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(v) Section 1810 providing that eight hours of labor shall constitute a day’s work; and (vi) Section 1813 prescribing penalties for violations of the provisions concerning eight - hour work days and forty-hour work weeks. If Grantee violates the foregoing or any other Prevailing Wage Laws, Grantee shall be solely liable for the cost thereof and shall indemnify and hold the City officers, employees and agents harmless from any liability or penalties therefor. This Project will be developed and budgeted for assuming the payment of prevailing wages as needed.
2.3 PROJECT FUNDING
Grant Funds shall only be used to pay for the improvements as stipulated under the Scope of Work (Exhibit A) and in the time and manner specified under the Schedule of Performance (Exhibit C). It is incumbent upon the Grantee to ensure that Project is carried out in accordance with the Project’s approved scope and timeline . Any deviation in the Scope of Work and/or Schedule of Performance must be approved by the City in advance and in writing. Work performed outside the specification of the Scope of Work and/or outside the timeframe established under the Schedule of Performance are not eligible for Grant Funds.
2.4 COVENANT FOR COMPLETION AND MAINTENANCE
Concurrent with execution of this Agreement, Grantee shall execute a Covenant for Completion and Maintenance to be recorded with the Los Angeles County Recorder’s Office, a copy of which covenant is attached hereto and incorporated herein by this reference as Exhibit “E,” requiring Grantee or its successors and assigns, to complete the Project in accordance with the Schedule of Performance (Exhibit “C”). The covenant will also require Grantee and its successors and assigns to maintain the design and paint colors established for the Property under this Agreement for a period of at least five (5) years from the date the Project is completed , as determined by the Citywide Façade Improvement Program manager or designee.
SECTION 3: AUDITS; MISUSE OF FUNDS
City reserves the right to designate its own employee representative(s) or its contracted representative(s) with a Certified Public Accounting firm who shall have the right to audit Grantee’s accounting procedures and internal controls of Grantee’s financial systems as they relate to the Grant Funds and to examine any cost, revenue, payment, claim, other records or supporting documentation resulting from any items set forth in this Agreement. Any such audit(s) shall be undertaken by City or its representati ve(s) at mutually agreed upon reasonable times and in conformance with generally accepted auditing standards. Grantee agrees to fully cooperate with any such audit(s).
If the Grantee, or Grantee’s designated contractor should utilize the funds for anything other than as stated in the Application, the City may thereupon recover the entire amount of the Grant Funds from Grantee and/or the subsequent operator of the Property, together with reasonable attorney fees and costs incurred in enforcing this provision. This 6 provision shall not apply where the proposed changes are first reviewed and approved by the City. Approval shall not be unreasonably withheld to the extent the proposed changes are authorized in the Updated Program Guidelines.
SECTION 4: REMEDIES FOR BREACH
In the event the Grantee or any subsequent operator breaches Section 3 of this Agreement, in addition to all legal and equitable remedies available to the City, the City may thereupon deny any request(s) for reimbursement and/or recover the entire amount of the Grant Funds from the Grantee and/or the subsequent operator of the Property, together with reasonable attorney fees and costs incurred in enforcing this provision.
SECTION 5: INSURANCE AND INDEMNIFICATION.
5.1 INDEMNIFICATION
To the maximum extent permitted by law, the Grantee hereby agrees, at its sole cost and expense, to defend protect, indemnify, and hold harmless the City, its elected and appointed officials, officers, employees, volunteers, attorneys, and agents (collecti vely "Indemnitees") from and against any and all claims, including, without limitation, claims for bodily injury, death or damage to property, demands, charges, obligations, damages, causes of action, proceedings, suits, losses, stop payment notices, judgments, fines, liens, penalties, liabilities, costs and expenses of every kind and nature whatsoever, in any manner arising out of, incident to, related to, in connection with or arising from any act, failure to act, error or omission of the Grantee’s performance or work hereunder (including any of its officers, agents, employees, contractors) or its failure to comply with any of its obligations contained in the Agreement, or its failure to comply with any current or prospective law, or any loss of business i n connection with construction over the course of completion of the Project and damage to City property, or any construction defect that may arise from City -provided design services or the Project’s compliance with City - recommended designs, or any other liability that may arise from work performed on the Project pursuant to the contract between Grantee and its contractor, except for such loss or damage which was caused by the sole negligence or willful misconduct of the City. The Grantee’s obligation to ind emnify shall not be restricted to insurance proceeds, if any, received by the Grantee or Indemnitees. This indemnification obligation shall survive this Agreement and shall not be limited by any term of any insurance policy required under this Agreement.
Indemnitees do not and shall not waive any rights that they may possess against the Grantee because the acceptance by City, or the deposit with City, of any insurance policy or certificate required pursuant to this Agreement.
The Grantee, on behalf of itself and all parties claiming under or through it, hereby waives all rights of subrogation and contribution against the Indemnitees.
5.2 INSURANCE.
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A. Without limiting Grantee’s obligations to City under Section 5.1, and prior to commencement of any construction toward the Project , Grantee shall obtain, provide and maintain at its own expense during the term of this Agreement (at times extending beyond the term), policies of insurance of the types and amounts described below and in a form satisfactory to City.
(i) Commercial General Liability Insurance (Occurrence Form CG0001 or equivalent) . Grantee shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form ISO CGL CG 00 01 or equivalent, in an amount not less than $ 2,000,000 per occurrence, $ 4,000,000 general aggregate, for bodily injury, personal injury, and property damage. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted.
(ii) Worker’s Compensation Insurance. Grantee shall maintain a policy of worker’s compensation insurance in such amount as will fully comply with the laws of the State of California and which shall indemnify, insure and provide legal defense for Grantee against any loss, claim or damage arising from any injuries or occupational diseases occurring to any worker employed by or any persons retained by the Grantee in the course of carrying out the work contemplated in this Agreement.
(iii) Automotive Insurance. Grantee shall maintain ISO Form Number CA 00 01 covering any auto (Code 1), or if the Grantee has no owned autos, covering hired (Code 8), and non -owned autos (Code 9), with limit no less than $1,000,000 combined single limit for each accident for bodily injury and property damage.
(iv) Flood Insurance. If the Property is located in a FEMA designated high-risk area (zones A or V) , Grantee shall maintain flood insurance in an amount not less than the total cost of the improvements specified in the Scope of Work.
(v) Builder’s Risk Insurance . Grantee shall maintain Builder’s Risk (Course of Construction) insurance utilizing an “All Risk” (Special Perils) coverage form, with limits equal to the completed value of the Project and no coinsurance penalty provisions or provisional limit provisions. The policy must include: (1) coverage for any ensuing loss from faulty workmanship, nonconforming work, omission or deficiency in design or specifications; (2) coverage against machinery accidents and operational testing; (3) coverage for removal of debris, and insuring the buildings, structures, machinery, equipment, materials, facilities, fixtures and all other properties constituting a part of the project; (4) ordinance or law coverage for contingent rebuilding, demolition, and increased costs of construction; (5) transit coverage (unless insured by the supplier or receiving contractor), with sub -limits sufficient to insure the full replacement value of any key equipment item; (6) ocean marine cargo coverage insuring any pr oject materials or supplies, if applicable; (7) coverage with sub -limits sufficient to insure the full replacement value of any property or equipment stored either on or off the Project site or 8 any staging area. The City shall be included as a “loss payee” in the amount of the Grant Funds.
If the Grant Funds is less than $50,000, then at the option of City, an Installation Floater may be acceptable in lieu of Builder’s Risk Insurance . For Contract Sum exceeding $50,000, an Installation Floater may still be considered in place of Builder’s Risk based on the project scope, subject to approval by the City’s Risk Manager. For such projects, a Property Installation Floater shall be obtained that provides for the improvement, remodel, modification, alteration, conversion or adjustment to existing buildings, structures, processes, machinery and equipment. The Property Installation Floater shall provide property damage coverage for any building, structure, machinery or equipment damaged, impaired, broken, or destroyed during the performance of the work, including during transit, installation, and testing at the Project site.
B. General Insurance Requirements . All of the above policies of insurance shall be primary insurance and shall name the City, its elected and appointed officers, employees and agents as additional insureds and any insurance maintained by City or its officers, employees or agents may apply in excess of, and not contribute with the insured’s insurance. The insurer is deemed hereof to waive all rights of subrogation and contribution it may have against the City, its officers, employees and agents and their respective insurers. The insurance policy must specify that where the primary insured does not satisfy the self-insured retention, any additional insured may satisfy the self -insured retention.
All of said policies of insurance shall provide that said insurance may not be amended, cancelled or non-renewed by the insurer or any Party hereto without providing thirty (30) days prior written notice by certified mail return receipt requested to the City. In the event any of said policies of insurance are cancelled, the Grantee shall, prior to the cancellation date, submit new evidence of insuran ce in conformance with this section to the Contract Officer. No work or services under this Agreement shall commence until the Grantee has provided the City with Certificates of Insurance, additional insured endorsement forms or appropriate insurance bind ers evidencing the above insurance coverages and said Certificates of Insurance or binders are approved by the City. City reserves the right to inspect complete, certified copies of and endorsements to all required insurance policies at any time. Any fai lure to comply with the reporting or other provisions of the policies including breaches or warranties shall not affect coverage provided to City.
The insurance required by this Agreement shall be satisfactory only if issued by companies qualified to do business in California, rated “A -” or better in the most recent edition of Best Rating Guide, The Key Rating Guide or in the Federal Register, and only if they are of a financial category Class VII or better, unless such requirements are waived by the City’s Risk Manager or other designee of the City due to unique circumstances.
SECTION 6: ADDITIONAL WORK
Nothing contained in this Agreement is intended to limit, restrict, or prohibit the Grantee from undertaking additional work in or about the subject premises, which is unrelated to the approved improvements provided for in this Agreement ; provided,
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however, that City approves such work in advance.
SECTION 7: TERM AND TERMINATION
7.1 TERM
This Agreement shall be binding upon the City and upon the Grantee and Grantee’s successor(s) to the Property for a period of (2) two years after the Effective Date. It shall be the responsibility of the Grantee to inform subsequent owner(s)/lessee(s) of the Property of the provisions of this Agreement.
7.2 TERMINATION
The City reserves the right to terminate this Agreement at any time, with or without cause, upon thirty (30) days’ written notice to Grantee, except that where termination is due to the fault of Grantee, the period of notice may be such shorter time as may be determined by the Contract Officer. In addition, Grantee may terminate this Agreement if and only if all of the following criteria are met: (i) City is in default under the terms of this Agreement; (ii) Grantee has given City thirty (30) days’ written notice (or longer, if circumstances warrant) of the default and the reasons for the default; and (iii) City has failed to cure the default within said cure period. Without limiting the generality of the foregoing, City may terminate this Agreement for cause where Grantee fails to cooperate or respond to communications from the City. In any such event , City may issue a 14 -day notice requesting confirmation of continued participation in the Program and if Grantee does not respond within that period, the City may issue a termination letter which will serve as notice of termination of this Agreement . Immediately following termination of this Agreement for any reason, City and Owner must notify Owner’s contractor in writing of such termination.
SECTION 8: DESIGNS
Notwithstanding any provision of this Agreement, Grantee is responsible for obtaining applicable design review approvals, obtaining all required permits, and complying with all applicable laws and Updated Program Guidelines. As part of the Program, City has offered Grantee complimentary design guidance services for the Project (“Design Guidance Services”) and, unless Grantee indicates by checking the box below, Grantee agrees to utilize City’s Design Guidance Services for the Project. Grantee utilizing the Program’s complimentary design guidance are also subject to requirements of this section.
By checking the box above, Grantee acknowledges that City has offered Grantee complimentary Design Guidance Services but Grantee has declined such services and instead, is electing to obtain its own licensed architect to prepare designs for the Project. 10 In so doing, Grantee understands and agrees that all designs prepared by Grantee’s architect must comply with City’s recommended designs for the Project.
SECTION 9: MISCELLANEOUS PROVISIONS
9.1 RECITALS.
All recitals in this Agreement are hereby incorporated into this Agreement as if set forth fully herein.
9.2 COVENANT AGAINST DISCRIMINATION.
Grantee covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that in the performance of this Agreement, there shall be no discrimination against or segregation of any person or group of persons o n account of race, religious creed, color, gender, national origin, ancestry, physical disability, mental disability, medical condition, pregnancy, marital status, age, sexual orientation, or any other basis pertaining to a protected characteristic under a pplicable federal, state, or local law.
9.3 CONFLICTS OF INTEREST.
Grantee, its agents and employees shall comply with applicable federal, state, and local laws and regulations governing conflict of interest. Grantee covenants that it presently has no interest and shall not acquire any interest, direct or indirect, that may be affected by its obligations to perform under this Agreement, or that would conflict in any manner with its obligations hereunder. Grantee further covenants that, in performing this Agreement, no person having any such interest shall be employed by i t. Furthermore, Grantee shall avoid the appearance of having any interest that would conflict in any manner with the performance of its services pursuant to this agreement. Grantee agrees not to accept any employment or representation during the term of this Agreement that is or may likely make Grantee “financially interested” (as provided in California Government Code Sections 1090 and 87100) in any decision made by City on any manner in connection with which Grantee has been retained pursuant to this Agreement.
9.4 WARRANTY AND REPRESENTATION OF NON-COLLUSION.
City hereby warrants and represents that no official, officer, agent or employee of the City has any financial interest, direct or indirect, in this Agreement, nor shall any official, officer, agent or employee of the City participate in any decision relating to this Agreement which may affect his/her financial interest or the financial interest of any corporation, partnership, or association in which (s)he is directly interested, or in violation of any state or municipal statute or regulation. The determi nation of “financial interest” shall be consistent with State law and shall not include interest found to be “remote” or “non interest” pursuant to California Government Code Sections 1091 and 1091.5.
Grantee hereby warrants and represents that (s)he/it h as not engaged in any act(s),
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omission(s), or other conduct or collusion that would result in the payment of any money, consideration, or other thing of value to any third party including, but not limited to, any City official, officer, agent or employee, as a result or consequence of obtaining or being awarded any agreement. Grantee is aware of and understands that any such act(s), omission(s), or other conduct resulting in the payment of money, consideration, or other thing of value will render this Agreement void and of no force and effect.
Grantee Representative Initials _____
9.5 PROHIBITED AND PERMITTED USE OF FUNDS.
Grantee acknowledges and understands that it is prohibited from using the Grant Funds for any purpose that is not permitted under the Updated Program Guidelines.
Grantee agrees to use Grant Funds only for the purpose stated in Grantee’s application and for the purpose of completion of the Project.
9.6 FALSE STATEMENTS.
Grantee understands that making false statements or claims in connection with this Agreement is a violation of federal law and may result in criminal, civil, or administrative sanctions, including fines, imprisonment, civil damages and penalties, debarment from participating in federal awards or contracts, and/or any other remedy available by law.
9.7 NOTICES.
All notices, demands, invoices, and communications shall be in writing and delivered to the following addresses or such other addresses as the Parties may designate by written notice:
To City: City of Carson
701 East Carson Street
Carson, CA 90745
Attn: James Nguyen, Special Projects Manager
Email: [email protected]
To Grantee: Troylan Deguzman & Jennifer Deguzman
2651 E Carson Street
Carson, CA 90810
Email: [email protected]
Phone: (310) 801 - 1794
9.8 SEVERABILITY.
Any provision of this Agreement that is found invalid or unenforceable shall be deemed severed and all remaining provisions of this Agreement shall remain enforceable 12 to the fullest extent permitted by law.
9.9 CORPORATE AUTHORITY.
The persons executing this Agreement on behalf of the Parties warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said Party, (iii) by so executing this Agreement, such Party is formally bound to the provisions of this Agreement, and (iv) the entering into this Agreement does not violate any provision of any other Agreement to which said Party is bound. This Agreement shall be binding upon the heirs, executors, administ rators, successors and assigns of the Parties.
9.10 GRANTEE REPRESENTATIVE AND CITY’S CONTRACT OFFICER.
The following principal(s) and/or representative(s) of Grantee is/are hereby designated as the person(s) authorized to act on Grantee’s behalf with respect to this Agreement and to make all decisions in connection herewith:
Troylan Deguzman & Jennifer Deguzman, Owner
James Nguyen, Special Projects Manager, or such person as may be designated by the City Manager, is hereby designated as being the representative the City authorized to act in its behalf with respect to the work and Project specified herein and to make all decisions in connection therewith (“Contract Officer”).
9.11 WAIVER.
The waiver by the City of any breach of any term or prov ision of this Agreement shall not be construed as a waiver of any subsequent breach.
9.12 GOVERNING LAW AND VENUE.
This Agreement shall be construed in accordance with the laws of the State of California without regard to principles of conflicts of law. Venue for any litigation or other action arising hereunder shall reside exclusively in the Superior Court of the Coun ty of Los Angeles, Southwest Judicial District.
9.13 INTERPRETATION.
Grantee acknowledges that it has had ample opportunity seek legal advice with respect to the negotiation of this Agreement. This Agreement shall be interpreted as if drafted by both parties.
9.14 TIME OF ESSENCE.
Time is of the essence of this Agreement.
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9.15 THIRD PARTIES.
Nothing herein shall be interpreted as creating any rights or benefits in any third parties. For purposes hereof, transferees or assignees as permitted under this Agreement shall not be considered "third parties."
9.16 NON-LIABILITY OF OFFICIALS AND EMPLOYEES OF THE CITY.
No official or employee of the City shall be personally liable for any default or liability under this Agreement.
9.17 COUNTERPARTS AND SIGNATURES.
This Agreement may be executed in one or more counterparts, each of which will be deemed to be an original copy of this Agreement, and all of which, when taken together, will be deemed to constitute one and the same agreement. The facsimile, email or other electronically delivered signatures of the Parties shall be deemed to constitute original signatures.
[THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]
14 WITNESS WHEREOF, the Parties have executed this Agreement on the date first above written.
CITY:
CITY OF CARSON, a California
charter city
_____________________________
David C. Roberts, Jr., City Manager
ATTEST:
___________________________________
Dr. Khaleah R. Bradshaw, City Clerk
APPROVED AS TO FORM:
Aleshire & Wynder, LLP
___________________________________
Sunny K. Soltani, City Attorney
GRANTEE:
____________________________
_____________________________
Name:
_____________________________
Title:
_____________________________
Name:
_____________________________
Title:
*Two corporate officer signatures required when Grantee is a corporation, with one signature required from each of the following groups: 1) Chairman of the Board , President or any Vice President; and 2) Secretary, any Assistant Secretary, Chie f Financial Officer or any Assistant Treasurer. APPROPRIATE ATTESTATIONS SHALL BE INCLUDED AS MAY BE REQUIRED
BY THE BYLAWS, ARTICLES OF INCORPORATION, OR OTHER RULES OR REGULATIONS APPLICABLE TO CONTRACTOR’S BUSINESS ENTITY.
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CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
On __________, 2026 before me, ________________, personally appeared ________________, proved to me on the basis of satisfactory evidence to be the person(s) whose names(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same i n 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: _____________________________________
OPTIONAL
Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form
CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT
INDIVIDUAL
CORPORATE OFFICER
_______________________________
TITLE(S)
PARTNER(S) LIMITED
GENERAL
ATTORNEY-IN-FACT
TRUSTEE(S)
GUARDIAN/CONSERVATOR
OTHER____________________________
___________________________________
SIGNER IS REPRESENTING:
(NAME OF PERSON(S) OR ENTITY(IES))
__________________________________________
__________________________________________
___________________________________
TITLE OR TYPE OF DOCUMENT
___________________________________
NUMBER OF PAGES
___________________________________
DATE OF DOCUMENT
___________________________________
SIGNER(S) OTHER THAN NAMED ABOVE
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. 16 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
On __________, 2026 before me, ________________, personally appeared ________________, proved to me on the basis of satisfactory evidence to be the person(s) whose names(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same i n 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: _____________________________________
OPTIONAL
Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form
CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT
INDIVIDUAL
CORPORATE OFFICER
_______________________________
TITLE(S)
PARTNER(S) LIMITED
GENERAL
ATTORNEY-IN-FACT
TRUSTEE(S)
GUARDIAN/CONSERVATOR
OTHER____________________________
___________________________________
SIGNER IS REPRESENTING:
(NAME OF PERSON(S) OR ENTITY(IES))
__________________________________________
__________________________________________
___________________________________
TITLE OR TYPE OF DOCUMENT
___________________________________
NUMBER OF PAGES
___________________________________
DATE OF DOCUMENT
___________________________________
SIGNER(S) OTHER THAN NAMED ABOVE
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.
01007.0001/874383.1
EXHIBIT “A"
SCOPE OF WORK
Commercial Façade Improvement Program
Name: Troylan Deguzman & Jennifer Deguzman Tel. No.: 310-830-7600 #1306 Address: 2651 E Carson St. Date: 05/05/2026
All work is to be done per City of Carson building, planning, and public works codes after submission of all applicable contractor’s licenses to the City’s Contract Officer. In order to establish standards of quality, the detailed specifications may refer to a certain product by name and/or from a major manufacturer. This procedure is not to be construed as eliminating from competition of other product of equal or better quality by other manufacturers. The Grantee shall furnish a list of proposed desired su bstitutions prior to signing of the contract. All items listed on work write-up, unless otherwise specified, shall include all finish work, including all trim hardware, patching, and finish painting and/or staining. All overhead and profit should be includ ed in each line item. Use of lead -based paint is prohibited. Removal or work on asbestos and lead containing materials is subject to applicable federal, state, and local regulations.
Any questions regarding this project, the plans, and specifications should be submitted to Miguel Rameriz at [email protected].
WORK DESCRIPTION AND STANDARD SPECIFICATIONS
Attached images are from the Bid Proposal Form
Case# CRP-2510
Dated: October 27, 2025.
File Name: DAN P3 Pages, 31- 35
18 01007.0001/874383.1
20 01007.0001/874383.1
22 01007.0001/874383.1
NOTE:
Grantee must obtain and pay for City of Carson building permits, business license, and inspections.
All work shall include the protection of building as well as maintaining the premises clean at all times.
All debris resulting from any work conducted in connection with this contract shall be the property of the Grantee, who is responsible for its timely removal and lawful disposal. Work site shall be maintained in a clean and orderly manner, and upon completion, property shall be left in a “broom clean” condition.
24 EXHIBIT “B”
SAMPLE CONTRACTOR AGREEMENT
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EXHIBIT “C”
SCHEDULE OF PERFORMANCE
PERMITS: Before commencement of any Project work, Grantee and its contractor shall obtain any and all permits and approvals which may be required by the City or any other governmental agency with jurisdiction. Execution of this Agreement by City shall not be construed as any commitment by City to issue any permits and Grantee and its contractor must obtain all permits pursuant to the City’s standard process and requirements.
COMMENCEMENT OF PROJECT WORK : Grantee agrees that the Project work shall not commence until all permits are issued and City has issued a Notice to Proceed and delivered same to Grantee (“Notice to Proceed”).
In lieu of disbursement of grant monies to Grantee, the Parties agree that City will disburse to Grantee’s contractor an amount not to exceed $93,600 (“Grant Funds”) for satisfactory completion of the Project upon submission by Grantee’s contractor of the documentation required in Section 2 of Grantee’s contract with its contractor (Exhibit B).
CONSTRUCTION SCHEDULE: The Project work shall commence not later than ten (10) days after the City issues the Notice to Proceed to Grantee and its contractor, and shall be completed within ninety (90) days thereafter except as stated otherwise or as mutually agreed in writing by Grantee and City. The Project work shall be deemed complete upon written notification specifying that the Project work has been compl eted issued by the Citywide Façade Improvement Program manager or designee and delivered to Grantee.
The City shall make reasonable efforts to coordinate construction activities with Grantee to minimize disruption to the operation of the business to the maximum extent practicable.
At the City’s sole discretion, the schedule may be modified subject to the approval of the City’s Program Manager or his/her designee.
26 EXHIBIT “D”
APPROVED CONSTRUCTION DOCUMENTS
[TO BE INSERTED SEPARATELY]
01007.0001/874383.1
EXHIBIT “E”
COVENANT FOR COMPLETION AND MAINTENANCE
01007.0001/874383.1
FAÇADE IMPROVEMENT PROGRAM GRANT AGREEMENT
[ECONOMIC DEVELOPMENT BENEFIT AGREEMENT
FOR EAST CARSON CORRIDOR]
This Façade Improvement Program Grant Agreement (“Agreement”) is entered into effective ____________, 20 26 (“Effective Date”) , by and between the CITY OF CARSON, a charter city and municipal corporation (the “City”), on the one hand, and Noemi Barboza (“Grantee”), owner of property located at 2659 E Carson St. , Carson, California (“Property”), on the other hand. The parties hereto are collectively referred to as the “Parties.”
RECITALS
WHEREAS, on June 21, 2022, the City passed Resolution No. 22 -131 which established a Citywide Commercial Facade Improvement Program (the “Program”) pursuant to the adopted C arson Façade Improvement Program Guidelines (“Program Guidelines”) for the public purpose of encouraging the improvement , stimulation and revitalization of the exterior facades of existing commercial buildings in various commercial corridors such as along Avalon Boulevard, Main Street, Sepulveda Boulevard, Carson Street, and Figueroa Street.
WHEREAS, the Program is administered by the City and funded by City’s General Fund pursuant to an authorized allocation made by the City Council during the City’s budget adoption process.
WHEREAS, on ________________, 2026, the City Council approved changes to the Program by adopting a modified version of the Program Guidelines (“Updated Program Guidelines”) which now contains a no match requirement for certain businesses located on the north side of Carson Street between Harbor View Avenue and Santa Fe Avenue.
WHEREAS, 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, or any other economic development subsidy, after a public hearing 2 identifying the amount and terms of such assistance and the justification for such assistance.
WHEREAS, on March 19, 2024, the City Council adopted Ordinance No. 24-2404 in furtherance of Section 206 of the Charter, specifically authorizing the City to pursue economic development activities by entering into agreements for provision of loans or grants to certain commercial property owners.
WHEREAS, the incentives provided in this Agreement are intended by the City to be consistent with and promote the purposes of Section 206 of the Charter, Ordinance No. 24-2404 and the Updated Program Guidelines by City providing a grant to Grantee for the purpose of, without limitation, stimulating commercial development within the City, increasing jobs, decreasing blight, and increasing tax revenue to the City. This Agreement has been approved by the City Council following all legally required notices and public hearings.
WHEREAS, the Property is a commercial business located within the geographical limits contemplated under the Updated Program Guidelines and is eligible for participation in the Program.
WHEREAS, under the Updated Program Guidelines, the City is authorized to provide grants to commercial businesses with no match requirements from eligible applicants.
WHEREAS, Section 206 of the Carson Charter is consistent with Government Code Section 53083 which authorizes local agencies to provide economic development subsidies in the amount $100,000 or more where the local agency provides written notice through its website concerning the economic development subsidy and the information required under subsection (a) therein.
WHEREAS, in those instances where the Grant Funds equal $100,000 or more, the City has complied with all requirements of Government Code Section 53083.
WHEREAS, 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 “CEQA 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 CEQA Guidelines section 15378, because City has deter mined, in its discretion and based on substantial evidence, that this Agreement presents no potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment, or alternativ ely, even if it did constitute a project, it would be exempt pursuant to Section 15301 of the CEQA Guidelines (Class 1 exemption for minor alteration of existing public or private structures involving negligible or no expansion of existing use).
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WHEREAS, in accordance with the City’s Charter powers and Ordinance No. 24- 2404, the City Council wishes to enter into this Agreement with Grantee to provide a grant in order to further the objectives of the Program , it being understood that Section 206 of the Charter allows the City to pursue economic development to the maximum degree permitted by the California Constitution.
NOW, THEREFORE, in consideration of the mutual covenants, agreements and conditions contained herein, and upon acknowledgement of each of the Parties of the receipt of valuable consideration, it is agreed as follows:
AGREEMENT
SECTION 1: GRANT FUNDING; PAYMENT; PUBLIC BENEFITS
In lieu of disbursement of grant monies to Grantee, the Parties agree that City will disburse to Grantee’s contractor an amount not to exceed $142,600 (“Grant Funds”) for satisfactory completion of the Project upon submission by Grantee’s contractor of the documentation required in Section 2 of Grantee’s contract with its contractor (Exhibit B).
Under the Updated Program Guidelines, City funds are eligible for uses including but not limited to: installation of new or repair or replacement of exterior signs; installation of new or repair or replacement of awnings, canopies, or sunshades; painting or replace or repair exterior surface treatment; asphalt paving, replacement or repair of tiles or decorative pavers; sidewalk or courtyard repaving; repair or replacement of masonry walls or footings; outdoor lighting: installation of new exterior lighting fixtures or repair or replacement of existing exterior lighting fixtures ; i nstallation, repair or replacement of decorative or security fencing; replacement of plate glass windows; re-glazing of windows or change of window mullions with the approval of application by the City.
The City Council finds that the Program, as implemented in part through completion of the Project, will without limitation, stimulate commercial development within the City, increase jobs, decrease blight, and increase tax revenue to the City (“Public Benefits”). As an additional Public Benefit, w here feasible for Grantee when hiring contractors to perform work for the Project, Grantee shall use commercially reasonable, good faith efforts to hire contractors whose principal address is located within the City of Carson.
SECTION 2: WORK COMPLETION; PREVAILING WAGES
2.1 SCOPE OF WORK AND SCHEDULE OF PERFORMANCE
Grantee agrees that it shall utilize the Grant Funds to pay for those improvements 4 specified in the Scope of Work attached hereto and incorporated herein as Exhibit “A,” which is at times referred to herein as the “Project,” in accordance with Grantee’s completed application (“Application”) on file at City Hall. No changes or additions to the Scope of Work will be permitted without prior written approval of the City’s Contract Officer, and any changes made without the requisite approval will not be eligible for funding and will be deemed a material breach of this Agreement. All work toward such Project will be performed and completed (i) by Grantee entering into a contract with its selected contractor where the contract is substantially similar to the sample contract provided in Exhibit “B” ; (ii) within and in accordance with the Updated Project Guidelines; (iii) by a State licensed contractor within the time period(s) established in Exhibit “C,” the “Schedule of Performance” unless otherwise authorized by the City; and (iv) in accordance with approved construction documents as detailed in Exhibit “D,” with Exhibits B, C and D attached hereto and incorporated herein by this reference. Grantee agrees to allow the City or its agents access to buildings and the storefront improvements at the Property, when convenient for the Parties, for inspection of the Project work. Such inspections shall not replace any required permit inspections by t he City’s Building Inspectors. All work which is not in conformance with the approved plans, design drawings and specifications shall be immediately remedied by the Grantee at Grantee’s sole expense and deficient or improper work shall be replac ed and made to comply with the approved plans, design drawings and specifications and the terms of the Agreement.
2.2 PREVAILING WAGES
Certain or all portions of the Project may be subject to prevailing wages under the Labor Code. More specifically, if the amount of the Grant Funds exceeds $1,000 and is 2% or more of the total cost of the Project, the below provisions will apply.
Grantee acknowledges that the construction and construction-related activities for the Project are subject to the California Prevailing Wage Law, and Grantee is required to pay the general prevailing wage rates of per diem wages and overtime and holiday wages determined by the Director of the Department of Industrial Relations (“DIR”) under Section 1720, et seq., of the California Labor Code for all covered work performed on the Project. The applicable prevailing rates are on file with, and open to inspect ion at, the Community & Economic Development Department (Special Projects Division) and is referred to and made a part hereof. Due to the fact that Prevailing Wage Law applies to construction work performed for the Project, the Grantee’s contractor(s) shall submit weekly certified payrolls of all workers employed on the construction of the Project to the City in a form acceptable to the City. Grantee acknowledges the possibility of wage increases during construction work performed for the Project and that Grantee and/or its contractor(s) shall be responsible for paying such increases. Grantee acknowledges that it is aware of and shall comply with, and that its contractor(s) shall be aware of and shall comply with, the following sections of the California La bor Code: (i) Section 1725.5 requiring that all contractors and subcontractors performing work on the Project be registered with, and pay an annual fee to, the DIR prior to and during the performance of any work towards the Project; (ii) Section 1775 presc ribing penalties for failure to pay prevailing wage rates; (iii) Section 1776 requiring the making, keeping, and disclosing of
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detailed certified payroll records and prescribing penalties for failure to do so; (iv) Section 1777.5 prescribing the terms and conditions for employing registered apprentices; (v) Section 1810 providing that eight hours of labor shall constitute a day’s work; and (vi) Section 1813 prescribing penalties for violations of the provisions concerning eight - hour work days and forty-hour work weeks. If Grantee violates the foregoing or any other Prevailing Wage Laws, Grantee shall be solely liable for the cost thereof and shall indemnify and hold the City officers, employees and agents harmless from any liability or penalties therefor. This Project will be developed and budgeted for assuming the payment of prevailing wages as needed.
2.3 PROJECT FUNDING
Grant Funds shall only be used to pay for the improvements as stipulated under the Scope of Work (Exhibit A) and in the time and manner specified under the Schedule of Performance (Exhibit C). It is incumbent upon the Grantee to ensure that Project is carried out in accordance with the Project’s approved scope and timeline . Any deviation in the Scope of Work and/or Schedule of Performance must be approved by the City in advance and in writing. Work performed outside the specification of the Scope of Work and/or outside the timeframe established under the Schedule of Performance are not eligible for Grant Funds.
2.4 COVENANT FOR COMPLETION AND MAINTENANCE
Concurrent with execution of this Agreement, Grantee shall execute a Covenant for Completion and Maintenance to be recorded with the Los Angeles County Recorder’s Office, a copy of which covenant is attached hereto and incorporated herein by this reference as Exhibit “E,” requiring Grantee or its successors and assigns, to complete the Project in accordance with the Schedule of Performance (Exhibit “C”). The covenant will also require Grantee and its successors and assigns to maintain the design and paint colors established for the Property under this Agreement for a period of at least five (5) years from the date the Project is completed , as determined by the Citywide Façade Improvement Program manager or designee.
SECTION 3: AUDITS; MISUSE OF FUNDS
City reserves the right to designate its own employee representative(s) or its contracted representative(s) with a Certified Public Accounting firm who shall have the right to audit Grantee’s accounting procedures and internal controls of Grantee’s financial systems as they relate to the Grant Funds and to examine any cost, revenue, payment, claim, other records or supporting documentation resulting from any items set forth in this Agreement. Any such audit(s) shall be undertaken by City or its representati ve(s) at mutually agreed upon reasonable times and in conformance with generally accepted auditing standards. Grantee agrees to fully cooperate with any such audit(s).
If the Grantee, or Grantee’s designated contractor should utilize the funds for anything other than as stated in the Application, the City may thereupon recover the entire 6 amount of the Grant Funds from Grantee and/or the subsequent operator of the Property, together with reasonable attorney fees and costs incurred in enforcing this provision. This provision shall not apply where the proposed changes are first reviewed and approved by the City. Approval shall not be unreasonably withheld to the extent the proposed changes are authorized in the Updated Program Guidelines.
SECTION 4: REMEDIES FOR BREACH
In the event the Grantee or any subsequent operator breaches Section 3 of this Agreement, in addition to all legal and equitable remedies available to the City, the City may thereupon deny any request(s) for reimbursement and/or recover the entire amount of the Grant Funds from the Grantee and/or the subsequent operator of the Property, together with reasonable attorney fees and costs incurred in enforcing this provision.
SECTION 5: INSURANCE AND INDEMNIFICATION.
5.1 INDEMNIFICATION
To the maximum extent permitted by law, the Grantee hereby agrees, at its sole cost and expense, to defend protect, indemnify, and hold harmless the City, its elected and appointed officials, officers, employees, volunteers, attorneys, and agents (collecti vely "Indemnitees") from and against any and all claims, including, without limitation, claims for bodily injury, death or damage to property, demands, charges, obligations, damages, causes of action, proceedings, suits, losses, stop payment notices, judgments, fines, liens, penalties, liabilities, costs and expenses of every kind and nature whatsoever, in any manner arising out of, incident to, related to, in connection with or arising from any act, failure to act, error or omission of the Grantee’s performance or work hereunder (including any of its officers, agents, employees, contractors) or its failure to comply with any of its obligations contained in the Agreement, or its failure to comply with any current or prospective law, or any loss of business i n connection with construction over the course of completion of the Project and damage to City property, or any construction defect that may arise from City -provided design services or the Project’s compliance with City - recommended designs, or any other liability that may arise from work performed on the Project pursuant to the contract between Grantee and its contractor, except for such loss or damage which was caused by the sole negligence or willful misconduct of the City. The Grantee’s obligation to indemnify shall not be restricted to insurance proceeds, if any, received by the Grantee or Indemnitees. This indemnification obligation shall survive this Agreement and shall not be limited by any term of any insurance policy required under this Agreement.
Indemnitees do not and shall not waive any rights that they may possess against the Grantee because the acceptance by City, or the deposit with City, of any insurance policy or certificate required pursuant to this Agreement.
The Grantee, on behalf of itself and all parties claiming under or through it, hereby waives all rights of subrogation and contribution against the Indemnitees.
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5.2 INSURANCE.
A. Without limiting Grantee’s obligations to City under Section 5.1, and prior to commencement of any construction toward the Project , Grantee shall obtain, provide and maintain at its own expense during the term of this Agreement (at times extending beyond the term), policies of insurance of the types and amounts described below and in a form satisfactory to City.
(i) Commercial General Liability Insurance (Occurrence Form CG0001 or equivalent) . Grantee shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form ISO CGL CG 00 01 or equivalent, in an amount not less than $ 2,000,000 per occurrence, $ 4,000,000 general aggregate, for bodily injury, personal injury, and property damage. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted.
(ii) Worker’s Compensation Insurance. Grantee shall maintain a policy of worker’s compensation insurance in such amount as will fully comply with the laws of the State of California and which shall indemnify, insure and provide legal defense for Grantee against any loss, claim or damage arising from any injuries or occupational diseases occurring to any worker employed by or any persons retained by the Grantee in the course of carrying out the work contemplated in this Agreement.
(iii) Automotive Insurance. Grantee shall maintain ISO Form Number CA 00 01 covering any auto (Code 1), or if the Grantee has no owned autos, covering hired (Code 8), and non -owned autos (Code 9), with limit no less than $1,000,000 combined single limit for each accident for bodily injury and property damage.
(iv) Flood Insurance. If the Property is located in a FEMA designated high-risk area (zones A or V) , Grantee shall maintain flood insurance in an amount not less than the total cost of the improvements specified in the Scope of Work.
(v) Builder’s Risk Insurance . Grantee shall maintain Builder’s Risk (Course of Construction) insurance utilizing an “All Risk” (Special Perils) coverage form, with limits equal to the completed value of the Project and no coinsurance penalty provisions or provisional limit provisions. The policy must include: (1) coverage for any ensuing loss from faulty workmanship, nonconforming work, omission or deficiency in design or specifications; (2) coverage against machinery accidents and operational testing; (3) coverage for removal of debris, and insuring the buildings, structures, machinery, equipment, materials, facilities, fixtures and all other properties constituting a part of the project; (4) ordinance or law coverage for contingent rebuilding, demolition, and increased costs of construction; (5) transit coverage (unless insured by the supplier or receiving contractor), with sub -limits sufficient to insure the full replacement value of any key equipment item; (6) ocean marine cargo coverage insuring any pr oject materials or supplies, if applicable; (7) coverage with sub -limits sufficient to insure the full 8 replacement value of any property or equipment stored either on or off the Project site or any staging area. The City shall be included as a “loss payee” in the amount of the Grant Funds.
If the Grant Funds is less than $50,000, then at the option of City, an Installation Floater may be acceptable in lieu of Builder’s Risk Insurance . For Contract Sum exceeding $50,000, an Installation Floater may still be considered in place of Builder’s Risk based on the project scope, subject to approval by the City’s Risk Manager. For such projects, a Property Installation Floater shall be obtained that provides for the improvement, remodel, modification, alteration, conversion or adjustment to existing buildings, structures, processes, machinery and equipment. The Property Installation Floater shall provide property damage coverage for any building, structure, machinery or equipment damaged, impaired, broken, or destroyed during the performance of the work, including during transit, installation, and testing at the Project site.
B. General Insurance Requirements . All of the above policies of insurance shall be primary insurance and shall name the City, its elected and appointed officers, employees and agents as additional insureds and any insurance maintained by City or its officers, employees or agents may apply in excess of, and not contribute with the insured’s insurance. The insurer is deemed hereof to waive all rights of subrogation and contribution it may have against the City, its officers, employees and agents and their re spective insurers. The insurance policy must specify that where the primary insured does not satisfy the self-insured retention, any additional insured may satisfy the self -insured retention.
All of said policies of insurance shall provide that said insu rance may not be amended, cancelled or non-renewed by the insurer or any Party hereto without providing thirty (30) days prior written notice by certified mail return receipt requested to the City. In the event any of said policies of insurance are cancelled, the Grantee shall, prior to the cancellation date, submit new evidence of insurance in conformance with this section to the Contract Officer. No work or services under this Agreement shall commence until the Grantee has provided the City with Certificates of Insurance, additional insured endorsement forms or appropriate insurance binders evidencing the above insurance coverages and said Certificates of Insurance or binders are approved by the City. City reserves the rig ht to inspect complete, certified copies of and endorsements to all required insurance policies at any time. Any failure to comply with the reporting or other provisions of the policies including breaches or warranties shall not affect coverage provided to City.
The insurance required by this Agreement shall be satisfactory only if issued by companies qualified to do business in California, rated “A -” or better in the most recent edition of Best Rating Guide, The Key Rating Guide or in the Federal Register, and only if they are of a financial category Class VII or better, unless such requirements are waived by the City’s Risk Manager or other designee of the City due to unique circumstances.
SECTION 6: ADDITIONAL WORK
Nothing contained in this Agreement is intended to limit, restrict, or prohibit the Grantee from undertaking additional work in or about the subject premises, which is
01007.0001/874383.1
unrelated to the approved improvements provided for in this Agreement ; provided, however, that City approves such work in advance.
SECTION 7: TERM AND TERMINATION
7.1 TERM
This Agreement shall be binding upon the City and upon the Grantee and Grantee’s successor(s) to the Property for a period of (2) two years after the Effective Date. It shall be the responsibility of the Grantee to inform subsequent owner(s)/lessee(s) of the Property of the provisions of this Agreement.
7.2 TERMINATION
The City reserves the right to terminate this Agreement at any time, with or without cause, upon thirty (30) days’ written notice to Grantee, except that where termination is due to the fault of Grantee, the period of notice may be such shorter time as may be determined by the Contract Officer. In addition, Grantee may terminate this Agreement if and only if all of the following criteria are met: (i) City is in default under the terms of this Agreement; (ii) Grantee has given City thirty (30) days’ written notice (or longer, if circumstances warrant) of the default and the reasons for the default; and (iii) City has failed to cure the default within said cure period. Without limiting the generality of the foregoing, City may terminate this Agreement for cause where Grantee fails to cooperate or respond to communications from the City. In any such event , City may issue a 14 -day notice requesting confirmation of continued participation in the Program and if Grantee does not respond within that period, the City may issue a termination letter which will serve as notice of termination of this Agreement . Immediately following termination of this Agreement for any reason, City and Owner must notify Owner’s contractor in writing of such termination.
SECTION 8: DESIGNS
Notwithstanding any provision of this Agreement, Grantee is responsible for obtaining applicable design review approvals, obtaining all required permits, and complying with all applicable laws and Updated Program Guidelines. As part of the Program, City has offered Grantee complimentary design guidance services for the Project (“Design Guidance Services”) and, unless Grantee indicates by checking the box below, Grantee agrees to utilize City’s Design Guidance Services for the Project. Grantee utilizing the Program’s complimentary design guidance are also subject to requirements of this section.
By checking the box above, Grantee acknowledges that City has offered Grantee complimentary Design Guidance Services but Grantee has declined such services and 10 instead, is electing to obtain its own licensed architect to prepare designs for the Project.
In so doing, Grantee understands and agrees that all designs prepared by Grantee’s architect must comply with City’s recommended designs for the Project.
SECTION 9: MISCELLANEOUS PROVISIONS
9.1 RECITALS.
All recitals in this Agreement are hereby incorporated into this Agreement as if set forth fully herein.
9.2 COVENANT AGAINST DISCRIMINATION.
Grantee covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that in the performance of this Agreement, there shall be no discrimination against or segregation of any person or group of persons o n account of race, religious creed, color, gender, national origin, ancestry, physical disability, mental disability, medical condition, pregnancy, marital status, age, sexual orientation, or any other basis pertaining to a protected characteristic under a pplicable federal, state, or local law.
9.3 CONFLICTS OF INTEREST.
Grantee, its agents and employees shall comply with applicable federal, state, and local laws and regulations governing conflict of interest. Grantee covenants that it presently has no interest and shall not acquire any interest, direct or indirect, that may be affected by its obligations to perform under this Agreement, or that would conflict in any manner with its obligations hereunder. Grantee further covenants that, in performing this Agreement, no person having any such interest shall be employed by i t. Furthermore, Grantee shall avoid the appearance of having any interest that would conflict in any manner with the performance of its services pursuant to this agreement. Grantee agrees not to accept any employment or representation during the term of this Agreement that is or may likely make Grantee “financially interested” (as provided in California Government Code Sections 1090 and 87100) in any decision made by City on any manner in connection with which Grantee has been retained pursuant to this Agreement.
9.4 WARRANTY AND REPRESENTATION OF NON-COLLUSION.
City hereby warrants and represents that no official, officer, agent or employee of the City has any financial interest, direct or indirect, in this Agreement, nor shall any official, officer, agent or employee of the City participate in any decision relating to this Agreement which may affect his/her financial interest or the financial interest of any corporation, partnership, or association in which (s)he is directly interested, or in violation of any state or municipal statute or regulation. The determi nation of “financial interest” shall be consistent with State law and shall not include interest found to be “remote” or “non interest” pursuant to California Government Code Sections 1091 and 1091.5.
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Grantee hereby warrants and represents that (s)he/it has not engaged in any act(s), omission(s), or other conduct or collusion that would result in the payment of any money, consideration, or other thing of value to any third party including, but not limit ed to, any City official, officer, agent or employee, as a result or consequence of obtaining or being awarded any agreement. Grantee is aware of and understands that any such act(s), omission(s), or other conduct resulting in the payment of money, consid eration, or other thing of value will render this Agreement void and of no force and effect.
Grantee Representative Initials _____
9.5 PROHIBITED AND PERMITTED USE OF FUNDS.
Grantee acknowledges and understands that it is prohibited from using the Grant Funds for any purpose that is not permitted under the Updated Program Guidelines.
Grantee agrees to use Grant Funds only for the purpose stated in Grantee’s application and for the purpose of completion of the Project.
9.6 FALSE STATEMENTS.
Grantee understands that making false statements or claims in connection with this Agreement is a violation of federal law and may result in criminal, civil, or administrative sanctions, including fines, imprisonment, civil damages and penalties, debarment from participating in federal awards or contracts, and/or any other remedy available by law.
9.7 NOTICES.
All notices, demands, invoices, and communications shall be in writing and delivered to the following addresses or such other addresses as the Parties may designate by written notice:
To City: City of Carson
701 East Carson Street
Carson, CA 90745
Attn: James Nguyen, Special Projects Manager
Email: [email protected]
To Grantee: Noemi Barboza
2659 E Carson Street
Carson, CA 90810
Email: [email protected]
Phone: (626) 665 - 2584
9.8 SEVERABILITY.
Any provision of this Agreement that is found invalid or unenforceable shall be 12 deemed severed and all remaining provisions of this Agreement shall remain enforceable to the fullest extent permitted by law.
9.9 CORPORATE AUTHORITY.
The persons executing this Agreement on behalf of the Parties warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said Party, (iii) by so executing this Agreement, such Party is formally bound to the provisions of this Agreement, and (iv) the entering into this Agreement does not violate any provision of any other Agreement to which said Party is bound. This Agreement shall be binding upon the heirs, executors, administ rators, successors and assigns of the Parties.
9.10 GRANTEE REPRESENTATIVE AND CITY’S CONTRACT OFFICER.
The following principal(s) and/or representative(s) of Grantee is/are hereby designated as the person(s) authorized to act on Grantee’s behalf with respect to this Agreement and to make all decisions in connection herewith:
Noemi Barboza, Owner
James Nguyen, Special Projects Manager, or such person as may be designated by the City Manager, is hereby designated as being the representative the City authorized to act in its behalf with respect to the work and Project specified herein and to make all decisions in connection therewith (“Contract Officer”).
9.11 WAIVER.
The waiver by the City of any breach of any term or prov ision of this Agreement shall not be construed as a waiver of any subsequent breach.
9.12 GOVERNING LAW AND VENUE.
This Agreement shall be construed in accordance with the laws of the State of California without regard to principles of conflicts of law. Venue for any litigation or other action arising hereunder shall reside exclusively in the Superior Court of the Coun ty of Los Angeles, Southwest Judicial District.
9.13 INTERPRETATION.
Grantee acknowledges that it has had ample opportunity seek legal advice with respect to the negotiation of this Agreement. This Agreement shall be interpreted as if drafted by both parties.
9.14 TIME OF ESSENCE.
Time is of the essence of this Agreement.
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9.15 THIRD PARTIES.
Nothing herein shall be interpreted as creating any rights or benefits in any third parties. For purposes hereof, transferees or assignees as permitted under this Agreement shall not be considered "third parties."
9.16 NON-LIABILITY OF OFFICIALS AND EMPLOYEES OF THE CITY.
No official or employee of the City shall be personally liable for any default or liability under this Agreement.
9.17 COUNTERPARTS AND SIGNATURES.
This Agreement may be executed in one or more counterparts, each of which will be deemed to be an original copy of this Agreement, and all of which, when taken together, will be deemed to constitute one and the same agreement. The facsimile, email or other electronically delivered signatures of the Parties shall be deemed to constitute original signatures.
[THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]
14 WITNESS WHEREOF, the Parties have executed this Agreement on the date first above written.
CITY:
CITY OF CARSON, a California
charter city
_____________________________
David C. Roberts, Jr., City Manager
ATTEST:
___________________________________
Dr. Khaleah R. Bradshaw, City Clerk
APPROVED AS TO FORM:
Aleshire & Wynder, LLP
___________________________________
Sunny K. Soltani, City Attorney
GRANTEE:
____________________________
_____________________________
Name:
_____________________________
Title:
_____________________________
Name:
_____________________________
Title:
*Two corporate officer signatures required when Grantee is a corporation, with one signature required from each of the following groups: 1) Chairman of the Board , President or any Vice President; and 2) Secretary, any Assistant Secretary, Chie f Financial Officer or any Assistant Treasurer. APPROPRIATE ATTESTATIONS SHALL BE INCLUDED AS MAY BE REQUIRED
BY THE BYLAWS, ARTICLES OF INCORPORATION, OR OTHER RULES OR REGULATIONS APPLICABLE TO CONTRACTOR’S BUSINESS ENTITY.
01007.0001/874383.1
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
On __________, 2026 before me, ________________, personally appeared ________________, proved to me on the basis of satisfactory evidence to be the person(s) whose names(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same i n 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: _____________________________________
OPTIONAL
Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form
CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT
INDIVIDUAL
CORPORATE OFFICER
_______________________________
TITLE(S)
PARTNER(S) LIMITED
GENERAL
ATTORNEY-IN-FACT
TRUSTEE(S)
GUARDIAN/CONSERVATOR
OTHER____________________________
___________________________________
SIGNER IS REPRESENTING:
(NAME OF PERSON(S) OR ENTITY(IES))
__________________________________________
__________________________________________
___________________________________
TITLE OR TYPE OF DOCUMENT
___________________________________
NUMBER OF PAGES
___________________________________
DATE OF DOCUMENT
___________________________________
SIGNER(S) OTHER THAN NAMED ABOVE
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. 16 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
On __________, 2026 before me, ________________, personally appeared ________________, proved to me on the basis of satisfactory evidence to be the person(s) whose names(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same i n 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: _____________________________________
OPTIONAL
Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form
CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT
INDIVIDUAL
CORPORATE OFFICER
_______________________________
TITLE(S)
PARTNER(S) LIMITED
GENERAL
ATTORNEY-IN-FACT
TRUSTEE(S)
GUARDIAN/CONSERVATOR
OTHER____________________________
___________________________________
SIGNER IS REPRESENTING:
(NAME OF PERSON(S) OR ENTITY(IES))
__________________________________________
__________________________________________
___________________________________
TITLE OR TYPE OF DOCUMENT
___________________________________
NUMBER OF PAGES
___________________________________
DATE OF DOCUMENT
___________________________________
SIGNER(S) OTHER THAN NAMED ABOVE
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.
01007.0001/874383.1
EXHIBIT “A"
SCOPE OF WORK
Commercial Façade Improvement Program
Name: Noemi Barboza Tel. No.: 310-830-7600 #1306
Address: 2659 E Carson St. Date: 05/05/2026
All work is to be done per City of Carson building, planning, and public works codes after submission of all applicable contractor’s licenses to the City’s Contract Officer. In order to establish standards of quality, the detailed specifications may refer to a certain product by name and/or from a major manufacturer. This procedure is not to be construed as eliminating from competition of other product of equal or better quality by other manufacturers. The Grantee shall furnish a list of proposed desired su bstitutions prior to signing of the contract. All items listed on work write-up, unless otherwise specified, shall include all finish work, including all trim hardware, patching, and finish painting and/or staining. All overhead and profit should be includ ed in each line item. Use of lead -based paint is prohibited. Removal or work on asbestos and lead containing materials is subject to applicable federal, state, and local regulations.
Any questions regarding this project, the plans, and specifications should be submitted to Miguel Rameriz at [email protected].
WORK DESCRIPTION AND STANDARD SPECIFICATIONS
Attached images are from the Bid Proposal Form
Case# CRP-2511
Dated: October 27, 2025.
File Name: DAN P4 Pages, 18- 23
18 01007.0001/874383.1
20 01007.0001/874383.1
22 01007.0001/874383.1
24 NOTE:
Grantee must obtain and pay for City of Carson building permits, business license, and inspections.
All work shall include the protection of building as well as maintaining the premises clean at all times.
All debris resulting from any work conducted in connection with this contract shall be the property of the Grantee, who is responsible for its timely removal and lawful disposal. Work site shall be maintained in a clean and orderly manner, and upon completion, property shall be left in a “broom clean” condition.
All debris resulting from any work conducted in connection with this contract shall be the property of the Grantee, who is responsible for its timely removal and lawful disposal. Work site shall be maintained in a clean and orderly manner, and upon completion, property shall be left in a “broom clean” condition.
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EXHIBIT “B”
SAMPLE CONTRACTOR AGREEMENT
26 EXHIBIT “C”
SCHEDULE OF PERFORMANCE
PERMITS: Before commencement of any Project work, Grantee and its contractor shall obtain any and all permits and approvals which may be required by the City or any other governmental agency with jurisdiction. Execution of this Agreement by City shall not be construed as any commitment by City to issue any permits and Grantee and its contractor must obtain all permits pursuant to the City’s standard process and requirements.
COMMENCEMENT OF PROJECT WORK : Grantee agrees that the Project work shall not commence until all permits are issued and City has issued a Notice to Proceed and delivered same to Grantee (“Notice to Proceed”).
In lieu of disbursement of grant monies to Grantee, the Parties agree that City will disburse to Grantee’s contractor an amount not to exceed $142,600 (“Grant Funds”) for satisfactory completion of the Project upon submission by Grantee’s contractor of the documentation required in Section 2 of Grantee’s contract with its contractor (Exhibit B).
CONSTRUCTION SCHEDULE: The Project work shall commence not later than ten (10) days after the City issues the Notice to Proceed to Grantee and its contractor, and shall be completed within ninety (90) days thereafter except as stated otherwise or as mutually agreed in writing by Grantee and City. The Project work shall be deemed complete upon written notification specifying that the Project work has been compl eted issued by the Citywide Façade Improvement Program manager or designee and delivered to Grantee.
The City shall make reasonable efforts to coordinate construction activities with Grantee to minimize disruption to the operation of the business to the maximum extent practicable.
At the City’s sole discretion, the schedule may be modified subject to the approval of the City’s Program Manager or his/her designee.
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EXHIBIT “D”
APPROVED CONSTRUCTION DOCUMENTS
[TO BE INSERTED SEPARATELY]
28 EXHIBIT “E”
COVENANT FOR COMPLETION AND MAINTENANCE
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FAÇADE IMPROVEMENT PROGRAM GRANT AGREEMENT
[ECONOMIC DEVELOPMENT BENEFIT AGREEMENT
FOR EAST CARSON CORRIDOR]
This Façade Improvement Program Grant Agreement (“Agreement”) is entered into effective ____________, 20 26 (“Effective Date”) , by and between the CITY OF CARSON, a charter city and municipal corporation (the “City”), on the one hand, and Niko Maeinakis (“Grantee”), owner of property located at 2713 E Carson St. , Carson, California (“Property”), on the other hand. The parties hereto are collectively referred to as the “Parties.”
RECITALS
WHEREAS, on June 21, 2022, the City passed Resolution No. 22 -131 which established a Citywide Commercial Facade Improvement Program (the “Program”) pursuant to the adopted C arson Façade Improvement Program Guidelines (“Program Guidelines”) for the public purpose of encouraging the improvement , stimulation and revitalization of the exterior facades of existing commercial buildings in various commercial corridors such as along Avalon Boulevard, Main Street, Sepulveda Boulevard, Carson Street, and Figueroa Street.
WHEREAS, the Program is administered by the City and funded by City’s General Fund pursuant to an authorized allocation made by the City Council during the City’s budget adoption process.
WHEREAS, on ________________, 2026, the City Council approved changes to the Program by adopting a modified version of the Program Guidelines (“Updated Program Guidelines”) which now contains a no match requirement for certain businesses located on the north side of Carson Street between Harbor View Avenue and Santa Fe Avenue.
WHEREAS, 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, or any other economic development subsidy, after a public hearing 2 identifying the amount and terms of such assistance and the justification for such assistance.
WHEREAS, on March 19, 2024, the City Council adopted Ordinance No. 24-2404 in furtherance of Section 206 of the Charter, specifically authorizing the City to pursue economic development activities by entering into agreements for provision of loans or grants to certain commercial property owners.
WHEREAS, the incentives provided in this Agreement are intended by the City to be consistent with and promote the purposes of Section 206 of the Charter, Ordinance No. 24-2404 and the Updated Program Guidelines by City providing a grant to Grantee for the purpose of, without limitation, stimulating commercial development within the City, increasing jobs, decreasing blight, and increasing tax revenue to the City. This Agreement has been approved by the City Council following all legally required notices and public hearings.
WHEREAS, the Property is a commercial business located within the geographical limits contemplated under the Updated Program Guidelines and is eligible for participation in the Program.
WHEREAS, under the Updated Program Guidelines, the City is authorized to provide grants to commercial businesses with no match requirements from eligible applicants.
WHEREAS, Section 206 of the Carson Charter is consistent with Government Code Section 53083 which authorizes local agencies to provide economic development subsidies in the amount $100,000 or more where the local agency provides written notice through its website concerning the economic development subsidy and the information required under subsection (a) therein.
WHEREAS, in those instances where the Grant Funds equal $100,000 or more, the City has complied with all requirements of Government Code Section 53083.
WHEREAS, 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 “CEQA 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 CEQA Guidelines section 15378, because City has deter mined, in its discretion and based on substantial evidence, that this Agreement presents no potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment, or alternativ ely, even if it did constitute a project, it would be exempt pursuant to Section 15301 of the CEQA Guidelines (Class 1 exemption for minor alteration of existing public or private structures involving negligible or no expansion of existing use).
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WHEREAS, in accordance with the City’s Charter powers and Ordinance No. 24- 2404, the City Council wishes to enter into this Agreement with Grantee to provide a grant in order to further the objectives of the Program , it being understood that Section 206 of the Charter allows the City to pursue economic development to the maximum degree permitted by the California Constitution.
NOW, THEREFORE, in consideration of the mutual covenants, agreements and conditions contained herein, and upon acknowledgement of each of the Parties of the receipt of valuable consideration, it is agreed as follows:
AGREEMENT
SECTION 1: GRANT FUNDING; PAYMENT; PUBLIC BENEFITS
In lieu of disbursement of grant monies to Grantee, the Parties agree that City will disburse to Grantee ’s contractor an amount not to exceed $57,800 (“Grant Funds”) for satisfactory completion of the Project upon submission by Grantee’s contractor of the documentation required in Section 2 of Grantee’s contract with its contractor (Exhibit B).
Under the Updated Program Guidelines, City funds are eligible for uses including but not limited to: installation of new or repair or replacement of exterior signs; installation of new or repair or replacement of awnings, canopies, or sunshades; painting or replace or repair exterior surface treatment; asphalt paving, replacement or repair of tiles or decorative pavers; sidewalk or courtyard repaving; repair or replacement of masonry walls or footings; outdoor lighting: installation of new exterior lighting fixtures or repair or replacement of existing exterior lighting fixtures ; i nstallation, repair or replacement of decorative or security fencing; replacement of plate glass windows; re-glazing of windows or change of window mullions with the approval of application by the City.
The City Council finds that the Program, as implemented in part through completion of the Project, will without limitation, stimulate commercial development within the City, increase jobs, decrease blight, and increase tax revenue to the City (“Public Benefits”). As an additional Public Benefit, w here feasible for Grantee when hiring contractors to perform work for the Project, Grantee shall use commercially reasonable, good faith efforts to hire contractors whose principal address is located within the City of Carson.
SECTION 2: WORK COMPLETION; PREVAILING WAGES
2.1 SCOPE OF WORK AND SCHEDULE OF PERFORMANCE
Grantee agrees that it shall utilize the Grant Funds to pay for those improvements 4 specified in the Scope of Work attached hereto and incorporated herein as Exhibit “A,” which is at times referred to herein as the “Project,” in accordance with Grantee’s completed application (“Application”) on file at City Hall. No changes or additions to the Scope of Work will be permitted without prior written approval of the City’s Contract Officer, and any changes made without the requisite approval will not be eligible for funding and will be deemed a material breach of this Agreement. All work toward such Project will be performed and completed (i) by Grantee entering into a contract with its selected contractor where the contract is substantially similar to the sample contract provided in Exhibit “B” ; (ii) within and in accordance with the Updated Project Guidelines; (iii) by a State licensed contractor within the time period(s) established in Exhibit “C,” the “Schedule of Performance” unless otherwise authorized by the City; and (iv) in accordance with approved construction documents as detailed in Exhibit “D,” with Exhibits B, C and D attached hereto and incorporated herein by this reference. Grantee agrees to allow the City or its agents access to buildings and the storefront improvements at the Property, when convenient for the Parties, for inspection of the Project wor k. Such inspections shall not replace any required permit inspections by the City’s Building Inspectors. All work which is not in conformance with the approved plans, design drawings and specifications shall be immediately remedied by the Grantee at Grante e’s sole expense and deficient or improper work shall be replaced and made to comply with the approved plans, design drawings and specifications and the terms of the Agreement.
2.2 PREVAILING WAGES
Certain or all portions of the Project may be subject to prevailing wages under the Labor Code. More specifically, if the amount of the Grant Funds exceeds $1,000 and is 2% or more of the total cost of the Project, the below provisions will apply.
Grantee acknowledges that the construction and construction-related activities for the Project are subject to the California Prevailing Wage Law, and Grantee is required to pay the general prevailing wage rates of per diem wages and overtime and holiday wages determined by the Director of the Department of Industrial Relations (“DIR”) under Section 1720, et seq., of the California Labor Code for all covered work performed on the Project. The applicable prevailing rates are on file with, and open to inspect ion at, the Community & Economic Development Department (Special Projects Division) and is referred to and made a part hereof. Due to the fact that Prevailing Wage Law applies to construction work performed for the Project, the Grantee’s contractor(s) shall submit weekly certified payrolls of all workers employed on the construction of the Project to the City in a form acceptable to the City. Grantee acknowledges the possibility of wage increases during construction work performed for the Project and that Grantee and/or its contractor(s) shall be responsible for paying such increases. Grantee acknowledges that it is aware of and shall comply with, and that its contractor(s) shall be aware of and shall comply with, the following sections of the California La bor Code: (i) Section 1725.5 requiring that all contractors and subcontractors performing work on the Project be registered with, and pay an annual fee to, the DIR prior to and during the performance of any work towards the Project; (ii) Section 1775 presc ribing penalties for failure to pay prevailing wage rates; (iii) Section 1776 requiring the making, keeping, and disclosing of
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detailed certified payroll records and prescribing penalties for failure to do so; (iv) Section 1777.5 prescribing the terms and conditions for employing registered apprentices; (v) Section 1810 providing that eight hours of labor shall constitute a day’s work; and (vi) Section 1813 prescribing penalties for violations of the provisions concerning eight - hour work days and forty-hour work weeks. If Grantee violates the foregoing or any other Prevailing Wage Laws, Grantee shall be solely liable for the cost thereof and shall indemnify and hold the City officers, employees and agents harmless from any liability or penalties therefor. This Project will be developed and budgeted for assuming the payment of prevailing wages as needed.
2.3 PROJECT FUNDING
Grant Funds shall only be used to pay for the improvements as stipulated under the Scope of Work (Exhibit A) and in the time and manner specified under the Schedule of Performance (Exhibit C). It is incumbent upon the Grantee to ensure that Project is carried out in accordance with the Project’s approved scope and timeline . Any deviation in the Scope of Work and/or Schedule of Performance must be approved by the City in advance and in writing. Work performed outside the specification of the Scope of Work and/or outside the timeframe established under the Schedule of Performance are not eligible for Grant Funds.
2.4 COVENANT FOR COMPLETION AND MAINTENANCE
Concurrent with execution of this Agreement, Grantee shall execute a Covenant for Completion and Maintenance to be recorded with the Los Angeles County Recorder’s Office, a copy of which covenant is attached hereto and incorporated herein by this reference as Exhibit “E,” requiring Grantee or its successors and assigns, to complete the Project in accordance with the Schedule of Performance (Exhibit “C”). The covenant will also require Grantee and its successors and assigns to maintain the design and paint colors established for the Property under this Agreement for a period of at least five (5) years from the date the Project is completed , as determined by the Citywide Façade Improvement Program manager or designee.
SECTION 3: AUDITS; MISUSE OF FUNDS
City reserves the right to designate its own employee representative(s) or its contracted representative(s) with a Certified Public Accounting firm who shall have the right to audit Grantee’s accounting procedures and internal controls of Grantee’s financial systems as they relate to the Grant Funds and to examine any cost, revenue, payment, claim, other records or supporting documentation resulting from any items set forth in this Agreement. Any such audit(s) shall be undertaken by City or its representati ve(s) at mutually agreed upon reasonable times and in conformance with generally accepted auditing standards. Grantee agrees to fully cooperate with any such audit(s).
If the Grantee, or Grantee’s designated contractor should utilize the funds for anything other than as stated in the Application, the City may thereupon recover the entire 6 amount of the Grant Funds from Grantee and/or the subsequent operator of the Property, together with reasonable attorney fees and costs incurred in enforcing this provision. This provision shall not apply where the proposed changes are first reviewed and approved by the City. Approval shall not be unreasonably withheld to the extent the proposed changes are authorized in the Updated Program Guidelines.
SECTION 4: REMEDIES FOR BREACH
In the event the Grantee or any subsequent operator breaches Section 3 of this Agreement, in addition to all legal and equitable remedies available to the City, the City may thereupon deny any request(s) for reimbursement and/or recover the entire amount of the Grant Funds from the Grantee and/or the subsequent operator of the Property, together with reasonable attorney fees and costs incurred in enforcing this provision.
SECTION 5: INSURANCE AND INDEMNIFICATION.
5.1 INDEMNIFICATION
To the maximum extent permitted by law, the Grantee hereby agrees, at its sole cost and expense, to defend protect, indemnify, and hold harmless the City, its elected and appointed officials, officers, employees, volunteers, attorneys, and agents (collecti vely "Indemnitees") from and against any and all claims, including, without limitation, claims for bodily injury, death or damage to property, demands, charges, obligations, damages, causes of action, proceedings, suits, losses, stop payment notices, judgments, fines, liens, penalties, liabilities, costs and expenses of every kind and nature whatsoever, in any manner arising out of, incident to, related to, in connection with or arising from any act, failure to act, error or omission of the Grantee’s performance or work hereunder (including any of its officers, agents, employees, contractors) or its failure to comply with any of its obligations contained in the Agreement, or its failure to comply with any current or prospective law, or any loss of business i n connection with construction over the course of completion of the Project and damage to City property, or any construction defect that may arise from City -provided design services or the Project’s compliance with City - recommended designs, or any other liability that may arise from work performed on the Project pursuant to the contract between Grantee and its contractor, except for such loss or damage which was caused by the sole negligence or willful misconduct of the City. The Grantee’s obligation to indemnify shall not be restricted to insurance proceeds, if any, received by the Grantee or Indemnitees. This indemnification obligation shall survive this Agreement and shall not be limited by any term of any insurance policy required under this Agreement.
Indemnitees do not and shall not waive any rights that they may possess against the Grantee because the acceptance by City, or the deposit with City, of any insurance policy or certificate required pursuant to this Agreement.
The Grantee, on behalf of itself and all parties claiming under or through it, hereby waives all rights of subrogation and contribution against the Indemnitees.
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5.2 INSURANCE.
A. Without limiting Grantee’s obligations to City under Section 5.1, and prior to commencement of any construction toward the Project , Grantee shall obtain, provide and maintain at its own expense during the term of this Agreement (at times extending beyond the term), policies of insurance of the types and amounts described below and in a form satisfactory to City.
(i) Commercial General Liability Insurance (Occurrence Form CG0001 or equivalent) . Grantee shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form ISO CGL CG 00 01 or equivalent, in an amount not less than $ 2,000,000 per occurrence, $ 4,000,000 general aggregate, for bodily injury, personal injury, and property damage. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted.
(ii) Worker’s Compensation Insurance. Grantee shall maintain a policy of worker’s compensation insurance in such amount as will fully comply with the laws of the State of California and which shall indemnify, insure and provide legal defense for Grantee against any loss, claim or damage arising from any injuries or occupational diseases occurring to any worker employed by or any persons retained by the Grantee in the course of carrying out the work contemplated in this Agreement.
(iii) Automotive Insurance. Grantee shall maintain ISO Form Number CA 00 01 covering any auto (Code 1), or if the Grantee has no owned autos, covering hired (Code 8), and non -owned autos (Code 9), with limit no less than $1,000,000 combined single limit for each accident for bodily injury and property damage.
(iv) Flood Insurance. If the Property is located in a FEMA designated high-risk area (zones A or V) , Grantee shall maintain flood insurance in an amount not less than the total cost of the improvements specified in the Scope of Work.
(v) Builder’s Risk Insurance . Grantee shall maintain Builder’s Risk (Course of Construction) insurance utilizing an “All Risk” (Special Perils) coverage form, with limits equal to the completed value of the Project and no coinsurance penalty provisions or provisional limit provisions. The policy must include: (1) coverage for any ensuing loss from faulty workmanship, nonconforming work, omission or deficiency in design or specifications; (2) coverage against machinery accidents and operational testing; (3) co verage for removal of debris, and insuring the buildings, structures, machinery, equipment, materials, facilities, fixtures and all other properties constituting a part of the project; (4) ordinance or law coverage for contingent rebuilding, demolition, and increased costs of construction; (5) transit coverage (unless insured by the supplier or receiving contractor), with sub -limits sufficient to insure the full replacement value of any key equipment item; (6) ocean marine cargo coverage insuring any projec t materials or supplies, if applicable; (7) coverage with sub -limits sufficient to insure the full 8 replacement value of any property or equipment stored either on or off the Project site or any staging area. The City shall be included as a “loss payee” in the amount of the Grant Funds.
If the Grant Funds is less than $50,000, then at the option of City, an Installation Floater may be acceptable in lieu of Builder’s Risk Insurance . For Contract Sum exceeding $50,000, an Installation Floater may still be considered in place of Builder’s Risk based on the project scope, subject to approval by the City’s Risk Manager. For such projects, a Property Installation Floater shall be obtained that provides for the improvement, remodel, modification, alteration, conversion or adjustment to existing buildings, structures, processes, machinery and equipment. The Property Installation Floater shall provide property damage coverage for any building, structure, machinery or equipment damaged, impaired, broken, or destroyed during the performance of the work, including during transit, installation, and testing at the Project site.
B. General Insurance Requirements . All of the above policies of insurance shall be primary insurance and shall name the City, its elected and appointed officers, employees and agents as additional insureds and any insurance maintained by City or its officers, employees or agents may apply in excess of, and not contribute with the insured’s insurance. The insurer is deemed hereof to waive all rights of subrogation and contribution it may have against the City, its officers, employees and agents and their re spective insurers. The insurance policy must specify that where the primary insured does not satisfy the self-insured retention, any additional insured may satisfy the self -insured retention.
All of said policies of insurance shall provide that said insu rance may not be amended, cancelled or non-renewed by the insurer or any Party hereto without providing thirty (30) days prior written notice by certified mail return receipt requested to the City. In the event any of said policies of insurance are cancelled, the Grantee shall, prior to the cancellation date, submit new evidence of insurance in conformance with this section to the Contract Officer. No work or services under this Agreement shall commence until the Grantee has provided the City with Certificates of Insurance, additional insured endorsement forms or appropriate insurance binders evidencing the above insurance coverages and said Certificates of Insurance or binders are approved by the City. City reserves the rig ht to inspect complete, certified copies of and endorsements to all required insurance policies at any time. Any failure to comply with the reporting or other provisions of the policies including breaches or warranties shall not affect coverage provided to City.
The insurance required by this Agreement shall be satisfactory only if issued by companies qualified to do business in California, rated “A -” or better in the most recent edition of Best Rating Guide, The Key Rating Guide or in the Federal Register, and only if they are of a financial category Class VII or better, unless such requirements are waived by the City’s Risk Manager or other designee of the City due to unique circumstances.
SECTION 6: ADDITIONAL WORK
Nothing contained in this Agreement is intended to limit, restrict, or prohibit the Grantee from undertaking additional work in or about the subject premises, which is
01007.0001/874383.1
unrelated to the approved improvements provided for in this Agreement ; provided, however, that City approves such work in advance.
SECTION 7: TERM AND TERMINATION
7.1 TERM
This Agreement shall be binding upon the City and upon the Grantee and Grantee’s successor(s) to the Property for a period of (2) two years after the Effective Date. It shall be the responsibility of the Grantee to inform subsequent owner(s)/lessee(s) of the Property of the provisions of this Agreement.
7.2 TERMINATION
The City reserves the right to terminate this Agreement at any time, with or without cause, upon thirty (30) days’ written notice to Grantee, except that where termination is due to the fault of Grantee, the period of notice may be such shorter time as may be determined by the Contract Officer. In addition, Grantee may terminate this Agreement if and only if all of the following criteria are met: (i) City is in default under the terms of this Agreement; (ii) Grantee has given City thirty (30) days’ written notice (or longer, if circumstances warrant) of the default and the reasons for the default; and (iii) City has failed to cure the default within said cure period. Without limiting the generality of the foregoing, City may terminate this Agreement for cause where Grantee fails to cooperate or respond to communications from the City. In any such event , City may issue a 14 -day notice requesting confirmation of continued participation in the Program and if Grantee does not respond within that period, the City may issue a termination letter which will serve as notice of termination of this Agreement . Immediately following termination of this Agreement for any reason, City and Owner must notify Owner’s contractor in writing of such termination.
SECTION 8: DESIGNS
Notwithstanding any provision of this Agreement, Grantee is responsible for obtaining applicable design review approvals, obtaining all required permits, and complying with all applicable laws and Updated Program Guidelines. As part of the Program, City has offered Grantee complimentary design guidance services for the Project (“Design Guidance Services”) and, unless Grantee indicates by checking the box below, Grantee agrees to utilize City’s Design Guidance Services for the Project. Grantee utilizing the Program’s complimentary design guidance are also subject to requirements of this section.
By checking the box above, Grantee acknowledges that City has offered Grantee complimentary Design Guidance Services but Grantee has declined such services and 10 instead, is electing to obtain its own licensed architect to prepare designs for the Project.
In so doing, Grantee understands and agrees that all designs prepared by Grantee’s architect must comply with City’s recommended designs for the Project.
SECTION 9: MISCELLANEOUS PROVISIONS
9.1 RECITALS.
All recitals in this Agreement are hereby incorporated into this Agreement as if set forth fully herein.
9.2 COVENANT AGAINST DISCRIMINATION.
Grantee covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that in the performance of this Agreement, there shall be no discrimination against or segregation of any person or group of persons o n account of race, religious creed, color, gender, national origin, ancestry, physical disability, mental disability, medical condition, pregnancy, marital status, age, sexual orientation, or any other basis pertaining to a protected characteristic under a pplicable federal, state, or local law.
9.3 CONFLICTS OF INTEREST.
Grantee, its agents and employees shall comply with applicable federal, state, and local laws and regulations governing conflict of interest. Grantee covenants that it presently has no interest and shall not acquire any interest, direct or indirect, that may be affected by its obligations to perform under this Agreement, or that would conflict in any manner with its obligations hereunder. Grantee further covenants that, in performing this Agreement, no person having any such interest shall be employed by i t. Furthermore, Grantee shall avoid the appearance of having any interest that would conflict in any manner with the performance of its services pursuant to this agreement. Grantee agrees not to accept any employment or representation during the term of this Agreement that is or may likely make Grantee “financially interested” (as provided in California Government Code Sections 1090 and 87100) in any decision made by City on any manner in connection with which Grantee has been retained pursuant to this Agreement.
9.4 WARRANTY AND REPRESENTATION OF NON-COLLUSION.
City hereby warrants and represents that no official, officer, agent or employee of the City has any financial interest, direct or indirect, in this Agreement, nor shall any official, officer, agent or employee of the City participate in any decision relating to this Agreement which may affect his/her financial interest or the financial interest of any corporation, partnership, or association in which (s)he is directly interested, or in violation of any state or municipal statute or regulation. The determi nation of “financial interest” shall be consistent with State law and shall not include interest found to be “remote” or “non interest” pursuant to California Government Code Sections 1091 and 1091.5.
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Grantee hereby warrants and represents that (s)he/it has not engaged in any act(s), omission(s), or other conduct or collusion that would result in the payment of any money, consideration, or other thing of value to any third party including, but not limit ed to, any City official, officer, agent or employee, as a result or consequence of obtaining or being awarded any agreement. Grantee is aware of and understands that any such act(s), omission(s), or other conduct resulting in the payment of money, consid eration, or other thing of value will render this Agreement void and of no force and effect.
Grantee Representative Initials _____
9.5 PROHIBITED AND PERMITTED USE OF FUNDS.
Grantee acknowledges and understands that it is prohibited from using the Grant Funds for any purpose that is not permitted under the Updated Program Guidelines.
Grantee agrees to use Grant Funds only for the purpose stated in Grantee’s application and for the purpose of completion of the Project.
9.6 FALSE STATEMENTS.
Grantee understands that making false statements or claims in connection with this Agreement is a violation of federal law and may result in criminal, civil, or administrative sanctions, including fines, imprisonment, civil damages and penalties, debarment from participating in federal awards or contracts, and/or any other remedy available by law.
9.7 NOTICES.
All notices, demands, invoices, and communications shall be in writing and delivered to the following addresses or such other addresses as the Parties may designate by written notice:
To City: City of Carson
701 East Carson Street
Carson, CA 90745
Attn: James Nguyen, Special Projects Manager
Email: [email protected]
To Grantee: Niko Maeinakis
2713 E Carson Street
Carson, CA 90810
Email: [email protected]
Phone: (310) 753 - 6456
9.8 SEVERABILITY.
Any provision of this Agreement that is found invalid or unenforceable shall be 12 deemed severed and all remaining provisions of this Agreement shall remain enforceable to the fullest extent permitted by law.
9.9 CORPORATE AUTHORITY.
The persons executing this Agreement on behalf of the Parties warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said Party, (iii) by so executing this Agreement, such Party is formally bound to the provisions of this Agreement, and (iv) the entering into this Agreement does not violate any provision of any other Agreement to which said Party is bound. This Agreement shall be binding upon the heirs, executors, administ rators, successors and assigns of the Parties.
9.10 GRANTEE REPRESENTATIVE AND CITY’S CONTRACT OFFICER.
The following principal(s) and/or representative(s) of Grantee is/are hereby designated as the person(s) authorized to act on Grantee’s behalf with respect to this Agreement and to make all decisions in connection herewith:
Niko Maeinakis, Owner
James Nguyen, Special Projects Manager, or such person as may be designated by the City Manager, is hereby designated as being the representative the City authorized to act in its behalf with respect to the work and Project specified herein and to make all decisions in connection therewith (“Contract Officer”).
9.11 WAIVER.
The waiver by the City of any breach of any term or prov ision of this Agreement shall not be construed as a waiver of any subsequent breach.
9.12 GOVERNING LAW AND VENUE.
This Agreement shall be construed in accordance with the laws of the State of California without regard to principles of conflicts of law. Venue for any litigation or other action arising hereunder shall reside exclusively in the Superior Court of the Coun ty of Los Angeles, Southwest Judicial District.
9.13 INTERPRETATION.
Grantee acknowledges that it has had ample opportunity seek legal advice with respect to the negotiation of this Agreement. This Agreement shall be interpreted as if drafted by both parties.
9.14 TIME OF ESSENCE.
Time is of the essence of this Agreement.
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9.15 THIRD PARTIES.
Nothing herein shall be interpreted as creating any rights or benefits in any third parties. For purposes hereof, transferees or assignees as permitted under this Agreement shall not be considered "third parties."
9.16 NON-LIABILITY OF OFFICIALS AND EMPLOYEES OF THE CITY.
No official or employee of the City shall be personally liable for any default or liability under this Agreement.
9.17 COUNTERPARTS AND SIGNATURES.
This Agreement may be executed in one or more counterparts, each of which will be deemed to be an original copy of this Agreement, and all of which, when taken together, will be deemed to constitute one and the same agreement. The facsimile, email or other electronically delivered signatures of the Parties shall be deemed to constitute original signatures.
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14 WITNESS WHEREOF, the Parties have executed this Agreement on the date first above written.
CITY:
CITY OF CARSON, a California
charter city
_____________________________
David C. Roberts, Jr., City Manager
ATTEST:
___________________________________
Dr. Khaleah R. Bradshaw, City Clerk
APPROVED AS TO FORM:
Aleshire & Wynder, LLP
___________________________________
Sunny K. Soltani, City Attorney
GRANTEE:
____________________________
_____________________________
Name:
_____________________________
Title:
_____________________________
Name:
_____________________________
Title:
*Two corporate officer signatures required when Grantee is a corporation, with one signature required from each of the following groups: 1) Chairman of the Board , President or any Vice President; and 2) Secretary, any Assistant Secretary, Chie f Financial Officer or any Assistant Treasurer. APPROPRIATE ATTESTATIONS SHALL BE INCLUDED AS MAY BE REQUIRED
BY THE BYLAWS, ARTICLES OF INCORPORATION, OR OTHER RULES OR REGULATIONS APPLICABLE TO CONTRACTOR’S BUSINESS ENTITY.
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CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
On __________, 2026 before me, ________________, personally appeared ________________, proved to me on the basis of satisfactory evidence to be the person(s) whose names(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same i n 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: _____________________________________
OPTIONAL
Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form
CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT
INDIVIDUAL
CORPORATE OFFICER
_______________________________
TITLE(S)
PARTNER(S) LIMITED
GENERAL
ATTORNEY-IN-FACT
TRUSTEE(S)
GUARDIAN/CONSERVATOR
OTHER____________________________
___________________________________
SIGNER IS REPRESENTING:
(NAME OF PERSON(S) OR ENTITY(IES))
__________________________________________
__________________________________________
___________________________________
TITLE OR TYPE OF DOCUMENT
___________________________________
NUMBER OF PAGES
___________________________________
DATE OF DOCUMENT
___________________________________
SIGNER(S) OTHER THAN NAMED ABOVE
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. 16 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
On __________, 2026 before me, ________________, personally appeared ________________, proved to me on the basis of satisfactory evidence to be the person(s) whose names(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same i n 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: _____________________________________
OPTIONAL
Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form
CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT
INDIVIDUAL
CORPORATE OFFICER
_______________________________
TITLE(S)
PARTNER(S) LIMITED
GENERAL
ATTORNEY-IN-FACT
TRUSTEE(S)
GUARDIAN/CONSERVATOR
OTHER____________________________
___________________________________
SIGNER IS REPRESENTING:
(NAME OF PERSON(S) OR ENTITY(IES))
__________________________________________
__________________________________________
___________________________________
TITLE OR TYPE OF DOCUMENT
___________________________________
NUMBER OF PAGES
___________________________________
DATE OF DOCUMENT
___________________________________
SIGNER(S) OTHER THAN NAMED ABOVE
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.
01007.0001/874383.1
EXHIBIT “A"
SCOPE OF WORK
Commercial Façade Improvement Program
Name: Niko Maeinakis Tel. No.: 310-830-7600 #1306
Address: 2713 E Carson St. Date: 05/05/2026
All work is to be done per City of Carson building, planning, and public works codes after submission of all applicable contractor’s licenses to the City’s Contract Officer. In order to establish standards of quality, the detailed specifications may refer to a certain product by name and/or from a major manufacturer. This procedure is not to be construed as eliminating from competition of other product of equal or better quality by other manufacturers. The Grantee shall furnish a list of proposed desired su bstitutions prior to signing of the contract. All items listed on work write-up, unless otherwise specified, shall include all finish work, including all trim hardware, patching, and finish painting and/or staining. All overhead and profit should be includ ed in each line item. Use of lead -based paint is prohibited. Removal or work on asbestos and lead containing materials is subject to applicable federal, state, and local regulations.
Any questions regarding this project, the plans, and specifications should be submitted to Miguel Rameriz at [email protected].
WORK DESCRIPTION AND STANDARD SPECIFICATIONS
Attached images are from the Bid Proposal Form
Case# CRP-2512
Dated: October 27, 2025.
File Name: DAN P4 Pages, 24-27
18 01007.0001/874383.1
20 01007.0001/874383.1
22 01007.0001/874383.1
24 NOTE:
Grantee must obtain and pay for City of Carson building permits, business license, and inspections.
All work shall include the protection of building as well as maintaining the premises clean at all times.
All debris resulting from any work conducted in connection with this contract shall be the property of the Grantee, who is responsible for its timely removal and lawful disposal. Work site shall be maintained in a clean and orderly manner, and upon completion, property shall be left in a “broom clean” condition.
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EXHIBIT “B”
SAMPLE CONTRACTOR AGREEMENT
26 EXHIBIT “C”
SCHEDULE OF PERFORMANCE
PERMITS: Before commencement of any Project work, Grantee and its contractor shall obtain any and all permits and approvals which may be required by the City or any other governmental agency with jurisdiction. Execution of this Agreement by City shall not be construed as any commitment by City to issue any permits and Grantee and its contractor must obtain all permits pursuant to the City’s standard process and requirements.
COMMENCEMENT OF PROJECT WORK : Grantee agrees that the Project work shall not commence until all permits are issued and City has issued a Notice to Proceed and delivered same to Grantee (“Notice to Proceed”).
In lieu of disbursement of grant monies to Grantee, the Parties agree that City will disburse to Grantee’s contractor an amount not to exceed $57,800 (“Grant Funds”) for satisfactory completion of the Project upon submission by Grantee’s contractor of the documentation required in Section 2 of Grantee’s contract with its contractor (Exhibit B).
CONSTRUCTION SCHEDULE: The Project work shall commence not later than ten (10) days after the City issues the Notice to Proceed to Grantee and its contractor, and shall be completed within ninety (90) days thereafter except as stated otherwise or as mutually agreed in writing by Grantee and City. The Project work shall be deemed complete upon written notification specifying that the Project work has been compl eted issued by the Citywide Façade Improvement Program manager or designee and delivered to Grantee.
The City shall make reasonable efforts to coordinate construction activities with Grantee to minimize disruption to the operation of the business to the maximum extent practicable.
At the City’s sole discretion, the schedule may be modified subject to the approval of the City’s Program Manager or his/her designee.
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EXHIBIT “D”
APPROVED CONSTRUCTION DOCUMENTS
[TO BE INSERTED SEPARATELY]
28 EXHIBIT “E”
COVENANT FOR COMPLETION AND MAINTENANCE
01007.0001/874383.1
FAÇADE IMPROVEMENT PROGRAM GRANT AGREEMENT
[ECONOMIC DEVELOPMENT BENEFIT AGREEMENT
FOR EAST CARSON CORRIDOR]
This Façade Improvement Program Grant Agreement (“Agreement”) is entered into effective ____________, 20 26 (“Effective Date”) , by and between the CITY OF CARSON, a charter city and municipal corporation (the “City”), on the one hand, and DML Properties (“Grantee”), owner of property located at 2717 – 2721 E Carson St. , Carson, C alifornia (“Property”), on the other hand. The parties hereto are collectively referred to as the “Parties.”
RECITALS
WHEREAS, on June 21, 2022, the City passed Resolution No. 22 -131 which established a Citywide Commercial Facade Improvement Program (the “Program”) pursuant to the adopted C arson Façade Improvement Program Guidelines (“Program Guidelines”) for the public purpose of encouraging the improvement , stimulation and revitalization of the exterior facades of existing commercial buildings in various commercial corridors such as along Avalon Boulevard, Main Street, Sepulveda Boulevard, Carson Street, and Figueroa Street.
WHEREAS, the Program is administered by the City and funded by City’s General Fund pursuant to an authorized allocation made by the City Council during the City’s budget adoption process.
WHEREAS, on ________________, 2026, the City Council approved changes to the Program by adopting a modified version of the Program Guidelines (“Updated Program Guidelines”) which now contains a no match requirement for certain businesses located on the north side of Carson Street between Harbor View Avenue and Santa Fe Avenue.
WHEREAS, 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, or any other economic development subsidy, after a public hearing 2 identifying the amount and terms of such assistance and the justification for such assistance.
WHEREAS, on March 19, 2024, the City Council adopted Ordinance No. 24-2404 in furtherance of Section 206 of the Charter, specifically authorizing the City to pursue economic development activities by entering into agreements for provision of loans or grants to certain commercial property owners.
WHEREAS, the incentives provided in this Agreement are intended by the City to be consistent with and promote the purposes of Section 206 of the Charter, Ordinance No. 24-2404 and the Updated Program Guidelines by City providing a grant to Grantee for the purpose of, without limitation, stimulating commercial development within the City, increasing jobs, decreasing blight, and increasing tax revenue to the City. This Agreement has been approved by the City Council following all legally required notices and public hearings.
WHEREAS, the Property is a commercial business located within the geographical limits contemplated under the Updated Program Guidelines and is eligible for participation in the Program.
WHEREAS, under the Updated Program Guidelines, the City is authorized to provide grants to commercial businesses with no match requirements from eligible applicants.
WHEREAS, Section 206 of the Carson Charter is consistent with Government Code Section 53083 which authorizes local agencies to provide economic development subsidies in the amount $100,000 or more where the local agency provides written notice through its website concerning the economic development subsidy and the information required under subsection (a) therein.
WHEREAS, in those instances where the Grant Funds equal $100,000 or more, the City has complied with all requirements of Government Code Section 53083.
WHEREAS, 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 “CEQA 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 CEQA Guidelines section 15378, because City has deter mined, in its discretion and based on substantial evidence, that this Agreement presents no potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment, or alternativ ely, even if it did constitute a project, it would be exempt pursuant to Section 15301 of the CEQA Guidelines (Class 1 exemption for minor alteration of existing public or private structures involving negligible or no expansion of existing use).
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WHEREAS, in accordance with the City’s Charter powers and Ordinance No. 24- 2404, the City Council wishes to enter into this Agreement with Grantee to provide a grant in order to further the objectives of the Program , it being understood that Section 206 of the Charter allows the City to pursue economic development to the maximum degree permitted by the California Constitution.
NOW, THEREFORE, in consideration of the mutual covenants, agreements and conditions contained herein, and upon acknowledgement of each of the Parties of the receipt of valuable consideration, it is agreed as follows:
AGREEMENT
SECTION 1: GRANT FUNDING; PAYMENT; PUBLIC BENEFITS
In lieu of disbursement of grant monies to Grantee, the Parties agree that City will disburse to Grantee’s contractor an amount not to exceed $131,900 (“Grant Funds”) for satisfactory completion of the Project upon submission by Grantee’s contractor of the documentation required in Section 2 of Grantee’s contract with its contractor (Exhibit B).
Under the Updated Program Guidelines, City funds are eligible for uses including but not limited to: installation of new or repair or replacement of exterior signs; installation of new or repair or replacement of awnings, canopies, or sunshades; painting or replace or repair exterior surface treatment; asphalt paving, replacement or repair of tiles or decorative pavers; sidewalk or courtyard repaving; repair or replacement of masonry walls or footings; outdoor lighting: installation of new exterior lighting fixtures or repair or replacement of existing exterior lighting fixtures ; i nstallation, repair or replacement of decorative or security fencing; replacement of plate glass windows; re-glazing of windows or change of window mullions with the approval of application by the City.
The City Council finds that the Program, as implemented in part through completion of the Project, will without limitation, stimulate commercial development within the City, increase jobs, decrease blight, and increase tax revenue to the City (“Public Benefits”). As an additional Public Benefit, w here feasible for Grantee when hiring contractors to perform work for the Project, Grantee shall use commercially reasonable, good faith efforts to hire contractors whose principal address is located within the City of Carson.
SECTION 2: WORK COMPLETION; PREVAILING WAGES
2.1 SCOPE OF WORK AND SCHEDULE OF PERFORMANCE
Grantee agrees that it shall utilize the Grant Funds to pay for those improvements 4 specified in the Scope of Work attached hereto and incorporated herein as Exhibit “A,” which is at times referred to herein as the “Project,” in accordance with Grantee’s completed application (“Application”) on file at City Hall. No changes or additions to the Scope of Work will be permitted without prior written approval of the City’s Contract Officer, and any changes made without the requisite approval will not be eligible for funding and will be deemed a material breach of this Agreement. All work toward such Project will be performed and completed (i) by Grantee entering into a contract with its selected contractor where the contract is substantially similar to the sample contract provided in Exhibit “B” ; (ii) within and in accordance with the Updated Project Guidelines; (iii) by a State licensed contractor within the time period(s) established in Exhibit “C,” the “Schedule of Performance” unless otherwise authorized by the City; and (iv) in accordance with approved construction documents as detailed in Exhibit “D,” with Exhibits B, C and D attached hereto and incorporated herein by this reference. Grantee agrees to allow the City or its agents access to buildings and the storefront improvements at the Property, when convenient for the Parties, for inspection of the Project work. Such inspections shall not replace any required permit inspections by the City’s Building Inspectors. All work which is not in conformance with the approved plans, design drawings and specifications shall be immediately remedied by the Grantee at Grantee’s sole expense and deficient or improper work shall be replaced and made to comply with the approved plans, design drawings and specifications and the terms of the Agreement.
2.2 PREVAILING WAGES
Certain or all portions of the Project may be subject to prevailing wages under the Labor Code. More specifically, if the amount of the Grant Funds exceeds $1,000 and is 2% or more of the total cost of the Project, the below provisions will apply.
Grantee acknowledges that the construction and construction-related activities for the Project are subject to the California Prevailing Wage Law, and Grantee is required to pay the general prevailing wage rates of per diem wages and overtime and holiday wages determined by the Director of the Department of Industrial Relations (“DIR”) under Section 1720, et seq., of the California Labor Code for all covered work performed on the Project. The applicable prevailing rates are on file with, and open to inspect ion at, the Community & Economic Development Department (Special Projects Division) and is referred to and made a part hereof. Due to the fact that Prevailing Wage Law applies to construction work performed for the Project, the Grantee’s contractor(s) shall submit weekly certified payrolls of all workers employed on the construction of the Project to the City in a form acceptable to the City. Grantee acknowledges the possibility of wage increases during construction work performed for the Project and that Grantee and/or its contractor(s) shall be responsible for paying such increases. Grantee acknowledges that it is aware of and shall comply with, and that its contractor(s) shall be aware of and shall comply with, the following sections of the California La bor Code: (i) Section 1725.5 requiring that all contractors and subcontractors performing work on the Project be registered with, and pay an annual fee to, the DIR prior to and during the performance of any work towards the Project; (ii) Section 1775 presc ribing penalties for failure to pay prevailing wage rates; (iii) Section 1776 requiring the making, keeping, and disclosing of
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detailed certified payroll records and prescribing penalties for failure to do so; (iv) Section 1777.5 prescribing the terms and conditions for employing registered apprentices; (v) Section 1810 providing that eight hours of labor shall constitute a day’s work; and (vi) Section 1813 prescribing penalties for violations of the provisions concerning eight - hour work days and forty-hour work weeks. If Grantee violates the foregoing or any other Prevailing Wage Laws, Grantee shall be solely liable for the cost thereof and shall indemnify and hold the City officers, employees and agents harmless from any liability or penalties therefor. This Project will be developed and budgeted for assuming the payment of prevailing wages as needed.
2.3 PROJECT FUNDING
Grant Funds shall only be used to pay for the improvements as stipulated under the Scope of Work (Exhibit A) and in the time and manner specified under the Schedule of Performance (Exhibit C). It is incumbent upon the Grantee to ensure that Project is carried out in accordance with the Project’s approved scope and timeline . Any deviation in the Scope of Work and/or Schedule of Performance must be approved by the City in advance and in writing. Work performed outside the specification of the Scope of Work and/or outside the timeframe established under the Schedule of Performance are not eligible for Grant Funds.
2.4 COVENANT FOR COMPLETION AND MAINTENANCE
Concurrent with execution of this Agreement, Grantee shall execute a Covenant for Completion and Maintenance to be recorded with the Los Angeles County Recorder’s Office, a copy of which covenant is attached hereto and incorporated herein by this reference as Exhibit “E,” requiring Grantee or its successors and assigns, to complete the Project in accordance with the Schedule of Performance (Exhibit “C”). The covenant will also require Grantee and its successors and assigns to maintain the design and paint colors established for the Property under this Agreement for a period of at least five (5) years from the date the Project is completed , as determined by the Citywide Façade Improvement Program manager or designee.
SECTION 3: AUDITS; MISUSE OF FUNDS
City reserves the right to designate its own employee representative(s) or its contracted representative(s) with a Certified Public Accounting firm who shall have the right to audit Grantee’s accounting procedures and internal controls of Grantee’s financial systems as they relate to the Grant Funds and to examine any cost, revenue, payment, claim, other records or supporting documentation resulting from any items set forth in this Agreement. Any such audit(s) shall be undertaken by City or its representati ve(s) at mutually agreed upon reasonable times and in conformance with generally accepted auditing standards. Grantee agrees to fully cooperate with any such audit(s).
If the Grantee, or Grantee’s designated contractor should utilize the funds for anything other than as stated in the Application, the City may thereupon recover the entire 6 amount of the Grant Funds from Grantee and/or the subsequent operator of the Property, together with reasonable attorney fees and costs incurred in enforcing this provision. This provision shall not apply where the proposed changes are first reviewed and approved by the City. Approval shall not be unreasonably withheld to the extent the proposed changes are authorized in the Updated Program Guidelines.
SECTION 4: REMEDIES FOR BREACH
In the event the Grantee or any subsequent operator breaches Section 3 of this Agreement, in addition to all legal and equitable remedies available to the City, the City may thereupon deny any request(s) for reimbursement and/or recover the entire amount of the Grant Funds from the Grantee and/or the subsequent operator of the Property, together with reasonable attorney fees and costs incurred in enforcing this provision.
SECTION 5: INSURANCE AND INDEMNIFICATION.
5.1 INDEMNIFICATION
To the maximum extent permitted by law, the Grantee hereby agrees, at its sole cost and expense, to defend protect, indemnify, and hold harmless the City, its elected and appointed officials, officers, employees, volunteers, attorneys, and agents (collecti vely "Indemnitees") from and against any and all claims, including, without limitation, claims for bodily injury, death or damage to property, demands, charges, obligations, damages, causes of action, proceedings, suits, losses, stop payment notices, judgments, fines, liens, penalties, liabilities, costs and expenses of every kind and nature whatsoever, in any manner arising out of, incident to, related to, in connection with or arising from any act, failure to act, error or omission of the Grantee’s performance or work hereunder (including any of its officers, agents, employees, contractors) or its failure to comply with any of its obligations contained in the Agreement, or its failure to comply with any current or prospective law, or any loss of business i n connection with construction over the course of completion of the Project and damage to City property, or any construction defect that may arise from City -provided design services or the Project’s compliance with City - recommended designs, or any other liability that may arise from work performed on the Project pursuant to the contract between Grantee and its contractor, except for such loss or damage which was caused by the sole negligence or willful misconduct of the City. The Grantee’s obligation to indemnify shall not be restricted to insurance proceeds, if any, received by the Grantee or Indemnitees. This indemnification obligation shall survive this Agreement and shall not be limited by any term of any insurance policy required under this Agreement.
Indemnitees do not and shall not waive any rights that they may possess against the Grantee because the acceptance by City, or the deposit with City, of any insurance policy or certificate required pursuant to this Agreement.
The Grantee, on behalf of itself and all parties claiming under or through it, hereby waives all rights of subrogation and contribution against the Indemnitees.
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5.2 INSURANCE.
A. Without limiting Grantee’s obligations to City under Section 5.1, and prior to commencement of any construction toward the Project , Grantee shall obtain, provide and maintain at its own expense during the term of this Agreement (at times extending beyond the term), policies of insurance of the types and amounts described below and in a form satisfactory to City.
(i) Commercial General Liability Insurance (Occurrence Form CG0001 or equivalent) . Grantee shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form ISO CGL CG 00 01 or equivalent, in an amount not less than $ 2,000,000 per occurrence, $ 4,000,000 general aggregate, for bodily injury, personal injury, and property damage. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted.
(ii) Worker’s Compensation Insurance. Grantee shall maintain a policy of worker’s compensation insurance in such amount as will fully comply with the laws of the State of California and which shall indemnify, insure and provide legal defense for Grantee against any loss, claim or damage arising from any injuries or occupational diseases occurring to any worker employed by or any persons retained by the Grantee in the course of carrying out the work contemplated in this Agreement.
(iii) Automotive Insurance. Grantee shall maintain ISO Form Number CA 00 01 covering any auto (Code 1), or if the Grantee has no owned autos, covering hired (Code 8), and non -owned autos (Code 9), with limit no less than $1,000,000 combined single limit for each accident for bodily injury and property damage.
(iv) Flood Insurance. If the Property is located in a FEMA designated high-risk area (zones A or V) , Grantee shall maintain flood insurance in an amount not less than the total cost of the improvements specified in the Scope of Work.
(v) Builder’s Risk Insurance . Grantee shall maintain Builder’s Risk (Course of Construction) insurance utilizing an “All Risk” (Special Perils) coverage form, with limits equal to the completed value of the Project and no coinsurance penalty provisions or provisional limit provisions. The policy must include: (1) coverage for any ensuing loss from faulty workmanship, nonconforming work, omission or deficiency in design or specifications; (2) coverage against machinery accidents and operational testing; (3) co verage for removal of debris, and insuring the buildings, structures, machinery, equipment, materials, facilities, fixtures and all other properties constituting a part of the project; (4) ordinance or law coverage for contingent rebuilding, demolition, and increased costs of construction; (5) transit coverage (unless insured by the supplier or receiving contractor), with sub -limits sufficient to insure the full replacement value of any key equipment item; (6) ocean marine cargo coverage insuring any projec t materials or supplies, if applicable; (7) coverage with sub -limits sufficient to insure the full 8 replacement value of any property or equipment stored either on or off the Project site or any staging area. The City shall be included as a “loss payee” in the amount of the Grant Funds.
If the Grant Funds is less than $50,000, then at the option of City, an Installation Floater may be acceptable in lieu of Builder’s Risk Insurance . For Contract Sum exceeding $50,000, an Installation Floater may still be considered in place of Builder’s Risk based on the project scope, subject to approval by the City’s Risk Manager. For such projects, a Property Installation Floater shall be obtained that provides for the improvement, remodel, modification, alteration, conversion or adjustment to existing buildings, structures, processes, machinery and equipment. The Property Installation Floater shall provide property damage coverage for any building, structure, machinery or equipment damaged, impaired, broken, or destroyed during the performance of the work, including during transit, installation, and testing at the Project site.
B. General Insurance Requirements . All of the above policies of insurance shall be primary insurance and shall name the City, its elected and appointed officers, employees and agents as additional insureds and any insurance maintained by City or its officers, employees or agents may apply in excess of, and not contribute with the insured’s insurance. The insurer is deemed hereof to waive all rights of subrogation and contribution it may have against the City, its officers, employees and agents and their re spective insurers. The insurance policy must specify that where the primary insured does not satisfy the self-insured retention, any additional insured may satisfy the self -insured retention.
All of said policies of insurance shall provide that said insu rance may not be amended, cancelled or non-renewed by the insurer or any Party hereto without providing thirty (30) days prior written notice by certified mail return receipt requested to the City. In the event any of said policies of insurance are cancelled, the Grantee shall, prior to the cancellation date, submit new evidence of insurance in conformance with this section to the Contract Officer. No work or services under this Agreement shall commence until the Grantee has provided the City with Certificates of Insurance, additional insured endorsement forms or appropriate insurance binders evidencing the above insurance coverages and said Certificates of Insurance or binders are approved by the City. City reserves the rig ht to inspect complete, certified copies of and endorsements to all required insurance policies at any time. Any failure to comply with the reporting or other provisions of the policies including breaches or warranties shall not affect coverage provided to City.
The insurance required by this Agreement shall be satisfactory only if issued by companies qualified to do business in California, rated “A -” or better in the most recent edition of Best Rating Guide, The Key Rating Guide or in the Federal Register, and only if they are of a financial category Class VII or better, unless such requirements are waived by the City’s Risk Manager or other designee of the City due to unique circumstances.
SECTION 6: ADDITIONAL WORK
Nothing contained in this Agreement is intended to limit, restrict, or prohibit the Grantee from undertaking additional work in or about the subject premises, which is
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unrelated to the approved improvements provided for in this Agreement ; provided, however, that City approves such work in advance.
SECTION 7: TERM AND TERMINATION
7.1 TERM
This Agreement shall be binding upon the City and upon the Grantee and Grantee’s successor(s) to the Property for a period of (2) two years after the Effective Date. It shall be the responsibility of the Grantee to inform subsequent owner(s)/lessee(s) of the Property of the provisions of this Agreement.
7.2 TERMINATION
The City reserves the right to terminate this Agreement at any time, with or without cause, upon thirty (30) days’ written notice to Grantee, except that where termination is due to the fault of Grantee, the period of notice may be such shorter time as may be determined by the Contract Officer. In addition, Grantee may terminate this Agreement if and only if all of the following criteria are met: (i) City is in default under the terms of this Agreement; (ii) Grantee has given City thirty (30) days’ written notice (or longer, if circumstances warrant) of the default and the reasons for the default; and (iii) City has failed to cure the default within said cure period. Without limiting the generality of the foregoing, City may terminate this Agreement for cause where Grantee fails to cooperate or respond to communications from the City. In any such event , City may issue a 14 -day notice requesting confirmation of continued participation in the Program and if Grantee does not respond within that period, the City may issue a termination letter which will serve as notice of termination of this Agreement . Immediately following termination of this Agreement for any reason, City and Owner must notify Owner’s contractor in writing of such termination.
SECTION 8: DESIGNS
Notwithstanding any provision of this Agreement, Grantee is responsible for obtaining applicable design review approvals, obtaining all required permits, and complying with all applicable laws and Updated Program Guidelines. As part of the Program, City has offered Grantee complimentary design guidance services for the Project (“Design Guidance Services”) and, unless Grantee indicates by checking the box below, Grantee agrees to utilize City’s Design Guidance Services for the Project. Grantee utilizing the Program’s complimentary design guidance are also subject to requirements of this section.
By checking the box above, Grantee acknowledges that City has offered Grantee complimentary Design Guidance Services but Grantee has declined such services and 10 instead, is electing to obtain its own licensed architect to prepare designs for the Project.
In so doing, Grantee understands and agrees that all designs prepared by Grantee’s architect must comply with City’s recommended designs for the Project.
SECTION 9: MISCELLANEOUS PROVISIONS
9.1 RECITALS.
All recitals in this Agreement are hereby incorporated into this Agreement as if set forth fully herein.
9.2 COVENANT AGAINST DISCRIMINATION.
Grantee covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that in the performance of this Agreement, there shall be no discrimination against or segregation of any person or group of persons o n account of race, religious creed, color, gender, national origin, ancestry, physical disability, mental disability, medical condition, pregnancy, marital status, age, sexual orientation, or any other basis pertaining to a protected characteristic under a pplicable federal, state, or local law.
9.3 CONFLICTS OF INTEREST.
Grantee, its agents and employees shall comply with applicable federal, state, and local laws and regulations governing conflict of interest. Grantee covenants that it presently has no interest and shall not acquire any interest, direct or indirect, that may be affected by its obligations to perform under this Agreement, or that would conflict in any manner with its obligations hereunder. Grantee further covenants that, in performing this Agreement, no person having any such interest shall be employed by i t. Furthermore, Grantee shall avoid the appearance of having any interest that would conflict in any manner with the performance of its services pursuant to this agreement. Grantee agrees not to accept any employment or representation during the term of this Agreement that is or may likely make Grantee “financially interested” (as provided in California Government Code Sections 1090 and 87100) in any decision made by City on any manner in connection with which Grantee has been retained pursuant to this Agreement.
9.4 WARRANTY AND REPRESENTATION OF NON-COLLUSION.
City hereby warrants and represents that no official, officer, agent or employee of the City has any financial interest, direct or indirect, in this Agreement, nor shall any official, officer, agent or employee of the City participate in any decision relating to this Agreement which may affect his/her financial interest or the financial interest of any corporation, partnership, or association in which (s)he is directly interested, or in violation of any state or municipal statute or regulation. The determi nation of “financial interest” shall be consistent with State law and shall not include interest found to be “remote” or “non interest” pursuant to California Government Code Sections 1091 and 1091.5.
01007.0001/874383.1
Grantee hereby warrants and represents that (s)he/it has not engaged in any act(s), omission(s), or other conduct or collusion that would result in the payment of any money, consideration, or other thing of value to any third party including, but not limit ed to, any City official, officer, agent or employee, as a result or consequence of obtaining or being awarded any agreement. Grantee is aware of and understands that any such act(s), omission(s), or other conduct resulting in the payment of money, consid eration, or other thing of value will render this Agreement void and of no force and effect.
Grantee Representative Initials _____
9.5 PROHIBITED AND PERMITTED USE OF FUNDS.
Grantee acknowledges and understands that it is prohibited from using the Grant Funds for any purpose that is not permitted under the Updated Program Guidelines.
Grantee agrees to use Grant Funds only for the purpose stated in Grantee’s application and for the purpose of completion of the Project.
9.6 FALSE STATEMENTS.
Grantee understands that making false statements or claims in connection with this Agreement is a violation of federal law and may result in criminal, civil, or administrative sanctions, including fines, imprisonment, civil damages and penalties, debarment from participating in federal awards or contracts, and/or any other remedy available by law.
9.7 NOTICES.
All notices, demands, invoices, and communications shall be in writing and delivered to the following addresses or such other addresses as the Parties may designate by written notice:
To City: City of Carson
701 East Carson Street
Carson, CA 90745
Attn: James Nguyen, Special Projects Manager
Email: [email protected]
To Grantee: DML Properties
2717 - 2721 E Carson Street
Carson, CA 90810
Email: [email protected]
Phone: (714) 853 - 8767
9.8 SEVERABILITY.
Any provision of this Agreement that is found invalid or unenforceable shall be 12 deemed severed and all remaining provisions of this Agreement shall remain enforceable to the fullest extent permitted by law.
9.9 CORPORATE AUTHORITY.
The persons executing this Agreement on behalf of the Parties warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said Party, (iii) by so executing this Agreement, such Party is formally bound to the provisions of this Agreement, and (iv) the entering into this Agreement does not violate any provision of any other Agreement to which said Party is bound. This Agreement shall be binding upon the heirs, executors, administ rators, successors and assigns of the Parties.
9.10 GRANTEE REPRESENTATIVE AND CITY’S CONTRACT OFFICER.
The following principal(s) and/or representative(s) of Grantee is/are hereby designated as the person(s) authorized to act on Grantee’s behalf with respect to this Agreement and to make all decisions in connection herewith:
DML Proeprties, Owner
James Nguyen, Special Projects Manager, or such person as may be designated by the City Manager, is hereby designated as being the representative the City authorized to act in its behalf with respect to the work and Project specified herein and to make all decisions in connection therewith (“Contract Officer”).
9.11 WAIVER.
The waiver by the City of any breach of any term or prov ision of this Agreement shall not be construed as a waiver of any subsequent breach.
9.12 GOVERNING LAW AND VENUE.
This Agreement shall be construed in accordance with the laws of the State of California without regard to principles of conflicts of law. Venue for any litigation or other action arising hereunder shall reside exclusively in the Superior Court of the Coun ty of Los Angeles, Southwest Judicial District.
9.13 INTERPRETATION.
Grantee acknowledges that it has had ample opportunity seek legal advice with respect to the negotiation of this Agreement. This Agreement shall be interpreted as if drafted by both parties.
9.14 TIME OF ESSENCE.
Time is of the essence of this Agreement.
01007.0001/874383.1
9.15 THIRD PARTIES.
Nothing herein shall be interpreted as creating any rights or benefits in any third parties. For purposes hereof, transferees or assignees as permitted under this Agreement shall not be considered "third parties."
9.16 NON-LIABILITY OF OFFICIALS AND EMPLOYEES OF THE CITY.
No official or employee of the City shall be personally liable for any default or liability under this Agreement.
9.17 COUNTERPARTS AND SIGNATURES.
This Agreement may be executed in one or more counterparts, each of which will be deemed to be an original copy of this Agreement, and all of which, when taken together, will be deemed to constitute one and the same agreement. The facsimile, email or other electronically delivered signatures of the Parties shall be deemed to constitute original signatures.
[THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]
WITNESS WHEREOF, the Parties have executed this Agreement on the date first 14 above written.
CITY:
CITY OF CARSON, a California
charter city
_____________________________
David C. Roberts, Jr., City Manager
ATTEST:
___________________________________
Dr. Khaleah R. Bradshaw, City Clerk
APPROVED AS TO FORM:
Aleshire & Wynder, LLP
___________________________________
Sunny K. Soltani, City Attorney
GRANTEE:
____________________________
_____________________________
Name:
_____________________________
Title:
_____________________________
Name:
_____________________________
Title:
*Two corporate officer signatures required when Grantee is a corporation, with one signature required from each of the following groups: 1) Chairman of the Board , President or any Vice President; and 2) Secretary, any Assistant Secretary, Chie f Financial Officer or any Assistant Treasurer. APPROPRIATE ATTESTATIONS SHALL BE INCLUDED AS MAY BE REQUIRED
BY THE BYLAWS, ARTICLES OF INCORPORATION, OR OTHER RULES OR REGULATIONS APPLICABLE TO CONTRACTOR’S BUSINESS ENTITY.
01007.0001/874383.1
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
On __________, 2026 before me, ________________, personally appeared ________________, proved to me on the basis of satisfactory evidence to be the person(s) whose names(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same i n 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: _____________________________________
OPTIONAL
Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form
CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT
INDIVIDUAL
CORPORATE OFFICER
_______________________________
TITLE(S)
PARTNER(S) LIMITED
GENERAL
ATTORNEY-IN-FACT
TRUSTEE(S)
GUARDIAN/CONSERVATOR
OTHER____________________________
___________________________________
SIGNER IS REPRESENTING:
(NAME OF PERSON(S) OR ENTITY(IES))
__________________________________________
__________________________________________
___________________________________
TITLE OR TYPE OF DOCUMENT
___________________________________
NUMBER OF PAGES
___________________________________
DATE OF DOCUMENT
___________________________________
SIGNER(S) OTHER THAN NAMED ABOVE
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. 16 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
On __________, 2026 before me, ________________, personally appeared ________________, proved to me on the basis of satisfactory evidence to be the person(s) whose names(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same i n 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: _____________________________________
OPTIONAL
Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form
CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT
INDIVIDUAL
CORPORATE OFFICER
_______________________________
TITLE(S)
PARTNER(S) LIMITED
GENERAL
ATTORNEY-IN-FACT
TRUSTEE(S)
GUARDIAN/CONSERVATOR
OTHER____________________________
___________________________________
SIGNER IS REPRESENTING:
(NAME OF PERSON(S) OR ENTITY(IES))
__________________________________________
__________________________________________
___________________________________
TITLE OR TYPE OF DOCUMENT
___________________________________
NUMBER OF PAGES
___________________________________
DATE OF DOCUMENT
___________________________________
SIGNER(S) OTHER THAN NAMED ABOVE
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.
01007.0001/874383.1
EXHIBIT “A"
SCOPE OF WORK
Commercial Façade Improvement Program
Name: DML Properties Tel. No.: 310-830-7600 #1306
Address: 2717 - 2721 E Carson St. Date: 05/05/2026
All work is to be done per City of Carson building, planning, and public works codes after submission of all applicable contractor’s licenses to the City’s Contract Officer. In order to establish standards of quality, the detailed specifications may refer to a certain product by name and/or from a major manufacturer. This procedure is not to be construed as eliminating from competition of other product of equal or better quality by other manufacturers. The Grantee shall furnish a list of proposed desired su bstitutions prior to signing of the contract. All items listed on work write-up, unless otherwise specified, shall include all finish work, including all trim hardware, patching, and finish painting and/or staining. All overhead and profit should be includ ed in each line item. Use of lead -based paint is prohibited. Removal or work on asbestos and lead containing materials is subject to applicable federal, state, and local regulations.
Any questions regarding this project, the plans, and specifications should be submitted to Miguel Rameriz at [email protected].
WORK DESCRIPTION AND STANDARD SPECIFICATIONS
Attached images are from the Bid Proposal Form
Case# CRP-2513
Dated: October 27, 2025.
File Name: DAN P4 Pages, 29- 34
18 01007.0001/874383.1
20 01007.0001/874383.1
22 01007.0001/874383.1
24 NOTE:
Grantee must obtain and pay for City of Carson building permits, business license, and inspections.
All work shall include the protection of building as well as maintaining the premises clean at all times.
All debris resulting from any work conducted in connection with this contract shall be the property of the Grantee, who is responsible for its timely removal and lawful disposal. Work site shall be maintained in a clean and orderly manner, and upon completion, property shall be left in a “broom clean” condition.
01007.0001/874383.1
EXHIBIT “B”
SAMPLE CONTRACTOR AGREEMENT
26 EXHIBIT “C”
SCHEDULE OF PERFORMANCE
PERMITS: Before commencement of any Project work, Grantee and its contractor shall obtain any and all permits and approvals which may be required by the City or any other governmental agency with jurisdiction. Execution of this Agreement by City shall not be construed as any commitment by City to issue any permits and Grantee and its contractor must obtain all permits pursuant to the City’s standard process and requirements.
COMMENCEMENT OF PROJECT WORK : Grantee agrees that the Project work shall not commence until all permits are issued and City has issued a Notice to Proceed and delivered same to Grantee (“Notice to Proceed”).
In lieu of disbursement of grant monies to Grantee, the Parties agree that City will disburse to Grantee’s contractor an amount not to exceed $131,900 (“Grant Funds”) for satisfactory completion of the Project upon submission by Grantee’s contractor of the documentation required in Section 2 of Grantee’s contract with its contractor (Exhibit B).
CONSTRUCTION SCHEDULE: The Project work shall commence not later than ten (10) days after the City issues the Notice to Proceed to Grantee and its contractor, and shall be completed within ninety (90) days thereafter except as stated otherwise or as mutually agreed in writing by Grantee and City. The Project work shall be deemed complete upon written notification specifying that the Project work has been compl eted issued by the Citywide Façade Improvement Program manager or designee and delivered to Grantee.
The City shall make reasonable efforts to coordinate construction activities with Grantee to minimize disruption to the operation of the business to the maximum extent practicable.
At the City’s sole discretion, the schedule may be modified subject to the approval of the City’s Program Manager or his/her designee.
01007.0001/874383.1
EXHIBIT “D”
APPROVED CONSTRUCTION DOCUMENTS
[TO BE INSERTED SEPARATELY]
28 EXHIBIT “E”
COVENANT FOR COMPLETION AND MAINTENANCE
CITY OF CARSON
NOTICE OF PUBLIC HEARING
DATE AND TIME: Tuesday, May 5, 2026, 5:00 p.m.
LOCATION: Helen Kawagoe City Council Chambers
Carson City Hall, 701 East Carson Street
Carson, CA 90745
PURPOSE: CONSIDERATION OF PROPOSED ECONOMIC DEVELOPMENT BENEFIT AGREEMENTS (FAÇADE IMPROVEMENT PROGRAM
GRANT AGREEMENTS – ROUND 2) PROVIDING GRANT
FUNDING TO THE FOLLOWING COMMERCIAL BUSINESSES IN
CARSON, CALIFORNIA:
1. 114 W Carson St, Carson, California, 90745 (Ding Tea Carson)
2. 1329-1347 E Carson St, Carson, California, 90746 (HCJA Properties, Carson Plaza)
3. 21839-21855 S Avalon Blvd, Carson, California, 90745 (Home Service Unlimited, Inc, 219th)
4. 2601 E Carson St, Carson, California 90810 (Perfume 4 Less)
5. 2605 E Carson St, Carson, California 90810 (Irene’s Hair Cut + 310 Smoke Shop)
6. 2609 E Carson St, Carson, California 90810 (Kathy’s Bakery Bros)
7. 2611 E Carson St, Carson, California 90810 (Nitzy Salon + Medicina Alternativa)
8. 2613 E Carson St, Carson, California 90810 (H Glass & Mirror + MCL Logistic LLC)
9. 2615 E Carson St, Carson, California 90810 (Rob’s Liquor)
10. 2617-2619 E Carson St, Carson, California 90810 (R C Dollar Plus + Taqueria El Cabrito)
11. 2637 E Carson St, Carson, California 90810 (Santa Fe Medical Clinic)
12. 2641 E Carson St, Carson, California 90810 (Wajid Plaza)
13. 2651 E Carson St, Carson, California 90810 (Dominguez Lavanderia)
14. 2659 E Carson St, Carson, California 90810 (A Plus Embroidery & Silkscreen + Noemi’s Income Tax Services)
15. 2713 E Carson St, Carson, California 90810 (Dominguez Pizza)
16. 2717-2721 E Carson St, Carson, California 90810 (Golden Express + Dela Liquor)
NOTICE IS HEREBY GIVEN that, pursuant to Section 206 of the City of Carson Charter and Section 53083(a) (6) (b) of the California Government Code (AB 562), the City of Carson is providing the following comprehensive report and information regarding multiple proposed economic development subsidies. The City of Carson will hold a public hearing meeting at the Carson City Hall, 701 East Carson Street, Carson, CA 90745 .
Agreements
In June 2022, the City of Carson adopted the city-wide Commercial Façade Improvement Program (“Program”) to provide financial incentives to businesses to promote economic activity, including the assistance with commercial revitalization. Commercial corridors have historically lagged the progress made in other areas in the city , and the Program was adopted to encourage improvement and investments that contribute to the overall city-wide commercial corridor revitalization. In 2023, the City also adopted the Economic Development Strategic Plan (EDSP) which includes a “Reinvigorate Retail” initiative that calls for the long-term commitment to funding commercial façade improvement. On May 5, 2026, the City Council is expected to slightly modify the Program in order to include a no-match requirement for the East Carson Corridor between Harbor View Avenue and Santa Fe Avenue. These economic development benefit agreements are necessary to achieve the goals of the EDSP and the overall city-wide commercial corridor revitalization effort. Additionally, the improvements will likely result development efforts to bring high quality commercial in, higher sales tax revenues and create jobs within the City.
The City is able to implement the provisions of AB 562, a statewide economic development tool passed by Governor Brown in late 2013 for the purpose of allowing local jurisdictions to induce economic development as well as Chapter 3 of Article X of the Carson Municipal Code which specifically authorizes the City to enter into agreements to loan, grant, fund or finance projects .
Pursuant to Chapter 206 of the City’s Charter and section 53083(a) of the California Government Code (AB562) the following information will be posted on the City’s website. 1) The name and address of all corporations, or any other business entities, except for sole proprietorships, that are the beneficiary of the economic development subsidy, if applicable.
The City of Carson is proposing to enter into seven agreements to provide financial assistance in the form of economic development subsid ies to the following entities, as further described in each entities’ Economic Development Benefit Agreements (Façade Improvement Program Grant Agreements):
# Business Entity Name Business Address
1 Ding Tea Carson 114 W Carson St, Carson, California, 90745 2 HCJA Properties (Carson
Plaza)
1329-1347 E Carson St, Carson, California,
90746
3 Home Service Unlimited, Inc
(219th)
21839-21855 S Avalon Blvd, Carson,
California, 90745
4 Perfume 4 Less 2601 E Carson St, Carson, California, 90810 5 Irene’s Hair Cut + 310 Smoke
Shop
2605 E Carson St, Carson, California, 90810
6 Kathy’s Bakery Bros 2609 E Carson St, Carson, California, 90810 7 Nitzy Salon + Medicina
Alternativa
2611 E Carson St, Carson, California, 90810
8 H Glass & Mirror + MCL
Logistic LLC
2613 E Carson St, Carson, California, 90810
9 Rob’s Liquor 2615 E Carson St, Carson, California, 90810 8 R C Dollar Plus + Taqueria El
Cabrito
2617-2619 E Carson St, Carson, California,
90810
10 Santa Fe Medical Clinic 2637 E Carson St, Carson, California, 90810 11 Wajid Plaza 2641 E Carson St, Carson, California, 90810 12 Dominguez Lavanderia 2651 E Carson St, Carson, California, 90810 13 A Plus Embroidery &
Silkscreen + Noemi’s Income
Tax Services
2659 E Carson St, Carson, California, 90810
15 Dominguez Pizza 2713 E Carson St, Carson, California, 90810 16 Golden Express + Dela Liquor 2717-2721 E Carson St, Carson, California, 90810
2) The start and end dates and schedule, if applicable, for the economic development subsidy.
If approved, the start date of the economic subsidy will begin on the day the City issues a Notice to Proceed and will continue through the term of the agreement with each entity. # Business Entity Name Business Address
1 Ding Tea Carson Start date: Upon issuance of a Notice to Proceed (to be determined after May 5, 2026)
End date: No later than two years after
Agreement Effective Date.
2 HCJA Properties (Carson
Plaza)
Start date: Upon issuance of a Notice to
Proceed (to be determined after May 5, 2026)
End date: No later than two years after
Agreement Effective Date.
3 Home Service Unlimited, Inc
(219th)
Start date: Upon issuance of a Notice to
Proceed (to be determined after May 5, 2026)
End date: No later than two years after
Agreement Effective Date.
4 Perfume 4 Less Start date: Upon issuance of a Notice to Proceed (to be determined after May 5, 2026)
End date: No later than two years after
Agreement Effective Date.
5 Irene’s Hair Cut + 310 Smoke
Shop
Start date: Upon issuance of a Notice to
Proceed (to be determined after May 5, 2026)
End date: No later than two years after
Agreement Effective Date.
6 Kathy’s Bakery Bros Start date: Upon issuance of a Notice to Proceed (to be determined after May 5, 2026)
End date: No later than two years after
Agreement Effective Date.
7 Nitzy Salon + Medicina
Alternativa
Start date: Upon issuance of a Notice to
Proceed (to be determined after May 5, 2026)
End date: No later than two years after
Agreement Effective Date.
8 H Glass & Mirror + MCL
Logistic LLC
Start date: Upon issuance of a Notice to
Proceed (to be determined after May 5, 2026)
End date: No later than two years after
Agreement Effective Date.
9 Rob’s Liquor Start date: Upon issuance of a Notice to Proceed (to be determined after May 5, 2026)
End date: No later than two years after
Agreement Effective Date.
10 R C Dollar Plus + Taqueria El
Cabrito
Start date: Upon issuance of a Notice to
Proceed (to be determined after May 5, 2026)
End date: No later than two years after
Agreement Effective Date.
11 Santa Fe Medical Clinic Start date: Upon issuance of a Notice to Proceed (to be determined after May 5, 2026)
End date: No later than two years after
Agreement Effective Date.
12 Wajid Plaza Start date: Upon issuance of a Notice to Proceed (to be determined after May 5, 2026)
End date: No later than two years after
Agreement Effective Date.
13 Dominguez Lavanderia Start date: Upon issuance of a Notice to Proceed (to be determined after May 5, 2026)
End date: No later than two years after
Agreement Effective Date.
14 A Plus Embroidery &
Silkscreen + Noemi’s Income
Tax Services
Start date: Upon issuance of a Notice to
Proceed (to be determined after May 5, 2026)
End date: No later than two years after
Agreement Effective Date.
15 Dominguez Pizza Start date: Upon issuance of a Notice to Proceed (to be determined after May 5, 2026)
End date: No later than two years after
Agreement Effective Date.
16 Golden Express + Dela Liquor Start date: Upon issuance of a Notice to Proceed (to be determined after May 5, 2026)
End date: No later than two years after
Agreement Effective Date.
3) A description of the economic development subsidy, including the estimated total amount of expenditure of public funds, or of revenue lost to, the local agency, as a result of the economic development subsidy.
As consistent with Chapter 3 of Article X of the Carson Municipal Code , the City would provide the following economic development subsidies to the following entities:
# Business Entity Name Business Address
1 Ding Tea Carson The subsidy is a reimbursement of up to $7,618 for business owner’s expenditures of
eligible façade improvements of at least
$12,735.
2 HCJA Properties (Carson
Plaza)
The subsidy is a reimbursement of up to
$250,000 for business owner’s expenditures of
eligible façade improvements of at least
$497,500.
3 Home Service Unlimited, Inc
(219th)
The subsidy is a reimbursement of up to
$250,000 for business owner’s expenditures of
eligible façade improvements of at least
$497,500.
4 Perfume 4 Less The subsidy is an expenditure of up to $84,450 for eligible façade improvements.
5 Irene’s Hair Cut + 310 Smoke
Shop
The subsidy is an expenditure of up to $53,150
for eligible façade improvements.
6 Kathy’s Bakery Bros The subsidy is an expenditure of up to $82,950 for eligible façade improvements.
7 Nitzy Salon + Medicina
Alternativa
The subsidy is an expenditure of up to $83,200
for eligible façade improvements.
8 H Glass & Mirror + MCL
Logistic LLC
The subsidy is an expenditure of up to $68,000
for eligible façade improvements.
9 Rob’s Liquor The subsidy is an expenditure of up to $86,500 for eligible façade improvements.
10 R C Dollar Plus + Taqueria El
Cabrito
The subsidy is an expenditure of up to $85,800
for eligible façade improvements.
11 Santa Fe Medical Clinic The subsidy is an expenditure of up to $81,200 for eligible façade improvements.
12 Wajid Plaza The subsidy is an expenditure of up to
$101,400 for eligible façade improvements.
13 Dominguez Lavanderia The subsidy is an expenditure of up to $93,600 for eligible façade improvements.
14 A Plus Embroidery &
Silkscreen + Noemi’s Income
Tax Services
The subsidy is an expenditure of up to
$142,600 for eligible façade improvements.
15 Dominguez Pizza The subsidy is an expenditure of up to $57,800 for eligible façade improvements.
16 Golden Express + Dela Liquor The subsidy is an expenditure of up to $131,900 for eligible façade improvements.
For some economic development subsidies listed, the City may provide the business owner(s) with a dollar-for-dollar match for any amount over $2,500 and for others there is no matching requirements. Additionally, if opted by the business owners, complementary architectural services may also be provided. Cumulatively, the total subsidy amounts to $1,662,168 without the inclusion of architectural services. 4) A statement of the public purposes for the economic development subsidy.
The economic development subsidy achieves the following goals for the City’s commercial corridors, including:
• Create a Stronger Local Economy. Strengthen the economic base of the corridors and the community at large by installing needed site improvements and stimulating new commercial expansion, employment, and economic growth. • Improve Public Infrastructure and Services. Provide necessary public improvements such as flood control, street improvements, and traffic circulation. • Use Land Wisely. Assemble land into parcels suitable for integrated development with improved pedestrian and vehicular circulation in these areas. Secure the availability of property to attract investors and developers and replan, redesign, and improve areas which are stagnant or improperly utilized. • Eliminate Blight. Eliminate deteriorating buildings, incompatible and uneconomic land uses, and other environmental, economic, and social deficiencies; improve the overall appearance of buildings, streets, parking areas, and other facilities, and assure that all buildings are safe for people and businesses to occupy. • Protect and Enhance Community Character . Preserve artistically, architecturally, and historically worthwhile structures and sites and upgrade urban design standards to provide unity and to encourage community identity. 5) Projected tax revenue to the local agency as a result of the economic development subsidy.
Although difficult to accurately quantify, the economic development subsid ies are anticipated to “pay for itself” over time through increase in taxes ( e.g., sales tax etc.), decrease in vacancies, increase in private investment/funding sources and more. For all subsidies, staff estimates that the direct, indirect, and/or induced tax revenue generated will be recoupe d within a 15 -year period or less. Additionally, economic development subsidies also offer many other public benefits as stated above that is not included in a tax revenue calculation. The approximate breakdown of tax revenues generated is as follows:
# Business Entity Name Estimated Tax Revenue
1 Ding Tea Carson $25,541
2 HCJA Properties (Carson Plaza) $374,325
3 Home Service Unlimited, Inc (219th) $284,556
4 Perfume 4 Less $38,074
5 Irene’s Hair Cut + 310 Smoke Shop $5,670
6 Kathy’s Bakery Bros $28,350
7 Nitzy Salon + Medicina Alternativa $44,850
8 H Glass & Mirror + MCL Logistic LLC $14,104
9 Rob’s Liquor $99,250
8 R C Dollar Plus + Taqueria El Cabrito $51,975
10 Santa Fe Medical Clinic $38,074
11 Wajid Plaza $58,780
12 Dominguez Lavanderia $18,900
13 A Plus Embroidery & Silkscreen + Noemi’s Income
Tax Services
$35,438
15 Dominguez Pizza $53,298
16 Golden Express + Dela Liquor $136,080
6) Estimated number of jobs created by the economic development subsidy, broken down by full-time, part-time and temporary positions.
The City roughly estimates that the economic development subsidies will cumulatively generate 17 full time, 23 part time, and 23 temporary jobs. The approximate breakdown of jobs created is as follows:
# Business Entity Name Full Time Part Time Temp
1 Ding Tea Carson 0 1 0
2 HCJA Properties (Carson Plaza) 0 6 6
3 Home Service Unlimited, Inc (219th) 0 4 4
4 Perfume 4 Less 0 1 1
5 Irene’s Hair Cut + 310 Smoke Shop 2 1 1
6 Kathy’s Bakery Bros 1 1 1
7 Nitzy Salon + Medicina Alternativa 2 1 1
8 H Glass & Mirror + MCL Logistic LLC 2 1 1
9 Rob’s Liquor 1 1 0
8 R C Dollar Plus + Taqueria El Cabrito 1 1 1
10 Santa Fe Medical Clinic 2 1 1
11 Wajid Plaza 2 1 1
12 Dominguez Lavanderia 0 0 1
13 A Plus Embroidery & Silkscreen +
Noemi’s Income Tax Services
1 1 2
15 Dominguez Pizza 1 1 1
16 Golden Express + Dela Liquor 2 1 1
Total 17 23 23
You may be present and provide live comments on this matter during the designated public hearing comment period. Speakers are generally limited to 3 minutes. Alternatively, you may submit written public comments’ regarding the item to:
[email protected] until 5:00 P.M. on May 5, 2026. For those wishing to observe, the meeting will be streamed live over the internet via www.carsonca.gov and broadcast on Cable Channel 35 (Spectrum) and Channel 99 (AT&T).
This Notice is provided pursuant to Government Code, section 53083(a) and (b). If you challenge this action(s) in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in writte n correspondence delivered to the City Council at or prior to the public hearing.
In accordance with the Americans with Disabilities Act of 1990, if you require a disability related modification or accommodation to attend or participate in this meeting, including auxiliary aids or services, please call the City Clerk’s office at 310 -952-1720 at least 48 hours prior to the meeting. (Government Code Section 54954.2)
DATED: This ___ day of May, 2026,
_____________________________
Dr. Khaleah K. Bradshaw, City Clerk
City of Carson, California
CITY OF CARSON 701 East Carson Street
Report to Honorable Mayor and City Council
Tuesday, May 5, 2026, 5:00 PM
DISCUSSION 34. To: Honorable Mayor and City Council From: William Jefferson, Director of Finance FIN Budget Subject: FISCAL YEAR 2026-2027 BUDGET WORKSHOP NO. 1 (CITY COUNCIL) I. SUMMARY
This marks the commencement of the first of three budget workshops scheduled ahead of a public hearing on June 16, 2026, aimed at deliberating the adoption of the proposed Fiscal Year 2026-2027 budget. At this workshop, there will be an overview of the General Fund Reserve status and the anticipated revenues for Fiscal Year 2026-2027, address the proposed General Fund expenditures, salaries and benefits, vacancy rates, and personnel requests, and outline strategies to achieve and sustain a structurally balanced budget, as mandated by law. According to the City's Charter, the City Council must endorse an annual budget via resolution before June 30 each year.
The City's objective is to achieve a structurally balanced budget for the sixth (6) consecutive year, wherein recurring expenses remain within recurring revenues.
The development of the City’s Operational Budget is guided by the following principles:
1. Quality of life improvements (infrastructure, maintenance, beautification)
2. Economic development
3. Governance policies and procedures pertaining to districts
4. Housing
5. Increase public safety
6. Make progress on development that provides community benefits in the long term
7. Maintain quality City programs and services
8. Advocacy for funds from county, state and federal government
9. Increased outreach and information to the community
Annually, the City adopts a Capital Improvement Program that outlines fund allocations for the upcoming fiscal year. Public Works will present the proposed FY 2026-2027 CIP plan for Council consideration.
II. RECOMMENDATION
PROVIDE direction to staff on the creation of the draft Fiscal Year 2026-2027 Budget.
III. ALTERNATIVES
TAKE another action deemed appropriate by City Council.
IV. BACKGROUND
Objective:
The objective of this workshop is to provide the City Council with updated insights into the General Fund Reserve, anticipated revenues and expenditures for the Fiscal Year 2026-2027 budget. Additionally, it aims to guide potential adjustments to the City’s budget structure for the same fiscal year. This will help ensure fiscal responsibility and prepare for any challenges in the upcoming budget cycle.
Overview of Financial Budget:
A. General Fund Balance Update
The General Fund Balance is a critical measure of the City’s financial health. It serves as a safeguard for navigating future uncertainties, particularly during periods of economic instability. The City continues to maintain a strong reserve position, which is expected to carry forward into Fiscal Year 2026-2027.
The close of Fiscal Year 2024-2025 the general fund balance stood at $252.5 million. Of this total, $91 million was allocated to the Unrestricted Fund (Surplus), and $161 million was designated as the Restricted Fund Balance.
The $161 million in Restricted Funds includes the following:
• $70 million from the Oil Tax Lump Sum payment, which is currently under litigation; • $50 million allocated for Fiscal Year 2024-2025 Capital Improvement Plan (C.I.P.) project;. • $31 million reserved in line with the City’s 20% Reserve Policy for economic uncertainties; and • $10 million set aside for Self-Insurance.
(See Exhibit 1 for a detailed breakdown.)
As of the midpoint of Fiscal Year 2025-2026, $5 million of the $91 million surplus has been allocated to the Operating and C.I.P. budgets, leaving a remaining balance of $86 million in surplus for the remainder of the fiscal year. (See Exhibit 2 for a detailed list of obligations from the General Fund Reserve Surplus, totaling $5 million.) B. General Fund Revenue and Expenditure Update
The proposed budget for FY 2026-2027 is designed to achieve a structurally balanced status, where ongoing revenues align with proposed operating expenditures. The proposed budget for FY 2026-2027 is structurally balanced with revenues projected at approximately $156.9 million and expenditures projected at approximately $156.4 million, resulting in an estimated surplus of approximately $470,051.
According to the City Council’s reserve policy, 20% of annual budget expenditures must be set aside for economic uncertainty, with additional funding allocated for self-insurance claims. Detailed information is available in Exhibit (1).
Revenue Sources Overview:
A. Sales & Use Tax
Sales and use taxes remain a vital revenue source for the City’s General Fund. For FY 2026-2027, sales tax revenue is projected to increase by approximately 3.1%, totaling approximately $40.3 million. This represents a modest uptick compared to the previous fiscal year. The revenue projections are detailed in Exhibit (3).
B. Property Tax
The City of Carson is expected to experience a continued increase in property tax revenue, with a projected increase of approximately 2.8%, totaling approximately $26.3 million. The rise in net taxable property values, including those from industrial sales and valuation adjustments, is expected to support this increase. However, there is a need to remain vigilant regarding the impact of rising interest rates on future property tax collections.
Refer to Exhibit (3) for a detailed breakdown.
C. Franchise Fees
Franchise tax revenues are projected to decrease by approximately 20.6%, totaling approximately $16.8 million.
This decline reflects changes in franchise-related activity compared to prior year performance. Exhibit (3) outlines the forecast and actuals for this revenue stream.
D. Transaction User Tax (Measure K)
The approval of Measure K remains a key factor in boosting the City’s revenue base. For FY 2026-2027, projected revenue for Measure K is expected to decrease by approximately 4.9%, totaling approximately $18.9 million.
However, economic factors such as inflationary pressures and geopolitical tensions may impact the long term trajectory of this revenue stream. Detailed projections can be found in Exhibit (3).
E. Utility Users Tax (UUT) (Measure R)
The Utility Users Tax continues to provide significant funding for the City’s services. Projected revenue for FY 2026- 2027 is expected to increase by approximately 4.3%, totaling approximately $12.0 million. UUT remains a steady revenue source, contributing to a significant portion of the City’s General Fund. Exhibit (3) provides the projections for this source.
F. Licenses and Permits
Licenses and permit revenue is projected to decrease slightly by approximately 3.1%, totaling approximately $9.45 million. This reflects fluctuations in permitting activity and development trends across the City. Exhibit (3) outlines the breakdown of this revenue source.
G. Oil Industry Business Tax (Measure C)
Revenue from the oil industry business tax is expected to increase by approximately 16.9%, totaling approximately $10.0 million. This increase reflects improved projections following recent audits and actions taken to adjust revenue forecasts. Exhibit (3) provides additional details on this revenue stream.
H. Use of Money and Property
Revenue from Use of Money and Property is projected to decrease slightly by approximately 0.9%, totaling approximately $7.0 million. This category includes interest earnings and other returns on City held funds and reflects stabilization following prior year fluctuations. Exhibit (3) provides additional details on this revenue stream.
I. Fines and Fees
Revenue from fines and fees is expected to increase significantly by approximately 47.7%, totaling approximately $8.9 million. This increase reflects higher collections and enforcement activity compared to prior year trends. Staff will continue to monitor this revenue category and adjust projections as needed. Exhibit (3) provides details on this revenue.
J. Transient Occupancy Tax (TOT)
The Transient Occupancy Tax is expected to remain stable at approximately $2.5 million. This tax remains an important revenue stream for the City, supported by ongoing short-term lodging activity. Detailed projections are available in Exhibit (3).
K. Charges for Services
Charges for Services revenue is projected to increase by approximately 30.8%, totaling approximately $1.9 million.
This increase reflects higher activity levels across City services and program-related revenues. Detailed projections are available in Exhibit (3).
L. Intergovernmental Revenues
Intergovernmental revenues are projected to remain flat at approximately $150,000. This category includes funding received from federal, state, and other governmental agencies and is expected to remain consistent with prior year levels. Detailed projections are available in Exhibit (3).
M. Other Revenue
Other Revenue, which includes sources such as third-party recoveries, community benefits, etc. is projected to increase by approximately 6.7%, totaling approximately $2.42 million. The increase is primarily driven by higher third-party recoveries and community benefit contributions. Exhibit (3) provides further details on these projections.
Expenditure Overview:
A. General Expenditure Analysis
The proposed budget for FY 2026-2027 reflects an overall expenditure decrease of approximately 0.1% compared to the revised FY 2025-2026 budget. The budget reflects continued investment in public safety, staffing, andessential City services, while identifying efficiencies in certain operational areas.
B. Department-Specific Expenditures
City Council
FY 25/26 Revised Budget: $954,898
FY 26/27 Proposed Budget: $960,749
Percent Change: +0.6%
The City Council's budget reflects a modest increase, which is attributed to ongoing legislative activities and outreach programs. This supports continued civic engagement and public services while maintaining a stable funding level. Exhibit (4) provides further details.
City Attorney’s Office
FY 25/26 Revised Budget: $3,900,000
FY 26/27 Proposed Budget: $2,900,000
Percent Change: -25.6%
A reduction is proposed for the City Attorney's budget. This decrease reflects lower anticipated legal costs and efficiencies in legal service expenditures compared to the prior fiscal year. Exhibit (4) provides further details.
City Clerk’s Office
FY 25/26 Revised Budget: $1,912,550
FY 26/27 Proposed Budget: $2,557,729
Percent Change: +33.7%
The City Clerk’s budget reflects a significant increase, primarily due to anticipated ballot measure and election- related expenses in the upcoming fiscal year. These costs are cyclical and driven by election activity rather than ongoing operational changes. Exhibit (4) provides further details.
City Treasurer’s Office
FY 25/26 Revised Budget: $1,040,083
FY 26/27 Proposed Budget: $988,809
Percent Change: -4.9%
The City Treasurer’s budget reflects a slight decrease, primarily due to reduced costs associated with supplies and bank fees. This reduction reflects efficiencies in operational expenditures while maintaining core financial oversight functions. Exhibit (4) provides further details.
City Manager’s Office
FY 25/26 Revised Budget: $8,249,921
FY 26/27 Proposed Budget: $8,508,050
Percent Change: +3.1%
The City Manager’s budget reflects a modest increase to support ongoing administrative operations, including staffing, initiatives, and operational needs associated with city services and organizational priorities. Exhibit (4) provides further details.
Information Technology & Security
FY 25/26 Revised Budget: $5,868,083
FY 26/27 Proposed Budget: $6,200,143
Percent Change: +5.7%
The Information Technology & Security’s budget reflects an increase primarily due to salary related costs and ongoing support for technology systems and infrastructure. This ensures continued reliability and security of the City’s information systems. Exhibit (4) provides further details.
Public Safety and Emergency Management
FY 25/26 Revised Budget: $35,659,799
FY 26/27 Proposed Budget: $37,311,023
Percent Change: +4.6%
Public Safety and Emergency Management’s expenditures are expected to increase, reflecting ongoing contractual obligations, including the Sheriff’s contract, as well as staffing, equipment, and operational costs necessary to maintain the City’s commitment to public safety and emergency services. Exhibit (4) provides further details.
Finance
FY 25/26 Revised Budget: $6,326,692
FY 26/27 Proposed Budget: $6,674,228
Percent Change: +5.5%
The Finance Department’s budget reflects a moderate increase, driven by ongoing financial management, auditing services, and reporting requirements necessary to support the City’s operations and continued growth. Exhibit (4) provides further details.
Human Resources & Risk Management
FY 25/26 Revised Budget: $7,249,640
FY 26/27 Proposed Budget: $8,476,672
Percent Change: +16.9%
The Human Resources & Risk Management’s budget reflects an increase to support recruitment, employee development programs, and ongoing workforce management in alignment with the City’s operational needs and organizational growth. Exhibit (4) provides further details.
Community & Economic Development
FY 25/26 Revised Budget: $10,534,827
FY 26/27 Proposed Budget: $9,557,994
Percent Change: -9.3%
The Community & Economic Development’s budget reflects a decrease, primarily due to the completion of major projects and a continued focus on operational efficiencies. This reduction also reflects a strategic reallocation of resources to other priority areas. Exhibit (4) provides further details.
Public Works
FY 25/26 Revised Budget: $33,457,461
FY 26/27 Proposed Budget: $29,263,161
Percent Change: -12.5%
The Public Works budget reflects a decrease, primarily due to the completion or scaling down of certain projects and a continued focus on operational efficiencies. Despite this reduction, the department will continue to support essential infrastructure maintenance and core service delivery. Exhibit (4) provides further details.
Community Services/Recreation/Park Maintenance
FY 25/26 Revised Budget: $27,072,863
FY 26/27 Proposed Budget: $29,234326
Percent Change: +8.0%
The Community Services/Recreation/Park Maintenance budget reflects an increase to support ongoing recreational programs, community services, and maintenance activities. This increase ensures continued delivery of programs and services that enhance quality of life for residents. Exhibit (4) provides further details.
Non-Departmental
FY 25/26 Revised Budget: $14,324,381
FY 26/27 Proposed Budget: $13,830,149
Percent Change: -3.5%
Non-departmental expenditures are expected to decrease, primarily due to reduced contingency allocations and transfer costs. This reflects continued efforts to manage citywide expenditures efficiently. Exhibit (4) provides further details.
Salaries and Benefits Overview:
The proposed Fiscal Year 2026-2027 budget includes salaries and benefits for a total of 403 full-time equivalent (FTE) positions across various departments, totaling approximately $61.4 million. This allocation reflects the City’s continued commitment to providing competitive compensation while ensuring the effective delivery of essential services to the community. Exhibit (5) provides further details.
A breakdown of key departments shows the following:
• Public Works has the largest number of FTEs, reflecting the department’s critical role in maintaining the City’s infrastructure.
• Community Services follows, supporting programs vital to community engagement and quality of life. • Public Safety continues to receive significant staffing resources to support essential safety services. • Other departments, such as Finance and the City Manager's Office, maintain staffing levels necessary for financial oversight and administrative operations.
The vacancy rate across all departments is approximately 10%, representing 40 vacant positions. These vacancies present opportunities for the City to address staffing needs and enhance service delivery in critical areas. Exhibit (6) provides further details.
While the City is managing vacancies effectively, continued efforts will be required to fill positions in key departments to maintain operational efficiency.
Overall, the proposed salaries and benefits budget reflects a balanced approach to ensuring competitive compensation, maintaining a full workforce, and addressing the City’s growing demands for services. The City Council’s oversight will be essential in ensuring that the allocation remains aligned with service goals and financial stability.
Conclusion:
The City of Carson is positioned for a stable financial outlook in Fiscal Year 2026-2027, supported by modest revenue growth and controlled expenditures that maintain a structurally balanced budget. While certain revenue categories reflect variability, the overall outlook remains positive, and the General Fund Reserve continues to provide a solid foundation to navigate economic uncertainties.
On the expenditure side, the proposed budget reflects a strategic approach to funding essential services, with an emphasis on public safety, infrastructure, and community programs. The budget ensures fiscal responsibility while addressing the operational needs of the City. Continued oversight from the City Council will be essential in maintaining a sustainable budget that is adaptable to evolving economic conditions and aligned with the City’s long-term goals.
Overall, the City’s financial outlook for FY 2026-2027 remains stable, and with prudent financial management, Carson will continue to meet the needs of its residents and businesses while maintaining long-term fiscal sustainability.
V. FISCAL IMPACT
The Operational Budget Revenue baseline is estimated at $156.93 million. The Operational Budget Expense is estimated at $156.46 million. The estimated surplus is $470,051.
The City Council's direction from this workshop will inform the drafting of the Fiscal Year 2026-2027 budget. A comprehensive set of exhibits accompanies this report to provide detailed insights into revenue and expenditure projections.
VI. EXHIBITS
1. General Fund Balance
2. General Fund Surplus Mid-Year Balance
3. 2026-2027 Proposed Revenues
4. 2026-2027 Proposed Expenditures
5. 2026-2027 Proposed Salaries & Benefits
6. 2026-2027 Forecasted Vacancy Rate
Attachments
Exhibit No. 1-General Fund Balance
Exhibit No. 2- General Fund Surplus Mid-Year Balance.pdf Exhibit No. 3- 2026-2027 Proposed Revenues
Exhibit No. 4- 2026-2027 Proposed Expenditures
Exhibit No. 5-2026-2027 Salaries and Benefits
Exhibit No. 6- 2026-2027 Forecasted Vacancy Rate
General Fund Balance
FY 2026/2027 Proposed Revenue Budget
Revenue Source FY 25/26 Adopted Budget FY 26/27 Proposed Budget FY 25/26 Actuals Percent +/- Sales Tax 39,149,000 40,344,641 27,820,329 3.1%
Property Tax 25,594,667 26,320,406 16,966,437 2.8%
Franchise Fees 21,180,000 16,821,000 9,574,226 -20.6%
Transaction User Tax (Measure K) 19,900,000 18,923,759 11,407,903 -4.9% Utility User Tax 11,500,000 12,000,000 7,846,519 4.3%
Licenses and Permits 9,749,738 9,451,590 6,307,414 -3.1% Oil Business Tax 8,600,000 10,050,000 8,664,688 16.9%
Use of Money and Property 7,118,940 7,057,000 7,819,327 -0.9% Fines and Fees 6,051,704 8,936,163 5,014,660 47.7%
Transient Occupancy Tax 2,500,000 2,500,000 1,595,995 0.0% Charges for Services 1,494,694 1,955,526 1,568,227 30.8% Intergovernmental Revenues 150,000 150,000 37,688 0.0%
Other Revenue 2,270,821 2,423,000 10,375,241 6.7%
Totals 155,259,564 156,933,084 114,998,652 1.1%
FY 2026/2027 Proposed City Expenditure
Department FY 25/26 Revised Budget FY 26/27 Proposed Budget FY 25/26 Actuals Percent +/- City Council 954,898 960,749 764,204 0.6%
City Attorney's Office 3,900,000 2,900,000 3,248,660 -25.6% City Clerk's Office 1,912,550 2,557,729 1,166,182 33.7% City Treasurer's Office 1,040,083 988,809 739,119 -4.9% City Manager's Office 8,249,921 8,508,050 5,551,316 3.1% Information Technology and Security 5,868,083 6,200,143 4,078,754 5.7% Public Safety & Emergency Management 35,659,799 37,311,023 26,469,259 4.6% Finance 6,326,692 6,674,228 4,277,807 5.5%
Human Resources & Risk Management 7,249,640 8,476,672 4,865,129 16.9% Community & Economic Development 10,534,827 9,557,994 5,380,042 -9.3% Public Works 33,457,461 29,263,161 21,508,275 -12.5%
Community Services/Recreration/Park Maintenance 27,072,863 29,234,326 20,741,420 8.0% Non-Departmental 14,324,381 13,830,149 23,272,187 -3.5% Totals 156,551,198 156,463,033 122,062,354 -0.1%
FY 2026/2027 Proposed FTE Salaries and Benefits
Department FTE Count Propsed FY 26/27
City Council 5 659,449
City Clerk's Office 6 1,053,751
City Treasurer's Office 5 875,609
City Manager's Office 31 5,978,719
Information Technology and Security 17 3,393,429
Public Safety & Emergency Management 34 5,093,356
Finance 35 5,402,078
Human Resources & Risk Management 18 3,088,712
Community & Economic Development 21 3,147,753
Public Works 126 17,845,172
Community Services/Recreration/Park Maintenance 105 14,895,382 Totals 403 61,433,410
FY 2026/2027 Forecasted Vacancy Rate
Department FTE Count FTE Filled Vacancy Vacancy Rate
City Council 5 5 - -
City Clerk's Office 6 6 - -
City Treasurer's Office 5 5 - -
City Manager's Office 31 26 5 16%
Information Technology & Security 17 15 2 12%
Public Safety & Emergency Management 34 31 3 9%
Finance 35 32 3 9%
Human Resources & Risk Management 18 16 2 11%
Community & Economic Development 21 18 3 14%
Public Works 126 113 13 10%
Community Services/Recreration/Park Maintenance 105 96 9 9% Totals 403 363 40 10%