Agenda packet — Carson City Council, December 3, 2024 (part 2 of 2)

From August 19 – 26th this office conducted an onsite monitoring of the Community Development Block Grant Program (B20MC060514, B21MC060514) in order to assess your organization’s performance and compliance with applicable Federal program requirements.

Program performance was assessed through a review of operations, file documentation and interviews. HUD monitoring may result in the identification of Findings, Concerns, or exemplary practices. This letter transmits the monitoring review results and identifies one finding.

A Finding is a deficiency in program performance based on a violation of a statutory or regulatory requirement. A Concern is a deficiency in program performance that is not based on a statutory or regulatory requirement but is brought to the grantee’s attention. Corrective Actions to address the noncompliance are identified for all Findings. Recommended Corrective Actions are identified for Concerns. An exemplary practice is a noteworthy practice or activity being carried out by the grantee and may possibly be duplicated by another grantee.

Please respond to address the Finding identified in this letter, in accordance with the response timeframes outlined in the report. In addition, within 30 days from the date of this letter, you have the opportunity to provide additional information demonstrating that, contrary to the identified Finding, you can demonstrate compliance with the requirements outlined in the Finding.

If you fail to respond within 30 days, or if the response is unsatisfactory to HUD, you must undertake corrective actions. Similarly, if you have any technical corrections to HUD’s determinations or conclusions outlined in this monitoring letter, please address these issues in writing to this Department within 30 days of the date of this letter. Your written communication should explain the needed correction, along with supporting evidence. All communications should be sent to the attention of your HUD Reviewer.

I would like to thank you and your staff for your professionalism and cooperation during the review. You are supporting valuable programs that are successfully supporting housing and community development activities. Your HUD Reviewer, Michael Kovalsky, Senior Community Planning and Development Representative, is available to discuss the results of this monitoring letter or provide technical assistance, if requested, and can be reached at [email protected].

Sincerely,
Rebecca Blanco, Director
Office of Community Planning and Development
Enclosure
Digitally signed by: REBECCA BLANCO
DN: CN = REBECCA BLANCO C = US O = U.S.

Government OU = Department of Housing and Urban
Development, Office of Community Planning and
Development
Date: 2024.09.27 14:56:31 -07'00'

REBECCA
BLANCO
U.S. Department of Housing & Urban Development
Monitoring Report
City of Carson
Monitoring Dates: August 19th – August 26th
Community Development Block Grant Program (B20MC060514, B21MC060514)

INTRODUCTION
Monitoring is the principal means by which HUD ensures program effectiveness and management efficiency, and that programs are carried out in compliance with applicable laws and regulations. It assists grantees in improving performance, developing or increasing capacity, and augmenting management and technical skills. Monitoring is conducted within a specific, identified scope of review, based on sampling of particular grants, activities, and beneficiaries, as applicable.

In determining which grantees will be monitored, the Department uses a risk-based approach to rank grantees, programs and functions, including assessing the Department’s exposure to fraud, waste and mismanagement. This process not only assists the Department in determining which grantees to monitor, but also identifies which programs and functions will be reviewed.

Specifics relating to this review are as follows:

HUD Reviewer(s): Michael Kovalsky, Senior Community Planning and Development Representative
Grantee Staff/Participants: Robert T. Lennox, Assistant City Manager Debra Scott, Housing Specialist
Toni Carter, Housing Specialist
Ester Luis, Program Consultant
Miguel Ramirez, Program Consultant
Entrance Conference
Date: August 19th
Representatives: Michael Kovalsky, Senior Community Planning and Development Representative
Debra Scott, Housing Specialist
Toni Carter, Housing Specialist
Ester Luis, Program Consultant
Miguel Ramirez, Program Consultant
Exit Conference
Date: August 26th
Representatives: Michael Kovalsky, Senior Community Planning and Development Representative
Develyn Rhodes-Johnson, Program Manager
Robert T. Lennox, Assistant City Manager
Debra Scott, Housing Specialist
Toni Carter, Housing Specialist
Ester Luis, Program Consultant
Miguel Ramirez, Program Consultant

SCOPE OF REVIEW
The review scope encompassed the City of Carson’s (City) PY2021 and PY2022 CDBG grants (B20MC060514, B21MC060514) that funded the following IDIS activities selected for review: 943, 944, 975, 950, and 949. The CDBG program is administered by the City’s Housing Division and primarily fundshomeowner rehabilitation activities. The IDIS activities selected for review were part of the City’s homeowner rehabilitation program, were selected due to their high funding level (between $24,500 and $25,000) and program complexity, and represent a 26% sample of the City’s homeowner rehabilitation projects. The activities serve low- and moderate income families and were reviewed using monitoring exhibits covering following areas: individual CDBG-funded rehabilitation activities, flood insurance protections, lead-based paint compliance in properties receiving federal rehabilitation assistance, labor standards administration, and environmental review of the CDBG program.

The Exhibits referenced were used to guide the review and are from the Community Planning and Development Monitoring Handbook 6509.2, which is available here:
https://www.hud.gov/program_offices/administration/hudclips/handbooks/cpd/6509.2 .

AREAS REVIEWED AND CONCLUSIONS
Rehabilitation Activities
Exhibit 3-11, Guide for Review of Individual CDBG-funded Rehabilitation Activities was used to determine compliance with eligibility, national objective, property inspection, rehabilitation management, rehabilitation processing procedures, and other requirements. The following homeowner rehabilitation activities were reviewed: 943, 944, 975, 950, and 949.

The following documentation was examined as part of the monitoring review: City rehabilitation policies and procedures and project files for IDIS activities 943, 944, 975, 950, and 949. Project files included inspections, work write-ups, income source documentation, City income determinations, applications for assistance, written agreements, payment requests, and warranties. In addition, interviews were conducted with personnel from the City regarding the project files and procedures used to implement and manage the City’s single family rehabilitation program.

City procedures and project files reviewed showed compliance with requirements related to the following areas: income reviews, inspections, agreements, cost reasonableness, and warranties. Based on this monitoring review, it was determined that the City was in compliance with this area. As a result, no findings were made.

Flood Insurance Protection
Exhibit 27-1, Guide for Review of Flood Insurance Protection was used to determine compliance with flood insurance protection requirements and to verify the statutorily-prescribed period and dollar amount of flood insurance coverage. The following homeowner rehabilitation activities were reviewed: 943, 944, 975, 950, and 949.

Project files for IDIS activities 943, 944, 975, 950, and 949 were examined as part of the monitoring review. Project files included property records showing the address of the assisted properties and City screenshots showing if the properties were/were not located within a flood hazard area. HUD also verified if the properties were/were not located within a flood hazard area using FEMA’s website (https://msc.fema.gov/portal/home).

The City’s project files sufficiently addressed requirements related to flood insurance protection and showed that none of the properties reviewed were located in a flood hazard area. As a result, no flood insurance requirements applied to the properties reviewed. Based on this monitoring review, it was determined that the City was in compliance with this area. As a result, no findings were made.

Lead-Based Paint
Exhibit 24-1, Guide for Review of Lead-Based Paint Compliance in Properties Receiving Federal Rehabilitation Assistance was used to determine compliance with lead-based paint requirements for the homeowner rehabilitation program overall and for individual homeowner rehabilitation projects. The following homeowner rehabilitation activities were reviewed: 943, 944, 975, 950, and 949.

City procedures and project files reviewed showed compliance with lead-based paint requirements related to the following areas: testing, notices, level of lead-based paint work to be carried out, and risk assessments. Based on this monitoring review, it was determined that the City was in compliance with this area. As a result, no findings were made.

Labor Standards Administration
Exhibit 23-1, Guide for Review of Labor Standards Administration was used to assess the City’s compliance with the general administration and enforcement of Federal labor standards and reporting requirements. The following homeowner rehabilitation activities were reviewed: 943, 944, 975, 950, and 949.

Project files for IDIS activities 943, 944, 975, 950, and 949 were examined as part of the monitoring review. Project files included property records showing the type of assisted properties and the ownership of the properties.

The City’s project files sufficiently addressed requirements related to labor standards and showed that all of the properties reviewed were exempt from the standards.

The properties were exempt from the standards due to the type of properties assisted (single family) and ownership (not under common ownership). As a result, no labor standards requirements applied to the properties reviewed. Based on this monitoring review, it was determined that the City was in compliance with this area. As a result, no findings were made.

Environmental Review
Exhibit 21-1, Guide for Environmental Review of the Community Development Block Grant, HOME Investment Partnerships, Emergency Solutions Grants, and Housing for Persons With AIDS Programs by the Community Planning and Development (CPD) Representative was used to assess environmental performance of the City for its homeowner rehabilitation activities funded under the CDBG program. The following homeowner rehabilitation activities were reviewed: 943, 944, 975, 950, and 949.

City procedures and project files did not sufficiently address requirements related to completing the request for release of funds or documenting the Authority to Use Grant Funds form to be received from HUD. Based on this monitoring review, it was determined that the City was not in compliance with this area. As a result, one (1) finding was made.

Finding One: The City was unable to provide documentation to show that it was in fully in compliance with HUD environmental review requirements.

Condition:

The City was unable to provide a copy of its Request for Release of Funds (RROF) or its Authority to Use Grant Funds (AUGF) from HUD for its homeowner rehabilitation program.

While the City was unable to provide its RROF or AUGF for the activities reviewed, HUD was able to verify within its own records that the City submitted an RROF and that HUD sent the City an AUGF for its single family rehabilitation program. However, it is the City’s responsibility to maintain both documents.

Criteria:
24 CFR 570.506 states that each recipient shall establish and maintain sufficient records to determine whether the recipient has met the requirements of this part. 24 CFR 570.506(j) requires that recipients maintain records in accordance with other applicable laws and regulations set forth in subpart K. Subpart K includes 24 CFR 570.604 which covers environmental standards at 24 CFR Part 58 and the citations noted below.

An environmental review must be performed before any funds, regardless of source, are committed to a project. 24 CFR 58.70 states that the NOI/RROF must be disseminated and/or published in the manner prescribed by 24 CFR 58.43 and 24 CFR 58.45 before the certification is signed by the responsible entity.

Documentation of the environmental review should be maintained in the environmental review record. This record contains the description of all activities that are part of the project and an evaluation of the effects of the project. This record should be made available for public review. 24 CFR 58.71 – The RROF and certification shall be sent to the appropriate HUD Field Office and the request shall be executed by the Certifying Officer. The request shall describe the specific project and activities covered by the request and contain the certification required under the applicable statute cited in 24 CFR 58.1(b). The RROF and certification must be in a form specified by HUD.

Cause:

The City’s procedures did not sufficiently describe what must be done to complete a RROF or to document that it completed a RROF. In addition, the procedures do not identify form HUD- 7015.16 as being part of the environmental review process for the single family rehabilitation program.

Effect:

If the City cannot document that it is in compliance with environmental review requirements, HUD could request repayment for funds drawn for any activity for which the City cannot provide proof of its compliance.

Corrective Action:

To address this deficiency, the City is requested Revise and submit to HUD, policies and procedures that ensure the City follows the requirements described in the criteria of this finding. 801 East Carson Street, Carson CA 90745 ● (310) 830-7600 ● http://ci.carson.ca.us

December 3, 2024
Rebecca Blanco, Director
U.S. Department of Housing and Urban Development
Office of Community Planning and Development
Los Angeles Field Office, Region IX

SUBJECT: City of Carson Response to Monitoring Report Correction Action Dear Director Blanco,
The City of Carson is please to submit the revised procedures in response to the correction action outlined in the HUD Monitoring report dated September 27, 2024. The correction action has been successfully implemented through the adoption of updated guidelines, which were formally approved by the Carson City Council on December 3, 2024.

To address the findings noted in the monitoring report, the City has revised its procedures to ensure compliance with applicable regulations and best practices.

FINDING ONE: The City was unable to provide documentation to show that it was in fully compliance with HUD environmental review requirements.

CORRECTIVE ACTION: To address the deficiency, the City is requested Revise and submit to HUD, policies and procedures that ensure the City follows the requirements described in the criteria of this finding.

The revised guidelines specifically address the findings and recommendations outlined in the monitoring report and are included in the following sections of the document:
 City of Carson Neighborhood Pride Program Guidelines and Implementation Procedures, Section IX. Post Construction, A. Required Recordkeeping and Files, page 28.

The approved revised guidelines will ensure that all program activities are administered in accordance with HUD standards and expectations. The City of Carson looks forward to continuing its partnership with HUD to achieve the highest standards of program administration and service delivery.

Sincerely,

David Roberts, City Manager
City of Carson
City of Carson

CITY OF CARSON

File #: Version:

Report to Honorable Mayor and City Council
Tuesday, December 3, 2024, 5:00 PM
CONSENT 20. To: Honorable Mayor and City Council From: Josilla Togiola, Purchasing Manager FIN Purchasing Subject: CONSIDER REJECTION OF PROPOSALS RECEIVED FOR REQUEST FOR PROPOSALS("RFP"): 25-005 STATE OF THE CITY EVENT PRODUCTION AND MANAGEMENT I. SUMMARY
The City's Municipal Code ("CMC") enables the awarding authority to reject any and all bids or proposals receivedas a result of the City's Formal Bidding or Competitive Proposal Procedures. The City's bid and proposal evaluationprocess is a crucial and often complex process that involves City Staff analyzing bids or proposals to determinethe most advantageous award option for the City. Staff issued a Request for Proposals ("RFP") #25-005 on October 17, 2024. During the evaluation process, it wasdetermined that the proposals received exceeded the intended project budget and it would not be in the bestinterest of the City to award a contract to any of the proposers. Staff is requesting for City Council to formally rejectthe proposals received and authorize Staff to proceed identifying alternative solutions in compliance with thePurchasing Ordinance.

II. RECOMMENDATION
REJECT all proposals received in response to RFP: 25-005 State of the City Event Production and Management.

III. ALTERNATIVES
TAKE another action as deemed appropriate by the City Council, consistent with the requirements of the law.

IV. BACKGROUND
On October 17, 2024, the City of Carson ("City") issued RFP #25-005 to solicit proposals from qualiﬁed vendorsfor the 2025 State of the City Event Production and Management services. The RFP remained open until November7, 2024 at 2:00 PM and the City recorded a total of three (3) proposals received. Throughout the evaluation process,it was determined costs exceeded the anticipated project budget, or there existed a lack of demonstratedresponsibility of the proposer. Of the three (3) proposals received, the proposed costs ranged from $25,000 to$420,125.00. As a result, Staff is requesting for City Council to formally reject all proposals received for RFP #25-005 as allowed by CMC Section 2611(l)(1). Staff will pursue an alternative procurement option in compliance withthe City's Purchasing Ordinance.

V. FISCAL IMPACT
None.

VI. EXHIBITS
701 East Carson Street

1. RFP 25-005 Bid Register

Attachments
RFP 25-005 Bid Register.pdf
NAME
OF
PROJECT:

CITY
OF
CARSON
BID

PRODUCTION
AND

MANAGEMENT
Copy
(Lottie
U
EGEIWE (E24
2-00
p
BID

OPENING
DATE:
11/7/2024
TIME:
2:00
P.M.
#

COMPANY
COMPANY CONTACT (if
Applicable)
PLANET
BID

DATE/TIME RECEIVED
HARD
COPY

DATE/TIME RECEIVED
1 [bakers
Man
oduct
Ad
horn
5 Ste
Ven
ne
IG.
"pty
-
2 Naud Hy Fils Dor.

LOK ren
Coul
[ter
Zr
ley
AA.
|
Rach
irk
LLC
Aer 1 [eee
NE
os
ra
fA.
.
ne

12. Opened
By:

Print NA
City
Clerk:
ae
AN
Maui
rs Signature
Dipndy
ce
Or
Staff

Present:

PlanetBids Opened By:

Danvevle
Hasley
Print Legibly
Enc
g
Seed
Walla hs LA eo
Initials
SW
Pint
L Legibly
Initials

CITY OF CARSON

File #: Version:

Report to Honorable Mayor and City Council
Tuesday, December 3, 2024, 5:00 PM
CONSENT 21. To: Honorable Mayor and City Council From: Saied Naaseh, Director of Community Development CD Planning Subject: CONSIDER ADOPTION OF RESOLUTION NO. 24-113 FURTHER EXTENDING THE TIMELINEFOR COMPLIANCE ON THE PART OF SOUTH BAY CARSON, LLC & SYWEST DEVELOPMENT, LLC, WITHTHE TERMS AND CONDITIONS OF CONDITIONAL USE PERMIT NO. 940-13, RELOCATION REVIEW NO.3047-13 & RESOLUTION NO. 13-099, AND AMENDING RESOLUTION NO. 23-187 REGARDING VEHICLESTORAGE FACILITIES LOCATED ON THAT CERTAIN REAL PROPERTY WHOSE COMMON STREETADDRESS IS 20151 SOUTH MAIN STREET, CITY OF CARSON (CITY COUNCIL) I. SUMMARY
Presented for City Council consideration is Resolution No. 24-113 for a third extension for SyWest Development, LLC and South Bay Carson, LLC for compliance with Conditional Use Permit No. 940-13, Relocation Review No. 3047-13 and Resolution No. 13-099 (collectively, the “Original CUP”), which permitted, for an initial term of four (4) calendar years, the use of an approximately 24.65 acre site previously used as an organic refuse landﬁll, drive-in theater and auto auction, located at 20151 South Main Street, Carson, California.

The City Council previously approved two extension of time requests in years 2022 and 2023 respectively. The current compliance period ends on June 1, 2025 per the previously approved Resolution No. 23-187 which extended the compliance period last year.

On July 20, 2020, SyWest submitted an application for development of the Property, which Application includes a request for a General Plan Amendment, Speciﬁc Plan and related entitlements (e.g., Development Agreement, tentative parcel map, site plan and design review). Per the proposed Resolution, Sywest must comply with the Original CUP for the extended time of June 1, 2026, or earlier if the development applications are approved by the City and construction of the development is ready to commence.

II. RECOMMENDATION
WAIVE further reading and ADOPT Resolution No. 24-113, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

CARSON, CALIFORNIA, FURTHER EXTENDING THE TIMELINE FOR COMPLIANCE ON THE PART OF SOUTH BAY

CARSON, LLC & SYWEST DEVELOPMENT, LLC, WITH THE TERMS AND CONDITIONS OF CONDITIONAL USE PERMIT NO. 940-13, RELOCATION REVIEW NO. 3047-13 & RESOLUTION NO. 13-099, AND AMENDING RESOLUTION NO. 23-187 REGARDING VEHICLE STORAGE FACILITIES LOCATED ON THAT CERTAIN REAL PROPERTY WHOSE COMMON STREET ADDRESS IS 20151 SOUTH MAIN STREET, CITY OF CARSON." III. ALTERNATIVES
701 East Carson Street
TAKE such other and further actions as the City Council deems appropriate consistent with the requirements oflaw.

IV. BACKGROUND
In 2013, South Bay Carson, LLC and SyWest Development, LLC (collectively “SyWest”), acting on behalf of Enterprise Rent-A-Car Company of Los Angeles, LLC (“Enterprise”), applied for and was granted Conditional Use Permit No. 940-13, Relocation Review No. 3047-13 and Resolution No. 13-099 (the “Original CUP”) which permitted, for an initial term of four (4) calendar years, the use of an approximately 24.65 acre site previously used as an organic refuse landﬁll, drive-in theater and auto auction, located at 20151 South Main Street, Carson, California (the “Property”), for the storage of rental cars, including as a regional rental car storage hub, and the relocation of certain modular oﬃce buildings on that portion of the Property zoned ML-ORL-D.

Interim Urgency Ordinance Nos. 15-1575U and 16-1578U (collectively, the “Stadium Moratorium”) enacted a moratorium on the establishment, expansion, modiﬁcation, or new development within the six (6) planning study areas within the City of Carson. SyWest requested an extension of the Original CUP beyond October 21, 2017 and further requested that such extension of the Original CUP be deemed subject to the “exemption” provision(s) of the Stadium Moratorium (the “CUP Extension Request”). The Original CUP required that SyWest would, within three (3) years of approval of the CUP, enter into an agreement with the appropriate environmental regulatory agency (“Environmental Regulatory Agency” or “ERA”) to commence steps necessary to support the cleanup and reuse of the Property for new development but staff has contended that SyWest failed or refused to comply with this condition of the Original CUP. SyWest requested additional time to complete this task concurrently with City’s update to its General Plan (the “ERA Dispute”). SyWest has contended and advised staff that in order to fulﬁll this remediation condition of the Original CUP a proposed plan for redevelopment and long-term use of the Property is required to ﬁrst be processed, considered and approved by the City, and SyWest and the City desired to conﬁrm how this ERA Dispute would be addressed moving forward.

The Original CUP also required SyWest to develop, implement, and maintain a landscaping plan to assure an aesthetically appropriate appearance surrounding the Property but staff contended that certain areas of the existing landscaping around the Property were in disrepair and needed to be replaced and SyWest requested additional time to complete this task (“Landscape Dispute”).

In light of the foregoing, City and SyWest desired to fully and ﬁnally resolve the ERA Dispute, the Landscape Dispute, and the CUP Extension Request (collectively the “Disputes”), to avoid litigation arising out of such Disputes, and in furtherance of that objective, on September 5, 2017, the City Council adopted Resolution 17-120 (“Compliance Resolution”) which served as an attempt to effectuate the foregoing, and which also extended the compliance period under the Original CUP until October 31, 2020 (“Compliance Period”). The Compliance Resolution required Sywest to make a series of deposits and payments with the City against which City is permitted to deduct for various reasons.

SyWest submitted an application (“Application”) on or about July 20, 2020, for development of the Property, which the Application includes a request for a General Plan Amendment, Speciﬁc Plan and related entitlements (e.g., Development Agreement, tentative parcel map, site plan and design review) (“Proposed Entitlements”) for development of a major retailer (“New Retailer”). Sywest has also addressed the Landscape Dispute by continuing to maintain the landscaping by a professional landscape company and replacing the landscaping if they are deemed unhealthy by the landscape maintenance company; generally, the appearance of the landscaping is acceptable.

To support the parking of new and used cars, the resolution further authorizes the following incidental uses: (a) access and operation (e.g., loading, unloading, long term parking) by car carriers accessing the Property from Figueroa Street; (b) installation and use of temporary structures, including, without limitation, mobile storage units, canopies, sanitary services (i.e., portable toilets), and modular oﬃces; and (c) the direct-to-consumer delivery of new or used cars between 9:00 a.m. and 5:00 p.m. seven (7) days per week.

On November 21, 2023, the City Council approved Resolution No. 23-187 approving a Second Amendment to Extended Compliance Resolution further amending the Extended Compliance Period until no later than June 1, 2025, and authorizing the use of the Property for the Temporary Parking Use during the Extended Compliance Period.

To allow time for the Application to be processed and the temporary parking use on the property to continue until such time, SyWest is asking the City for another extension of time and amending Resolution No. 23-187 to comply with the Original CUP. This extension would give Sywest additional time to comply, which terminates on June 1, 2026 or when the Proposed Entitlements are ﬁnally approved and construction can commence, whichever occurs ﬁrst (“Extended Compliance Period”). During this time, SyWest proposes to continue to park Sprinter vans and new or used cars. Sywest requested additional time well in advance of the June 1, 2025 expiration date to provide the current tenants with certainty regarding their right to remain on the property. Without this extension, the tenants would be required to terminate their leases and seek longer-term options.

The resolution approving such extension would require SyWest to remit to the City an annual Heavy Vehicle Transit Fee of Ten Thousand Four Hundred-Sixteen Dollars ($10,416.00) for every acre of the Property used for the Sprinter van and car parking and related operations during the term of the Extended Compliance Period.

Also under the Extended Compliance Resolution, SyWest will be required to (i) comply with all remaining conditions of approval in the Original CUP, including, but not limited to, the landscape and operations provisions of the same, to the reasonable satisfaction of City; and (ii) continue to diligently seek to secure the Proposed Entitlements from the City.

It should also be noted that an amendment to Reimbursement Agreement has been signed by Sywest which will require Sywest to pay for all City costs and fees associated with the Extended Compliance Resolution and any development of the Property.

V. FISCAL IMPACT
The proposed resolution commits SyWest to pay the Heavy Vehicle Transit Fee. Additionally, SyWest has separately entered into a reimbursement agreement with the City to fully reimburse the City its costs, including staff time, if any, and legal time in negotiating and documenting the extension provided by the resolution and all fees and costs associated with any development of the Property. As a consequence, there will be no direct costs to the City’s General Fund.

VI. EXHIBITS

1. Resolution No. 24-113

Attachments
2024 Extension Resolution No. 24-113 re Timeline for Compliance re CUP (1019322.8) ﬁnal.pdf

01007.0591/937635.1
RESOLUTION NO. 2024-113

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARSON,

CALIFORNIA, FURTHER EXTENDING THE TIMELINE FOR COMPLIANCE

ON THE PART OF SOUTH BAY CARSON, LLC & SYWEST

DEVELOPMENT, LLC, WITH THE TERMS AND CONDITIONS OF
CONDITIONAL USE PERMIT NO. 940 -13, RELOCATION REVIEW NO. 3047-13 & RESOLUTION NO. 13-099, AND AMENDING RESOLUTION NO. 23-187 REGARDING VEHICLE STORAGE FACILITIES LOCATED ON

THAT CERTAIN REAL PROPERTY WHOSE COMMON STREET ADDRESS
IS 20151 SOUTH MAIN STREET, CITY OF CARSON
WHEREAS, in 2013, South Bay Carson, LLC as owner of that certain real property hereinafter described and SyWest Development, LLC (collectively “SyWest”), acting on behalf of Enterprise Rent-A-Car Company of Los Angeles, LLC (“Enterprise”), applied for and was granted Conditional Use Permit No. 940-13, Relocation Review No. 3047-13 and Resolution No. 13-099 (collectively the “Original CUP”) which permitted, for an initial term of four (4) calendar years, the use of an approximately 24.65 acre site previously used as an organic refuse landfill, drive-in theater and auto -auction, whose common street address is 20151 South Main Street, Carson, California (the “Property”), as and for the storage of rental cars, including as a regional rental car storage hub, and the relocation of certain modular office buildings on that portion of the Property zoned ML-ORL-D; and
WHEREAS, the Original CUP was duly approved and adopted by the Carson City Council on October 21, 2013, and required, among other conditions of approval, that SyWest would, within three (3) years of approval of the CUP, enter into an agreement with the appropriate environmental regulatory agency (“Environmental Regulatory Agency” or “ERA”) to commence steps necessary to support the cleanup and reuse of the Property for new development; and WHEREAS, staff had contended that SyWest failed or refused to comply with this condition of the Original CUP and SyWest requested additional time to complete this task concurrently with City’s update to its General Plan (the “ERA Dispute”); and WHEREAS, SyWest has contended and advised staff that in order to fulfill this remediation condition of the Original CUP, a proposed plan for redevelopment and long-term use of the Property is required to first be processed, considered and approved by the City, and SyWest and the City desired to confirm how this ERA Dispute would be addressed moving forward; and WHEREAS, the Original CUP required, among other conditions of approval, that SyWest would develop, implement, and maintain a landscaping plan to assure an aesthetically appropriate appearance surrounding the Property; and
WHEREAS, staff contended that certain areas of the existing landscaping around the Property were in disrepair and needed to be replaced and SyWest requested additional time to complete this task (“Landscape Dispute”); and

WHEREAS, City and SyWest desired to fully and finally resolve the Landscape Dispute and the ERA Dispute in order to avoid litigation between them arising out of such disputes, and without acknowledging fault or responsibility in connection with the positions of any party in such disputes; and
WHEREAS, in connection with the parties’ attempt to fully and finally resolve the ERA Dispute, the Landscape Dispute, and the CUP Extension Request (collectively the “Disputes”), to avoid litigation between them arising out of such Disputes, and without acknowledg ing fault or responsibility in connection with the positions of any party in such Disputes, on September 5, 2017, and May 5, 2020, the City Council adopted Resolutions 17 -120 and 20-081, respectively, (“Compliance Resolutions”) which served as an a ttempt to effectuate the foregoing, and which also extended the compliance period under the Original CUP until October 31, 2021 (“Compliance Period”); and
WHEREAS, SyWest has addressed the Landscape Dispute by continuing to maintain the landscaping by a professional landscape company and replacing the landscaping if they are deemed unhealthy by the landscape maintenance company; generally, the City has determined the maintenance and appearance of the landscaping is acceptable; and WHEREAS, on or about July 20, 2020, SyWest submitted an application (“Application”) for development of the Property , which Application includes a request for a General Plan Amendment, Specific Plan and related entitlements (e.g. Development Agreement, tentative parcel map, site plan and design review) (collectively “Proposed Entitlements”); and WHEREAS, the City has placed ERA discussions regarding development on hold with DTSC while the City processes the Application;
WHEREAS, SyWest has asked the City for the right to continue to utilize the Property consistent with the Original CUP while the Application is processed; and WHEREAS, pursuant to the Compliance Resolutions, SyWest deposited with City in October 2017, to be held in a separate City interest bearing account, a bond or other irrevocable instruction having a penal value of Three Hundred Fifty Thousand Dollars ($350,000) as a “Holdover Deposit” from which City may deduct any and all amount(s) as expressly provided for under the Compliance Resolution, with such deduction(s) timely and reasonably documented by City and made available for SyWest’s review; and
WHEREAS, pursuant to the Compliance Resolutions, SyWest further paid to City several installments of a “Heavy Vehicle Transit Fee”, of which portions of said payments included an increase of the Holdover Deposit, and cumulatively equate to an additional One Hundred Twenty- Five Thousand Dollars, ($125,000) added to the Holdover Deposit to bring the total Holdover Deposit to Four Hundred Seventy-five Thousand Dollars ($475,000.00) as of April 30, 2021; and WHEREAS, on April 30, 2021, Enterprise ceased operations at the Property and properly vacated the Property in compliance with the Resolution;

WHEREAS, on September 13, 2021, having determined that Enterprise met the obligations of the Compliance Resolutions, the City terminated the $350,000 Holdover Deposit by issuing a letter of release to Bank of America, copied to SyWest and Enterprise, stating that the bond representing the Holdover Deposit for the benefit of the City may be cancelled. The remaining portion of the Holdover Deposit in the amount of One Hundred Twenty-five Thousand Dollars, ($125,000), is still held by the City on behalf of SyWest pursuant to terms set forth in the Compliance Resolution unless the City provides proof that this amount has been refunded to Sywest;
WHEREAS, on November 3, 2021, to accommodate SyWest’s request and in furtherance of possible development of the Property, the City Council approved Resolution 21-142 (“Extended Compliance Resolution”), which, like the Compliance Resolutions, was adopted to finally resolve any Disputes and document the resolution of the same as well as to extend the compliance date of the Original CUP by one (1) additional year to October 31, 2022 (“Extended Compliance Period”), to provide SyWest time to secure the Proposed Entitlements from the City and obtain building permits by going through the plan check process and allow for beneficial use of the Property during that period;
WHEREAS, SyWest has been and continues to diligently seek to secure the Proposed Entitlements from the City, and SyWest and the City desire to allow for beneficial use of the Property during that period;
WHEREAS, on July 19, 2022, the City Council approved Resolution No. 22 -148 approving a First Amendment to Extended Compliance Resolution further amending the Extended Compliance Period until no later than June 1, 2024, and authorizing SyWest to use the Property for the following uses during the Extended Compliance Period:
(i) Sprinter Van Operations – which use shall be permitted on no more than twelve (12) acres of the site and consist of the overnight parking of delivery cargo vans, colloquially known as “Sprinter Vans” and employee vehicles entering and exiting the Property between 9:00 a.m. and 5:00 p.m. five (5) days per week, including occasional weekends if demand for services warrant, with the Sprinter Vans remaining parked overnight at the Property; and (ii) Car Operations – which use shall be permitted on the entire site and consist of parking of new or used cars without time restriction, and , to support such operations , the following incidental uses: (a) access and operation (e.g., loading, unloading, long term parking) by car carriers accessing the Property from Figueroa Street ; (b) installation and use of temporary structures, including, without limitation, mobile storage units, canopies, sanitary services (i.e., portable toilets), and modular offices; and (c) the direct-to-consumer delivery of new or used cars between 9:00 a.m. and 5:00 p.m. seven (7) days per week; “Sprinter Van Operations” and “Car Operations” shall collectively be referred to herein as “Temporary Parking Use.”

WHEREAS, in accordance with Resolution No. 22 -148, SyWest provided a site plan to the Planning Division designating the areas of the site that will be occupied. Any modification to the designated areas to be used shall require SyWest to file a revised site plan with the Planning Division.

WHEREAS, pursuant to Resolution No. 22 -148, the Temporary Parking Use shall not include any of the following: (i) vehicle service or maintenance, other than preparation of a vehicle for transfer, sale, or delivery; (ii) loading/unloading, transfer shipping or removal of any contents of the Sprinter Vans; (iii) overnight parking of employee vehicles; (iv) sleeping of any kind within the Property, whether inside or outside any vehicle parked thereon; (v) parking of re creational vehicles or trailers designed f or human accommodation, such as motorhomes, campervans, coaches, caravans fifth-wheel trailers, and popup campers, (vi) boats, (vii) large trucks, excepting therefrom car carriers, and containers, excepting therefrom storage units for storage of material and equipment supporting the Car Operations, or (viii) any other activity not specifically enumerated above within the description of the Temporary Parking Use (collectively, “Prohibited Activities”);
WHEREAS, before adoption of Resolution No. 22-148, City staff evaluated the scope of the Temporary Parking Use and confirmed that such activities would be less intensive from the standpoint of traffic, circulation, and air quality impacts than those previously analyzed and approved for the Enterprise activities under the Compliance Resolutions and, as such, no further review is required under the California Environmental Quality Act, Public Reso urces Code sections 21000 et seq. and its implementing guidelines (Cal. Code Regs. Title 14, §§ 15000 et seq. (collectively, “CEQA”) pertaining to the Temporary Parking Use; WHEREAS, SyWest had previously informed City staff that the entities conducting the Car Operations would not continue to utilize the Property without a commitment for the right to continue operations beyond June 1, 2024, and as such, SyWest had requested an additional extension to the Extended Compliance Period until no later than June 1, 202 5, to allow the Car Operations to commit to continue their Temporary Parking Use on the Property; WHEREAS, in response to Sy West’s request, on November 21, 2023, the City Council approved Resolution No. 23 -187 approving a Second Amendment to Extended Compliance Resolution further amending the Extended Compliance Period until no later than June 1, 2025, and authorizing the use of the Property for the Temporary Parking Use during the Extended Compliance Period;
WHEREAS, SyWest has again informed City staff that the entities conducting the Car Operations require further certainty to continue utilizing the Property beyond June 1, 2025, and as such, SyWest has requested an additional extension to the Extended Compliance Period until no later than June 1, 2026, to allow the Temporary Parking Use on the Property to continue until such time;

WHEREAS, the City Council hereby adopts this Resolution , amending Resolution No. 23-187, to authorize the Temporary Parking Use for the Extended Compliance Period, as further revised, and outline the requirements and limitations applicable to such Temporary Parking Use.

NOW THEREFORE, the CITY COUNCIL of the CITY OF CARSON, CALIFORNIA, does hereby FIND, DETERMINE and ORDER AS FOLLOWS:

Section 1. Recitals.

The foregoing recitals are true and correct and incorporated herein by this reference.

Section 2. Approval of Extended Compliance Period Directed to South Bay Carson, LLC & SyWest Development, LLC, Jointly and Severally.

Subject to SyWest’s agreement to comply with its obligations set forth in Section 3 below, City hereby approves one extended compliance period under the Original CUP from October 31, 2021 until and through June 1, 2026 (“Extended Compliance Period”); provided that (i) the City Council may extend such time in its sole discretion by approval of an amendment to this Resolution if the Proposed Entitlements are not completed during the Extended Compliance Period and (ii) if at any time after June 1, 2025, the Proposed Entitlements are finally approved and construction can commence before June 1, 2026, City may provide written notice to SyWest terminating the Extended Compliance Period no earlier than thirty (30) days after delivery of said written notice.

Section 3. Conditions of Extended Compliance Period.

In resolution of the Disputes, the City Council issues the following compliance order:

A. SyWest shall terminate, and cease and desist in, the operation of any Temporary Parking Use on or at the Property; such compliance shall occur on or before the close of normal business hours on June 1, 2026 (the “Extended Compliance Deadline”); provided that (i) the City Council may, extend such time in its sole discretion by approval of an amendment to this Resolution if the Proposed Entitlements are not completed during the Extended Compliance Period, despite SyWest’s good faith efforts to continue to diligently seek to secure the Proposed Entitlements from the City , and (ii) if at any time after June 1, 2025, the Proposed Entitlements are finally approved and construction can commence before June 1, 202 6, City may provide written notice to SyWest terminating the Extended Compliance Period no earlier than thirty (30) days after delivery of said written notice . Failure to meet the Extended Compliance Deadline, as may be extended per the terms herein, shall subject SyWest to enforcement actions as well as such other legal remedies as may be afforded City by law.

B. SyWest shall, during the term of this Extended Compliance Resolution, (i) comply with all remaining conditions of approval in the Original CUP, including, but not limited to, the landscape and operations provisions of the same, to the reasonable satisfaction of City ; and (ii) continue to diligently seek to secure the Proposed Entitlements from the City.

C. In consideration of the Extended Compliance Period and resolution of the Disputes, by no later than February 1, May 1, August 1 and November 1 of each year during the Extended Compliance Period (the “Remittance Date”), SyWest shall pay to City as follows for the Temporary Parking Use:

1. For the Sprinter Van Operations and Car Operations, SyWest will remit an annual Heavy Vehicle Transit Fee of Ten Thousand Four Hundred -Sixteen Dollars ($10,416.00) for every acre of the Property used for such purposes during the term of the Extended Compliance Period, reflecting compensation to the City for the Temporary Parking Use attributable to the Sprinter Van Operations and Car Opera tions. The amount of any payment remitted by SyWest shall be based upon the portion of Property shown on the site plan as being used for the Sprinter Van Operations and Car Operations such that the amount of any such installment and total payment of the Heavy Vehicle Transit Fee shall be assessed and paid on a prorata basis. By way of example only, should only 9 of the total 24 acres of the Property be used on the Remittance Date for Sprinter Van Operations and Car Operations, the quarterly payment by SyWest on the Remittance Date shall be ($10,416.00 / 4) x 9 acres, (or $23,436.00 for such period). SyWest shall provide a site plan to the Planning Division to designate the areas of the site that will be occupied. If the designated areas to be used are modified, a revised site plan shall be filed with the Planning Division. SyWest’s quarterly payment will include any incre ase or decrease in the Heavy Vehicle Fee due to the City for increased or decreased use of the Property since the last quarterly payment made to the City.

2. Should this Resolution be extended pursuant to Section 3.A above, SyWest shall pay a prorated amount of the Heavy Vehicle Transit Fee based on the acres used for such extended time and months by which the extension is authorized. Such installment shall be paid on the first day of the month following each three (3) month period following the extension of the Extended Compliance.

D. In the event that the Property stops being used for the Temporary Parking Use prior to the Extended Compliance Deadline, the payments required herein above will abate effective as of the date of cessation of the Temporary Parking Use, but only if there is a complete cessation of any and all use of the Property for Temporary Parking Use. Otherwise, cessation of use of the Property for either the Sprinter Van and/or Car Operations shall not abate the SyWest payment obligations set forth hereinabove.

Section 4. City’s Right to Enforcement; Miscellaneous Provisions.

A. Subject to the City’s election, in its sole and unfettered discretion, to extend the Extended Compliance Deadline, should SyWest fail to meet the Extended Compliance Deadline, SyWest shall pay a delinquent departure penalty in the amount of Five Thousan d Dollars ($5,000.00) per day for each day of delayed departure beyond the Extended Compliance Deadline which departure penalty City may unilaterally withdraw from the Holdover Deposit.

B. In the event that any provision of this Resolution is declared invalid, illegal or otherwise unenforceable by a court of competent jurisdiction, the entire Resolution shall be null and void and shall subject SyWest to such enforcement action(s) as well as such other legal remedies as may be afforded the City by law.

C. In the event the City is required to take action to enforce this Resolution, or in the event this Resolution is declared invalid, illegal or otherwise unenforceable by the court of competent jurisdiction and the City is required to commence an enforcement proceeding(s) against SyWest, the City shall be reimbursed by SyWest for all costs and reasonable attorneys’ fees incurred in such action or enforcement proceeding(s).

D. In the event that any claim or litigation is filed to challenge any provision of this Resolution (“Litigation Challenge”), the payment obligations of SyWest under this Resolution shall be tolled and delayed for a period of time equal to the time any suc h “Litigation Challenge” is pending. If a “Litigation Challenge” is pending on the date that any payment is due and payable under this Resolution, SyWest shall deposit the entire amount due and payable into a separate interest-bearing account (“Escrow Account”) with the City. Within thirty (30) days following the final resolution of any “Litigation Challenge,” SyWest shall authorize, in writing, City to withdraw all funds in the Escrow Account and credit the same against any unpaid annual 2024, 2025 or 2026 Heavy Vehicle Transit Fee owed by SyWest as a result of the Property’s use for Temporary Parking Uses during the pendency of such “Litigation Challenge” (provided any balance thereafter remaining is returned by City to SyWest within ten (10) days thereof).

E. During the term of this Resolution and Extended Compliance Period, SyWest shall pay to the City all normal and customary fees and charges applicable to all permits necessary for the use, and any taxes, fees, and charges imposed by City in connection wit h the use which are standard and uniformly applied to similar entities in the City.

Section 6. Resolution Exempt from CEQA.

A. The City Council finds and determines that this Resolution is exempt from the requirements of the California Environmental Quality Act as a Class 1 Categorical Exemption, Existing Facilities, pursuant to Section 15301 of the CEQA Guidelines.

B. The City Council further finds and determines that this Resolution is exempt from the requirements of the California Environmental Quality Act as a Class 21 Categorical Exemption, Enforcement Actions by Regulatory Agencies, pursuant to Section 15321 of the CEQA Guidelines.

Section 7. SyWest Indemnification.

SyWest shall indemnify, protect, defend, and hold harmless City, and its respective officials, officers, employees, agents, elected boards, commissions, departments, agencies, and instrumentalities thereof, from any and all actions, suits, claims, demands, writs of mandamus, liabilities, losses, damages, penalties, obligations, expenses, and any other actions or proceedings

(whether legal, equitable, declaratory, administrative, or adjudicatory in nature), and alternative dispute resolution procedures (including, but not limited to, arbitrations, mediations, and other such procedures) asserted by third parties against City that may arise from or relate to adoption of this Resolution (herein the “Claims and Liabilities”), whether such Claims and Liabilities arise out of or under planning and zoning laws, the Subdivision Map Act, Code of Civil Procedure §§ 1085 or 1094.5, or any other federal, state, or local statute, law, ordinance, rule, regulation, or any decision of a competent jurisdiction.

Section 8. This Resolution Amends Prior Resolutions.

This Resolution shall amend and replace prior Resolutions addressing the matters described herein, including but not limited to Resolution No. 23-187.

Section 9. Effectiveness; Certification.

This Resolution shall take effect immediately upon its adoption. The City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions.

PASSED, APPROVED AND ADOPTED this ____ day of December 2024.

Lula Davis-Holmes, Mayor
ATTESTED:

City Clerk

APPROVED AS TO FORM:

Sunny Soltani, City Attorney

CITY OF CARSON

File #: Version:

Report to Honorable Mayor and City Council
Tuesday, December 3, 2024, 5:00 PM
SPECIAL ORDERS OF THE DAY 22. To: Honorable Mayor and City Council From: Saied Naaseh, Director of Community Development CD Administration Subject: CONSIDER ADOPTION OF RESOLUTION NO. 24-112 APPROVING CEQA “NOPROJECT”/EXEMPTION FINDINGS AND ADOPTING GENERAL PLAN AMENDMENT NO. 1-24, MODIFYINGTHE LAND USE AND REVITALIZATION ELEMENT OF THE CARSON 2040 GENERAL PLAN REGARDINGSPECIFIC PLAN REQUIREMENT FOR ANY REDEVELOPMENT OF EXISTING OIL OR PETROLEUMREFINERY SITES FOR SUBSEQUENT USE FOLLOWING CESSATION OF REFINERY OPERATIONS I. SUMMARY
The Planning Commission held a duly noticed public hearing at its meeting of November 12, 2024, to consider a recommendation to the City Council on the General Plan Amendment. The Commission considered evidence presented at the public hearing, including public testimony, and a report prepared by City staff, and following the hearing, adopted Planning Commission Resolution No. 24-2880, unanimously recommending to the City Council approval of the General Plan Amendment
The City has initiated General Plan Amendment No. 1-24 (the “General Plan Amendment”) to modify the text of Implementing Policy LUR-P-29 to expressly require the submission and approval of a Speciﬁc Plan prior to or concurrent with approval of development plans for any redevelopment of a Reﬁnery Site for a new use following cessation of reﬁnery operations, and to make a corresponding change to Figure 2-3 (General Plan Land Use Diagram) for internal consistency in the Land Use and Revitalization Element.

This action will help to ensure the protection of public health, safety and welfare, environmental justice, and environmental quality in the event of an application for redevelopment of the site of an existing oil or petroleum reﬁnery or associated use in Carson (“Reﬁnery Site”) for a new use following cessation of reﬁnery operations.

Requiring a Speciﬁc Plan prior to any such redevelopment will ensure the City has the necessary authority to conduct CEQA review of such projects, and will also help ensure the City has the necessary Planning oversight and decision-making authority to require the redevelopment to be cohesive and compatible both within the site and with surrounding uses, such as by requiring landscaped buffers and other project design features and other measures to avoid negative impacts on public health, safety, and welfare, including for the people who occupy the site of the redevelopment and the surrounding areas including existing or proposed residential areas that may be in the travel path of future development of such sites.

II. RECOMMENDATION
701 East Carson Street
TAKE the following action:

1. ADOPT the proposed City Council Resolution 24-112, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARSON APPROVING CEQA “NO PROJECT”/EXEMPTION FINDINGS AND ADOPTING GENERAL PLAN AMENDMENT NO. 1-24, MODIFYING THE LAND USE AND REVITALIZATION ELEMENT OF THE CARSON 2040

GENERAL PLAN REGARDING SPECIFIC PLAN REQUIREMENT FOR ANY REDEVELOPMENT OF EXISTING OIL

OR PETROLEUM REFINERY SITES FOR SUBSEQUENT USE FOLLOWING CESSATION OF REFINERY OPERATIONS”
III. ALTERNATIVES
TAKE another action that City Council deems appropriate, subject to compliance with applicable law.

IV. BACKGROUND
The Carson 2040 General Plan (General Plan) was adopted in April 2023 and contains nine elements. It is designed to meet the current needs of the City and anticipated future needs of the City. It introduces a greater mix of land uses to reﬂect new and changing priorities and encourages sustainability through transit-oriented, mixed-use, inﬁll development, and creates greater opportunity and equity. It promotes development in the core area and provides greater diversity of non-residential uses. The General Plan also includes a new Community Health and Environmental Justice Element (the "Environmental Justice Element").

The Environmental Justice Element is guided by Senate Bill (SB 1000) and requires cities with SB 535 “disadvantaged communities” to include an environmental justice element in their general plans. CalEPA identiﬁes disadvantaged communities as low-income areas that are disproportionately affected by and/or vulnerable to pollution and other environmental hazards that negatively impact human health, most commonly among communities of color. Out of the 26 census tracts that intersect with the Planning Area of the General Plan, 22 are “disadvantaged communities.” These include the areas of the City located immediately to the west and north of two major oil reﬁneries currently operating in the City, the Phillips 66 and Tesoro (Marathon) reﬁneries, as shown in Figure 6-1 in the Environmental Justice Element.

The General Plan already requires preparation of a Speciﬁc Plan for the future development of the former Shell reﬁnery site. The Shell site is not the subject of the proposed General Plan Amendment, as it is a former (not current) reﬁnery site and has already been adequately addressed in the General Plan.

Proposed Amendments to the General Plan
The text of Implementing Policy LUR-P-29 on page 2-30 of the General Plan Land Use and Revitalization Element is hereby amended as follows (additions shown in in bolded, underlined font; deletions shown in strikethrough font)):
“Undertake planned development and speciﬁc plans for unique projects as a means to achieve high community standards, address neighborhood or signiﬁcant site-speciﬁc issues, ensure compatibility between a number of uses, on large parcels, and when needed as part of a redevelopment or environmental remediation strategy.

Require submittal and approval of a speciﬁc plan prior to, or concurrently with, approval of development plans for any redevelopment of the site of an existing oil or petroleum reﬁnery or associated use for a new use following cessation of reﬁnery operations.

Such areas that would beneﬁt from a speciﬁc plan include the Shell Site, the and South Bay Pavilion, the site of the Marathon/Tesoro oil reﬁnery, and the site of the Phillips 66 oil reﬁnery, if redeveloped.” Figure 2-3 (General Plan Land Use Diagram) on page 2-10 in the Land Use and Revitalization Element of the General Plan is hereby amended to do the following, as shown in the amended Figure 2-3 attached hereto as Exhibit “A” of Resolution No. 24-112 and incorporated herein by this reference: (i) delineate the area of the City that is located south of 223rd Street and east of Wilmington Avenue as one or more “Potential Speciﬁc Plan Area(s)” using light blue dots according to the legend in said ﬁgure; and (ii) add an associated notation reading as follows: “Potential Speciﬁc Plan Area(s). See LUR-P-29, City Council Resolution No. 24-112.” For the avoidance of doubt, this amendment to Figure 2-3 is not intended to create a substantive requirement independent of LUR-P-29 as modiﬁed pursuant to subsection (A) of this Section 4, but rather is intended to maintain internal consistency of the General Plan and apprise readers of Figure 2-3 of the potential requirement of a Speciﬁc Plan pursuant to LUR-P-29 as modiﬁed pursuant to subsection (A) of Section 4 of resolution No. 24-112.

In regards to the properties within the potential speciﬁc plan areas for Marathon/Tesoro and Phillips 66 oil reﬁnery sites as identiﬁed in Figure 2-3, the mere fact that a property is within the potential speciﬁc plan areas does not in and of itself create any requirement for submittal or approval of a Speciﬁc Plan prior to development of the property or constitute a determination that all or any particular portion of the delineated area constitutes “sites of existing oil or petroleum reﬁneries and associated uses” to which LUR-P-29 applies as determined by the Community Development Director. In addition, the delineated area may include one or more potential Speciﬁc Plans, as different sites that are subject to LUR-P-29 may submit and obtain approval of different Speciﬁc Plans.

Consistency with General Plan
The General Plan Amendment is consistent with the Carson 2040 General Plan, including furthering the following General Plan goals, policies and objectives: Guiding Principle 6, Guiding Principle 7, Land Use and Revitalization Element Guiding Policy LUR-G-13, Land Use and Revitalization Element Guiding Policy LUR-G-14, Land Use and Revitalization Element Implementing Policy LUR-P-29, Community Health and Environmental Justice Element Guiding Policy CHE-G-1, Community Health and Environmental Justice Element Guiding Policy CHE-G-2, Community Health and Environmental Justice Element Guiding Policy CHE-G-4, and Community Health and Environmental Justice Element Implementing Policy CHE-P-8.

Environmental Determination
Pursuant to CEQA Guidelines Section 15378, the General Plan Amendment does not constitute a CEQA “project”, because the action constitutes administrative or maintenance activities of the City, such as general policy and procedure making that is excluded from the deﬁnition of project under CEQA Guidelines Section 15378(a). The action does not change the permitted uses of any real property, and merely requires an additional layer of City planning review prior to any redevelopment of a Reﬁnery Site for a new use following cessation of reﬁnery operations, such that an applicant would need to prepare a Speciﬁc Plan and go through the City’s Speciﬁc Plan review and decision-making process in addition to the applicable use entitlement process (if any) and any other required approval process under the Carson Municipal Code (except to the extent the proposed Speciﬁc Plan, as approved, provides that it supersedes Carson Zoning Ordinance use entitlement processes or requirements).

In the event the General Plan Amendment does constitute a CEQA “project,” it is exempt from CEQA pursuant to CEQA Guidelines Section 15061(b)(3), because the action does not have the potential for causing a signiﬁcant effect on the environment. “Signiﬁcant effect on the environment” is deﬁned in CEQA Guidelines Section 15382 as “a substantial, or potentially substantial, adverse change in any of the physical conditions within the area affected by the project including land, air, water, minerals, ﬂora, fauna, ambient noise, and objects of historic or aesthetic signiﬁcance.” It can be seen with certainty that there is no possibility that the General Plan Amendment may have a signiﬁcant effect on the environment, because any potential change in any of the physical conditions within the area affected by the General Plan Amendment would be favorable, not adverse, on the environment, in that the General Plan Amendment, by requiring approval of a Speciﬁc Plan prior to any redevelopment of a Reﬁnery Site for a new use following cessation of reﬁnery operations, would ensure the City has discretion to mitigate potential environmental impacts of any such redevelopment, and thereby ensure that any such redevelopment would constitute a discretionary project within the meaning of Public Resources Code Section 21080(a) with respect to approval by the City, and that the City would therefore have authority to conduct environmental review of such redevelopment project pursuant to CEQA.

Also in the event the General Plan Amendment does constitute a CEQA “project,” the General Plan Amendment is categorically exempt from review under CEQA pursuant to State CEQA Guidelines Section 15305, Minor Alterations in Land Use Limitations, because the General Plan Amendment constitutes a minor alteration in land use limitations in areas with an average slope of less than 20%, which does not result in any changes in land use or density. None of the exceptions to the categorical exemption described in CEQA Guidelines Section 15300.2 apply.

V. FISCAL IMPACT
None.

VI. EXHIBITS

1. Resolution 24-112

Attachments
CC GPA Resolution - Reﬁnery 1035558.2.pdf
01007.0005/1035558.2 -1-
RESOLUTION NO. 24-112

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARSON APPROVING CEQA “NO PROJECT”/EXEMPTION FINDINGS AND
ADOPTING GENERAL PLA N AMENDMENT NO. 1-24,

MODIFYING THE LAND USE AND REVITALIZATION ELEMENT OF
THE CARSON 2040 GENERAL PLAN R EGARDING SPECIFIC PLAN

REQUIREMENT FOR ANY REDEVELOPMENT OF EXISTING OIL OR

PETROLEUM REFINERY SITES FOR SUBSEQUENT USE FOLLOWING

CESSATION OF REFINERY OPERATIONS
W
HEREAS, the City of Carson (“City”) adopted its current General Plan, the Carson 2040 General Plan, in April 2023 by Resolution No. 23-062; and W
HEREAS, the General Plan , in the Land Use and Revitalization Element, contains Implementing Policy LUR-P-29, which provides as follows:
“U
ndertake planned development and specific plans for unique projects as a means to achieve high community standards, address neighborhood or significant site - specific issues, ensure compatibility between a number of uses, on large parcels, and when needed as part of a redevelopment or environmental remediation strategy.

S
uch areas that would benefit from a specific plan include the Shell Site and South Bay Pavilion if redeveloped.”; and
WHEREAS, to help ensure the protection of public health, safety and welfare, environmental justice, and environmental quality in the event of an application for redevelopment of the site of an existing oil or petroleum refinery or associated use in Carson (“Refinery Site”) for a new use following cessation of refinery operations, the City has initiated General Plan Amendment No. 1-24 (the “General Plan Amendment”) to modify the text of Implementing Policy LUR-P-29 to expressly require submittal and approval of a Specific Plan prior to or concurrent with approval of development plans for any redevelopment of a Refinery Site for a new use following cessation of refinery operations, and to ma ke a corresponding change to Figure 2-3 (General Plan Land Use Diagram) for internal consistency in the Land Use and Revitalization Element; and
WHEREAS, the Pla nning Commission held a duly noticed public hearing at its meeting of November 12, 2024, to consider a recommendation to the City Council on the General Plan Amendment. The Pla nning Commission considered evidence presented at the public hearing, including public testimony, and a report prepared by City staff, and following the hearing, adopted Planning Commission Resolution No. 24-2 880, recommending to the City Council approval of the General Plan Amendment; and
WHEREAS, on December 3, 2024, the City Council held a duly noticed public hearing to consider the General Plan Amendment. The City Council considered evidence presented at the 01007.0005/1035558.2 -2-
public hearing, including public testimony, and a report prepared by City staff, and having done so, now sees fit to approve the General Plan Amendment on the terms stated herein; and W
HEREAS, all of the legal prerequisites to adoption of this Resolution have occurred.

N
OW, THEREFORE, THE City Council OF THE CITY OF CARSON HEREBY FINDS, DETERMINES, AND RESOLVES AS FOLLOWS:

SECTION 1. The foregoing recitals are true and correct , and the same are incorporated herein by reference as findings of fact.

SECTION 2. The City Council further finds as follows:

A. T
he General Plan Amendment is consistent with the Carson 2040 General Plan , including furthering the following General Plan goals, policies and objectives: Guiding Principle 6, Guiding Principle 7, Land Use and Revitalization Element Guiding Policy LUR-G-13, Land Use and Revitalization Element Guiding Policy LUR -G-14, Land Use and Revitalization Element Implementing Policy LUR-P-29, Community Health and Environmental Justice Element Guiding Policy CHE-G-1, Community Health and Environmental Justice Element Guiding Policy CHE-G-2, Community Health and Environmental Justice Element Guiding Policy CHE-G-4, and Community Health and Environmental Justice Element Implementing Policy CHE-P-8.

B. T
he General Plan Amendment will contribute to the protection of the public health, safety and general welfare in the City and will be of benefit to the public.

C
. The General Plan Amendment retains the internal consistency of the General Plan and is consistent with other adopted plans.

SECTION 3. The City Council find as follows with respect to applicability of CEQA to the General Plan Amendment:

Pu
rsuant to CEQA Guidelines Section 15378, the General Plan Amendment does not constitute a CEQA “project”, because the action constitutes administrative or maintenance activities of the City, such as general policy and procedure making that is excluded from the definition of project under CEQA Guidelines Section 15378(a). The action does not change the permitted uses of any real property, and merely requires an additional layer of City planning review prior to any redevelopment of a Refinery Site for a new use following cessation of refinery operations, such that an applicant would need to prepare a Specific Plan and go through the City’s Specific Plan review and decision -making process in addition to the applicable use entitlement process (if any) and any other required approval process under the Carson Municipal Code (except to the extent the proposed Specific Plan, as approved, provides that it supersedes Carson Zoning Ordinance use entitlement processes or requirements).

I
n the event the General Plan Amendment does constitute a CEQA “project,” it is exempt from CEQA pursuant to CEQA Guidelines Section 15061(b)(3), because the action does not have 01007.0005/1035558.2 -3-
the potential for causing a significant effect on the environment. “Significant effect on the environment” is defined in CEQA Guidelines Section 15382 as “a substantial, or potentially substantial, adverse change in any of the physical conditions within the area affected by the project including land, air, water, minerals, flora, fauna, ambient noise, and objects of historic or aesthetic significance.” It can be
seen with certainty that there is no possibility that the General Plan Amendment may have a significant effect on the environment, because any potential change in any of the physical conditions within the area affected by the General Plan Amendment would be favorable, not adverse, on the environment, in that the General Plan Amendment, by requiring approval of a Specific Plan prior to any redevelopment of a Refinery Site for a new use following cessation of refinery operations, would ensure the City has discretion to mitigate potential environmental impacts of any such redevelopment, and thereby ensure that any such redevelopment would constitute a discretionary project within the meaning of Public Resources Code Section 21080(a) with respect to approval by the City, and that the City would therefore have authority to conduct environmental review of such redevelopment project pursuant to CEQA.

Also in the event t
he General Plan Amendment does constitute a CEQA “project,” the General Plan Amendment is categorically exempt from review under CEQA pursuant to State CEQA Guidelines Section 15305, Minor Alterations in Land Use Limitations, because the General Plan Amendment constitutes a minor alteration in land use limitations in areas with an average slope of less than 20%, which does not result in any changes in land use or density. None of the exceptions to the categorical exemption described in CEQA Guidelines Section 15300.2 apply.

SECTION 4. Based on the foregoing, the City Council adopts General Plan Amendment No. 1-24, consisting of the following:

A. The text of Implementing Policy LUR-P-29 on page 2 -30 of the General Plan Land Use and Revitalization Element is hereby amended as follows (additions shown in in bolded, underlined font; deletions shown in strikethrough font)):
“Undertake planned development and specific plans for unique projects as a means to achieve high community standards, address neighborhood or significant site -specific issues, ensure compatibility between a number of uses, on large parcels, and when needed as part of a redevelopment or environmental remediation strategy. Require submittal and approval of a specific plan prior to, or concurrently with, approval of development plans for any redevelopment of the site of an existing oil or petroleum refinery or associated use for a new use following cessation of refinery operations.

Such areas that would benefit from a specific plan include the Shell Site, the and South Bay Pavilion, the site of the Marathon/Tesoro oil refinery, and the site of the Phillips 66 oil refinery, if redeveloped.”
B. Fig
ure 2 -3 (General Plan Land Use Diagram) on page 2 -10 in the Land Use and Revitalization Element of the General Plan is hereby amended to do the following, as shown in the amended Figure 2-3 attached hereto as Exhibit “A” and incorporated herein by this reference: (i) delineate the area of the City that is located south of 223rd Street and east of Wilmington Avenue 01007.0005/1035558.2 -4-
as one or more “Potential Specific Plan Area(s)” using light blue dots according to the legend in said figure; and (ii) add an associated notation reading as follows: “Potential Specific Plan Area(s).

See LUR-P-29, City Council Resolution No. 24-112.”
F
or the avoidance of doubt, t his amendment to Figure 2 -3 is not intended to create a substantive requirement independent of LUR-P-29 as modified pursuant to subsection (A) of this Section 4, but rather is intended to maintain internal consistency of the General Plan and apprise readers of Figure 2-3 of the potential requirement of a Specific Plan pursuant to LUR -P-29 as modified pursuant to subsection (A) of this Section 4.

SECTION 5. The City Council declares that, should any provision, section, paragraph, sentence, or word of this Resolution be rendered or declared invalid by any final court action in a court of competent jurisdiction or by reason of any preemptive legislation, the remaining provisions, sections, paragraphs, sentences or words of this Resolution as hereby adopted shall remain in full force and effect.

SECTION 6. The City Clerk shall certify to the adoption of this Resolution and enter it into the book of original Resolutions.

SECTION 7. This Resolution shall take effect immediately upon its adoption. [R
EMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]
01007.0005/1035558.2 -5-
PASSED, APPROVED AND ADOPTED THIS 3rd DAY OF DECEMBER 2024.

L ula Davis-Holmes, Mayor
A
PPROVED AS TO FORM:
___
_________________________
Sunny K. Soltani, City Attorney
A
TTEST:
___
__________________________
Dr. Khaleah K. Bradshaw, City Clerk
01007.0005/1035558.2 -6-
EXHIBIT “A”
F
igure 2-3, General Plan Land Use Diagram (Amendment No.1) The Creek at
Dominguez Hills
Dignity Health
Sports Park
Porsche
Experience
California State
University
Dominguez Hills
Goodyear
Blimp
Port
Dominguez
Hills
South Bay
Pavilion
Shell Oil
Del Amo
Blue Line
Station
Marathon
Oil Refinery
Phillips 66
Oil Refinery
Carriage
Crest
Park
Foisia
Park
Dominguez
Park
Veteran's
Park
Carson Park
Calas Park
Dolphin
Park
Mills ParkDel Amo
Park
Anderson
Park
Victoria
Community Park
Stevenson
Park
Hemingway
Park
City
Hall
Carson
High
School
Brandy
Wine
Commercial
(9 acres)
New Park/Open Space
(18 acres)
New Greenbelt
(7acres Park/Open Space)
Union
South Bay
Birch
Brighton/Strathmore
Villages
Monterey
Pines
Sepulveda
and Panama
Imperial
Avalon
405
710
110
91 BISHOP AVE

TORRANCE BLVD

BOLSA ST

SHEARER AVE

SEPULVEDA BLVD
230TH ST

WATSON CENTER DR

LUCERNE ST
234TH ST
228TH ST

DOLORES ST
223RD ST
M
AIN ST
213TH ST

BONITA ST

CARSON ST

PROSPECT AVE

DOMINGUEZ ST
213TH ST

SANTA FE AVE

ALAMEDA ST

FIGUEROA ST

AVALON BLVD

UNIVERSITY DR

CENTRAL AVE

REDONDO BEACH BLVD
M
AIN ST

ALONDRA BLVD

GARDENA BLVD
BROADW
AY
W
ILM

INGTON AVE

REYES AVE

HARCOURT ST

LAS HERMANAS ST

VICTORIA ST

SUSANA ST

ARTESIA BLVD

FIGUEROA ST
157TH ST
169TH ST

WALNUT ST

ALBERTONI ST

VICTORIA ST
BROADW
AY
M
AIN ST 184TH ST
189TH ST GLENN CURTISS ST

ELSMERE DR

TURMONT ST

FIGUEROA ST
BROADW
AY

DEL AMO BLVD

AVALON BLVD

GRACE AVE
233RD ST
231ST ST

LOMITA BLVD

FIGUEROA ST

WILMINGTON AVE
236TH ST

DELORAS DR

LOMITA BLVD

CARRIAGEDALE DR
M
AIN ST
220TH ST
223RD ST

VERA ST

PERRY ST

MARTIN STCARSON ST
220TH ST
214TH ST

DEL AMO BLVD

FRANCISCO ST

LENARDO RD

HELMICK ST

GLADWICK ST

CASHDAN ST

UNIVERSITY DR

CENTRAL AVE

RAINSBURY AVE

KONA DR

SANDHILL AVE
HARM
ON AVE

TAJAUTA AVE

TURMONT ST

MILLMONT ST

ANNALEE AVE

VISTA BELLA WAY

SANTA FE AVE
ANA ST

MARIA ST

HARBOR VIEW
AVE

LAUREL PARK RD
220TH ST

CARSON ST

SALMON AVE

ALAMEDA ST
232ND PL

MEHDEN AVE

BANNING BLVD

BELSHAW AVE

ANNALEE AVE
405
110
D o m
i n g u e z C
hannel
L
o
s
A
n
g
e
le
s
R
iv
e
rCarson
Town
Center
Arbors at
Avalon
Dominguez
Technology Center
Dominguez Hills
Village
District at
Southbay
Source: County of Los Angeles, 2017; City of Carson, 2020; Dyett & Bhatia, 2023 Figure 2-3: General Plan Land Use Diagram
(Amendment No. 1)
Downtown Mixed Use
Mixed Business
Corridor Mixed Use
General Commercial
Flex District
High Density Residential
Medium Density Residential
Low Medium Density Residential Mix
Low Density Residential
Heavy Industrial
Light Industrial
Utilities
Public/Institutional
Park/Open Space
Flex District Housing
Element Site
Commercial Automotive
Overlay District
Downtown Core
Existing Specific Plan Area
Potential Specific Plan Area*
Railroads
Channel
City of Carson
Sphere of Influence
0 ½ 1¼
Miles
C:\GIS\CityofCarsonBasemap\SpecificPlanUpdate.aprx
Map Date:
11/25/2024Potential Specific Plan Area Footnote:
* See LUR-P-29, City Council Resolution No. 24-112

CITY OF CARSON

File #: Version:

Report to Honorable Mayor and City Council
Tuesday, December 3, 2024, 5:00 PM
SPECIAL ORDERS OF THE DAY 23. To: Honorable Mayor and City Council From: Saied Naaseh, Director of Community Development CD Administration Subject: CONSIDER ADOPTION OF INTERIM URGENCY ORDINANCE NO. 24-2416U EXTENDING ATEMPORARY MORATORIUM ON CONSIDERATION OF APPLICATIONS AND APPROVAL AND ISSUANCE OFPERMITS AND ENTITLEMENTS FOR COMMERCIAL OR INDUSTRIAL REDEVELOPMENT AND SUBSEQUENTUSE OF CURRENT OIL REFINERY SITES WITHIN THE CITY OF CARSON FOLLOWING CESSATION OFREFINERY OPERATIONS, AND DECLARING THE URGENCY THEREOF I. SUMMARY
On November 6, 2024, the City Council adopted Ordinance No. 24-2414U with a 5-0 vote, enacting an interim urgency ordinance to establish a 45-day temporary moratorium on acceptance, processing and consideration of applications and approval and issuance of permits and entitlements for commercial or industrial redevelopment and subsequent use of current oil reﬁnery sites within the City of Carson following cessation of reﬁnery operations, and declaring the urgency thereof (Exhibit No. 1). On November 19, 2024, a “10-day report” was issued by the City Council with a 5-0 vote (Exhibit No. 2). The City Council will consider the extension of the moratorium which is subject of this report (Exhibit No. 3). The City Council is required to conduct a noticed public hearing to extend the temporary 45-day moratorium by adopting a new interim urgency ordinance, which would be valid for an additional 10 months and 15 days (until November 6, 2026). A four-ﬁfths vote of the City Council is required for the approval of any extension.

II. RECOMMENDATION
WAIVE further reading and ADOPT Interim Urgency Ordinance No. 24-2416U, “AN INTERIM URGENCY ORDINANCE

OF THE CITY OF CARSON, CALIFORNIA, EXTENDING A TEMPORARY MORATORIUM ON CONSIDERATION OF

APPLICATIONS AND APPROVAL AND ISSUANCE OF PERMITS AND ENTITLEMENTS FOR COMMERCIAL OR

INDUSTRIAL REDEVELOPMENT AND SUBSEQUENT USE OF CURRENT OIL REFINERY SITES WITHIN THE CITY OF CARSON FOLLOWING CESSATION OF REFINERY OPERATIONS, AND DECLARING THE URGENCY THEREOF.” III. ALTERNATIVES
TAKE such other action as the City Council deems appropriate, consistent with the requirements of law.

IV. BACKGROUND
Notices
A public hearing notice was published as required by law. 701 East Carson Street
Temporary 45-Day Moratorium
The current Interim Urgency Ordinance No. 24-2414U will expire on December 21, 2024, if it is not extended by the City Council on or before that date.
10-Day Report
On November 19, 2024, the City Council issued the 10-Day Report on Interim Ordinance No. 24-2414U with a 5-0 vote. Ten days prior to the Ordinance expiring or the City extending the Ordinance (if sooner than the 45 days), the City Council is required to issue a written report "describing the measures taken to alleviate the condition that led to the adoption of the Ordinance." (Gov’t Code §65858(d)).

As detailed in the 10-day report, since the adoption of Interim Urgency Ordinance No. 24-2414U, the City has begun the process of preparing, considering and adopting a General Plan Amendment that would expressly require the submission and approval of a speciﬁc plan prior to, or concurrently with, approval of development plans for any redevelopment of the site of an existing oil or petroleum reﬁnery or associated use for a new use following cessation of reﬁnery operations. The proposed General Plan Amendment was heard by the City’s Planning Commission on November 12, 2024, and immediately following the hearing, the Planning Commission adopted a resolution recommending approval of the proposed General Plan Amendment by the City Council. The City Council is slated to consider the proposed General Plan Amendment for the ﬁrst time on December 3, 2024, and may or may not see ﬁt to take action on that date.

Additional Studies
The City has also begun the process of studying other potential General Plan and/or zoning regulations related to commercial and residential development and subsequent use of the Reﬁnery Sites following cessation of Reﬁnery Operations that will enable the City to adequately and appropriately protect the public peace, health, safety, and welfare, as well as environmental justice and environmental quality in connection with any such redevelopment or subsequent use that may be proposed. However, in light of the complexity of the State and local laws governing this subject matter and the need to analyze such laws, and the need to analyze the land use and zoning regulations of other California cities in which reﬁneries are located to determine what relevant regulations they may have in place, and given the potentially signiﬁcant impact that approval of such a redevelopment or subsequent use under current regulations could have on the welfare of thousands of Carson residents, more time is required to adequately study and make recommendations concerning the potential amendments to City regulations that would alleviate those impacts. Completing the required analyses, as well as developing and implementing the appropriate modiﬁcations, is anticipated to take at least several months. Therefore, the initial 45 days’ effectiveness of the moratorium enacted by Ordinance No. 24-2414U provides an insuﬃcient amount of time to fully study and consider all the above, and any other impacts and relevant proposals.

Therefore, staff recommends the City Council, on an urgency basis, to extend, for 10 months and 15 days pursuant to Government Code Section 65858(a), the temporary prohibition on consideration of applications for and issuance of permits (including but not limited to demolition, grading and building permits, site plan and design review permits/approvals, development and site plan review permits/approvals, zoning compliance review permits/approvals, and major and minor conditional use permits), variances, subdivisions, and other entitlements for use, associated with any proposed commercial or industrial redevelopment or subsequent use of Reﬁnery Sites, as well as any construction activities that may occur pursuant to any such commercial or industrial redevelopment applications or permits, following cessation of Reﬁnery Operations.

V. FISCAL IMPACT
None.

VI. EXHIBITS

1. Interim Urgency Ordinance No. 24-2416U

2. 10 Day Report

3. Interim Urgency Ordinance No. 24-2414U

Attachments
CC Interim Urgency Ordinance No. 24-2416U.pdf
Ten Day Report on Ordinance No. 24-2414U (Reﬁnery Redev. Moratorium_1032800.1).pdf Ordinance No. 24-2414U.pdf
01007.0001/1035058.1 ORDINANCE NO. 24-2416U ORDINANCE NO. 24-2416U

AN INTERIM URGENCY ORDINANCE OF THE CITY OF CARSON ,

CALIFORNIA, EXTENDING A TEMPORARY MORATORIUM ON

CONSIDERATION OF APPLICATIONS AND APPROVAL AND ISSUANCE OF

PERMITS AND ENTITLEMENTS FOR COMMERCIAL OR INDUSTRIAL

REDEVELOPMENT AND SUBSEQUENT USE OF CURRENT OIL REFINERY

SITES WITHIN THE CITY OF CARSON FOLLOWING CESSATION OF

REFINERY OPERATIONS, AND DECLARING THE URGENCY THEREOF
WHEREAS, the City of Carson (“City”), a charter city, has the authority, under its police power, to enact regulations for the public peace, morals, and welfare of the City pursuant to its Charter and California Constitution Article XI, Section 7.

WHEREAS, pursuant to Government Code § 65858 and Charter Sections 313(F) and 316(4) , on November 6, 2024, the City Council adopted Ordinance No. 24-2414U, an interim urgency ordinance to establish a 45 -day temporary moratorium on acceptance, processing and consideration of applications and approval and issuance of permits and entitlements for commercial or industrial redevelopment and subsequent use of current oil refinery sites within th e City of Carson following cessation of refinery operations, and declaring the urgency thereof.

WHEREAS, Government Code 65858(a) authorizes the City Council to extend a moratorium for a period of time not to exceed 10 months and 15 days after its original 45 day term upon notice and a public hearing, upon a four -fifths vote, and upon a finding that there is a current and immediate threat to the public health, safety, or welfare, and that the approval of additional subdivisions, use permits, variances, building permits, or any other applicable entitlement for use which is required in order to comply w ith a zoning ordinance would result in that threat to public health, safety, or welfare.

WHEREAS, pursuant to Government Code § 65858(d), the City Council issued its 10 -day report on November 19, 2024 , outlining what actions have been taken in furtherance of the goals of the moratorium.

WHEREAS, as detailed in the 10-day report, since the adoption of Interim Urgency Ordinance No. 24-2414U, the City has begun the process of preparing, considering and adopting a General Plan Amendment that would expressly require submittal and approval of a specific plan prior to, or concurrently with, approval of development plans for any redevelopment of the site of an existing oil or petroleum refinery or associated use for a new use following cessation of refinery operations. The proposed General Plan Amendment was heard by the City’s Planning Commission on November 12, 2024, and immediately following the hearing, the Planning Commission adopted a resolution recommending approval of the proposed General Plan Amendment by the City Council. The City Council is slated t o consider the proposed General Plan Amendment for the first time on December 3, 2024, and may or may not see fit to take action on that date. The City has also begun the process of studying other potential General Plan and/or zoning regulations related to commercial and residential development and subsequent use of the Refinery Sites following cessation of Refinery Operations that will enable the City to adequately and appropriately protect the public peace, health, safety, and welfare, as well as environmental justice and environmental quality in connection with any such redevelopment or 01007.0001/1035058.1 ORDINANCE NO. 24-2416U subsequent use that may be proposed. 1 However, in light of the complexity of the State and local laws governing this subject matter and the need to analyze such laws, and the need to analyze the land use and zoning regulations of other California cities in which refineries are located to determine what relevant regulations they may have in place, and given the potentially significant impact that approval of such a redevelopment or subsequent use under current regulations could have on the welfare of thousands of Carson residents, more time is required to adequately study and make recommendations concerning the potential amendments to City regulations that would alleviate those impacts. Completing the required analyses, as well as developing and implementing the appropriate modifications, is anticipated to take at least several months. Therefore, the initial 45 days’ effectiveness of the moratorium enacted by Ordinance No. 24-2414U provides an insufficient amount of time to fully study and consider all the above, and any other impacts and relevant proposals.

WHEREAS, the City Council finds that the conditions which necessitated Ordinance No. 24-2414U continue to exist, there remains a current and immediate threat as required by Government Code Section 65858(c), and City staff require more time to conduct the reviews and studies and develop the regulations as directed by Ordinance No. 24-2414U.

WHEREAS, the City Council now desires, on an urgency basis, to extend , for 10 months and 15 days pursuant to Government Code Section 65858(a), the temporary prohibit ion on consideration of applications for and issuance of permits (including but not limited to demolition, grading and building permits, site plan and design review permits/approvals, development and site plan review permits/approvals, zoning compliance review permits/approvals, and major and minor conditional use permits), variances, subdivisions , and other entitlements for use, associated with any proposed commercial or industrial redevelopment or subsequent use of Refinery Sites, as well as any construction activities that may occur pursuant to any such commercial or industrial redevelopment applications or permits, following cessation of Refinery Operations.

WHEREAS, this Ordinance is enacted pursuant to the authority conferred upon the City Council by Government Code Section 65858 and Charter Section 313(F) and 316(4), and may be introduced and adopted at the same meeting and be effective immediately upon adoption if passed by a four-fifths vote of the City Council.

WHEREAS, all legal prerequisites to the adoption of the Interim Urgency Ordinance have occurred.

Prior to adoption of this Ordinance, on December 3, 2024, the City Council held a duly noticed public hearing in accordance with Government Code Section 65858(a).

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CARSON, CALIFORNIA, DOES ORDAIN AS FOLLOWS:

SECTION 1. INCORPORATION OF RECITALS.

The foregoing recitals, and the third through the eighth recitals of Ordinance No. 24 -2414U, are true and correct and are incorporated herein by this reference as findings of fact.

SECTION 2. CEQA.

1 The terms “Refinery Sites” and “Refinery Operations,” as used herein, shall have the same meanings ascribed to them in Ordinance No. 24-2414U.
01007.0001/1035058.1 ORDINANCE NO. 24-2416U Pursuant to CEQA Guidelines Section 15378, this Ordinance does not constitute a CEQA “project”, because: (i) the whole of the action does not have the potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, which are required parts of the definition of “project” under CEQA Guidelines Section 15378(a), and because the action constitutes administrative or maintenance activities of the City, such as general policy and procedure making, which are excluded from the definition of project under CEQA Guidelines Section 15378(a). There is no redevelopment proposal related to the Refinery Sites currently on file or otherwise before the City for review or consideration, and this action merely ensures the City will have sufficient time to study and consider the general plan or zoning proposals referenced above without being obligated to approve any application that may be received in the interim, to ensure that if and when an application for redevelopment of the Refinery Sites for a new use following cessation of Refinery Operations is filed with the City, the City will have the appropriate authority to ensure the protection of public health, safety, welfare and the environment in connection with its review and processing of and decision upon such application(s).

In the event this Ordinance does constitute a CEQA “project,” it is exempt from CEQA pursuant to CEQA Guidelines Section 15061(b)(3), because the action does not have the potential for causing a significant effect on the environment. “Significant effect on the environment” is defined in CEQA Guidelines Section 15382 as “a substantial, or potentially substantial, adverse change in any of the physical conditions within the area affected by the project including land, air, water, minerals, flora, fauna, ambient noise, and objects of historic or aesthetic significance.” (emphasis added). I t can be seen with certainty that there is no possibility that this Ordinance may have a significant effect on the environment, because any potential change in any of the physical conditions within the area affected by the Ordinance would be favorable, not adverse, on the environment, in that the contemplated general plan and zoning proposals that the City is studying, by requiring approval of a cohesive specific plan or master plan for any new use of the Refinery S ites and rezoning Refinery Sites consistent with the General Plan thereby conferring greater discretion on the City to mitigate potential environmental impacts of such new uses, could only increase, and not in any way decrease, the potential that a proposed redevelopment of the Refinery Sites would constitute a discretionary project , within the meaning of Public Resources Code Section 21080(a), with respect to approval by the City, and that the City would therefore have authority to conduct environmental review of such project pursuant to CEQA and thereby take measures protect and improve the environment in connection with redevelopment of the Refinery S ites, whereas absent such regulations, the City may not have such authority over a proposed new by-right heavy industrial use or development of the Refinery Sites, and therefore without this ordinance could be obligated to approved such a new use or development without conducting CEQA review.

SECTION 3. URGENCY FINDINGS.

The City Council hereby finds and declares this Ordinance as an urgency measure necessary for the immediate preservation and protection of the public peace, health, safety and welfare. The facts constituting the urgency, in addition to the findings set forth above, are:

A. There is a current and immediate threat to public peace, safety, health, and welfare posed by the prospect of submittal to the City of an application for commercial or industrial redevelopment or subsequent use of the Refinery S ites following cessation of Refinery Operations under the City’s current General Plan and zoning regulations, as further detailed below. In the event of such an application, absent effectiveness of the moratorium established by Ordinance No. 24-2414U as extended hereby and new or amended land use and zoning regulations resulting from the General Plan and zoning proposals being 01007.0001/1035058.1 ORDINANCE NO. 24-2416U studied, the approval of subdivisions, variances, demolition, grading and building permits, use permits, site plan and design/development and site plan and zoning compliance review permits/approvals, or any other applicable entitlement for use which is required for the City to comply with its Zoning Ordinance would result in that threat to public peace, health, safety and welfare.

B. The current Manufacturing- Heavy zoning designation applicable to the Refinery S ites permits a wide range of industrial and commercial uses by -right, consistent with the General Plan land use classification of Heavy Industrial, and to a lesser extent the General Plan land use classification of Light Industrial in the limited area where it applies south of 223rd St. and east of Wilmington Ave., and there is no requirement (unlike for the Shell Property) of a cohesive master or specific plan to outline long- term growth of the site and ensure compatibility with surrounding properties . Accordingly, in the event of an application for redevelopment of a Refinery S ite for such a by -right use following cessation of Refinery Operations, the City may not have the discretion necessary to ensure the protection of public health, safety and welfare, including but not limited to environmental justice and compatibility with surrounding properties, in connection with the new proposed use or development of the Refinery S ites fo llowing cessation of Refinery Operations. For example, there are residential communities located immediately to the west and north of the Refinery S ites, and under the current regulations, the City would not have sufficient discretion and authority to ensure compatibility of the future use of the Refinery Sites with these residential communities and to ensure the future development and use of the Refinery S ites does not create adverse effects upon their public peace, health, safety and welfare.

C. Similarly, absent new or amended City General Plan and/or zoning regulations, the City may not have authority to conduct CEQA review of a project for redevelopment or subsequent use of a Refinery Site following cessation of Refinery Operations, as detailed in Section 2 above. As a result, such redevelopment could result in unknown and unmitigated significant adverse environmental effects , including but not limited to risks to the health and safety of the individuals who occupy the site s of the future developments and that of the residents of the surrounding communities. It is well- known that oil refineries utilize many industrial processes and toxic materials, and have the potential to severely contaminate the property on which they are located , including potential soil and groundwater contamination from refinery wastewater or other discharges and spills that may occur from or at the refinery. The Refinery Sites have generally been operated as oil refineries for many years – according to the California Energy Commission’s webpage (https://www.energy.ca.gov/data-reports/energy- almanac/californias-petroleum-market/californias-oil-refineries/california-oil), the Tesoro L os Angeles Refinery began its operations (in Wilmington and/or Carson) in 1938 and the Phillips 66 Los Angeles Refinery began its operations (in Wilmington and/or Carson) in 1917, and therefore many of the Refinery Sites are likely contaminated, although environmental testing would be needed prior to approval of any redevelopment in order to determine the extent of any contamination and the necessary remedial or mitigation actions or measures or other necessary restrictions to ensure the redevelopment and subsequent use is safe for the workers and occupants of the sites and those in the surrounding areas .

Ensuring the City has authority to conduct CEQA review over redevelopment projects and subsequent uses for the Refinery S ites will help ensure th at any potential significant environmental impacts of any such proposed redevelopment are adequately studied, understood, made public, and mitigated to the extent feasible (unless a statement of overriding considerations is adopted or the project is exempt from CEQA) in accordance with CEQA prior to approval of any such redevelopment.

D. Redevelopment and subsequent use following cessation of Refinery Operations also implicates potential environmental justice issues. As stated in the General Plan Environmental Justice element, the census tracts located within the City to the west and north of the Refinery S ites (as well as 01007.0001/1035058.1 ORDINANCE NO. 24-2416U the Refinery S ites themselves, although unpopulated) are designated as SB 535 “Disadvantaged Communities,” defined as an area identified by CalEPA or a low -income area that is disproportionately affected by environmental pollution and other hazards that can lead to negative health effects, exposure or environmental degradation. These areas are majority-minority, low-income, and carry heavy pollution burdens. The areas to the south and east of the Refinery Sites are located within the City of Los Angeles.

The General Plan and zoning proposals that are being studied and considered, or that the City intends to consider within a reasonable time, will help address the potential environmental justice issues associated with redevelopment of the Refinery S ites and ensure the protection of environmental justice consistent with the General Plan and applicable law.

E. In the absence of the moratorium established by Ordinance No. 24 -2414U as extended hereby and modified local General Plan and/or zoning regulations applicable to the Refinery S ites that account for the real prospect of redevelopment of same for a new use as discussed above , the risk of adverse impacts to public peace, health, safety, and welfare, environmental justice, and environmental quality resulting from such redevelopment and new use of the Refinery Sites could be realized suddenly and dramatically in the event a by -right application is filed , particularly given the publicly-announced impending closure of the Phillips 66 Los Angeles Refinery and the possibility of an application being submitted prior to actual cessation of Refinery operations . Acting upon an application for a permit, subdivision, variance, or any other applicable entitlement for use for commercial or industrial redevelopment or subsequent use of the Refinery Sites under the City’s current regulations could result in a severe negative impact upon the public peace, health, safety, and welfare in the City.

F. The City is considering and studying, or intends to consider and study within a reasonable time of adoption of this Ordinance, General Plan and zoning proposals applicable to the redevelopment and subsequent use of the Refinery Sites in order to protect and preserve the public health, safety and welfare of its residents , businesses and visitors against the risks and negative impacts associated with same, as discussed above.

G. The City’s City Council and staff need time to study, develop, revise and complete the contemplated General Plan and zoning proposals before they can be adopted and implemented. Among other things, as noted above, additional information and studies are needed for the City to ascertain the precise boundaries and acreage of the Refineries with certainty; such information will help guide the City’s preparation, consideration and action upon the contemplated General Plan and zoning proposals, including by enabling the City to have a better understanding of the potential impacts of a redevelopment or new use of such large oil refinery properties, which aside from the City’s experience with the Shell Property, is unprecedented in the City’s history.

H. This Ordinance is being adopted in order to allow the City time to thoroughly study, develop, revise, and adopt General Plan and zoning regulations related to potential redevelopment and subsequent of the Refinery Sites following cessation of Refinery Operations, to enable the City to adequately and appropriately protect and preserve the health, safety and welfare of the communities and residents of the City.

I. The commencement of new commercial or industrial uses or associated development and construction activities on the Refinery Sites, and the consideration of applications for approvals, permits and entitlements to engage in such new uses or development, may be in conflict with the contemplated General Plan and zoning proposals described above, and therefore there is a need to prohibit such activities temporarily to allow the City sufficient time to complete the necessary studies and take the 01007.0001/1035058.1 ORDINANCE NO. 24-2416U necessary actions to protect the p ublic health, safety and welfare as it relates to redevelopment and subsequent use of the Refinery Sites following cessation of Refinery Operations.

J. As a result of the current and immediate threat that potential commercial or industrial redevelopment of the Refinery Sites poses to the public health, safety and welfare, it is necessary to adopt this ordinance extending the temporary 45-day moratorium established by Ordinance No. 24 -2414U on such redevelopment and subsequent use in the City for an additional 10 months and 15 days, as detailed in Section 5 below.

K. The moratorium is immediately necessary to preserve the public peace, health, safety, and welfare , and should be adopted immediately as an urgency ordinance, to make certain that commercial and industrial redevelopment and subsequent use of the Refinery Sites following cessation of Refinery Operations is prohibited for the effective period of this Ordinance. Imposition of a moratorium will allow the City sufficient time to study and prepare to enact comprehensive General Plan and zoning actions and regulations applicable to redevelopment and subsequent use of the Refinery Sites.

SECTION 4. AUTHORITY AND EFFECT
A. Government Code Section 65858 expressly authorizes the City, in order to protect public safety, health, and welfare, to adopt an Urgency Ordinance prohibiting a use that is in conflict with a contemplated general plan, specific plan, or zoning proposal that the legislative body, planning commission, or the planning department is considering or studying or intends to study within a reasonable time, provided that the urgency measure shall require a four- fifths vote of the legislative body for adoption, and shall be of no further force and effect 45 days from its date of adoption, unless duly extended pursuant to Government Code Section 65858. Government Code Section 65858(a) provides that after notice pursuant to Government Code Section 65090 and public hearing, the legislative body may extend the interim ordinance for 10 months and 15 days, which is the authority for this ordinance.

B. Section 313(F) of the City’s Charter provides that any urgency ordinance declared by the City Council as an urgency measure necessary for the immediate preservation of public peace, health or safety, and containing a statement of its urgency, may be int roduced and adopted at one and the same meeting if passed by a two -thirds affirmative vote of the City Council. Section 316(4) -(5) of the City’s Charter provides that an urgency ordinance adopted in the manner provided for in Section 313(F) of the Charter, and any other such ordinance authorized by state law, shall take effect immediately upon adoption.

SECTION 5. MORATORIUM
Subject to the Exem ption in Section 6 below, during the effective period of this Ordinance, no consideration of any application for any permit (including but not limited to demolition, grading and building permits, site plan and design review permits/approvals, development and site plan review permits/approvals, zoning compliance review permits/approvals, and major and minor conditional use permits; hereinafter, “Permit”), variance, subdivision, or other entitlement for use will be made, and no Permit, variance, subdivision, or other entitlement for use will be approved or issued by the City for any new commercial or industrial use, development or construction activity on any of the Refinery Sites or any portion thereof, and any such new use, development or construction activity is prohibited. The determination as to the precise boundaries of the Refinery S ites within the scope of this Ordinance shall be made by the Community Development Director or designee in his or her sole discretion (including on 01007.0001/1035058.1 ORDINANCE NO. 24-2416U a case-by-case basis if necessary pending a comprehensive determination) , subject to the provisions of this Ordinance.

SECTION 6. EXEMPTION
This Ordinance does not apply to applications, Permits, variances, subdivisions, entitlements, uses, development, or construction activities on the Refinery Sites that relate to continuing Refinery Operations as opposed to any new use of the Refinery Sites following cessation of Refinery Operations.

SECTION 7. STUDY AND DEVELOPMENT
During the effective period of this Ordinance, the City shall study and consider proposed or potential General Plan, specific plan, and/or zoning regulations related to commercial and residential development and subsequent use of the Refinery Sites following cessation of Refinery O perations that will enable the City to adequately and appropriately protect the public peace, health, safety, and welfare, as well as environmental justice and environmental quality in connection with any such re development or subsequent use that may be proposed.

SECTION 8. CONSISTENCY WITH THE GENERAL PLAN The City Council finds that this Ordinance is consistent with the General Plan, including the following goals and policies thereof:

A. LUR-G- 12: Promote adaptive reuse and environmental remediation of brownfield sites.

B. LUR-G- 13: Ensure adequate buffers and transitions between industrial and residential land use as sites are developed or redeveloped.

C LUR-G- 14: Ensure that future industrial development is in harmony to the extent possible with adjacent residential areas.

D. LUR-P- 24: Establish performance and development standard s to allow a wide range of uses as long as those uses will not adversely impact adjacent uses.

F. CHE-G-1: Seek to improve Citywide health outcomes and reduce disparities between census tracts by focusing on prevention and interventions, and by addressing the root causes of health disparities and equities in Carson.

G. CHE-G-2: Reduce air pollution and the incidence of respiratory illness through the land use planning process.

H. CHE-G-4: Protect community health from pollution by toxics and hazardous materials , especially in areas with vulnerable or sensitive populations. 01007.0001/1035058.1 ORDINANCE NO. 24-2416U SECTION 9. SEVERABILITY
The City Council hereby declares that, if any provision, section, subsection, paragraph, sentence, phrase or word of this Ordinance is rendered or declared invalid or unconstitutional by any final action in a court of competent jurisdiction or by reason of any preemptive legislation, then the City Council would have independently adopted the remaining provisions, sections, subsections, paragraphs, sente nces, phrases or words of this Ordinance and as such they shall remain in full force and effect.

SECTION 10. PUBLICATION
The City Clerk shall certify as to the passage and adoption of this Ordinance and shall cause the same to be published in a manner prescribed by law.

SECTION 11. EFFECTIVENESS OF ORDINANCE.

This Interim Urgency Ordinance shall take effect immediately upon its adoption pursuant to Charter Section 316(4) and Government Code Section 65858. This Ordinance shall be of no further force and effect ten (10) months and fifteen (15) days following the date of its adoption unless further extended in accordance with Government Code Section 65858(a). Not later than ten (10) days prior to the expiration of this Interim Urgency Ordinance, the City Council shall issue a written report as required by Government Code Section 65858(d).

[signatures on the following page]
01007.0001/1035058.1 ORDINANCE NO. 24-2416U PASSED, APPROVED and ADOPTED at a regular meeting of the City Council on this 3rd day of December, 2024, by at least a four-fifths affirmative vote of the City Council.

APPROVED AS TO FORM: CITY OF CARSON:

_______________________________ ______________________________ Sunny K. Soltani, City Attorney Lula Davis-Holmes, Mayor

ATTEST:

__________________________________
Dr. Khaleah K. Bradshaw, City Clerk

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.

CITY OF CARSON )

I, Dr. Khaleah K. Bradshaw, City Clerk of the City of Carson, California, hereby attest to and certify that the foregoing ordinance, being Ordinance No. 24-2416U passed on this 3rd day of December, 2024 adopted by the Carson City Council at its meeting held on the 3rd day of December 2024, by the following roll call vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

RECUSED: COUNCIL MEMBERS:

_________________________
Dr. Khaleah K. Bradshaw, City Clerk
01007.0001/1032800.1

10-Day Report on Interim Ordinance No. 24-2414U
November 19, 2024
EXHIBIT “A”

01007.0001/1032800.1
On November 6, 2024 , pursuant to a 5 -0 vote, the City Council of the City of Carson adopted Interim Urgency Ordinance No. 24-2414U (the “Ordinance”), which established a temporary 45- day moratorium on acceptance, processing and consideration of applications and approval and issuance of permits and entitlements for commercial or industrial redevelopment and subsequent use of current oil refinery sites w ithin the City following cessation of refinery operations . The moratorium was enacted pursuant to Section 65858 of the California Government Code, took effect immediately, and will expire on December 21, 2024 unless extended by the Council.

The purpose of the moratorium is to allow the City time to study and consider proposed or potential General Plan, specific plan and/or zoning regulations related to commercial and residential development and subsequent use of the Refinery Sites (as defined in the Ordinance) following cessation of Refinery Operations (as defined in the Ordinance) that will enable the City to adequately and appropriately protect the public peace, health, safety, and welfare, as well as environmental justice and environmental quality in connection with any such redevelopment or subsequent use that may be proposed.

Subdivision (d) of Section 65858 of the Government Code provides that “[t]en days prior to the expiration of that interim ordinance or any extension, the legislative body shall issue a written report describing the measures taken to alleviate the condition which led to the adoption of the ordinance.” This report complies with the requirements of Government Code section 65858(d).

During the period the moratorium has been in place, the City has begun the process of preparing, considering and adopting a General Plan Amendment that would expressly require submittal and approval of a specific plan prior to, or concurrently with, approval of development plans for any redevelopment of the site of an existing oil or petroleum refinery or associated use for a new use following cessation of refinery operations. The proposed General Plan Amendment was heard by the City’s Planning Commission on November 12, 2024, and immediately following the hearing, the Planning Commission adopted a resolution recommending approval of the proposed Gene ral Plan Amendment by the City Council. The City Council is slated to consider the proposed General Plan Amendment for the first time on December 3, 2024, and may or may not see fit to take action on that date.

If adopted as proposed (whether on December 3, 2024 or later) , the General Plan Amendment would add another layer of City planning control, such that an applicant who seeks to redevelop an existing refinery site for a new use following cessation of refinery operations would be required to submit a proposed Specific Plan and go through the City’s Specific Plan review and decision - making process in addition to the applicable use entitlement process (if any) and any other required approval process under the Ca rson Municipal Code (except to the extent the proposed Specific Plan, as approved, provides that it supersedes Carson Zoning Ordinance approval processes or requirements). This requirement would help ensure the City has the necessary authority to conduct CEQA review of such projects, and w ould also help ensure the City has the necessary Planning oversight and decision -making authority to require the redevelopment to be cohesive and compatible both within the site and with surrounding uses, such as (by way of example only) by requiring landscaped buffers and other project design features and other measures to avoid negative impacts on public health, safety, and welfare, including for the people who occupy the site of the redevelopment and the surrounding areas. In addition, the specific plan requirement 01007.0001/1032800.1
would ensure any redevelopment of such sites will be cohesive and compatible with surrounding areas, including existing or proposed residential areas that may be in the travel path of future development of such sites.

The City has also begun the process of studying other potential General Plan and/or zoning regulations related to commercial and residential development and subsequent use of the Refinery Sites following cessation of Refinery Operations that will enable the City to adequately and appropriately protect the public peace, health, safety, and welfare, as well as environmental justice and environmental quality in connection with any such redevelopment or subsequent use that may be proposed. The proposed and pote ntial amendments to the City’s regulations will also seek to further the goals and policies of the General Plan. Such potential new or amended regulations that the City is studying include, without limitation, possible changes to the permitted uses of such properties. However, in light of the complexity of the State and local laws governing this subject matter and the need to analyze such laws, and the need to analyze the land use and zoning regulations of other California cities in which refineries are located to determine what relevant regulations they may have in place , and given the potentially significant impact that approval of such a redevelopment or subsequent use under current regulations could have on the welfare of thousands of Carson residents, the City staff believe that more time is required to adequately study and make recommendations concerning the potential amendments to City regulations that would alleviate those impacts.

Completing the required analyses, as well as developing and implementing the appropriate modifications, is anticipated to take at least several months. Therefore, the initial 45 days ’ effectiveness of the moratorium enacted by Ordinance No. 24-2414U provides an insufficient amount of time to fully study and consider all the above, and any other impacts and relevant proposals.

01007.0001/1027651.4 ORDINANCE NO. 24-2414U ORDINANCE NO. 24-2414U

AN INTERIM URGENCY ORDINANCE OF THE CITY OF CARSON,
CALIFORNIA, TO ESTABLISH A TEMPORARY 45-DAY MORATORIUM ON

ACCEPTANCE, PROCESSING AND CONSIDERATION OF APPLICATIONS

AND APPROVAL AND ISSUANCE OF PERMITS AND ENTITLEMENTS FOR

COMMERCIAL OR INDUSTRIAL REDEVELOPMENT AND SUBSEQUENT

USE OF CURRENT OIL REFINERY SITES WITHIN THE CITY OF CARSON

FOLLOWING CESSATION OF REFINERY OPERATIONS , AND DECLARING

THE URGENCY THEREOF
WHEREAS, the City of Carson (“City”), a charter city, has the authority, under its police power, to enact regulations for the public peace, morals, a nd welfare of the City pursuant to its Charter and California Constitution Article XI, Section 7.

WHEREAS, Government Code 65858 and Charter Sections 313(F) and 316(4) expressly authorize the City Council to adopt an urgency ordinance for the immediate preservation of the public peace, health or safety and to prohibit a use that is in conflict with a contemplated general plan, specific plan, or zoning proposal that the legislative body, planning commission or the planning department is considering or studying or intends to study within a reasonable time.

WHEREAS, there are multiple oil or petroleum refineries and related or supporting facilities or uses located in the City that are currently in operation, including but not limited to: (i) the Phillips 66 crude oil processing plant located on approximately 227 acres of land at 1520 E. Sepulveda Blvd. in the City of Carson, which serves as the front end of Phillips 66’ Los Angeles Refinery and is connected via pipelines with a back -end refinery facility located five miles away in the Wilmington District of the City of Los Angeles; and (ii) the Tesoro petroleum refinery located on approximately 730 acres of land at 2350 East 223rd Street and/or 1801 E. Sepulveda Blvd. in the City of Carson, which is integrated with the Tesoro Los Angeles Refinery – Wilmington Operations located at 2101 East Pacific Coast Highway in the Wilmington District of the City of Los Angeles to collectively comprise the Tesoro Los Angeles Refinery. The current oil or petroleum refineries and oil or petroleum refinery-related or supporting facilities or uses in the City of Carson are located in and throughout (but not necessarily on each and every parcel in) , the area of the City that is south of 223rd St. and east of Wilmington Ave. The properties on which these facilities or uses are located are collectively referred to herein as the “Refinery Sites,” and individually as a “Refinery Site”).1 WHEREAS, from time to time, oil refineries cease operations, as evidenced by the closure of the former Shell oil refinery located on Assessor’s Parcel No. 7318 -018-008 abutting Del Amo Blvd. and Wilmington Ave. in the City, which ceased operation s in 1992 (the “Shell Property”). More recently, on October 16, 2024, Phillips 66 publicly announced that it will cease operations at its Los Angeles Refinery in the fourth quarter of 2025.

WHEREAS, the City is considering or studying, or intends to study within a reasonable time, General Plan , specific plan and/or zoning proposals to adopt new or amended land use and zoning

1 The listed approximate acreage figures are from references contained in the City’s General Plan Community Character and Design Element, and the listed street addresses are from information found via online google searches. Additional information and studi es are needed for the City to ascertain the precise boundaries and acreage of the Refinery Sites with certainty. 01007.0001/1027651.4 ORDINANCE NO. 24-2414U regulations that would be applicable to redevelopment and subsequent use of the Refinery Sites following cessation of oil or petroleum r efinery-related or supporting operations or uses (“Refinery Operations”), to ensure the protection of public peace, health, safety, and welfare, environmental quality, and environmental justice in connection with any such redevelopment.

WHEREAS, the City most recently updated its General Plan in April of 2023 by adopting the Carson 2040 General Plan. The General Plan land use classification for the Refinery Sites is generally Heavy Industrial, although certain limited areas are classified as Light Industrial . The zoning designation for the Refinery Sites pursuant to the Carson Zoning Ordinance is Manufacturing -Heavy. The Manufacturing- Heavy zoning designation permits a wide range of industrial and commercial uses by-right, consistent with the Heavy Industrial General Plan land use classification, and to a lesser extent the Light Industrial General Plan land use classification. Residential uses are prohibited on the Refinery Sites pursuant to the General Plan Heavy Industrial and Light Industrial land use classification s and the Manufacturing-Heavy zoning designation, and therefore are not the subject of this Ordinance. The General Plan accounts for potential redevelopment of the Shell Property by, among other things, providing that it is required to have a cohesive master plan or specific plan to outline long-term growth of the site and ensure compatibility with surrounding properties. However, the General Plan does not similarly account for the potential of redevelopment of the Refinery Sites.

WHEREAS, the City is currently studying a potential amendment to the General Plan to better ensure the protection of public health, safety and welfare in connection with the prospect of redevelopment of the Refinery Sites for a new use, including the possibility of requiring a cohesive specific plan or master plan to guide any redevelopment of the Refinery Sites, similar to what is currently provided for the Shell Property. The City is also studying or considering, or intends to consider within a reasonable time, related Zoning Ordinance /Zoning Code text and/or Zoning Map amendments including potential rezoning of the Refinery Sites consistent with the General Plan as part of the City’s anticipated comprehensive Phase 2 Zoning Code Update, or separately therefrom.

WHEREAS, City staff requires time to study and develop appropriate regulations for redevelopment and subsequent use of the Refinery Sites following cessation of Refinery Operations, consistent with State and federal law.

WHEREAS, pursuant to the foregoing authority, the City Council desires, on an urgency basis, to temporarily prohibit acceptance and processing of applications for and issuance of permits (including but not limited to demolition, grading and building permits, site plan and design review permits/approvals, development and site plan review permits/approvals, zoning compliance review permits/approvals, and major and minor conditional use permits) , variances, subdivisions , and other entitlements for use , associated with any proposed commercial or industrial redevelopment or subsequent use of Refinery Sites, as well as any construction activities that may occur pursuant to any such commercial or industrial redevelopment applications or permits, following cessation of Refinery Operations.

WHEREAS, this Ordinance is enacted pursuant to the authority conferred upon the City Council by Government Code Section 65858 (which applies to charter cities) and Charter Section 313(F) and 316(4), and may be introduced and adopted at the same meeting and be eff ective immediately upon adoption if passed by a four-fifths vote of the City Council WHEREAS, all legal prerequisites to the adoption of the Interim Urgency Ordinance have occurred. 01007.0001/1027651.4 ORDINANCE NO. 24-2414U

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CARSON, CALIFORNIA, DOES ORDAIN AS FOLLOWS:

SECTION 1. INCORPORATION OF RECITALS.

The foregoing recitals above are true and correct, and are incorporated herein by this reference as findings of fact.

SECTION 2. CEQA.

Pursuant to CEQA Guidelines Section 15378, this Ordinance does not constitute a CEQA “project”, because: (i) the whole of the action does not have the potential for resulting in either a direct physical change in the environment, or a reasonably foreseeabl e indirect physical change in the environment, which are required parts of the definition of “project” under CEQA Guidelines Section 15378(a), and because the action constitutes administrative or maintenance activities of the City, such as general policy and procured making, which are excluded from the definition of project under CEQA Guidelines Section 15378(a). There is no redevelopment proposal related to the Refinery Sites currently on file or otherwise before the City for review or consideration, and this action merely ensures the City will have sufficient time to study and consider the general plan or zoning proposals referenced above without being obligated to approve any application that may be received in the interim, to ensure that if and when an application for redevelopment of the Refinery Sites for a new use following cessation of Refinery Operations is filed with the City, the City will have the appropriate authority to ensure the protection of public health, safety, welfare and the environment in connection with its review and processing of and decision upon such application(s).

In the event this Ordinance does constitute a CEQA “project,” it is exempt from CEQA pursuant to CEQA Guidelines Section 15061(b)(3), because the action does not have the potential for causing a significant effect on the environment. “Significant effect on the environment” is defined in CEQA Guidelines Section 15382 as “a substantial, or potentially substantial, adverse change in any of the physical conditions within the area affected by the project including land, air, water, minerals, flora, fauna, ambient noise, and objects of historic or aesthetic significance.” (emphasis added). I t can be seen with certainty that there is no possibility that this Ordinance may have a significant effect on the environment, because any potential change in any of the physical conditions within the area affected by the Ordinance would be favorable, not adverse, on the environment, in that the contemplated general plan and zoning proposals that the City is studying, by requiring approval of a cohesive specific plan or master plan for any new use of the Refinery Sites and rezoning Refinery Sites consistent with the General Plan thereby conferring greater discretion on the City to mitigate potential environmental impacts of such new uses, could only increase, and not in any way decrease, the potential that a proposed redevelopment of the Refinery Sites would constitute a discretionary project , within the meaning of Public Resources Code Section 21080(a), with respect to approval by the City, and that the City would therefore have authority to conduct environmental review of such project pursuant to CEQA and thereby take measures protect and improve the environment in connection with redevelopment of the Refinery Sites, whereas absent such regulations, the City may not have such authority over a proposed new by-right heavy industrial use or development of the Refinery Sites, and therefore without this ordinance could be obligated to approved such a new use or development without conducting CEQA review.

SECTION 3. URGENCY FINDINGS.
01007.0001/1027651.4 ORDINANCE NO. 24-2414U The City Council hereby finds and declares this Ordinance as an urgency measure necessary for the immediate preservation and protection of the public peace, health, safety and welfare. The facts constituting the urgency, in addition to the findings set forth above, are:

A. There is a current and immediate threat to public peace, safety, health, and welfare posed by the prospect of submittal to the City of an application for commercial or industrial redevelopment or subsequent use of the Refinery Sites following cessation of Refinery Operations under the City’s current General Plan and zoning regulations, as further detailed below. In the event of such an application, absent this Ordinance and new or amended land use and zoning regulations resulting from the General Plan and zoning proposals being studied, the approval of subdivisions, variances, demolition, grading and building permits, use permits, site plan and design/development and site plan and zoning complian ce review permits/approvals, or any other applicable entitlement for use which is required for the City to comply with its Zoning Ordinance would result in that threat to public peace, health, safety and welfare.

B. The current Manufacturing -Heavy zoning designation applicable to the Refinery Sites permits a wide range of industrial and commercial uses by -right, consistent with the General Plan land use classification of Heavy Industrial, and to a lesser extent the General Plan land use classification of Light Industrial in the limited area where it applies south of 223rd St. and east of Wilmington Ave., and there is no requirement (unlike for the Shell Property) of a cohesive master or specific plan to outline long -term growth of the site and ensure compatibility with surrounding properties . Accordingly, in the event of an application for redevelopment of a Refinery Site for such a by -right use following cessation of Refinery Operations, the City may not have the discretion necessary to ensure the protection of public health, safety and welfare, including but not limited to environmental justice and compatibility with surrounding properties, in connection with the new proposed use or development of the Refinery S ites fo llowing cessation of Refinery Operations. For example, there are residential communities located immediately to the west and north of the Refinery Sites, and under the current regulations, the City would not have sufficient discretion and authority to ensure compatibility of the future use of the Refinery Sites with these residential communities and to ensure the future development and use of the Refinery Sites does not create adverse effects upon their public peace, health, safety and welfare.

C. Similarly, absent new or amended City General Plan and/or zoning regulations, the City may not have authority to conduct CEQA review of a project for redevelopment or subsequent use of a Refinery Site following cessation of Refinery Operations, as detailed in Section 2 above. As a result, such redevelopment could result in unknown and unmitigated significant adverse environmental effects, including but not limited to risks to the health and safety of the individuals who occupy the site s of the future developments and that of the residents of the surrounding communities. It is well-known that oil refineries utilize many industrial processes and toxic materials, and have the potential to severely contaminate the property on which they are located , including potential soil and groundwater contamination from refinery wastewater or other discharges and spills that may occur from or at the refinery. The Refinery Sites have generally been operated as oil refineries for many years – according to the California Energy Commission’s webpage (https://www.energy.ca.gov/data-reports/energy- almanac/californias-petroleum-market/californias-oil-refineries/california-oil), the Tesoro Los Angeles Refinery began its operations (in Wilmington and/or Carson) in 1938 and the Phillips 66 Los Angeles Refinery began its operations (in Wilmington and/or Carson) in 1917, and therefore many of the Refinery Sites are likely contaminated, although environmental testing would be needed prior to approval of any redevelopment in order to determine the extent of any contamination and the necessary remedial or mitigation actions or measures or other necessary restrictions to ensure the redevelopment and subsequent use is safe for the workers and occupants of the sites and those in the surrounding areas . 01007.0001/1027651.4 ORDINANCE NO. 24-2414U Ensuring the City has authority to conduct CEQA review over redevelopment projects and subsequent uses for the Refinery Sites will help ensure that any potential significant environmental impacts of any such proposed redevelopment are adequately studied, understood, made public, and mitigated to the extent feasible (unless a statement of overriding considerations is adopted or the project is exempt from CEQA) in accordance with CEQA prior to approval of any such redevelopment.

D. Redevelopment and subsequent use following cessation of Refinery Operations also implicates potential environmental justice issues. As stated in the General Plan Environmental Justice element, the census tracts located within the City to the west and north of the Refinery Sites (as well as the Refinery Sites themselves, although unpopulated) are designated as SB 535 “Disadvantaged Communities,” defined as an area identified by CalEPA or a low -income area that is disproportionately affected by environmental pollution and other hazards that can lead to negative health effects, exposure or environmental degradation. These areas are majority-minority, low-income, and carry heavy pollution burdens. The areas to the south and east of the Refinery Sites are located within the City of Los Angeles.

The General Plan and zoning proposals that are being studied and considered, or that the City intends to consider within a reasonable time, will help address the potential environmental justice issues associated with redevelopment of the Refinery Sites and ensure the protection of environmental justice consistent with the General Plan and applicable law.

E. In the absence of modified local General Plan and/or zoning regulations applicable to the Refinery Sites that account for the real prospect of redevelopment of same for a new use as discussed above, the risk of adverse impacts to public peace, health, safety, and welfare, environmental justice, and environmental quality resulting from such redevelopment and new use of the Refinery Sites could be realized suddenly and dramatically in the event a by -right application is filed , particularly given the publicly-announced impending closure of the Phillips 66 Los Angeles Refinery and the possibility of an application being submitted prior to actual cessation of Refinery operations. Processing and acting upon an application for a permit, subdivision, variance, or any other applicable entitlement for use for commercial or industrial redevelopment or subsequent use of the Refinery Sites under the City’s current regulations could result in a severe negative impact upon the public peace, health, safety, and welfare in the City.

F. The City is considering and studying, or intends to consider and study within a reasonable time of adoption of this Ordinance, General Plan and zoning proposals applicable to the redevelopment and subsequent use of the Refinery Sites in order to protect and preserve the public health, safety and welfare of its residents, businesses and visitors against the risks and negative impacts associated with same, as discussed above.

H. This Ordinance is being adopted in order to allow the City time to thoroughly study, develop, revise, and adopt General Plan and zoning regulations related to potential redevelopment and 01007.0001/1027651.4 ORDINANCE NO. 24-2414U subsequent of the Refinery Sites following cessation of Refinery Operations, to enable the City to adequately and appropriately protect and preserve the health, safety and welfare of the communities and residents of the City.

I. The commencement of new commercial or industrial uses or associated development and construction activities o n the Refinery Sites, and the consideration and processing of applications for approvals, permits and entitlements to engage in such new uses or development, may be in conflict with the contemplated General Plan and zoning proposals described above, and therefore there is a need to prohibit such activities temporarily to allow the City sufficient time to complete the necessary studies and take the necessary actions to protect the public health, safety and welfare as it relates to redevelopment and subsequent use of the Refinery Sites following cessation of Refinery Operations.

J. As a result of the current and immediate threat that potential commercial or industrial redevelopment of the Refinery Sites poses to the public health, safety and welfare, it is necessary to adopt a temporary, forty-five (45) day moratorium on such redevelopment and subsequent use in the City, as detailed in Section 5 below.

SECTION 4. AUTHORITY AND EFFECT
A. Government Code Section 65858 expressly authorizes the City, in order to protect public safety, health, and welfare, to adopt an Urgency Ordinance prohibiting a use that is in conflict with a contemplated general plan, specific plan, or zoning proposal that the legislative body, planning commission, or the planning department is considering or studying or intends to study within a reasonable time, provided that the urgency measure shall require a four -fifths vote of the legislative body for adoption, and shall be of no further force and effect 45 days from its date of adoption, unless duly extended for an additional 10 months and 15 days.

SECTION 5. MORATORIUM
Subject to the Ex emption in Section 6 below, during the effective period of this O rdinance, no application for any permit (including but not limited to applications for demolition, grading and building permits, site plan and design review permits/approvals, development and site plan review permits/approvals, zoning compliance review permits/approvals, and major and minor conditional use permits), variance, subdivision, or other entitlement for use will be accepted or processed, no 01007.0001/1027651.4 ORDINANCE NO. 24-2414U consideration of any application for any permit (including but not limited to demolition, grading and building permits, site plan and design review permits/approvals, development and site plan review permits/approvals, zoning compliance review permits/approvals, and major and minor conditional use permits), variance, subdivision, or entitlement for use will be made, and no permit (including but not limited to demolition, grading and building permits, site plan and design review permits/approvals, development and site plan review permits/approvals, zoning compliance review permits/approvals, and major and minor conditional use permits ), variance, subdivision , or other entitlement for use will be approved or issued by the City for any new commercial or industrial use, development or construction on any of the Refinery Sites or any portion thereof, and any such new use , development or construction activity is prohibited. The determination as to the precise boundaries of the Refinery Sites within the scope of this Ordinance shall be made by the Community Development Director or designee in his or her sole discretion (including on a case-by-case basis if necessary pending a comprehensive determination) , subject to the provisions of this Ordinance.

SECTION 6. EXEMPTION
This Ordinance does not apply to applications, permits, approvals, variances, subdivisions, entitlements for use, uses, or construction activities on the Refinery Sites that relate to continuing Refinery Operations.

SECTION 7. STUDY AND DEVELOPMENT
During the effective period of this Ordinance, the City shall study and consider proposed or potential General Plan, specific plan and/or zoning regulations related to commercial and residential development and subsequent use of the Refinery Sites following cessation of Refinery Operations that will enable the City to adequately and appropriately protect the public peace, health, safety, and welfare, as well as environmental justice and environmental quality in connection with any such redevelopment or subsequent use that may be proposed.

SECTION 8. CONSISTENCY WITH THE GENERAL PLAN The City Council finds that this Ordinance is consistent with the General Plan, including the following goals and policies thereof:

A. LUR-G-12: Promote adaptive reuse and environmental remediation of brownfield sites.

B. LUR-G-13: Ensure adequate buffers and transitions between industrial and residential land use as sites are developed or redeveloped.

C LUR-G-14: Ensure that future industrial development is in harmony to the extent possible with adjacent residential areas.

D. LUR-P-24: Establish performance and development standard s to allow a wide range of uses as long as those uses will not adversely impact adjacent uses.

E. LUR-P-29: Undertake planned development and specific plans for unique projects as a means to achieve high community standards, address neighborhood or significant site -specific issues, ensure compatibility between a number of uses, on large parcels, and wh en needed as part of a redevelopment or environmental remediation strategy.
01007.0001/1027651.4 ORDINANCE NO. 24-2414U F. CHE-G-1: Seek to improve Citywide health outcomes and reduce disparities between census tracts by focusing on prevention and interventions, and by addressing the root causes of health disparities and equities in Carson.

G. CHE-G-2: Reduce air pollution and the incidence of respiratory illness through the land use planning process.

H. CHE-G-4: Protect community health from pollution by toxics and hazardous materials , especially in areas with vulnerable or sensitive populations.

SECTION 9. SEVERABILITY
The City Council hereby declares that, if any provision, section, subsection, paragraph, sentence, phrase or word of this Ordinance is rendered or declared invalid or unconstitutional by any final action in a court of competent jurisdiction or by reason of any preemptive legislation, then the City Council would have independently adopted the remaining provisions, sections, subsections, paragraphs, sente nces, phrases or words of this Ordinance and as such they shall remain in full force and effect.

SECTION 10. PUBLICATION
The City Clerk shall certify as to the passage and adoption of this Ordinance and shall cause the same to be published in a manner prescribed by law.

SECTION 11. EFFECTIVENESS OF ORDINANCE.

This Interim Urgency Ordinance shall take effect immediately upon its adoption pursuant to Charter Section 316(4) and Government Code Section 65858. This Ordinance shall be of no further force and effect forty -five (45) days following the date of its adoption unless extended in accordance with Government Code Section 65858 (a). Not later than ten (10) days p rior to the expiration of this Interim Urgency Ordinance, the City Council shall issue a written report as required by Government Code Section 65858(d).

[signatures on the following page]
01007.0001/1027651.4 ORDINANCE NO. 24-2414U PASSED, APPROVED and ADOPTED at a regular meeting of the City Council on this 6th day of November, 2024, by at least a four-fifths affirmative vote of the City Council.

APPROVED AS TO FORM: CITY OF CARSON:

_______________________________ ______________________________ Sunny K. Soltani, City Attorney Lula Davis-Holmes, Mayor

ATTEST:

__________________________________
Dr. Khaleah K. Bradshaw, City Clerk

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.

CITY OF CARSON )

I, Dr. Khaleah K. Bradshaw, City Clerk of the City of Carson, California, hereby attest to and certify that the foregoing ordinance, being Ordinance No. 24-2414U passed on this 6th day of November , 2024 adopted by the Carson City Council at its meeting held on the 6th day of November 2024, by the following roll call vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

RECUSED: COUNCIL MEMBERS:

_________________________
Dr. Khaleah K. Bradshaw, City Clerk

CITY OF CARSON

File #: Version:

Report to Honorable Mayor and City Council
Tuesday, December 3, 2024, 5:00 PM
SPECIAL ORDERS OF THE DAY 24. To: Honorable Mayor and City Council From: Saied Naaseh, Director of Community Development CD Administration Subject: CONSIDER FIRST READING OF ORDINANCE NO. 24-2417, ENTITLED, AN ORDINANCE OFTHE CITY COUNCIL OF CITY OF CARSON, CALIFORNIA APPROVING AN ECONOMIC DEVELOPMENTBENEFIT AGREEMENT NUMBER TWO WITH SOUTH BAY CARSON, LLC. (CITY COUNCIL) I. SUMMARY
On February 15, 2022, City and Owner entered into that certain Economic Development Beneﬁt Agreement (“Beneﬁt Agreement Number One”) based on the City’s initial desire to have a Costco developed and operated on the property and providing for City to make certain payments to the owner as compensation for the development and operations of the Costco and for the owner otherwise satisfying its obligations under Beneﬁt Agreement Number One. Beneﬁt Agreement Number One remains in full force and effect.

The owner now wishes to pursue alternative opportunities for a Retail Facility or Facilities at the property to be developed and operated on the property. Retail Facility or Facilities is deﬁned as one or more retail facilities located on the property (including, but not limited to, (i) a Sam’s Club, Fred Meyer, Meijer, or BJ Wholesale Club, or (ii) any similar retail facility (or facilities) that are approved in writing by the City Manager based on direction from the City Council) comprising a retail and/or grocery store of at least 100,000 square feet of retail space. A Retail Facility or Facilities shall further exclude any discount stores (other than Sam’s Club, Fred Meyer, Meijer, or BJ Wholesale Club which, for the avoidance of doubt, are not discount stores), including, but not limited to, by way of example, the following retailers: 99 (cents) Only, Dollar Tree, Dollar General, Family Dollar, Walmart, and Big Lots.

Under the Agreement, South Bay Carson, LLC is proposed to receive 65% of each dollar of sales tax revenues received by the City for the ﬁrst 5 years. From year 6 until no later than 20 years from the commencement of the term of the Agreement, the subsidy to Sywest will be lowered to 55% of each dollar of sales tax revenue received by the City from the Property. The ﬁrst $100,000 of sales tax revenue each year from retail sales on the Property goes directly to the City and is not subject to the sharing formula. The subsidy is capped at $18,000,000 maximum. As such, the Agreement terminates either in 20 years or when the $18,000,000 cap of sales tax rebate is reached.

The proposed Ordinance approves an Economic Development Beneﬁt Agreement with the owner of property at 20151 South Main Street under which the City will rebate a portion of sales tax revenues generated from the property to foster development of “Retail Facility” or “Retail Facilities” at the property.

II. RECOMMENDATION
TAKE the following actions:
701 East Carson Street

1. OPEN the public hearing; TAKE public testimony and accept any written and/or oral communications; AND CLOSE the public hearing; AND

2. WAIVE further reading and Introduce for ﬁrst reaching Ordinance No. 24-2417, entitled “AN ORDINANCE OF

THE CITY COUNCIL OF CITY OF CARSON, CALIFORNIA APPROVING AN ECONOMIC DEVELOPMENT BENEFIT AGREEMENT NUMBER TWO WITH SOUTH BAY CARSON, LLC.”
III. ALTERNATIVES
TAKE any other action the City Council deems appropriate.

IV. BACKGROUND
South Bay Carson, LLC (Sywest) owns property at 20151 South Main Street (Property), which is located within a former Carson Redevelopment Agency Project Area. Despite diligent efforts by the Carson Redevelopment Agency Board and staff to foster development of a beneﬁcial end use for the Property, it has remained vacant for decades.

In fact, the Property is currently being used as a temporary facility for the storage of vehicles as no other viable uses have been feasible.

Many projects proposed at the Property failed largely because the Property was part of the former Southwest Conservation Landﬁll, which accepted wastes similar to other former landﬁlls in the immediate area that now have documented soil and groundwater contamination from metals and volatile and semi-volatile organics; therefore, the Property likely has similar contamination. The history of the Property and efforts to redevelop it makes it evident that development there for retail uses may not be economically feasible without some form of assistance from the City.

The City’s Charter includes a comprehensive set of economic development incentives and programs to promote development given the unique environmental constraints in the City, to create jobs and to preserve the sound ﬁscal basis of the City. The City has broad economic development powers to enact measures, to enter into agreements, and to loan, grant, fund, or ﬁnance projects which will provide public beneﬁt and protect the public health, safety and welfare of the community, which programs may be carried out singly or in combination in a manner to promote the economic development objectives set forth in Section 206 of the Charter, which speciﬁcally allows for the use of “Tax and Assistance Agreements” for sales taxes, transient occupancy taxes, utility taxes or other taxes to be shared with the generator, and rebates or waivers of franchise fees, business license fees, development impact fees, or other revenue sources.

Additionally, Government Code Section 53803 authorizes the City to provide ﬁnancial incentives to businesses to promote economic activity. Consistent with Section 53083 and City Charter Section 206, City staff and the City Attorney have negotiated an Economic Development Beneﬁt Agreement (Agreement) with Sywest to promote the purposes of Section 206 of the Charter and via the sharing of proposed sales tax revenues generated from the Property. With the beneﬁts provided in the Agreement, Sywest is negotiating with Retail Facility” or “Retail Facilities to locate sales tax generating facilities at the Property.

The purpose of the economic development incentive is to reduce the “feasibility gap” between the development on behalf of retail tenants, which typically pay lower rent to the property owner but provide other tangible beneﬁts to the Carson community, versus industrial tenants who would pay a much higher rent to the property owner.

Industrial development could potential be feasible on the property without any ﬁnancial incentive from the City at all. The rebate to the property owner helps to equalize the value to the owner of the more desirable retail and make it economically feasible.

The Agreement contains additional beneﬁts to the City, including an obligation by Sywest to include in all contracts (including leases) with other entities establishing and operating retail facilities to require that each such entity use reasonable efforts to recruit and hire local City residents for full- and part-time employment opportunities.

Consistent with Government Code Section 53083(a), a notice of public hearing describing the proposed economic beneﬁts of the Agreement has been published by the City and a copy the notice and draft Agreement have been and will remain posted on the City’s website throughout the term of the Agreement.

In accordance with the California Environmental Quality Act (“CEQA”), the State CEQA Guidelines (California Code of Regulations, Title 14, §§ 15000 et seq.), and any applicable local CEQA policies and procedures, the Agreement is not a “project” for purposes of CEQA, as that term is deﬁned by the CEQA Guidelines section 15378, because the Agreement merely contemplates a government funding mechanism or other government ﬁscal activity, which does not involve any commitment to any speciﬁc project which may result in potentially signiﬁcant physical impact on the environment, pursuant to Guidelines section 15378(b)(4), or alternatively, it constitutes an organizational or administrative activity that will not result in a direct or indirect physical change in the environment pursuant to Guidelines section 15378(b)(5).

V. FISCAL IMPACT
The City of Carson is projected to receive approximately $24,000,000 in sales tax revenue over the life of the Agreement after computing the maximum subsidy to be paid of up to $18,000,000 by way of sales tax rebates.

VI. EXHIBITS

1. Draft Ordinance No 24-2417
Attachment 1 – Economic Development Beneﬁt Agreement

Attachments
CC SYWEST ORDINANCE NO. 24-2417.pdf
1 ORDINANCE NO. 24 -2417

AN ORDINANCE OF THE CITY COUNCIL OF CITY OF CARSON,

CALIFORNIA APPROVING AN ECONOMIC BENEFIT AGREEMENT

NUMBER TWO WITH SOUTH BAY CARSON, LLC
WHEREAS, the City of Carson Charter at Section 206 authorizes a comprehensive set of economic development incentives and programs to promote development given the unique environmental constraints in the City of Carson, to create jobs and to preserve the sound fiscal basis of the City;
WHEREAS, the City’s Charter powers include the authority to enter into agreements, and to loan, grant, fund, or finance projects which will provide public benefit and protect the public health, safety and welfare of the community, which programs may be carried out singly or in combination in a manner to promote the economic development objectives set forth in Section 206 of the Charter, which specifically allows for the use of “Tax and Assistance Agreements” for sales or other taxes to be shared with the generator;
WHEREAS, additionally, Government Code Section 53803 authorizes the City to provide financial incentives to businesses to promote economic activity; WHEREAS, South Bay Carson, LLC (Sywest) owns property at 20151 South Main Street (Property), which is located within a former Carson Redevelopment Agency Project Area; WHEREAS, despite diligent efforts by the Carson Redevelopment Agency Board and staff to foster development of a beneficial end use for the Property, it has remained vacant for decades. In fact, the Property is currently being used as a temporary facility for the storage of vehicles as no other viable uses have been feasible;
WHEREAS, many projects proposed at the Property failed due to the fact that the Property was part of the former Southwest Conservation Landfill, which accepted wastes similar to other former landfills in the immediate area that now have documented soil and groundwater contamination from metals and volatile and semi- volatile organics; therefore, the Property likely has similar contamination;
WHEREAS, given the history of the Property and efforts to redevelop it, the prospect of development there for retail uses is unlikely as it is not economically feasible without some form of assistance from the City;
WHEREAS, in accordance with the City’s Charter powers and Government Code Section 53803, the City Council wishes to enter into an Economic Development Benefit Agreement Number Two (Agreement) with Sywest, a copy of which is attached hereto as Exhibit “A”, to rebate a portion of sales taxes generated from the Property in an effort to foster development of retail facilities thereon;
WHEREAS, the Agreement specifically provides that the first $100,000 of sales tax revenue each year from retail sales on the Property goes directly to the City and is not subject to the sharing formula. Thereafter, Sywest is to receive 65% of each dollar of sales tax revenues received by the City for the first 5 years from retail sales at the Property, and thereafter, from year 2 6 until no later than 20 years from the commencement of the term of the Agreement, the subsidy to Sywest will be lowered to 55% of each dollar of sales tax revenue received by the City from the Property, which subsidy is capped at $18,000,000;
WHEREAS, On February 15, 2022, the City’s Economic Development Commission considered the Economic Development Benefit Agreement Number One (“Original Agreement”) for the development by Sywest of similar rail facilities, approved by the City Council on that same date, and unanimously found to be appropriate to recommend to the City Council for approval , and the current Agreement contains the same economic terms as the Original Agreement; WHEREAS, in accordance with the California Environmental Quality Act (“CEQA”), the State CEQA Guidelines (California Code of Regulations, Title 14, §§ 15000 et seq.), and any applicable local CEQA policies and procedures, the Agreement is not a “project” for purposes of CEQA, as that term is defined by the CEQA Guidelines section 153 78, because the Agreement merely contemplates a government funding mechanism or other government fiscal activity, which does not involve any commitment to any specific project which may result in potentially significant physical impact on the environment, pursuant to Guidelines section 15378(b)(4), or alternatively, it constitutes an organizational or administrative activity that will not result in a direct or indirect physical change in the environment pursuant to Guidelines section 15378(b)(5); and WHEREAS, on December 3, 2024, the City Council held a public hearing, duly noticed pursuant to Government Code Section 53803, and published on the City’s website, including the information required by Section 53083, considered all written documentation and testimony provided at the hearing and closed the public hearing regarding the adoption of this Ordinance and approval of the Agreement.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CARSON, CALIFORNIA DOES ORDAIN AS FOLLOWS:

SECTION 1. RECITALS. The foregoing Recitals are true and correct and are incorporated herein as findings of fact.

SECTION 2. PUBLIC BENEFITS. The City Council finds that the Agreement serves valid public purposes and is consistent with the authority set forth in City of Carson Charter Section 206 and Government Code Section 53083 insofar as the Agreement fosters the development of a severely blighted, undeveloped and likely contaminated site. The Agreement further serves a public purpose by including an obligation that Sywest include in all contracts (including leases) with other entities establishing and operating retail facilities at the Property to require that each such entity use reasonable efforts to recruit and hire local City residents for full and part time employment opportunities.

SECTION 3. APPROVAL. In light of the strong public benefits served by the Agreement, the City Council hereby approves the Agreement in the form presented at the public hearing with this Ordinance, subject to approval as to the form of the final Agreement by the City Attorney.

SECTION 4. SEVERABILITY. If any section, subsection, sentence, clause, phrase, or portion of this ordinance is, for any reason, held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of 3 the remaining portions of this ordinance. The City Council hereby declares that it would have adopted this ordinance and each section, subsection, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions thereof may be declared invalid or unconstitutional.

SECTION 5. EFFECTIVE DATE. This ordinance shall be in full force and effect thirty (30) days after its adoption.

SECTION 6. CERTIFICATION. The City Clerk shall certify to the adoption of this ordinance and shall cause the same to be posted and codified in the manner required by law.

PASSED, APPROVED and ADOPTED at a regular meeting of the City Council on this 3rd day of December 2024.

Mayor Lula Davis-Holmes
ATTEST:

Dr. Khaleah K. Bradshaw, City Clerk
APPROVED AS TO FORM:

Sunny K. Soltani, City Attorney

4 EXHIBIT “A”

ECONOMIC BENEFIT AGREEMENT NUMBER TWO

[See following pages]

01007.0591/726278.7 1

ECONOMIC DEVELOPMENT BENEFIT AGREEMENT NUMBER TWO
ARTICLE 1 PARTIES AND EFFECTIVE DATE.

1.1. Parties. This Economic Development Benefit Agreement Number Two (“Agreement”) is entered into on ______________, 2024 by and between the CITY OF CARSON, a California municipal corporation (“City”), and SOUTHBAY- CARSON, LLC, a California limited liability company (“Owner”). City and Owner are sometimes referred to individually as a “Party” and together as “Parties” herein.

1.2. Effective Date. This Agreement is dated for reference purposes only.

This Agreement will not become effective until the date (“Effective Date”) on which both of the following are true: (i) this Agreement has been approved by the City Council following all legally required notices and hearings; and (ii) this Agreement has been executed by the appropriate authorities of City and Owner.

ARTICLE 2 RECITALS.

2.1. Owner owns that certain real property located at 20151 South Main Street, Carson, California, as such property is specifically described in Exhibit A attached hereto and incorporated herein (“Property”).

2.2. On November 6, 2018, City’s voters approved a new Charter for the City which included a comprehensive set of economic development incentives and programs to promote the development of the City of Carson given the unique environmental constraints, to create jobs and to preserve the sound fiscal basis of City. City has determined that under the Charter, City has broad economic development powers to enact measures, to enter into agreements, and to loan, grant, fund, or finance projects which will provide public benefit and protect the public health, safety and welfare of the community, which programs may be carried out singly or in combination in a manner to promote the economic development objectives set forth in Section 206 of the Charter, which specifically allows for the use of “Tax and Assistance Agreements” for sales taxes, transient occupancy taxes, utility taxes or other taxes to be shared with the generator, and rebates or waivers of franchise fees, business license fees, development impact fees, or other revenue sources.

2.3. The incentives provided in this Agreement are intended by City to be consistent with and promote the purposes of Section 206 of the Charter via the sharing of Local Sales Tax Revenues (as defined below) for the purpose of encouraging Owner to attract and retain Retail Facilities (as defined below) within the City. This Agreement constitutes a “Tax and Assistance Agreement” and Owner shall be treated as a “generator” for purposes of Section 206 of the Charter.

2.4. Section 206 of the Carson Charter is consistent with Government Code section 53083 authorizing local agencies to provide economic development subsidies where the local agency provides written notice through its website concerning the economic development subsidy and the information required under subsection (a) therein.

2.5. City has determined that entering into this Agreement will provide significant ongoing public benefits to City and promote the public health, safety and welfare of the community by facilitating the opportunity to attract and retain Retail Facility(ies) within the City, thereby generating additional sales tax revenue and direct

01007.0591/726278.7 2
and indirect new jobs for the City and area residents, and assisting City in maintaining a jobs/housing balance within the City, thereby creating social, economic and environmental benefits. The City has further determined that this Agreement will allow for the redevelopment of an organic landfill site, which otherwise would not be developable as a Retail Facility development. Specifically, the Property is identified as having been the former Southwest Conservation Landfill, which accepted wastes similar to other former landfills in the immediate area that now have documented soil and groundwater contamination from metals and volatile and semi -volatile organics; therefore, the Property likely has similar contamination. The total refuse disposed on the Property was approximately 1 million cubic yards, and 9 million gallons of liquid wastes were disposed over 22 acres to a maximum depth of 50 feet bgs. There is a methane gas monitoring system on the Property and has been in operation since the late 1970s or very early 1980s, prior to the drive-in operation. Accordingly, City has also determined that its entry into this Agreement serves a significant public purpose, while providing only incidental benefits to a private party , is consistent with Section 206 of the Carson Charter and noticed Government Code section 53083.

2.6. The Property is located within a former Carson Redevelopment Agency Project Area. Despite diligent efforts by the Carson Redevelopment Agency Board and staff to foster development of a beneficial end use for the Property, it has remained vacant for decades. Many proposed projects failed due to the nature of the Property as a former landfill. As such, the City Council finds that commercial development of the Property for retail uses is not economically feasible without the benefits provided by this Agreement.

2.7. On or about February 15, 2022, City and Owner entered into that certain Economic Development Benefit Agreement (“ Benefit Agreement Number One”) based on the City’s initial desire to have a Costco developed and operated on the Property and providing for City to make certain City Payments (as defined therein) to Owner as compensation for the development and Operations (as defined therein) of the Costco and for Owner otherwise satisfying its obligations under Benefit Agreement Number One. Benefit Agreement Number One remains in full force and effect.

2.8. City and Owner now wish to have Owner pursue alternative opportunities for a Retail Facility (as defined below) at the Property to be developed and operated on the Property. To accomplish the foregoing desire of City, Owner has taken a number of steps to diligently and in good faith pursue development of a Retail Facility by, among other things, submitting a development application to City for the approval of a project encompassing a Retail Facility. Provided, however, while Owner is committed to using its diligent and good faith efforts to facilitate development and Operations (as defined below) of a Retail Facility , the Parties recognize that market realities and related considerations require a flexible entitlement strategy, which will be set forth in more detail in the Specific Plan.

2.9. Any Retail Facility developed and operated on the Property shall be vetted so as to avoid, whether directly or indirectly, the payment, transfer, diversion, or rebate of any tax revenue resulting from the imposition of a sales and use tax under the Bradley-Burns Uniform Local Sales and Use Tax Law (Part 1.5 (commencing with Section 7200) of Division 2 of the Revenue and Taxation Code) for any purpose so as to trigger the prohibitions of Government Code Section 53084.5.

01007.0591/726278.7 3

2.10. This Agreement has been reviewed by City with respect to applicability of the California Environmental Quality Act (“CEQA”), the State CEQA Guidelines (California Code of Regulations, Title 14, §§ 15000 et seq., hereafter the “Guidelines”), and any applicable local CEQA policies and procedures and City has determined that this Agreement is not a “project” for purposes of CEQA, as that term is defined by Guidelines section 15378, because City has determined, in its discretion and based on substantial evidence, that this Agreement constitutes a government funding mechanism or other government fiscal activity, which does not involve any commitment to any specific project which may result in potentially significant physical impact on the environment, purs uant to Guidelines section 15378(b)(4), or alternatively, it constitutes an organizational or administrative activity that will not result in a direct or indirect physical change in the environment pursuant to Guidelines section 15378(b)(5).

2.11. City, in consideration of the additional Local Sales Tax Revenues to be collected and remitted by any Retail Facility for the benefit of City, which City would not otherwise realize if the Property were used only for non- Sales Tax producing purposes, desires to provide City Payments (as defined below) to Owner as compensation for Operations of Retail Facility(ies) being established (whether through the development and operation by Owner and/or by tenant(s) of Owner) and for Owner otherwise satisfying its obligations under this Agreement.

2.12. City shall make the City Payments in accordance and subject to the terms of this Agreement.

2.13. City and Owner desire to enter into this Agreement for the purposes described above.

ARTICLE 3 DEFINITIONS.

3.1. Definitions. Unless the context otherwise requires, the terms defined in this Article 3 shall, for all purposes, and of any amendment hereof, and of any opinion or report or other document mentioned herein or therein, have the meanings defined herein; the following definitions to be equally applicable to both the singular and plural forms of any of the terms defined herein.

3.1.1 “ Agreement” shall have the meaning set forth in Section 1.1.

3.1.2 "Annual Retained Amount” shall have the meaning set forth in Section 4.2.3.

3.1.3 “Business Day” means a day which is not a Saturday, Sunday or legal holiday on which banking institutions in the State of California (including the City) and/or City, State, or Federal offices are closed.

3.1.4 “CDTFA” means the California Department of Tax and Fee Administration and any successor agency.

3.1.5 “CEQA” shall have the meaning set forth in Section 2.7.

3.1.6 “City” shall have the meaning set forth in Section 1.1 and shall include any nominee, assignee or successor to City’s rights, powers and responsibilities.

01007.0591/726278.7 4

3.1.7 “City Payment” means, with respect to a particular Fiscal Quarter within the Term, the sum total amount of City’s “Location Payment Obligation” (LPO), as defined in Section 3.1.23, for such Fiscal Quarter.

3.1.8 “City Paymen ts” means each and every City Payment, collectively.

3.1.9 “Costs” shall have the meaning set forth in Section 6.16.

3.1.10 “Data and Documentation” shall have the meaning set forth in Section 4.1.2.

3.1.11 “Default Rate” shall mean a per annum rate of interest equal to six percent (6%) over the Secured Overnight Financing Rate, but not to exceed the maximum permitted by law.

3.1.12 “Dispute Notice” shall have the meaning set forth in Section 6.17.

3.1.13 “DIR” shall have the meaning set forth in Section 4.1.2.

3.1.14 “Effective Date” shall have the meaning set forth in Section 1.2.

3.1.15 “Event of Default” shall have the meaning set forth in Section 4.10.

3.1.16 “Fiscal Quarter” means each three -month period within the Term commencing on February 1, May 1, August 1, or November 1, and ending on, as applicable, the immediately following April 30, July 31, October 31, or January 31.

3.1.17 “Force Majeure Delay” or “Force Majeure Event” shall have the meaning set forth in Section 6.13.

3.1.18 “Guidelines” shall have the meaning set forth in Section 2.7.

3.1.19 “Job Recruitment Fairs” shall have the meaning set forth in Section 4.9.1.

3.1.20 “Local Sales Tax Revenues” means that portion of the Sales Tax, if any, paid by any Retail Facility upon taxable sales and uses attributable to the operation of the Retail Facility and which is allocated and paid to City pursuant to the Sales Tax Law. Provided, however, that Local Sales Tax Revenues shall not include (i) any Sales Tax levied by, collected for or allocated to the State of California, the County of Los Angeles, or a district or any entity (including an allocation to a statewide or countywide pool) other than the City, (iii) any administrative fee charged by the CDTFA, (iv) any Sales Tax subject to any sharing, rebate, offset or other charge imposed pursuant to any applicable provision of federal, state or local (except City’s) law, rule, or regulation and thus not received by or retained by City unless any such offsetting credit is ultimately received by City, (v) any Sales Tax (or other funds measured by Sales Tax) required by the State of California to be paid over to another public entity ( including the State of California) or set aside and/or required by the State of California to be pledged to a specific use other than for deposit into or

01007.0591/726278.7 5
payment from City’s general funds. The California Legislature might provide for the payment to City of some form of revenues for the purpose of offsetting any losses City has suffered in Local Sales Tax Revenues resulting from the enactment of state legislation (e.g., the “triple flip” legislation). The Parties agree that should the California Legislature provide for such offsetting revenues, then any such offsetting revenues which are (i) intended to offset the loss of Sales Tax Revenues to City as a result of changes in law, and (ii) actually received by City, and (iii) not subject to any restrictions on use beyond those which are otherwise generally applicable to Sales Tax Revenues received by California municipalities, shall be deemed to be “Local Sales Tax Revenues” within the meaning of this Agreement; provided however, that should any such legislative change cause an increase in Sales Tax Revenues to make up for other funding eliminated or reduced from City, the Parties shall adjust the Location Payment Obligation and/or eliminate the Annual Retained Amount as necessary to account for such impact so that the Parties are made whole and neither Party receives any windfall or is prejudiced relative to the other Party by such change.

3.1.21 “Local Sales Tax Revenue Commencement Date” shall mean the date that the Retail Facility commences Operations at the Property.

3.1.22 “Location Payment Obligation” or “LPO” means, as to a particular Fiscal Quarter during the Term, an amount equal to:
(i) sixty- five percent (65%) of each dollar of Local Sales Tax Revenues received by City for each Fiscal Quarter
commencing upon the Local Sales Tax Revenue
Commencement Date until the fifth (5th) anniversary of
the Local Sales Tax Revenue Commencement Date
and, thereafter,
(ii) an amount equal to fifty -five percent (55%) of each dollar of Local Sales Tax Revenues received by City for each Fiscal Quarter until the end of the Term.

The calculation of the LPO shall be based on the remaining Local Sales Tax Revenues after deducting once annually the Annual Retained Amount set forth in Section 4.2.3 from Sales Tax Revenues in the first Fiscal Quarter following the Local Sales Tax Revenue Commencement Date and in the same
such Fiscal Quarter in each following year during the Term (and if the Annual Retained Amount is not fully deducted in the first su ch Fiscal Quarter, then with deductions of remaining amounts in each following Fiscal Quarter until City has deducted the total Annual Retained Amount).

3.1.23 " Maximum City Payment Amount " means payment of the City Payments totaling Eighteen Million Dollars ($18,000,000).

3.1.24 “Minor Amendment” means any limited technical correction, or not-substantive modification of this Agreement, as determined by the City Manager and City Attorney.

3.1.25 “Opening of the Retail Facility” means the first date that the Retail Facility commences Operations on the Property.

01007.0591/726278.7 6

3.1.26 “Operation(s)” means the Retail Facility is open, operating and generating Retail Sales.

3.1.27 “Owner” shall have the meaning set forth in Section 1.1.

3.1.28 “Party” or “Parties” shall have the meaning set forth in Section 1.1.

3.1.29 " Permitted Closure" shall mean: (1) a closure lasting less than three hundred sixty -five days (365) days regardless of the reason; (2) a Force Majeure Event impacting the Retail Facility; (3) a casualty event provided that the Owner or operator of the Retail Facility are proceeding with the repair and/or reconstruction of the Retail Facility within a commercially reasonable time period; (4) Owner notifies City that it intends to replace the Retail Facility with a warehouse store of similar size and a demonstrated record of producing Sales Tax and that otherwise that meets the definition of a Retail Facility, (5) a temporary taking lasting less than eighteen (18) months, or (6) any closure of the Retail Facility that is permitted pursuant to the terms of the Retail Facility Lease.

3.1.30 “Prevailing Wage Law” shall have the meaning set forth in Section 4.1.2.

3.1.31 " Project Approvals" shall mean a development application for a General Plan Amendment, a Specific Plan and related entitlements.

3.1.32 “ Prohibited Financial Assistance” shall have the meaning set forth in Section 4.1.1.

3.1.33 “Property” shall have the meaning set forth in Section 2.1.

3.1.34 “Public Records Act” shall have the meaning set forth in Section 6.12.

3.1.35 “Resolution Period” shall have the meaning set forth in Section 6.17.

3.1.36 “Retail Facility” or “Retail Facilities” means one or more retail facilities located on the Property (including, but not limited to, (i) a Sam’s Club, Fred Meyer, Meijer, or BJ Wholesale Club, or (ii) any similar retail facility (or facilities) that are approved in writing by the City Manager based on direction from the City Council of the City) comprising a retail and/or grocery store of at least one hundred thousand (100,000) square feet of retail space on the Property at which Retail Sales and other sales transactions are consummated pursuant to the Sales Tax Law. A Retail Facility may include a warehouse component, but shall not include any facility used primarily for non- Retail Sales as part of warehousing, distribution, logistics, fulfillment or manufacturing facilities, e- commerce or internet sales or any so called “last mile” distribution facilities , but shall exclude any retail facility transferred from other locations within the City or new branches of retail facilities already located in the City whether as of the Effective Date of this Agreement or after. A Retail Facility shall further exclude any discount stores (other than Sam’s Club, Fred Meyer, Meijer, or BJ Wholesale Club which, for the avoidance of doubt, are not discount stores ), including, but not limited to , by way of example, the following retailers: 99 (cents) Only, Dollar Tree, Dollar General, Family Dollar, Walmart, and Big Lots.

01007.0591/726278.7 7

3.1.37 “Retail Facility Lease” means the lease between Owner and the Retail Facility to conduct the Operations at the Property.

3.1.38 “Retail Sales,” “Sale “ or “Sales” means all sales of tangible personal property , taxable food, beverage, and vehicle fuel or energy source (including, but not limited to, electrical charging stations) sold to any person or entity at the Retail Facility , online or virtually and attributable to the Retail Facility and thereby subject to Sales Tax in the City of Carson following the Opening of the Retail Facility and which generates Local Sales Tax Revenues.

3.1.39 “Sales Tax” means all sales and use taxes levied under the authority of the Sales Tax Law, excluding amounts to be refunded to the Retail Facility because of an overpayment of Sales Tax.

3.1.40 “Sales Tax Law” means (i) California Revenue and Taxation Code Section 6001 et seq., and any successor law thereto, including the Bradley - Burns Uniform Local Sales and Use Tax Law (Revenue and Taxation Code Section 7200 et seq.), and any successor law thereto, (ii) any legislation allowing City or other public agency with jurisdiction in City to levy any form of Sales Tax, and (iii) regulations of the CDTFA and other binding rulings and interpretations relating to (i) and (ii) hereof; provided that “Sales Tax Law” shall not include any local transaction and use tax adopted by City, with approval by City voters, pursuant to Part 1.6 (commencing with Section 7251) of Division 2 of the California Revenue and Taxation Code, and Section 7285.9 of the California Revenue and Taxation Code.

3.1.41 " Secured Overnight Financing Rate" shall mean the rate of interest per annum equal to the secured overnight financing rate on the applicable business day of determination, published by the Federal Reserve Bank of New York, currently at https://www.newyorkfed.org/markets/reference- rates/sofr (or any successor source for the secured overnight financing rate identified as such by the administrator of the secured overnight financing rate from time to time) as the current “30-Day Average".

3.1.42 “Specific Plan” shall mean that certain policy and planning document to be considered and adopted by City as part of the development application referenced in Section 4.1.1, which would govern development of the proposal for the Retail Facilities, and any other use.

3.1.43 “Term” shall mean that period commencing on the Effective Date and ending on the twentieth (20th) anniversary of the Local Sales Tax Revenue Commencement Date; provided that this Agreement shall terminate earlier upon (i) the permanent closure of the Retail Facility, unless due to a Permitted Closure, (ii) the receipt by Owner of the Maximum City Payment Amount ; or (iii) the date on which this Agreement is terminated pursuant to the specific provisions of this Agreement, whichever occurs first. The Term shall be subject to the Tolling Period as specified in the Agreement. If within one (1) year of the Effective Date the Owner is unable to obtain, using reasonable and good faith efforts, a binding commitment from Retail Facility to construct and open a retail facility, then the Owner, at its option, shall have the right to terminate this Agreement by sending written notice to the City.

3.1.44 “ Third Party Claim” shall have the meaning set forth in Section

6.14. 01007.0591/726278.7 8

3.1.45 "Tolling Period" shall mean any period during which a Force Majeure Event or a Permitted Closure is ongoing, during a Resolution Period, or any other event during which City Payments are not being made for a reason out of Owner's control.

ARTICLE 4 LOCATION AND OPERATION; CITY PAYMENTS

4.1 Covenants of Owner.

4.1.1 Location and Operation Covenant. Owner hereby represents that it is seeking to facilitate the development and Operations of the Retail Facility within the jurisdictional boundaries of the City. To this end, Owner, as of the Effective Date, has already submitted the Project Approvals, including the payment by Owner of applicable fees therefor, which incorporates the proposal for the Retail Facility .

Owner intends to diligently pursue the Project Approvals from City in accordance with the applicable requirements of the Carson Zoning Ordinance and other applicable laws and regulations.

During the Term, Owner may not receive any Prohibited Financial Assistance (as defined below) from another competing jurisdiction to construct, open and operate a Retail Facility in the competing jurisdiction if the competing Retail Facility will result in the reduction of the Local Sales Tax Revenues. During the Term, City shall not provide any Prohibited Financial Assistance to any project or developer within its jurisdiction that will result in the reduction of the Local Sales Tax Revenues.

For purposes of this Section 4.1.1, the term “Prohibited Financial Assistance” shall mean any direct or indirect payment, subsidy, or other similar monetary benefit, including, without limitation, payment of land subsidies, relocation expenses, financial incentives, public financings, tax and assistance agreement, property or sales tax relief, relief from public improvement obligations, and payment for public improvements to or for the benefit of Owner, where the aforementioned is solely to assist with the creation of a competitive Retail Facility within 10 miles of the Retail Facility that is subject to this Agreement; provided, however, that participation in an Enhanced Infrastructure Financing District shall not be treated as Prohibited Financial Assistance.

4.1.2 Retail Facility Lease Covenants. Owner shall use commercially reasonable, good faith efforts to cause the Retail Facility Lease to include the following covenants:
(i) The Retail Facility operator shall conduct its
respective operations in accordance with all applicable provisions of local, state and federal law.
(ii) The Retail Facility operator shall authorize the
California State Franchise Board to provide to City and Owner, access to sales and/or use tax records for the Retail Facility operator business located on the Property and shall sign any required documentation indicating its consent to facilitate such disclosure to City and Owner. (iii) The Retail Facility operator will provide Owner
and City copies of its quarterly sales tax reports for the relevant Retail Facility (collectively, “Data and Documentation” ) provided to the

01007.0591/726278.7 9
CDTFA, which set forth the amount of Sales Taxes paid by each such Retail Facility to the CDTFA during the Fiscal Quarter arising from the Operation of the relevant Retail Facility. Specifically, the Retail Facility operator shall provide to the Owner and the City Schedule C - Detailed Allocation By Location Of Sales And Use Tax Transactions that it filed with the CDFTA. In each Schedule C, the Retail Facility operator shall separately state the Sales Taxes paid for its Retail Facility located on the Property. Notwithstanding anything to the contrary in t he foregoing, in the event of a dispute regarding the Local Sales Tax Revenues from a Retail Facility, City may, at its sole expense and pursuant to all applicable laws and regulations, seek to compel the relevant entity to provide any such additional information and Retail Facility shall cooperate with City related to such request . City acknowledges and agrees that the Data and Documentation provided by each such entity is confidential and shall be treated by City as confidential material for purposes of Section 6.12.
(iv) The Retail Facility shall assume the
responsibility and be solely responsible for determining whether or not laborers employed relative to any construction pertaining to the relevant Retail Facility must be paid the prevailing per diem wage rate for their labor classification under Labor Code Section 1720 et seq. and implementing regulations (“Prevailing Wage Law”) and should any third party, including, without limitation, the Director of the Department of Industrial Relations (“DIR”), bring a claim that Owner or the entity establishing and Operating a Retail Facility is required to pay the general prevailing wage rates of per diem wages and overtime and holiday wages determined by the Director of the DIR under Prevailing Wage Law, then the entity establishing and Operating a Retail Facility shall (with counsel reasonably acceptable to City) indemnify, defend, and hold Ci ty harmless from any such determinations, or actions (whether legal, equitable, or administrative in nature), liabilities, damages, penalties or other proceedings, and shall assume all obligations and liabilities (if any) for the payment of such wages and for compliance with the provisions of the Prevailing Wage Law.

4.2. Payment of City Payment.

4.2.1 Sales Tax Payments. In consideration of the substantial benefits to City from the development of Retail Facilities, City shall pay to Owner the City Payments described below. City Payments shall be made from any source available to City, in quarterly installments beginning with Local Sales Tax Revenue Commencement Date until the expiration of the Term of this Agreement. The Term shall be extended by the length of any Tolling Period. The Local Sales Tax Revenues generated by the Property for City’s benefit as a result of the location by Owner of Retail Facilities will be directly related to the covenants agreed to by Owner in this Agreement, which covenants shall terminate and be of no further force or effect in any year in which City fails to pay to Owner the City Payments, following notice by Owner to City and an opportunity to cure pursuant to Section 4.10.2. The City Payments have been derived by allocating to Owner a percentage of the direct annual fiscal benefits accrued by City as a result of this Agreement. Accordingly, City is deemed to have received annual benefit in exchange for its entry into this Agreement.

01007.0591/726278.7 10

4.2.2 Separate Accounting. During the Term, City shall separately track all the Local Sales Tax Revenues and segregate those funds in its bookkeeping ledger, so that the same can be easily audited, the City Payments can be accurately calculated, and the City is able to ensure the availability of said funds to make the obligated City Payments.

4.2.3 Process. Within forty-five (45) days following City’s receipt of any and all Local Sales Tax Revenues applicable to such Fiscal Quarter and upon satisfaction of the remaining conditions set forth in Section 4.2.4, City will determine and pay to Owner the City Payment due for such Fiscal Quarter. The first one hundred thousand dollars ($100,000.00) of Local Sales Tax Revenues collected by City from Retail Facilities each year of the Term (“Annual Retained Amount”) shall be retained by City in its entirety from the Local Sales Tax Revenues from the First Fiscal Quarter and, if insufficient to fully pay the Annual Retained Amount, the following Fiscal Quarter or Quarters, as necessary, and shall be retained until City has reached the Annual Retained Amount. Thereafter, City shall make the City Payment on any remaining Local Sales Tax Revenues for that Fiscal Quarter and the following Fiscal Quarters for that year. City’s obligation to pay the City Payment to Owner shall apply to each Fiscal Quarter or portion thereof during the Term and shall terminate at the end of the Term, provided that the obligation of City to pay the City Payments and all other amounts payable to Owner under this Agreement for all Fiscal Quarters or portions thereof occurring during the Term shall, together with all provisions for the benefit of Owner required or reasonably necessary to enforce such payment requirements, survive the termination of this Agreement. Each City Payment shall be accompanied by a statement setting forth the calculations made to determine the amount of such disbursement and setting forth all disbursements made to date , subject to any restrictions imposed by CDTFA regarding the disclosure of such information to third-parties. With each City Payment, City shall provide a full accounting on the Local Sales Tax Revenues received from the state, including the Sales Tax documentation it received from the state for each Retail Facility on the Property. City shall also provide the documentation showing the Annual Retained Amount, Local Sales Tax Revenues received, and the calculation of the City Payment with each quarterly payment.

4.2.4 Conditions Precedent to City Payments. For each Fiscal Quarter within the Term, City’s obligations to make any City Payments to Owner hereunder are expressly contingent upon, and only upon, the satisfaction of the following conditions precedent in each Fiscal Quarter:
(i) City has received from the Retail Facility, Owner or the State of California sufficient information, so that it can accurately calculate the Local Sales Tax Revenues;
and
(ii) City’s receipt of Local Sales Tax Revenues from the State of California.

City shall exercise diligent and good faith, reasonable efforts to promptly obtain Local Sales Tax Revenues from the State of California. Should City reasonably determine that the condition precedent set forth in subsections (i) and (ii) above have not been satisfied for the relevant Fiscal Quarter, then City may delay making the City Payment to Owner for such Fiscal Quarter until such condition precedent s are met.

If City elects to so delay such City Payment, City must promptly give Owner written

01007.0591/726278.7 11
notice pursuant to Section 6.8 in reasonably sufficient detail of the basis for City’s allegation that the condition precedent s have not been fulfilled and cooperate with Owner’s efforts to obtain the necessary information. Upon satisfaction of the condition in subsections (i) and (ii), City shall be obligated to pay all previously unpaid City Payments to Owner within thirty (30) days. Notwithstanding anything to the contrary in the foregoing, if City improperly delays making the relevant City Payment under this Section 4.2.4, then City shall, in addition to making the required City Payment, pay interest at the Default Rate until paid all sums due and owing are paid.

4.3. Adequate Consideration.

4.3.1 Each City Payment due and payable hereunder shall constitute the total payment to Owner for the Fiscal Quarter to which it relates. The Parties hereto have determined and agreed that the City Payment due and payable with respect to each Fiscal Quarter represents fair consideration to Owner for its covenants and obligations hereunder up to the amount of the Maximum City Payment Amount and the covenants and obligations of Owner hereunder represent fair and adequate annual consideration to City for its obligation to make the City Payments.

4.3.2 Both City and Owner expressly acknowledge and agree that Owner will receive no compensation under this Agreement other than the City Payments, any additional payments due under Section 4.2, and any funds received by Owner as a result of Owner exercising any remedies hereunder. Owner shall not be entitled hereunder to any reimbursement or other compensation from City for any costs incurred by Owner in performing or preparing to perform its obligations under this Agreement. The City Payments shall not be reduced or offset for any costs or expenses incurred by City in performing or preparing to perform its obligations under this Agreement, except that if Owner seeks any modification of this Agreement at any point in the Term, Owner shall reimburse City for all costs associated with effecting such modification. Provided, however, that if City seeks any changes in Sale Tax collection that results in modification(s) to this Agreement, then City shall reimburse Owner for all cost resulting from any such modification(s).

4.4. Annual Reconciliation. On March 15th of each calendar year, the parties shall reconcile the actual Local Sales Tax Revenues generated versus the amount used to calculate the City Payments for the previous year (“Annual Reconciliation”). The Annual Reconciliation will be based upon auditable backup information, including, but not limited to, tax bills, invoices, sales reports, and/or canceled checks. Such Annual Reconciliation shall take into account any overpayments or underpayments by the Retail Facility, which subsequently impacts the amount of Local Sales Tax Revenues generated in the previous years during the Term. City and Owner shall reconcile the Annual Reconciliation with the annual City Payments made. If there has been an overpayment of the annual City Payments based on the Annual Reconciliation, within sixty (60) days of receipt by Owner of written notice from City of the overpayment (together with reasonable supporting documentation), Owner shall refund the amount of the overpayment to City. If there has been an underpayment of the annual City Payments based on the Annual Reconciliation, within sixty (60) days of receipt by City of written notice from Owner of the underpayment (together with reasonable supporting documentation), City shall pay the underpayment to Owner.

4.5. Appropriation of City Payment. City acknowledges that the City Payments are a material inducement for Owner to develop and construct a retail

01007.0591/726278.7 12
project on the Property, including, but not limited to, entering into long- term leases with the Retail Facilities. The Owner would not have proceeded with the retail facility project without assurances that the City can and will make the City Payments.

Towards that end, the City covenants that it will take all necessary steps to ensure all anticipated City Payments are included in the annual City budget and all appropriations of such City Payments are approved in a timely basis each year. City acknowledges that the City’s failure to approve the annual appropriation of the anticipated City Payments shall be deemed an immediate Event of Default under this Agreement. For the fiscal year that the Opening of the Retail Facility will occur, the City shall appropriate the City Payments in an amount equal to the City’s good faith estimate of the City Payments payable in that fiscal year. In each subsequent fiscal year thereafter, the City shall appropriate City Payments in an amount equal to the City’s good faith estimate, based on the historical Local Sales Tax Revenue data, as adjusted with any reasonably expected changes that are likely to impact the Local Sales Tax Revenue that particular fiscal year. Twenty (20) days prior to the City approving the appropriation, City shall send a written notice to Owner with the amount of the City Payments , together with the supporting documentation explaining its estimated City Payments for that fiscal year.

4.6. Recapture of City Payments. If, at any time during or after the Term of this Agreement, CDTFA makes a final Board determination that all or any portion of the Local Sales Tax Revenues received by City, for Sales Tax generated from the Property, were improperly allocated and/or paid to City, and if CDTFA requires repayment of, offsets against future Sales Tax payments, or otherwise recaptures from City those improperly allocated and/or paid Local Sales Tax Revenues, then City shall promptly contact Owner regarding any communication from the CDTFA pertaining to tax allocations associated with a Retail Facility’s business. City and Owner agree that, should the CDTFA question the correctness of the allocation or determine that there has been an improper allocation to City, City and Owner shall (at the request of Owner) jointly engage legal counsel to use its best efforts to defend such allocation in all CDTFA administrative proceedings. Costs associated for any such efforts shall be borne by both City and Owner in proportion to their respective percentage interests in the Local Sales Tax Revenues. For purposes of this Section

4.6, administrative proceedings include all CDTFA meetings, conferences and appeals before CDTFA Board members. The Parties shall reasonably cooperate with each other and their legal counsel retained for this matter. Only in the event that CDTFA prevails in a determination that there has been an overpayment in Sales Tax attributable to the Property, Owner shall, within thirty (30) days after such final determination, repay all City Payments (or applicable portions thereof) theretofore paid to Owner which are attributable to such repaid, offset or recaptured Local Sales Tax Revenues. If Owner fails to make such repayment within thirty (30) days after City’s written demand, together with all supporting documentation, then such obligation shall accrue interest from the date that is thirty (30) days after City’s original written demand at then interest shall accrue from the date it was owed until it is paid at the Default Rate until paid. In addition, to the extent unpaid, City may withhold such amounts from future City Payments. This Section 4.6 shall survive termination of this Agreement.

4.7. Underpayment by CDTFA. In order to further the goals of this Agreement, City hereby authorizes Owner, upon reasonable notice and within the limits of the California Public Records Act, to allow a Retail Facility to review records regarding the receipt of Local Sales Tax Revenues by City from CDTFA relating to such Retail Facility. If necessary, Owner can compel City to pursue resolution of any

01007.0591/726278.7 13
underpayment, in which case the cost of attorney fees shall be borne by both City and Owner in proportion to their respective percentage interests in the Local Sales Tax Revenues. In the event of an underpayment of Local Sales Tax Revenues by the CDTFA, City agrees to promptly use diligent, reasonable good faith efforts to pursue its available administrative remedies against the CDTFA on behalf of Owner and any applicable Retail Facility. Only if City prevails in a determination that there has been an underpayment of Sales Tax attributable to the Property, City shall make the necessary City Payment in the Fiscal Quarter immediately following City’s receipt from the state of the amount owed. Should City fail to make such City Payment on a timely basis, then interest shall accrue from the date it was owed until it is paid at Default Rate until paid. The provisions of this Section and all other Sections of this Agreement required to remain effective in order for City to make repayment to Owner of tax allocations made by CDTFA or the State to City following expiration of the Term shall survive the termination of this Agreement. If City fails to make the timely payment, then City shall not be permitted to offset the Annual Retained Amount until the unpaid amount is paid.

4.8. Audits. Either Party shall, upon no less than seventy -two (72) hours prior written request from the other Party, make the entirety of its books and records relating to the calculation and determination of that Party’s rights and obligations under this Agreement available at no cost to the requesting Party and/or its designees (including its accountants and/or attorneys) and shall direct its accountants and other consultants and contractors in possession of its books and records to do likewise; provided, however, that nothing herein shall be deemed to abridge or constitute a waiver of any Party’s evidentiary rights and privileges arising pursuant to any provision of law, including, without implied limitation, the California Evidence Code, California Government Code (including the Public Records Act), the Code of Civil Procedure, federal statutes and state or federal judicial decisions. Each Party shall bear the costs of its own auditors, experts and other consultants it may engage to complete its investigation of the other Party’s books and records; provided, however, that any audit and/or investigation undertaken in connection with any arbitration proceeding or as otherwise ordered by the court, may be recovered as an item of litigation expense pursuant to Section 6.17. Any audit conducted shall be conducted in a manner that preserves the confidentiality of retail sales information of Retail Facilities and Owner.

4.9. Public Benefits

4.9.1 Employment Outreach for Local Residents. In addition to the public benefits provided by this Agreement outlined in Sections 2.5 and 2.6 (which list of benefits is not exhaustive) , the City has entered into this Agreement to foster employment opportunities for City residents. To that end, Owner shall use commercially reasonable, good faith efforts to include in all contracts (including leases) with other entity(ies) establishing and operating Retail Facilities to require that each such entity use commercially reasonable efforts and further subject to prudent business practices to recruit and hire local City residents for full and part time employment opportunities at the relevant Retail Facility. The foregoing shall be satisfied as follows: To the extent a Retail Facility conducts any local on- site and/or off-site Job Recruitment Fairs, which are defined as the relevant Retail Facility’s pre- scheduled events open to the public with the purpose of filling twenty (20) or more job positions at the applicable Retail Facility, the Retail Facility shall furnish the City of Carson Human Resources Development and/or Development Services Department with the location, dates and times for such Job Recruitment Fairs prior to

01007.0591/726278.7 14
the date of accepting applications. For purposes of this Section 4.9.1, the term “Job Recruitment Fairs” shall exclude any recruitment activities or events hosted by the relevant Retail Facility’s staffing agencies or third-party vendors which may be used to fill temporary job positions at the relevant Retail Facility. Owner is not opposed to City seeking authority from the relevant Retail Facility to post and advertise the job recruitment information provided to City on the City’s website and other jobs available and job recruitment sites within the City. Notwithstanding anything to the contrary in the foregoing, any offers of employment shall be at the sole discretion of the entity that Operates the relevant Retail Facility, and nothing in this Section 4.9.1 shall be interpreted to require any such entity to offer employment to anyone, including, without limitation, to individuals who are not otherwise qualified for such employment.

Without limiting the generality of the foregoing, the provisions of this Section 4.9.1 are not intended, and shall not be construed, to benefit or be enforceable by any third party. Further, City acknowledges and agrees that initial and future hires shall include transfers from other locations of similar facilities that are not located in the City and those transfers shall be permitted without reference to the provisions of this Section in order to allow Retail Facilities to employ experienced employees. The obligations of this section shall not apply to seasonal or special event hires. Event of Default. Each of the following shall constitute an “Event of Default”:

4.9.2 Fai
lure by a Party to comply with and observe any of non - monetary covenant if such failure remains uncured within thirty (30) days after written notice of such failure from the non- defaulting Party to the defaulting Party in the manner provided herein or, with respect to a non- monetary default that cannot be cured within thirty (30) days, if the defaulting Party fails to commence such cure within such thirty (30) day period or thereafter fails to diligently and continuously proceed with such cure to completion. However, if a different period, notice requirement, or remedy is specified under any other Section of this Agreement, then the specific provision shall control; provided that if the informal dispute resolution process described in Section 6.17 of this Agreement has been invoked by either Party, then no non- monetary Event of Default shall be declared by either party during the pendency of that ninety (90) day process.

4.9.3 Failure to make any monetary payment when due if such failure remains uncured for thirty (30) days after receiving written notice from the non- defaulting Party. If a due date is not specified in the Agreement, then such payment shall be payable within thirty (30) days upon receiving written demand for such payment from the other Party. If a Party fails to make the timely payment after written demand, then the other Party shall send written notice to the Party in breach, notifying the other Party of the breach. Upon receipt of such written notice, the Party in breach shall have thirty (30) days to cure such breach.

4.9.4 Any representation or warranty contained in this Agreement proves to have been incorrect in any material respect when made that impairs the ability of the obligated party to satisfy its obligations.

4.9.5 Failure of City to appropriate the anticipated amount of the City Payments on an annual basis shall be an Event of Default.

4.10. Rights and Remedies; Rights and Remedies Not Exclusive.

Unless prohibited by law or otherwise provided by a specific term of this Agreement, the rights and remedies of City and Owner under this Agreement are nonexclusive and all remedies hereunder may be exercised individually or cumulatively, including

01007.0591/726278.7 15
the right to terminate this Agreement. Upon the other Party’s Event of Default, in addition to those remedies expressly granted herein, the Parties shall also have the right to seek all other available legal and equitable remedies, including, but not limited to, specific performance and injunctive relief . In addition to all other rights and remedies hereunder, if the City fails to appropriate the necessary funds or fails to make a timely City Payment, interest shall accrue on the previously unpaid City Payments at the Default Rate , commencing on the date that such City Payment should have been paid until it is actually paid by the City . The provisions of this Section shall survive the termination of this Agreement.

4.11. Termination. In the event of the permanent closure of the entirety of Retail Facilities’ Operations on the Property, except due to a Force Majeure Event or Permitted Closure , either Party may terminate this Agreement and all of its prospective obligations under this Agreement without cost or liability, provided that the terms and provisions of this Agreement with respect to City Payments then accrued or due to Owner, or then due from Owner to City shall remain in effect and survive the termination of this Agreement.

ARTICLE 5 REPRESENTATIONS AND WARRANTIES

5.1. City Representations and Warranties. City represents and warrants to Owner that:
(i) City is a municipal corporation exercising governmental functions and powers and organized and existing under the State of California;
(ii) City has taken all actions and implemented all procedures required by applicable law to approve the execution of this Agreement;
(iii) City’s entry into this Agreement and the performance of City’s obligations under this Agreement do not violate any contract, agreement or other legal obligation of City or federal, state or local laws;
(iv) To City’s actual current knowledge, there are no pending lawsuits or other actions or proceedings which would prevent or impair the timely performance of City’s obligations under this Agreement;
(v) City has the legal right, power and authority to enter into this Agreement and to consummate the transactions contemplated hereby, and the execution, delivery and performance of this Agreement has been duly authorized and no other action by City is requisite to the valid and binding execution, delivery and performance of this Agreement; and
(vi) The individual executing this Agreement is authorized to execute this Agreement on behalf of City.

The representations and warranties set forth above are material consideration to Owner and City acknowledges that Owner is relying upon the

01007.0591/726278.7 16
representations set forth above in undertaking Owner’s obligations set forth in this Agreement.

The term “City’s actual current knowledge” means, and is limited to, the actual current knowledge of City Manager, as of the Effective Date, without having undertaken any independent inquiry or investigation for the purpose of making such representation or warranty. All of the terms, covenants and conditions of this Agreement shall be binding on and shall inure to the benefit of City and its nominees, successors and assigns.

5.2. Owner Representations and Warranties. Owner represents and warrants to City that:
(i) Owner is a duly formed California limited liability company and is in good standing and qualified to do business under the laws of the State of California;
(ii) The individual(s) executing this Agreement is/are authorized to execute this Agreement on behalf of Owner;
(iii) Owner has taken all actions required by applicable law to approve the execution of this Agreement;
(iv) Owner’s entry into this Agreement and the performance of Owner’s obligations under this Agreement do not violate any contract or agreement of Owner;
(v) To Owner’s actual current knowledge, there are no pending lawsuits or other actions or proceedings which would prevent or impair the timely performance of Owner’s obligations under this Agreement; and
(vi) Owner has the legal right, power and authority to enter into this Agreement and to consummate the transactions contemplated hereby, and the execution, delivery and performance of this Agreement have been duly authorized by Owner and no other action by Owner is requisite to the valid and binding execution, delivery and performance of this Agreement, except as
otherwise expressly set forth herein.

The term “Owner’s actual current knowledge” means, and is limited to, the actual current knowledge of Mr. William Vierra, as of the Effective Date, without having undertaken any independent inquiry or investigation for the purpose of making such representation or warranty.

The representations and warranties set forth herein are material considerations to City and Owner acknowledges that City is relying upon the representations set forth above in undertaking City’s obligations set forth above.

5.3. Identity of Owner. City has entered into this Agreement with Owner because of the unique qualifications and identity of Owner. No voluntary or involuntary successor-in-interest of Owner shall acquire any rights or powers under

01007.0591/726278.7 17
this Agreement except as expressly set forth herein. Owner may not assign or transfer all or any part of this Agreement except as provided in Section 6.27.

ARTICLE 6 MISCELLANEOUS

6.1. Amendment; Modification. At any time, City and Owner may determine that this Agreement should be amended for the mutual benefit of the Parties, or for any other reason. Any such amendment to this Agreement shall only be by written agreement between City and Owner. City and Owner agree to consider reasonable requests for amendments to this Agreement which may be made by either of the Parties hereto, although neither Party shall be obligated to approve any such amendment. Any amendments to this Agreement must be in writing and signed by the appropriate authorities of both City and Owner. With the concurrence of the City Attorney, the City Manager is authorized on behalf of City to approve and execute Minor Amendments to this Agreement on behalf of City. Any amendment that is not a Minor Amendment shall require approval by the City Council. Any such approved amendment shall control over this Agreement.

6.2. California Law. This Agreement shall be construed and governed in accordance with the laws of the State of California without regard to its conflict of laws principles.

6.3. Execution in Counterparts. This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original, and all of which shall constitute but one (1) and the same instrument.

6.4. Business Days. Any act or thing required to be done or exist on any date set forth herein which does not constitute a Business Day in any year shall be deemed to be done or to exist on such date if such act or thing is done or exists on the next date which constitutes a Business Day.

6.5. Tax Consequences. Owner shall be responsible and assume all liability for federal, state and/or local income or other taxes resulting from its receipt of City Payments.

6.6. Rights Not Granted. This Agreement is not, and shall not be construed to be, a statutory development agreement under California Government Code Section 65864 et seq. or a disposition and development agreement under California Health and Safety Code Section 33000 et seq. This Agreement is not, and shall not be construed to be, an approval of or an agreement to issue permits or a granting of any right or entitlement by City concerning any project, development, or construction by Owner in City, and shall not be deemed to commit City to any particular course of action with respect to the ultimate development of the Property.

This Agreement does not, and shall not be construed to exempt Owner in any way from the requirement to obtain permits and/or other discretionary or non-discretionary approvals as may be necessary for the development, maintenance and operation of any project, development or construction within City, and the Parties acknowledge and agree that to the extent such approvals are discretionary in nature, City shall be required to comply with CEQA in connection with the consideration thereof.

This Agreement does not, and shall not be construed to exempt Owner from the application and/or exercise of City’s power of eminent domain or its police power,

01007.0591/726278.7 18
including, but not limited to, the regulation of land uses and the taking of any actions necessary to protect the health, safety and welfare of its citizenry.

6.7. Consent. Whenever consent or approval of either Party is required under this Agreement, that Party shall not unreasonably withhold, delay or condition such consent or approval unless a different standard is otherwise provided by a specific provision of this Agreement.

6.8. Notices and Demands. All notices or other communications required or permitted between City and Owner under this Agreement shall be in writing, and may be (i) personally delivered, (ii) sent by United States registered or certified mail, postage prepaid, return receipt requested, (iii) sent by nationally recognized overnight courier service (e.g., Federal Express), or (iv) sent by electronic mail and addressed to the Parties at the addresses below subject to the right of either Party to designate a different address for itself by notice similarly given. Any notice so given by registered or certified United States mail shall be deemed to have been received on the fourth (4th) Business Day after the same is deposited in the United States mail. Any notice not s o given by registered or certified mail, such as notices delivered by courier service (e.g., Federal Express), shall be deemed received upon actual receipt of the same by the Party to whom the notice is given.

To City: City of Carson
701 E. Carson St.

Carson, CA 90745
Attention: City Manager

With a copy to: Sunny Soltani, City Attorney
Aleshire & Wynder, LLP
1 Park Plaza, Suite 1000
Irvine, CA 92614
Email: [email protected]
To Owner: Southbay-Carson LLC
C/O SyWest Development LLC
150 Pelican Way, San Rafael, CA 94901
Attn: William Vierra
Email: [email protected]
With a copy to: GVR Partners
345 California St., Suite 700,
San Francisco, CA 94104
Attn: Nadia Costa
Email: [email protected]

6.9. Non-liability of Parties’ Officials and Employees. No officer, elected official, contractor, consultant, attorney or employee of City shall be personally liable to Owner, any voluntary or involuntary successors or assignees of Owner, or any lender or other party holding an interest in Owner’s property, in the event of any default or breach by City, or for any amount which may become due to Owner or to its successors or assignees, or for any obligations arising under this Agreement.

01007.0591/726278.7 19
No officer, official, contractor, consultant, attorney or employee of Owner shall be personally liable to City, any voluntary or involuntary successors or assignees of City in the event of any default or breach by Owner, or for any amount which may become due to City or to its successors or assignees, or for any obligations arising under this Agreement.

6.10. Conflicts of Interest. No officer, elected official, contractor, consultant, attorney or employee of City shall have any personal interest, direct or indirect, in this Agreement nor shall any such officer, elected official, contractor, consultant, attorney or employee participate in any decision relating to this Agreement which unlawfully affects his/her personal interests or the interests of any corporation, partnership or association in which he/she is directly or indirectly interested.

6.11. Entire Agreement. This Agreement contains all of the terms and conditions agreed upon by the Parties. No other understanding, oral or otherwise, in direct conflict with this Agreement shall be deemed to exist or to bind any of the Parties hereto. All prior written or oral offers, counteroffers, memoranda of understanding, proposals and the like are superseded by this Agreement.

6.12. Confidentiality. Subject to the provisions of the California Public Records Act (Government Code Section 6250 et seq.) (“Public Records Act”) which governs City’s use and disclosure of its agreements and records, City and Owner hereby agree that each shall keep confidential information provided by the other and denominated as confidential and shall not disclose any such information to any Person without obtaining the prior written consent of the other Party, except that the confidentiality obligation under this Section shall not apply to (a) information that is a matter of general public knowledge or is already in a Party’s possession prior to receiving it from the other Party, or (b) disclosure of information to the respective consultants and attorneys of each Party. Owner shall use reasonable efforts to clearly mark or otherwise identify in writing all information it considers to be proprietary and confidential at the time it is delivered to City. Notwithstanding the foregoing, City acknowledges and agrees that regardless of whether it is marked as proprietary and confidential information, all Data and Documentation and other financial information and documentation, if any, provided by Owner to City is proprietary and confidential and shall be maintained in a strictly confidential manner and used by City only for the purposes within the scope of this Agreement. City shall not disseminate such information and shall take all reasonable steps to maintain such confidentiality unless otherwise required by applicable law. In the event that City obtains a request pursuant to the provisions of the Public Records Act to disclose any of Owner’s information which City is required to keep confidential pursuant to the terms of this Agreement, prior to responding to such request, City shall provide Owner with prompt written notice thereof and City and Owner shall cooperate in good faith at Owner’s sole cost and expense to seek to avoid disclosure of such matters to the extent legally permissible pursuant to the provisions of the Public Records Act.

6.13. Extensions and Delays. Time is of the essence in the performance of the obligations of City and Owner under this Agreement. In addition to specific provisions of this Agreement, providing for extensions of time, times for performance hereunder shall be extended where delays in performance are due to: war, insurrection, rebellion, act of terrorism, act of sabotage, civil commotion; blockade or trade dispute; any form of labor dispute, strike or lockout; riots; floods; earthquakes; fires; acts of God or of third parties; third party litigation or orders and judgments of courts of competent jurisdiction; acts of a public enemy; acts of governmental

01007.0591/726278.7 20
authorities (excluding acts of City); epidemic, pandemic, quarantine or quarantine restrictions; freight embargoes or lack of transportation; and other circumstances outside of a Party’s reasonable control (each, a “Force Majeure Delay” or “ Force Majeure Event”). Force Majeure Events shall not apply to the City's obligation to make the City Payments. If not a matter of general public awareness, the Party claiming the Force Majeure Delay shall notify the other Party in writing within ten (10) days of discovering the circumstances causing the same and describing the nature of the matter causing such Force Majeure Delay; provided further, that the extension of time shall be only for the period of the Force Majeure Event; and provided further that, if the Force Majeure Delay is due to an epidemic, pandemic or quarantine, the Parties agree to meet and confer to try to resolve the issue before the time to perform may be extended. In no event shall either Party be deemed in default of this Agreement because of a Force Majeure Event.

6.14. Indemnification. Owner agrees to indemnify City and hold it harmless from and against any and all third party demands, suits, proceedings, causes of action or claims arising from any negligence or willful misconduct of Owner (each, a “Third Party Claim”), except to the extent such Third Party Claim relates to or is caused by City’s negligence or intentional misconduct, or the negligence or intentional misconduct of any of the City’s officials, officers, employees, or agents. Provided, however, nothing in this Section 6.14 shall apply to a claim by Owner against City for City default of its obligation(s) hereunder. City shall fully cooperate in the defense of any such Third Party Claim and upon written request of Owner shall provide to Owner such documents and records in possession of City that are relevant to such demand, suit, proceeding or claim and not otherwise protected by law. Notwithstanding anything to the contrary in the foregoing, the Parties shall share all costs of defense, including, without limitation, legal fees and expenses, court costs, and expert fees in proportion to their respective percentage interests in the Local Sales Tax Revenues in connection with a Third Party Claim brought by another local municipality.

6.15. Offset. Neither Party knows of any reason why any portion of Local Sales Tax Revenues would be shared with another jurisdiction. Notwithstanding the foregoing, in the event that a court or administrative body determines that any portion of Local Sales Tax Revenues must be shared with another jurisdiction, the Parties shall meet to discuss an appropriate adjustment to the Local Payment Obligation to address the impact therefrom and corresponding amendment to this Agreement to implement same.

6.16. Attorneys’ Fees. In the event of the bringing of an action or suit by a Party hereto against the other Party by reason of any breach of any of the covenants or agreements hereunder arising out of this Agreement or any other dispute between the Parties concerning this Agreement then, in that event, the prevailing Party in such action or dispute, whether by final judgment or arbitration award, shall be entitled to recover from the other Party all costs and expenses of suit or claim, including actual attorneys’ fees and expert witness fees. Any judgment, order or award entered in any final judgment or award shall contain a specific provision providing for the recovery of all costs and expenses of suit or claim, including actual attorneys’ fees and expert witness fees (collectively, “Costs”) incurred in enforcing, perfecting and executing such judgment or award. For the purposes of this Section 6.17, Costs shall include, without implied limitation, attorneys’ and experts’ fees, costs and expenses incurred in the following: (i) post judgment motions and appeals, (ii) contempt proceedings, (iii) garnishment, levy and debtor and third party examination; (iv) discovery; and (v) bankruptcy reorganization, restructure or litigation, (vi) receivership or other

01007.0591/726278.7 21
custodial action. The provisions of this Section shall survive any termination of this Agreement.

6.17. Informal Dispute Resolution. The Parties shall attempt in good faith to resolve any differences, controversy or claim arising out of or relating to this Agreement promptly by negotiations between senior officials of the Parties who have authority to settle the difference or controversy. The disputing Party may give the other Party written notice (“Dispute Notice”) that a dispute exists between them.

Within twenty (20) days after receipt of a Dispute Notice, the receiving Party shall submit to the disputing Party a written response. The Dispute Notice and response shall include (a) a statement of each Party’s position and a summary of the evidence in reasonable detail and arguments supporting its position, and (b) the name and title of the official who shall represent that Party. The senior officials shall meet at a mutually acceptable time and place or by telephone conference within thirty (30) days of the date of the Dispute Notice, and thereafter as often as they reasonably deem necessary to exchange relevant information and to attempt to resolve the dispute, up to a maximum of ninety (90) days of the date of the Dispute Notice (“Resolution Period”). In the event any Party fails to provide a response to a Dispute Notice in accordance with this Section or fails to cooperate in the scheduling of, or to attend, the meetings, described above, to resolve the dispute, then, with respect to that Party, the Resolution Period shall be deemed to have run so that the dispute may immediately be subject to legal action.

6.18. Jurisdiction and Venue. Any legal action or proceeding concerning this Agreement shall be filed and prosecuted in the appropriate State of California court in the County of Los Angeles, California. Both Parties hereto irrevocably consent to the personal jurisdiction of that court. City and Owner each hereby expressly waive the benefit of any provision of federal or state law or judicial decision providing for the filing, removal, or change of venue to any other court or jurisdiction, including, without implied limitation, federal district court, due to any diversity of citizenship between City and Owner, due to the fact that City is a party to such action or proceeding or due to the fact that a federal question or federal right is involved or alleged to be involved. Without limiting the generality of the foregoing, City and Owner specifically waive any rights provided to it pursuant to California Code of Civil Procedure Section 394. Owner acknowledges that the provisions of this Section 6.18 are material cons ideration to City for its entry into this Agreement, in that City will avoid the potential cost, expense and inconvenience of litigating in a distant forum.

6.19. Interpretation. City and Owner acknowledge that this Agreement is the product of mutual arms-length negotiation and drafting and that both Parties have been represented by legal counsel in the negotiation and drafting of this Agreement.

Accordingly, the rule of constructi on which provides that ambiguities in a document shall be construed against the drafter of that document shall have no application to the interpretation and enforcement of this Agreement. In any action or proceeding to interpret or enforce this Agreement, the finder of fact may refer to any extrinsic evidence not in direct conflict with any specific provision of this Agreement to determine and give effect to the intention of the Parties with respect to any ambiguities in this Agreement.

6.20. No Waiver. Failure to insist on any occasion upon strict compliance with any of the terms, covenants or conditions hereof shall not be deemed a waiver by any Party of such term, covenant or condition, nor shall any waiver or relinquishment of any rights or powers hereunder at any one time or more times be

01007.0591/726278.7 22
deemed a waiver or relinquishment by any Party of such other right or power at any other time or times.

6.21. Successors and Assigns. The terms, covenants and conditions of this Agreement shall be binding upon and inure to the benefit of the Parties hereto and their voluntary and involuntary successors and assigns.

6.22. No Third Party Beneficiaries. This Agreement has been made and entered into solely for the benefit of the Parties to this Agreement and their respective successors and permitted assigns. Nothing in this Agreement confers any rights or remedies on any other Person. Nothing in this Agreement relieves or discharges the obligation or liability of any third Persons to any Parties to this Agreement. No person or entity not a signatory to this Agreement shall have any rights or causes of action against any Party to this Agreement as a result of that Party’s performance or non- performance under this Agreement.

6.23. No Effect on Eminent Domain Authority. Nothing in this Agreement shall be deemed to limit, modify, or abridge or affect in any manner whatsoever City’s eminent domain powers with respect to any property.

6.24. Warranty Against Payment of Consideration. Owner warrants that it has not paid or given, and will not pay or give, any third party any money or other consideration for obtaining this Agreement. Third parties, for the purposes of this Section 6.24, shall not include persons to whom fees are paid for professional services if rendered by attorneys, financial consultants, accountants, engineers, architects and the like when such fees are considered necessary or desirable by Owner nor shall it include payments to sellers, landlords or real estate brokers.

6.25. Further Acts. City and Owner each agree to take such additional acts and execute such other documents as may be reasonable and necessary in the performance of their obligations hereunder. The foregoing shall not, however, be deemed to require City to exercise its legislative discretion in any particular fashion or to provide to Owner any remedy or claim for damages against City based on the lawful exercise of City’s discretion.

6.26. No Assignment, Transfer, Pledge or Hypothecation. Except for an assignment, transfer or conveyance to a subsidiary or affiliate of Owner (as the same are defined under the securities laws of the United State), Owner may not assign, transfer, encumber or hypothecate its rights and obligations under this Agreement to any person or entity, without the express written consent of City, which shall not be unreasonably withheld, delayed or denied; provided Owner may demonstrate, with documentation acceptable to the City in its reasonable discretion, that the proposed assignee's financial resources are at least comparable to those of Owner and has the demonstrated ability to complete the development of the Property, as contemplated herein as approved under the Specific Plan, and comply with the terms of this Agreement. Any unpermitted assignment, transfer, pledge, encumbrance, or hypothecation of Owner’s rights and obligations hereunder shall not confer any rights upon the purported assignee or transferee hereunder and shall constitute Owner’s default of this Agreement, and City may, without providing Owner notice or opportunity to cure, exercise those remedies available to City pursuant to Section 4.11. Notwithstanding the foregoing, Owner shall have the right to assign this Agreement or any right or obligation hereunder, without obtaining City consent, to its immediate or ultimate parent, or to an affiliate, by providing advance written notice to

01007.0591/726278.7 23
City. An “affiliate” shall mean any legal entity that, at the applicable time, directly or indirectly controls, is controlled with or by, or is under common control with, Owner.

Furthermore, nothing in this Section 6. 26 prevents, prohibits or in any manner constrains or limits the ability of Owner to secure financing, including, but not limited to, the pledge or encumbrance of this Agreement in connection with such financing.

6.27. Relationship of Parties. The Parties shall not be deemed in a relationship of partners or a joint venture by virtue of this Agreement, nor shall either Party be an agent, representative, trustee or fiduciary of the other. Neither Party shall have any authority to bind the other to any agreement.

6.28. Recitals. Each of the Recitals set forth in Article 2 of this Agreement are agreed by the Parties hereto to be true and correct in all material respects and are incorporated by reference into this Agreement as though fully set forth in this Section.

6.29. Non-Dedication of Property. The execution of this Agreement by Owner does not in any way constitute an offer of dedication nor does it result in the dedication of any Owner property for public use or otherwise. [Signatures on following pages]

01007.0591/726278.7 24
IN WITNESS WHEREOF, the Parties have caused their duly authorized representatives to execute this Agreement as of the Effective Date.

CITY OF CARSON,
a California municipal corporation

By:

Lula Davis-Holmes, Mayor
ATTEST:

By:

City Clerk

APPROVED AS TO FORM:

By:

Sunny Soltani, City Attorney

OWNER

SOUTHBAY-CARSON LLC,
a California limited liability company

By: SyWest Holdings LLC,
a California limited liability company

By: Syufy Enterprises,
a California limited partnership

By: Syufy Properties, Inc.,
a California corporation
By:

Name:

Its:

01007.0591/726278.7 25

CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT

State of California )
) ss.

County of Los Angeles )

On ____________________, 2024 before me, _____________________________, a Notary Public, personally appeared
,
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under penalty of perjury under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature (Seal)

A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

01007.0591/726278.7 26

CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT

State of California )
) ss.

County of Los Angeles )

I certify under penalty of perjury under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature (Seal)

01007.0591/726278.7 27

EXHIBIT A
Legal Description of Property

CITY OF CARSON

File #: Version:

Report to Honorable Mayor and City Council
Tuesday, December 3, 2024, 5:00 PM
DISCUSSION 25. To: Honorable Mayor and City Council From: Dr. Khaleah K. Bradshaw, City Clerk CCO Option 1 Subject: CONSIDERATION OF ONLY LOCAL UNCONTESTED APPOINTMENTS TO THE CITY’SCOMMISSIONS, COMMITTEES, AND BOARDS, AND CITY AFFILIATED ORGANIZATIONS BY MAYOR ANDCITY COUNCIL AND CONSIDER ALL (CONTESTED AND UNCONTESTED) APPOINTMENTS TO ALLCOMMISSIONS (CITY COUNCIL) I. SUMMARY
This item is on the agenda to consider only uncontested appointments of City Commission, Committee, andBoard members in accordance with the City Charter, Article VI, by Mayor and City Council. (Exhibit 1) Also, consider all (contested and uncontested) appointments to all commissions except the PlanningCommission and Environmental Commission. Also, consider appointments to City Aﬃliated Organizations. Pursuant to Section 602 of the City Charter provides, in part, the mayor and each member of the city councilmay appoint one member to a position on each City board or City commission, and the remainingmembership positions shall be appointed by the mayor and approved by a majority of the city council,including the three alternates. At the November 19, 2024, City Council meeting, Mayor Davis-Holmes continued this item to a future meeting.

II. RECOMMENDATION
TAKE the following actions:

1. CONSIDER and only APPOINT uncontested members to the City Commissions, Committees, and Boards;

2. CONSIDER and APPOINT all (contested and uncontested) members to all commissions except Planning Commission and Environmental Commission;

3. CONSIDER and APPOINT members to City Aﬃliated Organizations;

4. DIRECT the City Clerk to notify all affected appointments of this action in writing;

5. IF APPLICABLE, DIRECT the City Clerk to post and publish in accordance with the Maddy Act III. ALTERNATIVES
N/A
701 East Carson Street
IV. BACKGROUND
Every two years after the municipal election, most Commission and Board appointments expire. As unscheduled vacancies occur and/or members are frequently absent, it is best practice to consider new appointments.

Invitations to submit an appointment application for all interested person(s) were posted in accordance with the Maddy Act. Applications for individuals requesting appointments were previously provided under separate cover to the Mayor and City Council.

V. FISCAL IMPACT
Funds for member stipends are already budgeted for Fiscal Year 2024-2025.

VI. EXHIBITS
Local Appointments List Prepared by: Dr. Khaleah K. Bradshaw, City Clerk and Tomisha Haywood, Records Management Coordinator

Attachments
Exhibit 1 - December 3, 2024, Agenda Report.pdf
*
** M
a
Mayor's uncontested
Denotes vacated seat
I. COMMISSIONS
[1] Economic Development Commission
Established by: Ordinance No. 00-1191. §1 (CMC §27104.1); Ordinance No. 21-2108 Membership:

Qualification:

Meetings:

Staff Liaison:

Support Staff:

Appointed Term Expires
Aldridge Jr., Ray (LDH)** 12-06-22 11-30-24
Childers, Christopher (CH) 12-06-22 11-30-24
Embry, Darren (LDH) 04-04-23 11-30-24
Kelley, Blake (LDH) 04-04-23 11-30-24
Jimenez, Trini (AR) 12-06-22 11-30-24
Pandolfo, Katie (JH) 12-06-22 11-30-24
Sparrow, Clyde (LDH) 04-04-23 11-30-24
Wallace, Deborah (LDH) 04-04-23 11-30-24
Watar, Nasser (JD) 04-04-23 11-30-24
Cordova, Ted (LDH) Alt. 1 04-04-23 11-30-24
Ibarra, Victor (LDH) Alt. 2 02-06-24 11-30-24
O'Leary, Danielle (LDH) Alt. 3 02-06-24 11-30-24

CITY OF CARSON

LOCAL APPOINTMENTS LIST FOR

COMMISSIONS, COMMITTEES, AND BOARDS
(Pursuant to Government Code Section 54970 et seq.)
NOTICE IS HEREBY GIVEN that the current terms for the following Commissioners, Committee and Board Members will expire as indicated for the respective bodies listed. Any interested resident of the City of Carson, California is eligible to serve on any of the below-named commissions, committees, or boards unless otherwise specified. Applications are available at the City Clerk's Office by request at (310) 952-1720.

The following appointed positions may receive compensation John Raymond, Asst. City Mgr x1773; Saied Naaseh, Dir. of Comm. Dev. x1770 Article VI, §602 of the City Charter: To be qualified for appointment, the member shall be a qualified elector of the City, shall be domiciled in the City for at least sixty (60) days immediately preceding their appointment, and shall continue to reside in the City for the duration of his or her tenure, unless otherwise provided by ordinance.

The mayor and each member of the city council may appoint one member to a position on each City board, committee or commission, and the remaining membership positions shall be appointed by the mayor and approved by a majority of the city council, including the three alternates.
9 members; 3 alternates
Shall be and remain a resident of, or have a place of employment or business in the City of Carson, and be at least 18 years of age. Shall include representatives of all major sectors of the Carson business community as determined in the sole discretion of the City Council.

Sandy Solis, Economic Development Commission Secretary x1325 1st Thursday, 8:00 a.m., Executive Conference Room
Agenda Report December 3, 2024 Exhibit 1 1
[2] Environmental Commission*
Established by: Ordinance No. 70-128; §1 (CMC §2750); Ordinance No. 21-2103 Membership:

Qualification:

Meetings:

Staff Liaison:

Support Staff:

Appointed Term Expires
Vacant (JH) 11-30-24
Swayzer, Ezekiel (LDH) 08-06-24 11-30-24
Hopson, Lillian (LDH)** 12-06-22 11-30-24
Tresvant, Christina (LDH) 07-05-23 11-30-24
Koons, William (JD) 02-07-23 11-30-24
Vacant (AR) 11-30-24
Vacant (LDH) 11-30-24
Taylor, Hourie (CH) 12-06-22 11-30-24
Watkins, Freeman (LDH) 04-04-23 11-30-24
Vacant (LDH) Alt. 1 11-30-24
Vacant (LDH) Alt. 2 11-30-24
Vacant (LDH) Alt. 3 11-30-24
[3] Human Relations Commission*
Established by:

Membership: 9 members (7 general, 2 youth); 3 alternates Qualification:

Meetings: 3rd Wednesday, 6:30 p.m., City Manager Conference Room Staff Liaison: Robert Lennox, Asst. City Manager x1728
Support Staff: Cac Le, Council Aide x1722
Appointed Term Expires
Junio, Teresita (LDH)** 02-06-24 11-30-24
Calhoun, Jill (AR) 12-06-22 11-30-24
Davenport, Kimberley (JH) 04-04-23 11-30-24
Keely, Tina (JD) 02-07-23 11-30-24
Ramos, Jessica (LDH) 04-04-23 11-30-24
Reed, Cassandra (CH) 12-06-22 11-30-24
Russ, Harriett (LDH) 04-04-23 11-30-24
Ifeacho, Dr. Chinyere (LDH) Alt. 1 04-04-23 11-30-24
Viernes, Irene (LDH) Alt. 2 04-04-23 11-30-24
Calidonio, Hector (LDH) *Pending Alt. 3 08-08-24 11-30-24 Atkins, GP (LDH) Youth 04-04-23 11-30-24
Lane, K'hari (LDH) Youth 04-04-23 11-30-24
Shall be and remain a resident of the City of Carson and be at least eighteen (18) years of age at the time of the member's appointment
Shall be a resident of the City of Carson. Youth members shall be 16-21 years of age, enrolled in school at time of appointment, maintain a 2.0 GPA, shall have interest in human relations.

Ordinance No. 74-294; Ordinance No. 87-812, §1; Ordinance No. 89-883,§1 1st Wednesday, 6:30 p.m. (Executive Conference Room)
Jessica Coria, Division Secretary x1823
9 members; 3 alternates
Reata Kulcsar, Innovation & Sustainability Manager x1312 Agenda Report December 3, 2024 Exhibit 1 2
[4] Parks, Recreation and Cultural Arts Commission*
Established by: Ordinance No. 69-65 (CMC §2735); Ordinance No. 21-2106 Membership: 9 members; 3 alternates
Qualification:

Meetings: Last Thursday, 6:30 p.m. (Executive Conference Room) Staff Liaison: Michael Whittiker Jr., Director of Community Services x3571 Support Staff: Kimberly Madrigal, Administrative Secretary x3581 Appointed Term Expires
Cainglet, Jesus-Alex (CH) 12-06-22 11-30-24
Cortado, Kimberly (JH) 06-20-23 11-30-24
Dahilig Jr., Cesar (LDH) 04-04-23 11-30-24
Lawrence, Shannon (LDH) 06-20-23 11-30-24
Gonzalez, Walter (LDH) 04-04-23 11-30-24
Hilliard, Kisa (JD) 02-07-23 11-30-24
Hunter, Edwina (AR) 12-06-22 11-30-24
Langston, DeAnthony (LDH) 04-04-23 11-30-24
Ramos, Oscar (LDH)** 01-17-23 11-30-24
Brown, Kelvin (LDH) Alt. 1 01-23-24 11-30-24
Johnson, Jo Jacqueline (LDH) Alt. 2 04-04-23 11-30-24
Brillantes, Rudolfo (LDH) Alt. 3 04-04-23 11-30-24
[5] Planning Commission*
Established by: Ordinance No. 13, §1 (CMC §2700); § 606 of the City Charter Membership: 9 members; 3 alternates
Qualification:

Monthly Meeting: 2nd and 4th Tuesday, 6:30 p.m. (City Council Chambers) Staff Liaison: Christopher Palmer, Planning Mgr. x1365; McKina Alexander, Sr. Planner x1326 Support Staff: Laura Gonzalez, Planning Secretary x1328 Appointed Term Expires
Diaz, Louie (JD) 02-07-23 11-30-24
Docdocil, Frederick (LDH)** 12-06-22 11-30-24
Guerra, Carlos (LDH) 04-04-23 11-30-24
Vacant (AR) 11-30-24
Huff, Del (LDH) 04-04-23 11-30-24
Wilson, Leticia (LDH) 07-16-24 11-30-24
Mfume, DeQuita (LDH) 01-23-24 11-30-24
Johnson, Clarence (JH) 03-19-24 11-30-24
Thomas, Dianne (CH) 12-06-22 11-30-24
Montecarlo, Jaime (LDH) Alt. 1 04-02-24 11-30-24
Vacant (LDH) Alt. 2 11-30-24
Vacant (LDH) Alt. 3 11-30-24
Resident of the City of Carson
Resident of the City of Carson
Agenda Report December 3, 2024 Exhibit 1 3
[6] Public Relations Commission*
Established by: Ordinance No. 01-1239, §2 (CMC §27105.1) Membership: 9 members; 3 alternates
Qualification:

Meetings: 4th Tuesday, 12:00 p.m. (City Manager Conference Room) Staff Liaison: Margie Revilla-Garcia, Public Information Manager x1741 Support Staff: Christine Foisia, Senior Clerk x1740
Appointed Term Expires
Eatman, Sonya (LDH) Community Representative 04-04-23 11-30-24 Gomez, Freddie (LDH)** Community Representative 12-06-22 11-30-24 Stewart, Linda (LDH) Community Representative 04-04-23 11-30-24 Vacant (AR) Community Representative 11-30-24
Ross, Dorothy (JD) Public Relations Specialist 02-07-23 11-30-24 Nunley, Madalyn (LDH) Public Relations Specialist 04-04-23 11-30-24 Pitcher, Pamela (LDH) Public Relations Specialist 04-04-23 11-30-24 Smith, Byron (CH) Public Relations Specialist 03-06-24 11-30-24 Price, Dr. Denice (JH) Public Relations Specialist 04-04-23 11-30-24 Guillory, Rachelle (LDH) Alt. 1 04-04-23 11-30-24
Waddis, Dorcas (LDH) Alt. 2 04-04-23 11-30-24
Lustina, Lilibeth (LDH) Alt. 3 05-16-23 11-30-24
[7] Public Safety Commission*
Established by: Ordinance No. 99-1160 § 1; Ordinance No. 01-1239 § 1 (CMC §27103.6); Ordinance No. 21-2104
Membership: 9 members; 3 alternates
Qualification:

Meetings: 3rd Thursday, 6:30 p.m. (Executive Conference Room) Staff Liaison: Priscilla Palma, Division Secretary x1787 Support Staff: Vacant
Appointed Term Expires
Allen, Jeffrey (LDH) 04-04-23 11-30-24
Arnold, Keith (LDH) 04-04-23 11-30-24
Flinton, Lawrence (AR) 08-06-24 11-30-24
Dacus, Samuel (LDH) 04-04-23 11-30-24
Dorsey, Donnie (CH) 12-06-22 11-30-24
Lewis, Prentiss (JH) 04-04-23 11-30-24
Rivers, Angela (LDH) 04-04-23 11-30-24
Romero, Heidi (LDH)** 12-06-22 11-30-24
Cogut, Louis (JD) 08-06-24 11-30-24
Wilson, Michael (LDH) Alt. 1 05-16-23 11-30-24
Brown, Randy (LDH) Alt. 2 03-06-24 11-30-24
Childs, Aisha (LDH) Alt. 3 04-04-23 11-30-24
Shall be a resident of the City of Carson and be at least eighteen (18) years of age at the time of the member’s appointment.

Shall reside or be employed in the City of Carson and be at least eighteen (18) years of age at the time of the member’s appointment.

Agenda Report December 3, 2024 Exhibit 1 4
[8] Public Works Commission*
Established by: Ordinance No. 99-1181 § 2 (CMC § 2798.6) Membership: 9 members; 3 alternates
Qualification:

Meetings: 2nd Monday, 6:30 p.m. (Executive Conference Room) Staff Liaison: Gilbert Marquez, Principle City/Civil Engineer x1813 Support Staff: Taelour C. James, Division Secretary x1801 Appointed Term Expires
Baddeley, Kevin (AR) 12-06-22 11-30-24
Calhoun, James (JD) 02-07-23 11-30-24
Fe'esago, Uli (LDH) 04-04-23 11-30-24
McNichols, Ryan (LDH)** 08-06-24 11-30-24
Howard, Kobii (LDH) 04-04-23 11-30-24
Benson, Melvin (CH) 07-18-23 11-30-24
Nweke, Chike (LDH) 07-16-24 11-30-24
Martin, Jr., Marion (LDH) 09-05-23 11-30-24
Vacant (JH) 11-30-24
Obiora, Emmanuel (LDH) Alt. 1 08-06-24 11-30-24
Cottrell, John (LDH) Alt. 2 04-04-23 11-30-24
Vacant (LDH) Alt. 3 11-30-24
[9] Senior Citizens Advisory Commission*
Established by: Ordinance No. 97-1119, § 1 (CMC § 2799.6) Membership: 11 members; 3 alternates
Qualification:

Meetings: 2nd Monday, 4:00 p.m. (Community Center, Carson/Dominguez room) Staff Liaison: Mike Whittiker Jr., Dir. of Comm. Srvs. x1780; Dani Cook, Human Srvs. Supv. X04/04/2380 Support Staff:

Appointed Term Expires
Graves, Shirley (LDH)** 05-16-23 11-30-24
Lopez, Delia (LDH) 11-21-23 11-30-24
Cole, Daniel (AR) 12-06-22 11-30-24
Dunn, Linda (LDH) 04-04-23 11-30-24
Bates, Billye (LDH) 05-16-23 11-30-24
Patterson, Patricia (LDH) 05-16-23 11-30-24
Ronquillo, Myrna (JD) 02-07-23 11-30-24
Ruiz-Raber, Julie (CH) 12-06-22 11-30-24
Seymore, Dr. Vergie (JH) 04-04-23 11-30-24
Simpson-Lott, Darlene (LDH) 04-04-23 11-30-24
Walker, Itelia (LDH) 04-04-23 11-30-24
Brown, LaRhonda (LDH) Alt. 1 04-02-24 11-30-24
Leverette, Ernestine (LDH) Alt. 2 06-06-23 11-30-24
Davis, Pauline (LDH) Alt. 3 08-06-24 11-30-24
Brenda Reed, Senior Clerk x1775;
Have interest, experience or ability in construction, transportation, traffic, or circulation areas to ensure that traffic, vehicle parking, bikeways, and transportation systems and other City facilities are regulated and constructed in a manner calculated to best provide for the safety and welfare of the public. Shall be and remain a resident of, or have a place of employment or business in, the City of Carson, and be at least eighteen (18) years of age at the time of the member’s appointment.

Resident of the City of Carson and be at least 50 years of age at the time of appointment.

Agenda Report December 3, 2024 Exhibit 1 5
[10] Veterans Affairs Commission*
Established by: Ordinance No. 99-1154, § 1 (CMC § 27102.6) Membership: 11 members; 3 alternates
Qualification:

Meetings: 3rd Monday, 6:00 p.m. (Veterans SportsComplex - Activity Room) Staff Liaison: Kisheen Tulloss, Council Aide x1711
Support Staff: Mikala Multiauaopele, Division Secretary x3557 Appointed Term Expires
Batucal, Arthur (JH) 04-04-23 11-30-24
Boyd, Robert (JD) 02-07-23 11-30-24
Branch, Jr., Roger (LDH) 04-04-23 11-30-24
Da Silva, Manuel (LDH) 04-04-23 11-30-24
Raber, Brian (CH) 12-06-22 11-30-24
Salomon, Emmanuel (LDH) 04-04-23 11-30-24
Galeon, Romeo (LDH)**Pending 08-06-24 11-30-24
Woods, Richard (LDH) 04-04-23 11-30-24
Woods, Thomas (LDH) 04-04-23 11-30-24
Seay, Al (LDH) 11-07-23 11-30-24
Wilvert, Karl (AR) 12-06-22 11-30-24
Vacant (LDH) Alt. 1 11-30-24
Vacant (LDH) Alt. 2 11-30-24
Mosequera, Nemie P. (LDH) Alt. 3 04-04-23 11-30-24
Shall be a resident of the City of Carson and be at least eighteen (18) years of age at the time of the member’s appointment.

Agenda Report December 3, 2024 Exhibit 1 6
[11] Women's Issues Commission*
Established by: Ordinance No. 02-1246, § 1 (CMC § 27106.6) Membership: 9 members; 3 alternates
Qualification:

Meetings: 4th Monday, 6:00 p.m. (City Manager Conference Room) Staff Liaison: Ravynne Staine, Council Aide x1733
Support Staff: Vacant
Appointed Term Expires
Dela Cruz-Manio, Connie (LDH) 04-04-23 11-30-24
Fielder, Yolanda (LDH) 04-04-23 11-30-24
Fields-Robinson, Dr. Leandrea (LDH)** 12-06-22 11-30-24 Foster, Carolyn (LDH) 04-04-23 11-30-24
Koons, Fe (JD) 02-07-23 11-30-24
Odom Houze, Susan (JH) 04-04-23 11-30-24
Price, Dr. Greta (AR) 12-06-22 11-30-24
Robinson, Prescious (CH) 12-06-22 11-30-24
Tresvant, Sheila (LDH) 04-04-23 11-30-24
Graves, Keichun (LDH) Alt. 1 06-06-23 11-30-24
Mackson, Monique (LDH) Alt. 2 06-06-23 11-30-24
Johnson, Veronica (LDH) Alt. 3 08-06-24 11-30-24
[12] Youth Commission*
Established by: Ordinance No. 98-1132, § 1 (CMC § 27100.6 ) Membership: 11 members; 3 alternates
Qualification:

Meetings: 2nd Wednesday, 7:00 p.m. (Executive Conference Room) Staff Liaison: Brian Legaspi, Council Aide x1721
Support Staff: Vacant
Appointed Term Expires
Mitchell, Hannah (LDH) 06-06-24 06-30-24
Moore, Joshua (JH) 06-06-24 06-30-24
Redway, Khristopher (LDH) 06-06-24 06-30-24
Estrada, Juan (LDH) 06-06-24 06-30-24
Villasana, Andrea (JD) 07-02-24 06-30-25
Vacant (LDH) 06-30-24
Colson, Lewis (LDH)** 06-06-24 06-30-24
Smith, Zoey (CH) 06-06-24 06-30-24
Williams, Liv (LDH) 06-06-24 06-30-24
Vacant (AR) 06-30-24
Vacant (LDH) 06-30-24
Mitchell, Jazcidi (LDH) Alt. 1 06-06-24 06-30-24
Homna, Kayla (LDH) Alt. 2 06-06-24 06-30-24
Macias, Lea (LDH) Alt. 3 06-06-24 06-30-24
Resident of the City of Carson and be at least 13, but not more than 18 years of age at the time of appointment.

Shall be a resident of the City of Carson or work in the City of Carson during their tenure on the Commission and shall be at least eighteen (18) years of age at the time of the member’s appointment.

Agenda Report December 3, 2024 Exhibit 1 7
II. BOARDS & COMMITTEES
[13] Measure C and Measure K Budget Oversight Committee Established by:

Membership: 5 members; 2 alternates
Qualification: Resident of the City of Carson.

Meetings: 2nd Tuesday, 6:30p.m. (Community Center)
Staff Liaison: William Jefferson, Director of Finance x1756 Support Staff: Vicki Hernandez, Senior Clerk x1744
Appointed Term Expires
Dorsey-Reeves, Vera (CH) 04-04-23 11-30-24
Vacant (AR) 11-30-24
Hunter, Cynthia (LDH) 04-04-23 11-30-24
Momoli, Nora (JD) 02-07-23 11-30-24
Vacant (JH) 11-30-24
Vacant (LDH) Alt. 1 11-30-24
Vacant (LDH) Alt. 2 11-30-24
[14] Mobilehome Park Rental Review Board*
Established by: Ordinance No. 79-485U, §4702; § 607 of the City Charter Membership:

Qualification:

Meetings: 2nd and 4th Wednesday, 6:30 p.m. (City Council Chambers) Staff Liaison: Tara Matthew, Interim Housing Program Manager x1708 Support Staff: Sandy Solis, Division Secretary x1325
Appointed Term Expires
Vacant (JH) At-large 11-30-24
Valdez, Daniel (JD) At-large 02-07-23 11-30-24
Vacant (AR) At-large 11-30-24
Clark Harris, Dr. Alice (LDH) 04-04-23 11-30-24
Muhammad, Nafis (LDH) 04-04-23 11-30-24
Perez, Karey (LDH) 04-04-23 11-30-24
Hayes, Phyllis (LDH) 04-04-23 11-30-24
Dzikowski, Barbara (LDH) Park owner 04-04-23 11-30-24
Forbath, Susy (LDH) Park owner 04-04-23 11-30-24
Horton, Maria (LDH) Park owner Alt. [1] 04-04-23 11-30-24 Vacant (LDH) Park owner Alt. [2] 11-30-24
Gonzalez, Leonor (LDH)** Resident homeowner 11-21-23 11-30-24 King, Tom (CH) Resident homeowner 01-17-23 11-30-24
Davis, William (LDH) Resident homeowner Alt. [1] 04-04-23 11-30-24 Richardson, Sheila (LDH) Resident homeowner Alt. [2] 08-08-24 11-30-24 At-large Alt. [1]
At-large Alt. [2]
At-large Alt. [3]
Ordinance No. 09-1423 (CMC §61119); Amended by Resolution No. 19-027; Amended by Resolution No. 21-030
At-large Alt. [4]
See membership.
7 members (2 resident homeowners, 2 park owners, 3 at-large who are residents of the City and not homeowners, park owners, landlords, property managers or tenants in multifamily housing); 8 alternates (2 resident homeowners, 2 park owners, 4 at-large) Article VI, §602 of the City Charter: To be qualified for appointment, the member shall be a qualified elector of the City, shall be domiciled in the City for at least sixty (60) days immediately preceding their appointment, and shall continue to reside in the City for the duration of his or her tenure, unless otherwise provided by ordinance.

Agenda Report December 3, 2024 Exhibit 1 8
[15] Relocation Appeals Board
Established by: Ordinance No. 74-313 (CMC § 21004)
Membership: 9 members; 3 alternates
Qualification: Resident of the City of Carson.

Meetings: Only when necessary
Staff Liaison:

Support Staff: Sandy Solis, Economic Development Liaison x1325 Appointed Term Expires
Batucal, Dennis (LDH) 04-04-23 11-30-24
Evans, Linda (LDH) 04-04-23 11-30-24
Tate, Dorothy (LDH)** 01-23-24 11-30-24
Guray, Jr., Tancredo "Jun" (JD) 02-07-23 11-30-24
Hemphill, Dr. Afia (LDH) 04-04-23 11-30-24
Anson, Jr., Oscar (LDH) 01-23-24 11-30-24
Vacant (CH) 11-30-24
[Vacant] (JH) 11-30-24
Vacant (AR) 11-30-24
Vacant (LDH) Alt. 1 11-30-24
Vacant (LDH) Alt. 2 11-30-24
Vacant (LDH) Alt. 3 11-30-24
Saied Naaseh, Director of Community Development x1770
Agenda Report December 3, 2024 Exhibit 1 9
III. SPECIAL COMMITTEE
[16] General Plan Advisory Committee
Established by Minute Action 10-03-17; Amended by Resolution No. 19-029; Amended by Resolution No. 21-031 Membership: 7 members; 2 alternates
Meetings: Only when necessary
Staff Liaison: McKina Alexander, Senior Planner x1326
Support Staff: Planning Technician x1327
Appointed Term Expires
Mayor Lula Davis-Holmes (LDH) 04-04-23 11-30-24
Councilmember Jim Dear (JD) 04-04-23 11-30-24
Brimmer, Charlotte (LDH)** 04-04-23 11-30-24
Dudley-Kimble, Monica (CH) 04-04-23 11-30-24
Gonzalez, Leonor (AR) 04-04-23 11-30-24
Hamilton, Dr. John (JH) 04-04-23 11-30-24
Sheriff Department Representative (LDH) 04-04-23 11-30-24 Cottrell-Fulbright, Lisa (LDH) Alt. 1 04-04-23 11-30-24 Lott, Aminika (LDH) Alt. 2 04-04-23 11-30-24
IV. SPECIAL BOARD
[17] Carson Reclamation Joint Powers Authority (CRJPA)
Established by Resolution No. 15-01-CRJPA; Resolution No. 21-02-CRJPA Membership: 5 members
Meetings: 1st Monday, 4:00 p.m. (Helen Kawagoe Council Chambers) Staff Liaison: John Raymond, Executive Director x1773
Support Staff: Sylvia Rubio, Executive Assistant x1318
Appointed Term Expires
Authority Chair Lula Davis-Holmes 06-07-21 06-07-26
Vice Chair Cedric Hicks 06-07-21 06-07-26
Board Member Ray Aldridge, Jr. 01-26-21 01-26-26
Board Member Lillian Hopson 01-21-21 01-21-26
Board Member Dianne Thomas 01-21-21 01-21-26
Agenda Report December 3, 2024 Exhibit 1 10
V. COUNCIL SUB-COMMITTEES
[18] Bingo/Fireworks/Refuse Ad Hoc Committee
Established by Minute Order 04-02-19
Appointed
Mayor Davis-Holmes 04-06-21
Councilmember Dear 04-06-21
[19] Community Development/Housing/Logistics & Transit Standing Committee Established by Minute Order 04-02-19
Appointed
Mayor Davis-Holmes 06-01-21
Councilmember Dear 06-01-21
[20] Dignity Health Sports Park/CSUDH/Community Center Standing Committee Established by Minute Order 04-02-19
Appointed
Councilmember Hicks 06-01-21
Mayor Pro Tempore Hilton 06-01-21
[21] Legislative Ad Hoc Committee
Established by Minute Order 02-16-21
Appointed
Mayor Davis-Holmes 07-16-24
Councilmember Hicks 07-16-24
[22] City Hall/Community Center Renovation Ad Hoc Committee Established by Minute Order 01-26-21
Appointed
Mayor Davis-Holmes 01-26-21
Mayor Pro Tempore Hilton 01-26-21
[23] Economic Development/E-Commerce Ad Hoc Committee
Establised by Minute Order 03-02-21
Appointed
Mayor Davis-Holmes 03-02-21
Councilmember Hicks 03-02-21
[24] Conditional Use Permit Ad Hoc Committee
Established by Minute Order 04-05-22
Appointed
Mayor Davis-Holmes 04-05-22
Mayor Pro Tempore Hilton 04-05-22
Agenda Report December 3, 2024 Exhibit 1 11
[25] Short Term Rentals Ad Hoc Committee
Established by Minute Order 03-02-21
Appointed
Mayor Davis-HolmesCouncilmember Hicks 03-02-21
Mayor Pro Tempore Hilton 03-02-21
[26] Housing Ad Hoc Committee
Established by Minute Order 03-16-21
Appointed
Mayor Davis-Holmes 03-16-21
Councilmember HiltonCouncilmember Dear 03-16-21
[27] Diversity, Equity and Inclusion Ad Hoc Committee
Established by Minute Order 09-07-21
Appointed
Mayor Pro Tempore Hilton 09-07-21
Councilmember Rojas 03-01-22
[28] Standard Management Procedures and Special Events Ad Hoc Committee Established by Minute Order 01-04-22
Appointed
Mayor Davis-Holmes 01-04-22
Mayor Pro Tempore Hilton 01-04-22
[29] Cell 2 Settlement Ad Hoc Committee
Established by Minute Order 02-07-22 (Carson Reclamation Authority) Appointed
Mayor Davis-HolmesAuthority Chair Lula Davis-Holmes 02-07-22 Mayor Pro Tempore HiltonBoard Member Dianne Thomas 02-07-22 [30] School Safety Ad Hoc Committee
Established by Minute Order 02-15-22
Appointed
Mayor Pro Tempore Hilton 02-15-22
Councilmember Rojas 02-15-22
Captain Jones/Lieutenant Bolder 02-15-22
[31] Carson Finance and Audit Committee
Established by Minute Order 06-20-23
Appointed
Mayor Davis-Holmes 06-20-23
Councilmember Rojas 06-20-23
[32] Short-Term Rentals Ad Hoc Committee
Established by Minute Order 10-03-23
Appointed
Mayor Davis-Holmes 10-03-23
Mayor Pro Tempore Hilton 10-03-23
[33] No Bail Policy Ad Hoc Committee
Established by Minute Order 10-03-23
Appointed
Mayor Pro Tempore Hilton 10-03-23
Councilmember Rojas 10-03-23
City Attorney Soltani 10-03-23
Agenda Report December 3, 2024 Exhibit 1 12
[34] Special Event Ad Hoc Committee
Established by Minute Order 06-06-24
Appointed
Mayor Davis-Holmes 06-06-24
Mayor Pro Tempore Dr. Hilton 06-06-24
[35] LA '28 Olympics Ad Hoc Committee
Established by Minute Order 07-16-24
Appointed
Mayor Davis-Holmes 07-16-24
Mayor Pro Tempore Dr. Hilton 07-16-24
VI. CITY AFFILIATED ORGANIZATIONS
[36] California Contract Cities Association
Appointed
Councilmember Dear Delegate 04-06-21
Councilmember Hicks Alt. 04-06-21
[37]
Appointed
Councilmember Hicks Delegate 11-15-22
Councilmember Dear Alt. 1 11-15-22
Staff Member Reata Kulcsar Alt. 2 11-15-22
[38] County of Los Angeles Public Library Commission
Appointed
Councilmember Dear Delegate 05-13-20
[39]
Appointed
Mayor Davis-Holmes Delegate 01-26-21
Councilmember Dear Alt. 01-26-21
[40]
Appointed Term Expires
Councilmember Dear Delegate 01-26-21 01-05-26
(effective 01-03-22)
Ord. No. 17-1633; LACCE Joint Powers Agreement (Authority) Clean Power Alliance
The District’s governing power is vested in its 35 members of the Board of Trustees. One trustee is appointed by each of the 34 cities and the County Board of Supervisors appoints one to represent unincorporated areas of Los Angeles County.

To be appointed, the member must reside in and be a resident voter of the representative city (or county for county member) in the District. Board member duties and responsibilities include setting policy, establishing the budget, approving expenditures, and retaining legal counsel. The vector Trustee appointment and term are governed by the State Health and Safety Code and begin and end on the first Monday in January. Additionally, the State Health and Safety Code does not allow for alternate members to be appointed.

Greater Los Angeles County Vector Control District (Formerly SE Mosquito Abatement)* Automatic designation of Mayor as Delegate per Health and Safety Code Section 4730. City Council as governing body, must select an alternate to act in place of presiding officer (Mayor) in absence, inability, or refusal to act.

County Sanitation Districts of Los Angeles (Dist. No. 8)* Agenda Report December 3, 2024 Exhibit 1 13
[41] L.A. County City Selection Committee
Appointed
Mayor Davis-Holmes Delegate 01-26-21
Mayor Pro Tempore Hilton Alt. 01-23-24
[42] League of California Cities
Appointed
Councilmember Rojas Delegate 03-01-22
Mayor Pro Tempore Hilton Alt. 1 01-26-21
Councilmember Dear Alt. 2 01-26-21
[43] League of California Cities (Los Angeles Co. Division) Appointed
Councilmember Dear Delegate 01-26-21
Mayor Pro Tempore Hilton Alt. 1 01-26-21
Councilmember Rojas Alt. 2 03-01-22
Per Government Code Section 50270, the membership of each such City Selection Committee shall consist of the Mayor of each city within the county. Members of the LA County City Selection Committee include the Mayor of each city within Los Angeles County. Each city appoints an elected official as a delegate to the City Selection Committee; it usually is the Mayor. The term of office for each Member of the LA County City Selection Committee coincides with City Mayor terms, and the Committee meets three or four times a year, at the call of the Chairman. Their duties are to appoint City representatives to such Boards, Commissions and Agencies as may be required by law, i.e., LAFCO, South Coast Air Quality Management District, Los Angeles County Metropolitan Transportation Authority, Los Angeles County Hazardous Waste Management Advisory Committee; and to nominate for appointment Members to the California Coastal Commission. Nominations for the City Selection Committee appointees to the MTA are made by the Sector Subcommittees for the Sectors whose representatives’ terms are expiring. The cities assigned to one of the four regions in Los Angeles County. Nominations for the City Selection Committee appointees to the MTA are made by the Sector Subcommittees for the Sectors whose representatives’ terms are expiring. The cities assigned to one of the four regions in Los Angeles County (North County/San Fernando Valley, San Gabriel Valley, Southeast Long Beach and Southwest Corridor) shall meet as a Sector Subcommittee. Each candidate with a majority weighted vote will then be nominated from that Sector for consideration for appointment to the MTA.

Agenda Report December 3, 2024 Exhibit 1 14
[44] National League of Cities
Appointed
Councilmember Hicks Delegate 01-26-21
Mayor Pro Tempore Hilton Alt. 1 01-26-21
Councilmember Dear Alt. 2 01-26-21
[45] South Bay Cities Council of Govts (Joint Powers Authority) Appointed
Councilmember Hicks Delegate 01-26-21
Councilmember Dear Alt. 01-26-21
[46] South Bay Workforce Investment Board
Appointed Term Expires
Ted Cordova Member 06-18-24 06-30-28
Jeffrey Jennison Member 06-18-24 06-30-28
Janice Jimenez Member 07-01-21 06-30-25
Tamala Lewis Member 07-01-19 06-30-23
Tami Lorenzen-Fanselow Member 07-01-19 06-30-23
[47] Southern California Association of Governments (SCAG) Appointed
Mayor Pro Tempore Hilton Delegate 01-26-21
Mayor Davis-Holmes Alt. 1 01-26-21
Councilmember Dear Alt. 2 01-26-21
[48] U.S. Conference of Mayors
Appointed
Mayor Davis-Holmes Delegate 01-26-21
Councilmember Rojas Alt. 1 03-01-22
Councilmember Hicks Alt. 2 01-26-21
[49] West Basin Water Association
Appointed
Councilmember Dear Delegate 01-26-21
Councilmember Hicks Alt. 01-26-21
[50] LGBTQ+ Ad Hoc Committee
Established by Minute Order 11-01-22
Appointed
Mayor Pro Tempore Hilton 11-01-22
Councilmember Rojas 11-01-22
Mayor Davis-Holmes Alternate
[51] Grocery Store Ad Hoc Committee
Established by Minute Order 06-18-24
Appointed
Mayor Pro Tempore Hilton Member 06-18-24
Councilmember Hicks Member 06-18-24
Agenda Report December 3, 2024 Exhibit 1 15

CITY OF CARSON

File #: Version:

Report to Honorable Mayor and City Council
Tuesday, December 3, 2024, 5:00 PM
ORDINANCE SECOND READING 26. To: Honorable Mayor and City Council From: John Raymond, CRA Executive Director and Assistant City Manager CD Administration Subject: SECOND READING OF ORDINANCE NO. 24-2415, ADOPTION OF "AN ORDINANCE OF THECITY COUNCIL OF THE CITY OF CARSON, CALIFORNIA, IN CONNECTION WITH THE COMMUNITYFACILITIES FINANCING DISTRICT NO. 2012-2 (THE BOULEVARDS AT SOUTH BAY-CAPITALIMPROVEMENTS) OF THE CITY OF CARSON, AUTHORIZING THE CESSATION OF THE LEVY RELATEDSPECIAL TAXES AND THE EXTINGUISHMENT AND CANCELLATION OF ALL RELATED LIENS" (CITYCOUNCIL AS BOARD OF CFD 2012-2) I. SUMMARY
On November 19, 2024 under Item No. 24 of Council Agenda, City Council voted 5-0 to introduce Ordinance No. 24-2415 (Exhibit No.1) This item transmits a request for City Council to conduct a Second Reading and adopt Ordinance No. 24-2415.

II. RECOMMENDATION

1. Acting As the Legislative Body Of Community Facilities District No. 2012-2, CONDUCT a Second Reading by title only and with further reading waived, and ADOPT Ordinance No. 24-2415 entitled “ORDINANCE OF THE

CITY COUNCIL OF THE CITY OF CARSON, CALIFORNIA, IN CONNECTION WITH THE COMMUNITY FACILITIES FINANCING DISTRICT NO. 2012-2 (THE BOULEVARDS AT SOUTH BAY-CAPITAL IMPROVEMENTS) OF THE

CITY OF CARSON, AUTHORIZING THE CESSATION OF THE LEVY RELATED SPECIAL TAXES AND THE EXTINGUISHMENT AND CANCELLATION OF ALL RELATED LIENS"
III. ALTERNATIVES
TAKE any action the City Council deems appropriate that is consistent with the requirements of the law.

IV. BACKGROUND
At the November 19, 2024 regular meeting of the Carson City Council, acting as the Legislative Body of Community Facilities District No. 2012-2, the City Council introduced Ordinance No. 24-2415. The City Council voted 5-0 to introduce Ordinance No. 24-2415 for ﬁrst reading. (Exhibit No. 1) 701 East Carson Street
Pursuant to the Mello-Roos Community Facility Act of 1982, on September 18, 2012, the City Council established the Community Facilities District No. 2012-2 (The Boulevards at South Bay-Capital Improvements) of the City of Carson (“CFD No. 2012-2”), pursuant to Council Resolution 12-092 and Ordinance 12-1494 (the “2012 Ordinance”). The 2012 Resolution authorized, among other things, the levy of a special tax upon the property subject to CFD No. 2012-2, consisting of approximately 157 acres of real property located within the City of Carson, commonly known today as the Cal Compact Landﬁll or "The 157 Acre Site" (the “Property”), the issuance of bond indebtedness in an aggregate principal amount of up to $30 million, and the establishment of an appropriations limit, for the purpose of funding public improvements on the Property. CFD 2012-2 was largely established to reimburse the previous owner of the Property, Carson Marketplace, LLC, to be reimbursed for the construction of certain site infrastructure through the levy and issuance of bonds.

A Notice of Special Tax Lien for Community Facilities District No. 2012-2 of the City of Carson was recorded on September 28, 2012, as Instrument No. 20121467002 in the County of Los Angeles Recorder’s Oﬃce.

Since its creation in 2012, however, CFD No. 2012-2 has never levied a special tax upon any owner of the Property as no bonds were sold or issued and CFD No. 2012 has not incurred any bond indebtedness, nor has CFD No. 2012-2 levied any special tax assessments upon any owner(s) of the Property and CFD No. 2012-2 has no funds or assets.

The CRA, working with the Property developers, is working on a new Rate and Method of Apportionment (RMA) for CFD 2012-1, the district established to cover the ongoing annual cost for the operation of the remedial systems on the Property. In the next several months staff will return to City Council with an ordinance replacing that CFD with an updated RMA for the ongoing site maintenance. In the meantime, this ordinance cease the levy of any special tax within CFD No. 2012-2, which will be replaced instead with a set of Covenants, Codes, & Restrictions recorded against the owners covering a number of issues including a pro rata share of non-remedial Infrastructure maintenance.

V. FISCAL IMPACT
None.

VI. EXHIBITS

1. Ordinance No. Ordinance No. 24-2415

Attachments
ORDINANCE NO. 24-2415
01223.0019/1029420.1

ORDINANCE NO. 24-2415

Page 1 ends

ORDINANCE NO. 24-2415

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CARSON, CALIFORNIA, IN CONNECTION WITH THE COMMUNITY FACILITIES FINANCING DISTRICT NO. 2012-2 (THE

BOULEVARDS AT SOUTH BAY -CAPITAL IMPROVEMENTS) OF THE CITY OF CARSON,

AUTHORIZING THE CESSATION OF THE LEVY RELATED SPECIAL TAXES AND THE

EXTINGUISHMENT AND CANCELLATION OF ALL RELATED LIENS

WHEREAS, pursuant to the Mello-Roos Community Facility Act of 1982 (as amended, the “Act”), on September 18, 2012, the City Council (the “Council”) of the City of Carson (the “City”) established the Community Facilities District No. 2012-2 (The Boulevards at South Bay-Capital Improvements) of the City of Carson (“CFD No. 2012 -2”), pursuant to Council Resolution 12 -092 (“2012 Resolution”) , Council Resolution No. 12-094, and Ordinance No. 12-1494 (the “2012 Ordinance”); and

WHEREAS, the 2012 Resolution and the 2012 Ordinance authorized, among other things, the levy of a special tax upon the property subject to CFD No. 2012-2, consisting of approximately 157 acres of real property located within the City of Carson, generally located along the I-405, south of Del Amo Blvd. and east of Main St. (the “Property”), the issuance of bond indebtedness in an aggregate principal amount of up to $30 million, and the establishment of an appropriations limit , for the purpose of funding publ ic improvements; and

WHEREAS, pursuant to the 2012 Resolution and the 2012 Ordinance, a Notice of Special Tax Lien for Community Facilities District No. 2012 -2 of the City of Carson (the “Notice of Special Tax Lien”) was recorded on September 28, 2012, as Instrument No. 20121467002 in the County of Los Angeles Recorder’s Office (the “Official Records”); and

WHEREAS, CFD No. 2012-2 has never levied a special tax upon any owner of the Property as no bonds were sold or issued and CFD No. 2012 has not incurred any bond indebtedness , nor has CFD No. 2012-2 levied any special tax assessments upon any owner(s) of the Property and CFD No. 2012-2 has no funds or assets; and

WHEREAS, the City now desires to cease the levy of any special tax within CFD No. 2012-2.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CARSON, CALIFORNIA DOES ORDAIN AS FOLLOWS:

SECTION 1. RECITALS. The foregoing recitals are true and correct, and are incorporated herein as findings of fact.

SECTION 2. ALL POTENTIAL EXISTING AND FUTURE LIENS EXTINGUISHED UNDER CFD. The Council, acting in its capacity as the legislative body of CFD No. 2012-2, declares and determines that the obligation to pay special taxes relating to CFD No. 2012-2 with respect to the Property shall cease, and any outstanding liens against such Property shall be extinguished and canceled.

SECTION 3. CITY / CFD NO. 2012-2 NOT OBLIGATED TO PAY DEBT. The City finds and determines CFD No. 2012-2 is not authorized to issue any bond or indebtedness or issue any future special taxes upon the Property and there is no outstanding debt for the City or CFD No 2012-2 to pay. 01223.0019/1029420.1

ORDINANCE NO. 24-2415

Page 2 ends

SECTION 4: CITY CLERK AUTHORIZATION. The City Clerk is hereby directed to cause to be recorded within the Official Records an addendum to the Notice of Special Tax Lien, which shall state that the CFD No. 2012-2 and all associated obligations contained therein (including any special taxes) shall be cancelled and shall be deemed terminated , and the City Clerk is authorized to execute any other documentation in accordance with the purposes for which this Ordinance has been adopted.

SECTION 5. SEVERABILITY. If any section, subsection, sentence, clause, phrase, or portion of this Ordinance is, for any reason, held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance.

SECTION 6. EFFECTIVE DATE. This Ordinance shall be in full force and effect thirty (30) days after its adoption.

SECTION 7. CERTIFICATION. The City Clerk shall certify to the adoption of this Ordinance, and shall cause the same to be posted and codified in the manner required by law.

[SIGNATURES ON THE FOLLOWING PAGE]

01223.0019/1029420.1

ORDINANCE NO. 24-2415

Page 3 ends

PASSED, APPROVED and ADOPTED at a regular meeting of the City Council on this 3rd day of December, 2024.

APPROVED AS TO FORM:

_______________________________ ________________________________ Sunny K. Soltani, City Attorney Lula Davis-Holmes, Mayor

ATTEST:

__________________________________
Dr. Khaleah K. Bradshaw, City Clerk

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.

CITY OF CARSON )

I, Dr. Khaleah K. Bradshaw, City Clerk of the City of Carson, California, hereby attest to and certify that the foregoing ordinance, being Ordinance No. 24-2415 passed first reading on the 19th day of November, 2024, adopted by the Carson City Council at its meeting by the following roll call vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

RECUSED: COUNCIL MEMBERS:

_____________________________
Dr. Khaleah K. Bradshaw, City Clerk

01223.0019/1029420.1

ORDINANCE NO. 24-2415

Page 4 ends

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.

CITY OF CARSON )

I, Dr. Khaleah K. Bradshaw, City Clerk of the City of Carson, California, do hereby certify that Ordinance No. 24-2415 has been duly and regularly published according to law and the order of the City Council of said City and that same was so published in Our Weekly, newspaper of general circulation on the following date:

Adopted Ordinance: _____________________________________

In witness whereof, I have hereunto subscribed my name this ______ day of _______________, 2024.

______________________________
Dr. Khaleah K. Bradshaw, City Clerk

Carson City CouncilDecember 3, 2024

Carson City Council
December 3, 2024