in TMW’s Objection to Tax Assessment and Hearing Brief dated February 17, 2026, which was attached to and incorporated by reference in your April 19, 2026 appeal letter. The City’s position on each issue is as follows.

Ø The Payment Obligation Is Not Stayed by the Filing of an Appeal The Determination Letter constitutes the Tax Administrator’s final determination following the administrative hearing held on February 24, 2026, and the subsequent review of all documentation submitted for consideration. While TMW may appeal that determination to the City Council under BMC § 3.37.180, nothing in BMC Chapter 3.37 provides that the filing of an appeal operates as an automatic stay of the payment obligation or suspends the City’s enforcement authority. The assessed amount therefore remains due and payable by the stated deadline.
e ch e
The City of Bellflower
?a.mi.lies. 2'3usinesses. 9ulures.
16600 Civic Center Drive, Bellflower, CA 90706
Tel .562.804.1424 Fax .562.92.5.8660 www.bellflower.org

Sonny R. Santa Ines
Mayor
Victor A. Sanchez
Mayor Pro Tem
Ray Dunton
Council Member
Dan Koops
Council Member
Wendi Morse
Council Member

2 Pursuant to BMC § 3.37.140, taxes that are not received by the administrator on or before the due date are delinquent and subject to penalties and interest. Interest continues to accrue at the rate of 0.75% per month on the delinquent amount until paid. In addition, BMC Chapter 3.37 authorizes the administrator to record a certificate with the County Recorder specifying the delinquent tax amount, which upon recording constitutes a lien on all real property owned by the taxpayer. The City may also pursue enforcement actions against TMW’s cannabis business permit under Title 14 of the BMC.

TMW is strongly encouraged to remit payment of the full assessed amount to avoid further accrual of additional penalties and interest and to preserve the status of its cannabis business permit. The current tax assessment includes interest accrual only through November 2025, which is the finalization date of the original audit report. Should the City Council grant the appeal in whole or in part, the City will issue a refund of any overpaid amount consistent with the refund provisions of BMC § 3.37.170.

Ø Response to TMW’s Substantive Arguments on Appeal
The Tax Administrator’s Determination Letter thoroughly addressed each of the arguments raised by TMW at the February 24, 2026 hearing and in its supplemental submissions. The City’s position on each issue remains as set forth in the Determination Letter. Nevertheless, given that TMW’s appeal incorporates by reference the Objection to Tax Assessment and Hearing Brief previously submitted, the City provides the following response to each of TMW’s principal arguments.

A. Amounts Collected from Customers as “City Cannabis Tax” Are Properly Included in Gross Receipts

TMW contends that amounts it collected from customers and identified on receipts as “City Cannabis Tax” should be excluded from gross receipts under two exemptions in the BMC §

3.37.020 definition of “gross receipts”: (1) Exemption #3, which excludes “[a]ny tax required by law to be included in or added to the purchase price and collected from the consumer or purchaser”; and (2) Exemption #9, which excludes “[a]mounts collected for others where the business is acting as an agent or trustee and to the extent that such amounts are paid to those for whom collected.”

Both arguments fail as a matter of law.

Exemption #3 does not apply because the City’s cannabis tax under BMC § 3.37.060(D)(1) is a direct tax on the business for the privilege of conducting commercial cannabis operations within the City. It is not a tax imposed on the consumer or purchaser. Unlike state sales tax or the state cannabis excise tax, the City Cannabis Tax is not legally required to be passed through to the purchaser, and there is no statutory obligation to separately state it on customer receipts. The fact e cE e
Th e Cit y of Bellflower
9aniilies. 2'3usinesses. 9ulures.
16600 Civic Center Drive, Bellflower, CA 90706
Tel .562 .804.1424 Fax .562.92.5 .8660 www.bellflower.org

Sonny R. Santa Ines
Mayor
Victor A. Sanchez
Mayor Pro Tem
Ray Dunton
Council Member
Dan Koops
Council Member
Wendi Morse
Council Member

3 that TMW voluntarily chose to collect this amount from its customers and itemize it on receipts does not transform a privilege tax on the business into a pass-through tax on the consumer. When TMW collects the tax from customers and lists it on receipts, those amounts constitute part of TMW’s gross receipts for purposes of calculating the cannabis tax.

This position is consistent with the treatment of local cannabis business taxes throughout the State of California for the calculation of the 15% excise tax and sales tax. The California Department of Tax and Fee Administration (“CDTFA”) has expressly stated that “[a]ny cannabis business tax included on the receipt to the customer is considered part of gross receipts unless otherwise excluded” under the Revenue and Taxation Code (see, CDTFA, Gross Receipts Subject to Cannabis Excise Tax (L-931), fn. 1). The CDTFA’s guidance further confirms that local cannabis business taxes passed on to customers are included in gross receipts subject to both the state cannabis excise tax and sales tax.

TMW’s reliance on CDTFA regulations (18 CCR § 3802) and Department of Cannabis Control regulations (4 CCR § 15420(a)(8)) requiring that taxes be stated on customer receipts is misplaced. Those state regulations govern the format of receipts for purposes of calculating state excise taxes and sales taxes; they do not control the City’s definition of “gross receipts” under the BMC nor do they convert the City Cannabis Tax from a privilege tax on the business into a pass-through tax on the consumer.

Exemption #9 likewise does not apply. TMW is not acting as an “agent or trustee” when it collects the City Cannabis Tax from its customers. The tax obligation is TMW’s own; it is imposed directly on the cannabis business, not on the customer. TMW’s decision to pass this cost to customers is a business decision, not a legal obligation arising from an agency or trust relationship. Because TMW is satisfying its own tax obligation — not collecting on behalf of a third party for whom it acts as agent — the exemption is inapplicable.

Accordingly, all monies received from customers, including amounts identified on receipts as “City Cannabis Tax,” constitute gross receipts under BMC § 3.37.020, and the Tax Administrator’s determination on this issue is correct.

B. Delivery Fees Have Been Properly Adjusted Based on TMW’s Own Records

TMW argued at the hearing that the delivery fee amounts in the original audit report were inaccurate because the auditor had estimated monthly delivery fees based on a prior audit in the absence of actual records. The City acknowledges this concern and notes that the Tax Administrator addressed it directly in the Determination Letter.

Following the hearing, TMW provided supplemental point-of-sale documentation, delivery and transaction logs, and a declaration substantiating its delivery fee revenue. The City’s auditor e cs e
The City of Bellflower
9aniilies. 2'3usinesses. 9ulures.
16600 Civic Center Drive, Bellflower, CA 90706
Tel .562.804.1424 Fax .562.92.5.8660 www.bellflower.org

Sonny R. Santa Ines
Mayor
Victor A. Sanchez
Mayor Pro Tem
Ray Dunton
Council Member
Dan Koops
Council Member
Wendi Morse
Council Member

4 reviewed this additional documentation and verified that a portion of delivery fees had, in fact, been included in TMW’s reported gross receipts. Accordingly, the audit assessment was adjusted to reflect that only $4,750 in delivery fees was not reported on TMW’s returns to the City. This adjustment was incorporated into the revised audit report and reflected in the total assessment.

There is no dispute that delivery fees constitute gross receipts under BMC § 3.37.020, which broadly defines gross receipts to include “the total amount or compensation actually received or receivable for the performance of any act or service, of whatever nature it may be, for which a charge is made or credit allowed.” Delivery services provided in connection with cannabis transactions are part of TMW’s commercial operations, and the associated fees are properly included in gross receipts. TMW’s argument that the delivery fee figures were inaccurate has already been addressed through the adjustment reflected in the Determination Letter, and no further modification is warranted.

C. Sales of Non-Cannabis Items Are Subject to the Cannabis Tax

TMW contends that receipts from sales of non-cannabis items — including branded clothing, child-resistant containers, pouches, and bags — should not be subject to the City Cannabis Tax under BMC § 3.37.060(D). This argument is not supported by the plain language of the ordinance.

BMC § 3.37.020 defines “cannabis business” or “commercial cannabis business” to mean “any commercial business activity relating to cannabis including, without limitation, cultivating, transporting, distributing, manufacturing, compounding, converting, processing, preparing, storing, packaging, delivering, and selling (wholesale and/or retail sales) of cannabis and any ancillary products and accessories in the City, whether or not carried on for gain or profit.” The tax is imposed on the business activity as a whole — it is a tax on the privilege of operating a commercial cannabis business, not a product-specific excise tax. Gross receipts therefore include all receipts generated from operations conducted as part of TMW’s cannabis business, including the sale of non-cannabis items such as branded merchandise and accessories.

TMW argues that legislative history and ballot materials demonstrate that the voters intended the tax to apply only to cannabis products. This argument is unavailing. The plain language of the ordinance is clear and unambiguous: the definition of “commercial cannabis business” expressly includes the sale of “ancillary products and accessories.” Where the text of a statute is clear, courts need not resort to extrinsic aids of interpretation (Lungren v. Deukmejian (1988) 45 Cal.3d 727). The ballot language asked voters whether a “tax on cannabis related businesses” should be adopted — the word “businesses” encompasses the entire operation, not merely the sale of cannabis products.

e cq e
The City of Bellflower
?a.mi.lies. 2'3usinesses. !7-ulures.
16600 Civic Center Drive, Bellflower, CA 90706
Tel .562 .804.1424 Fax .562 .92.5 .8660 www.bellflower.org

Sonny R. Santa Ines
Mayor
Victor A. Sanchez
Mayor Pro Tem
Ray Dunton
Council Member
Dan Koops
Council Member
Wendi Morse
Council Member

5 TMW’s reliance on the principle that ambiguities in tax statutes are construed in favor of the taxpayer does not assist its position because there is no ambiguity to construe. The definition of “commercial cannabis business” is broad and explicit and includes the sale of ancillary products.

Moreover, the California Supreme Court has held that while ambiguities in tax statutes are construed against the taxing authority, the statute must be ambiguous before this canon applies (Agnew v. State Bd. of Equalization (1999) 21 Cal. 4th 310). Here, the BMC’s definition is not ambiguous.

Further, the fact that non-cannabis items may not be subject to the CDTFA cannabis excise tax under 18 CCR § 3802 is irrelevant to the City’s local cannabis business tax. The state cannabis excise tax and the City’s cannabis business tax are distinct taxes with distinct legal bases, distinct definitions of the tax base, and distinct administering authorities. State regulatory provisions governing the computation of the state excise tax do not control the City’s definition of gross receipts or the scope of the City’s cannabis business tax.

Accordingly, the Tax Administrator’s determination that receipts from all sales — including non-cannabis items — conducted as part of TMW’s cannabis business operations are included in gross receipts is correct.

Ø Demand for Payment
Based on the foregoing, the City demands that TMW remit the full assessed amount of $55,056.11 (net of payment received to date) without further delay. This amount reflects the tax due of $60,985.42, penalties of $12,892.93 pursuant to BMC § 3.37.140(B), and interest of $11,024.76 pursuant to BMC § 3.37.140(E), as set forth in the revised audit report, and is net of the payment made on January 9, 2026, totaling $38,847. Additionally, interest will accrue at the rate of 0.75% per month on the unpaid tax amount from the calculation date of the Determination Letter until payment is made. As outlined in the tax determination letter and the revised audit report, the current amount due reflects interest calculated only through November 2025, the date of the original audit report. In addition, the City has assessed TMW $9,000.00 for its proportionate share of the audit examination costs pursuant to BMC § 3.37.260, which amount is also due and payable.

Be advised of the following consequences of continued non-payment:

1. Additional Penalties and Interest. All unpaid amounts will continue to accrue interest at 0.75% per month until paid.

2. Lien Authority. The City may record a certificate of tax lien with the Los Angeles County Recorder specifying the delinquent amount, which upon recording constitutes a lien on all real property owned by TMW.
e c. e
The City of Bellflower
!7-aniilies. 2'3usinesses. !7-ulures.
16600 Civic Center Drive, Bellflower, CA 90706
Tel .562.804.1424 Fax .562.92.5.8660 www.bellflower.org

Sonny R. Santa Ines
Mayor
Victor A. Sanchez
Mayor Pro Tem
Ray Dunton
Council Member
Dan Koops
Council Member
Wendi Morse
Council Member

6 3. Permit Enforcement. The City reserves the right to pursue enforcement actions with respect to TMW’s cannabis business permit, including suspension or revocation, in accordance with Title 14 of the BMC.

4. Additional Civil Remedies. The City reserves all additional remedies available under the BMC and applicable law, including the right to pursue collection of the delinquent tax as a civil debt.

We urge TMW to remit the full assessed amount immediately to avoid further accrual of penalties and interest and to preserve the status of its cannabis business permit. Payment should be directed to the City of Bellflower Finance Department at City Hall, 16600 Civic Center Drive, Bellflower, CA 90706.

Very truly yours,

Karl H. Berger
City Attorney

c: City Manager
Finance Director
Assistant City Attorney

e GM e
The City of Bellflower
!Ja01.i.f.ies. 2'3us.inesses. !7-ulures.
16600 Civic Center Drive, Bellflower, CA 90706
Tel .562 .804.142 4 Fax .56 2.92.5 .8660 www.bellflower.org

April 15, 2026

The Medicine Woman Group, LLC
9058 Rose Street
Bellflower, CA 90706

Re: Administrative Decision Following Tax Assessment Hearing for the Audited Period (Calendar Years 2022–2024)

This matter comes before the City of Bellflower (the “City”) following an administrative hearing held on February 24, 2026 regarding a tax audit assessment involving The Medicine Woman Group, LLC (the “Taxpayer”) pursuant to Chapter 3.37 of the Bellflower Municipal Code (“BMC”).

The City conducted an audit of the Taxpayer’s records and determined there were unpaid taxes pursuant to the City’s cannabis tax requirements. The Taxpayer challenged portions of the audit findings at the hearing and presented documentation, testimony and argument in support of its position. At the conclusion of the hearing, the Taxpayer requested an opportunity to present additional documentation for the City’s consideration, which was granted by me as the Tax Administrator and fully considered.

This Administrative Decision constitutes the Tax Administrator’s final determination based on the audit record, applicable law, and the materials and arguments submitted both at and after the hearing. In reviewing the audit, the Tax Administrator considered whether the assessment is supported by substantial evidence and consistent with the requirements of the BMC. The three primary issues at the hearing were the Taxpayer’s exclusion of the following items from its reported taxable gross receipts to the City: (1) amounts collected from customers identified as “City Cannabis Tax,” (2) delivery fees, and (3) receipts from sales of non-cannabis items.

Following the hearing, the Taxpayer provided supplemental point-of-sale (POS) documentation relating to delivery fee revenue that had not been submitted by the deadline established during the audit. In the absence of this information, the audit initially relied on reasonable estimates.

Upon review of the subsequently submitted documentation, the City’s auditor reviewed the presented financial data and adjusted the Taxpayer’s liability accordingly.

With respect to the first issue, the record shows that the Taxpayer collected amounts from customers identified as “City Cannabis Tax” but excluded them from reported gross receipts. The Taxpayer contends that these amounts are excludable under BMC § 3.37.020 either as (1) taxes required by law to be included in or added to the purchase price and collected from the consumer or purchaser, or (2) amounts collected for others where the business is acting as an agent or trustee and to the extent that such amounts are paid to those for whom collected.

However, under BMC § 3.37.060(D)(1), every person engaged in commercial cannabis business activities within the City must pay an annual commercial cannabis tax. The responsibility to pay this tax falls on the Taxpayer, not the customer. Unlike state sales or excise taxes, the City Cannabis Tax is not legally required to be passed through to the purchaser, and there is no obligation to separately state it on receipts. If the Taxpayer chooses to collect this tax from customers and list it on receipts, those amounts are included as part of the Taxpayer’s gross receipts for purposes of calculating the City Cannabis Tax.

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The City of Bellflower
!7-ami/ie . :73usine ·se . !Ju l ures.
16600 ivic Center Drive, ellflower, A 907 6
Tel 562.804.14.24 Fax 5 62 .925.8660 www.bellflowetorg ....._ ____ >

The Medicine Woman Group, LLC
Re: Administrative Decision Following Tax Assessment Hearing for the Audited Period (Calendar Years 2022–2024)

Page 2 of 4 ends

The exclusions cited by the Taxpayer do not apply. The tax is not imposed on the purchaser by law, such as with the State excise tax, so the exclusion for taxes collected from the purchaser is inapplicable. Similarly, the exclusion for amounts collected on behalf of others does not apply because the Taxpayer is not acting as an agent or trustee, but is instead satisfying its own tax obligation. State regulatory provisions regarding the disclosure of taxes on receipts do not control the City’s definition of gross receipts and are not relevant because the tax is imposed on the Taxpayer, not required to be collected from the customer. All monies received from customers, excluding mandatory passthrough taxes, are part of gross receipts pursuant to the BMC.

Accordingly, amounts identified as “City Cannabis Tax” meet the definition of the City’s taxable gross receipts.

With respect to the second issue, the audit determined that the Taxpayer charged delivery fees but did not include all such amounts in the reported gross receipts to the City. Delivery services provided in connection with cannabis transactions are part of the Taxpayer’s commercial operations, and the associated fees constitute gross receipts under BMC § 3.37.020. During the initial review, the City’s contracted auditor found that delivery fees appear on customer receipts, but no corresponding amounts are reflected in the point-of-sale (POS) transaction detail. The Taxpayer did not timely respond to the original audit request for supporting documentation to reconcile this discrepancy. Only after the audit did the Taxpayer submit point-of-sale (POS) records, supplemental delivery and transaction logs, and a declaration to substantiate the delivery fee revenue. Based on this additional information, the auditor was able to verify that a portion of the delivery fees had, in fact, been included in reported gross receipts for the audit period.

Accordingly, the audit assessment has been adjusted to show $4,750 in delivery fees was not reported on the Taxpayer’s returns to the City.

With respect to the third issue, the Taxpayer argues that receipts from sales of non-cannabis items should not be subject to the Cannabis Tax. This argument is not supported by the ordinance.

The Cannabis Tax is imposed on the privilege of operating a “Commercial Cannabis Business,” which is defined in BMC § 3.37.020 to expressly include sales relating to cannabis, including the sale of ancillary products and accessories. Section 3.37.020 states in relevant part as follows:

The Medicine Woman Group, LLC
Re: Administrative Decision Following Tax Assessment Hearing for the Audited Period (Calendar Years 2022–2024)

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1. Cash discounts where allowed and taken on sales;

2. Credit allowed on property accepted as part of the purchase price and which property may later be sold, at which time the sales price is included as gross receipts;

3. Any tax required by law to be included in or added to the purchase price and collected from the consumer or purchaser;

6. Receipts derived from the occasional sale of used, obsolete or surplus trade fixtures, machinery or other equipment used by the taxpayer in the regular course of the taxpayer's business;

8. Receipts of refundable deposits, except that such deposits when forfeited and taken into income of the business must not be excluded when in excess of one dollar ($1.00);

Accordingly, the tax applies to the business activity as a whole rather than to individual product categories. Gross receipts therefore include all receipts generated from operations conducted as part of the Taxpayer’s cannabis business, including sales of non-cannabis items. While the Taxpayer references staff reports and ballot materials, those sources do not support Taxpayer’s contentions or override the plain language of the ordinance. Accordingly, receipts from non- cannabis sales meet the definition of the City’s taxable gross receipts.

Based on the foregoing, the City determines that amounts identified as “City Cannabis Tax” are included in gross receipts, delivery fee revenue is adjusted to $4,750, and receipts from non- cannabis sales are included in gross receipts. The audit assessment is therefore affirmed as modified.

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The Medicine Woman Group, LLC
Re: Administrative Decision Following Tax Assessment Hearing for the Audited Period (Calendar Years 2022-2024)

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As a result of the City's analysis of Taxpayer's additional evidence presented, the Taxpayer's original liability of $102,210.19 has now been revised to $93,903.11, consisting of $60,985.42 in tax, $12,892.93 in penalties, $11,024.76 in interest (calculated through November 2025), and $9,000.00 in audit costs.1
This Administrative Decision constitutes the Tax Administrator's final administrative determination with respect to the audit period identified above. Payment of the total amount due is required within 10 business days from the date of this letter to avoid revocation of the current cannabis permit.

Sincerely,
• fltt 1MN'r-
Anna Garan
Finance Director
Enclosure: Revised Audit Report dated April 14, 2026
cc: Ryan Smoot, City Manager
Wangsu Lee, Assistant to the City Manager
Karl Berger, City Attorney
Timothy Campen, Assistant City Attorney
Christopher W. Wills, Audit Manager
1 The City incurred $45,000 in audit costs for four dispensaries and one distribution activity. Pursuant to Section

3.37.260 where an audit identifies an understatement of 5% or more, the taxpayer is responsible for the reasonable cost of the audit and all resulting taxes, penalties, and interest. Accordingly, one-fifth of the audit cost or $9,000 has been allocated to the Taxpayer.

City of Bellflower, California
Cannabis Tax
Report of Examination

REVISED

April 14, 2026

The Medicine Woman Group, LLC
d/b/a The Medicine Woman

Examination Period:

January 1, 2022, through December 31, 2024

Finance Department
City Hall
16600 Civic Center Drive
Bellflower, California 90706

Examination Performed by:

Audit Division/Compliance Section
Avenu Insights & Analytics, LLC
600 Beacon Parkway West, Ste. 900
Birmingham, AL 35209

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Avenu Insights & Analytics, LLC
Audit Division
d/b/a: The Medicine Woman Page 2

Business Name: The Medicine Woman Group

Location: 9058 Rose Street, Bellflower, CA 90706

Date of Audit: June 19, 2025

Examiner: Chris Wills

Audit Commentary:

The Medicine Woman Group, LLC d/b/a The Medicine Woman, hereinafter referred to as “TMW”, is a cannabis dispensary located at 9058 Rose Street, Bellflower, California. TMW is owned by Charis Burrett (50%) and Damian Collins (50%). Brandon Scadron and Roy Woo represented the dispensary during the onsite visit. Mr. Woo and Mr. Scadron presented the records for review. Records were received electronically after the walk-through of the dispensary and were reviewed at Avenu's office.

The scope of the examination was to determine TMW’s compliance with the City’s cannabis tax pursuant to Bellflower City Code § 3.37 et seq. and their compliance with applicable State and Local Laws and Guidelines for the operation of a cannabis dispensary. The review period for the cannabis tax examination is January 1, 2022, through December 31, 2024. During this period, TMW reported $10,017,465 in Gross Receipts and remitted $851,485 in cannabis tax.

Current Methods:

Purchasing Process & Inventory Handling Procedures:

Mr. Scadron has been tasked with the responsibility of making all inventory purchases for the facility. Inventory is purchased, as needed, through licensed vendors. TMW pays their vendors either by check or the use of automated clearing house (“ACH”) transfers. Each inventory shipment includes a certificate of analysis, shipping manifest, and purchase invoice.

Upon arrival, the delivery driver signs in with the front desk prior to being allowed into the facility. Either Mr.

Scadron or another manager is called to meet the driver in the waiting area. After the driver is met, they are instructed on where to bring the new inventory into the facility. Inventory is received in a back office/receiving area by the manager, at which point the items are inspected to confirm that all packages are properly sealed and match the manifest details. After the manifest details are confirmed, the manifest is accepted in the State’s tracking system, METRC. Once accepted in METRC, the manifest is automatically synced with TMW’s POS/track and trace system, Treez, and the inventory count is updated to reflect the new product. Once accepted into Treez, a unique barcode is assigned to the products and stickers are printed and placed on the products for tracking purposes. The selling price for each of the new inventory items is set and matched to the barcode before the inventory is either placed in the showroom or placed into their inventory storage room.

A full inventory count is conducted annually by the staff, with cycle counts being completed weekly. Cycle counts consist of pulling certain categories of product, such as flower, extracts, pre-rolls, edibles, etc., and counting those items individually. Both the cycle count and the full inventory count are completed by exporting the expected inventory levels from Treez, which present the current levels in real time, and scanning the barcodes to make sure the quantities match. If discrepancies are discovered the product is recounted and a manager researches the issue if it is still present after the recount. If the discrepancy cannot be accounted for, an adjustment is entered into Treez, which also reports to the State through METRC. Reason codes are required to finalize an adjustment within METRC. At the end of the day, inventory on the showroom floor is locked in their - 26 -

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cabinets/display cases and backstock items are locked in large safes in limited access areas. Only a select few personnel have access to the backstock safe and limited access areas.

Customer Check-in/verification Procedures:

Customers are welcomed at the front desk by security, where they are required to present their identification, such as a driver’s license, and their medical recommendations (if available). In the case of a new customer, a new member profile is created for them in Treez by entering their information from their driver’s license, scanning to get the customer picture, and entering a telephone number. If a customer presents a doctor’s recommendation, the recommendation is verified and scanned into the system. The customer's recommendation is saved to their profile during the initial account set up, afterwards the recommendation is not needed for return visits until the recommendation expires. Returning customers are verified/checked in by scanning the barcode on the back of the customer's ID which automatically pulls up the customer's profile. After being checked in, the customer is placed in the “queue” for the next available budtender, i.e. sales associate, to help them. TMW tries to maintain a 1-to-1 ratio, meaning one customer (or group) to one budtender. Once inside the facility, customers are greeted by a budtender to discuss their needs and is provided consultation regarding available products that meet those needs. Budtenders access customer information in real time via Treez to make sure they do not exceed the maximum amount of cannabis legally allowed based on whether the customer is a medical or adult use customer.

Sales and Cash Handling Procedures:

TMW has two types of customers, pick-up/delivery and in-store purchases. Pick-up/delivery customers order their products online. If the customer selects pick-up, they will come to the store to pick up their order once they are notified it is ready. Customers that select delivery will have their purchase delivered to them by a TMW employee. In-store customers have their transactions completed in the POS system, Treez, by scanning the barcode on the product(s) that are being purchased by the customer. TMW provides an ATM to their in-store customers so that they can withdraw cash to complete their purchase. TMW fills the ATM machine from cash on hand. Customers are charged a fee to withdraw cash from the ATM.

Budtenders are responsible for managing their own cash register and entering each transaction into Treez which accounts for all monies and inventory management. At the beginning of each day, each cash register till is supplied with cash and issued to a budtender. That budtender will be responsible for their till/cash register until the till is closed out. Tills are closed either at the end of the shift or on an as needed basis based on the amount of cash inside. At the end of the day/shift, the budtender will close out their cash drawer and hand it over to a closing manager to count out. The closing manager removes the deposit amount from the drawer, logs the amount in the system, and places the deposit (total cash minus start up amount) into their smart safe1. The smart safe is synced with their bank and presents a deposit log to TMW for their records. When all the drawers have been balanced, the closing manager will close out the daily sales and report the amounts to their accounting team.

Reporting:

TMW records all sales transactions in Treez2. Each customer receipt includes the price of the item(s) purchased as well as separately stated state and local taxes. Taxes listed out include sales tax at 10.25%, the City’s

1 Once the deposits go into the smart safe, liability of the money is shifted to the bank. The bank will send an armored truck around once a week, or as needed, to empty the safe.
2 Delivery fees charged to customers were not listed in the original POS reports provided by TMW. TMW requested the help of Treez to pull the delivery transactions so that applicable delivery fees could be presented for review. - 27 -

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cannabis tax at 8.5%, and cannabis excise tax at 15%. At the end of each month, TMW generates a monthly sales summary report from Treez and sends it over to their accounting team to compare with the daily close out reports. At the end of the quarter, the quarterly gross receipts are totaled and reported to the City.

Audit Procedures and Testing Methodology:

Prior to the beginning of the examination, a letter of intent to audit was mailed by the City of Bellflower’s Finance Department. A preliminary interview was conducted by phone to introduce the auditor to the appropriate personnel at TMW and to familiarize the auditor with the products and services offered by the dispensary. An onsite visit was completed on June 19, 2025, during which the auditor reviewed the sales practices, customer check-in procedures, and inventory management procedures.

Documents reviewed included: Bellflower cannabis tax returns, Treez / POS monthly sales detail and summary reports, month/quarter end working papers, bank statement, inventory purchase logs, and sample customer receipts. Gross receipts from the POS sales reports were recalculated and compared to the working paper amounts to confirm the calculated taxable gross receipts. The bank statements were also reviewed to verify the amount of cash deposited did not exceed the amount reported to the City. Sample customer receipts were requested to confirm how TMW presented taxes to their customers and to reconcile the amounts listed in the sales reports. Inventory purchase logs were compared to the POS sales details to reconcile purchases with sales to confirm inventory levels were representative of the sales completed. Once the taxable gross receipt amounts were confirmed, they were reconciled to the cannabis tax returns to verify they were accurately reported to the City.

Avenu performed the following tasks to verify TMW’s adherence to California Health and Safety Code § 11018, § 11362.5, and § 11362.7 et seq. include:
• Walk Through of Customer Verification Process
• Walk Through of Vendor Verification Process

While onsite, a sample inventory count was conducted to verify if the inventory management function within Treez was functioning as it should. To complete this count, five (5) items were randomly selected to count and were compared with the inventory level in Treez. The table below details the brand, items selected, the available amount, and the counted total.

Brand Product Available
per Treez
Counted by
Auditor
St. Ides Purple Grape Tincture 9 9
Lost Farms Watermelon 18 18
Alpin Cannatonic 8 8
Pistil Whip Frozen Banana 8 8
Coastal Sun Tropicana Cherry 5 5

Applicable Sections of Law and Municipal Code:

Bellflower City Code § 3.37 et seq.

California Health and Safety Code § 11018, § 11362.5, and § 11362.7 et seq.

California Revenue and Taxation Code § 34010 - 34021.5
California Business and Professional Code § 26000 - 26231.2

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Audit Findings and/or Errors Discovered:

During the audit it was determined that a cannabis tax liability existed. The liability was comprised of primarily two issues. The first issue was that TMW charged and collected the City’s cannabis tax from their customers and did not report those amounts as taxable gross receipts. The City’s cannabis tax is a tax on the business for the privilege of conducting business within the City. The tax imposed by the City under Bellflower Municipal Code § 3.37 is a direct tax on the cannabis business rather than an indirect tax imposed on the consumer (such as sales tax and excise tax). Bellflower Municipal Code § 3.37.060 D.1 states that “every person who is engaged in business as a dispensary … in the City must pay an annual commercial cannabis tax”. Since the tax is levied on the business itself, if the amount is collected from the customer, that amount is considered gross receipts based on the broad definition thereof. In this instance, the tax was collected from the customers; therefore, the amounts collected should be included within the gross receipts reported to the City.

The second issue discovered was that TMW charged their customers a delivery fee on transactions that are delivered to their customers and did not report those amounts as gross receipts to the City. Pursuant to the City’s definition of gross receipts, amounts received for “the performance of any act or service” in which a charge is made is deemed to be included. Delivery fees are charged for the delivery service provided by TMW and therefore, should be included within the total gross receipts reported to the City. The delivery fees were not listed on the POS transactions provided; however, the fees were identified when reviewing a few sample receipts. The actual amount received for delivery fees for the audit period was requested from TMW. TMW provided a list of all delivery fees charged for the audit period in a declaration provided during the hearing.

Additional support was requested to confirm the amounts were listed accurately. Upon review of the additional support, it was determined that the amounts provided were reliable; therefore, those amounts have been incorporated into the results of the audit. The tables below breakdown the amounts reported to the City as well as the audited gross receipts.

Table 1 below details the audited gross receipts that should have been reported to the City for each reporting period.

Table 1- Audited Gross Receipts
Filing
Period
Calendar
Period
Net Sales Cannabis Tax
(City)
Delivery
Fees3
Audited Gross
Receipts
(a) (b) (c) (d)= (a) + (b) + (c)
2021-22-Q3 Jan-Mar: 2022 $1,017,738.11 $83,619.51 $4,750.00 $1,106,107.62 2021-22-Q4 Apr-Jun: 2022 $1,001,235.04 $82,200.62 $0.00 $1,083,435.66 2022-23-Q1 Jul-Sep: 2022 $935,267.94 $76,793.50 $0.00 $1,012,061.45 2022-23-Q2 Oct-Dec: 2022 $892,896.90 $72,949.47 $0.00 $965,846.37 2022-23-Q3 Jan-Mar: 2023 $842,697.17 $69,252.38 $0.00 $911,949.55 2022-23-Q4 Apr-Jun: 2023 $826,699.80 $67,954.96 $0.00 $894,654.76 2023-24-Q1 Jul-Sep: 2023 $787,645.39 $64,512.59 $0.00 $852,157.97 2023-24-Q2 Oct-Dec: 2023 $776,238.00 $63,092.04 $0.00 $839,330.04 2023-24-Q3 Jan-Mar: 2024 $751,090.06 $61,314.71 $0.00 $812,404.77 2023-24-Q4 Apr-Jun: 2024 $734,124.24 $61,024.64 $0.00 $795,148.87 2024-25-Q1 Jul-Sep: 2024 $690,890.11 $57,464.13 $0.00 $748,354.24 2024-25-Q2 Oct-Dec: 2024 $659,022.92 $54,466.22 $0.00 $713,489.15 Total Audited Gross Receipts $9,915,545.68 $814,644.76 $4,750.00 $10,734,940.44

3 In early 2022, TMW transitioned away from charging a delivery fee on their delivery services to be more competitive. Consequently, delivery fees were gradually discontinued so that the service was completed free of charge. Delivery services began to declin e around September 2022 and was completely phased out by November 2024. - 29 -

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Table 2 compares the amounts originally reported to the City by TMW to the audited gross receipts.

Table 2- Audit Results: City Cannabis Tax
Filing
Period
Calendar
Period
Gross Receipts
reported to City
Audited Gross
Receipts
Difference (Over)
/ Under Reported
Cannabis Tax (Over)
/ Under Paid
(a)(b)(c) = (b) – (a)(d) = (c) x 8.5%
2021-22-Q3 Jan-Mar: 2022 $1,112,641.97 $1,106,107.62 ($6,534.35) ($555.42) 2021-22-Q4 Apr-Jun: 2022 $1,098,685.73 $1,083,435.66 ($14,170.07) ($1,296.26) 2022-23-Q1 Jul-Sep: 2022 $1,031,208.79 $1,012,061.45 ($19,147.34) ($1,627.52) 2022-23-Q2 Oct-Dec: 2022 $858,229.02 $965,846.37 $107,622.35 $9,147.47 2022-23-Q3 Jan-Mar: 2023 $842,697.17 $911,949.55 $69,252.38 $5,886.45 2022-23-Q4 Apr-Jun: 2023 $799,470.06 $894,654.76 $95,184.70 $8,090.70 2023-24-Q1 Jul-Sep: 2023 $758,971.63 $852,157.97 $93,186.34 $7,920.84 2023-24-Q2 Oct-Dec: 2023 $742,259.00 $839,330.04 $97,071.04 $8,251.04 2023-24-Q3 Jan-Mar: 2024 $721,349.48 $812,404.77 $91,055.29 $7,739.70 2023-24-Q4 Apr-Jun: 2024 $735,124.24 $795,148.87 $60,024.63 $5,102.09 2024-25-Q1 Jul-Sep: 2024 $676,048.57 $748,354.24 $72,305.67 $6,145.98 2024-25-Q2 Oct-Dec: 2024 $640,779.11 $713,489.15 $72,710.04 $6,180.35 City Cannabis Tax Results $10,017,464.77 $10,734,940.44 $717,475.67 $60,985.42 Penalty and Interest:

Pursuant to Bellflower City Code § 3.37.140 B, if any cannabis tax is found to be delinquent, a total penalty amount of twenty percent (20%) is due on the amount owed. Additionally, Bellflower City Code § 3.37.140 E imposes interest in the amount of three-quarters of one percent (.75%) per month on the amount of cannabis tax found to be delinquent. Interest is calculated until the delinquent tax is paid. Table 3 below shows the calculation of penalty and interest owed per the additional tax due.

Table 3: Audit Results (Including Penalty and Interest) Filing
Period
Calendar
Period
Cannabis Tax Due Penalty- 20% Interest4 Total Due
(a) (b) = (a) * 20%(c) (d) = (a) + (b) + (c)
2021-22-Q3 Jan-Mar: 2022 ($555.42) $0.00 $0.00 ($555.42) 2021-22-Q4 Apr-Jun: 2022 ($1,296.26) $0.00 $0.00 ($1,296.26) 2022-23-Q1 Jul-Sep: 2022 ($1,627.52) $0.00 $0.00 ($1,627.52) 2022-23-Q2 Oct-Dec: 2022 $9,147.47 $1,829.49 $2,332.61 $13,309.57 2022-23-Q3 Jan-Mar: 2023 $5,886.45 $1,177.29 $1,368.60 $8,432.34 2022-23-Q4 Apr-Jun: 2023 $8,090.70 $1,618.14 $1,699.05 $11,407.89 2023-24-Q1 Jul-Sep: 2023 $7,920.84 $1,584.17 $1,485.16 $10,990.17 2023-24-Q2 Oct-Dec: 2023 $8,251.04 $1,650.21 $1,361.42 $11,262.67 2023-24-Q3 Jan-Mar: 2024 $7,739.70 $1,547.94 $1,102.91 $10,390.55 2023-24-Q4 Apr-Jun: 2024 $5,102.09 $1,020.42 $612.25 $6,734.76 2024-25-Q1 Jul-Sep: 2024 $6,145.98 $1,229.20 $599.23 $7,974.41 2024-25-Q2 Oct-Dec: 2024 $6,180.35 $1,236.07 $463.53 $7,879.95 Total Audit Results $60,985.42 $12,892.93 $11,024.76 $84,903.11 4 The City’s interest rate is set at .75% simple interest per month. November 30, 2025 , has been used as the pay date to calculate interest.
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References:

Bellflower City Code, § 3.37.020 Definitions.

“Gross receipts,” except as otherwise specifically provided, means the total amount actually received or receivable from all sales; the total amount or compensation actually received or receivable for the performance of any act or service, of whatever nature it may be, for which a charge is made or credit allowed, whether or not such act or service is done as a part of or in connection with the sale of materials, goods, wares or merchandise; discounts, rents, royalties, fees, commissions, dividends, and gains realized from trading in stocks or bonds, however designated. Included in “gross receipts” is all receipts, cash, credits and property of any kind or nature, without any deduction there from on account of the cost of the property sold, the cost of materials used, labor or service costs, interest paid or payable, or losses or oth er expenses whatsoever, except that the following is excluded:

1. Cash discounts where allowed and taken on sales;

2. Credit allowed on property accepted as part of the purchase price and which property may later be sold, at which time the sales price is included as gross receipts;

3. Any tax required by law to be included in or added to the purchase price and collected from the consumer or purchaser;

5. Receipts from investments where the holder of the investment receives only interest and/or dividends, royalties, annuities and gains from the sale or exchange of stock or securities solely for a person’s own account, not derived in the ordinary course of a business;

6. Receipts derived from the occasional sale of used, obsolete or surplus trade fixtures, machinery or other equipment used by the taxpayer in the regular course of the taxpayer’s business;

8. Receipts of refundable deposits, except that such deposits when forfeited and taken into income of the business must not be excluded when in excess of one dollar ($1.00);

Bellflower City Code, § 3.37.060

D. Tax on All Other Commercial Cannabis Businesses.

2. Beginning on July 1, 2020, the tax rate will automatically increase each fiscal year by two and one-half percent (2.5%). Except as otherwise provided, the maximum tax rate is ten percent (10%) per fiscal year on gross receipts. (Ord. 1332 § 1, 12/12/16; Ord. 1324 § 1, 3/7/17)

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Bellflower City Code, § 3.37.110

Unless voter approval is required by the California Constitution or applicable law, the City Council may exercise all applicable powers set forth in the Government Code including, without limitation, amending this chapter by ordinance upon three (3) affirmative votes by its members. It may, in additional, adopt by ordinance or resolution such additional regulations that may be necessary to implement the purposes of this chapter. (Ord. 1332 § 1, 12/12/16; Ord. 1324 § 1, 3/7/17)

Bellflower City Code, § 3.37.140

A. Taxes collected from a person, or owed by a person which are not received by the administrator on or before the due dates provided in this chapter are delinquent and are subject to penalties and interest. Should the due date occur on a weekend or legal holiday, the return must be received by the administrator on the first regular working day following a Saturday/Sunday or legal holiday. A direct deposit, including electronic fund transfers and other similar methods of electronically exchanging monies between financial accounts, made by a person in satisfaction of its obligations under this subsection is considered timely if the transfer is initiated on or before the due date, and the transfer settles into th e City's account on or before the following business day.

B. If the person required to remit the tax fails to remit the tax, the administrator will attach a penalty for such delinquencies or deficiencies at the rate of five percent (5%) of the total tax that is delinquent or deficient in the remittance, and if not remitted within two (2) working days after the date of the delinquency, will pay a total penalty of twenty percent (20%) of the amount of tax owed.

C. In addition to all other authorizations under this section, the administrator may impose a maximum civil penalty of five thousand dollars ($5.000.00) per day upon an unlicensed cannabis facility that fails to remit any tax required by this chapter.

D. The administrator has the power to impose additional penalties upon persons required to remit taxes under the provisions of this chapter for fraud or gross negligence in reporting or remitting at the rate of fifty percent (50%) of the amount of the tax required to be remitted, or as recomputed by the administrator.

E. In addition to any other penalties imposed by this chapter, any person required to remit any tax imposed by the provisions of this chapter who fails to remit the tax must pay interest at the rate of three-quarters of one percent (0.75%) per month, or any fraction thereof, on the amount of the tax, exclusive of penalties, from the date on which the remittance first became delinquent, until paid.

F. No penalty or interest will be applied if delinquencies are the result of natural disasters or other phenomena beyond the control of the person charged with remitting the tax, provided the person being delinquent notifies the administrator as soon as normal communications permit. (Ord. 1332 § 1, 12/12/16; Ord. 1338 § 3, 5/22/17)

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4905-1979-6876 v1
Los Angeles – Inland Empire – Marin County – Oakland – Orange County – Palm Desert – San Diego – San Francisco – Silicon Valley – Ventura County 444 South Flower Street , 40th Floor
Los Angeles, CA 90071 -2942
voice 213.236.0600 - fax 213.236.2700
www.bwslaw.com
January 30, 2026
Jennifer McGrath, Esq.

Law Officers Jennifer McGrath
9114 Adams Ave #264, Huntington
Beach, CA 92646
[email protected]
The Medicine Woman Group, LLC.
(d.b.a. The Medicine Woman)
9058 Rose Street
Bellflower, CA 90706

Re: DEMAND FOR PAYMENT AND NOTICE OF SUSPENSION
The Medicine Woman Group, LLC.

Dear Ms. McGrath:

Thank you for speaking with me this week. This correspondence is in regards to your client, The Medicine Woman Group, LLC, concerning past due taxes and permit renewal fees for the cannabis dispensary located at 9058 Rose Street in the City of Bellflower (the “City”).

After thorough review of this matter, the City Attorney’s Office has concluded that Bellflower Municipal Code (“BMC”) § 3.37.180(B) is applicable here concerning your client’s appeal rights to dispute the December 11, 2025 Audit Report. It states in relevant part:

BMC 3.37.180 – Appeals.

A. The provisions of this section apply to any assessment, decision or administrative ruling of the (tax) administrator, other than a decision relating to a refund. Any person aggrieved by any assessment, decision or administrative ruling of the administrator, other than a decision relating to a refund, is required to comply with the appeals procedure of this section. Compliance with this section is a prerequisite to a lawsuit. Nothing permits the filing of a claim or action on behalf of a class or group of taxpayers.

B. If any person is aggrieved by any assessment, decision or administrative ruling of the administrator, other than a decision relating to a refund; or with the failure of the administrator to grant an exemption as provided - 33 -

B URKE, WILLIAMS & SORENSEN, L LP

The Medicine Woman Group, LLC. (d.b.a. The Medicine Woman) January 30, 2026

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for under this chapter; he or she may appeal to the City Council by filing a notice of appeal with the City Clerk within 14 days of the date of the assessment, decision or administrative ruling of the administrator which aggrieved the person or person. (Underline added.)
On December 11, 2025, Finance Director and tax administrator, Anna Garan, provided your client with her assessment of unpaid taxes to the City with an audit report and past due owed. Any notice of appeal concerning that assessment needed to be filed with the City Clerk no later than December 26, 2025. We have no record of compliance with BMC § 3.37.180. Consequently, any appeal rights regarding that assessment have been waived.

Even if your client were in a position to file such an appeal, our review indicates that the conclusions of your client’s tax liabilities made in the audit report dated December 11, 2025 are substantiated. For example, BMC § 3.37.020 defines “gross receipts” upon which tax to the City is calculated as including:
…the total amount actually received or receivable from all sales; the total amount or compensation actually received or receivable for the performance of any act or service, of whatever nature it may be, for which a charge is made or credit allowed, whether or not such act or service is done as a part of or in connection with the sale of materials, goods, wares or merchandise… (Underline added.)
Furthermore, the calculation of gross receipts includes all taxes recovered from consumers that are not otherwise “required by law to be included in or added to the purchase price and collected from the consumer or purchaser.” (BMC § 3.37.020(3).) No unpaid taxes asserted from the Audit Report were based on excluded taxes.

Lastly with regard to the Audit Report, delivery was assumed based on a random sample of receipts that revealed deliveries were made from the dispensary during the audit period. The auditor even reached out to The Medicine Woman’s accountant , Ian DeLaura, in early November of 2025 regarding this issue before the Audit Report was issued. Mr. DeLaura stated he would respond to the request for more records in a matter of days but never did. As a result, the auditor extrapolated delivery fees based on the random sample for purposes of the Audit report.

But again, this is all now moot as time to file an appeal of the tax administrator’s assessment that encompasses all these issues expired last December. - 34 -
BURKE, WILLI/\MS & SORENSEN, LLP

The Medicine Woman Group, LLC. (d.b.a. The Medicine Woman) January 30, 2026

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4905-1979-6876 v1
You also indicated it was improper for Ms. Garan to apply your client’s payment of $38,847.00 to past due taxes, rather than your client’s Annual Cannabis Business Permit Fee. By way of context, on December 17, 2025, the City Manager explicitly advised your client in writing that although the City Council approved renewal of your client’s Cannabis Business Permit (“CBP”) for 2026, the permit fee of $38,847.00 must be paid for that CBP to be active. That letter further advised that The Medicine Woman’s then current permit would “expire on December 31, 2025,” and that “OPERATING A CANNABIS RELATED BUSINESS WITHOUT A VALID PERMIT IS UNLAWFUL AND MAY RESULT IN SEVERE CRIMINAL AND CIVIL PENALTIES.” On January 9, 2026, your client sought to present payment of $38,847.00 for the 2026 CBP. Ms. Garan explicitly advised your client verbally, as she had previously done in writing, that any funds provided to the City would be applied first to the outstanding balance due. After acknowledging this advisal, your client agreed to remit that $38,847.00 in (partial) satisfaction of the unpaid taxes.

Please Be Advised that because of the unpaid balance due, The Medicine Woman location in Bellflower is currently deemed suspended per BMC §

14.28.040(2), and any operation of the dispensary is unlawful and subject to enforcement under the BMC and State law. Such enforcement may include, without limitation, daily administrative fines of $5,000 for each day of operation (BMC §

8.48.100), seizure and destruction of all cannabis products on-site pursuant to public nuisance abatement warrant, and misdemeanor criminal prosecution.

Please Be Further Advised that, as a courtesy, the City has not taken any enforcement action for operating an unlawful cannabis dispensary. The Medicine Woman is being provided until 3:00 p.m. on February 9, 2026, to remit the total due amount of $102,210.19. If payment in full is not received by this date and time, the City may, at its sole discretion, initiate enforcement action.

Please Be Further Advised that The Medicine Woman is also required to pay any tax liability for the July-September 2025 tax period by February 9, 2026, and the October-December 2025 tax period is due by February 2, 2026. This is separate from, and in addition to, the existing balance of $102,210.19.

When considering your response to this Notice, you may also want to advise your client that the terms of their operating a cannabis business in Bellflower specifically includes a defense and indemnity provision concerning any legal challenge involving The Medicine Woman business. This includes any action brought by your client against the City.
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BURKE, WILLI/\MS & SORENSEN, LLP

The Medicine Woman Group, LLC. (d.b.a. The Medicine Woman) January 30, 2026

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I appreciate this is likely not the response you were hoping for and you may have questions regarding the contents of this letter. Please feel free to reach out to me at 619-814-5810 or at [email protected].

Sincerely,

BURKE, WILLIAMS & SORENSEN, LLP
Karl H. Berger, City Attorney
City of Bellflower

________________________________
by: Timothy E. Campen
Assistant City Attorney

cc: Anna Garan, Director of Finance
Ryan Smoot, City Manager
Karl H. Berger, City Attorney
Solange Fortenbach, Deputy City Attorney
- 36 -
BURKE, WILLI/\MS & SORENSEN, LLP

- 37 -
City of Bellflower

LAW OFFICES OF

JENNIFER MCGRATH
9114 Adams Avenue #264 , Huntington Beach, CA 92646
714 .231.2124 I [email protected]
Attn: Ryan Smoot, City Manager
16600 Civic Center Drive
Bellflower CA 90706
Via email only
[email protected]
RE: Request for Hearing on Notice of Suspension of Cannabis Business Permit of The Medicine Woman Group, LLC, dated January 30, 2026
Dear Mr. Smoot:

On January 30, 2026, The Medicine Woman Group, LLC was notified that their Cannabis Business Permit has been suspended effective 3 p.m. on February 9, 2026, due to an unpaid balance of $102,210.19 ($93,210.90 cannabis taxes+ $9000.00 auditor fees), by Assistant City Attorney Tim Campen. The Medicine Woman is exercising its right to a request a hearing before the City Manager under Bellflower Municipal Code ("BMC") 14.28.040(0). Said hearing to be scheduled within 30 days.

BMC 14.28.040(E). Although there is no BMC code requirement to state the grounds for the hearing, The Medicine Woman felt it would better serve both the City and The Medicine Woman to detail the reasons for this request.

Grounds for Hearing:
1 . Defective Suspension and Notice. Pursuant to BMC 14.28.040(6), the City Manager is the official with the power to suspend a Cannabis Business Pennit but, in this case, it appears the City Attorney's office improperly made that decision , and the notice of suspension must "provide information regarding the right to a hearing before the City Manager," which it did not.

2. Inadequate grounds for suspension. Pursuant to BMC 14.28.040(A)(2), the City Manager's authority to suspend or revoke is limited to "[i]f the permittee violates any condition imposed by this title or by the tenns of the permit." The payment of taxes are not a condition imposed by the BMC or by the terms of the permit; moreover, the City failed to provide The Medicine Woman with proper notice of any tax assessment and the requisite hearing to object to the tax assessment pursuant to BMC 3.37.150. That section requires that formal notice of any tax assessment be mailed by the administrator to The Medicine Woman with details of the assessment and the time and place where the assessment may be contested at least 10 days before a hearing on the assessment. That was not done. The December 11, 2025, email from Anna Garan, Director of Finance, was not mailed, does not contain the requisite information, and there was no hearing providing an opportunity for interested

- 38 -
parties to object. Once that hearing takes place, then the assessment, decision, or administrative ruling may be appealed to the City Council under BMC 3.37.180.

3. Intentional Interference. The City appears to be intentionally interfering with The Medicine Woman's legal rights. The City first claimed that The Medicine Woman was notified of a final decision on the tax assessment in November and that its appeal rights ran out later that month . Then the City changed its story and claimed The Medicine Woman was notified of a final decision on the tax assessment in December and that its appeal rights ran out later that month. Neither is true and The Med icine Woman still has not been given proper notice of any final decision on the tax assessment, nor a hearing on the tax assessment. This entire time the City has been aware that The Medicine Woman disagrees with and objects to the tax assessment. The City's suspension of The Medicine Woman's Cannabis Business Permit appears to be an improper tactic to interfere with The Medicine Woman's legal rights and coerce it into acquiescing in the City's unlawful conduct. The City has even gone so far as to instruct its employees not to talk to The Medicine Woman. And, when attorneys for The Medicine Woman requested the City Attorney's office provide the permit suspension appeal form approved by the City Manager to request a hearing with the City Manager as required by BMC

14.28.040(D), the City Attorney's office failed and refused to do so.

4. Abuse of Discretion. All of the above demonstrates that the City has failed to follow its own rules and that city officials have failed to perform their duty. To the extent the City exercised discretion in its decisions, the City abused that discretion and its actions and determinations on such matters were/are arbitrary, capricious, and unfair. In so doing , the City has violated The Medicine Woman 's due process and equal protection rights under the applicable law including the Bellflower Municipal Code , state law , and the state and federal Constitutions.

A written brief and testimony will be presented at the hearing as well. We look forward to the hearing.

Sincerely,
~/f/~r~-»tCfMT/1
Jennifer McGrath , Esq.

I, Charis Surrett, Chief Executive Officer, The Medicine Woman Group, LLC, authorize this request for heMng submitted on~f ~~
~~ d/44::

Cc:

Berger, Karl H.([email protected])
Tim Campen {[email protected])
Charis Surrett Date
Solange Fortenbach ([email protected])
Mayra Ochiqui ([email protected])
Anna Garan ([email protected])
Wangsu Lee ([email protected])

4911-6064-3469 v1
Los Angeles – Inland Empire – Marin County – Oakland – Orange County – Palm Desert – San Diego – San Francisco – Silicon Valley – Ventura County 444 South Flower Street , 40th Floor
Los Angeles, CA 90071 -2942
voice 213.236.0600 - fax 213.236.2700
www.bwslaw.com
February 5, 2026
VIA U.S.P.S. MAIL AND ELECTRONIC MAIL

Jennifer McGrath, Esq.

Law Officers Jennifer McGrath
9114 Adams Ave., #264
Huntington Beach, CA 92646

[email protected]
Luke Burrett
The Medicine Woman Group, LLC.
(d.b.a. The Medicine Woman)
9058 Rose Street
Bellflower, CA 90706

[email protected]

Re: NOTICE OF TAX ASSESSMENT HEARING

NOTICE OF RECEIPT OF CBP SUSPENSION APPEAL

NOTICE OF VIOLATION
The Medicine Woman Group, LLC.

Dear Ms. McGrath and Mr. Burrett:

As a show of good faith and on behalf of the Bellflower Director of Finance and tax administrator, Anna Garan, a hearing before the tax administrator to contest her assessment of The Medicine Woman’s unpaid cannabis business taxes to the City of Bellflower (BMC § 3.37.080), a hearing has been set as follows:

NOTICE OF TAX ASSESSMENT HEARING
per BMC § 3.37.150

February 17, 2026 at 1:00 p.m.

Bellflower City Hall
16600 Civic Center Dr.

Bellflower CA 90706

Attached hereto as Exhibit A is a tax audit regarding The Medicine Woman, previously provided to your client on or about December 11, 2025, which constitutes the tax assessor’s assessment regarding unpaid taxes pursuant to BMC § 3.37.120, et seq. - 39 -

B URKE, WILLIAMS & SORENSEN, L LP

Jennifer McGrath, Esq.

Luke Burrett
The Medicine Woman Group, LLC. (d.b.a. The Medicine Woman) February 5, 2026

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4911-6064-3469 v1

NOTICE OF RECEIPT OF

CBP SUSPENSION APPEAL

Furthermore, this is Notice that the City of Bellflower (City) is in receipt of your request to appeal the City Manager’s suspension of The Medicine Woman’s cannabis business permit (CBP) dated January 30, 2026, pursuant to BMC Chapter 14.28. A hearing for this matter will be set before the Bellflower City Council within 45 days. In lieu of a form provided by the City Clerk to submit, please mail to the City Clerk written responses to the following pursuant to BMC § 14.28.050(B):

1. The name, address and telephone number of the person making the appeal;

2. A description of the decision, determination or order which is the subject of the appeal and the date such decision, determination or order was made or issued; and

3. A complete description of all grounds for appeal, together with any evidence in support of the appeal.

NOTICE OF VIOLATION

Please Be Advised that the Medicine Woman Dispensary in Bellflower is currently operating unlawfully without a valid Cannabis Business Permit in violation of BMC §§ 14.08.010, et seq. On December 16, 2026, The Medicine Woman was mailed the following advisal from the City of Bellflower:

NOTE THAT THE CURRENT PERMIT EXPIRES ON DECEMBER 31,
2025. OPERATING A CANNABIS RELATED BUSINESS WITHOUT

A VALID PERMIT IS UNLAWFUL AND MAY RESULT IN SEVERE
CRIMINAL AND CIVIL PENALTIES.

As detailed in my letter to you dated January 30, 2026, and which is fully incorporated by reference, payment for The Medicine Woman’s 2026 CBP has not been received. Any funds remitted to the City must first satisfy unpaid cannabis business - 40 -
BURKE, WILLI/\MS & SORENSEN, LLP

Jennifer McGrath, Esq.

Luke Burrett
The Medicine Woman Group, LLC. (d.b.a. The Medicine Woman) February 5, 2026

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4911-6064-3469 v1
taxes before being applied to the 2026 CBP. A refund of any paid taxes will be provided, if required, following final administrative or judicial determination of The Medicine Woman’s appeal of the tax administrator’s assessment, as referenced above.

Please Be Further Advised that enforcement relating to operating an unpermitted cannabis dispensary is under the authority of the City Attorney, pursuant to BMC Chapter 14.28, and is separate and independent from the City Manager’s suspension of The Medicine Woman’s permit.

Please Be Further Advised that because the 2026 CBP fees have not been paid, The Medicine Woman location in Bellflower is currently operating unlawfully without a CBP. Any operation of an unpermitted dispensary in the City is subject to enforcement under the BMC and State law. Such enforcement may include, without limitation, daily administrative fines of $5,000 for each day of operation (BMC §

8.48.100), seizure, and destruction of all cannabis products on-site pursuant to public nuisance abatement warrant, civil injunctive relief, and misdemeanor criminal prosecution. (BMC §§ 14.28.010-020.)
Please Be Further Advised that, as a courtesy, the City Attorney has not taken any enforcement action for operating an unlawful cannabis dispensary. As previously advised on January 30, 2026, The Medicine Woman is being provided until 3:00 p.m. on February 9, 2026, to remit the total due amount of $102,210.19. If payment in full is not received by this date and time, the City Attorney may, at his sole discretion, initiate enforcement action. Any pending hearings before the tax administrator or the City Council will NOT stay enforcement by the City Attorney.

- 41 -
BURKE, WILLI/\MS & SORENSEN, LLP

Jennifer McGrath, Esq.

Luke Burrett
The Medicine Woman Group, LLC. (d.b.a. The Medicine Woman) February 5, 2026

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4911-6064-3469 v1
You may reach me at 619-814-5810 or [email protected] with any questions regarding these Notices.

Sincerely,

BURKE, WILLIAMS & SORENSEN, LLP
Karl H. Berger, City Attorney, City of Bellflower

Timothy E. Campen
Assistant City Attorney

TEC:meh
Enclosure: as stated
cc: Anna Garan, Director of Finance
Ryan Smoot, City Manager

- 42 -
BURKE, WILLI/\MS & SORENSEN, LLP

Jennifer McGrath, Esq.

Luke Burrett
The Medicine Woman Group, LLC. (d.b.a. The Medicine Woman) February 5, 2026

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4911-6064-3469 v1

Exhibit A
Bellflower Tax Administrator’s Assessment
re: past due cannabis business taxes owed
by The Medicine Woman
- 43 -

BURKE, WILLIAMS&SORENSEN, LLP

City of Bellflower, California
Cannabis Tax
Report of Examination

November 24, 2025

The Medicine Woman Group, LLC
d/b/a The Medicine Woman

Examination Period:

January 1, 2022, through December 31, 2024

Finance Department
City Hall
16600 Civic Center Drive
Bellflower, California 90706

Examination Performed by:

Audit Division/Compliance Section
Avenu Insights & Analytics, LLC
600 Beacon Parkway West, Ste. 900
Birmingham, AL 35209

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Avenu Insights & Analytics, LLC
Audit Division
d/b/a: The Medicine Woman Page 2

Business Name: The Medicine Woman Group

Location: 9058 Rose Street, Bellflower, CA 90706

Date of Audit: June 19, 2025

Examiner: Chris Wills

Audit Commentary:

Mr. Woo and Mr. Scadron presented the records for review. Records were received electronically after the walk-through of the dispensary and were reviewed at Avenu's office.

Current Methods:

Purchasing Process & Inventory Handling Procedures:

Upon arrival, the delivery driver signs in with the front desk prior to being allowed into the facility. Either Mr.

Avenu Insights & Analytics, LLC
Audit Division
d/b/a: The Medicine Woman Page 3

cabinets/display cases and backstock items are locked in large safes in limited access areas. Only a select few personnel have access to the backstock safe and limited access areas.

Customer Check-in/verification Procedures:

Sales and Cash Handling Procedures:

TMW has two types of customers, pick-up/delivery and in-store purchases. Pick-up/delivery customers order their products online. If the customer selects pick-up, they will come to the store to pick up their order once they are notified it is ready. Customers that select delivery will have their purchase delivered to them by a TMW employee. In-store customers have their transactions completed in the POS system, Treez, by scanning the barcode on the product(s) that are being purchased by the customer. Treez is configured to round the total selling price down, i.e. in favor of the customer, based on the final amount so that TMW does not have to deal with coins. TMW provides an ATM to their in-store customers so that they can withdraw cash to complete their purchase. TMW fills the ATM machine from cash on hand. Customers are charged a fee to withdraw cash from the ATM.

Reporting:

TMW records all sales transactions in Treez. Each customer receipt includes the price of the item(s) purchased as well as separately stated state and local taxes. Taxes listed out include sales tax at 10.25%, the City’s

1 Once the deposits go into the smart safe, liability of the money is shifted to the bank. The bank will send an armored truck around once a week, or as needed, to empty the safe.
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Avenu Insights & Analytics, LLC
Audit Division
d/b/a: The Medicine Woman Page 4

Audit Procedures and Testing Methodology:

Documents reviewed included: Bellflower cannabis tax returns, Treez / POS monthly sales detail and summary reports, month/quarter end working papers, bank statement, inventory purchase logs, and sample customer receipts. Gross receipts from the POS sales reports were recalculated and compared to the working paper amounts to confirm the calculated taxable gross receipts. The bank statements were also reviewed to verify the amount of cash deposited did not exceed the amount reported to the City. Sample customer receipts were requested to confirm how TMW presented taxes to their customers and to reconcile the amounts listed in the sales reports. Inventory purchase logs were compared to the POS sales details to reconcile purchases with s ales to confirm inventory levels were representative of the sales completed. Once the taxable gross receipt amounts were confirmed, they were reconciled to the cannabis tax returns to verify they were accurately reported to the City.

Brand Product Available
per Treez
Counted by
Auditor
St. Ides Purple Grape Tincture 9 9
Lost Farms Watermelon 18 18
Alpin Cannatonic 8 8
Pistil Whip Frozen Banana 8 8
Coastal Sun Tropicana Cherry 5 5

Applicable Sections of Law and Municipal Code:

Bellflower City Code § 3.37 et seq.

California Health and Safety Code § 11018, § 11362.5, and § 11362.7 et seq.

California Revenue and Taxation Code § 34010 - 34021.5
California Business and Professional Code § 26000 - 26231.2

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Avenu Insights & Analytics, LLC
Audit Division
d/b/a: The Medicine Woman Page 5

Audit Findings and/or Errors Discovered:

The second issue discovered was that TMW charged their customers a delivery fee on transactions that are delivered to their customers and did not report those amount as gross receipts to the City. Pursuant to the City’s definition of gross receipts, amounts received for “the performance of any act or service” in which a charge is made is deemed to be included. Delivery fees are charged for the delivery service provided by TMW and therefore, should be included within the total gross receipts reported to the City. The delivery fees were not listed on the POS transactions provided; however, the fees were identified when reviewing a few sample receipts. The actual amount received for delivery fees for the audit period was requested from TMW, but those amounts were not presented at the time of the audit report. In lieu of having the actuals, a monthly average from the prior audit’s delivery fee revenues were calculated and applied to each month of the current audit period.

The tables below breakdown the amounts reported to the City as well as the audited gross receipts.

Table 1 below details the audited gross receipts that should have been reported to the City for each reporting period.

Table 1- Audited Gross Receipts
Filing Period Calendar
Period
Net Sales Cannabis Tax
(City)
Delivery
Fees2
Audited Gross
Receipts
(a) (b) (c) (d)= (a) + (b) + (c)
2021-22-Q3 Jan-Mar: 2022 $1,017,738.11 $83,142.97 $7,151.50 $1,108,032.58 2021-22-Q4 Apr-Jun: 2022 $1,001,235.04 $81,604.30 $7,151.50 $1,089,990.84 2022-23-Q1 Jul-Sep: 2022 $935,267.94 $76,004.79 $7,151.50 $1,018,424.23 2022-23-Q2 Oct-Dec: 2022 $892,896.90 $72,472.56 $7,151.50 $972,520.97 2022-23-Q3 Jan-Mar: 2023 $842,697.17 $69,082.66 $7,151.50 $918,931.33 2022-23-Q4 Apr-Jun: 2023 $826,699.80 $68,025.23 $7,151.50 $901,876.53 2023-24-Q1 Jul-Sep: 2023 $787,645.39 $64,746.28 $7,151.50 $859,543.16 2023-24-Q2 Oct-Dec: 2023 $776,238.00 $63,982.77 $7,151.50 $847,372.27 2023-24-Q3 Jan-Mar: 2024 $751,090.06 $61,971.27 $7,151.50 $820,212.83 2023-24-Q4 Apr-Jun: 2024 $734,124.24 $60,432.81 $7,151.50 $801,708.55 2024-25-Q1 Jul-Sep: 2024 $690,890.11 $57,036.96 $7,151.50 $755,078.57 2024-25-Q2 Oct-Dec: 2024 $659,022.92 $54,183.88 $7,151.50 $720,358.30 Total Audited Gross Receipts $9,915,545.68 $812,686.47 $85,818.00 $10,814,050.15

2 Average from the prior audit was used as the actuals were not presented during the audit. TMW began charging delivery fees in January 2021. The annual delivery fee revenue in 2021 was $28,606. This amount was divide d by four (4) to come up with the quarterly amount of $7,151.50. This average was applied to all quarters within the audit period. - 48 -

Avenu Insights & Analytics, LLC
Audit Division
d/b/a: The Medicine Woman Page 6

Table 2 compares the amounts originally reported to the City by TMW to the audited gross receipts.

Table 2- Audit Results: City Cannabis Tax
Filing
Period
Calendar
Period
Gross Receipts
reported to City
Audited Gross
Receipts
Difference (Over)
/ Under Reported
Cannabis Tax
(Over) / Under Paid
(a) (b) (c) = (b) – (a) (d) = (c) x 8.5%
2021-22-Q3 Jan-Mar: 2022 $1,112,641.97 $1,108,032.58 ($4,609.39) ($391.80) 2021-22-Q4 Apr-Jun: 2022 $1,098,685.73 $1,089,990.84 ($8,694.89) ($739.07) 2022-23-Q1 Jul-Sep: 2022 $1,031,208.79 $1,018,424.23 ($12,784.56) ($1,086.69) 2022-23-Q2 Oct-Dec: 2022 $858,229.02 $972,520.97 $114,291.95 $9,714.82 2022-23-Q3 Jan-Mar: 2023 $842,697.17 $918,931.33 $76,234.16 $6,479.90 2022-23-Q4 Apr-Jun: 2023 $799,470.06 $901,876.53 $102,406.47 $8,704.55 2023-24-Q1 Jul-Sep: 2023 $758,971.63 $859,543.16 $100,571.53 $8,548.58 2023-24-Q2 Oct-Dec: 2023 $742,259.00 $847,372.27 $105,113.27 $8,934.63 2023-24-Q3 Jan-Mar: 2024 $721,349.48 $820,212.83 $98,863.35 $8,403.38 2023-24-Q4 Apr-Jun: 2024 $735,124.24 $801,708.55 $66,584.31 $5,659.67 2024-25-Q1 Jul-Sep: 2024 $676,048.57 $755,078.57 $79,030.00 $6,717.55 2024-25-Q2 Oct-Dec: 2024 $640,779.11 $720,358.30 $79,579.19 $6,764.23 City Cannabis Tax Results $10,017,464.77 $10,814,050.15 $796,585.38 $67,709.76

Penalty and Interest:

Table 3: Audit Results (Including Penalty and Interest) Filing
Period
Calendar
Period
Cannabis
Tax Due Penalty- 20% Interest3 Total Due
(a) (b) = (a) * 20% (c) (d) = (a) + (b) + (c)
2021-22-Q3 Jan-Mar: 2022 ($391.80) $0.00 $0.00 ($391.80) 2021-22-Q4 Apr-Jun: 2022 ($739.07) $0.00 $0.00 ($739.07) 2022-23-Q1 Jul-Sep: 2022 ($1,086.69) $0.00 $0.00 ($1,086.69) 2022-23-Q2 Oct-Dec: 2022 $9,714.82 $1,942.96 $2,404.42 $14,062.20 2022-23-Q3 Jan-Mar: 2023 $6,479.90 $1,295.98 $1,506.58 $9,282.46 2022-23-Q4 Apr-Jun: 2023 $8,704.55 $1,740.91 $1,762.67 $12,208.13 2023-24-Q1 Jul-Sep: 2023 $8,548.58 $1,709.72 $1,538.74 $11,797.04 2023-24-Q2 Oct-Dec: 2023 $8,934.63 $1,786.93 $1,407.20 $12,128.75 2023-24-Q3 Jan-Mar: 2024 $8,403.38 $1,680.68 $1,197.48 $11,281.54 2023-24-Q4 Apr-Jun: 2024 $5,659.67 $1,131.93 $636.71 $7,428.31 2024-25-Q1 Jul-Sep: 2024 $6,717.55 $1,343.51 $604.58 $8,665.64 2024-25-Q2 Oct-Dec: 2024 $6,764.23 $1,352.85 $456.59 $8,573.67 Total Audit Results $67,709.76 $13,985.46 $11,514.97 $93,210.19

3 The City’s interest rate is set at .75% simple interest per month. November 30, 2025 has been used as the pay date to calcula te interest.
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Avenu Insights & Analytics, LLC
Audit Division
d/b/a: The Medicine Woman Page 7

References:

Bellflower City Code, § 3.37.020 Definitions.

“Gross receipts,” except as otherwise specifically provided, means the total amount actually received or receivable from all sales; the total amount or compensation actually received or receivable for the performance of any act or service, of whatever nature it may be, for which a charge is made or credit allowed, whether or not such act or service is done as a part of or in connection with the sale of materials, goods, wares or merchandise; discounts, rents, royalties, fees, commissions, dividends, and gains realized from trading in stocks or bonds, however designated. Included in “gross receipts” is all receipts, cash, credits and property of any kind or nature, without any deduction there from on account of the cost of the property sold, the cost of materials used, labor or service costs, interest paid or payable, or losses or other expenses whatsoever, except that the following is excluded:

1. Cash discounts where allowed and taken on sales;

2. Credit allowed on property accepted as part of the purchase price and which property may later be sold, at which time the sales price is included as gross receipts;

3. Any tax required by law to be included in or added to the purchase price and collected from the consumer or purchaser;

5. Receipts from investments where the holder of the investment receives only interest and/or dividends, royalties, annuities and gains from the sale or exchange of stock or securities solely for a person’s own account, not derived in the ordinary course of a business;

6. Receipts derived from the occasional sale of used, obsolete or surplus trade fixtures, machinery or other equipment used by the taxpayer in the regular course of the taxpayer’s business;

8. Receipts of refundable deposits, except that such deposits when forfeited and taken into income of the business must not be excluded when in excess of one dollar ($1.00);

Bellflower City Code, § 3.37.060

D. Tax on All Other Commercial Cannabis Businesses.

Bellflower City Code, § 3.37.110
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Avenu Insights & Analytics, LLC
Audit Division
d/b/a: The Medicine Woman Page 8

Bellflower City Code, § 3.37.140

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From:Jennifer McGrath
To:Campen, Timothy E.; Anna Garan
Cc:Ryan Smoot; [email protected]; Berger, Karl H.; Fortenbach, Solange; Ed Pinchiff Subject:The Medicine Woman Group LLC - 3.37.150 Hearing Date:Friday, February 13, 2026 12:00:32 PM
Mr. Campen and Ms. Garan -
The Medicine Woman Group is respectfully requesting a one week extension of the hearing currently scheduled for February 17, 2026, to February 24, 2026. This request is based on the positive discussions of February 9 resolving the outstanding suspension issues and the new arguments presented at that meeting. The Medicine Woman would like an opportunity to present a brief outlining the issues with supporting documentation objecting to the audit results with adequate time in advance for the City and its counsel to review in advance of the hearing.

As Monday is a holiday, please respond by the end of the business day today.

Jennifer McGrath
Law Offices of Jennifer McGrath
7755 Center Avenue, Suite 1100
Huntington Beach CA 92647
(714) 231-2124
https://www.jennifermcgrath.com/

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CITY OF BELLFLOWER

NOTICE OF TAX ASSESSMENT FOR UNPAID TAX, PENALTIES,
INTEREST AND PERMITTEE’S SHARE OF AUDIT COST –

THE MEDICINE WOMAN GROUP, LLC

TAKE NOTICE that the Bellflower Cannabis Tax Administrator will hold a hearing on Tuesday, February 24, 2026, at 1:00 p.m. in the City Council Chambers located at 16600 Civic Center Drive, Bellflower, CA 90706 to consider a tax assessment for unpaid tax, penalties, interest, and permittee’s share of audit cost for The Medicine Woman Group, LLC.

This hearing is open to the public. For all questions related to this matter, please contact telephone number (562) 804-1424, extension 2239. All written comments concerning this may be submitted to the City Clerk’s Office at 16600 Civic Center Drive, Bellflower, CA 90706; or by email at [email protected].

MAYRA OCHIQUI, CITY CLERK

Post: February 17, 2026
Remove: February 25, 2026

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Th e Ci t y of B e llfl owe r
7a.milies. '73us;r1esses. 7-ulures.
16600 Civic Center Drive, Bellflow e r, C A 90706
Tel 562.804.1424 Fax 562.925.8660 www.beUflow er.org

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TO:

ATTENTION:

FROM:

SUBJECT:

DATE:

Honorable Mayor and Members of the City Council
Jeffrey L. Stewart, City Manager
Tae Rhee, Director of Finance/City Treasurer
Consideration and possible action to adopt Resolution No. 22-18 - A Resolution ratifying Administrative Policy and Procedure No. 3 ("AP&P No. 3"), as amended, determining that the City of Bellflower's cannabis tax applies to the sale of industrial hemp-derived products.

May 9, 2022

EXECUTIVE SUMMARY
In accordance with Bellflower Municipal Code ("BMC")§ 3.37.120, the Director of Finance reviewed the cannabis tax regulations within BMC Chapter 3.37 to determine whether the cannabis tax applies to retail establishments selling industrial hemp-derived products.

The cannabis tax regulations are separate from the BMC regulations governing cannabis business permits issued in accordance with BMC Title 14. After reviewing the matter and consulting with the City Attorney's office, the Director of Finance promulgated administrative policy and procedure ("AP&P") No. 3, which authorizes collection of cannabis taxes from the businesses selling industrial hemp-derived products effective July 1, 2019.

On April 20, 2022, the City received a request for refund for cannabis taxes paid by My CBD Hub, LLC totaling $39,761.85. While that request was denied in accordance with the BMC -and is not the subject of this agenda item -it prompted a reexamination of AP&P No. 3. The amended AP&P No. 3, issued on April 28, 2022, clarifies that only those businesses that sell industrial hemp-derived products exceeding 50% of their overall sales are required to pay the cannabis tax. The purpose of Resolution No. 22-18 is to retroactively ratify AP&P No. 3 effective July 1, 2019 and authorize its implementation since that date and as amended on April 28, 2022.

RECOMMENDATION TO CITY COUNCIL
1) Adopt Resolution No. 22-18 which ratifies AP&P No. 3 and authorizes collection of the cannabis tax from the businesses selling industrial hemp-derived products effective July 1, 2019 and amended April 28, 2022; or
2) Alternatively, discuss and take other action related to this item.

Page 1 of 2 ends

-1 -

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Staff Report -Amended AP&P No. 3, Industrial Hemp-Derived Products May 9, 2022

Page 2 of 2 ends

FISCAL IMPACT
The amended AP&P No. 3, issued on April 28, 2022, clarifies that only those businesses that sell industrial hemp-derived products exceeding 50% of their overall sales are required to pay the cannabis tax. Based on the current cannabis tax collection data, the impact of the amended AP&P No. 3 may be approximately $100 per year in reduction in cannabis tax from exempting a business that sells below this 50% threshold.

DISCUSSION
AP&P No. 3 was administratively adopted on July 1, 2019, pursuant to BMC § 3.37.120(A). That section authorizes the Finance Director to promulgate administrative regulations needed to implement BMC 3.37 which governs the cannabis tax authorized by voters in 2017. These regulations are distinctly separate from BMC Title 14 which authorizes cannabis business permits; the cannabis tax is applicable regardless of whether a business is engaging in commercial cannabis activities as defined in BMC Title 14.

Currently, when applying the cannabis tax, retail establishments selling industrial hemp- derived products are considered a "dispensary" for purposes of tax collection under BMC § 3.37.060(0)(1) and must pay the applicable gross receipts tax if the establishment's gross receipts are attributable to the sale of industrial hemp-derived products.

The change to AP&P No. 3 implemented on April 28th clarifies that to be classified a "dispensary" for purposes of tax collection only requires more than 50% of the establishment's gross receipts are attributable to the sale of industrial hemp-derived products. Accordingly, if an establishment's gross receipts attributable to the sale of industrial hemp-derived products are 50% or less, then no cannabis tax would be owed and payable by the business. In contrast, if an establishment's gross receipts attributable to the sale of industrial hemp-derived products are more than 50%, then 100% of the establishment's gross receipts (including non-cannabis items sold such as t-shirts, hats, etc.) would be subject to the cannabis tax.

Such retail establishments, however, are not necessarily required to obtain a cannabis business permit pursuant to BMC Title 14. As explained in greater detail by AP&P No. 3, the definition of "cannabis" in BMC Chapter 3.37 (the cannabis tax regulations) is broader since it does not exclude "industrial hemp" as defined by California law. BMC Title 14, however, contains a narrower definition of "cannabis" to determine whether a business is engaged in commercial cannabis activity and, therefore, is required to obtain a cannabis business permit (BMC § 14.08.010). As a result, a business may be required to pay the cannabis tax, but is not required to obtain a cannabis business permit.

ATTACHMENTS
Resolution No. 22-18 ...................................................................................................... 3 Amended AP&P No. 3 .................................................................................................... 5 -2 -

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CITY OF BELLFLOWER
RESOLUTION NO. 22-18

A RESOLUTION RATIFYING ADMINISTRATIVE POLICY AND
PROCEDURE NO. 3 ("AP&P NO. 3"), AS AMENDED,

DETERMINING THAT THE CITY OF BELLFLOWER'S CANNABIS

TAX APPLIES TO THE SALE OF INDUSTRIAL HEMP-DERIVED

PRODUCTS
THE CITY COUNCIL RES.OLVES AS FOLLOWS:

SECTION 1. The City Council finds and declares as follows:

A. Bellflower Municipal Code ("BMC ")§ 3.37.120 authorizes the City Manager , or designee, to implement BMC Chapter 3.37 by , in part , promulgating administrative policies and procedures ("AP&P") to facilitate collection of the cannabis tax authorized by voters in 2017.

B. On June 25, 2019 , the City Manager promulgated AP&P No. 3 that was subsequently amended on April 28 , 2022 and is attached as Exhibit "A," and incorporated by reference. As set forth in AP&P No . 3, the cannabis tax imposed by BMC Chapter 3.37 applies to all retail establishments selling industrial hemp-derived products within the City 's jurisdiction. As further detailed within AP&P No. 3, while such retail establishments may be required to pay the cannabis tax, they may not be required to obtain a cannabis business permit contemplated by BMC Title 14 .

SECTION 2 . Ratification . The City Council finds that it is in the public interest to ratify the City Manager's actions in promulgating AP&P No. 3 in order to properly implement the will of the voters as set forth in BMC Chapter 3.37 and assist in the collection of the cannabis tax. Accordingly , the City Council retroactively ratifies AP&P No. 3 effective July 1, 2019 and authorizes its implementation since that date and as amended April 28 , 2022 .

SECTION 3. 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 4 . 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 appl:cat ions and , to this end , the provisions of this Resolution are severable .

Page 1 of 2 ends

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City of Bellflower
Resolution No. 22-18

Page 2 of 2 ends

SECTION 5. The Mayor, or presiding officer, is authorized to affix a signature to this Resolution signifying its adoption by the City Council of the City of Bellflower and the City Clerk, or her duly appointed deputy, is directed to attest thereto .

SECTION 6. Electronic Signatures. This Ordinance may be executed with electronic signatures in accordance with Government Code §16.5 . Such electronic signatures will be treated in all respects as having the same effect as an orig i nal signature.

SECTION 7. This Resolution will become effective immediately upon adoption.

PASSED, APPROVED, AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF BELLFLOWER ON THIS grH DAY OF MAY 2022.

Ray~tib.tt:

ATTEST:

Amended AP&P No. 3

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ADMINISTRATIVE POLICIES AND PROCEDURES
APP NO.: 3 (Revise d 4/28/2022)

WHEN THE GROSS RECEIPTS TAX ON CANNABIS DISPENSARIES APPLIES TO

PERSONS ENGAGED IN THE BUSINESS OF SELLING CANNABIS PRODUCTS

DERIVED FROM INDUSTRIAL HEMP
I. Purpose and Applicability
Every person who is engaged in business as a dispensary in the City of Bellflower must pay an annual commercial cannabis tax based on a percentage of gross receipts per fiscal year .1 For purposes of Title 3, Chapter 3.37 (the 11 Cannabis Tax Ordinance"), 11 dispensary" is defined as "a facility where cannabis, cannabis products , or devices for the use of cannabis or cannabis products are offered, either individually or in any combination, for retail sale , including an establishment that delivers cannabis and cannabis products as part of a retail sale."2 For purposes of the Cannabis Tax Ordinance , "cannabis " is defined as:
"[A]II parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis , whether growing or not; the seeds thereof; the resin, whether crude or purified , extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds , or resin. "Cannabis " also means the separated resin, whether crude or purified, obtained from cannabis . ucannabis" also means marijuana as defined by Health and Safety Code Section 11018 and is not limited to medical cannabis ."3
By contrast , for purposes of Title 14 (Cannabis-Related Businesses) "cannabis" is defined as set forth in Business & Professions Code section 26001 (f). That section provides :
'"Cannabis ' means all parts of the plant Cannabis sativa Linnaeus, Cannabis indic a , or Cannab is ruderalis, whether growing or not; the seeds thereof; the res in, whether crude or purified , extracted from any part of the plant; and every compound , manufacture, salt, deriv ative , mixture, or preparation of the plant, its seeds, or resin. 'Cannabis ' also means the separated resin , whether crude or purified , obtained from cannabis . 'Cannabis ' does not include the mature stalks of the plant, fiber produced from the stalks , oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative , mixture , or preparation of the mature stalks (except the resin extracted therefrom), fiber , oil 1 or cake, or the sterilized seed of the plant which is incapable of germination . For the purpose of this division , 'cannabis ' 1 BMC§ 3.37 .060{0)(1).
2 BMC § 3.37.020 .
3 BMC§ 3.37.020 .

Page 1 of 3 ends

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ADMINISTRATIVE POLICIES AND PROCEDURES
APP NO.: 3 (R evised 4 /2 8/202 2)
does not mean 'industrial hemp' as defined by Section 11018 .5 of the Health and Safety Code."
The definition of "cannabis " in the Cannabis Tax Ordinance is broader insofar as it does not exclude "industrial hemp ." Accordingly , references to ucannabis" and "cannabis products " in the Cannabis Tax Ordinance necessarily inc lude industrial hemp and industrial hemp-derived products.

Health and Safety Code section 11018 .5 defines "industrial hemp " as "a crop that is limited to types of the plant Cannabis sativa L. having no more than three-tenths of 1 percent tetrahydrocannabinol (THC ) contained in the dried flowering tops , whether growing or not; the seeds of the plant ; the resin extracted from any part of the plant ; and every compound , manufacture , salt, derivative , mixture, or preparation of the plant , its seeds or resin produced therefrom ."
In the Agriculture Improvement Act of 2018 (the "Farm Bill1'), effective January 1, 2019 , Congress removed industrial hemp-derived products from Schedule I status under the Controlled Substances Act, provided that the hemp is produced in a manner consistent with the Farm Bill , federal regulations , state regulations , and by a licensed grower .

Division 24 of the California Food and Agriculture Code provides for the cultivat ion of industrial hemp by registered growers and established agricultural research institutions .

Industrial hemp-derived products have soared in popular ity recently , part icula rly cannib idiol (CBO) oil and products infused with CBD oil. An increasing number of retail establishments are incorporating these industrial-hemp derived goods into their product mix and some retail establishments are choosing to specialize in the sale of industrial hemp-derived products , making them the focus of their business model.

This policy addresses the question of when a retail establishment selling cannab is products derived from industrial hemp becomes a "dispensary" for purposes of the Cannabis Tax Ordinance and , therefore , subject to the applicable gross receipts tax .

This policy does not apply to any person or retail establ ishment engaged in the business of selling cannabis or cannabis products that are not derived from industrial hemp .

II. Definitions
Unless the contrary is stated or clearly appears from the context , the words and phrases used herein have the meaning set forth in BMC Chapter 3.37 .

Page 2 of 3 ends

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ADMINISTRATIVE POLICIES AND PROCEDURES
APP NO.: 3 (Revised 4/28/2022)
Ill. Admin istra tion
For purposes of the Cannabis Tax Ordinance, a retail establishment is a 11 dispensary" for purposes of BMC § 3.37 .060(0)(1 )4, and therefore subject to the applicable gross receipts tax, if more than 50% of the establishment's overall gross receip,ts 5 are attributable to the sale of cannabis products derived from industrial hemp.

Reference :

Authority:

BMC § 3.37 .060tD)(1 t
BMC§ 3.37 .1 20 /
//
APPROVED: / V/ ___________ __,,..........,, ___ _
City Manager
,,,
Origination : 7/25/2019
Revised: 4/28/2022
4 This does not mean the establishment would necessarily be classified as a "dispensary" for purposes of Title 14 and, therefore, require a Cannabis Business Permit to operate lawfully . Because "indu stria l hemp" is not within the definition of "cannabis " as used in Title 14 , a cannabis business permit is not required for the sale of cannab is products derived from indu strial hemp . 5 In this context, "o verall gross receipts" means the total gross receipts of the retail establishment.

Page 3 of 3 ends

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STATE OF CALIFORNIA )

COUNTY OF LOS ANGELES )SS

CITY OF BELLFLOWER )
I, Mayra Ochiqui, City Clerk of the City of Bellflower, California, do hereby certify under penalty of perjury that the foregoing Resolution No. 22-18 was duly passed, approved, and adopted by the City Council of the City of Bellflower at the Regular Meeting of the City Council on May 9, 2022, by the following vote to wit:

AYES: Council Members -Sanchez, Santa Ines, Hamada, Koops and Mayor Dunton
Dated: May 10 2022
• '
(SEAL)

Page 1 of 3 ends

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

ATTENTION: Ryan Smoot, City Manager

FROM: Brian McNerney, Director of Public Safety

SUBJECT: Consideration and possible action to authorize the City Manager to execute Agreement File No. 572.3, in a form approved by the City Attorney, with Kingdom Causes Bellflower to provide coordinated homeless outreach, case management, and community mobilization services to assist those experiencing homelessness, and approve a budget amendment to fund services for FY 26/27.

DATE: May 11, 2026

EXECUTIVE SUMMARY

The City of Bellflower has made major investments to address homelessness, including the New Hope Temporary Shelter and the Bellflower Enforcement and Safety Team (BEAST). While the BEAST team has been effective in enforcement, the City has identified a need for expanded outreach, case management, and long-term housing solutions. Kingdom Causes Bellflower, a trusted community partner, has demonstrated success in providing resources and support to at-risk residents.

RECOMMENDATION TO CITY COUNCIL

1) Authorize the City Manager to execute Agreement File No. 572.3, in a form approved by the City Attorney; and

2) Approve a budget amendment to carry forward an estimated $24,000 in anticipated unspent funds from the Drug Education Fund Rapid Rehousing and Homeless Prevention Account 037-44802-2510 from FY 2025-26 to FY 2026-27, and transfer $53,500 from the unfilled Sheriff Motor Deputy position 010-42173-2200 to the Rapid Rehousing and Homeless Prevention – Public Safety Support Services Account 010- 44802-2230; or

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

FISCAL IMPACT

The proposed three-year agreement is not to exceed $380,000. Although Kingdom Causes has proposed a total contract cost of $360,012, additional contingency funding is included to address any unforeseen costs over the term of the agreement.

1 Staff Report – Kingdom Causes Bellflower – Agreement File No. 572.3 May 11, 2026

Page 2 of 3 ends

FISCAL IMPACT – Continued

An existing budget of $32,500 per year for Rapid Rehousing and Homeless Prevention is allocated in FY 2025-26 and FY 2026-27 within the Drug Education Rehabilitation Fund.

The recommendation includes carrying forward available FY 2025-26 funds, utilizing the full budgeted amount for FY 2026-27, and reallocating $53,500 in unspent General Fund budget from the unfilled Sheriff Motor Deputy position from FY 2025-26 to support first-year costs. Funding for FY 2027-28 and FY 2028-29 will be requested through the standard budget process.

DISCUSSION

In December 2024 leading into the City Council’s Strategic Planning sessions, the City conducted a Community Satisfaction Survey (“Survey”) and homelessness was ranked as the top concern facing Bellflower; 87% of respondents reported homelessness as being a very serious or somewhat serious problem. In early 2025, the City Council adopted the 2025-27 Strategic Plan (“Plan”) setting goals, vision, and priorities for addressing community concerns and carrying Bellflower forward. Goals in the Plan included increasing the City’s efforts to keep the City’s public areas safe and clean and to address and respond to homelessness, as well as increased efforts to partner and better coordinate with community resources, service providers and other community groups.

Based on the Strategic plan, the City Council authorized the continuation of the City’s 50 bed temporary shelter – New Hope - and authorized the creation of the Bellflower Enforcement and Safety (BEAST) team. The BEAST team was specifically designed to better enforce safety and cleanliness regulations and to improve the visual appeal of the community. As part of its creation, the City also made plans to address the City Councils vision to improve coordination among community groups, and to better connect residents in need to the services available to them, including New Hope Shelter. In its first five months of operation the BEAST team has successfully reduced the number of ongoing encampments in the City, but open beds are still available at New Hope, and there are still individuals remaining on the City’s streets.

The proposed agreement has been structured to bolster the work of the BEAST team and fill in the remaining portions of the City’s efforts to address homelessness in the community. Kingdom Causes has substantial knowledge of outreach providers and existing connections with those experiencing homelessness in Bellflower and the surrounding areas. They also have extensive experience working with other LA County agencies. The agreement provides for three distinct services as follows:

Outreach and Case Management
 Conduct street outreach in coordination with the BEAST team.  Provide on-going case management, accessing housing opportunities, navigating the Los Angeles County homeless system to match participants with housing needs, income stability, and connecting individuals to behavioral health, supportive services, and job placement.
2 Staff Report – Kingdom Causes Bellflower – Agreement File No. 572.3 May 11, 2026

Page 3 of 3 ends

DISCUSSION – Continued

 Support intake and coordination with New Hope Temporary Shelter and Mercy House to connect clients with housing solutions at the shelter and beyond.

Bellflower Homeless Task Force
 Organize and facilitate monthly task force meetings bringing local community and County stakeholders together to streamline services, reduce duplication of services, promote collaborative problem solving, and improve outcomes for clients and for the community as a whole.
 Assist Mercy House by connecting them with County partners to better facilitate the movement of New Hope Temporary Shelter guests from a temporary shelter setting to permanent housing.

Community Mobilization and Coordination
 Mobilize and train community partners, including civic groups, businesses, and churches, to participate in meaningful and coordinated solutions.  Align resources and efforts, promoting best practices that support long-term pathways out of homelessness.
 Provide training and guidance to community members focused on ways to be helpful in addressing homelessness.

The proposed partnership with Kingdom Causes represents a strategic enhancement to the City’s public safety and homelessness framework and supports the goals outlined by the City Council in the Strategic Plan. By complementing the enforcement strengths of the BEAST team with specialized and focused outreach and case management services, the City will be better positioned to address chronic homelessness in a comprehensive and effective manner.

Attachment:

Kingdom Causes Bellflower Proposal ............................................................................. 4 3 City of Bellflower & KCB
Homeless Services Proposal

Kingdom Causes Bellflower (KCB) proposes to partner with the City of Bellflower as part of its current homelessness strategies. KCB will provide coordinated street outreach and engage individuals experiencing homelessness through relationship-based case management and resource connections, with the goal of exiting them from the streets. Building on the current eAorts of all parties involved in reducing homelessness, KCB will coordinate and collaborate with existing providers to increase eAiciency in our shared goal of reducing homelessness in the City of Bellflower.

SERVICES PROPOSED

1) Outreach & Case Management
(In coordination with the City of Bellflower BEAST Team)

• KCB will conduct consistent, relationship-based street outreach in coordination with the City’s BEAST Team.
• StaA will provide ongoing case management, supporting individuals in accessing housing opportunities, increasing income stability, and connecting to behavioral health and supportive services.
• KCB will leverage strong partnerships with local providers to ensure comprehensive and eAective care.
• KCB will actively support intake and coordination with New Hope Shelter and Mercy House to connect clients with available resources and permanent housing pathways.

Time Commitment:
40 hours/week (2 staA; 4 hours/day each)

2) Homeless Task Force Meetings

• KCB will organize and facilitate monthly Homeless Task Force meetings to support proactive, coordinated citywide eAorts.

Goals include:
• Bringing together key stakeholders (City staA, law/code enforcement, government agencies, CBOs, FBOs, and nonprofits)
• Aligning eAorts to reduce duplication of services
• Facilitating information sharing and collaborative problem-solving • Strengthening relationships across partners to improve outcomes

Time Commitment:
2 hours/week
)
--KINGDOMCAUSES ■-■ B E L L F L O W E R

3) Community Mobilization and Coordination

• KCB will engage and mobilize community partners—including churches, civic groups, businesses, and advocacy organizations—to participate in meaningful, coordinated solutions. • Efforts will focus on aligning resources, reducing duplication, and promoting best practices that support long-term pathways out of homelessness.
• KCB will provide training and guidance to help community members serve in ways that are helpful and not harmful.

Time Commitment:
8 hours/week (with potential to expand based on community engagement)

LENGTH OF CONTRACT
Thirty-six (36) months, beginning June 2026

COST BREAKDOWN
Monthly/Year 1 Monthly/Year 2 Monthly/Year 3
Outreach & Case
Management $6,310 $7,592 $8,858
Homeless Task
Force Meetings $741 $869 $1,014
Community
Mobilization &
Coordination
$1,282 $1,539 $1,796
3-Year
Monthly TOTAL $8,333 $10,000 Contract Total
Yearly TOTAL $120,000 $360,000

This cost is all-inclusive, covering staA salaries, transportation, benefits, payroll taxes, administration, indirect costs, and all program-related expenses.

Why Kingdom Causes Bellflower (KCB)
Kingdom Causes Bellflower is deeply rooted in the local community, with a 25-year proven track record of building trust with neighbors experiencing homelessness while partnering eIectively with nonprofit organizations, public agencies and the community. Our relational, consistent approach to outreach and case management allows us to engage individuals over time and help them move toward stability. At the same time, KCB brings a unique ability to mobilize and align community partners, reducing duplication and strengthening coordination across the city. We don’t replace existing eIorts—we connect and strengthen them, helping create a more unified and eIective response to homelessness in Bellflower. $11,668
$99,996 $140,016
p

Page 1 of 2 ends

14-B
TO:Honorable Mayor and Members of the City Council
FROM:Ryan Smoot, City Manager
Len Gorecki, Assistant City Manager/Director of Public Works SUBJECT: Consideration and possible action to select and approve a design concept for pedestrian improvements on Coke Avenue between Artesia Boulevard and the south City Limit.

DATE:May 11, 2026

EXECUTIVE SUMMARY
Receive input from the City Council on two separate design concepts related to pedestrian improvements on Coke Avenue between Artesia Boulevard and the south City Limit following communications with Los Angeles Department of Water and Power (LADWP) regarding the use of LADWP property for the purpose of constructing a portion of the Coke Avenue sidewalk.

RECOMMENDATION TO CITY COUNCIL
1) Approve one of the two design options presented for installation of sidewalk on Coke Avenue between Artesia Boulevard and the south City Limit; or 2) Alternatively, discuss and take other action related to this item.

FISCAL IMPACT
The total cost of construction, including design and inspection, is preliminarily estimated at $900,000, however a final estimate will not be available until the construction plans are finalized. Currently, $550,000 is available in Account No. 011-51611-9000 (Pedestrian ROW Improvements) for fiscal years 2025-26 and 2026-27, and $1,360,000 per each fiscal year for the next two years is available in Account No. 145-51603-9000 (Annual Local Street Resurfacing Project).

DISCUSSION
At the January 26, 2026, City Council meeting, Public Works staff presented two design options to City Council for pedestrian improvements on Coke Avenue. At the time, City Council directed staff to consult with Los Angeles Department of Water and Power (LADWP) about the feasibility of obtaining an easement on LADWP property on the west side of the street. This easement would provide the necessary room to construct a portion of the proposed sidewalk on LADWP property that would allow for Design Option 1 without reducing the existing travel lanes’ widths for north/south traffic. -1-
stafJeport

Staff Report – Coke Avenue Pedestrian Improvements Concepts May 11, 2026

Page 2 of 2 ends

DISCUSSION – Continued
On April 21, 2026, City staff and representatives from Willdan Engineering spoke with members of the LADWP Real Estate Division about the proposed project. LADWP staff pointed out two significant issues. First, their design criteria does not allow for construction within 50 feet of LADWP transmission towers and the proposed sidewalk project would not meet this requirement. Second, LADWP staff informed us that the timeline for approval of such a request would take anywhere from 30 to 36 months (2½ to 3 years) from the time plans are submitted. Given the LADWP construction requirement and estimated timeline, it does not appear that an easement can be obtained for a portion of their property in a timely manner.

Based on the information from LADWP, Public Works staff recommends that the two original design options presented in January be discussed with the intent of selecting one of the options in order to initiate design of the project.

Design Option 1
This option is consistent with the existing conditions on Coke Avenue where vehicles travel in both directions (north/south) and there is on-street parking on both sides of the roadway. By incorporating a five (5) foot wide sidewalk on the west side, the drive aisle will be reduced from 20 feet down to 17 feet. While this will create a narrower drive aisle, it would be similar to the drive aisle widths that exist on Cedar, Ramona and Rose streets. Finally, it is unlikely that pedestrian bulb-outs can be constructed under the two-way traffic scenario at each intersection as the aisle width will not be wide enough.

Design Option 2
The second design option would be to convert the existing two-way traffic flow into a single direction (one-way) traffic operation. As proposed in this option, vehicles would enter Coke Avenue from Artesia Boulevard and travel in the southbound direction only to Rose Street. South of Rose Street, Coke Avenue would convert back to normal two-way traffic flow. On-street parking will continue to be available on both sides of Coke Avenue and pedestrian bulb-outs at each intersection could be installed.

Coke Avenue Pavement Condition Index (PCI)
Every 5 years, all City roadways are evaluated to determine their current pavement condition (PCI). In 2024, the PCI rating for this segment of Coke Avenue was 49 out of 100. The city-wide PCI average for this type of street is 83. A street with a PCI rating between 20 and 60 is recommended to have an overlay done. As part of this project, staff recommends that the design include an overlay component of Coke Avenue as opposed to the application of a slurry seal.

Following comments received from City Council, Public Works staff will work with Willdan Engineering to complete the PS&E documents and prepare the project for bidding.
-2-

15-A

TO: Honorable Mayor and Members of the City Council

ATTENTION: Ryan Smoot, City Manager

FROM: Anna Garan, Director of Finance

SUBJECT: Consideration and possible action to receive and file Warrant Register No. 26-111, dated May 11, 2026.

DATE: May 11, 2026

EXECUTIVE SUMMARY

BMC § 2.12.030.B stipulates that the Director of Finance is responsible for the preparation of warrant registers for the City Manager and City Council. In addition, 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. 26-111; or

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

FISCAL IMPACT

$4,564,850.71 in expenditures.

ATTACHMENT

Warrant Register No. 26-111 .......................................................................................... 2

c'~ or BELLPLo¾,, st a f le p Ort

Fund No.CITY OF BELLFLOWER:
010 General Fund 2,875,294.73$
011 General Fund Projects 38,963.64
012 Public Projects Fund 812,499.03
037 Drug Education/Rehabilitation Fund 129.25
040 PEG Fund 1,246.99
050 Supplemental Law Enforcement Services Fund (State)1,186.64 090 Agency Fund/Refundable Deposits - Private Projects 116,257.23 100 Proposition A Fund - Transportation 23,855.94
125 Measure R Fund - Transportation / Streets 2,720.55
135 Proposition C Fund - Transportation / Streets 51,413.52 145 Road Maintanence and Rehabilitation Account (RMRA) Fund 129,264.60 320 Measure W Fund - Water 6,262.46
510 Economic Development Fund 10,720.00
530 IT/Equipment Replacement Fund 12,227.51
540 GIS Update Fund 448.44
542 General Plan/Zoning Ordinance Update Fund 1,345.35
600 Building and Safety Fund 126,161.86
602 Accessibility Compliance Fund 4.00
900 Community Development Block Grant Fund 113.88
910 HOME Fund 900.00
944 Parking District No. 1 Fund 256.43
Total Accounts Payable 4,211,272.05
Payroll Check/ACH Payments
(Pay Period Ending 4/17/26, 4/23/26 & 5/1/26)353,578.66 Total Expenditures - City 4,564,850.71$

WARRANT REGISTER FUND SUMMARY

CITY OF BELLFLOWER
(Warrant Register No. 26-111 Dated May 11, 2026)
https://bellflowergcc.sharepoint.com/sites/fin/Shared Documents/Warrant Registers/Warrant Register Cover Page Template

REPORT.: 05/05/26 City of Bellflower PAGE: 001 RUN....: 05/05/26 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Eligio Marquez CTL.: BEL

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VENDOR.: ADA06 (ADAMSON POLICE PRODUCTS)

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VENDOR.: ADM01 (ADMIRAL PEST CONTROL, INC)

53.00 010 46022 3900 03/26 PEST CONTROL SERVICES 199.00 010 46013 3900 03/26 PEST CONTROL SERVICES 135.00 010 46031 3900 03/26 PEST CONTROL SERVICES 500.00 010 46000 8010 TSS 03/26 PEST CONTROL SERVICES 490.00 010 46028 3900 03/26 PEST CONTROL SERVICES 224.00 010 46025 3900 03/26 PEST CONTROL SERVICES 224.00 010 46030 3900 03/26 PEST CONTROL SERVICES 1985.00 010 46010 3900 03/26 PEST CONTROL SERVICES/RODENT ------------
Vendor's Total = 5350.00
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VENDOR.: ALA05 (ALAN'S LAWN AND GARDEN CENTER, INC.)

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VENDOR.: ATL03 (ATLAS BACKFLOW INC)

REPORT.: 05/05/26 City of Bellflower PAGE: 002
RUN....: 05/05/26 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Eligio Marquez CTL.: BEL
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VENDOR.: ATL03 (ATLAS BACKFLOW INC) ..Continue..
---- WARRANT -------------------------------------------- DISTRIBUTION --------------------------------------- Invoice No Number Date Amount Paid G/L Account No Ctr Description ------------------------------------ ------------------------------------------------------------------- XXXXXX 04/22/26 70.00 100 46000 3560 BACKFLOW TESTING (QTY 1) AFN 947.2 ------------
Vendor's Total = 280.00
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VENDOR.: BEL02 (BELLFLOWER-SOMERSET MUTUAL WATER COMPANY) ---- WARRANT -------------------------------------------- DISTRIBUTION --------------------------------------- Invoice No Number Date Amount Paid G/L Account No Ctr Description ------------------------------------ ------------------------------------------------------------------- B260422 XXXXXX 04/30/26 126.89 010 43212 2000 12/16/25-02/12/26 WATER ------------
Vendor's Total = 126.89
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VENDOR.: BEL03 (BELLFLOWER CHAMBER OF COMMERCE)
---- WARRANT -------------------------------------------- DISTRIBUTION --------------------------------------- Invoice No Number Date Amount Paid G/L Account No Ctr Description ------------------------------------ ------------------------------------------------------------------- 2542 XXXXXX 04/30/26 220.00 510 44410 4002 BLFR.NEW BUSINESS WELCOME PROG/CHAP.6 (QTY 1) ------------
Vendor's Total = 220.00
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VENDOR.: BIR02 (CHRISTINA JOY PADILLA BIRKEY)
---- WARRANT -------------------------------------------- DISTRIBUTION --------------------------------------- Invoice No Number Date Amount Paid G/L Account No Ctr ------------------------------------ ----------------- B260408 XXXXXX 04/30/26 105.32 010 41100 1030
Description
--------------------------------------------------
MILEAGE,PARKING/3/11-12/26 PLANNING COMM.ACADEMY
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Vendor's Total = 105.32
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VENDOR.: BLU01 (BLUE DIAMOND MATERIALS)
---- WARRANT -------------------------------------------- DISTRIBUTION --------------------------------------- Invoice No Number Date Amount Paid G/L Account No Ctr Description ------------------------------------ ------------------------------------------------------------------- 4502405 XXXXXX 04/30/26 774.47 010 43160 3100 ASPHALT
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Vendor's Total = 774.47
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REPORT.: 05/05/26 City of Bellflower PAGE: 003 RUN....: 05/05/26 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Eligio Marquez CTL.: BEL

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VENDOR.: BUR01 (BURKE,WILLIAMS & SORENSEN, LLP)

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VENDOR.: BYM01 (GERRIT J. BYMA)

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VENDOR.: CAL17 (CAL-CITY CONSTRUCTION, INC.)

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VENDOR.: CAP11 (CAPITAL ONE PUBLIC FUNDING)

REPORT.: 05/05/26 City of Bellflower PAGE: 004 RUN....: 05/05/26 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Eligio Marquez CTL.: BEL

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VENDOR.: CIT28 (CITY OF BELL)

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VENDOR.: CPR03 (CPRS )

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VENDOR.: CRA05 (MICHELE L. CRAVENS-WORLEY)

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VENDOR.: DOD06 (DODGE CONSTRUCTION NETWORK LLC)

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VENDOR.: EEC01 (EECO DIGITAL)

REPORT.: 05/05/26 City of Bellflower PAGE: 005
RUN....: 05/05/26 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Eligio Marquez CTL.: BEL
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VENDOR.: EMP01 (EMPLOYMENT DEVELOPMENT DEPARTMENT)
---- WARRANT -------------------------------------------- DISTRIBUTION --------------------------------------- Invoice No Number Date Amount Paid G/L Account No Ctr ------------------------------------ ----------------- B260430H XXXXXX 04/30/26 4050.00 010 43519 8000
Description
--------------------------------------------------
01/26-03/26 UNEMPLOYMENT CLAIMS
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Vendor's Total = 4050.00
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VENDOR.: EMP05 (EMPLOYMENT DEVELOPMENT DEPARTMENT)
---- WARRANT -------------------------------------------- DISTRIBUTION --------------------------------------- Invoice No Number Date Amount Paid G/L Account No Ctr Description ------------------------------------ ------------------------------------------------------------------- 8954172H XXXXXX 04/23/26 16270.01 010 23080 PIT - PPE 4/17/26 PD 4/23/26 8956122H XXXXXX 04/24/26 9.40 010 23080 PIT - FINAL
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Vendor's Total = 16279.41
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VENDOR.: GLA01 (GLASBY MAINTENANCE SUPPLY)
---- WARRANT -------------------------------------------- DISTRIBUTION --------------------------------------- Invoice No Number Date Amount Paid G/L Account No Ctr Description ------------------------------------ ------------------------------------------------------------------- 359228B XXXXXX 04/22/26 101.66 010 46010 3900 JANITORIAL SUPPLIES 359480A XXXXXX 04/22/26 972.42 010 46012 3900 JANITORIAL SUPPLIES 359530B XXXXXX 04/22/26 70.17 010 46011 3900 CLEANING SUPPLIES 359566A XXXXXX 04/22/26 726.47 010 46010 3900 CLEANING SUPPLIES 726.47 010 46000 8000 CLEANING SUPPLIES
726.47 010 46000 2000 CLEANING SUPPLIES
359603A XXXXXX 04/22/26 402.11 010 46030 3900 JANITORIAL SUPPLIES 359765A XXXXXX 04/22/26 448.70 010 46010 3900 CLEANING SUPPLIES

80.00 010 46020 3900 CLEANING SUPPLIES
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Vendor's Total = 4254.47
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VENDOR.: GOL01 (GOLDEN WEST PIPE & SUPPLY)
---- WARRANT -------------------------------------------- DISTRIBUTION --------------------------------------- Invoice No Number Date Amount Paid G/L Account No Ctr Description ------------------------------------ ------------------------------------------------------------------- 630404 XXXXXX 04/22/26 21.67 010 46000 8010 PLUMBING SUPPLIES ------------
Vendor's Total = 21.67
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REPORT.: 05/05/26 City of Bellflower PAGE: 006 RUN....: 05/05/26 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Eligio Marquez CTL.: BEL

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VENDOR.: GOL12 (GOLDEN STAR TECHNOLOGY INC. (GST))

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VENDOR.: GRA06 (GRAINGER, INC.)

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VENDOR.: HAA01 (MITCHEL L. HAACK)

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VENDOR.: HAR08 (HARTZOG & CRABILL, INC)

REPORT.: 05/05/26 City of Bellflower PAGE: 007 RUN....: 05/05/26 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Eligio Marquez CTL.: BEL

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VENDOR.: HAS03 (HASA INC)

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VENDOR.: HEL00 (HELP YOUTHS THROUGH GOLF)

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VENDOR.: HOM01 (HOME DEPOT)

95.91 010 46000 5015 03/26 PUBLIC WORKS SUPPLIES/HOME DEPOT

1.93 010 46000 8000 03/26 PUBLIC WORKS SUPPLIES/HOME DEPOT 109.25 010 46000 8010 03/26 PUBLIC WORKS SUPPLIES/HOME DEPOT 875.32 010 46010 3900 03/26 PUBLIC WORKS SUPPLIES/HOME DEPOT 1222.41 010 46011 3900 03/26 PUBLIC WORKS SUPPLIES/HOME DEPOT 421.41 010 46012 3900 03/26 PUBLIC WORKS SUPPLIES/HOME DEPOT 125.16 010 46013 3900 03/26 PUBLIC WORKS SUPPLIES/HOME DEPOT 113.63 010 46029 3900 03/26 PUBLIC WORKS SUPPLIES/HOME DEPOT 2064.82 011 53604 9000 03/26 PUBLIC WORKS SUPPLIES/HOME DEPOT 100.25 100 46000 3560 03/26 PUBLIC WORKS SUPPLIES/HOME DEPOT 425.55 125 46000 3910 03/26 PUBLIC WORKS SUPPLIES/HOME DEPOT -75.32 010 43100 3900 03/26 PW SUPPLIES/HOME DEPOT/EARLY PAY DISCOUNT ------------
Vendor's Total = 8235.01
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REPORT.: 05/05/26 City of Bellflower PAGE: 008 RUN....: 05/05/26 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Eligio Marquez CTL.: BEL

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VENDOR.: IRS02 (INTERNAL REVENUE SERVICE)

13.96 010 23170 941:EMPLYRS QRTRLY MEDICARE TAX

31.33 010 23070 941:EMPLYRS QRTRLY FEDERAL TAX ------------
Vendor's Total = 117471.69
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VENDOR.: JHM01 (JHM SUPPLY, INC.)

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VENDOR.: KAI03 (KAISER FOUNDATION HEALTH PLAN, INC.)

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VENDOR.: KAI05 (KP FINANCIAL SVCS OPS)

REPORT.: 05/05/26 City of Bellflower PAGE: 009 RUN....: 05/05/26 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Eligio Marquez CTL.: BEL

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VENDOR.: KIE03 (KIEFER AQUATICS)

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VENDOR.: KIN07 (KINGDOM CAUSES)

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VENDOR.: KTU01 (KTU+A )

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VENDOR.: LAK03 (CITY OF LAKEWOOD)

REPORT.: 05/05/26 City of Bellflower PAGE: 010 RUN....: 05/05/26 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Eligio Marquez CTL.: BEL

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VENDOR.: LAK03 (CITY OF LAKEWOOD) ..Continue..

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

---- WARRANT ----- --------------------------------------- DISTRIBUTION --------------------------------------- Invoice No Number Date Amount Paid G/L Account No Ctr Description ---------- ------ -------- ------------ -------------- --- -------------------------------------------------- 261997AY XXXXXX 04/23/26 20538.12 010 42164 2200 12/2-31/25 OT LAW ENFORCEMENT/CRIME SUPPRESSION 261998AY XXXXXX 04/23/26 2605.44 010 42164 2200 12/1-22/25 OT LAW ENFORCEMENT/CRIME SUPPRESSION 261999AY XXXXXX 04/23/26 8553.03 010 42161 2200 12/2-27/25 OT LAW ENFORCEMENT/TRAFFIC ENFORCEMENT 262070AY XXXXXX 04/23/26 145852.10 010 42130 2200 02/26 SPECIAL ASSIGNMENT OFFICERS (X5) 96262.26 010 42153 2200 02/26 GENERAL LAW CARS (40-HOUR) (X3) 32087.42 010 42155 2200 02/26 TRAFFIC LAW CAR (40-HOUR) (X1) 476626.88 010 42152 2200 02/26 GENERAL LAW CARS (56-HOUR)X10.61 134767.26 010 42154 2200 02/26 TRAFFIC LAW CARS (56-HOUR) (X3) 44922.42 135 42117 3600 02/26 TRANSIT OFFICER (56-HR) TRAFFIC(X1) 26490.00 010 42150 2200 02/26 SPECIAL ASSIGNMENT SERGEANT (X1)* 40304.66 010 42165 2200 02/26 NO RELIEF GRANT CARS (40-HR) (X2) 1186.64 050 47300 2150 02/26 MDC DATA & MAINTENANCE ONLY (X8) 262199AY XXXXXX 04/23/26 16527.29 010 42161 2200 01/2-31/26 OT LAW ENFORCEMENT/TRAFFIC ENFORCEMENT 262200AY XXXXXX 04/23/26 2605.44 010 42164 2200 01/1-27/26 OT LAW ENFORCEMENT/CRIME SUPPRESSION 262201AY XXXXXX 04/23/26 15992.65 010 42164 2200 02/5-27/26 OT LAW ENFORCEMENT/CRIME SUPPRESSION 262202AY XXXXXX 04/23/26 3405.92 010 42164 2200 02/2-23/26 OT LAW ENFORCEMENT/CRIME SUPPRESSION 262203AY XXXXXX 04/23/26 12242.67 010 42161 2200 02/3-28/26 OT LAW ENFORCEMENT/TRAFFIC ENFORCEMENT 262204AY XXXXXX 04/23/26 17933.44 010 42164 2200 01/2-30/26 OT LAW ENFORCEMENT/CRIME SUPPRESSION 262363AY XXXXXX 04/23/26 1961.52 010 42182 2200 01/26 LASD HELICOPTER SUPPORT ------------
Vendor's Total = 1100865.16
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VENDOR.: LOS02 (LOS ANGELES COUNTY/DEPT.OF PUBLIC WORKS)

REPORT.: 05/05/26 City of Bellflower PAGE: 011 RUN....: 05/05/26 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Eligio Marquez CTL.: BEL

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VENDOR.: LOS03 (LOS ANGELES COUNTY/DEPT.OF PUBLIC WORKS)

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

---- WARRANT ----- --------------------------------------- DISTRIBUTION --------------------------------------- Invoice No Number Date Amount Paid G/L Account No Ctr Description ---------- ------ -------- ------------ -------------- --- -------------------------------------------------- 261997AY XXXXXX 04/23/26 2669.96 010 42164 2200 12/2-31/25 LIAB.INS/OT LAW ENF/CRIME SUPPRESSION 261998AY XXXXXX 04/23/26 338.71 010 42164 2200 12/1-22/25 LIAB.INS/OT LAW ENF/CRIME SUPPRESSION 261999AY XXXXXX 04/23/26 1111.89 010 42161 2200 12/2-27/25 LIAB.INS/OT LAW ENF/TRAFFIC ENFORCEMENT 262070AY XXXXXX 04/23/26 18960.77 010 42130 2200 02/26 LIAB.INS/SPECIAL ASSIGNMENT OFFICERS (X5) 12514.09 010 42153 2200 02/26 LIAB.INS/GENERAL LAW CARS (40-HOUR) (X3) 4171.37 010 42155 2200 02/26 LIAB.INS/TRAFFIC LAW CAR (40-HOUR) (X1) 61961.49 010 42152 2200 02/26 LIAB.INS/GENERAL LAW CARS (56-HOUR)X10.61 17519.74 010 42154 2200 02/26 LIAB.INS/TRAFFIC LAW CARS (56-HOUR) (X3) 5839.92 135 42117 3600 02/26 LIAB.INS/TRANSIT OFFICER (56-HR) TRAFFIC(X1) 5239.61 010 42165 2200 02/26 LIAB.INS/NO RELIEF GRANT CARS (40-HR) (X2) 262199AY XXXXXX 04/23/26 2148.54 010 42161 2200 01/2-31/26 LIAB.INS/OT LAW ENF/TRAFFIC ENFORCEMENT 262200AY XXXXXX 04/23/26 338.71 010 42164 2200 01/5-27/26 LIAB.INS/OT LAW ENF/CRIME SUPPRESSION 262201AY XXXXXX 04/23/26 2079.04 010 42164 2200 02/5-27/26 LIAB.INS/OT LAW ENF/CRIME SUPPRESSION 262202AY XXXXXX 04/23/26 442.77 010 42164 2200 02/2-23/26 LIAB.INS/OT LAW ENF/CRIME SUPPRESSION 262203AY XXXXXX 04/23/26 1591.55 010 42161 2200 02/3-28/26 LIAB.INS/OT LAW ENF/TRAFFIC ENFORCEMENT 262204AY XXXXXX 04/23/26 2331.34 010 42164 2200 01/2-30/26 LIAB.INS/OT LAW ENF/CRIME SUPPRESSION 262363AY XXXXXX 04/23/26 255.00 010 42182 2200 01/26 LIABILITY INSURANCE/LASD HELICOPTER SUPPORT ------------
Vendor's Total = 139514.50
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VENDOR.: LOS50 (LOS CERRITOS COMMUNITY NEWS)

REPORT.: 05/05/26 City of Bellflower PAGE: 012 RUN....: 05/05/26 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Eligio Marquez CTL.: BEL

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VENDOR.: MIC11 (MICHAEL BAKER INTERNATIONAL, INC.)

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VENDOR.: MIT04 (MITY LITE, INC.)

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VENDOR.: MIY01 (MIYAMOTO INTERNATIONAL INC.)

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VENDOR.: MOT05 (MARIAH MARIE MOTT)

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VENDOR.: NCA01 (NCA STUDIO INC)

REPORT.: 05/05/26 City of Bellflower PAGE: 013 RUN....: 05/05/26 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Eligio Marquez CTL.: BEL

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VENDOR.: NCA01 (NCA STUDIO INC) ..Continue..

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Vendor's Total = 0.00
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VENDOR.: NOR16 (BARBARA NORBUT)

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VENDOR.: NOR18 (NORWALK LA MIRADA PLUMBING HEATING)

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VENDOR.: ONE02 (O'NEIL VENTURES, INC.)

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VENDOR.: PAR00 (SOPHIA PARTIDA)

REPORT.: 05/05/26 City of Bellflower PAGE: 014
RUN....: 05/05/26 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Eligio Marquez CTL.: BEL
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VENDOR.: PAR01 (LIBERTY UTILITIES/PARK WATER COMPANY)
---- WARRANT -------------------------------------------- DISTRIBUTION --------------------------------------- Invoice No Number Date Amount Paid G/L Account No Ctr Description ------------------------------------ ------------------------------------------------------------------- B260422H XXXXXX 04/22/26 4048.72 010 43212 3100 02/25/26-03/24/26 WATER 7213.57 010 43212 3900 02/25/26-03/24/26 WATER
B260423H XXXXXX 04/23/26 281.13 010 43212 3100 02/26/26-03/27/26 WATER 1645.52 010 43212 3900 02/26/26-03/27/26 WATER
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Vendor's Total = 13188.94
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VENDOR.: PERS0 (PUBLIC EMPLOYEES' RETIREMENT SYSTEM)
---- WARRANT -------------------------------------------- DISTRIBUTION --------------------------------------- Invoice No Number Date Amount Paid G/L Account No Ctr ------------------------------------ ----------------- A260421H XXXXXX 04/23/26 67620.66 010 23040

0.02 010 43524 4100
A260427H XXXXXX 04/27/26 772872.00 010 23041
Description
--------------------------------------------------
PERS RETIREMENT PPE 4/17/26 PD 4/23/26

ROUNDING ADJ
FY 26/27 ADP-UNFUNDED ACC LIAB. CLASSIC
------------
Vendor's Total = 840492.68
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VENDOR.: PERS1 (PUBLIC EMPLOYEES' RETIREMENT SYSTEM)
---- WARRANT -------------------------------------------- DISTRIBUTION --------------------------------------- Invoice No Number Date Amount Paid G/L Account No Ctr Description ------------------------------------ ------------------------------------------------------------------- A260401H XXXXXX 04/03/26 121531.64 010 23140 PERS MEDICAL INS - 4/26 60664.99 010 23143 PERS MEDICAL INS RETIREES- 4/26

96.82 010 43513 3900 ADMIN FEES/ACTIVE MEDICAL 4/26
1426.24 010 43513 3100 4/26
-1938.10 010 43513 3900 3-4/26 ADJ
------------
Vendor's Total = 181781.59
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VENDOR.: PIN01 (KARLA PINEDA)
---- WARRANT -------------------------------------------- DISTRIBUTION --------------------------------------- Invoice No Number Date Amount Paid G/L Account No Ctr Description ------------------------------------ ------------------------------------------------------------------- B260430 XXXXXX 04/30/26 2201.81 010 17000 XXX EMPLOYEE COMPUTER LOAN ------------
Vendor's Total = 2201.81
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REPORT.: 05/05/26 City of Bellflower PAGE: 015 RUN....: 05/05/26 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Eligio Marquez CTL.: BEL

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VENDOR.: POR00 (ALYSSA PORRAS/PETTY CASH CUSTODIAN)

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Vendor's Total = 53.98
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VENDOR.: QUA08 (QUADIENT LEASING USA, INC.)

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VENDOR.: RAY01 (RAYVERN LIGHTING SUPPLY COMPANY, INC)

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VENDOR.: RED02 (RED DRAGON ELECTRIC, INC.)

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VENDOR.: RHM01 (RICHARD H. MUNOZ)

REPORT.: 05/05/26 City of Bellflower PAGE: 016 RUN....: 05/05/26 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Eligio Marquez CTL.: BEL

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VENDOR.: RHM01 (RICHARD H. MUNOZ) ..Continue..

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VENDOR.: ROD24 (CENIT GUERRA RODRIGUEZ)

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VENDOR.: ROM02 (MARGARET ROMERO)

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VENDOR.: SAN44 (SONNY R. SANTA INES)

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VENDOR.: SCS02 (S.C. SIGNS & SUPPLIES LLC)

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Vendor's Total = 1376.83
------------

REPORT.: 05/05/26 City of Bellflower PAGE: 017 RUN....: 05/05/26 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Eligio Marquez CTL.: BEL

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VENDOR.: SMA02 (SMART & FINAL)

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VENDOR.: SMI01 (JIMMY L. SMITH)

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VENDOR.: SMI20 (KRISTEN SMITH/PETTY CASH CUSTODIAN)

38.88 037 42550 2510 2/12/26 TEEN PROGRAMMING SUPPLIES

46.34 010 43100 5012 2/13/26 ADAPTIVE RECREACTION REFRESHMENTS

10.96 010 43100 5012 3/16/26 OFFICE SUPPLIES

31.00 010 41100 5000 3/16/26 PARKING/CPRS CONF/LONG BEACH

32.55 010 41100 5000 3/16/26 PARKING/CPRS CONF/LONG BEACH

30.00 010 41100 5000 3/23/26 PARKING/CPRS CONF/LONG BEACH

30.00 010 41100 5000 3/26/26 PARKING/CPRS CONF/LONG BEACH

53.02 010 42015 1350 3/30/26 BEET DECORATIONS ------------
Vendor's Total = 330.20
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VENDOR.: SOU01 (SOUTHERN CALIFORNIA EDISON)

REPORT.: 05/05/26 City of Bellflower PAGE: 018 RUN....: 05/05/26 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Eligio Marquez CTL.: BEL

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VENDOR.: SOU01 (SOUTHERN CALIFORNIA EDISON) ..Continue..

13.95 010 43210 3900 03/26 ELECTRIC
8266.03 010 43210 8000 03/26 ELECTRIC
3526.94 100 43210 3560 03/26 ELECTRIC
2481.82 010 43210 8010 TSS 03/26 ELECTRIC
260427ECFH XXXXXX 04/27/26 6627.32 010 43210 3900 ECF 03/26 ELECTRIC/THE MAYNE EVENTS CENTER B260428H XXXXXX 04/28/26 2294.21 010 43210 2000 03/26 ELECTRIC 1431.08 010 43210 3100 03/26 ELECTRIC
256.43 944 43210 3410 03/26 ELECTRIC

25.36 010 43210 3900 03/26 ELECTRIC
221.18 320 43210 6022 03/26 ELECTRIC
------------
Vendor's Total = 100540.64
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VENDOR.: SOU03 (THE GAS COMPANY)

14.30 010 43211 3900 03/26 GAS
325.86 010 43211 8000 03/26 GAS
B260424H XXXXXX 04/24/26 264.70 010 43211 3900 03/26 GAS

41.29 010 43211 2000 03/26 GAS
260424ECFH XXXXXX 04/24/26 1111.01 010 43211 3900 ECF 03/26 GAS/THE MAYNE EVENTS CENTER B260427H XXXXXX 04/27/26 226.76 010 43211 8010 TSS 03/26 GAS 306211 XXXXXX 04/30/26 34581.69 012 47604 9000 116 LINE EXTENSION CONTRACT/NEW METER & SVC/OAK CTR ------------
Vendor's Total = 39420.97
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VENDOR.: SOU71 (SOUTHSTAR ENGINEERING & CONSULTING, INC.)

REPORT.: 05/05/26 City of Bellflower PAGE: 019 RUN....: 05/05/26 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Eligio Marquez CTL.: BEL

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VENDOR.: SOU71 (SOUTHSTAR ENGINEERING & CONSULTING, INC.) ..Continue..

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VENDOR.: TIM06 (CHARTER COMMUNICATIONS HOLDINGS, LLC)

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

REPORT.: 05/05/26 City of Bellflower PAGE: 020 RUN....: 05/05/26 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Eligio Marquez CTL.: BEL

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VENDOR.: TRA16 (TRANSDEV FLEET SERVICES, INC.)

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VENDOR.: TUS01 (TUSTIN AWARDS, INC.)

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VENDOR.: UND01 (UNDERGROUND SERVICE ALERT OF SOUTHERN CA)

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VENDOR.: VER09 (VERIZON WIRELESS)

38.35 010 43300 1000 CVS 04/26 CELLULAR BROADBAND

38.35 010 43300 3000 04/26 CELLULAR BROADBAND 256.88 010 43300 3100 04/26 CELLULAR BROADBAND 118.43 010 43300 3900 04/26 CELLULAR BROADBAND 115.05 010 43300 4000 04/26 CELLULAR BROADBAND

REPORT.: 05/05/26 City of Bellflower PAGE: 021 RUN....: 05/05/26 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Eligio Marquez CTL.: BEL

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VENDOR.: VER09 (VERIZON WIRELESS) ..Continue..

35.49 900 43300 4152 04/26 CELLULAR BROADBAND 323.52 010 43300 2000 04/26 CELLULAR BROADBAND 116.71 010 43300 1100 04/26 CELLULAR BROADBAND

38.35 010 43300 5013 04/26 CELLULAR BROADBAND

96.72 010 43300 5000 04/26 CELLULAR BROADBAND 118.37 010 43300 5010 04/26 CELLULAR BROADBAND

38.35 010 43300 5011 04/26 CELLULAR BROADBAND

38.35 010 43300 5012 04/26 CELLULAR BROADBAND

38.35 010 43300 5017 04/26 CELLULAR BROADBAND

20.02 010 43300 5030 04/26 CELLULAR BROADBAND

38.03 320 43300 6022 04/26 CELLULAR BROADBAND

40.01 135 43300 3610 04/26 CELLULAR BROADBAND

78.39 900 43300 5022 04/26 CELLULAR BROADBAND ------------
Vendor's Total = 1884.09
------------

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

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

REPORT.: 05/05/26 City of Bellflower PAGE: 022 RUN....: 05/05/26 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Eligio Marquez CTL.: BEL

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

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VENDOR.: WAL08 (WALTERS WHOLESALE ELECTRIC COMPANY)

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

VENDOR.: WES09 (WEST COAST ARBORISTS, INC)

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

VENDOR.: WGZ00 (W.G. ZIMMERMAN ENGINEERING, INC.)

REPORT.: 05/05/26 City of Bellflower PAGE: 023 RUN....: 05/05/26 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Eligio Marquez CTL.: BEL

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

VENDOR.: WIL01 (WILLDAN ENGINEERING)

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

VENDOR.: WIL26 (WILSON GLASS & SCREEN)

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

VENDOR.: \AL60 (ANITA VALERIE ALATORRE)

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

VENDOR.: \COL4 (C-OLIVEIRA DESIGN INC.)

13.00 600 31650 REFUND CP#97155/SMIP/10028 WASHINGTON/R#25243

4.00 600 31652 REFUND CP#97155/CBSC/10028 WASHINGTON/R#25243 555.00 010 36000 REFUND PPR MAJOR/CP#97155/10028 WASHINGTON/R#25243 483.60 542 36002 REFUND GEN.PLAN,ZONE UPD/10028 WASHINGTON/R#25243 161.20 540 36004 REFUND GIS UPD/CP#97155/10028 WASHINGTON/R#25243 ------------
Vendor's Total = 5246.80
------------

REPORT.: 05/05/26 City of Bellflower PAGE: 024 RUN....: 05/05/26 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Eligio Marquez CTL.: BEL

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

VENDOR.: \COX7 (COX CONSTRUCTION)

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

VENDOR.: \DOM0 (DOMINIC THE ELECTRICIAN)

4.00 602 31654 REFUND FEES/SB1186/BL#25025/R#31680 ------------
Vendor's Total = 234.00
------------

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

VENDOR.: \DON2 (THE DONALD L. WILLIAMS REVOCABLE TRUST)

12.22 600 31650 REFUND CP#93684/SMIP/15302 STEVENS/R#12925

4.00 600 31652 REFUND CP#93684/CBSC/15302 STEVENS/R#12925

39.96 542 36002 REFUND PARTIAL ZONE UPD/15302 STEVENS/R#12925

13.32 540 36004 REFUND PARTIAL GIS FEE/15302 STEVENS/R#12925 12925A XXXXXX 04/22/26 1330.80 600 31600 PARTIAL REFUND CP#93685/15302 STEVENS/R#12925

45.50 600 31650 REFUND CP#93685/SMIP/15302 STEVENS/R#12925

14.00 600 31652 REFUND CP#93685/CBSC/15302 STEVENS/R#12925 159.70 542 36002 REFUND PARTIAL ZONE UPD/15302 STEVENS/R#12925

53.23 540 36004 REFUND PARTIAL GIS FEE/15302 STEVENS/R#12925 ------------
Vendor's Total = 2005.73
------------

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

VENDOR.: \ELI0 (ELITE ACADEMIC ACADEMY)

REPORT.: 05/05/26 City of Bellflower PAGE: 025 RUN....: 05/05/26 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Eligio Marquez CTL.: BEL

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

VENDOR.: \ESP3 (JOSE LUIS ESPARZA)

55.72 600 31650 REFUND CP#96547/SMIP/17443 LAKEWOOD/R#23294

8.00 600 31652 REFUND CP#96547/BSASRF/17443 LAKEWOOD/R#23294 225.72 542 36002 REFUND PARTIAL GEN.PLAN,ZONE UPD/17443 LAKEWOOD

75.24 540 36004 REFUND PARTIAL GIS UPDATE/17443 LAKEWOOD/R#23294 ------------
Vendor's Total = 2245.68
------------

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

VENDOR.: \HEI7 (MICHAEL HEINEMEYER)

---- WARRANT ----- --------------------------------------- DISTRIBUTION --------------------------------------- Invoice No Number Date Amount Paid G/L Account No Description Ctr
---------- ------ -------- ------------ -------------- --- -------------------------------------------------- 85752 XXXXXX 04/22/26 5100.00 090 20506 REFUND DEPOSIT/PW/C&D WMP/17141 BELLFLOWER BLVD ------------
Vendor's Total = 5100.00
------------

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

VENDOR.: \HEN4 (SHER'MYAH HENDERSON)

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

VENDOR.: \JMA0 (JMA PATIO & CONSTRUCTION INC.)

18.55 542 36002 REFUND PTL GEN.PL,ZONE UPD/16412 GRAND/R#30576

6.18 540 36004 REFUND PTL GIS UPDATE/16412 GRAND/R#30576/CK

1.04 600 31650 REFUND SMIP FEE CP#99094/16412 GRAND/R#30576

REPORT.: 05/05/26 City of Bellflower PAGE: 026 RUN....: 05/05/26 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Eligio Marquez CTL.: BEL

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

VENDOR.: \JMA0 (JMA PATIO & CONSTRUCTION INC.) ..Continue..

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

VENDOR.: \KAH0 (KAH PROPERTIES LLC)

22.88 600 31650 REFUND CP#96787-8/SMIP/9735 HARVARD/R#24281

8.00 600 31652 REFUND CP#96787-8/CBSC/9735 HARVARD/R#24281 257.76 542 36002 REFUND GEN. PLAN,ZONE UPD/9735 HARVARD/R#24281

85.92 540 36004 REFUND GIS UPDATE/9735 HARVARD/R#24281 ------------
Vendor's Total = 2522.56
------------

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

VENDOR.: \KIN0 (KINDER MORGAN/SFPP, LP)

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

VENDOR.: \L005 (MANUEL A LOPEZ)

16.90 600 31650 REFUND CP#98460/SMIP/16433 OREGON/R#29029

6.00 600 31652 REFUND CP#98460/BSASRF/16433 OREGON/R#29029 149.44 542 36002 REFUND PARTIAL GEN.PLN,ZONE UPD/16433 OREGON

REPORT.: 05/05/26 City of Bellflower PAGE: 027 RUN....: 05/05/26 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Eligio Marquez CTL.: BEL

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

VENDOR.: \L005 (MANUEL A LOPEZ) ..Continue..

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

VENDOR.: \LAC8 (PATRICIA LA COMMARE-PELZ)

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

VENDOR.: \OLV0 (ANDREW OLVERA)

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

VENDOR.: \ONS2 (ON-SITE BUILDERS INC.)

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

VENDOR.: \ONY1 (ONYX PAVING COMPANY INC.)

REPORT.: 05/05/26 City of Bellflower PAGE: 028 RUN....: 05/05/26 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Eligio Marquez CTL.: BEL

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

VENDOR.: \ONY1 (ONYX PAVING COMPANY INC.) ..Continue..

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

VENDOR.: \PE30 (MARTA PEREZ)

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

VENDOR.: \PON8 (FERNANDO PONCE)

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

VENDOR.: \REL2 (RELIABLE ENERGY MGMT. INC.)

10.62 542 36002 REFUND PARTIAL GEN.PLAN,ZONE UPD/9737 MAPLEWOOD

3.54 540 36004 REFUND PARTIAL GIS UPDDATE/9737 MAPLEWOOD/R#30209 ------------
Vendor's Total = 191.16
------------

REPORT.: 05/05/26 City of Bellflower PAGE: 029 RUN....: 05/05/26 Cash Disbursement Report by Vendor ID #: PYVP Run By.: Eligio Marquez CTL.: BEL

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

VENDOR.: \SAB2 (ANA MARIA GONZALEZ SABALZA)

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

VENDOR.: \SAI0 (SAINT JOHN BOSCO HIGH SCHOOL)

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

VENDOR.: \SYN2 (SYNERGV STRATEGIES)

Report's Grand Total = 4211272.05
============

15-B
TO: Honorable Mayor and Members of the City Council

ATTENTION: Ryan Smoot, City Manager

FROM: Mayra Ochiqui, City Clerk

SUBJECT: Consideration and possible action to approve the reappointment of Chamber of Commerce’s nominee Larry Wehage to the Southeast Los Angeles County Workforce Development Board
(SELACO WDB) for the term ending June 2028.

DATE: May 11, 2026

RECOMMENDATION TO CITY COUNCIL

1) Approve the reappointment of Chamber of Commerce’s nominee Larry Wehage to the SELACO WDB for the term ending June 2028; or

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

FISCAL IMPACT

Private Sector Directors receive $75 for each meeting of the Policy Board attended, up to a maximum of $75 per month per Resolution No. 03 -14 adopted April 14, 2013. Funds are budgeted in Account No. 010-41210-1000.

BACKGROUND

Each participating city has two Private Sector Directors on the Southeast Los Angeles County Workforce Development Board (SELACO WDB), which serve staggered, two-year terms. WDB Private Sector Directors meet bi-monthly on the third Tuesday of the month at 12:00 noon, location varies, (SELACO WDB Offices are located at 10900 East 183rd Street, Suite 350, Cerritos). Private Sector Directors must be nominated by local business organizations and business trade associations (e.g., the Chamber of Commerce), and must be representatives of business in the local area who:

1) are owners of businesses, chief executives or operating officers of businesses, and other business executives or employers with optimum policy -making or hiring authority; and
2) represent businesses with employment opportunities that reflect the employment opportunities of the local area.

Bellflower’s current representatives are Jennifer Beech and Larry Wehage. The Directors of the Chamber of Commerce have requested that Larry Wehage be reappointed to serve as Bellflower’s Private Sector Director on the SELACO WDB for the term ending June 2028 (correspondence attached).

ATTACHMENT

Correspondence from Chamber of Commerce .............................................................. 2 stafJeport_~

• f
May 1st, 2026
Ms. Mayra Ochiqui
Bellflower City Clerk
16600 Civic Center Drive
Bellflower, CA 90706
Dear Ms. Ochiqui,
The Bellflower Chamber of Commerce Board of Directors nominates Director, Larry Wehage to remain and serve on the SELCO Workforce Investment Board .

Sincerely,
Michele Moore
Chamber Office Manger

Page 1 of 2 ends

Bellflower City CouncilMay 11, 2026

Bellflower City Council
May 11, 2026