Agenda — Cudahy City Council, January 17, 2023 (part 1 of 3)

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AGENDA

A REGULAR MEETING

OF THE CUDAHY CITY COUNCIL
and JOINT MEETING of the
CITY OF CUDAHY AS SUCCESSOR AGENCY and HOUSING SUCCESSOR AGENCY

TO THE CUDAHY DEVELOPMENT COMMISSION
Tuesday, January 17, 2023 – 6:30 P.M.

Written materials distributed to the City Council within 72 hours of the City Council meeting shall be available for public inspection at www.cityofcudahy.com In compliance with the Americans with Disabilities Act (ADA) if you need special assistance to participate in this meeting, you should contact the City Clerk’s Office at (323) 773-5143 at least 72 hours in advance of the meeting.

Rules of Decorum
Under the Government Code, the City Council may regulate disruptive behavior that impedes the City Council Meeting.

Disruptive conduct may include, but is not limited to:
• Screaming or yelling during another audience member’s public comments period; • Profane language directed at individuals in the meeting room; • Throwing objects at other individuals in the meeting room; • Verbal altercations with other individuals in the meeting room; and • Going beyond the allotted three-minute public comment period granted.

When a person’s or group’s conduct disrupts the meeting, the Mayor or presiding officer will request that the person or group stop the disruptive behavior and WARN the person or group that they will be asked to leave the meeting room if the behavior continues.

If the person or group refuses to stop the disruptive behavior, the Mayor or presiding officer may order the person or group to leave the meeting room and may request that those persons be escorted from the meeting room. Any person who, without authority of law, willfully disturbs or breaks up a City Council meeting is guilty of a misdemeanor. (Pen. Code, § 403.)
Daisy Lomelí, Mayor
Jose R. Gonzalez, Vice Mayor
Elizabeth Alcantar, Council Member
Martin U. Fuentes, Council Member
Cynthia Gonzalez, Council Member

REMOTE TELECONFERENCE AND

ELECTRONICALLY
This meeting will be conducted telephonically
and electronically pursuant to Government
Code § 54953
Teleconference Phone Number:
1 (669) 900-6833
Meeting ID: 890 9438 0913
https://us06web.zoom.us/j/89094380913

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City of Cudahy
City Council and Successor Agency
Regular Meeting Agenda
January 17, 2023, at 6:30 P.M.

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1. CALL TO ORDER

2. ROLL CALL
Council / Agency Member Alcantar
Council / Agency Member Fuentes
Council / Agency Member Gonzalez
Vice Mayor / Vice Chair Gonzalez
Mayor / Chair Lomelí

3. PLEDGE OF ALLEGIANCE

4. LAND ACKNOWLEDGEMENT
We would like to acknowledge that the land we inhabit today was once known as Tovangaar, the home of the Gabrieleño-Tongva people. We show our respects to the Gabrieleño-Tongva people, as well as all Indigenous people, past, present, and future, and honor their labor as original caretakers of this land. We commit to uplifting the Gabrieleño-Tongva people, invite you to acknowledge the history, and join us in caring for this land.

5. PRESENTATIONS
A. Certificate of Recognition presented to Johnny Guereca, Elizabeth Learning Center Student B. Certificate of Recognition presented to Eloy Adame, Elizabeth Learning Center Band Director C. Plaque presented to East Los Angeles Sheriff’s Deputy Montes D. Grant Application Submittal for the Former Successor Agency Sites E. City Manager’s Annual Update
F. Housing Element Update
G. Strategic Plan Update

6. CLOSED SESSION PUBLIC COMMENTS
(Each member of the public may provide a public comment telephonically or electronically if he or she wishes to address the City Council on closed session matters by clicking the hand icon on Zoom or pressing star (*) nine (9) on the telephone. During this time, members of the public are permitted to speak for three (3) minutes concerning only items on closed session.)

RECESS TO CLOSED SESSION
At this time, City Council will meet in closed session to go over items of business on the closed session agenda. Closed session discussion will end at 7:30 p.m. At that time, City Council will have the option to continue discussing closed session items after deliberating on all agenda items or continue the discussion to the next regular meeting. Once closed session is complete and the City Council returns from closed session into open session, members of the public may then rejoin the proceedings.

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City of Cudahy
City Council and Successor Agency
Regular Meeting Agenda
January 17, 2023, at 6:30 P.M.

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7. CLOSED SESSION
A. Closed Session Pursuant to Government Code Section 54957 – Public Employee Performance Evaluation
Title of Employee: City Manager

Closed Session Pursuant to Government Code Section 54957.6 – Conference with Labor Negotiator
City’s Designated Representative: Stephanie Arechiga, City Attorney Unrepresented Employee: City Manager

8. CLOSED SESSION ANNOUNCEMENT

9. PUBLIC COMMENTS
(Each member of the public may provide a public comment telephonically or electronically by clicking the hand icon on Zoom or pressing star (*) nine (9) on the telephone, if he or she wishes to address the City Council. Members of the public are permitted to speak for three (3) minutes concerning items under the City Council’s jurisdiction, including items on the council agenda.) (Any person who, without authority of law, willfully disturbs or breaks up a City Council meeting is guilty of a misdemeanor. (Pen. Code, § 403).)

10. CITY COUNCIL COMMENTS / REQUESTS FOR AGENDA ITEMS (Each Council Member is limited to three minutes.)
(This is the time for the City Council / Agency to comment on any topics related to “City Business,” including announcements, reflections on city / regional events, response to public comments, suggested discussion topics for future council meetings, general concerns about particular city matters, questions to the staff, and directives to the staff (subject to approval / consent of the City Council majority members present, regarding staff directives). Each Council / Agency Member will be allowed to speak for a period not to exceed three (3) minutes. Notwithstanding the foregoing, the City Council Members shall not use this comment period for serial discussions or debate between members on City business matters not properly agendized. The City Attorney shall be responsible for regulating this aspect of the proceeding.)

11. CITY MANAGER REPORT (information only)

12. REPORTS REGARDING AD HOC, ADVISORY, STANDING, OR OTHER COMMITTEE

MEETINGS
A. Reports regarding Rent Control Ad Hoc Committee and Education Ad Hoc Committee meetings (page 9)

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City of Cudahy
City Council and Successor Agency
Regular Meeting Agenda
January 17, 2023, at 6:30 P.M.

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13. WAIVER OF FULL READING OF RESOLUTIONS AND ORDINANCES (Consideration to waive full text reading of all Resolutions and Ordinances by single motion made at the start of each meeting, subject to the ability of the City Council / Agency to read the full text of selected resolutions and ordinances when the item is addressed by subsequent motion.) (COUNCIL / AGENCY)
Recommendation: Approve the Waiver of Full Reading of Resolutions and Ordinances.

14. CONSENT CALENDAR
(Items under the Consent Calendar are considered routine and will be enacted by one motion, prior to the vote to approve the Consent Calendar, each Council Member shall have a maximum of three (3) minutes to comment on the Consent Calendar as a whole. There will be no separate discussion of these items unless a Council / Agency Member so requests specific item(s) be removed from the Consent Calendar for separate action. Items may only be considered as a separate action if either (1) a Council Member must recuse themselves due to a conflict of interest or (2) a Council Member has specific questions for City Staff. Items called for separate discussion will be heard as the next order of business.)

AS CITY COUNCIL
A. Approval of the Local Agency Investment Fund (LAIF) for the Month of December 2022 (page 11) Presented by the Finance Director
Recommendation: The City Council is requested to approve the Local Agency Investment Fund (LAIF) Report for the month of December 2022 in the amount of $11,261,389.49.

B. Approval of the City Demands and Payroll Including Statement of Investment for the Month of December 2022 (page 15)
Presented by the Finance Director
Recommendation: The City Council is requested to approve the Demands and Payroll in the amount of $1,395,830.23 including the Statement of Investments for the month of December 2022.

C. Informational Item – ARPA Utilization Plan Monthly Report (December 2022) (page 25) Presented by the Finance Director
Recommendation: The City Council is requested to receive and file the ARPA Utilization Plan Monthly Report for the month of December 2022.

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City of Cudahy
City Council and Successor Agency
Regular Meeting Agenda
January 17, 2023, at 6:30 P.M.

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D. Consideration to Review and Approve the Draft Minutes of August 16, 2022, and December 6, 2022, for the Regular Meeting of the City Council and the Joint Meeting of the City of Cudahy as Successor Agency and Housing Successor Agency to the Cudahy Development Commission (page 29)
Presented by the City Clerk
Recommendation: The City Council is requested to review and approve the City Council / Successor Agency Draft Minutes for August 16, 2022, and December 6, 2022.

E. Adoption of Proposed Resolution No. 23-01 Proclaiming a Local Emergency, Ratifying the Proclamation of a State of Emergency by Governor Newsom on March 4, 2020, and Re-Authorizing Remote Teleconference Meetings of the City Council, City Boards, and all Commissions of the City of Cudahy, for the Period from January 17, 2023, through February 16, 2023, Pursuant to Brown Act Provisions (page 51)
Presented by the City Attorney
Recommendation: The City Council is requested to approve proposed Resolution No. 23-01 proclaiming a local emergency, ratifying the proclamation of a State of Emergency by Governor Newsom on March 4, 2020, and re-authorizing remote teleconference meetings of the City Council, City Boards, and all Commissions of the City of Cudahy, for the period from January 17, 2023, through February 16, 2023, pursuant to Ralph M. Brown Act provisions.

F. Receive and File Proposed Change to Staffing in City Attorney’s Office (page 61) Presented by the City Attorney
Recommendation: It is staff’s recommendation that the City Council receive and file the proposed change in staffing with the City Attorney’s Office.

AS SUCCESSOR AGENCY
G. Approval of the Recognized Obligation Payment Schedule for the Fiscal Period of July 1, 2023 to June 30 2024 (ROPS 23-24) (page 63)
Presented by the Finance Director
Recommendation: The Successor Agency is requested to approve the Recognized Obligation Payment Schedule (ROPS) for the fiscal period of July 1, 2023 to June 30, 2024 (ROPS 23-24), for submission to the City of Cudahy Oversight Board.

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City of Cudahy
City Council and Successor Agency
Regular Meeting Agenda
January 17, 2023, at 6:30 P.M.

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H. Consideration to Adopt Resolution No. SA 23-01 for Approval of the Administrative Budget for Fiscal Period of July 1, 2023 to June 30, 2024 (page 71) Presented by the Finance Director
Recommendation: The Successor Agency is requested to adopt a proposed Resolution No.

SA 23-01 approving the Administrative Budget for the Recognized Obligation Payment Schedule (ROPS) for the fiscal period of July 1, 2023 to June 30, 2024 (ROPS 23-24).

15. PUBLIC HEARING
A. A Public Hearing to Consider and Adopt Resolution No. 23-02 of the City of Cudahy City Council Approving Projects / Programs to the City Council for Community Development Block Grant (CDBG) Funding During the Fiscal Year (FY) 2023-24 (page 79) Presented by the Management Analyst
Recommendation: The City Council is requested to Adopt Resolution No. CDAB 23-02, recommending Projects/Programs to the City Council for the Community Development Block Grant (CDBG) Funding for Fiscal Year 2023-2024.

16. BUSINESS SESSION
A. Consideration to Adopt a Proposed Urgency Ordinance of the City Council of the City of Cudahy Establishing an Interim Prohibition on Residential Rent Increases (page 103) Presented by the City Attorney
Recommendation: It is staff’s recommendation that the City Council take one of the following actions:

1. Adopt Urgency Ordinance No. 731 extending the temporary prohibition on residential rent increases for a period of 90 additional days with the ability to extend further; or

2. Take no further action, thereby allowing the current rent increase moratorium to expire on January 18, 2023.

B. Receive and File of the FY 2021-22 Audited Financial Statements and Related Reports (page 113) Presented by the Finance Director

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City of Cudahy
City Council and Successor Agency
Regular Meeting Agenda
January 17, 2023, at 6:30 P.M.

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Recommendation: The City Council is requested to receive and file the FY 2021-22 Audited Financial Statements and Related Reports.

C. Approval of Professional Services Agreement for Municipal Financial Advisory Services (page 261) Presented by the Finance Director
Recommendation: The City Council is requested to award a Professional Services Agreement (PSA) to NHA Advisors, LLC to conduct as needed Municipal Financial Advisory Services not to exceed $85,000.

D. Approval of Professional Services Agreement and Proposed Resolution for City Council Chambers Procurement and Installation Services for Audio/Visual Systems (page 375) Presented by the Finance Director
Recommendation: City Council is requested to:

1. Award a Professional Services Agreement (PSA) to Sunset Audio Visual to conduct Procurement and Installation Services for City Council Chambers Audio/Visual Systems for $66,774.15; and

2. Adopt Resolution No. 23-03, appropriating seventy-five thousand dollars ($75,000.00) to fund the City Council Chamber Audio Visual Upgrades Project.

E. Annual Council Member Appointments to Serve on Various Committees (page 447) Presented by the City Clerk
Recommendation: The City Council is requested to consider appointing a delegate and an alternate member to the various committees.

F. Consideration to Appoint Board Members to the Planning Commission (page 455) Presented by the City Clerk
Recommendation: The City Council is requested to review applications and appoint commission applicants to the Planning Commission.

17. COUNCIL DISCUSSION - NONE

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City of Cudahy
City Council and Successor Agency
Regular Meeting Agenda
January 17, 2023, at 6:30 P.M.

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18. ADJOURNMENT
I, Richard Iglesias, hereby certify under penalty of perjury under the laws of the State of California that the foregoing agenda was posted on the City’s Website, City Hall, Clara Park, and Lugo Park not less than 72 hours prior to the meeting. A copy of said Agenda is on file in the City Clerk’sOffice.

Dated this 12th day of January 2023
Richard Iglesias
City Clerk

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“Serving The People” "Sirviendo A La Comunidad"
Staff Report
01/17/2023 Page 1 of 1

AD HOC COMMITTEE UPDATES
Date: January 17, 2023
To: Honorable Mayor/Chair and City Council/Agency Members From: Alfonso Noyola, City Manager/Executive Director
By: Richard Iglesias, City Clerk
Subject: Ad Hoc Committee Report Out

RENT CONTROL AD HOC COMMITTEE - MAYOR ALCANTAR, VICE MAYOR GONZALEZ,

LANDLORD SUSIE DE SANTIAGO, RESIDENTS TEVINA QUINTANA AND IRMA LOPEZ On January 09, 2023, the Rent Control Ad Hoc Committee met and discussed rental units covered under proposed rent control, possible exemptions, max rent increase within 12 months, the appeal process, and the next meeting date.

EDUCATION AD HOC COMMITTEE – MAYOR ALCANTAR, AND COUNCIL MEMBER LOMELÍ On January 11, 2023, Ad Hoc Committee members discussed collaboration for Mural number two at Lugo Park, recognition of students and improvements in traffic during school drop-off and pick-up times, and the grand reopening of the Wellness Center. Also, discussions about Elizabeth Learning Center’s school-wide career fair included the city participating and helping other agencies attend, and the next meeting date.

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“Serving The People” "Sirviendo A La Comunidad"
Staff Report
01/17/2023 Page 1 of 2

STAFF REPORT
Date: January 17, 2023
To: Honorable Mayor/Chair and City Council/Agency Members From: Alfonso Noyola, City Manager/Executive Director
By: Joshua Calhoun, Finance Director
Subject: Approval of the Local Agency Investment Fund (LAIF) for the Month of December 2022

RECOMMENDATION
The City Council is requested to approve the Local Agency Investment Fund (LAIF) Report for the month of December 2022 in the amount of $11,261,389.49.

BACKGROUND

1. In 1955, the Pooled Money Investment Account (PMIA) started. LAIF became part of the PMIA. The oversight is provided by the Pooled Money Investment Board (PMIB) and an inhouse Investment Committee. The PMIB members consist of the State Treasurer, Director of Finance, and State Controller.

2. In 1977, LAIF was created as a voluntary program by Section 16429.1 et seq. of the California Government Code. The program was intended to be used as an investment alternative for California's local governments and special districts. The LAIF continues today under State Treasurer, Fiona Ma's administration.

3. On December 1, 2022, the balance in LAIF was $11,261,389.49 (See Attachment).

4. On December 31, 2022, the balance in LAIF was $11,261,389.49 (See Attachment).

ANALYSIS
The voluntary program offers local agencies the opportunity to participate in a major portfolio, which invests hundreds of millions of dollars, using the investment expertise of the State Item Number
14A

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Staff Report
01/17/2023 Page 2 of 2

Treasurer’s Office investment staff at no additional cost to the taxpayer.

All securities are purchased under the authority of Government Code Section 16430 and 16480.4. The State Treasurer's Office takes delivery of all securities purchased on a delivery versus payment basis using a third-party custodian.

Cudahy Municipal Code Section 3.04.080 indicates, "Except as otherwise provided, no warrant shall be drawn or evidence of indebtedness issued unless there shall be at the time sufficient money in the treasury legally applicable to the payment of the same."

CONCLUSION
Once the City Council approves the current LAIF, this balance may be relied upon when determining if the City has sufficient funds available to pay demands and payroll as required by Cudahy Municipal Code Section 3.04.080.

STRATEGIC PLAN CORRELATION
Strategy #2. Provide regular updates to the City Council and community about the city’s finances.

FINANCIAL IMPACT
None

ATTACHMENT
A. Local Agency Investment Fund (LAIF) Balance

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1/3/23, 7:18 AM LAIF Regular Monthly Statement
https://laifms.treasurer.ca.gov/RegularStatement.aspx 1/1 Local Agency Investment Fund
P.O. Box 942809
Sacramento, CA 94209-0001
(916) 653-3001
January 03, 2023
LAIF Home
PMIA Average Monthly Yields

CITY OF CUDAHY

CITY MANAGER
5220 SANTA ANA STREET
CUDAHY, CA 90201
Account Number: 98-19-225
December 2022 Statement
Tran Type Definitions
Account Summary
Total Deposit: 0.00 Beginning Balance: 11,261,389.49
Total Withdrawal: 0.00 Ending Balance: 11,261,389.49

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“Serving The People” "Sirviendo A La Comunidad"
Staff Report
01/17/2023 Page 1 of 2

STAFF REPORT
Date: January 17, 2023
To: Honorable Mayor/Chair and City Council/Agency Members From: Alfonso Noyola, City Manager/Executive Director
By: Joshua Calhoun, Finance Director
Subject: Approval of the City Demands and Payroll Including Statement of Investment for the Month of December 2022

RECOMMENDATION
The City Council is requested to approve the Demands and Payroll in the amount of $1,395,830.23 including the Statement of Investments for the month of December 2022.

BACKGROUND

1. On December 13, 1993, Ordinance 476 was adopted and codified as Cudahy Municipal Code Section 3.04.080 indicating, "Except as otherwise provided, no warrant shall be drawn, or evidence of indebtedness issued unless there shall be at the time sufficient money in the treasury legally applicable to the payment of the same."

2. During the month, the Finance Department have completed the following demands and payroll:

Demands $944,396.55
Payroll Warrants 451,433.68
Total: $1,395,830.23
Attachment A
Attachment B
Item Number
14B

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“Serving The People” "Sirviendo A La Comunidad"
Staff Report
01/17/2023 Page 2 of 2

ANALYSIS
The Check Register Report (Attachment A), Payroll Warrants including payroll taxes and insurance premiums (Attachment B), Statement of Investment (Attachment C) indicate that the cash and investment balance was sufficient for disbursements for the month, a summary of cash received and disbursed by month during Fiscal Year (FY) 2022-23 (Attachment D), and a summary of cash received and disbursed by month during FY 2021-22 (Attachment E).

Cudahy Municipal Code Section 3.04.070 indicates, "Budgeted demands paid by warrant prior to audit by the council shall be presented to the council for ratification and approval..."

CONCLUSION
The Finance Director certifies the accuracy and availability of funds for payment. A Demand/Warrant Register has been submitted to the City Council for approval in accordance with Cudahy Municipal Code Section 3.04.070.

STRATEGIC PLAN CORRELATION
Goal (Financial Stability and Transparency)
• Provide regular updates to the City Council and Community about the City’s finances.

FINANCIAL IMPACT
The Statement of Investments Report (Attachment C) indicates that there are sufficient funds within the City’s holdings to meet the City’s cash flow requirements.

ATTACHMENTS
A. Accounts Payable Check Register Report.

B. Payroll Warrants including payroll taxes and insurance premiums C. Statement of Investments
D. Summary of Cash Receipt / Disbursement by Month FY 2022-23 E. Summary of Cash Receipt / Disbursement by Month FY 2021-22

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City of Cudahy
Check Register Report
Check
Date
Check
Number
Status Amount
BANK:

Vendor
Number
Vendor Name Check Description
WELLS FARGO BANK Page: 1
Time: 3:29 pm
Date: 01/09/2023
Void/Stop
Date
Reconcile
Date
WELLS FARGO BANK Checks
53656 12/07/22 Printed 2378-3 8330 ATLANTIC AVE INC Fuel for City Vehicles 11/21/22 - 11/30/22 261.89 ADVANCED IMAGING 474.49

SOLUTIONS
53657 12/07/22 Printed 10603 kyocera 4053i and 7353ci 10/20 to 11/19/22
53658 12/07/22 Printed 10074 ARTIC GLACIER ICE Snow Scene for Holiday Event 2,463.73 Installation and Delivery
53659 12/07/22 Printed 0057-4 AT & T Acct# 831-001-1071 968 11/16/22 to 14.04 12/15/22
AT & T LONG DISTANCE 43.65

SERVICE
53660 12/07/22 Printed 9966 Long distance 323-771-2072 Acct# 018 087 5708 001
53661 12/07/22 Printed 10698 B & W COMMUNICATIONS, INC. 4 speaker mics for the new parking 350.70 radios
53662 12/07/22 Printed 10639 CALIFORNIA PROFESSIONAL ATP Cycle 2 Project Project# 184,800.08 235-7105-6720
53663 12/07/22 Printed 10490 CHARTER COMMUNICATIONS Acct# 8448 30 044 0414354 4835 Clara 227.97 St 11/27 - 12/26
53664 12/07/22 Printed 10490 CHARTER COMMUNICATIONS Acct#8448 30 044 0414297 7810 455.94 Otis-10/23 to 12/22/22
53665 12/07/22 Printed 10490 CHARTER COMMUNICATIONS Acct# 8448 30 044 0431291 11/12 to 319.98 12/11/22-5220 Santa
53666 12/07/22 Printed 0136 CITY OF SOUTH GATE Public Works Maint December 2022 75.00 53667 12/07/22 Printed 10711 CLEARNETWORK, INC. Computer Endpoint Protection December 395.84 2022
53668 12/07/22 Printed 8179 CODE PUBLISHING INC. Municipal Code - Web Update New 307.50 Pages/Web hrly update
53669 12/07/22 Printed 0186 COUNTY OF LOS ANGELES Housing Costs for October 2022 9,163.52 53670 12/07/22 Printed 10451 DEKRA-LITE Street Holiday Garland Decorations 14,396.97 53671 12/07/22 Printed 10744 EDDIE C. TORRES JR. 3-Parking lot closed 2-Parking lot closed 445.00 53672 12/07/22 Printed 6086 EWING Atlantic Flags 772.10 53673 12/07/22 Printed 6087 FIRST AMERICAN DATA TREE Property Detail Report Services 11/01/22 99.00 to 11/30/22
GOLDEN STATE WATER 811.38

COMPANY
53674 12/07/22 Printed 0126-1 Water Services:5229 Cecilia November 2022
53675 12/07/22 Printed 10472 GUTIERREZ PIPELINE, INC. 2" Backflow repair city repair 5,750.00 HAULAWAY STORAGE 74.20

CONTAINERS
53676 12/07/22 Printed 10053 21ft. Container Rental Unit #09920 10/14 to 11/11/20
53677 12/07/22 Printed 9723 IT SYSTEM HOUSE, LLC IT outsourcing monthly fee 11/01/22 to 3,200.00 11/30/22
LA COUNTY SHERIFF'S 350,623.49

DEPARTMENT
53678 12/07/22 Printed 0197 Law Enforcement Services October 2022
LAW OFFICES OF GLENN 30,102.50
WARD
53679 12/07/22 Printed 10457 Legal Services - Cannabis SpecialCouncil 06/01-11/11/22
53680 12/07/22 Printed 10598 LEAF Kyocera Copier/Doc Fees November 464.97 2022
53681 12/07/22 Printed 10721 LOOMIS Armored Car Service 09/06 to 09/22/22 282.33 53682 12/07/22 Printed 10655 LUIS AGUILAR Business Cards Juan Arauz Juan 419.00 Rodriguez -Embroidery
53683 12/07/22 Printed 10679 M&J CARPETS CORPORATION 1 pallet of grafe flooring for City Hall 4,653.83 53684 12/07/22 Printed 7014 NATIONWIDE ENVIRONMENTAL Streets/Park Sweeping November 2022 9,420.30 53685 12/07/22 Printed 10746 NOEL BARAJAS 2022 Calperla Annual Training Mileage 376.25 Reimbursement 11/16,18
53686 12/07/22 Printed 10733 PARTNERS IN DIVERSITY, INC. Gemma Cruz-Data Entry Clerk Ending 928.00 11/20/22 (16)
53687 12/07/22 Printed 10081-2 QUADIENT FINANCE USA, INC. Period 9/21 to 11/20/22 Acct# 7900 0440 353.56 3997 8501
REGIONAL TAP SERVICE 586.50
CENTER
53688 12/07/22 Printed 9737 Senior Tap Card September 2022 53689 12/07/22 Printed 2802 SAM'S CLUB Purchases 11/17 to 12/05/22 963.46 53690 12/07/22 Printed 10727 SANCHEZ AWARDS Name Plates/brackets for Council 368.23 Chambers
Attachment A Page 17 of 473
City of Cudahy
Check Register Report
Check
Date
Check
Number
Status Amount
BANK:

Vendor
Number
Vendor Name Check Description
WELLS FARGO BANK Page: 2
Time: 3:29 pm
Date: 01/09/2023
Void/Stop
Date
Reconcile
Date
WELLS FARGO BANK Checks
53691 12/07/22 Printed 0071-1 SO CAL GAS 7810 Otis Ave 9/13 to 10/12/22 Acct# 31.27 041 883 6870 0
53692 12/07/22 Printed 0071-1 SO CAL GAS 5220 Santa Ana 10/13 to 11/14 Acct# 61.55 016 800 7800 1
SOUTHERN CALIFORNIA 785.37
EDISON
53693 12/07/22 Printed 0070 Acct# 700305960272 10/19/22 to 11/17/22
STATE COMPENSATION INS 31,990.32
FUND
53694 12/07/22 Printed 10643 Premium Charges 11/01/22 to 12/01/22 53695 12/07/22 Printed 5958 STATE WATER RESOURCES Annual Permit Fee 07/01 to 06/30/23 10,602.00 53696 12/07/22 Printed 9991 TRANSTECH ENGINEERING, INC. 20505 CUD ATP Cycle 2 CMCI 22,333.50 53697 12/07/22 Printed 10745 TRAVELERS Premium Policy 2,920.00 PUB-BA-51N44705-TCT-22
UNDERGROUND SERVICE 151.75

ALERT-SC
53698 12/07/22 Printed 2859 Monthly Database Maint New Ticket 11/22 (qty 81)
53699 12/07/22 Printed 10662 UNEXPECTED ATTRACTIONS DJ Service and Photobooth Services for 1,200.00 Holiday Dinner
53700 12/07/22 Printed 5169 VASQUEZ & COMPANY Audit FY ended 06/30/22 Audit 28,747.75 Planning/final fieldwork
53701 12/07/22 Printed 9951 WILLDAN Water Quality October 2022 2,201.00 53702 12/07/22 Printed 10735 YUNEX, LLC. Traffic Signal Callouts October 2022 4,576.33 53703 12/20/22 Printed 2378-3 8330 ATLANTIC AVE INC Fuel City Vehicles 12/01 to 12/10/22 891.59 53704 12/20/22 Printed 0001 AAA BURGLAR ALARM CO, Alarm Monitor Fee Jan/Feb/March 2023 1,828.00 AMAZON CAPITAL SERVICES, 1,573.56
INC.
53705 12/20/22 Printed 10640 Supplies 11/17/22 to 12/15/22 AMERICAN CITY PEST & 457.00

TERMITE
53706 12/20/22 Printed 7995 Pest Control Dec 2022 7810 Otis Avenue 53707 12/20/22 Printed 0057-4 AT & T Acct# 323 562 2005 521 2 323-562-2005 122.66 AT & T LONG DISTANCE 43.65

SERVICE
53708 12/20/22 Printed 9966 Acct# 018 087 5708 001 Long Distance 323 771-2072
53709 12/20/22 Printed 8021 AT & T MOBILITY Acct# 287293439262 11/03/22 to 1,440.51 12/02/22
53710 12/20/22 Printed 10499 BOXING 4 KIDS LA Boxing Instructor November 2022 877.50 CALIFORNIA DEBT & 1,275.00

INVESTMENT
53711 12/20/22 Printed 9638 Energy Effeciency Facilities Modernization #2022-1496
53713 12/20/22 Printed 10520 CASTRO DISCOUNT TIRES INC 2 Patches Tire - Truck #5 David's truck 25.00 passenger rear
53715 12/20/22 Printed 10485 ENTERPRISE FM TRUST Toy High & Ford Fusi Dec 22 Monthly 2,191.71 Lease
53716 12/20/22 Printed 10581 FIESTA TAXI COOPERATIVE INC. Dial a ride seniors November 2022 4,794.09 53717 12/20/22 Printed 10742 GOVERNMENTJOBS.COM Neogov Insight subscription fee 3,262.15 53718 12/20/22 Printed 10130 GWMA Harbor Toxic Upstream FY 2022/2023 34,132.48 HAULAWAY STORAGE 74.20

CONTAINERS
53719 12/20/22 Printed 10053 21 Ft. Container Rental Unit #09920 11/9 to 12/6/22
HINDERLITER DELLAMAS & 1,273.73
ASST
53720 12/20/22 Printed 2139 Contract Services Sales Tax October to December 2022
HOME DEPOT CREDIT 3,852.73

SERVICES
53721 12/20/22 Printed 2724 Acct# 6035 3225 0024 3625 11/16/22 to 12/19/22
53722 12/20/22 Printed 10394 KEENAN ASSOCIATES 22/23 Annual Workers Comp fee 10,762.38 07/01/22 to 07/01/23
KIMLEY-HORN AND 2,288.54

ASSOCIATES,INC
53723 12/20/22 Printed 10694 Professional Engineering Serv Local Road Safty 09/22
53724 12/20/22 Printed 5411 LIEBERT CASSIDY WHITMORE CU010-00001 Personnel Professional 585.00 Service
53725 12/20/22 Printed 10721 LOOMIS Armored Car Service 12/22/22 252.44 53726 12/20/22 Printed 5072 MARIA SATIAGO VICTOR Reimbursement for employee supplies for 166.81 2023 xmas party
OCCUPATIONAL HEALTH 165.00

SERVICES
53727 12/20/22 Printed 5187 Pre Employment Physical December 2022

Page 18 of 473 ends

City of Cudahy
Check Register Report
Check
Date
Check
Number
Status Amount
BANK:

Vendor
Number
Vendor Name Check Description
WELLS FARGO BANK Page: 3
Time: 3:29 pm
Date: 01/09/2023
Void/Stop
Date
Reconcile
Date
WELLS FARGO BANK Checks
53728 12/20/22 Printed 10201-1 OLIVAREZ MADRUGA LAW November 2022 Legal Service 57,045.58 SpecialMatters-Code Enforcemnt
53729 12/20/22 Printed 10436 ONTARIO REFRIGERATION Maint 5220 Santa Ana Street 10/01/22 to 2,390.00 12/31/22
53730 12/20/22 Printed 5765 ORANGELINE Eco-Rapid Transit Annual Memb FY 9,281.66 2022/2023
53731 12/20/22 Printed 10733 PARTNERS IN DIVERSITY, INC. Gemma Cruz 16 hrs Data Entry Y. Arvizu 2,444.12

19.28 hrs wk 10/16
53732 12/20/22 Printed 0095 PETTY CASH Petty Cash Reimbursement 620.51 53733 12/20/22 Printed 10610 PHILIP PRIDEMORE Remix Mobile Stage for Toy Drive Event 1,500.00 53734 12/20/22 Printed 5537 PSI PRINTING SYSTEM INC. A/P Laser Checks 500 qty 257.10 REGIONAL TAP SERVICE 368.00
CENTER
53735 12/20/22 Printed 9737 Senior Tap Card November 2022 53736 12/20/22 Printed 2802 SAM'S CLUB Acct# 1921 12/06/22 to 12/15/22 2,562.34 53737 12/20/22 Printed 10727 SANCHEZ AWARDS Plaque for outgoing Council Blanca 176.40 Lozoya/Jack Guerrero
53738 12/20/22 Printed 10424 SHARPLINE SOLUTIONS Impact Recovery Systems Omaga Post, 3,660.44 Tuff Curb
53739 12/20/22 Printed 0071-1 SO CAL GAS Acct# 073 0007400 7 4835 Clara 11/8 to 106.73 12/09/22
SOUTHERN CALIFORNIA 5,486.93
EDISON
53740 12/20/22 Printed 0070 Acct# 700253825503 10/19 to 11/17/2022
SOUTHERN CALIFORNIA 17,487.80
EDISON
53741 12/20/22 Printed 0070 Acct# 700402348364 10/11 to 11/30/22 SOUTHERN CALIFORNIA 39.50
EDISON
53742 12/20/22 Printed 0070 Acct# 700731663364 11/04 to 12/06/22 53743 12/20/22 Printed 10592 SPARKLETTS 886209420520024 Watr Delivry 11/14 to 202.74 11/28/22
STAPLES BUSINESS 356.07

ADVANTAGE
53744 12/20/22 Printed 5647 Acct # AL 1876809 11/17/22 to 12/15/22 53745 12/20/22 Printed 5958 STATE WATER RESOURCES Annual Permit-7/22 to 6/23 Facility ID: 3,453.00 4SSO10380
53746 12/20/22 Printed 10467 STEAMX, LLC SIGNAL HILL O-Ring 1/4 Viton - 25 Pack O-Ring 3/8 68.47 Viton - 25 Pack
53747 12/20/22 Printed 9991 TRANSTECH ENGINEERING, INC. 221097 CUD TRF ATP Cycle 2 After 4,540.25 counts justification
53748 12/20/22 Printed 10662 UNEXPECTED ATTRACTIONS Sound for group and Dj Holiday Tree 800.00 Event
53749 12/20/22 Printed 2208 WEST COAST ARBORISTS, INC. Plant 60" Box Tree City Hall - Christmas 14,763.00 Tree
53750 12/20/22 Printed 9951 WILLDAN Building Official September 2022 10,662.50 53751 12/20/22 Printed 10401 WILLDAN FINANCIAL SERVICES Annual Street Lighing Distr Admin for FY 2,191.44 22/23
53752 12/28/22 Printed 10748 STRATEGIC INSIGHTS, INC. License: Plan it! Capital Planning 1,550.00 Software
Total Checks: 95 Checks Total (excluding void checks): 944,396.55 Total Payments: 95 Bank Total (excluding void checks): 944,396.55 Total Payments: 95 Grand Total (excluding void checks): 944,396.55

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12/01/23 12/15/23 12/29/23 Total
(a) Direct Deposits - 143,252.18 106,481.47 249,733.65
(b) ICMA Direct Deposit 6,115.00 - 60.00 6,175.00
(c) CalPERS Retirement 16,218.28 15,988.09 15,395.12 47,601.49 (d) Payroll taxes 21,861.15 33,045.45 20,450.77 75,357.37 (e) Medical 67,567.09 1,547.78 3,451.30 72,566.17
Total Amount 105,646.52 199,948.50 145,838.66 451,433.68 (a) Employees / Council Members / Commissioners
(b) Payments to ICMA
(c) Payments for CalPERS Retirement
(d) Federal / State payroll taxes and unemployment
(e) Medical Insurance

CITY OF CUDAHY
Payroll - including payroll taxes and insurance premiums:

Attachment B Page 20 of 473
Type Issuer Amount % of Total
Deposit - 4588 Wells Fargo 3,385,075.87 18.94%
Successor Agency - 0688 Wells Fargo 2,347,742.70 13.13% Savings - 4752 Wells Fargo 330,180.24 1.85%
Payroll - 4570 Wells Fargo 58,726.95 0.33%
Checking - 7128 Wells Fargo 482,193.91 2.70%
Money Market Account Bank of New York (BNY) (a) 10,563.14 0.06% Pooled Savings State Local Agency 11,261,389.49 63.00%
Investment Fund (LAIF)
Total 17,875,872.30 100.00%
Pursuant to California Government Code Section 53646(b), I hereby certify that all investments held by the Authority are in compliance with state law and the agency's Statement of Investment Policy, and that there are sufficient funds within the agency's investment holdings to meet the Authority's cash flow requirements for the next six (6) months.

Respectfully submitted,
Joshua Calhoun
Joshua Calboun
Finance Director

CITY OF CUDAHY
Statement of Investments
12/31/2022
Attachment C Page 21 of 473
Month
Cash Receipts Disbursement
July 2022 $ 4,033,647.40 (a) 1,789,957.16 $
August 2022 1,686,604.16 1,750,512.85
September 2022 823,969.03 2,318,824.72 (b)
October 2022 1,991,064.32 3,914,418.49 (c)
November 2022 1,086,868.12 869,692.56
December 2022 1,406,231.74 1,395,830.23
January 2023
February 2023
March 2023
April 2023
May 2023
June 2023
Total: $ 11,028,384.77 12,039,236.01
Note (a) - Includes $2.819 M received from American Rescue Plan Act, Fund 530 Note (b) - Includes $949K paid to Siemens
Note (c) - Includes $1,230,610 deposited into an Escrow fund for the Seimens Project Month
Cash Receipts Disbursement
July 2022 $ 845,547.28 $ 1,589,154.35 (1)
August 2022 1,012,769.79 1,077,279.74
September 2022 541,456.74 2,140,117.92 (2)
October 2022 1,628,965.30 834,689.66
November 2022 802,869.63 598,974.94
December 2022 774,144.70 976,007.61
January 2023
February 2023
March 2023
April 2023
May 2023
June 2023
Total: $ 5,605,753.44 $ 7,216,224.22
Note (1) - City liab. & workers comp insurance, and PERS unfunded pension liab.

City pre-payment option of PERS unfunded pension liability saved 3.5% interest ($12k) than paying on a monthly basis.

Note (2) - Includes $949K paid to Siemens
All Funds
General Fund
City of Cudahy
Summary of Cash Receipt/Disbursement by Month - FY 2022-2023 Attachment D Page 22 of 473
Month
Cash Receipts Disbursement
July 2021 $ 4,384,936.17 (a) 1,719,070.00 (b)
August 2021 1,302,245.06 1,724,180.11
September 2021 1,466,415.84 1,914,075.46
October 2021 1,180,116.32 951,668.82
November 2021 1,237,105.57 1,138,377.87
December 2021 1,067,809.93 861,657.95
January 2022 4,005,438.74 802,654.76
February 2022 963,370.98 1,063,520.04
March 2022 865,004.36 1,114,196.44
April 2022 1,177,290.04 778,141.92
May 2022 2,627,717.86 1,456,097.60
June 2022 1,839,140.97 1,261,663.52
Total: $ 22,116,591.84 14,785,304.49
Note (a) - Includes $2.819 M received from American Rescue Plan Act Note (b) - City liability, workers comp insurance, and PERS unfunded pension Month
Cash Receipts Disbursement
July 2021 $ 3,902,895.43 (1) 1,619,239.22 (2)
August 2021 1,279,409.42 669,082.58
September 2021 844,812.89 950,848.20
October 2021 879,973.23 784,400.59
November 2021 559,848.45 732,580.26
December 2021 446,464.02 672,977.93
January 2022 2,387,758.00 (3) 677,662.37
February 2022 682,478.37 656,951.12
March 2022 579,530.62 689,284.30
April 2022 653,561.53 703,644.94
May 2022 2,280,192.31 (4) 809,591.34
June 2022 453,988.59 895,818.39
Total: $ 14,950,912.86 9,862,081.24
Average Per Month: 1,245,909.41 821,840.10
Note (1) - Includes $2.819 M received from American Rescue Plan Act Note (2) - City liab. & workers comp insurance, and PERS unfunded pension liab.

Note (3) - Includes a $1,556,568 in Motor Vehicle In-lieu receipt Note (4) - Includes a $1,532,675 in Motor Vehicle In-lieu receipt City of Cudahy
Summary of Cash Receipt/Disbursement by Month - FY 2021-2022 All Funds
General Fund
Attachment E Page 23 of 473
Blank Page

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“Serving The People” "Sirviendo A La Comunidad"
Staff Report
01/17/2023 Page 1 of 2

STAFF REPORT
Date: January 17, 2023
To: Honorable Mayor/Chair and City Council/Agency Members From: Alfonso Noyola, City Manager/Executive Director
By: Joshua Calhoun, Finance Director
Subject: Informational Item – ARPA Utilization Plan Monthly Report (December 2022)

RECOMMENDATION
The City Council is requested to receive and file the ARPA Utilization Plan Monthly Report for the month of December 2022.

BACKGROUND

1. On August 16, 2022, The City Council provided city staff direction on the utilization of reimbursed American Rescue Plan Act grant funds.

2. On September 6, 2022, the City Council adopted Resolution No. 22-53 Approving the Commitment of Fund Balance Pursuant to GASB 54.

ANALYSIS
The City received a total of $5,638,206 of State and Local Fiscal Recovery Funds (SLFRF) from the American Rescue Plan Act (ARPA) that can be used by local governments to assist in the recovery from the impact of the COVID-19 pandemic. The City claimed the total of $5,638,206 as allowable expenditures for public safety incurred between March 2021 to June 2022. This reimbursed the City’s General Fund for the costs during that period as a result of the pandemic.

These one-time reimbursed ARPA Funds can be used for unrestricted purposes. The City Council provided direction to city staff as part of a utilization plan. These funds were approved for various projects. Additionally, the City Council approved $1,000,000 to Committed Fund Balance of the funds to be used solely for Strategic Plan Program Implementation. The result would require a resolution approved by the City Council to utilize these funds for such programs detailing which Strategic Plan goal it would achieve.

Item Number
14C

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“Serving The People” "Sirviendo A La Comunidad"
Staff Report
01/17/2023 Page 2 of 2

For transparency, the Finance Department will provide monthly reports to the City Council summarizing the ongoing use of the funds.

As of December 2022, the City has expended $3,679,495 of the approved funds. Of which $100,000 of the $1,000,000 Committed Fund Balance has been appropriated with $900,000 remaining for future Strategic Plan Program Implementation.

CONCLUSION
The provided report will provide transparency as to the utilization of the ARPA Funds for the City’s monthly reporting.

STRATEGIC PLAN CORRELATION
Goal D (Financial Stability and Transparency), Objective:

1.Provide regular updates to the City Council and community about the City’s finances.

FINANCIAL IMPACT
None.

ATTACHMENTS
A. ARPA Utilization Plan – Status Financial Report – December 2022

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City of Cudahy
American Rescue Plan Act (ARPA) - Utilization Plan
State and Local Fiscal Recovery Funds (SLFRF)
Status Financial Report - December 2022
Total City Allocation $ 5,638,206.00
Total Cumulative Expenditures** $ 5,638,206.00
Approved
Amount
Expenditures to
Date Project Status

APPROVED PROJECTS
City Reserves $ 2,150,056.00 $ 2,150,056.00 Completed
**Revenue Stabilization Plan
Council Approval: 8/16/2022
City-Wide Energy Efficiency Facilities
Modernization Project $ 1,435,000.00 $ 1,230,610.00 In-Progress Project Contingency (10%) $ 600,000.00
Council Approval: 8/16/2022
Strategic Plan Program Implementation $ 1,000,000.00
**Approved by City Council (Committed Fund Balance)
Council Approval: 9/6/2022
Hub Cities Consortium Financial Support $ 100,000.00 $ 100,000.00 Completed Council Approval: 9/6/2022
Remaining Committed Fund Balance $ 900,000.00
Strategic Plan $ 50,000.00 $ 51,352.00 Completed
Financial Software Upgrade $ 128,150.00 $ 64,881.00 In-Progress City Facilities Condition Assessment, $ 175,000.00 $ - In-Progress Maintenance Plan and Space Utilization Study
Employee Lump Sum Compensation $ 100,000.00 $ 82,596.37 Completed **Hero Pay
TOTAL $ 5,638,206.00 $ 3,679,495.37
**Pursuant to Final Rule issued by the U.S. Department of the Treasury, the SLFRF funds may be used towards government services (ie. public safety, police). Based on expenditures incurred for police services between March 2021 to June 2022 the City has claimed such allowable expenditures against the amount allocated to the City. This reimbursed the City's General Fund for the costs during that period as a result of the pandemic.

As the City's General Fund received "reimbursement" of prior costs incurred, the City will be utilizing these "onetime" funds for the following purposes:

Attachment A Page 27 of 473
Blank Page

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“Serving the People” "Sirviendo A La Comunidad"
Staff Report
01/17/2023 Page 1 of 2

STAFF REPORT
Date: January 17, 2023
To: Honorable Mayor/Chair and City Council/Agency Members From: Alfonso Noyola, City Manager/Executive Director
By: Richard Iglesias, City Clerk
Subject: Consideration to Review and Approve the Draft Minutes of August 16, 2022, and December 6, 2022, for the Regular Meeting of the City Council and the Joint Meeting of the City of Cudahy as Successor Agency and Housing Successor Agency to the Cudahy Development Commission

RECOMMENDATION
The City Council is requested to review and approve the City Council / Successor Agency Draft Minutes for August 16, 2022, and December 6, 2022.

BACKGROUND / ANALYSIS
On December 12, 2016, the City Council of the City of Cudahy adopted Resolution No. 16-38, approving the use of summary action minutes, meant to allow the City Clerk's Office to write the minutes in brief, assuring a record of Council's actions, due to having a recording of the full Council Meeting on the City’s website.

Historically
The Municipal Clerk is one of the oldest professions in government, dating back to 1272 A.D., originating in England. The record keeper then was called Remembrancer, an English official whose job was to remind the Lord Treasurer and Barons of Court, of business pending.

Years later, in the 1600s, when early colonists came to America, the office of the Clerk was one of the first offices to be established. Over the years, the City Clerk’s office has become the core for local government, and the liaison to the residents of the Community. The Municipal Clerk (City Clerk) is the record keeper of a City’s recorded history.

Item Number
14D

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“Serving the People” "Sirviendo A La Comunidad"
Staff Report
01/17/2023 Page 2 of 2
William Bennett Munro, a Canadian historian, and political scientist, who taught at Harvard University and the California Institute of Technology, stated in one of his first textbooks written: “No other office in municipal service has so many contacts. It serves the Mayor, the City Council, the City Manager (when there is one), and all administrative departments, without exception. All of them call upon it, almost daily, for some service or information. Its work is not spectacular, but it demands versatility, alertness, accuracy, and no end of patience.

The public does not realize how many loose ends of city administration this office pulls together.”
Moving forward to the present time, the City Clerk’s office today is generally responsible for keeping a record of City Council meetings; agreements; recordings of official documents; legal advertisements; municipal elections; commissions and committees current files; claims against the city; and other legal or official documents.

City Clerks are required to keep record of the proceedings (minutes) of Council meetings (Government Code Sections 36814 and 40801). Minutes are the official record of a meeting which provides a history of the Council’s decisions and actions.

CONCLUSION
City Council is requested to approve the attached City Council / Agency Draft Minutes of the proceedings of August 16, 2022, and December 6, 2022.

FINANCIAL IMPACT
No Financial Impact.

ATTACHMENT
A. Draft Minutes August 16, 2022
B. December 6, 2022
C. Resolution No. 16-38, approving the City Clerk’s use of Summary Action Minutes as the Official Record of the City Council proceedings.

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City Council/Successor Agency Minutes of 8/16/2022

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MINUTES
CUDAHY CITY COUNCIL REGULAR MEETING and
CITY OF CUDAHY AS SUCCESSOR AGENCY and

HOUSING SUCCESSOR AGENCY TO THE CUDAHY

DEVELOPMENT COMMISSION JOINT MEETING
August 16, 2022 6:30 P.M.

1. CALL TO ORDER
Mayor / Chair Alcantar called the meeting to order at 6:35 p.m.

2. ROLL CALL
PRESENT: Council / Agency Member Jack M. Guerrero (joined at 7:01 pm, left at 10:04 pm)
Council / Agency Member Blanca Lozoya (joined at 6:53 pm) Council / Agency Member Daisy Lomelí
Vice Mayor / Vice Chair Jose R. Gonzalez
Mayor / Chair Elizabeth Alcantar
ABSENT: None
ALSO PRESENT: City Manager, Alfonso Noyola, Deputy City Attorney, Stephanie Arechiga, City Clerk, Richard Iglesias, Assistant City Clerk, Estefania Zamora, Finance Director, Joshua Calhoun, Administrative Services Director, Brenda Rodriguez, Community Development Director Juan Arauz, Public Works Director, Aaron Hernandez, and Management Analyst, Andres Rangel.

3. PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by Council Member Lomelí.

4. LAND ACKNOWLEDGEMENT
The Land Acknowledgment was led by Council Member Lomelí.

We would like to acknowledge that the land we inhabit today was once known as Tovangaar, the home of the Gabrieleño-Tongva people. We show our respects to the Gabrieleño-Tongva people, as well as all Indigenous people, past, present, and future, and honor their labor as original caretakers of this land. We commit to uplifting the Gabrieleño-Tongva people, invite you to acknowledge the history, and join us in caring for this land.

5. PRESENTATIONS
A. Recognition of Muralist
Attachment A Page 31 of 473
City Council/Successor Agency Minutes of 8/16/2022

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B. Presentation on Supportive Services Division
C. Recognition of Salvador Lopez Jr.

6. CLOSED SESSION PUBLIC COMMENTS – NONE

7. CLOSED SESSION – NONE

8. CLOSED SESSION ANNOUNCEMENT – NONE

9. PUBLIC COMMENTS
Emma Hernandez announced services provided to the city (i.e., Summer Tech Camp Program at Lugo Park that consisted of 2nd-5th grade students taking STEM classes, about 150 students attending, nine classes provided, 148 hours of direct services, and free meals), announced the upcoming events inviting Council to attend and thanked them.

Gerardo Hernandez mentioned that according to the 2020 U.S. Census Bureau, the City of Cudahy has an estimated 27.7% of residents living in poverty; also, an estimated 18.7 residents under the age of 65 years old have no health insurance, commented on a 2017 American Community Survey regarding the percentage of household renters, spoke on a proposed "affordable multi-family residential development," asked that elected officials further the discourse of today's proposal to address the seriousness of Cudahy's housing insecurities and look for solutions to find more affordable housing inside Cudahy.

Susie spoke on Item 16A, asked that funds are utilized based on feedback from the community (i.e., community programs, in-house sports programs for youth/adults), commented on Item 16B, referenced development units on Elizabeth and Otis with rents ranging from $2,000-$3,000 which is housing that this community cannot afford, agreed with having crossing guards asked for approval, mentioned an issue with a police officer, and asked for it to be addressed.

Bertha Martinez mentioned that Ellen Ochoa School has many issues with traffic and parents' double parking and urgently needs a crossing guard and someone to monitor the parking around the school.

Deputy Montes apologized for Susie's encounter and mentioned he would call her; he commented on double parking, and he would reach out to school police and figure out a strategy to have all schools covered regarding traffic issues.

10. CITY COUNCIL COMMENTS / REQUESTS FOR AGENDA ITEMS
Council Member Lomelí wished all the best to educators and families returning to school, mentioned looking forward to working with and supporting all our schools, students, and families, commented that needs have already been brought to our attention, and now having partnerships to continue the work to meet those needs, acknowledged Deputy Montes for apologizing, and asked for he and the City Manager to follow up with our resident, would like to hear back about actions taken regarding this incident.

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City Council/Successor Agency Minutes of 8/16/2022

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Council Member Lozoya spoke regarding parking and reiterated to have a study done regarding painting parking slots around the City's streets.

Council Member Guerrero addressed the Marijuana initiative in the previous week's special council meetings, advocated for shutting down the initiative on the ballot in November, and will encourage the community to come out in opposition to that City negotiated initiative, expressed his ongoing concern regarding the consent calendar protocol in summary, lastly, concerning a resident who had a bad experience with the Sheriff's Department, encouraged the Sheriff to adjust the tone as it relates to public interactions, and expressed sometimes being a little courteous makes a difference.

Vice Mayor Gonzalez welcomed students back to school, sent wishes to educators, expressed his appreciation towards Deputy Montes, mentioned that LAUSD Police may be able to support us with traffic issues, and provided an idea where residents can provide feedback through a survey/feedback card regarding their interaction with Sheriff's.

Mayor Alcantar addressed comments made during the public comment period, wanting to make sure we follow up with Susie, mentioned a conversation with Deputy Montes on how we communicate better with residents, mentioned joining Ellen Ochoa School in their backpack giveaway, fifty thousand was gifted to the school, reminded staff of her request of the temporary rent freeze ordinance, and asked to explore a partnership with Hot Wheels Wheelchair Basketball Team.

11. CITY MANAGER REPORT (information only)

12. REPORTS REGARDING AD HOC, ADVISORY, STANDING OR OTHER

COMMITTEE MEETINGS - NONE
A. Reports regarding Education Ad Hoc Committee, Economic Development Ad Hoc Committee, and Rent Control Ad Hoc Committee meetings

13. WAIVER OF FULL READING OF RESOLUTIONS AND ORDINANCES Motion: Council Member Lozoya motioned to waive full reading of resolutions and ordinances, seconded by Mayor Alcantar. Motion passed 4-1 by the following roll call vote:

AYES: Lozoya, Lomelí, Gonzalez, and Alcantar
NOES: Guerrero
ABSENT: None
ABSTAIN: None

14. CONSENT CALENDAR
Council Member Guerrero spoke under protest of the City's protocol of consent calendar, alleged the City is violating the brown act, stated he will be voting no on consent calendar items, made comments on the financial statement audit report, and quoted from the authoritative report of the California State Controller concerning the forensic audit.

A. Approval of the Local Agency Investment Fund (LAIF) for the Month of July 2022

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City Council/Successor Agency Minutes of 8/16/2022

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Recommendation: The City Council is requested to approve the Local Agency Investment Fund (LAIF) Report for the month of July 2022 in the amount of $11,223,201.06.

B. Approval of the City Demands and Payroll including Statement of Investment for the Month of July 2022
Recommendation: The City Council is requested to approve the Demands and Payroll in the amount of $1,789,957.16 including the Statement of Investments for the month of July 2022.

C. Consideration to Review and Approve the Draft of Minutes of July 26, 2022, for the Special Meeting of the City Council and the Joint Meeting of the City of Cudahy as Successor Agency and Housing Successor Agency to the Cudahy Development Commission
Recommendation: The City Council is requested to review and approve the City Council/ Successor Agency Draft Minutes for July 26, 2022.

D. Adoption of Proposed Resolution No. 22-48 Proclaiming a Local Emergency, Ratifying the Proclamation of a State of Emergency by Governor Newsom on March 4, 2020, and Re-Authorizing Remote Teleconference Meetings of the City Council, City Boards, and all Commissions of the City of Cudahy, for the Period from August 16, 2022, through September 15, 2022, Pursuant to Brown Act Provisions (page 33) Recommendation: The City Council is requested to approve proposed Resolution No. 22-48 proclaiming a local emergency, ratifying proclamation of a Sate of Emergency by Governor Newsom on March 4, 2020, and re-authorizing remote teleconference meetings of the City Council, City Boards, and all Commissions of the City of Cudahy, for the period from August 16, 2022, through September 15, 2022, pursuant to Ralph M. Brown Act provisions.

Motion: Vice Mayor Gonzalez motioned to approve Consent Calendar items, seconded by Council Member Lomelí. Motion passed 4-1 by the following roll call vote:

AYES: Lozoya, Lomelí, Gonzalez, and Alcantar
NOES: Guerrero
ABSENT: None
ABSTAIN: None
City Manager, Alfonso Noyola, requested City Council consider rearranging business items in this order, 16B, 16I, and 16A, to be heard before item 15A, with no opposition from City Council.

16. BUSINESS SESSION

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City Council/Successor Agency Minutes of 8/16/2022

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A. Presentation and Discussion on the Proposed Affordable Multifamily Residential Development
Presented by the Contract Planner
Recommendation: The City Council is requested to provide City staff direction on the proposed affordable multifamily residential development. - PRESENTATION, DISCUSSION, AND DIRECTION ONLY, NO MOTION - H. Consideration to Review and Approve the Strategic Plan 2022 to 2026 Presented by the City Manager
Recommendation: The City Council is requested to approve the Strategic Plan 2022 to 2026, which includes the City’s vision, goals, and strategies.

Motion: Council Member Lomelí motioned to approve the Strategic Plan 2022 to 2026, with a suggested addition to the Vision Statement to add the word "pride" at the end of the statement, seconded by Council Member Lozoya. Motion passed 4-1 by the following roll call vote:

AYES: Lozoya, Lomelí, Gonzalez, and Alcantar
NOES: Guerrero
ABSENT: None
ABSTAIN: None
A. Presentation, Discussion and Direction of Reimbursed ARPA Grant Fund Utilization Plan
Presented by the Finance Director
Recommendation: The City Council is requested to provide City staff direction on the proposed presentation of Reimbursed ARPA Grant Fund Utilization Plan. - PRESENTATION AND DISCUSSION ONLY, NO MOTION –

15. PUBLIC HEARING
A. Consideration to Approve a Performance Contracting Agreement Between the City of Cudahy and Siemens Industry, Inc. for its City-Wide Energy Efficiency Facilities Modernization Project and to Adopt Resolution No. 22-49, Augmenting the FY 2022-23 Budget in an Amount Not to Exceed $6.5 million for this Project
Presented by the Public Works Director

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Recommendation: The City Council is requested to approve the following: Approve and authorize the city manager to execute an agreement with Siemens Industry Inc. to proceed with the City-Wide Energy Efficiency Facilities Modernization Project and Adopt Resolution No. 22-49 to augment the Fiscal Year 2022-23 budget and appropriate funds in an amount not to exceed $6.5 million for the City -Wide Energy Efficiency Facilities Modernization Project.

At 9:10 p.m. Mayor Alcantar opened public comment.

Public Comments:

Susie de Santiago commented on her concern regarding the Solar system mentioning being ok with it if it is going to benefit the community in such a way as repairing the roofs, upgrading the air conditioning units and outlets in Lugo Park and Fitness Center, mentioned community centers are in desperate need of repairs as they are offered as cooling centers, and street lighting needs to be improved, and if there are money savings, better for other improvements to be made in our facilities.

At 9:13 p.m. Mayor Alcantar closed public comment.

Motion: Vice Mayor Gonzalez motioned to Approve a Performance Contracting Agreement Between the City of Cudahy and Siemens Industry, Inc. for its City-Wide Energy Efficiency Facilities Modernization Project and to Adopt Resolution No. 22-49, Augmenting the FY 2022-23 Budget in an Amount Not to Exceed $6.5 million for this Project, seconded by Mayor Alcantar. Motion passed 4-1 by the following roll call vote:

AYES: Lozoya, Lomelí, Gonzalez, and Alcantar
NOES: Guerrero
ABSENT: None
ABSTAIN: None

16. BUSINESS SESSION (CONTINUED)
C. Approval of Master Cooperative Agreement with Metro for the West Santa Ana Branch Light Rail Project
Presented by the Public Works Director
Recommendation: The City Council is requested to approve the Master Cooperative Agreement with Metro for the West Santa Ana Branch Light Rail Project and Authorize the City Manager to execute the agreement with the caveat that any future land banking in Cudahy by Metro will need to be approved by Cudahy City Council.

Motion: Vice Mayor Gonzalez motioned to adopt a Master Cooperative Agreement with Metro for the West Santa Ana Branch Light Rail Project and Authorize the City Manager to execute the agreement with the caveat that any future land banking in Cudahy by Metro will need to be approved by Cudahy City Council, seconded by Council Member Lozoya.

Motion does not pass 1-3 by the following roll call vote:

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AYES: Alcantar
NOES: Guerrero, Lozoya, and Lomelí
ABSENT: None
ABSTAIN: Gonzalez
Substitute Motion: Council Member Lomelí motioned to table/move item to the next meeting, seconded by Council Member Lozoya. Motion passes 4-0 by the following roll call vote:

AYES: Lozoya, Lomeli, Gonzalez, and Alcantar
NOES: None
ABSENT: None
ABSTAIN: Guerrero
D. Approval of a Professional Services Agreement for Crossing Guard Services with All City Management Services
Presented by the Management Analyst
Recommendation: The City Council is requested to approve a Professional Services Agreement for Crossing Guard Services with All City Management Services through June 30, 2022, for a total not to exceed amount of $62,186.40.

Motion: Vice Mayor Gonzalez motioned to adopt Approval of a Professional Services Agreement for Crossing Guard Services with All City Management Services through June 30, 2022, for a total not to exceed amount of $62,186.40, seconded by Council Member Lozoya. Motion passed 4-0 by the following roll call vote:

AYES: Lozoya, Lomelí, Gonzalez, and Alcantar
NOES: None
ABSENT: None
ABSTAIN: Guerrero
E. Consideration to Appoint Board Members to the Planning Commission Presented by the City Clerk
Recommendation: The City Council is requested to review applications and appoint commission applicants to the Planning Commission.

Motion: Council Member Guerrero motioned to appoint Maria Jimenez as his designated appointee to the Planning Commission, seconded by Council Member Lozoya. Motion passed 5-0 by the following roll call vote:

AYES: Guerrero, Lozoya, Lomelí, Gonzalez, and Alcantar
NOES: None
ABSENT: None

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ABSTAIN: None
F. Adoption of Proposed Resolution No. 22-50 Dissolving the Public Safety Commission
Presented by the City Attorney
Recommendation: The City Council is requested to adopt proposed Resolution No. 22- 50 dissolving the Public Safety Commission.

Motion: Council Member Lozoya motioned to adopt a Proposed Resolution No. 22-50 Dissolving the Public Safety Commission, seconded by Council Member Lomelí. Motion passed 4-0 by the following roll call vote:

AYES: Lozoya, Lomelí, Gonzalez, and Alcantar
NOES: None
ABSENT: None
ABSTAIN: Guerrero
G. Adoption of Proposed Resolution No. 22-51 Establishing the Parks and Environmental Justice Commission, and Adopting the Objectives and Policies for the Parks and Environmental Justice Commission
Presented by the Attorney
Recommendation: The City Council is requested to adopt proposed Resolution No. 22- 51 establishing the Parks and Environmental Justice Commission and adopting the Objectives and Policies for the Parks and Environmental Justice Commission.

Motion: Vice Mayor Gonzalez motioned to adopt proposed Resolution No. 22-51 Establishing the Parks and Environmental Justice Commission and Adopting the Objectives and Policies for the Parks and Environmental Justice Commission, seconded by Council Member Lomelí. Motion passed 4-0 by the following roll call vote:

AYES: Lozoya, Lomelí, Gonzalez, and Alcantar
NOES: None
ABSENT: None
ABSTAIN: Guerrero
At 10:04 p.m., Council Member Guerrero left the meeting.

H. Designation of Voting Delegate and Alternates for the League of California Cities Annual Conference & Expo, September 7-9, 2022, in Long Beach, California Presented by the City Clerk

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Recommendation: The City Council is requested to appoint a voting delegate and one or two alternates to represent the City at the 2022 League of California Cities Annual Conference Business Meeting on Friday, September 9, 2022, in Long Beach.

Motion: Vice Mayor Gonzalez motioned to appoint Mayor Alcantar as a delegate, Vice Mayor Gonzalez, and Council Member Lozoya as alternates to represent the City at the 2022 League of California Cities Annual Conference Business Meeting on Friday, September 9, 2022, in Long Beach, seconded by Council Member Lomelí. Motion passed 4-0-1 by the following roll call vote:

AYES: Lozoya, Lomelí, Gonzalez, and Alcantar
NOES: None
ABSENT: Guerrero
ABSTAIN: None

17. COUNCIL DISCUSSION – NONE

18. ADJOURNMENT
Vice Mayor Gonzalez motioned to adjourn the City Council / Agency meeting at 10:07 p.m., seconded by Council Member Lomelí. Motion passed 4-0-1 by the following roll call vote:

AYES: Lozoya, Lomelí, Gonzalez, and Alcantar
NOES: None
ABSENT: Guerrero
ABSTAIN: None

Elizabeth Alcantar
Mayor
ATTEST:

Richard Iglesias
City Clerk

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MINUTES
CUDAHY CITY COUNCIL REGULAR MEETING and
CITY OF CUDAHY AS SUCCESSOR AGENCY and

HOUSING SUCCESSOR AGENCY TO THE CUDAHY

DEVELOPMENT COMMISSION JOINT MEETING
December 6, 2022 6:30 P.M.

1. CALL TO ORDER
Mayor / Chair Alcantar called the meeting to order at 6:34 p.m.

2. ROLL CALL
PRESENT: Council / Agency Member Blanca Lozoya
Council / Agency Member Daisy Lomelí
Vice Mayor / Vice Chair Jose R. Gonzalez (joined at 6:48pm, left at 8:14pm)
Mayor / Chair Elizabeth Alcantar
ABSENT: Council Member Jack M. Guerrero
ALSO PRESENT: City Manager, Alfonso Noyola, City Attorney, Victor Ponto, City Clerk, Richard Iglesias, Assistant City Clerk, Estefania Zamora, Finance Director, Joshua Calhoun, Administrative Services Director, Brenda Rodriguez, Community Development Director, Juan Arauz, Public Works Director, Aaron Hernandez, Human Resources Manager, Noel Barajas, Parks and Recreation Manager, Victor Santiago, Management Analyst, Andres Rangel, Senior Accountant Charles Ortiz, and Executive Secretary, Janet Andrade.

3. PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by Council Member Lomelí.

4. LAND ACKNOWLEDGEMENT
The Land Acknowledgment was led by Council Member Lomelí.

5. PRESENTATIONS
A. East Los Angeles Sheriff’s Annual Update
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B. Los Angeles County Fire Department Annual Update
C. 2022 CDBG Single Family Housing Rehabilitation Program Update

6. CLOSED SESSION PUBLIC COMMENTS – NONE

7. CLOSED SESSION – NONE

8. CLOSED SESSION ANNOUNCEMENT – NONE

9. PUBLIC COMMENTS
Miriam commented on the increase in graffiti across multiple residential homes, stated Sheriff’s have always responded when she has called but can need better customer service, also mentioned there is an increase on loud muffling vehicles and thanked Council.

Susie de Santiago spoke in support of the item regarding KIPP having their permit rescinded, commented on businesses going through income loss due to COVID, stated she has heard from community members vendors selling at the corner of Santa Ana and Salt Lake, double parking being done, illegally parked cars are parking at the corner and is creating a hazard asked if someone could look into it.

Bertha Martinez spoke in support of the item regarding KIPP having their permit rescinded, spoke on ongoing traffic problems surrounding the schools and asked for Council’s support to make sure students are safe going to school.

10. CITY COUNCIL COMMENTS / REQUESTS FOR AGENDA ITEMS
Council Member Lomelí commented on the tree lighting event stated it was nice to see the community come out and the kids involved, thanked staff for putting everything together and wished everybody to stay warm and safe as we move into the holidays season.

Vice Mayor Gonzalez praised the team on the tree lighting event and to keep up the great work.

Mayor Alcantar mentioned her participation in a couple of trainings, one being the Young Elected Official Networks and the other Working Families Party trying to see what sorts of policy can be supported for the community, she also mentioned her participation in meetings around the 710 and asked for staff to participate in them more stated how Cudahy is left out of conversations where we should be funding, lastly commented on the tree lighting ceremony and looks forward to growing them further.

11. CITY MANAGER REPORT (information only)
A. Cannabis Fee Deferment and Payment Arrangements

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Vice Mayor Gonzalez requested an agenda clean up motion.

Mayor Alcantar opened for a motioned.

Vice Mayor Gonzalez motioned to continue item 16D to a date uncertain and re-open the RFP process, seconded by Council Member Lomelí. Motion passed 4-0-1 by the following roll call vote:

AYES: Lozoya, Lomelí, Gonzalez, and Alcantar
NOES: None
ABSENT: Guerrero
ABSTAIN: None

12. REPORTS REGARDING AD HOC, ADVISORY, STANDING OR OTHER

COMMITTEE MEETINGS
A. Reports regarding Economic Development Ad Hoc Committee, and Rent Control Ad Hoc Committee meetings
City Manager, Alfonso Noyola reported out from the Rent Ad Hoc Committee meeting, stated there will be a recommendation bringing forward at a future council meeting, likely in January to extend the 90-Day-Morotorium for the Rent Control Ad Hoc Committee to be able to work and finalize a policy for the Council to review and adopt.

13. WAIVER OF FULL READING OF RESOLUTIONS AND ORDINANCES Motion: Council Member Lomelí motioned to waive full reading of resolutions and ordinances, seconded by Vice Mayor Gonzalez. Motion passed 4-0-1 by the following roll call vote:

AYES: Lozoya, Lomelí, Gonzalez, and Alcantar
NOES: None
ABSENT: Guerrero
ABSTAIN: None

14. CONSENT CALENDAR
A. Approval of the Local Agency Investment Fund (LAIF) for the Month of October 2022 Recommendation: The City Council is requested to approve the Local Agency Investment Fund (LAIF) Report for the month of October 2022 in the amount of $11,261,389.49.

B. Approval of the City Demands and Payroll Including Statement of Investment for the Month of October 2022

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Recommendation: The City Council is requested to approve the Demands and Payroll in the amount of $3,914,418.49 including the Statement of Investments for the month of October 2022.

C. Informational Item-ARPA Utilization Plan Monthly Report (October 2022) Recommendation: The City Council is requested to receive and file the ARPA Utilization Plan Monthly Report for the month of October 2022.

D. Consideration to Review and Approve the Draft of Minutes of November 15, 2022, for the Regular Meeting of the City Council and the Joint Meeting of the City of Cudahy as Successor Agency and Housing Successor Agency to the Cudahy Development Commission
Recommendation: The City Council is requested to review and approve the City Council/ Successor Agency Draft Minutes for November 15, 2022.

E. Consideration to Adopt Resolution No. 22-67 Amending the City’s Conflict of Interest Code and Repealing Resolution No. 20-39 In Accordance with the Political Reform Act
Recommendation: The City Council is requested to adopt Resolution No. 22-67, amending the City’s Conflict of Interest Code repealing Resolution No. 20-39 in accordance with the Political Reform Act.

F. Adoption of Proposed Resolution No. 22-68 Proclaiming a Local Emergency, Ratifying the Proclamation of a State of Emergency by Governor Newsom on March 4, 2020, and Re-Authorizing Remote Teleconference Meetings of the City Council, City Boards, and all Commissions of the City of Cudahy, for the Period from December 6, 2022, through January 5, 2023, Pursuant to Brown Act Provisions Recommendation: The Council is requested to approve proposed Resolution No. 22-68 proclaiming a local emergency, ratifying the proclamation of a State Emergency by Governor Newson on March 4, 2020, and re-authorizing remote teleconference meetings of the City Council, City Boards, and all Commissions of the City of Cudahy, for the period from December 6, 2022, through January 5, 2023, pursuant to Ralph M. Brown Act provisions.

G. Approve the 2019, 2020, and 2021 General Plan Annual Progress Reports Required by the State of California, Reporting Period January 1, 2019 – December 31, 2019, Reporting Period January 1, 2020 – December 31, 2020, and Reporting Period January 1, 2021 – December 31, 2021
Recommendation: The City Council is requested to: 1. Adopt a resolution approving the 2019 General Plan Annual Progress Report (APR); 2. Adopt a resolution approving the 2020 General Plan Annual Progress Report (APR); 3. Adopt a resolution approving the 2021 General Plan Annual Progress Report (APR); 4. Authorize staff to file the 2019,

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2020, and 2021 annual reports with the Governor’s Office of Planning and Research (OPR) and the California Department of Housing and Community Development (HCD).

Motion: Vice Mayor Gonzalez motioned to approve Consent Calendar items with a correction on item 14E to change Resolution 22-39 to 20-39, seconded by Council Member Lozoya. Motion passed 4-0-1 by the following roll call vote:

AYES: Lozoya, Lomelí, Gonzalez, and Alcantar
NOES: None
ABSENT: Guererro
ABSTAIN: None

15. PUBLIC HEARING
A. Adoption of Proposed Ordinance No. 729 Amending Chapters 15.04, 15.08, 15.12,

15.16, 15.29, 15.32 and15.34 of Title 15 of the Cudahy Municipal Code and Adopt Titles 26, 27, 28, 29, 30, 31, and 33 of the 2022 Los Angeles County Amendments to the 2022 Edition of the California Building Codes Including the Building, Residential, Plumbing, Mechanical, Electrical, Green Building Standards and Existing Building Codes
Presented by the Community Development Director
Recommendation: Staff recommends that the City Council of the City of Cudahy (the “City”): 1. Open the public hearing to receive comments on the proposed Ordinance No. 729, and then close the public hearing after receiving public comments; and 2. Consider Approving by first reading, attached Ordinance No. 729, amending Chapters 15.04 through 15.34 of the Cudahy Municipal Code to Adopt Titles 26, 27, 28, 29, 30, 31, and 33 of the 2022 Los Angeles County Amendments to the 2022 Edition of the California Building Codes.

At 7:51 p.m., Mayor Alcantar opened public comment, there being none, closed public comment.

Motion: Vice Mayor Gonzalez motioned to adopt Proposed Ordinance No. 729 Amending Chapters 15.04, 15.08, 15.12, 15.16, 15.29, 15.32 and 15.34 of Title 15 of the Cudahy Municipal Code and Adopt Titles 26, 27, 28, 29, 30, 31, and 33 of the 2022 Los Angeles County Amendments to the 2022 Edition of the California Building Codes Including the Building, Residential, Plumbing, Mechanical, Electrical, Green Building Standards and Existing Building Codes, seconded by Council Member Lozoya. Motion passed 4-0-1 by the following roll call vote:

AYES: Lozoya, Lomelí, Gonzalez, and Alcantar
NOES: None
ABSENT: Guerrero
ABSTAIN: None

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B. Resolution Approving the City’s Purchase and Sale Agreement for the Sale of Real Property at 8420 Atlantic Avenue (APNs 6224-034-014, 6224-034-032, 6224-034- 040, and 6224-034-041) with Prima Development and finding the action is categorically exempt from CEQA review pursuant to the infill exemption Presented by the Community Development Director
Community Development Director noted a correction in the staff report referencing the project as a senior housing facility which was an error in the report; it should have referenced the project as mixed-use, residential, and commercial.

Recommendation: Staff recommends that the City Council of the City of Cudahy (the “City”): Adopt the Resolution approving the City’s Purchase and Sale Agreement (“PSA”), with the corrections as noted to sell the real property located at 8420 Atlantic Avenue, Cudahy, California with the following Los Angeles County Assessor Parcel Numbers:
6224-034-014, 6224-034-032, 6224-034-040, and 6224-034-041, in order to allow for the development of a mixed-use project (“Project”).

At 7:57 p.m., Mayor Alcantar opened public comment, there being none, closed public comment.

Motion: Council Member Lozoya motioned to adopt Resolution No. 22-72 Adopt the Resolution approving the City’s Purchase and Sale Agreement (“PSA”), with the corrections as noted to sell the real property located at 8420 Atlantic Avenue, Cudahy, California with the following Los Angeles County Assessor Parcel Numbers: 6224-034- 014, 6224-034-032, 6224-034-040, and 6224-034-041, in order to allow for the development of a mixed-use project (“Project”), seconded by Vice Mayor Gonzalez.

Motion passed 4-0-1 by the following roll call vote:

AYES: Lozoya, Lomelí, Gonzalez, and Alcantar
NOES: None
ABSENT: Guerrero
ABSTAIN: None

16. BUSINESS SESSION
A. Approval of Professional Services Agreement to Provide Design Phase Engineering Services for the Cudahy Park Renovation Project
Presented by the Management Analyst
Recommendation: The City Council is requested to award a Professional Services Agreement (PSA) to Willdan Engineering Inc. to provide design phase engineering services for the preparation of PS&E (Plan, Specifications, and Estimates) for the Cudahy Park Renovation Project, not to exceed $318,900.

Motion: Council Member Lomelí motioned to award a Professional Services Agreement (PSA) to Willdan Engineering Inc. to provide design phase engineering services for the

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preparation of PS&E (Plan, Specifications, and Estimates) for the Cudahy Park Renovation Project, not to exceed $318,900, seconded by Vice Mayor Gonzalez. Motion passed 4-0-1 by the following roll call vote:

AYES: Lozoya, Lomelí, Gonzalez, and Alcantar
NOES: None
ABSENT: Guerrero
ABSTAIN: None
B. Approval of Professional Services Agreement to Provide Services to Complete the 6th Cycle Housing Element
Presented by the Community Development Director
Recommendation: The City Council is requested to award a Professional Services Agreement (PSA) to The Arroyo Group for the Completion of the 6th Cycle Housing Element, not to exceed $80,000.

Motion: Council Member Lomelí motioned to award a Professional Services Agreement (PSA) to The Arroyo Group for the Completion of the 6th Cycle Housing Element, not to exceed $80,000, seconded by Vice Mayor Gonzalez. Motion passed 4-0-1 by the following roll call vote:

AYES: Lozoya, Lomelí, Gonzalez, and Alcantar
NOES: None
ABSENT: Guerrero
ABSTAIN: None
C. Adoption of a Proposed Resolution No. 22-73, A Resolution of the City Council of the City of Cudahy Amending the Classification Plan for City Employees Presented by the Human Resources Manager
Recommendation: The City Council is requested to: 1. Approve Resolution No. 22-73, of the City Council of the City of Cudahy amending the Classification Plan for City employees; and 2. Authorize the recruitment and hiring of the new Senior Planner position.

Motion: Council Member Lomelí motioned to approve Resolution No. 22-73, of the City Council of the City of Cudahy amending the Classification Plan for City employees; and authorize the recruitment and hiring of the new Senior Planner position, seconded by Council Member Lozoya. Motion passed 4-0-1 by the following roll call vote:

AYES: Lozoya, Lomelí, Gonzalez, and Alcantar
NOES: None
ABSENT: Guerrero
ABSTAIN: None

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D. Approval of Professional Services Agreement for Remote and On-site Translation Services
Recommendation: City Council is requested to award a Professional Services Agreement (PSA) to Language Network to provide remote and on-site translation services not to exceed $18,000.
- ITEM TABLED TO DATE UNCERTAIN -
E. Consideration to Amend Agreement Between the City and the Los Angeles Neighborhood Land Trust (LANLT) Regarding the Development and Construction of Improvements to Certain Existing or New Parks in the City Presented by the Parks and Recreation Manager
Recommendation: The City Council is requested to amend an Agreement between the City and the Los Angeles Neighborhood Land Trust (LANLT) to develop and construct improvements for Existing or new Parks in the city.

Motion: Council Member Lozoya motioned to amend an Agreement between the City and the Los Angeles Neighborhood Land Trust (LANLT) to develop and construct improvements for Existing or new Parks in the city, seconded by Vice Mayor Gonzalez.

Motion passed 4-0-1 by the following roll call vote:

AYES: Lozoya, Lomelí, Gonzalez, and Alcantar
NOES: None
ABSENT: Guerrero
ABSTAIN: None
F. Adoption of Proposed Resolution 22-74 Rescinding Prior City Council Resolution 20-15 Approving Development Review Permit No. 41-532 to Permit Construction and Operation of a 67,148 Square Foot Charter School on a 2.2-Acre Site at 7801- 7835 Otis Ave., Cudahy, California Pursuant to Writ Issued by the Court in Cudahy Alliance for Justice et al. v. City of Cudahy et al., Los Angeles County Superior Court Case No. 20STCP03621
Presented by the City Attorney
Recommendation: The City Council is requested to approve proposed Resolution 22- 74, rescinding prior City Council Resolution No. 20-15, which approved the construction and operation of a 67,148 square foot charter school on a 2.2- acre project site at 7801- 7835 Otis Ave. The Superior Court overturned the approval and ordered the City to rescind its approvals.

At 8:14 p.m., Vice Mayor Gonzalez recused himself and left the meeting.

Motion: Council Member Lomelí motioned to approve proposed Resolution 22-74, rescinding prior City Council Resolution No. 20-15, which approved the construction and

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operation of a 67,148 square foot charter school on a 2.2- acre project site at 7801-7835 Otis Ave. The Superior Court overturned the approval and ordered the City to rescind its approvals, seconded by Mayor Alcantar. Motion passed 3-0-2 by the following roll call vote:

AYES: Lozoya, Lomelí, and Alcantar
NOES: None
ABSENT: Guerrero
ABSTAIN: Gonzalez (recused)

17. COUNCIL DISCUSSION – NONE

18. ADJOURNMENT
Council Member Lomelí motioned to adjourn the City Council / Agency meeting at 8:18 p.m., seconded by Mayor Alcantar. Motion passed 3-0-2 by the following roll call vote:

AYES: Lozoya, Lomelí, and Alcantar
NOES: None
ABSENT: Guerrero and Gonzalez
ABSTAIN: None

Elizabeth Alcantar
Mayor
ATTEST:

Richard Iglesias
City Clerk

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Attachment
C

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“Serving The People” "Sirviendo A La Comunidad"
Staff Report
01/17/2023 Page 1 of 3

STAFF REPORT
Date: January 17, 2023
To: Honorable Mayor/Chair and City Council/Agency Members From: Alfonso Noyola, City Manager/Executive Director
By: City Attorney’s Office
Subject: Adoption of Proposed Resolution No. 23-01 Proclaiming a Local Emergency, Ratifying the Proclamation of a State of Emergency by Governor Newsom on March 4, 2020, and Re-Authorizing Remote Teleconference Meetings of the City Council, City Boards, and all Commissions of the City of Cudahy, for the Period from January 17, 2023, through February 16, 2023, Pursuant to Brown Act Provisions

RECOMMENDATION
The City Council is requested to approve proposed Resolution No. 23-01 proclaiming a local emergency, ratifying the proclamation of a State of Emergency by Governor Newsom on March 4, 2020, and re-authorizing remote teleconference meetings of the City Council, City Boards, and all Commissions of the City of Cudahy, for the period from January 17, 2023, through February 16, 2023, pursuant to Ralph M. Brown Act provisions.

BACKGROUND
COVID-19 (also known as the “Coronavirus Disease”) is a respiratory disease that was first reported in China in December 2019, has now spread throughout the state of California, including through the City of Cudahy (“City”). On March 4, 2020, Governor Gavin Newsom declared a State of Emergency in response to the rising cases of COVID-19 throughout the state of California. On the same day as Governor Newsom’s declaration, the Los Angeles County Board of Supervisors and Los Angeles County Department of Public Health (“LACDPH”) declared a local emergency and local public health emergency in response to the spread of COVID-19 throughout the County. On April 10, 2020, in response to the conditions of extreme peril to the safety of persons within the City, the Cudahy City Council (“City Council”) declared a local emergency consistent with the declaration of local emergency by the LACDPH.

Item Number
14E

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“Serving The People” "Sirviendo A La Comunidad"
Staff Report
01/17/2023 Page 2 of 3

On September 16, 2021, Governor Newsom signed into law Assembly Bill No. 361 (“AB 361”), which, until January 1, 2024, authorizes a local agency to use teleconferencing without complying with the teleconferencing requirements imposed by the Brown Act when a legislative body of a local agency holds a meeting during a declared State of Emergency, as that term is defined, when state or local health officials have imposed or recommended measures to promote social distancing or when the legislative body has determined that meeting in person would present imminent risks to the health or safety of attendees.

Currently, the state-declared emergency remains in effect. LACDPH has issued a series of Health Officer Orders containing mandates and recommendations for keeping individuals safe, reducing risk, and preventing the spread of COVID-19. The most recent Health Order by the LACDPH, effective as of September 23, 2022, outlines the County’s current guidelines to continue to ensure the reduction in the transmission risk of COVID-19 and protect those persons at elevated risk for severe health outcomes due to COVID-19 infection.

On December 20, 2022, the City Council adopted Resolution No. 22-75, proclaiming a local emergency, ratifying the proclamation of a State of Emergency by Governor Newsom on March 4, 2020, and re-authorizing remote teleconference meetings of the City Council, City Boards, and all Commissions of the City, for the period from December 20, 2022, through January 19, 2023.

ANALYSIS
AB 361 requires legislative bodies that hold teleconferenced meetings under its abbreviated teleconferencing procedures to give notice of the meeting and post agendas, as described, to allow members of the public to access the meeting and address the legislative body, to give notice of the means by which members of the public may access the meeting and offer public comment, including an opportunity for all persons to attend via a call-in option or an internetbased service option, and to conduct the meeting in a manner that protects the statutory and constitutional rights of the parties and the public appearing before the legislative body. AB 361 also requires the legislative body take no further action on agenda items when there is a disruption which prevents the public agency from broadcasting the meeting, or in the event of a disruption within the local agency’s control which prevents members of the public from offering public comments, until public access is restored. AB 361 prohibits the legislative body from requiring public comments to be submitted in advance of the meeting and specifies that the legislative body must provide an opportunity for the public to address the legislative body and offer comments in real time. AB 361 prohibits the legislative body from closing the public comment period and the opportunity to register to provide public comment, until the public comment period has elapsed or until a reasonable amount of time has elapsed, as specified.

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Staff Report
01/17/2023 Page 3 of 3

All City Council, Board, and Commission meetings are open and public, as required by the Brown Act, so that any member of the public may attend, participate, and watch the City Council or City Commission conduct their business. Given the County of Los Angeles is currently experiencing an increase of COVID-19 cases throughout the County, the City continues to recommend measures to promote social distancing which include requiring staff and civilians wear masks in City buildings as well as posting COVID-19 safety measures throughout City buildings and on the City’s social media accounts.

Once the initial authorizing resolution is adopted, as it was on October 5, 2021, ongoing authorization every thirty (30) days is required by majority vote. If the legislative body desires to continue using the teleconference exception, it must confirm the circumstances of the State of Emergency thirty (30) days after the first teleconference meeting and every thirty (30) days thereafter. Resolution Number 22-68 expires on January 5, 2022, staff recommends the City Council adopt the attached resolution before the existing resolution lapses.

CONCLUSION
In light of the continuing State declaration of emergency resulting from the COVID-19 pandemic and the imminent risks to the health and safety of attendees at meetings conducted in person due to the spread of COVID-19, staff recommends the City Council approve proposed Resolution No. 23-01 proclaiming a local emergency, ratifying the proclamation of a State of Emergency by Governor Newsom on March 4, 2020, and re-authorizing remote teleconference meetings of the City Council of the City of Cudahy, for the period from January 17, 2023, through February 16, 2023, pursuant to Ralph M. Brown Act provisions.

STRATEGIC PLAN CORRELATION
None.

FINANCIAL IMPACT
There is no financial impact on the City at this time.

ATTACHMENTS
A. Proposed Resolution No. 23-01

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1 RESOLUTION NO. 23-01

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

CUDAHY, CALIFORNIA PROCLAIMING A LOCAL

EMERGENCY, RATIFYING THE PROCLAMATION OF A

STATE OF EMERGENCY BY GOVERNOR NEWSOM ON
MARCH 4, 2020, AND RE-AUTHORIZING REMOTE

TELECONFERENCE MEETINGS OF THE CITY COUNCIL,

CITY BOARDS, AND ALL COMMISSIONS OF THE CITY OF
CUDAHY, FOR THE PERIOD FROM JANUARY 17, 2023,
THROUGH FEBRUARY 16, 2023, PURSUANT TO BROWN

ACT PROVISIONS
WHEREAS, COVID-19 (also known as the “Coronavirus Disease”) is a respiratory disease that was first reported in China in December 2019, it has now spread throughout the state of California, including throughout the City of Cudahy (“City”); and WHEREAS, on March 4, 2020, Governor Gavin Newsom declared a State of Emergency in response to the rising cases of COVID-19 throughout the state of California; and
WHEREAS, on March 4, 2020, the Los Angeles County Board of Supervisors and Los Angeles County Department of Public Health (“LACDPH”) declared a local emergency and local public health emergency in response to the spread of COVID-19 throughout the County; and
WHEREAS, on March 17, 2020, Governor Newsom issued Executive Order N-29- 20, which allowed local governments meet remotely without adherence to the traditional teleconferencing rules set forth in the Ralph M. Brown Act (“Brown Act”), this waiver was extended through September 30, 2021, by Executive Order N-08-21; and WHEREAS, on April 10, 2020, in response to the conditions of extreme peril to the safety of persons within the City, the Cudahy City Council (“City Council”) declared a local emergency consistent with the declaration of local emergency by the LACDPH; and WHEREAS, on September 16, 2021, Governor Newsom signed into law Assembly Bill No. 361 (“AB 361”), which, until January 1, 2024, authorizes a local agency to use teleconferencing without complying with the teleconferencing requirements imposed by the Brown Act, when a legislative body of a local agency holds a meeting during a declared State of Emergency, as that term is defined, when state or local health officials have imposed or recommended measures to promote social distancing or when the legislative body has determined that meeting in person would present imminent risks to the health or safety of attendees; and
WHEREAS, the most recent Public Health Order (“Health Order”) by the LACDPH, effective as of September 23, 2022, outlines the County’s current guidelines to continue to ensure the reduction in the transmission risk of COVID-19 and protect those persons at elevated risk for severe health outcomes due to COVID-19 infection; and Attachment A Page 54 of 473
2 WHEREAS, the Health Order continues to strongly recommend masks for all persons, regardless of vaccine status, in indoor public settings and businesses; and WHEREAS, AB 361 requires legislative bodies that hold teleconferenced meetings under its abbreviated teleconferencing procedures to give notice of the meeting and post agendas, as described, to allow members of the public to access the meeting and address the legislative body, to give notice of the means by which members of the public may access the meeting and offer public comment, including an opportunity for all persons to attend via a call-in option or an internet-based service option, and to conduct the meeting in a manner that protects the statutory and constitutional rights of the parties and the public appearing before the legislative body; and
WHEREAS, AB 361 requires the legislative body take no further action on agenda items when there is a disruption which prevents the public agency from broadcasting the meeting, or in the event of a disruption within the local agency’s control which prevents members of the public from offering public comments, until public access is restored; and WHEREAS, AB 361 prohibits the legislative body from requiring public comments to be submitted in advance of the meeting and specifies that the legislative body must provide an opportunity for the public to address the legislative body and offer comment in real time; and
WHEREAS, AB 361 prohibits the legislative body from closing the public comment period and the opportunity to register to provide public comment, until the public comment period has elapsed or until a reasonable amount of time has elapsed, as specified; and WHEREAS, all City Council, Board, and Commission meetings are open and public, as required by the Brown Act, so that any member of the public may attend, participate, and watch the City Council or City Commission conduct their business; and WHEREAS, on October 5, 2021, the City Council adopted Resolution No. 21-35, proclaiming a local emergency, ratifying the proclamation of a State of Emergency by Governor Newsom on March 4, 2020, and authorizing remote teleconference meetings of the City Council, City Boards, and all Commissions of the City, for the period from October 5, 2021, through November 4, 2021, pursuant to Brown Act provisions; and WHEREAS, on November 2, 2021, the City Council adopted Resolution No. 21- 43, extending Resolution No. 21-35 an additional thirty (30) days through December 4, 2021, pursuant to Brown Act provisions; and WHEREAS, on November 16, 2021, the City Council adopted Resolution No. 21- 46, extending Resolution No. 21-43 through January 3, 2022, pursuant to Brown Act provisions; and
WHEREAS, on December 21, 2021, the City Council adopted Resolution No. 21- 51, extending Resolution No. 21-46 through January 20, 2022, pursuant to Brown Act provisions; and

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3 WHEREAS, on January 18, 2022, the City Council adopted Resolution No. 22-02, extending Resolution No. 21-51 through February 17, 2022, pursuant to Brown Act provisions; and
WHEREAS, on February 15, 2022, the City Council adopted Resolution No. 22- 07, extending Resolution No. 22-02 through March 17, 2022, pursuant to Brown Act provisions; and
WHEREAS, on March 15, 2022, the City Council adopted Resolution No. 22-11, extending Resolution No. 22-07 through April 14, 2022, pursuant to Brown Act provisions; and
WHEREAS, on April 5, 2022, the City Council adopted Resolution No. 22-13, extending Resolution No. 22-11 through May 5, 2022, pursuant to Brown Act provisions; and
WHEREAS, on May 3, 2022, the City Council adopted Resolution No. 22-19, extending Resolution No. 22-13 through June 2, 2022, pursuant to Brown Act provisions; and
WHEREAS, on May 17, 2022, the City Council adopted Resolution No. 22-21, extending Resolution No. 22-19 through June 16, 2022, pursuant to Brown Act provisions; and
WHEREAS, on June 7, 2022, the City Council adopted Resolution No. 22-25, extending Resolution No. 22-21 through July 7, 2022, pursuant to Brown Act provisions; and
WHEREAS, on June 21, 2022, the City Council adopted Resolution No. 22-36, extending Resolution No. 22-25 through July 21, 2022, pursuant to Brown Act provisions; and
WHEREAS, on July 19, 2022, the City Council adopted Resolution No. 22-41, extending Resolution No. 22-36 through August 18, 2022, pursuant to Brown Act provisions; and
WHEREAS, on August 16, 2022, the City Council adopted Resolution No. 22-48, extending Resolution No. 22-41 through September 15, 2022, pursuant to Brown Act provisions; and
WHEREAS, on September 6, 2022, the City Council adopted Resolution No. 22- 52, extending Resolution No. 22-48 through October 6, 2022, pursuant to Brown Act provisions; and
WHEREAS, on October 4, 2022, the City Council adopted Resolution No. 22-56, extending Resolution No. 22-52 through November 3, 2022, pursuant to Brown Act provisions; and

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4 WHEREAS, on November 1, 2022, the City Council adopted Resolution No. 22- 59, extending Resolution No. 22-56 through December 1, 2022, pursuant to Brown Act provisions; and
WHEREAS, on November 15, 2022, the City Council adopted Resolution No. 22- 62, extending Resolution No. 22-59 through December 15, 2022, pursuant to Brown Act provisions; and
WHEREAS, on December 6, 2022, the City Council adopted Resolution No. 22- 68, extending Resolution No. 22-62 through January 5, 2022, pursuant to Brown Act provisions; and
WHEREAS, on December 20, 2022, the City Council adopted Resolution No. 22- 75, extending Resolution No. 22-68 through January 19, 2023, pursuant to Brown Act provisions; and
WHEREAS, the City continues to recommend measures to promote social distancing which include requiring staff and civilians wear masks in City buildings as well as posting COVID-19 safety measures throughout City buildings and on the City’s social media accounts; and
WHEREAS, in light of the continuing State declaration of emergency resulting from the COVID-19 pandemic, the continuing recommendation by Los Angeles County Public Health officials for masking at indoor events and social distancing, and the imminent risks to the health and safety of attendees at meetings conducted in person due to the spread of COVID-19, the City Council desires to make the findings required by AB 361 to allow the City Council and all City Boards and Commissions to continue to meet under AB 361’s abbreviated teleconferencing procedures.

NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED BY THE CITY COUNCIL OF THE CITY OF CUDAHY, CALIFORNIA, AS FOLLOWS:

SECTION 1. The Recitals set forth above are true and correct and are incorporated into this Resolution by reference.

SECTION 2. The City Council finds that the State and County declarations of emergency in response to the COVID-19 pandemic remain in place.

SECTION 3. The City Council finds that local officials, specifically, the Los Angeles County Department of Public Health, continues to recommend social distancing and masks.

SECTION 4. The City of Cudahy staff along with the City Council are hereby authorized and directed to take all actions necessary to carry out the intent and purpose of this Resolution including, conducting open and public City Council and City Board and Commission meetings in accordance with the newly revised provisions of the Ralph M.

Brown Act.

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5 SECTION 5. If any section, subsection, sentence, clause, or phrase of this Resolution is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Resolution. The City Council hereby declares that it would have passed this Resolution and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of this Resolution would be subsequently declared invalid or unconstitutional.

SECTION 6. This Resolution shall take effect immediately upon adoption and shall be effective until the earlier of (i) February 16, 2023, or (ii) such time the City Council adopts a subsequent resolution in accordance with Government Code section 54953(e)(3) to extend the time during which the legislative bodies of the City of Cudahy may continue to teleconference without compliance with paragraph (3) of subdivision (b) of section 54953.

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Cudahy at the regular meeting of this 17th day of January 2023. ______________________________
Elizabeth Alcantar
Mayor
ATTEST:
____________________________
Richard Iglesias
City Clerk

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6 STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS:

CITY OF CUDAHY )
I, Richard Iglesias, City Clerk of the City of Cudahy, hereby certify that the foregoing Resolution No. 23-01 was passed and adopted by the City Council of the City of Cudahy, signed by the Mayor and attested by the City Clerk at a regular meeting of said Council held on the 17th day of January 2023 and that said Resolution was adopted by the following vote, to-wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

Richard Iglesias
City Clerk

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STAFF REPORT
Date: January 17, 2023
To: Honorable Mayor and City Council
From: Alfonso Noyola, City Manager
By: City Attorney’s Office
Subject: Receive and File Proposed Change to Staffing in City Attorney’s Office

RECOMMENDATION
It is staff’s recommendation that the City Council receive and file the proposed change in staffing with the City Attorney’s Office.

BACKGROUND/DISCUSSION
Olivarez Madruga Law Organization, LLP (“OMLO”) has served as the City Attorney for the City of Cudahy (“City”) since 2011, throughout this time various individuals have served as the City Attorney. Most recently, Mr. Victor Ponto has served as the City Attorney with Ms. Stephanie Arechiga as his Assistant City Attorney. Mr. Ponto will be moving on to assist with the firm in other areas, however, will continue to provide the City with specialized legal services relating to cannabis and successor agency matters. At this time, OMLO is recommending Stephanie Arechiga assume the role of City Attorney and Mr. Richard Padilla as Assistant City Attorney.

CONCLUSION
In light of the proposed staffing change from the City Attorney’s Office, staff is recommending the City Council receive and file the proposed change.

STRATEGIC PLAN CORRELATION
None.

Item Number
14F

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FINANCIAL IMPACT
Not applicable.

ATTACHMENT
None.

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STAFF REPORT
Date: January 17, 2023
To: Honorable Chair and Agency Members
From: Alfonso Noyola, City Manager/Executive Director
By: Joshua Calhoun, Finance Director
Subject: Approval of the Recognized Obligation Payment Schedule for the Fiscal Period of July 1, 2023 to June 30 2024 (ROPS 23-24)

RECOMMENDATION
The Successor Agency is requested to approve the Recognized Obligation Payment Schedule (ROPS) for the fiscal period of July 1, 2023 to June 30, 2024 (ROPS 23-24), for submission to the City of Cudahy Oversight Board.

BACKGROUND

1. On January 17, 2012, the City Council adopted Resolution No. 12-04 electing to serve as the Successor Agency to the Cudahy Community Development Commission.

2. On February 1, 2012, the former Cudahy Community Redevelopment Agency was dissolved pursuant to ABX1 26 (Stats 2011-12, 1st Ex Sess., Chapter 5), and collectively the AB X1 26, as amended by subsequent legislation, shall be referred to as the “State Redevelopment Dissolution Law.”

3. On February 1, 2012, the Successor Agency to the Community Development Commission of the City began performing its functions under the Dissolution Law, Parts 1.8 and 1.85 of the Health and Safety Code, as amended by Assembly Bill 1484 and other subsequent legislation (together, the “Dissolution Law”), to administer the enforceable obligations and otherwise unwind the former Agency’s affairs, all subject to the review and approval by the Oversight Board.

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changing the six-month ROPS submission schedule to an annual reporting process, beginning July 1, 2016.

5. On September 23, 2015, Governor Brown signed Senate Bill 107 into law to augment and expand the State Redevelopment Dissolution Law by imposing additional responsibilities on successor agencies and setting milestones for redevelopment dissolution, including a deadline of February 1, 2017 for the submission of future ROPS to State Department of Finance (DOF).

6. On January 15, 2021, the Successor Agency, pursuant to the Dissolution Law, approved ROPS 21-22 as it had passed all prior ROPS and thereafter submitted to DOF and approved.

Pursuant to Section 34 171(g) of Part 1.85, ROPS means the document setting forth the minimum payment amounts, and due dates of payments required by enforceable obligations for each fiscal period as provided in subdivision (m) of Section 34177.

ANALYSIS
AB X1 26 requires the Successor Agency to prepare a ROPS for each twelve-month period, beginning with the twelve-month period July 1, 2023 to June 30, 2024. The ROPS serves as an invoice between the Successor Agency and the Los Angeles County Auditor-Controller (County) and dictates how much former property tax increment will be released by the County for the twelve-month period to the Successor Agency to pay for enforceable obligations. Only payments listed on the ROPS may be made by the Successor Agency during this period.

Currently, the Successor Agency’s sources of revenue available to pay for costs listed on the approved ROPS include Former Tax Increment, now held by the County in the Redevelopment Property Tax Trust Fund (RPTTF).

Attachment A reflects the twelve-month estimated payment obligations for the Successor Agency in the online format provided by the DOF. The ROPS 23-24 will be submitted to the County, State Controller's Office (SCO) and the DOF by February 1, 2023, the statutory deadline.

CONCLUSION
It is recommended that the Successor Agency approve ROPS 23-24 for submission to the Oversight Board meeting on January 24, 2023, to ensure a timely submission of ROPS 23-24. If the Successor Agency does not approve the ROPS 23-24 and accordingly would not allow the Oversight Board the opportunity to approve the ROPS 23-24 and submit ROPS 23-24 by February 1, 2023 the Successor Agency will be fined a civil penalty of $10,000 per day for the

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failure to submit on time.

STRATEGIC PLAN CORRELATION
Goal (Financial Stability and Transparency)
• Provide regular updates to the City Council and Community about the City’s finances.

FINANCIAL IMPACT
The Proposed Recognized Obligation Payment Schedule (ROPS 23-24) will approve the RPTTF to provide the funds necessary to make payments on the debt.

ATTACHMENT
A. Proposed Recognized Obligation Payment Schedule (ROPS 23-24) – ROPS Detail

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Successor Agency: Cudahy
County: Los Angeles
A Enforceable Obligations Funded as Follows (B+C+D) $ 745,000 - $ 745,000 B Bond Proceeds - - -
C Reserve Balance 745,000 - 745,000
D Other Funds - - -
E Redevelopment Property Tax Trust Fund (RPTTF) (F+G) $ 1,206,230 1,052,294 2,258,524 F RPTTF 1,081,230 927,294 2,008,524
G Administrative RPTTF 125,000 125,000 250,000
H Current Period Enforceable Obligations (A+E) $ 1,951,230 1,052,294 $ 3,003,524 Certification of Oversight Board Chairman:

Name Title
/s/ Signature Date
Pursuant to Section 34177 (o) of the Health and Safety
code, I hereby certify that the above is a true and
accurate Recognized Obligation Payment Schedule for
the above named successor agency.
23-24A Total
(July -
December)
23-24B Total
(January -
June)
ROPS 23-24
Total
Recognized Obligations Payment Schedule (ROPS 23-24) - Summary Filed for the July 1, 2023 through June 30, 2024 Period Current Period Requested Funding for Enforceable
Obligations (ROPS Detail)
Attachment A Page 66 of 473

CITY OF CUDAHY
Recognized Obligation Payument Schedule (ROPS 23-24) - ROPS Detail July 1, 2023 through June 30, 2024

B C D E F G H I J K L MN O P Q R STU V W
Bond
Proceeds
Reserve
Balance
Other
Funds
RPTTF Admin
RPTTF
Bond
Proceeds
Reserve
Balance
Other
Funds
RPTTF Admin
RPTTF
$11,324,165 $3,214,754 0 $0 0 $1,081,230 $1,081,230 $2,162,460 - - - 927,294 125,000 $1,052,294 8 Fiscal Agent Fees Fees 10/28/
1999
10/01/2027 The Bank of
New York Mellon Trust Company, N.A.

Annual fiscal agent fees for bonds issues and Arbitrage Calculations Citywide 18,000 N $2,500 - - - - - 0 - - - 2,500 - $2,500 9 Bond Disclosure
Services
Fees 06/27/
2011
03/31/2027 HdL Coren &
Cone
Annual continuing disclosure for bond issues
Citywide 14,700 N $1,200 - - - - - 0 - - - 1,200 - $1,200 13 City
Reimbursement
City/County Loan
(Prior 06/28/11),Other
06/07/2005
07/02/2048 City of
Cudahy
Loan Repayment Citywide 524,916 N 524,916 - - - 524,916 - 524,916 - -- - - 0 17 County Deferral Miscellaneous 09/08/
1981
09/08/2034 Los Angeles
County Taxing Entities
In accordance with the deferral provisions of the contractual agreement with the County and the Community Development Commission of the City of Cudahy Citywide 814,878 N $- - - - - - 0 - -- - - 0
18 County Deferral Miscellaneous 12/14/
1992
07/13/2034 Los Angeles
County Taxing Entities
In accordance with the deferral provisions of the contractual agreement with the County and the Community Development Citywide 526,484 N $- - - - - - 0 - -- - - 0
23 Administrative
Reimbursement
RPTTFShortfall
02/01/2012
07/02/2048 City of
Cudahy
Loan to cover shortfall in Administrative Expense
Citywide - N $- - - - - - 0 - -- - - 0
24 Successor
Agency Admin. Cost
Admin Costs 07/01/
2022
06/30/2023 Various Greater of 3% or
$250,000
Citywide 250,000 N 250,000 - - - - 125,000 125,000 - - - - 125,000 125,000 52 Taxable Tax
Allocation Refunding Bonds, Series 2018
Bonds Issued After 12/31/10
09/25/2018
10/01/2027 The Bank of
New York Mellon Trust Company, N.A.

Refunding of multiple bond issues
Citywide 9,175,187 N 1,851,305 - 0 - 923,730 - 923,730 - - - 923,594 - 923,594 22-23ATotal
ROPS 22-23B (Jan - Jun) 22-23B
Total Fund Sources Fund Sources
ROPS 22-23A (Jul - Dec)
Description Project Area Total Outstanding Obligation Retired ROPS 22-23 Total Payee Item # Project Name Obligation Type Agreement Execution Date Agreement Termination Date

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CITY OF CUDAHY
Recognized Obligation Payument Schedule (ROPS 23-24) - ROPS Detail July 1, 2023 through June 30, 2024

B C D E F G H I J K L MN O P Q R STU V W
Bond
Proceeds
Reserve
Balance
Other
Funds
RPTTF Admin
RPTTF
Bond
Proceeds
Reserve
Balance
Other
Funds
RPTTF Admin
RPTTF
22-23ATotal
ROPS 22-23B (Jan - Jun) 22-23B
Total Fund Sources Fund Sources
ROPS 22-23A (Jul - Dec)
Description Project Area Total Outstanding Obligation Retired ROPS 22-23 Total Payee Item # Project Name Obligation Type Agreement Execution Date Agreement Termination Date 53 Legal Counsel Legal 06/22/
2015
06/30/2016 Olivarez
Madruga Lemieux O'Neill
Compensation Agreements
- N $- - - - - - 0 - -- - - 0
54 Property
Maintenance
Property Maintenance
09/13/2009
06/30/2023 TBD Health and
Safety - removal of unauthorized person/ persons.Repair and maintenance. - N $- - - - - - 0 - -- - - 0

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AB C

D E F G H
Reserve Balance Other Funds RPTTF
Bonds issued
on or before
12/31/10
Bonds issued
on or after
01/01/11
Prior ROPS RPTTF
and Reserve
Balances retained
for future period(s)
Rent, grants, interest, etc.

Non-Admin and Admin
1 Beginning Available Cash Balance (Actual 07/01/19) RPTTF amount should exclude "A" period distribution amount.
2,205 2,535,965 901,458 608,308 10,502
2 Revenue/Income (Actual 06/30/20)
RPTTF amount should tie to the ROPS 19-20 total distribution from the County Auditor-Controller 0 0 0 0 2,216,231
3 Expenditures for ROPS 19-20 Enforceable Obligations (Actual 06/30/20)
0 0 0 0 2,085,390
4 Retention of Available Cash Balance (Actual 06/30/20) RPTTF amount retained should only include the amounts distributed as reserve for future period(s) 2,205 2,535,965 901,458 608,308 141,343
5 ROPS 19-20 RPTTF Prior Period Adjustment
RPTTF amount should tie to the Agency's ROPS 19-20 PPA form submitted to the CAC 0 6 Ending Actual Available Cash Balance (06/30/20) C to F = (1 + 2 - 3 - 4), G = (1 + 2 - 3 - 4 - 5)
$- $- $- $- $-
No entry required
Cudahy
Recognized Obligaiton Payments Schedule (ROPS 23-24) - Report of Cash Balances July 1, 2023 through June 30, 2024 (Report Amounts in Whole Dollars) Pursuant to Health and Safety Code section 34177 (l), Redevelopment Property Tax Trust Fund (RPTTF) may be listed as a source of payment on the ROPS, but only to the extent no other funding source is available or when payment from property tax revenues is required by an enforceable obligation.

ROPS 19-20 Cash Balances (07/01/19 - 06/30/20)
Fund Sources
Comments
Bond Proceeds

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Item # Notes/Comments
8 9
13 17
18 23
24 52
53 54
55 56
Cudahy
Recognized Obligation Payment Schedule (ROPS 23-24) - Notes July 1, 2023 through June 30, 2024

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STAFF REPORT
Date: January 17, 2023
To: Honorable Chair and Agency Members
From: Alfonso Noyola, City Manager/Executive Director
By: Joshua Calhoun, Finance Director/Finance Officer
Subject: Consideration to Adopt Resolution No. SA 23-01 for Approval of the Administrative Budget for Fiscal Period of July 1, 2023 to June 30, 2024

RECOMMENDATION
The Successor Agency is requested to adopt a proposed Resolution No. SA 23-01 approving the Administrative Budget for the Recognized Obligation Payment Schedule (ROPS) for the fiscal period of July 1, 2023 to June 30, 2024 (ROPS 23-24).

BACKGROUND

1. On January 17, 2012, the City Council adopted Resolution No. 12-04 electing to serve as the Successor Agency to the Cudahy Community Development Commission.

3. On February 1, 2012, the State Redevelopment Dissolution Law requires the Successor Agency to prepare a proposed "Administrative Budget" for the period concurrent with the six-month fiscal period of each ROPS.

4. On June 27, 2012, Assembly Bill 1484 was signed into law to augment and expand the State Redevelopment Dissolution Law by clarifying agencies’ roles in the dissolution process and changing the six-month ROPS submission schedule to an annual reporting process, beginning July 1, 2016.

Item Number
14H

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6. On January 18, 2022, Successor Agency prepared and approved the Administrative Budget for the fiscal period July 1, 2022 through June 20, 2023.

ANALYSIS
The approved Administrative Budget, which pertains to the Successor Agency’s “Administrative Cost Allowance,” will be listed on ROPS 23-24 and accordingly will be considered an enforceable obligation. Only those enforceable obligations listed and approved on the ROPS may be paid by funds from the Redevelopment Property Tax Trust Fund (RPTTF).

Administrative Cost Allowance is paid to the Successor Agency by the State from property tax revenues allocated by the Los Angeles County Auditor-Controller. This allowance has a limit of up to a maximum of 3% of the property tax allocated for enforceable obligations, but not less than $250,000 for any fiscal year, unless the Oversight Board reduces this amount. The allowance sought by the Successor Agency for such allowance through its proposed Administrative is $250,000.

Successor Agency staff have prepared and now submit to the Successor Agency the Administrative Budget for the period of July 1, 2023 to June 30, 2024 (Exhibit A to Resolution).

Pursuant to Section 34177(j), an Administrative Budget is to include all of the following: (a) estimated amounts of the Successor Agency’s administrative costs for the upcoming twelvemonth fiscal period (July 1, 2023 to June 30, 2024); (b) the proposed sources of payment for the costs identified in (a); and (c) proposals for arrangements for administrative and operations services provided by the City to the Successor Agency.

Under the State Redevelopment Dissolution Law, each ROPS includes a line item for the Successor Agency’s Administrative Budget for the applicable period and requires that the ROPS 23-24 be approved by the Successor Agency and Oversight Board and submitted to the State Department of Finance (DOF) as a part of the ROPS 23-24 by February 1, 2023. The ROPS is subject to review by the Oversight Board, DOF, and the County-Auditor Controller. If the DOF approves the ROPS enforceable obligations, the County-Auditor Controller allocates and remits funds from the RPTTF to be used for payments of the enforceable obligations listed on the ROPS.

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CONCLUSION
If approved, the Administrative Budget will be submitted to the Oversight Board for review and approval at a regular meeting on January 24, 2023. Under Section 4177(k), the Successor Agency would then provide to the County of Los Angeles Auditor-Controller (County) the administrative cost estimates from the approved Administrative Budget that are to be paid from property tax revenues deposited into the Redevelopment Property Tax Trust Fund for such fiscal period.

STRATEGIC PLAN CORRELATION
Goal (Financial Stability and Transparency)
• Provide regular updates to the City Council and Community about the City’s finances.

FINANCIAL IMPACT
The Successor Agency will be reimbursed up to $250,000 for expenses and costs related to the dissolution of the former Cudahy Community Development Commission for the fiscal period of July 1, 2023 to June 30, 2024, if approved by the Oversight Board, and the State Department of Finance.

ATTACHMENT
A. Proposed Resolution No. SA 23-01 with Exhibit “A” – Cudahy Successor Agency Administrative Budget

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RESOLUTION NO. SA 23-01

A RESOLUTION OF THE SUCCESSOR AGENCY TO THE FORMER

CUDAHY REDEVELOPMENT AGENCY (CUDAHY COMMUNITY

DEVELOPMENT COMMISSION) APPROVING AN ADMINISTRATIVE
BUDGET FOR THE PERIOD JULY 1, 2023 THROUGH JUNE 30, 2024 PURSUANT TO HEALTH AND SAFETY CODE SECTION 34177 AND

TAKING CERTAIN ACTIONS IN CONNECTION THEREWITH
A. Pursuant to Part 1.85 of the Community Redevelopment Law (commencing with Health and Safety Code Section 34170) (“Part 1.85”), the Successor Agency to the former Cudahy Redevelopment Agency (Cudahy Community Development Commission) (“Successor Agency”) is required to undertake a number of actions related to winding down the affairs of the former Cudahy Redevelopment Agency (the “Former Redevelopment Agency”) pursuant to Health and Safety Code Section 34177(h).

B. In connection with the administration and operations of the Successor Agency, the Successor Agency is and will be utilizing the staff, facilities, and other resources of the City of Cudahy. The City Manager of the City serves as Executive Director of the Successor Agency, the Finance Director serves as Finance Officer of the Successor Agency, and the City Clerk or Deputy City Clerk serves as Secretary to the Successor Agency. Planning, finance, engineering, public works, legal and other City departments devote and are expected to devote substantial time with respect to the administration and operations of the Successor Agency, including gathering information relating to the Former Redevelopment Agency’s enforceable obligations, conferring with public officials representing governmental agencies, and undertaking other activities in connection with administration and operations of the Successor Agency.

C. Pursuant to Health and Safety Code Section 34171(d)(1)(F), contracts or agreements necessary for the administration or operation of the Successor Agency are enforceable obligations and pursuant to Health and Safety Code Sections 34178(a) and 34180(h), and the Successor Agency may enter into agreements with the City with the approval of the Oversight Board for the Successor Agency (the “Oversight Board”).

D. Pursuant to Health and Safety Code Section 34177(j), the Successor Agency is required to prepare a proposed administrative budget for each fiscal period and submit each proposed administrative budget to the Oversight Board for its approval. Each proposed administrative budget shall include all of the following: (1) estimated amounts for Successor Agency administrative costs for the applicable fiscal period; (2) proposed sources of payment for the costs identified in (1); and (3) proposals for arrangements for administrative and operations services provided by the City or another entity.

E. Pursuant to Health and Safety Code Section 34177(k), the Successor Agency is required to provide administrative cost estimates, from its approved administrative budget that are to be paid from property tax revenues deposited in the Redevelopment Property Tax Trust Fund, to the County Auditor-Controller for each applicable twelve-month fiscal period.

F. Staff of the Successor Agency seeks the Successor Agency’s approval of the administrative budget for the period beginning on July 1, 2023 through June 30, 2024 (“Administrative Budget 23-24”), in the form attached to this Resolution as Exhibit “A”, and the Successor Agency’s authorization to submit the approved Administrative Budget 23-24 to the Oversight Board for its approval and to forward the information required by Health and Safety Code 34177(k) to the County Auditor-Controller.

G. Administrative Budget 23-24 has been prepared in accordance with Health and Safety Code Section 34177(j) and is consistent with the requirements of the Health and Safety Attachment A Page 74 of 473
Resolution No. SA 23-01

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Code and other applicable law. The proposed source of payment of the costs set forth in Administrative Budget 23-24 is property taxes from the Redevelopment Property Tax Trust Fund of Los Angeles County established for the Successor Agency.

H. The activity proposed for approval by this Resolution is not a “project” for purposes of the California Environmental Quality Act (‘CEQA”), as that term is defined by CEQA Guidelines Section 15378, because the activity approved by this Resolution is an organizational or administrative activity that will not result in a direct or indirect physical change in the environment, in accordance with CEQA Section 15378(b)(5) of the Guidelines.

NOW, THEREFORE, THE SUCCESSOR AGENCY TO THE CUDAHY

REDEVELOPMENT AGENCY (CUDAHY COMMUNITY DEVELOPMENT COMMISSION) DOES HEREBY RESOLVE, FIND, DETERMINE AND ORDER AS FOLLOWS:

Section 1. The above recitals are true and correct and are a substantive part of this Resolution.

Section 2. This Resolution is adopted pursuant to the provisions of Part 1.85.

Section 3. The Successor Agency hereby approves the proposed administrative budget for the twelve-month fiscal period commencing July 1, 2023 and ending June 30, 2024 attached hereto as Exhibit “A” and incorporated herein by reference.

Section 4. The officers and staff of the Successor Agency are hereby authorized and directed, jointly and severally, to do any and all things which they may deem necessary or advisable to effectuate this Resolution, and any such actions previously taken by such officers and staff are hereby ratified and confirmed.

Section 5. The Successor Agency hereby determines that the activity approved by this Resolution is not a “project” for purposes of CEQA, as that term is defined by CEQA Guidelines Section 15378, because the activity approved by this Resolution is an organizational or administrative activity that will not result in a direct or indirect physical change in the environment, per Section 15378(b)(5) of the CEQA Guidelines.

PASSED, APPROVED, AND ADOPTED this 17th day of January 2023. ________________________________
Daisy Lomeli
Chair of the Successor Agency to the
Former Cudahy Redevelopment Agency
ATTEST:
_____________________________
Richard Iglesias
Secretary to the Successor Agency

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Resolution No. SA 23-01

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CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS:

CITY OF CUDAHY )
I, Richard Iglesias, Secretary to the Successor Agency, do hereby certify that the above and foregoing Resolution No. SA 23-01 was passed, approved, and adopted by the Successor Agency to the former Cudahy Community Development Commission/Redevelopment Agency of the City of Cudahy, signed by the Chair and attested by the Secretary to the Successor Agency at a meeting of said Successor held on this 18th day of January 2022, and that said Resolution was adopted by the following votes to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

Richard Iglesias
Secretary to the Successor Agency

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Resolution No. SA 23-01

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Exhibit “A”

SUCCESSOR AGENCY TO THE CUDAHY COMMUNITY DEVELOPMENT COMMISSION

ANNUAL & SIX-MONTH ADMINISTRATIVE BUDGETS
FISCAL YEAR 2024-24
Expense Category
Annual FY 2023-
24 Jul - Dec
2023
Jan - Jun
2024 Description
Personnel Expenses
City Manager / Executive
Director $ 37,850 $ 18,925 $ 18,925
City Manager's Office - Provide
direction to staff and consultants as
needed; reviews and oversees SA
administration.

City Clerk $ 10,000 $ 5,000 $ 5,000 City Clerk's Office - Provides assistance with Agenda Items
including but not limited to
Resolutions and recording of
documents.

Assistant City Clerk /
Secretary $ $ - $ -
Finance Director / Finance
Officer $ 55,050 $ 27,525 $ 27,525
Finance Department - Process
payment of enforceable obligations;
maintain documentation of SA
records; coordinate with consultants
to answer questions and provide
documentation as needed for
reporting preparation and as
requested by the Oversight board,
County Auditor-Controller, and
DOF; administration and
implementation of SA wind-down
activities.

Senior Accountant and/or
Accounting Technician
$ 22,100 $ 11,050 $ 11,050
Personnel Costs Subtotal $ 125,000 $ 62,500 $ 62,500
Service expenses
Professional Services (HdL
Contract) $ 20,000 $ 10,000 $ 10,000
Prepare ROPS, PPA, staff reports
and resolutions for SA and OB;
coordinate and answer questions for
Oversight Board, County AuditorController, and DOF; monitor and project cash flow to ensure sufficient
revenues for obligations and inform
SA staff of expected revenues; other
SA services as needed.

Accounting and Auditing $ 10,000 $ 5,000 $ 5,000 Audits and other financial services as needed.

Legal Services $ 93,500 $ 46,750 $ 46,750
Provide general legal services as
needed, review staff reports and
resolutions, other legal services as
needed.

Risk management/insurance $ -
Property maintenance $ -
Overhead & Department
Expenses $ 1,500 $ 750 $ 750 Office overhead, supplies, training, conferences, other SA expenses
Service Costs Subtotal $ 125,000 $ 62,500 $ 62,500
Total Expenses $ 250,000 $ 125,000 $ 125,000
Source of Repayment is Redevelopment Property Tax Trust Fund (RPTTF)

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Blank Page

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STAFF REPORT
Date: January 17, 2023
To: Honorable Mayor / Members of the City Council
From: Alfonso Noyola, City Manager / Executive Director By: Andres Rangel, Management Analyst
Subject: A Public Hearing to Consider and Adopt Resolution No. 23-02 of the City of Cudahy City Council Approving Projects / Programs to the City Council for Community Development Block Grant (CDBG) Funding During the Fiscal Year (FY) 2023-24

RECOMMENDATION
The City Council is requested to Adopt Resolution No. CDAB 23-02, recommending Projects/Programs to the City Council for the Community Development Block Grant (CDBG) Funding for Fiscal Year 2023-2024.

BACKGROUND

1. On January 3, 2023, the Los Angeles County Development Authority (LACDA) notified the City that its preliminary CDBG allocation for the 2022-2023 Fiscal Year was approximately $332,384.

2. On December 16, 2022, a public hearing notice was published in the Press Telegram to solicitsuggestions and recommendations for City Council consideration for the use of CDBG funds for FY 2023-2024.

ANALYSIS
The United States Department of Housing and Urban Development (HUD) administers the CDBG program. For funding eligibility, a city must submit an annual application to HUD.

Applications are submitted through the Los Angeles County Development Authority (LACDA).

Prior to each new fiscal year, the LACDA notifies the City of its final CDBG allocation for the Item Number
15A

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coming fiscal year. The LACDA also distributes the forms that the City must submit to receive these CDBG funds and conducts training sessions to prepare these forms.

In considering potential projects and programs for funding, it should be noted that up to fifteen percent (20%) of the coming year’s projected allocation, or $66,476.80, can be budgeted for public services. Administrative delivery services for the Housing Rehabilitation Programs are not to exceed twenty percent (20%) of their recommended budgets.

The primary national objectives of the CDBG program are to undertake activities that benefit low and moderate‐income persons and/or eliminate slum and blight conditions. The program requires that a minimum of seventy percent (70%) of the program funds be spent on activities that benefit low and moderate‐income persons (Attachment A ‐ 2022 HUD Income Limits).

ELIGIBLE ACTIVITIES FOR FUNDING
The types of activities that can be funded under the program include the following:
• Land acquisition and disposition;
• Development of, and improvements to, public facilities; • Street and other infrastructure improvements;
• Demolition and clearance of property improvements;
• Code Enforcement ;
• Public service activities;
• Housing and commercial rehabilitation;
• Economic development activities; and
• Program administration.

INELIGIBLE ACTIVITIES
There are certain activities or projects for which CDBG funds cannot be used. These ineligible activities include (Attachment B ‐ CDD HUD Codes and Definitions):
• Construction of city halls, county administrative buildings, or other facilities in which the legislative, judicial, or general administrative affairs of the government are conducted;
• Purchase of equipment, unless otherwise required for program purposes; • Operating and maintenance expenses;
• General government expenses; and
• Political activities.

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PROPOSED PROJECTS
• The CDBG Projects and Budgets being proposed to the City Council for the FY 2023-24 Program Year are as follows:

FY 2023-2024 CDBG
Project Name
FY 2022-2023 +
Carryover funds from
past FY
Funded/Approved
Budget
FY 2023-2024 Proposed CDBG
Budget
Non-Public Service Activities
Code Enforcement $215,000.00 $200,000.00
Business Assistance $43,403.00 $43,403.00
Clara St. Expansion Park
Restroom Improvements $250,000.00 -
Single Unit Housing
Rehabilitation $119,609.00 $22,505.00
Clara & Lugo Park
Marquee Installation
Project
$100,000.00 -
Subtotal Budget $728,012.00 $265,908
Public Service- Project Names 20% Cap
Renter Rights Services $20,000.00 *-
Graffiti Abatement $52,902.00 $52,902.00
Camp Commerce – New
Activity - $13,574.00
Subtotal Budget $72,902.00 $66,476.00
Grand Total $800,914.00 $332,384.00
*City has access to Renter Rights Services provided by the county through its year 1 PLHA funding.

The column on the left shows the originally allocated funds ($475,167) received in FY 2022-23 plus the allocation of unencumbered carryover funds from past fiscal years ($325,717), approved by Resolution No. 22-64. This led to FY 22-23’s final budget totaling $800,914.

Projects included funding for one time capital improvement projects such as Clara Park Restroom Improvements, Marquee Projects, and increasing funding for the Single Unit Housing Rehabilitation Program.

The column on the right is new projected funding from LACDA that we need to allocate for FY 2023-24. Such as the past fiscal year, any unencumbered funds from FY 22-23 will be reallocated via a substantial amendment for FY 23-24’s budget to either create new activities or increase funding for existing activities. Moreover, $332,384 is a projected allocation for FY

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23-24 provided from the County. Actual allocation may change. However, the LACDA mandates cities to adopt a budget by February 1, 2023.

ONGOING PROGRAMS/PROJECTS (funded in previous years)
• Business Assistance Program
Activity Summary – This continuing program assists existing/potential new business owners in retaining, expanding, or opening a business in the City of Cudahy. The program assists business owners with completing applications for permits, business licenses, and provides technical assistance through one‐to‐one consultations/trainings to address the needs of the City's business community. Some topics include but are not limited to business expansion plans, how to market your business, how to obtain a business loan, and how to strengthen your business. These services are provided to the business community by city staff, long‐time business owners, and commercial bank personnel.
• Code Enforcement Program Activity Summary – This continuing program assists in addressing the decline of residential and neighborhood commercial businesses that have been deemed deteriorating or deteriorated. These residential and neighborhood commercial businesses are located in the following designated areas: Census Tracts 5338.06, 5343.01, 5343.02, 5344.03, 5344.04, 5344.05, and 5344.06. This program together with the CDBG‐funded City program Single‐Unit Housing Rehabilitation is meant to prevent the decline of the area. The most common violations that will be addressed through this CDBG‐funded activity are: prohibited conditions, unsightliness, and building code violations.
• Single Unit Housing Rehabilitation Program Activity Summary – This continuing program offers grants (up to $20,000 each for single‐family home), below-market interest rate loans (no maximum amount, interest rates from 3% to 6%), and emergency grants (up to $1,500). This program may be used in combination and is designed to assist existing low‐to‐moderate-income households with the repair or rehabilitation of owner‐ occupied units.
• Graffiti Abatement Activity Summary – This program will operate in the City’s CDBG lowand moderate-income service areas throughout the city to remove graffiti from hardscape areas such as walls, sidewalks, street furniture, poles, and signs. Funds pay for staff, supplies, and material.

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NEW PROGRAMS/PROJECTS (funded in previous years)
• Camp Commerce Activity Summary – This program which provides youth and senior services by providing funding for enrollment fees for a summer camp for low-income Cudahy seniors and youth.

UNFUNDED (CDBG) PROGRAMS (funded in previous years)
• Clara St. Expansion Park Restroom Improvements – This program which was used to rehabilitate the restrooms at Clara Street Expansion Park will not receive additional funds due to being fully funded by last year’s allocation. • Clara & Lugo Park Marquee Installation Project - This program which was used to retro fit existing dysfunction marquee signs at Clara and Lugo Park to electronic LED marquee signs will not receive additional funds due to being fully funded by last year’s allocation. • Renter Rights Services – This program which will work with a housing rights provider who will assist low-income residents who are renters in navigating their rights as tenants, legal aid, and increasing housing stability, will be funded by utilizing county services the City has access to through its unclaimed PLHA funds.

CONCLUSION
Staff recommends that the City Council review and approve the projects / programs for Community Development Block Grant (CDBG) funding for Fiscal Year (FY) 2023-24 by adopting Resolution No. 23-02

STRATEGIC PLAN CORRELATION
Goal A

5. Pursue funding opportunities to assist Cudahy residents Goal B

3. Pursue grant opportunities as available to help residents with cash assistance or other needs.

FINANCIAL IMPACT
It is estimated that the CDBG funding allocation for FY 2023-24 will be approximately $332,384.00.

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ATTACHMENTS
A. 2022 Revised HUD Income Limits Guide
B. CDD HUD Codes and Definitions
C. Resolution No. 23-02 Recommending Projects / Programs for Community Development Block Grant Funding During the 2023- 24 Fiscal Year.

D. Notice of Public Hearing for the Community Development Block Program For the 2023-24 Year

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Select a different county or county equivalent in
California:

Inyo County
Kern County
Kings County
Lake County
Lassen County
Los Angeles County
Select county or county equivalent
Select any FY2022 HUD Metropolitan FMR Area's
Income Limits:

Los Angeles-Long Beach-Glendale, CA HUD Metro FMR Area
Select HMFA Income Limits Area
Or press below to start over and select a different
state:

FY 2022 Income Limits Documentation System
HUD.gov HUD User Home Data Sets Fair Market Rents Section 8 Income Limits MTSP Income Limits HUD LIHTC Database FY 2022 Income Limits Summary
Selecting any of the buttons labeled "Click for More Detail" will display detailed calculation steps for each of the various parameters.

FY 2022
Income
Limit Area
Median Family Income
Click for More Detail
FY 2022 Income Limit
Category
Persons in Family
1 2 3 4 5 6 7 8
Los
AngelesLong
BeachGlendale,
CA HUD
Metro
FMR
Area
$91,100
Very Low (50%) Income
Limits ($)
Click for More Detail
41,700 47,650 53,600 59,550 64,350 69,100 73,850 78,650 Extremely Low Income
Limits ($)*
Click for More Detail
25,050 28,600 32,200 35,750 38,650 41,500 44,350 47,200 Low (80%) Income
Limits ($)
Click for More Detail
66,750 76,250 85,800 95,300 102,950 110,550 118,200 125,800 NOTE: Los Angeles County is part of the Los Angeles-Long Beach-Glendale, CA HUD Metro FMR Area, so all information presented here applies to all of the Los Angeles-Long Beach-Glendale, CA HUD Metro FMR Area. HUD generally uses the Office of Management and Budget (OMB) area definitions in the calculation of income limit program parameters. However, to ensure that program parameters do not vary significantly due to area definition changes, HUD has used custom geographic definitions for the Los Angeles-Long Beach-Glendale, CA HUD Metro FMR Area.

The Los Angeles-Long Beach-Glendale, CA HUD Metro FMR Area contains the following areas: Los Angeles County, CA; * The FY 2014 Consolidated Appropriations Act changed the definition of extremely low-income to be the greater of 30/50ths (60 percent) of the Section 8 very low-income limit or the poverty guideline as established by the Department of Health and Human Services (HHS), provided that this amount is not greater than the Section 8 50% very low-income limit. Consequently, the extremely low income limits may equal the very low (50%) income limits.

Income Limit areas are based on FY 2022 Fair Market Rent (FMR) areas. For information on FMRs, please see our associated FY 2022 Fair Market Rent documentation system.

For last year's Median Family Income and Income Limits, please see here:

FY2021 Median Family Income and Income Limits for Los Angeles-Long Beach-Glendale, CA HUD Metro FMR Area Attachment A Page 85 of 473
A-1
Appendix A

CDBG MATRIX CODES
CDBG Matrix Codes by Category
Matrix codes are listed here by category so you can quickly review the available choices.

Acquisition, Disposition, Clearance, Relocation
01 Acquisition of Real Property 04A Cleanup of Contaminated Sites 02 Disposition of Real Property 08 Relocation
04 Clearance and Demolition
Administration and Planning
20 Planning 21E Submission of Applications for
20A Planning (State-Administered Federal Programs
CDBG Grantees) 21H CDBG Funding of HOME Admin
21A General Program Administration 21I CDBG Funding of HOME CHDO 21B Indirect Costs Operating Expenses
21C Public Information 21J State Administration
21D Fair Housing Activities (subject 14H Rehab: Administration to Admin cap)
Economic Development
14E Rehab: Publicly or Privately Owned 17D CI: Other Improvements Commercial/Industrial (CI) 18A ED: Direct Financial Assistance to 17A CI: Acquisition/Disposition For-Profits
17B CI: Infrastructure Development 18B ED: Technical Assistance 17C CI: Building Acquisition, Construction, 18C ED: Micro-Enterprise Assistance Rehabilitation
Housing
12 Construction of Housing 14G Rehab: Acquisition
13 Direct Homeownership Assistance 14H Rehab: Administration 14A Rehab: Single-Unit Residential 14I Lead-Based Paint/Lead Hazards 14B Rehab: Multi-Unit Residential Testing/Abatement
14C Rehab: Public Housing Modernization 14J Housing Services 14D Rehab: Other Publicly Owned 16A Residential Historic Preservation Residential Buildings 19E Operation/Repair of Foreclosed 14F Rehab: Energy Efficiency Improvements Property
Public Facilities and Infrastructure Improvements
03A Senior Centers 03L Sidewalks
03B Handicapped Centers 03M Child Care Centers
03C Homeless Facilities (not operating 03N Tree Planting costs) 03O Fire Stations/Equipment
03D Youth Centers 03P Health Facilities
03E Neighborhood Facilities 03Q Facilities for Abused and Neglected 03F Parks, Recreational Facilities Children
03G Parking Facilities 03R Asbestos Removal
03H Solid Waste Disposal Improvements 03S Facilities for AIDS Patients (not 03I Flood Drainage Improvements operating costs)
03J Water/Sewer Improvements 03 Other Public Facilities/Improvements 03K Street Improvements
Attachment B Page 86 of 473
Appendix A: CDBG Matrix Codes
A-2
Public Services
05A Senior Services 05N Services for Abused and Neglected 05B Handicapped Services 05O Mental Health Services
05C Legal Services 05P Screening for Lead Poisoning
05D Youth Services 05Q Subsistence Payments
05E Transportation Services 05R Homeownership Assistance (not 05F Substance Abuse Services direct)
05G Services for Battered and Abused 05S Rental Housing Subsidies Spouses 05T Security Deposits
05H Employment Training 05U Housing Counseling
05I Crime Awareness/Prevention 05V Neighborhood Cleanups 05J Fair Housing Activities (subject to 05W Food Banks
Public Services cap) 03T Operating Costs of Homeless/AIDS 05K Tenant/Landlord Counseling Patients Programs
05L Child Care Services 05 Other Public Services
05M Health Services
Repayment of Section 108 Loans
19F Planned Repayments of Section 108 19G Unplanned Repayments of Section Loans Loans
Other
06 Interim Assistance 19C Non-Profit Organization Capacity 07 Urban Renewal Completion Building
09 Loss of Rental Income 22 Unprogrammed Funds
11 Privately Owned Utilities 23 Tornado Shelters Serving Private 15 Code Enforcement Mobile Home Parks
16B Non-Residential Historic Preservation
Definitions of the matrix codes are provided in the table that follows.

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Appendix A: CDBG Matrix Codes
A-3

MATRIX CODE DEFINITIONS
Matrix codes are used to indicate—but do not establish—activity eligibility. An activity must be eligible in accordance with the regulations at 570.201–570.207. Grantees need to refer to the regulations to determine an activity’s eligibility; the codes defined below are used in IDIS OnLine chiefly to categorize activities for reporting purposes.

Code Definition
01 Acquisition of Real Property
Acquisition of real property that will be developed for a public purpose. Use code 01 for the CDBG-funded purchase of real property on which, for example, a public facility or housing will be constructed.

When CDBG funds are used to:
acquire a public facility that will be rehabilitated with CDBG funds and continue to be used as a public facility, assign the appropriate 03* code. acquire housing that will be rehabilitated, use code 14G. 02 Disposition of Real Property
Costs related to the sale, lease, or donation of real property acquired with CDBG funds or under urban renewal. These include the costs of temporarily maintaining property pending disposition and costs incidental to disposition of the property. 03A Senior Centers
Acquisition, construction, or rehabilitation of facilities (except permanent housing) for seniors.
03A may be used for a facility serving both the elderly and the handicapped provided it is not intended primarily to serve persons with handicaps. If it is, use 03B instead.

For the construction of permanent housing for the elderly, use code 12; for the rehabilitation of such housing, use the appropriate 14* code. 03B Handicapped Centers
Acquisition, construction, or rehabilitation of centers, group homes, and other facilities (except permanent housing) for the handicapped. 03B may be used for a facility serving both the handicapped and the elderly provided it is not intended primarily to serve the elderly. If it is, use 03A instead.

For the construction of permanent housing for the handicapped, use code 12; for the rehabilitation of such housing, use the appropriate 14* code. 03C Homeless Facilities (not operating costs)
Acquisition, construction, or rehabilitation of temporary shelters and transitional housing for the homeless, including battered spouses, disaster victims, runaway children, drug offenders, and parolees.

For the construction of permanent housing for the homeless, use code 12; for the rehabilitation of such housing, use the appropriate 14* code.

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Appendix A: CDBG Matrix Codes
A-4
Code Definition
03D Youth Centers
Acquisition, construction, or rehabilitation of facilities intended primarily for young people age 13 to 19. These include playground and recreational facilities that are part of a youth center.

For the acquisition, construction or rehabilitation of facilities intended primarily for children age 12 and under, use 03M; for facilities for abused and neglected children, use 03Q.
03E Neighborhood Facilities
Acquisition, construction, or rehabilitation of facilities that are principally designed to serve a neighborhood and that will be used for social services or for multiple purposes (including recreation). Such facilities may include libraries and community centers.
03F Parks, Recreational Facilities
Development of open space areas or facilities intended primarily for recreational use. 03G Parking Facilities
Acquisition, construction, or rehabilitation of parking lots and parking garages. Also use 03G if the primary purpose of rehabilitating a public facility or carrying out a street improvement activity is to improve parking.

If parking improvements are only part of a larger street improvement activity, use 03K.
03H Solid Waste Disposal Improvements
Acquisition, construction or rehabilitation of solid waste disposal facilities. 03I Flood Drainage Improvements
Acquisition, construction, or rehabilitation of flood drainage facilities, such as retention ponds or catch basins. Do not use 03I for construction/rehabilitation of storm sewers, street drains, or storm drains.

Use 03J for storm sewers and 03K for street and storm drains. 03J Water/Sewer Improvements
Installation or replacement of water lines, sanitary sewers, storm sewers, and fire hydrants. Costs of street repairs (usually repaving) made necessary by water/sewer improvement activities are included under 03J.

For water/sewer improvements that are part of:
more extensive street improvements, use 03K (assign 03K, for example, to an activity that involves paving six blocks of Main Street and installing 100 feet of new water lines in one of those blocks).
a housing rehabilitation activity, use the appropriate 14* matrix code.

For construction or rehabilitation of flood drainage facilities, use 03I.

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Appendix A: CDBG Matrix Codes
A-5
Code Definition
03K Street Improvements
Installation or repair of streets, street drains, storm drains, curbs and gutters, tunnels, bridges, and traffic lights/signs. Also use 03K:
for improvements that include landscaping, street lighting, and/or street signs (commonly referred to as “streetscaping”).
if sidewalk improvements (see code 03L) are part of more extensive street improvements.
03L Sidewalks
Improvements to sidewalks. Also use 03L for sidewalk improvements that include the installation of trash receptacles, lighting, benches, and trees. 03M Child Care Centers
Acquisition, construction, or rehabilitation of facilities intended primarily for children age 12 and under. Examples are daycare centers and Head Start preschool centers.

For the construction or rehabilitation of facilities for abused and neglected children, use 03Q; for the construction or rehabilitation of facilities for teenagers, use 03D. 03N Tree Planting
Activities limited to tree planting (sometimes referred to as “beautification”).

For streetscape activities that include tree planting, use 03K; for sidewalk improvement activities that include tree planting, use 03L. 03O Fire Stations/Equipment
Acquisition, construction, or rehabilitation of fire stations and/or the purchase of fire trucks and emergency rescue equipment.
03P Health Facilities
Acquisition, construction, or rehabilitation of physical or mental health facilities.

Examples of such facilities include neighborhood clinics, hospitals, nursing homes, and convalescent homes.

Health facilities for a specific client group should use the matrix code for that client group. For example, use 03Q for the construction or rehabilitation of health facilities for abused and neglected children.
03Q Facilities for Abused and Neglected Children
Acquisition, construction, or rehabilitation of daycare centers, treatment facilities, or temporary housing for abused and neglected children.
03R Asbestos Removal
Rehabilitation of any public facility undertaken primarily to remove asbestos. 03S Facilities for AIDS Patients (not operating costs)
Acquisition, construction, or rehabilitation of facilities for the treatment or temporary housing of people who are HIV positive or who have AIDS.

For the construction or rehabilitation of facilities for AIDS education and prevention, use 03P.

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Appendix A: CDBG Matrix Codes
A-6
Code Definition
03T Operating Costs of Homeless/AIDS Patients Programs
Costs associated with the operation of programs for the homeless or for AIDS patients, such as staff costs, utilities, maintenance, and insurance.

Because payment of operating costs for these programs is a public service under CDBG, all CDBG expenditures for 03T activities are included in the calculation of the Public Services cap.
03 Other Public Facilities and Improvements
Do not use this code unless an activity does not fall under a more specific 03* code.

Also, do not use one activity for multiple facilities and then assign it an 03 because the types of facilities are different.

One legitimate use of 03 is for activities that assist persons with disabilities by removing architectural barriers from or providing ADA improvements to government buildings (activities that otherwise would not be eligible for CDBG funding). 04 Clearance and Demolition
Clearance or demolition of buildings/improvements, or the movement of buildings to other sites.
04A Cleanup of Contaminated Sites
Activities undertaken primarily to clean toxic/environmental waste or contamination from a site.
05A Senior Services
Services for the elderly. 05A may be used for an activity that serves both the elderly and the handicapped provided it is not intended primarily to serve persons with handicaps. If it is, use 05B instead.
05B Handicapped Services
Services for the handicapped, regardless of age.
05C Legal Services
Services providing legal aid to low- and moderate-income (LMI) persons.

If the only legal service provided is for the settlement of tenant/landlord disputes, use 05K.
05D Youth Services
Services for young people age 13 to 19 that include, for example, recreational services limited to teenagers and teen counseling programs. Also use 05D for counseling programs that target teens but include counseling for the family as well.

For services for children age 12 and under, use 05L; for services for abused and neglected children, use 05N.
05E Transportation Services
General transportation services.

Transportation services for a specific client group should use the matrix code for that client group. For example, use 05A for transportation services for the elderly.

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Appendix A: CDBG Matrix Codes
A-7
Code Definition
05F Substance Abuse Services
Substance abuse recovery programs and substance abuse prevention/education activities. If the services are provided for a specific client group, the matrix code for that client group may be used instead. For example, substance abuse services that target teenagers may be coded either 05D or 05F.
05G Services for Battered and Abused Spouses
Services for battered and abused spouses and their families.

For services limited to abused and neglected children, use 05N. 05H Employment Training
Assistance to increase self-sufficiency, including literacy, independent living skills, and job training.

For activities providing training for permanent jobs with specific businesses, use 18A. 05I Crime Awareness/Prevention
Promotion of crime awareness and prevention, including crime prevention education programs and paying for security guards.
05J Fair Housing Activities (subject to Public Services cap) Fair housing services (e.g. counseling on housing discrimination) that meet a national objective.

For fair housing services activities carried out as part of general program administration (and thus not required to meet a national objective), use 21D. 05K Tenant/Landlord Counseling
Counseling to help prevent or settle disputes between tenants and landlords. 05L Child Care Services
Services that will benefit children (generally under age 13), including parenting skills classes.

For services exclusively for abused and neglected children, use 05N. 05M Health Services
Services addressing the physical health needs of residents of the community.

For mental health services, use 05O.
05N Services for Abused and Neglected Children
Daycare and other services exclusively for abused and neglected children. 05O Mental Health Services
Services addressing the mental health needs of residents of the community. 05P Screening for Lead Poisoning
Activities undertaken primarily to provide screening for lead poisoning.

For lead poisoning testing/abatement activities, use 14I.

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Appendix A: CDBG Matrix Codes
A-8
Code Definition
05Q Subsistence Payments
One-time or short-term (no more than three months) emergency payments on behalf of individuals or families, generally for the purpose of preventing homelessness.

Examples include utility payments to prevent cutoff of service and rent/mortgage payments to prevent eviction.
05R Homeownership Assistance (not direct)
Homeowner downpayment assistance provided as a public service. If housing counseling is provided to those applying for downpayment assistance, the counseling is considered part of the 05R activity.

Assistance provided under 05R must meet the low/mod housing national objective.

Therefore, unless the assistance is provided by a CBDO in an NRSA, it is subject to the public service cap and only low/mod households may be assisted. If the assistance is provided by a CBDO in an NRSA, the housing units for which CDBG funds are obligated in a program year may be aggregated and treated as a single structure for purposes of meeting the housing national objective (that is, only 51% of the units must be occupied by LMI households).

For more extensive types of homeownership assistance provided under authority of the National Affordable Housing Act, use code 13.
05S Rental Housing Subsidies
Tenant subsidies exclusively for rental payments for more than three months.

Activities providing this form of assistance must be carried out by CBDOs. 05T Security Deposits
Tenant subsidies exclusively for payment of security deposits. 05U Housing Counseling
Housing counseling for renters, homeowners, and/or potential new homebuyers that is provided as an independent public service (i.e., not as part of another eligible housing activity).
05V Neighborhood Cleanups
One-time or short-term efforts to remove trash and debris from neighborhoods.

Examples of legitimate uses of this code include neighborhood cleanup campaigns and graffiti removal.
05W Food Banks
Costs associated with the operation of food banks, community kitchens, and food pantries, such as staff costs, supplies, utilities, maintenance, and insurance. 05 Other Public Services
Do not use this code for public services activities unless an activity does not fall under a more specific 05* code.

An example of a legitimate use of this code is referrals to social services.

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Appendix A: CDBG Matrix Codes
A-9
Code Definition
06 Interim Assistance
Only for activities undertaken either to:
Make limited improvements (e.g., repair of streets, sidewalks, or public buildings) intended solely to arrest further deterioration of physically deteriorated areas prior to making permanent improvements. Alleviate emergency conditions threatening public health and safety, such as removal of tree limbs or other debris after a major storm. 07 Urban Renewal Completion
Completion of urban renewal projects funded under Title I of the Housing Act of 1949.

Do not use code 07 for a downtown renewal, downtown development, or urban renewal activity unless the activity will result in the closing out of a federallyapproved urban renewal project. 08 Relocation
Relocation payments and other assistance for permanently or temporarily displaced individuals, families, businesses, non-profit organizations, and farms. 09 Loss of Rental Income
Payments to owners of housing for loss of rental income due to temporarily holding rental units for persons displaced by CDBG-assisted activities. 11 Privately Owned Utilities
Acquisition, reconstruction, rehabilitation, or installation of distribution lines and facilities of federally regulated, privately owned utilities. This includes placing new or existing distribution lines/facilities underground.
12 Construction of Housing
Construction of housing with CDBG funds must be carried out by CBDOs, in accordance with the regulations at 570.204(a).
13 Direct Homeownership Assistance
Homeownership assistance to LMI households as authorized under 105(a)(24).

Forms of assistance include subsidizing interest rates and mortgage principal, paying up to 50% of downpayment costs, paying reasonable closing costs, acquiring guarantees for mortgage financing from private lenders, and financing the acquisition by LMI households of the housing they already occupy.

If housing counseling is provided to households receiving direct homeownership assistance, the counseling is considered part of the code 13 activity.

All recipients of assistance provided under matrix code 13 must be LMI. 14A Rehab: Single-Unit Residential
Rehabilitation of privately owned, single-unit homes.

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Appendix A: CDBG Matrix Codes
A-10
Code Definition
14B Rehab: Multi-Unit Residential
Rehabilitation of privately owned buildings with two or more permanent residential units.

For the rehabilitation of units that will provide temporary shelter or transitional housing for the homeless, use 03C.
14C Rehab: Public Housing Modernization
Rehabilitation of housing units owned/operated by a public housing authority (PHA). 14D Rehab: Other Publicly Owned Residential Buildings
Rehabilitation of permanent housing owned by a public entity other than a PHA.

For the rehabilitation of other publicly owned buildings that will provide temporary shelter or transitional housing for the homeless, use 03C. 14E Rehab: Publicly or Privately Owned Commercial/Industrial Rehabilitation of commercial/industrial property. If the property is privately owned, CDBG-funded rehab is limited to:
Exterior improvements (generally referred to as “facade improvements”). Correction of code violations
For more extensive rehabilitation of privately owned commercial/industrial property, use 17C; for infrastructure developments and improvements at commercial/industrial sites, use 17B.
14F Rehab: Energy Efficiency Improvements
Housing rehabilitation with the sole purpose of improving energy efficiency (e.g., a weatherization program).

For energy efficiency improvements to public housing units, use 14C; for other publicly owned residential buildings, use 14D.
14G Rehab: Acquisition
Acquisition of property to be rehabilitated for housing. 14G may be used whether CDBG funds will pay only for acquisition or for both acquisition and rehabilitation. 14H Rehab: Administration
All delivery costs (including staff, other direct costs, and service costs) directly related to carrying out housing rehabilitation activities. Examples include appraisal, architectural, engineering, and other professional services; preparation of work specifications and work write-ups; loan processing; survey, site and utility plans; application processing; and other fees.

Do not use 14H for the costs of actual rehabilitation and do not use it for costs unrelated to running a rehab program (e.g., tenant/landlord counseling).

For housing rehabilitation administration activities carried out as part of general program administration (and thus not required to meet a national objective), use code 21.
14I Lead-Based Paint/Lead Hazards Testing/Abatement
Housing rehabilitation activities with the primary goal of evaluating and reducing lead-based paint/lead hazards.

For lead-based paint/lead hazards screening, use 05P.

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Appendix A: CDBG Matrix Codes
A-11
Code Definition
14J Housing Services
Housing services in support of the HOME Program, eligible under 570.201(k). 15 Code Enforcement
Salaries and overhead costs associated with property inspections and follow-up actions (such as legal proceedings) directly related to the enforcement (not correction) of state and local codes.

For the correction of code violations, use the appropriate rehabilitation code. 16A Residential Historic Preservation
Rehabilitation of historic buildings for residential use. 16B Non-Residential Historic Preservation
Rehabilitation of historic buildings for non-residential use. Examples include the renovation of an historic building for use as a neighborhood facility, as a museum, or by an historic preservation society.
17A Commercial/Industrial: Acquisition/Disposition
Land acquisition, clearance of structures, or packaging of land for the purpose of creating industrial parks or promoting commercial/industrial development. 17A activities must be carried out by the grantee or by non-profits. 17B Commercial/Industrial: Infrastructure Development
Street, water, parking, rail transport, or other improvements to commercial/industrial sites. 17B also includes the installation of public improvements, such as the construction of streets to and through commercial/industrial areas. 17B activities must be carried out by the grantee or by non-profits.
17C Commercial/Industrial: Building Acquisition, Construction, Rehabilitation Acquisition, construction, or rehabilitation of commercial/industrial buildings. 17C activities must be carried out by the grantee or by non-profits. 17D Commercial/Industrial: Other Improvements
Commercial/industrial improvements not covered by other 17* codes. 17D activities must be carried out by the grantee or by non-profits.
18A Economic Development: Direct Financial Assistance to For-Profits Financial assistance to for-profit businesses to (for example) acquire property, clear structures, build, expand or rehabilitate a building, purchase equipment, or provide operating capital. Forms of assistance include loans, loan guarantees, and grants.

With one exception, a separate 18A activity must be set up for each business assisted. The exception is an activity carried out under 570.208(a)(4)(vi), for which job aggregation is allowed.
18B Economic Development: Technical Assistance
Technical assistance to for-profit businesses, including workshops, marketing, and referrals. Also use 18B for activity delivery costs eligible under 570.203(c).

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Appendix A: CDBG Matrix Codes
A-12
Code Definition
18C Economic Development: Micro-Enterprise Assistance
Financial assistance, technical assistance, or general support services to owners and developers of micro-enterprises. A micro-enterprise is a business with five or fewer employees, including the owner(s).

With one exception, a separate activity must be set up for each micro-enterprise assisted. The exception is an activity carried out under 570.208(a)(4)(vi), for which job aggregation is allowed.
19A Obsolete – use code 21H.
19B Obsolete – use code 21H.
19C CDBG Non-Profit Organization Capacity Building
Activities specifically designed to increase the capacity of non-profit organizations to carry out eligible neighborhood revitalization or economic development activities.

Such activities may include providing technical assistance and specialized training to staff.
19D CDBG Assistance to Institutes of Higher Education
Obsolete. Instead of using this matrix code, set the INSTITUTION OF HIGHER EDUCATION field to “yes” on the Add/Edit Subordinate Organization screen to indicate that the activity will be carried out by an institution of higher education. Then assign the appropriate matrix code based on the nature of the activity to be undertaken by the institution.
19E CDBG Operation and Repair of Foreclosed Property
Activities to prevent the abandonment and deterioration of housing acquired through tax foreclosure. These include making essential repairs to the housing and paying operating expenses to maintain its habitability.
19F Planned Repayments of Section 108 Loans
Repayments of principal for Section 108 loan guarantees. 19G Unplanned Repayments of Section 108 Loans
Unplanned repayments of principal for Section 108 loan guarantees. 20 Planning
Program planning activities, including the development of comprehensive plans (e.g., a consolidated plan), community development plans, energy strategies, capacity building, environmental studies, area neighborhood plans, and functional plans. 20A Program planning activities for when states award grants to units of general local government in which planning is the only activity, or in which planning activities are unrelated to any other activity funded as part of the grant. These are often referred to as “planning only grants” or “planning-only activities.”

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Appendix A: CDBG Matrix Codes
A-13
Code Definition
21A General Program Administration
Overall program administration, including (but not limited to) salaries, wages, and related costs of grantee staff or others engaged in program management, monitoring, and evaluation.

Also use 21A to report the use of CDBG funds to administer federally-designated Empowerment Zones or Enterprise Communities.

For CDBG funding of HOME admin costs, use 21H; for CDBG funding of HOME CHDO operating expenses, use 21I.
21B Indirect Costs
Costs charged under an indirect cost allocation plan.
21C Public Information
Providing information and other resources to residents and citizen organizations participating in the planning, implementation, or assessment of CDBG-assisted activities.
21D Fair Housing Activities (subject to Admin cap)
Fair housing activities carried out as part of general program administration rather than as a public service. They are subject to the Admin cap, but do not have to meet a national objective.

For fair housing activities carried out as a public service, use 05J. 21E Submission of Applications for Federal Programs
Preparation of (1) documents that must be submitted to HUD to receive CDBG funds or (2) applications to other federal programs for community development assistance. 21H CDBG Funding of HOME Admin
CDBG funding of administrative costs for HOME Program activities eligible under 570.206(i)(2).
21I CDBG Funding of HOME CHDO Operating Expenses
CDBG funding of CHDO operating expenses for HOME Program activities eligible under 570.206(i)(2).
21J State Program administration, including (but not limited to) salaries, wages, and related costs required for overall program management, coordination, monitoring, reporting, and evaluation. This category includes both the state’s costs of administering the CDBG program, as well as units of general local governments’ (and their subrecipients’) costs of administering grants awarded to them by the state. 22 Unprogrammed Funds
Identification of funds that are not yet programmed for use—e.g., reserve or contingency funds.
23 Tornado Shelters Serving Private Mobile Home Parks
Construction or improvement of tornado-safe shelters for residents of manufactured housing and the provision of assistance (including loans and grants) to nonprofit and for-profit entities, in accordance with Section 105(a)(24). {Note that two pars. 24 have been enacted.}

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RESOLUTION NO. CDAB 23-02

A RESOLUTION OF THE CITY OF CUDAHY CITY COUNCIL APPROVING

PROJECTS/PROGRAMS FOR COMMUNITY DEVELOPMENT BLOCK GRANT FUNDING DURING THE 2023-24 FISCAL YEAR
WHEREAS, on August 22, 1974, the President of the United States signed into law the Housing and Community Development Act of 1974 (Act); and WHEREAS, the primary goals of Title I of the Act are the development of viable urban communities by providing decent housing and a suitable living environment, and expanding economic opportunities, principally for persons of low and moderate income; and
WHEREAS, the City of Cudahy has received notification of the availability of $332,384 in federal Community Development Block Grant (CDBG) funds to further the attainment of these goals during Fiscal Year 2023-24; and
WHEREAS, the Cudahy City Council has published information regarding eligible activities under the Act and has conducted a public hearing to solicit suggestions from the community for the utilization of these funds.

NOW, THEREFORE, BE IT RESOLVED,
Section 1: The Cudahy City Council hereby allocates the City’s available CDBG funds for FY 2023-24 for the following purposes:

Single-Unit Housing Rehabilitation $ 22,505
Business Assistance Program $ 43,403
Code Enforcement $ 200,000
Camp Commerce $ 13,574
Graffiti Abatement $ 52,902
Grand Total $ 332,384
Section 2: The City Council authorizes City staff to adjust the Program budget as necessary throughout the Fiscal Year. This includes, but is not limited to, allocating amounts on a per project basis, adjust project budgets, implementing a new or cancelling existing activities, to allow for the timely expenditure of CDBG-funds.

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Cudahy at its regular meeting on this 17st day of January 2023.

Attachment C Page 99 of 473
Resolution 23-XX

Page 2 ends

Daisy Lomelí
Mayor
ATTEST:

Richard Iglesias
City Clerk

CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS:

CITY OF CUDAHY )
I, Richard Iglesias, City Clerk of the City of Cudahy, hereby certify that the foregoing Resolution No. 23-02 was passed and adopted by the City Council of the City of Cudahy, signed by the Mayor and attested by the City Clerk at a regular meeting of said Council held on the 17st day of January 2023, and that said Resolution was adopted by the following vote, to-wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

Richard Iglesias
City Clerk

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Attachment D Page 101 of 473

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“Serving The People” "Sirviendo A La Comunidad"
Staff Report
01/17/2023 Page 1 of 2

STAFF REPORT
Date: January 17, 2023
To: Honorable Mayor and City Council
From: Alfonso Noyola, City Manager
By: City Attorney
Subject: Consideration to Adopt a Proposed Urgency Ordinance of the City Council of the City of Cudahy Establishing an Interim Prohibition on Residential Rent Increases

RECOMMENDATION
It is staff’s recommendation that the City Council take one of the following actions:

1. Adopt Urgency Ordinance No. 731 extending the temporary prohibition on residential rent increases for a period of 90 additional days with the ability to extend further; or

2. Take no further action, thereby allowing the current rent increase moratorium to expire on January 18, 2023.

BACKGROUND/DISCUSSION
On September 20, 2022, the City Council adopted by second reading Ordinance No. 725, which temporarily froze residential rent increases for a 90-day period and created an Ad Hoc City Council subcommittee focusing on the issue. During the prescribed 90-day moratorium period, the Ad Hoc Rent Control subcommittee was requested to study the relevant issues pertaining to housing and rent control and make recommendations to the City Council. The rent increase moratorium from Ordinance No. 725 expires on Wednesday, January 18, 2023.

The Ad Hoc Rent Control subcommittee has met a period of three times during the 90-day moratorium and began collecting data as to the landscape of housing in Cudahy and discuss the various parameters that will be recommended to the City Council. The Ad Hoc Rent Control subcommittee has not yet finalized its recommendation for the Council and requires additional time to collect data.

Item Number
16A

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“Serving The People” "Sirviendo A La Comunidad"
Staff Report
01/17/2023 Page 2 of 2

Similar to Ordinance No. 725, the proposed Urgency Ordinance contains a petition process for landlords to undertake should they seek a residential rental rate increase during the 90-day moratorium period. A landlord may file a petition with the City’s Community Development Department if they contend that the moratorium will prevent them from receiving a fair and reasonable return with respect to the residential rental units they lease out. The tenant(s) shall be provided a copy of the petition and notice of the scheduled hearing before the City’s Hearing Officer. The tenant(s) and landlord can testify at the hearing, with a written decision subsequently issued. Parties can have the Hearing Officer’s written decision reviewed by the Superior Court.

Should the City Council adopt this Urgency Ordinance by a four-fifths vote as required pursuant to Government Code Section 36937(b), it will become effective immediately for a period of 90 days, expiring on April 17, 2023, by its terms, unless extended by City Council action.

CONCLUSION
This proposed Urgency Ordinance extends the temporary prohibition on residential rent increases for 90 days, as may be extended, to prevent exacerbating hardship and potential displacement for vulnerable households in the City, which could result from rent increases imposed before the possible enactment of a rent control ordinance. During the extension period, City staff will further study and analyze possible rent control and tenant protection programs in comparable jurisdictions, rental market analysis, program administration, staffing and costs, and work with the Ad Hoc Rent Controlsubcommittee to prepare a draft rent control ordinance for future consideration by the full City Council.

STRATEGIC PLAN CORRELATION
None.

FINANCIAL IMPACT
Not applicable.

ATTACHMENT
A. Urgency Ordinance No. 731

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1 URGENCY ORDINANCE NO. 731

AN UNCODIFIED URGENCY ORDINANCE OF THE CITY

COUNCIL OF THE CITY OF CUDAHY, CALIFORNIA

ESTABLISHING AN INTERIM PROHIBITION OF RENT

INCREASES ON CERTAIN RESIDENTIAL PROPERTIES
FOR NINETY (90) DAYS WITH THE ABILITY TO EXTEND

FURTHER
WHEREAS, the City of Cudahy (“the City”) is a general law city, incorporated under the laws of the State of California; and
WHEREAS, pursuant to its police power, the City may enact and enforce laws within its boundaries that promote the public health, morals, safety, or general welfare of the community, and are not in conflict with general laws; and WHEREAS, rents throughout Los Angeles County are continuing to rise despite the State’s Tenant Protection Act of 2019 (Tenant Protection Act), and as housing costs rise, many local residents continue to struggle with a decrease in affordability, housing insecurity, and potential homelessness, particularly low-income households and those persons who continue to be negatively impacted by the ongoing COVID-19 Pandemic; and
WHEREAS, Los Angeles County and the cities within the County are experiencing a housing affordability crisis, which is driving homelessness and displacement of residents; and
WHEREAS, many of the City’s renters are rent-burdened, paying over 30 percent of their income on rent, and some renters are severely rent-burdened, paying over 50 percent of their income on rent, which leaves less money for families to spend on other necessitates like food, healthcare, transportation, and education; and WHEREAS, housing displacement due to rent increases hinders residents from weathering and surviving through the ongoing COVID-19 Pandemic, including waves of infection, by preventing individuals from isolating as necessary at home due to infection or exposure; and
WHEREAS, there is an urgent need for the City to extend the temporary moratorium on rent increases to protect the health, safety, and welfare of its residents in light of the ongoing COVID-19 Pandemic, including the need to keep residents in their homes to isolate or shelter-in-place as necessary; and
WHEREAS, pandemic-related tenant protections under the County of Los Angeles and State of California are gradually phasing out; and
Attachment A Page 105 of 473
2 WHEREAS, current State law allows increasing annual rent of five percent (5%) plus the consumer price index (CPI), up to a maximum of ten percent (10%) for properties subject to the Tenant Protection Act of 2019; and
WHEREAS, this Urgency Ordinance is intended to extend the temporary prohibition on rent increases to protect tenants from rising rent costs while the City further considers and develops a permanent rent control program; and WHEREAS, failure to adopt this extension to the temporary moratorium may subject renters to economic hardship and potential displacement that may lead to homelessness to the detriment of the public health, safety and welfare; and WHEREAS, Government Code Sections 36934 and 36937 authorize the City to adopt an Urgency Ordinance for the immediate preservation of the public peace, health and safety, provided that such Urgency Ordinance is passed by a four-fifths vote of the City Council.

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

SECTION 1. Recitals. The recitals above are true and correct and incorporated herein by reference.

SECTION 2. Findings. Based on the findings set forth in the Recitals, the City Council finds and declares this Urgency Ordinance to be necessary for the immediate preservation of the public health, safety and welfare and upon that basis has determined that an urgency measure, pursuant to Government Code Section 36937(b) is warranted and shall take effect immediately upon adoption by a fourth-fifths vote of the City Council.

SECTION 3. Definitions. For the purposes of this Urgency Ordinance, the following definitions shall apply:

A. “Base Rent” means the monthly Rent that was in effect on January 17, 2022.

B. “Covered Rental Unit(s)” means any Rental Unit except for:
a. A dwelling unit which is alienable separate from the title to any other dwelling unit, or which is a subdivided interest in a subdivision, as specified in subdivision (b), (d), or (f) of Section 11004.5 of the Business and Professions Code;
b. A dwelling unit for which a certificate of occupancy was issued after February 1, 1995; or
c. Any other dwelling unit exempt from the Costa-Hawkins Rental Housing Act (California Civil Code Section 1954.52) or any other applicable state or federal law.

C. “Hearing Officer” means the person designated by the City Manager to conduct a review hearing under Section 7 of this Urgency Ordinance. The Hearing

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3 Officer shall not be the enforcement officer that investigated the matter under Section 7 of this Urgency Ordinance that is the subject of the administrative hearing or the immediate supervisor of that enforcement officer.

D. “Housing Services” means all services provided by the Landlord related to the use or occupancy of a Covered Rental Unit, including but not limited to, insurance, repairs, replacement, maintenance, painting, utilities, heat, water, elevator service, laundry facilities, recreational areas and/or pools, janitorial service, refuse removal, furnishings, parking, storage, and security services.

E. “Landlord” means an owner, lessor, or sublessor who receives or is entitled to receive Rent of the use and occupancy of any Covered Rental Unit or Rental Unit or portion thereof, and the representative, agent, or successor of such owner, lessor, or sublessor. For purposes of this Urgency Ordinance, a Landlord does not include an individual whose primary residence is the same Covered Rental Unit as the Tenant.

F. “Protection Period” means the time period commencing on the effective date of this Urgency Ordinance and shall terminate ninety (90) days thereafter on April 17, 2023, unless further extended or repealed by action of the City Council.

G. “Rent(s)” is the sum of all periodic payments and all nonmonetary consideration demanded or received by a Landlord from a Tenant for the use or occupancy of a Covered Rental Unit, including tenant’s access to and use of Housing Services. Rent includes without limitation, the fair market value of goods accepted, labor performed, or services rendered.

H. “Responsible Person” is a person responsible for, or alleged to be responsible for, a violation of this Urgency Ordinance.

I. “Tenant” means a person entitled, by written or oral agreement, or by sufferance, to the use or occupancy of any Covered Rental Unit or Rental Unit.

J. “Rental Unit(s)” means any dwelling units as defined in California Civil Code Section 1940, subsection (c), including joint living and work quarters used or occupied in consideration of payment of Rent. This definition applies to any dwelling space that is actually used for residential purposes, whether or not the residential use is legally permitted, including live-work spaces, mobile homes rented by the owner of a mobile home to a Tenant, and accessory dwelling units. For purposes of compliance with this Urgency Ordinance, Rental Unit does not mean any dwelling unit in which the Landlord or any member of his/her immediate family occupies one of the dwelling units on the property containing the Rental Unit and it is necessary for the Landlord or any member of his/her immediate family to use either a bathroom or kitchen facility common with the tenant.

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4 SECTION 4. Rent Increases Temporarily Prohibited. As of the effective date of this Urgency Ordinance, and through the Protection Period, a residential Landlord in the City of Cudahy shall not increase Rent for a Covered Rental Unit occupied by an existing Tenant whose tenancy began before or on January 17, 2022. A decrease in Housing Services is considered an increase in Rent. This Urgency Ordinance does not regulate the initial Rent at which a unit is offered.

SECTION 5. Exceptions and Exemptions. The following are exempt from this Urgency Ordinance:

A. Accommodations in motels, hotels, inns, tourist houses, rooming houses, and boarding houses, provided that such accommodations are not occupied by the same tenant for thirty (30) or more days;
B. Commercial units; and
C. Housing accommodation in any hospital, convent, monastery, extended care facility, convalescent home, nonprofit home for the aged, or dormitory operated by an educational institution.

SECTION 6. Enforcement. In any action by a Landlord to recover possession of a Covered Rental Unit, the Tenant may raise, as an affirmative defense, any violation or noncompliance with the provisions of this Urgency Ordinance.

SECTION 7. Petition for Relief.

A. Petition Process. If a Landlord desires to increase the rent for a Covered Rental Unit during the Protection Period and the Landlord contends that the prohibition on Rent increases in Section 4 will prevent the Landlord from receiving a fair and reasonable return with respect to the operation of the property containing the Covered Rental Unit, the Landlord may file a petition with the Community Development Department by requesting a hearing, which will be heard by a Hearing Officer appointed by the City Manager. The Landlord shall mail a copy of the petition by first class mail, postage prepaid, to all Tenants whose Rents are the subject of the petition within five (5) calendar days after the date the petition is filed. Within ten (10) calendar days after the date the petition is filed, the Landlord shall file a proof of service signed under penalty of perjury stating that a copy of the petition was mailed to all such Tenants. The petition shall include a statement indicating the basis on which the Landlord contends that the limitations of this Urgency Ordinance on Rent increases will prevent the Landlord from receiving a fair and reasonable return, together with any evidence that the Landlord wants the Hearing Officer to consider. The Landlord shall bear the burden of proving by a preponderance of the evidence at the hearing that because of the implementation of this Urgency Ordinance, the Landlord is unable to obtain a fair and reasonable return.

B. Hearing Process.

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5 i. A hearing before the Hearing Officer shall be set for a date no sooner than fifteen (15) days and no later than sixty (60) days after receipt of the request and proof of service on any request complying with the requirements of this Section 7, unless the Hearing Officer determines that good cause exists for an extension of time. The Hearing Officer shall send written notice to the Landlord and the Tenant of the date, time, and place set for the hearing. Upon receipt, the Landlord shall post such notice in a conspicuous place at the affected property including the Covered Rental Units that are the subject of the petition. Such notice shall be placed on a written instrument that is at least eleven (11) inches in width and seventeen (17) inches in length and shall be placed not less than four (4) feet above ground level in the common area, at the entry or entries to the building or units, or other similar location or locations as necessary to provide Tenants a reasonable opportunity to view the notice and be advised of the hearing. Within five (5) calendar days of receipt of the notice of hearing, the Landlord shall personally deliver a copy of the notice to each Tenant in the affected Covered Rental Units. ii. At the hearing the Landlord shall be given the opportunity to testify, call witnesses, and to present evidence concerning the petition. The Hearing Officer shall then hear testimony from the Tenants in the affected Covered Rental Units. The Hearing Officer may continue the hearing and request additional information from the Landlord or Tenant before issuing a written decision. The Hearing Officer shall have the power to issue orders to keep order and decorum during the hearing. All hearings conducted by the Hearing Officer shall be open to the public. iii. The Hearing Officer may, in his or her discretion, grant a continuance of the hearing date upon a request and a showing of good cause by the Landlord or Tenant. The request must be made in writing and be received by the Hearing Officer at least five (5) business days prior to the hearing date. In the instance of a Landlord's continuance request, the Landlord must personally deliver a copy of the request to the affected Tenant(s). In the instance of a Tenant's continuance request, the Tenant must personally deliver a copy of the request to the Landlord. In no event shall the continuance be longer than fifteen (15) calendar days from the originally scheduled hearing date.
iv. The cost of the hearing, including but not limited to a Hearing Officer’s fee, shall be borne by the petitioner.

C. Evaluation of Petitions. In evaluating the petitions from a Landlord or Tenant, the Hearing Officer shall consider all relevant factors that may potentially impact a Landlord's ability to obtain a fair and reasonable return and shall consider the basis for the calculation of any increase in Rent. Relevant factors may include, but are not limited to, changes in costs to the Landlord attributable to increased utility rates, trash collection rates, property taxes, insurance, advertising, variable mortgage interest rates, governmental assessments and fees, incidental services, employee costs, normal repair, maintenance,

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6 upgrading and addition of amenities or services, rent rolls, financial statements, expert analysis, and relevant studies.

D. Hearing Office Decision. After considering all the testimony and evidence submitted at the hearing, within twenty (20) calendar days after the conclusion of the hearing, the Hearing Officer shall issue a written decision denying, affirming or modifying the petition and shall adopt written findings in support of that decision. The written decision shall be served by first-class mail, postage prepaid on the Landlord and any Tenants in the affected Covered Rental Unit.

The Hearing Officer's decision shall be final.

E. Judicial Review of Hearing Officer Decision. Any person directly aggrieved by an administrative decision of a Hearing Officer pertaining to a Petition for Relief from this Urgency Ordinance may seek judicial review in the Superior Court pursuant to Government Code Section 53069.4 and/or Code of Civil Procedure Sections 1094.5 and 1094.6.

F. Timing of Petitions and Hearing. Any petition that is timely filed before the expiration of this Urgency Ordinance may continue to be adjudicated. Relief may be granted retroactively to the date the petition was filed.

SECTION 8. Inconsistent Provisions. Any provision of the Cudahy Municipal Code or appendices thereto that conflicts with the provisions of this Urgency Ordinance, to the extent of such conflict and no further, is hereby repealed or modified to the extent necessary to implement the provisions of this Urgency Ordinance.

SECTION 9. Severability. If any section, subsection, sentence, clause, or phrase of this Urgency Ordinance, or any part thereof, is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Urgency Ordinance or any part thereof. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase thereof, irrespective of the fact that any one or more section, subsection, subdivision, paragraph, sentence, clause, or phrase would be subsequently declared invalid or unconstitutional.

SECTION 10. Sunset Date. This Urgency Ordinance shall expire by its own terms on April 17, 2023, unless otherwise extended by action of the City Council.

SECTION 11. Compliance with California Environmental Quality Act. The City Council finds that this Urgency Ordinance is not subject to the California Environmental Quality Act pursuant to Section 15060(c)(2), constituting an activity that will not result in a direct or reasonably foreseeable indirect physical change in the environment, and pursuant to Section 15060(c)(3) constituting an activity that is not a project as defined in Section 15378.

SECTION 12. The City Clerk shall certify to the passage and adoption of this Urgency Ordinance and shall cause this Urgency Ordinance to be published or posted as

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7 required by law, which shall take full force and effect immediately upon its adoption by a four-fifths vote of the City Council for a period of 90 days, unless extended.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Cudahy at the regular meeting of this 17th day of January 2023.

Daisy Lomelí
Mayor
ATTEST:

Richard Iglesias
City Clerk

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8 STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS:

CITY OF CUDAHY )
I, Richard Iglesias, City Clerk of the City of Cudahy, hereby certify that the foregoing Urgency Ordinance No. 731 was introduced on the 17th day of January 2023 and adopted by said City Council at its regular meeting by the following vote, to-wit:

AYES:

NOES:

ABSTAIN:

ABSENT:

Richard Iglesias
City Clerk

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“Serving The People” "Sirviendo A La Comunidad"
Staff Report
01/17/2023 Page 1 of 3

STAFF REPORT
Date: January 17, 2023
To: Honorable Mayor/Chair and City Council/Agency Members From: Alfonso Noyola, City Manager/Executive Director
By: Joshua Calhoun, Finance Director
Subject: Receive and File of the FY 2021-22 Audited Financial Statements and Related Reports

RECOMMENDATION
The City Council is requested to receive and file the FY 2021-22 Audited Financial Statements and Related Reports.

BACKGROUND

1. The firm Vasquez & Company LLP was engaged on August 19, 2022, to perform an independent audit of the financial statements of the City for FY2021-22.

2. The firm completed the audit process and have issued related reports as of December 21, 2022.

ANALYSIS
The City’s independent auditor, Vasquez & Company LLP, have completed their annual audit of the City’s general ledger for the fiscal year ending June 30, 2021. The City’s annual financial statements were prepared by the audit firm in accordance with Generally Accepted Accounting Principals (GAAP), Government Auditing Standards, and comply with other rules and regulations applicable to government entities.

At the conclusion of the audit test work, the audit firm issues an opinion as to the fairness of presentation of the financial position of City activities. The City received an unmodified opinion from the independent auditors. An unmodified opinion is an independent auditor’s judgement that an organization’s financial records and statements are fairly and appropriately presented in accordance with GAAP. In addition, the audit firm is required to issue reports related to internal controls and communicate with the Council on how the audit was planned and conducted. All reports and letters are attached.

Item Number
16B

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“Serving The People” "Sirviendo A La Comunidad"
Staff Report
01/17/2023 Page 2 of 3
The financial statements consists of several parts: the basic financial statements which includes the government-wide financial statements, the fund financial statements, and notes to the financial statements. The required supplementary information provides additional financial information regarding the City not provided in the basic financial statements.

Additionally, the City was subject to a Single Audit for federal grant expenditures as expenditures were greater than $750,000. Based on the Independent Auditor’s Report for Each Major Federal Program on Internal Control over Compliance, and on the Schedule of Expenditures of Federal Awards Required by the Uniform Guidance, the City is in compliance with federal grants and received no comments for findings with respect to federal grant programs.

Within the auditor’s Letter of Comments to Management the auditors found no significant deficiencies or material weaknesses in the City’s internal controls. However, the auditors did identify one other deficiency in internal controls:

1. Year-End Closing Process
The Finance Department is in the process of addressing this deficiency. The Year-end Closing Process has been implemented and was a result of timing differences between the City’s Transit Fund audit and the City’s audit for FY2021.

CONCLUSION
The City’s financial statements are presented fairly and appropriately in accordance with GAAP.

STRATEGIC PLAN CORRELATION
Goal D (Financial Stability and Transparency), Objectives:

2. Provide regular updates to the City Council and community about the City’s finances.

4. Ensure internal financial controls are in place and regularly monitored.

FINANCIAL IMPACT
There is no fiscal impact associated with this report. Costs associated with the annual audit were included in the fiscal year 2021-22 adopted budget.

ATTACHMENTS
Attachment 1 – General Purpose Financial Statements as of and for the Year Ended June 30, 2022 with Independent Auditor’s Report
Attachment 2 – Auditor’s Communication with Those Charged with Governance Pursuant to

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“Serving The People” "Sirviendo A La Comunidad"
Staff Report
01/17/2023 Page 3 of 3
Statement on Auditing Standards 114
Attachment 3 – Letter of Comment to Management for Year Ended June 30, 2022 Attachment 4 – Single Audit Report Year Ended June 30, 2022 with Independent Auditor’s Report Attachment 5 – Independent Accountant’s Report on Agreed-upon Procedures Applied to Appropriations Limit Worksheet for Year Ended June 30, 2022

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City of Cudahy
General Purpose Financial Statements
As of and For the Year Ended June 30, 2022
with Independent Auditor’s Report
Attachment 1 Page 116 of 473

THIS PAGE INTENTIONALLY LEFT BLANK

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City of Cudahy
General Purpose Financial Statements
As of and For the Year Ended June 30, 2022
with Independent Auditor’s Report

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THIS PAGE INTENTIONALLY LEFT BLANK

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City of Cudahy
Table of Contents
PAGE

FINANCIAL SECTION
Independent Auditor’s Report 1
Basic Financial Statements
Government-wide Financial Statements
Statement of Net Position 5
Statement of Activities 6
Fund Financial Statements
Description of Major Funds 7
Balance Sheet 8
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position 9
Statement of Revenues, Expenditures and Changes in Fund Balances 10 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 11 Description of Fiduciary Funds 12
Statement of Fiduciary Net Position 13
Statement of Changes in Fiduciary Net Position 14
Notes to the Financial Statements 15
Required Supplementary Information
Budgetary Comparison Schedule
General Fund 51
American Rescue Plan Act (ARPA) 52
Housing Authority 53
Schedule of Proportionate Share of the Net Pension Liability 54 Schedule of Pension Contributions 55
Schedule of Changes in Net OPEB Liability and Related Ratios 56 Schedule of OPEB Contributions 57
Supplementary Information
Nonmajor Governmental Funds:

Description of Nonmajor Special Revenue Funds 58
Combining Balance Sheet 60
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 64
Budgetary Comparison Schedules – Nonmajor Special Revenue Funds Prop 1B Local Street Improvements 68
Proposition A 69

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City of Cudahy
Table of Contents
PAGE
Supplementary Information - Continued
Proposition C 70
Measure M 71
Measure R 72
Measure W 73
Air Quality Improvement (AQMD) 74
Recycling Conservation Grants 75
Community Oriented Policing Services (COPS) Grant 76
County Park Bond 77
TDA – Transportation Development 78
Street Lighting 79
Cal HOME 80
Development Impact Fees 81
Surface Transportation Program Local (STPL) 82
Other Grants 83
State Gas Tax 84
Community Development Block Grant (CDBG) 85

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1 Independent Auditor’s Report
The Honorable Mayor and the Members of the City Council City of Cudahy, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Cudahy, California (the City), as of and for the year ended June 30, 2022, and the related notes to financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Cudahy, California, as of June 30, 2022, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

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

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS and Government Auditing Standards, we:

• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for a reasonable period of time.

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3 We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Required Supplementary Information on pages 51 through 57 be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Management has omitted the management’s discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinions on the basic financial statements are not affected by this missing information.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining and individual fund financial statements and budgetary comparison schedules as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

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4 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 21, 2022, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance.

That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

Glendale, California
December 21, 2022

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City of Cudahy
Statement of Net Position
June 30, 2022
See notes to financial statements.
5 Governmental
Activities
ASSETS
Cash and investments $ 14,425,698
Receivables:

Accounts 1,139,545
Taxes 589,772
Notes, net 3,441,549
Interest 120,694
Prepaid expense 63,770
Due from other governments 2,819,103
Land held for resale 940,000
Advances to Successor Agency Private Purpose Trust Fund 524,916 Capital assets, net 18,995,211
Total assets 43,060,258
Deferred outflows related to pensions 430,475
Deferred outflows related to OPEB 198,147
Total deferred outflows of resources 628,622

LIABILITIES
Accounts payable and other current liabilities 1,925,639 Due to other governments 480,070
Noncurrent liabilities:

Due within one year 28,502
Due in more than one year 332,217
Net pension liability 2,544,002
Net OPEB liability 1,848,791
Total liabilities 7,159,221
Deferred inflows related to pensions 2,721,594
Deferred inflows related to OPEB 532,291
Total deferred inflows of resources 3,253,885

NET POSITION
Net investment in capital assets 18,995,211
Restricted 10,117,328
Unrestricted 4,163,235
Total net position $ 33,275,774

DEFERRED OUTFLOWS OF RESOURCES

DEFERRED INFLOWS OF RESOURCES

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City of Cudahy
Statement of Activities
Year ended June 30, 2022
See notes to financial statements.
6 Net (Expenses)
Revenues and
Changes in
Net Position
Operating Capital
Charges for Grants and Grants and Governmental
Functions/Programs Expenses Services Contributions Contributions Activities Primary government
Governmental activities:

General government $ 4,893,340 $ $ 981,017 4,072,340 $ - $ 160,017 Public safety 4,232,642 960,637 3,987,745 - 715,740
Community services 3,019,007 494,218 2,051,571 - (473,218) Community development 2,047,667 515,849 2,141,362 - 609,544 Total primary government $ 14,192,656 $ 2,951,721 $ 12,253,018 $ - 1,012,083 General revenues:

Property taxes 104,361
Sales and use taxes 2,894,943
Franchise and transfer taxes 372,282
Transient occupancy tax 102,617
Business license tax 67,450
Motor vehicle in lieu tax 140,207
Utility users tax 1,208,320
Investment income 42,576
Other revenue 686,001
Total general and other revenues 5,618,757
Change in net position 6,630,840
Net position, beginning of year, as restated 26,644,934 Net position, end of year $ 33,275,774
Program Revenues

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City of Cudahy
Description of Major Funds
Year ended June 30, 2022
7 General Fund - accounts for all general revenues of the City not specifically levied or collected for other City funds and for expenditures related to the rendering of general services by the City.

American Rescue Plan Act (ARPA) – accounts for funds received from the federal government to cover revenue short falls and COVID-19 related costs.

Housing Authority Special Revenue Fund - accounts for assets used for low-and-moderate income housing activities in accordance with the applicable housing-related regulations.

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City of Cudahy
Governmental Funds
Balance Sheet
June 30, 2022
See notes to financial statements.
8 Other
Housing Governmental
General ARPA Authority Funds Totals
ASSETS:

Cash and investments $ 4,856,273 $ - $ 842,945 $ 8,726,480 $ 14,425,698 Receivables:

Accounts 252,563 - - 731,364 983,927
Taxes 589,772 - - - 589,772
Grants - - - 152,754 152,754
Notes, net - - 3,063,354 378,195 3,441,549
Interest 5,627 - - 115,067 120,694
Other 2,864 - - - 2,864
Prepaid expenses 63,769 - - - 63,769
Due from other funds 2,961,789 - - - 2,961,789
524,916 - - - 524,916
Due from other governments - 2,819,103 - - 2,819,103
Land held for resale - - 940,000 - 940,000
$ 9,257,573 $ 2,819,103 $ 4,846,299 $ 10,103,860 $ 27,026,835 Accounts payable $ 1,050,293 $ - $ - $ $ 590,836 1,641,129 Refuse assesment payable 259,252 259,252
Deposits payable 25,257 - - - 25,257
Due to other governments - - - 480,070 480,070
Due to other funds - 2,156,185 - 805,604 2,961,789
Total liabilities 1,334,802 2,156,185 - 1,876,510 5,367,497 279,773 662,918 3,063,354 - 4,006,045
Prepaid expense 63,769 - - - 63,769
Advances to Private-Purpose Trust Fund 524,916 - - - 524,916 - - 1,782,945 8,334,383 10,117,328
7,054,313 - - (107,033) 6,947,280
Total fund balances 7,642,998 - 1,782,945 8,227,350 17,653,293 Total liabilities, deferred inflows of
$ 9,257,573 $ 2,819,103 $ 4,846,299 $ 10,103,860 $ 27,026,835

DEFERRED INFLOWS

OF RESOURCES

FUND BALANCES
resources and fund balances
Unavailable revenue
Total assets

LIABILITIES
Special revenue funds
Unassigned
Nonspendable
Restricted
Special Revenue
Advances to Successor Agency
Private Purpose Trust Fund
ASSETS

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City of Cudahy
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position
June 30, 2022
See notes to financial statements.
9 Fund balance of governmental funds $ 17,653,293
Amounts reported for governmental activities in the Statement of Net Position are different because:

Capital assets, net of depreciation, of governmental activities are not financial resources and are not reported in the governmental funds. 18,995,211 Deferred outflows of resources related to pensions are not considered financial resources and are not reported in the governmental funds 430,475 Deferred inflows of resources related to pensions are not available to pay for current period expenses and are not reported in the governmental funds (2,721,594) Deferred outflows of resources related to OPEB are not considered financial resources and are not reported in the governmental funds 198,147 Deferred inflows of resources related to OPEB are not available to pay for current period expenses and are not reported in the governmental funds (532,291) Unavailable revenues are not available to pay for current period expenditures and therefore are deferred in the funds and recognized as revenue in the Statement of Activities. 4,006,045
Long-term liabilities are not due and payable in the current period and are not reported in the governmental funds.

Insurance liability $ (202,956)
Compensated absences (157,763)
Net OPEB liability (1,848,791)
Net pension liability (2,544,002) (4,753,512)
Net position of governmental activities $ 33,275,774

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City of Cudahy
Governmental Funds
Statement of Revenues, Expenditures, and Changes in Fund Balances Year ended June 30, 2022
See notes to financial statements.
10 Other
Housing Governmental
Revenues General ARPA Authority Funds Totals
Taxes $ 4,393,381 $ $ - $ - $ 496,800 4,890,181
Licenses and permits 2,126,586 - - - 2,126,586
Intergovernmental 3,116,744 4,975,288 - 3,465,999 11,558,031 Charges for services 526,369 - - 1,965 528,334
Fines, forfeitures and penalties 296,800 - - - 296,800
Use of money and property 11,071 - - 31,505 42,576
Other revenue 533,797 - - 258,262 792,059
Total revenues 11,004,748 4,975,288 - 4,254,531 20,234,567 Expenditures
Current:

General government 4,191,730 - - 36,292 4,228,022
Public safety 4,112,642 - - 120,000 4,232,642
Community services 615,921 - - 1,561,640 2,177,561
Community development 1,425,535 - - 847,331 2,272,866
Capital outlay - - - 94,402 94,402
Total expenditures 10,345,828 - - 2,659,665 13,005,493
Excess (deficiency) of revenues
over expenditures 658,920 4,975,288 - 1,594,866 7,229,074 Other financing sources (uses)
Transfers in 5,245,790 - - 1,346,100 6,591,890
Transfers out (712,196) (4,975,288) - (1,010,464) (6,697,948) Net other financing sources (uses) 4,533,594 (4,975,288) - 335,636 (106,058) Change in fund balance 5,192,514 - - 1,930,502 7,123,016 2,013,650 - 1,782,945 6,937,424 10,734,019
Prior period adjustment 436,834 - - (640,576) (203,742) 2,450,484 - 1,782,945 6,296,848 10,530,277
Fund balance, end of year $ 7,642,998 $ $ - 1,782,945 $ 8,227,350 $ 17,653,293 Fund balance, beginning of year,
as previously reported
Fund balance, beginning of year,
as restated (Note 13)
Special Revenue

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City of Cudahy
Governmental Funds
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities Year ended June 30, 2022
See notes to financial statements.
11 Change in fund balances - governmental funds $ 7,123,016 Amounts reported for governmental activities in the Statement of Activities differ from the amounts reported in the Statement of Revenues, Expenditures, and Changes in Fund Balances because:

Governmental funds report capital outlay as an expenditure. However, in the Statement Capital outlay, net of dispositions $ 334,672
Depreciation (774,489) (439,817)
Revenues that are measurable but not available are recorded as deferred or unavailable revenue under the modified accrual basis of accounting. 694,987 In the Statement of Activities, long-term liabilities are measured by the amounts amounts paid).

Insurance liability 140,076
Compensated absences (49,141) 90,935
Pension and OPEB expenses reported in the Statement of Activities do not require the use of current financial resources and therefore, are, not reported in the governmental funds.

In the Statement of Activities, pension and OPEB expense include, the changes in liability, deferred outflows, and inflows of resources.

Pension expense - GASB 68 (1,011,934)
Other postemployment benefits - GASB 75 173,653 (838,281) Change in net position of governmental activities $ 6,630,840 of Activities, the cost of these assets is allocated over the useful lives as depreciation expense.
earned during the fiscal year. In governmental funds, however, expenditures for these items are measured by the amount of financial resources used (essentially the

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City of Cudahy
Description of Fiduciary Funds
June 30, 2022
See notes to financial statements.
12 Custodial Funds - accounts for the assets held by the City as an agent for individuals, private organizations or other government units and/or other funds. The City’s custodial fund is the Cudahy Youth Foundation.

Successor Agency to the Dissolved Cudahy Community Development Commission PrivatePurpose Trust Fund - this is a fiduciary fund type used by the City to report trust arrangements under which principal and income benefit other governments. This fund reports the assets, liabilities and activities of the Successor Agency to the Dissolved Cudahy Community Development Commission.

The Private-Purpose Trust Fund reports a Statement of Fiduciary Net Position and a Statement of Changes in Fiduciary Net Position.

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City of Cudahy
Fiduciary Funds
Statement of Fiduciary Net Position
June 30, 2022
See notes to financial statements.
13 Successor
Agency to the
Dissolved
Cudahy
Community
Custodial Development
Fund Commission
(Cudahy Youth Private-Purpose
Foundation) Trust Fund
ASSETS
Cash and cash equivalents $ $ 43,839 4,062,979
Restricted cash and investments - 8,176
Rental and other accounts receivable, net 85 -
Capital assets, net of accumulated depreciation - 13,160,072 Land held for development - 2,136,097
Total assets 43,924 19,367,324
Unamortized loss on defeasance of debt - 1,015,506
Current liabilities:

Accounts payable - 5,235
Accrued interest payable - 89,365
Advances from the City of Cudahy - 524,916
Noncurrent liabilities:

Bonds payable - due within one year - 1,490,000
Bonds payable - due in more than one year - 8,325,000
Other long-term liability - noncurrent - 1,409,928
County deferrals - due in more than one year - 1,341,362 Total liabilities - 13,185,806
- -

FIDUCIARY NET POSITION
Restricted net position $ $ 43,924 7,197,024

LIABILITIES

DEFERRED INFLOWS OF RESOURCES

DEFERRED OUTFLOWS OF RESOURCES

Page 134 of 473 ends

City of Cudahy
Fiduciary Funds
Statement of Changes in Fiduciary Net Position
Year ended June 30, 2022
See notes to financial statements.
14 Successor
Agency to the
Dissolved
Cudahy
Community
Custodial Development
Fund Commission
(Cudahy Youth Private-Purpose
Foundation) Trust Fund
Additions
Contributions:

Redevelopment Agency Property Tax Trust Fund $ - $ 1,934,141 Interest and investment revenue:

Use of money and property 195 -
Other revenue 5,220 158,691
Total revenues 5,415 2,092,832
Deductions
Interest and fiscal charges - 636,358
Administrative expenses 3,175 67,349
Total expenses 3,175 703,707
Change in net position before transfers 2,240 1,389,125 Other financing sources (uses):

Transfers in - 106,058
Change in net position 2,240 1,495,183
Net position held in trust - beginning 41,684 5,701,841 Net position held in trust - ending $ $ 43,924 7,197,024

Page 135 of 473 ends

City of Cudahy
Notes to the Financial Statements
Year ended June 30, 2022
15 NOTE 1 REPORTING ENTITY
The City is a municipal corporation governed by an elected five-member council. As required by generally accepted accounting principles, these financial statements present the primary government and its component units, which are separate legal entities for which the City is considered to be financially accountable.

Component Units
Cudahy Economic Development Corporation (CEDC)
The CEDC was created to hold the assets of the former redevelopment agency of the City. In 2014, the State Controller’s Office ordered the transfer of the assets to the Successor Agency to the former Cudahy Community Development Commission/ Redevelopment Agency (Successor Agency). In 2015, the Board of Directors of CEDC and the Oversight Board to the Successor Agency approved the asset transfer agreement. Accordingly, all properties of CEDC were transferred to the Successor Agency on October 19, 2015.

Cudahy Financing Authority (the Financing Authority)
The Financing Authority is a joint powers authority whose members are the City and the Successor Agency. The Financing Authority is duly organized and existing under a Joint Exercise of Powers agreement by and between the City and the former Redevelopment Agency, under the provisions of Chapter 5 of Division 7 of Title 1 of the California Government Code. Its purpose is to assist the City and the Successor Agency in providing financing for capital projects and improvements. The officers of the City and the Successor Agency serve as the officers of the Financing Authority.

NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City's financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America as applied to governmental agencies. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The City's more significant accounting policies are described below.

New Accounting Pronouncements
Governmental Accounting Standards Board (GASB) No. 87 – Leases During the fiscal year ended June 30, 2022, the City implemented GASB Statement No. 87 – Leases. The objective of this Statement is to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments. This Statement increases the usefulness of governments’ financial statements by requiring recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract.

It establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset.

Page 136 of 473 ends

City of Cudahy
Notes to the Financial Statements
Year ended June 30, 2022
16 NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Under this Statement, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing the relevance and consistency of information about governments’ leasing activities. The implementation of this new accounting standards did not have a material impact on the City’s June 30, 2022 financial statements.

Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the providers have been met.

Government-wide and fund financial statements
The statement of net position and statement of activities (i.e., the government-wide financial statements) display information on all of the non-fiduciary activities of the primary government (the City) and its discretely presented component units.

The statement of activities presents a comparison between direct expenses and program revenues for each function of the City's governmental activities. Direct expenses are those that are specifically associated with a program or function and are clearly identifiable to a particular function. Program revenues include 1) charges paid by the recipients of goods or services offered by the programs and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues.

As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Direct expenses have not been eliminated from the functional categories; indirect expenses and internal payments have been eliminated.

Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes.

When both restricted and unrestricted resources are available for use, the City's policy is to use restricted resources first, then the unrestricted resources as they are needed.

Page 137 of 473 ends

City of Cudahy
Notes to the Financial Statements
Year ended June 30, 2022
17 NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Governmental fund financial statements
Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collected within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period, except for certain grants which are considered available if collected within 7 months after year-end. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due.

The City reports the following major governmental funds:

General Fund: This fund is used to account for all financial resources of the City, except for those required to be accounted for in another fund.

American Rescue Plan Act (ARPA): This fund accounts for the ARPA funds received from the federal government to cover short falls in revenue and Covid-19 related costs.

Housing Authority Special Revenue Fund: This fund accounts for assets used for low-and-moderate income housing activities in accordance with the applicable housing-related regulations.

Additionally, the City reports the following fund types:

Other Governmental Funds
Special revenue funds account for proceeds of specific revenue sources that are legally restricted or otherwise designated for specific purposes.

Fiduciary Funds
Custodial Funds
These funds are used to account for the assets held by the City in a purely custodial capacity, as an agent for individuals, private organizations or other government units and/or other funds.

Successor Agency Private-Purpose Trust Fund
Private-Purpose trust fund is a fiduciary fund type used by the City to report trust arrangements under which principal and income benefit other governments. This fund is used to report the assets, liabilities and activities of the Successor Agency to the Dissolved Cudahy Community Development Commission. The PrivatePurpose Trust Fund reports a statement of fiduciary net position and a statement of changes in fiduciary net position.

Page 138 of 473 ends

City of Cudahy
Notes to the Financial Statements
Year ended June 30, 2022
18 NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Budgetary Control and Accounting
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) as changes in net position.

All governmental fund types and custodial funds use the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount of the transaction can be determined and "available” means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The City considers property taxes and sales taxes to be available if they are collected within 60 days after year-end. Expenditures are recorded when the related fund liability is incurred, except for unmatured principal and interest on general long-term debt which is recognized when due.

Revenues considered susceptible to accrual are property taxes, sales taxes, utility taxes, admission tax, interest revenue and grant revenues. All other revenues are not considered susceptible to accrual by the City.

The City at times reports unavailable revenue in its financial statements. Unavailable revenues arise when potential revenue does not meet the “available" criterion for recognition in the current period. Additionally, unearned revenues arise when the City receives resources before it has a legal claim to them, as when grant monies are received prior to the incurrence of qualifying expenditures.

In subsequent periods, when both revenue recognition criteria are met, or when the City has a legal claim to the resources, the unavailable and unearned revenue is removed from the balance sheet and revenue is recognized.

Budgets are adopted on a basis consistent with GAAP. The City Council approves the budget submitted each year by the City Manager prior to the beginning of the new fiscal year. Supplemental appropriations are approved by the Council and City Manager when required during the period. The City Manager may amend the budget administratively so long as the amendment does not increase the total appropriation for each fund. All other budget amendments are approved by the City Council.

Expenditures may not exceed appropriations at the fund level, which is the legal level of control. Annual appropriated budgets are adopted for the general and special revenue funds.

Page 139 of 473 ends

City of Cudahy
Notes to the Financial Statements
Year ended June 30, 2022
19 NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Assets, Liabilities, Deferred Outflows and Inflows of Resources, and Net Position or Equity
Cash and Investments
Cash equivalents are defined as short-term, highly liquid investments that are both readily convertible to known amounts of cash or so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Cash equivalents have an original maturity date of three months or less from the date of purchase.

Investments are recorded at fair value. The estimated fair value of all investments is the quoted market price. Interest income earned on pooled cash and investments is allocated to the various funds based on their monthly average cash balances.

Changes in fair value that occur during a fiscal year are recognized as investment income reported for that fiscal year. Investment income includes interest earnings, changes in fair value, and any gains or losses realized upon the liquidation, maturity, or sale of investments.

The City pools cash and investments of all funds. Each fund’s share in this pool is displayed in the accompanying financial statements as cash and investments.

The City pools cash from all funds in order to increase income earned through its investment program. Investment income from pooled investments is allocated to those funds which are required by law or administrative action to receive interest. Investment income is allocated on a quarterly basis based on the weighted average cash balance in each fund.

Property Taxes
Assessed values are levied on an annual basis by the Los Angeles County Assessor as of July 1. Taxes become a lien on real property on January 1 and are payable in two installments on November 1 and February 1. They become delinquent if not paid by December 10 and April 10, respectively.

Receivables and Payables
Property, sales, use, and utility user taxes related to the current fiscal year are accrued as revenue and accounts receivable and considered available if received within 60 days of year-end. Federal and state grants are considered receivable and accrued as revenue when reimbursable costs are incurred under the accrual basis of accounting.

The amount recognized as revenue under the modified accrual basis of accounting is limited to the amount that is deemed measurable and available.

Prepaid Expenses
Certain payments to vendors reflect costs applicable to future periods and are recorded under prepaid expenses in both government-wide and fund financial statements. These costs will be recognized in the period when services are received or when the City receives title to the property.

Page 140 of 473 ends

City of Cudahy
Notes to the Financial Statements
Year ended June 30, 2022
20 NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) lnterfund Transactions
lnterfund transactions are reflected as loans, services provided reimbursements, or transfers. Loans are reported as receivables and payables as appropriate, are subject to elimination upon consolidation and are referred to as either "due to/from other funds" (i.e., the current portion of lnterfund loans) or "advances to/from other funds" (i.e., the noncurrent portion of lnterfund loans). Any residual balance outstanding in the governmental activities is reported in the government-wide financial statements as "internal balance". Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve account in applicable governmental funds to indicate that they are not available for appropriation and are not available financial resources.

Services provided, deemed to be at market or near market rates, are treated as revenues and expenditures/expenses. Reimbursements are when one fund incurs a cost, charges the appropriate benefiting fund and reduces its related cost as a reimbursement. All other lnterfund transactions are treated as transfers.

Restricted Assets
Certain proceeds of debt issues, as well as certain resources set aside for their repayment, are classified as restricted assets on the balance sheet because their use is limited by applicable bond covenants.

Capital Assets
Capital assets, which include land, buildings, improvements, equipment and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items) are reported in the governmental activities column in the government-wide financial statements.

Capital assets are recorded at the lower of actual historical cost or fair value (as of the date donated for contributed assets).

The City has analyzed its capital assets for potential impairment. The City does not believe that any capital assets are impaired at June 30, 2022.

The costs of normal maintenance and repairs that do not add to the value of the assets or materially extend asset lives are not capitalized.

Capital assets are depreciated using the straight-line method over the following estimated useful lives:

Building and improvements 50 years
Parks and park improvements 40 years
Infrastructure 10 to 40 years
Vehicles, furniture and equipment 3 to 5 years

Page 141 of 473 ends

City of Cudahy
Notes to the Financial Statements
Year ended June 30, 2022
21 NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) It is the City's policy to capitalize all land, building, improvements, equipment and infrastructure assets, except assets costing less than $5,000, and to capitalize infrastructure assets costing $50,000 or more. In the government-wide financial statements, costs of assets sold or retired (and related amounts of accumulated depreciation) are eliminated from the accounts in the year of sale or retirement and the resulting gain or loss is included in the statement of activities. In governmental funds, the sale of general capital assets is included in the statement of revenues, expenditures and changes in fund balances as proceeds from sale.

Deferred Outflows and Inflows of Resources
Pursuant to GASB Statements No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position, and No. 65, Items Previously Reported as Assets and Liabilities, the City recognizes deferred outflows and inflows of resources. A deferred outflow of resources is defined as a consumption of net position by the government that is applicable to a future reporting period. A deferred inflow of resources is defined as an acquisition of net position by the government that is applicable to a future reporting period.

Revenues earned, but not yet received, may not be available in a timely manner to pay current expenditures or obligations. Such receivables, not meeting the availability criteria necessary for accrual under modified accrual basis accounting principles, are reported as unavailable revenues for that period in the fund financial statements. In the government-wide financial statements, however, availability criteria are not considered. Instead, revenues become, and remain receivable from the point in time when revenue is earned through performance or similar recognition standards, until received. Refer to Note 12 for the list of deferred outflows and deferred inflows of resources the City has recognized as of June 30, 2022.

Compensated Absences
City employees receive up to 240 paid vacation hours per year, depending upon their length of service. In the fund financial statements, the City accounts for compensated absences (unpaid vacation and sick leave) as expenditures in the year paid, as it is the City's policy to liquidate any unpaid vacation or compensatory pay from future resources, rather than from currently available expendable resources.

All unpaid vacation and sick pay is accrued when earned in the government-wide and fiduciary fund financial statements.

Unearned Revenues
Unearned revenues arise when the City receives resources before it has a legal claim to them (e.g., when grant monies are received prior to the incurrence of qualifying expenditures).

Long-term Obligations
In the government-wide and fiduciary fund financial statements, long-term debt and other long-term obligations are reported as liabilities. Bond premiums and discounts are deferred and amortized over the life of the bonds. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are expensed when incurred.

Page 142 of 473 ends

City of Cudahy
Notes to the Financial Statements
Year ended June 30, 2022
22 NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the reporting period.

Actual results could differ from those estimates.

Fund Balance Reporting
Governmental Accounting Standards Board (GASB) Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, establishes the following fund balance classifications that comprise a hierarchy based primarily on the extent to which a government is bound to observe constraints imposed upon the use of the resources reported in governmental funds:

Nonspendable fund balance includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact. The City’s nonspendable fund balances represent prepaid expenses and advances to the Successor Agency Private – Purpose Trust Fund.

Restricted fund balance includes resources that are subject to externally enforceable legal restrictions. It includes amounts that can be spent only for the specific purposes stipulated by constitution, external resource providers, or through enabling legislation.

The City’s restricted fund balance of $10,117,328 represents resources restricted for special projects, and programs funded by local, state and federal grants.

Committed fund balance includes amounts that can be used only for the specific purposes determined by a formal action or resolution of the City’s highest level of decision-making authority (City Council). Committed amounts cannot be used for any other purpose unless the City Council removes or changes the specific use through the same type of formal action or resolution taken to establish the commitment. The City has no committed fund balances.

Assigned fund balance consists of funds that are set aside for specific purposes by the City’s highest level of decision-making authority or a body or official that has been given the authority to assign funds. The City Council delegates the authority to assign fund balance to the City Manager for purposes of reporting in the annual financial statements. The City has no assigned fund balances.

Page 143 of 473 ends

City of Cudahy
Notes to the Financial Statements
Year ended June 30, 2022
23 NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Unassigned fund balance is the residual classification for the City’s general fund and includes all spendable amounts not contained in the other classifications. This category also provides the resources necessary to meet unexpected expenditures and revenue shortfalls.

The government-wide financial statements utilize a net position presentation. Net position is categorized as net investment in capital assets, restricted, and unrestricted. • Net investment in capital assets - This category groups all capital assets, including infrastructure, into one component of net position. Accumulated depreciation and the outstanding balances of debt that are attributable to the acquisition, construction or improvement of these assets reduce the balance of this category.
• Restricted net position - This category presents external restrictions imposed by creditors, grantors, contributors, laws or regulations of other governments and restrictions imposed by law through constitutional provisions or enabling legislation.
• Unrestricted net position - This category represents the City's net positions, which are not restricted for any project or other purpose.

Pensions
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s California Public Employees’ Retirement System (CalPERS) plans and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.

Other Postemployment Benefits (OPEB)
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the OPEB Plan and additions to/deductions from OPEB Plan's fiduciary net position have been determined on the same basis as they are reported by the Plan. For this purpose, the OPEB Plan recognizes benefit payments when due and payable in accordance with the benefit terms. Investments are reported at fair value, except for money market investments, which are reported at amortized cost.

Page 144 of 473 ends

City of Cudahy
Notes to the Financial Statements
Year ended June 30, 2022
24 NOTE 3 STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
Fund balances at June 30, 2022 consisted of the following:

Deficit Fund Balances
The following funds have deficit fund balances at June 30, 2022. Management expects to eliminate the deficits with subsequent revenue in the funds or transfers from the General Fund:

Expenditures in Excess of Appropriations
Expenditures for the year ended June 30, 2022 exceeded the appropriations by the following amounts in the following funds:

Major funds:

Nonspendable $ 588,685
Restricted for special purposes 1,782,945
Unassigned 7,054,313
Total major 9,425,943
Nonmajor funds:

Restricted for special purposes 8,334,383
Unassigned (107,033)
Total nonmajor 8,227,350
Total $ 17,653,293
Nonmajor funds:

Street Lighting $ (107,033)
Expenditures in excess of appropriations:

Major funds:

General Fund
General Government $ (41,020)
Public Safety (82,202)
Community development (749,213)

Page 145 of 473 ends

City of Cudahy
Notes to the Financial Statements
Year ended June 30, 2022
25 NOTE 3 STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY (CONTINUED) NOTE 4 CASH AND INVESTMENTS
Cash and investments as of June 30, 2022 are classified in the financial statements as follows:

Expenditures in excess of appropriations:

Nonmajor funds:

Proposition A
Community Services $ (336,749)
Measure M
General government (1,575)
Community development (24,208)
Measure R
General government (34,717)
Community development (72,000)
Community development (223,200)
COPS
Public Safety (20,000)
TDA
Capital outlay (17,051)
Street Lighting
Community services (90,110)
Other Grants
Capital outlay (37,085)
Gas Tax
Community Services (112,722)
Governmental Activities:

Statement of Net Position:

Cash and investments - unrestricted $ 14,425,698
Fiduciary Activities:

Statement of Fiduciary Net Position:

Cash and cash equivalents - unrestricted 4,106,818
Cash and Investments with fiscal agent 8,176
Total cash and investments $ 18,540,692

Page 146 of 473 ends

City of Cudahy
Notes to the Financial Statements
Year ended June 30, 2022
26 NOTE 4 CASH AND INVESTMENTS (CONTINUED)
Investments Authorized by the California Government Code and the City’s Investment Policy
The following table identifies the investment types that are authorized for the City by the California Government Code and the City's investment policy. The table also identifies certain provisions of the California Government Code (or the City's investment policy, if more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City's investment policy.

Investments Authorized by Debt Agreements
Investments of debt proceeds held by fiscal agent are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City's investment policy. The table below identifies the investment types that are authorized for investments held by fiscal agent. The table also identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk.

Cash and investments consist of the following:

Petty cash $ 11,420
Deposits with financial institutions 7,327,044
Investments 11,202,228
Total $ 18,540,692
Maximum Maximum
Authorized by Maximum Percentage Investment
Authorized Investment Type Investment Policy Maturity* of Portfolio* In One Issuer Local Agency Bonds No N/A N/A N/A
U.S. Treasury Obligations Yes 5 years None None
U.S. Agency Securities Yes 5 years None None
Banker’s Acceptances Yes 180 days 30% 30%
Commercial Paper No 270 days 25% 10%
Certificates of Deposit Yes 5 years 30% None
Repurchase Agreements Yes 1 year N/A N/A
Reverse Repurchase Agreements No N/A N/A N/A
Medium-Term Notes No N/A N/A N/A
Mutual Funds No N/A N/A N/A
Money Market Mutual Funds Yes N/A 20% 10%
Mortgage Pass-Through No N/A N/A N/A
County Pooled Investment Funds No N/A N/A N/A
Local Agency Investment Fund Yes N/A None $65 million
* Based on state law requirements or investment policy requirements, whichever is more restrictive.

Page 147 of 473 ends

City of Cudahy
Notes to the Financial Statements
Year ended June 30, 2022
27 NOTE 4 CASH AND INVESTMENTS (CONTINUED)
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater is the sensitivity of its fair value to changes in market interest rates. One of the ways that the City may manage its exposure to interest rates risk is by purchasing a combination of shorter-term and longer-term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity over time as necessary to provide the cash flow and liquidity needed for operations.

Information about the sensitivity of the fair values of the City’s investments to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investments by maturity:

Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code or the City's investment policy and the actual rating as of yearend for each investment type.

Maximum Maximum
Maximum Percentage Investment
Authorized Investment Type Maturity of Portfolio In One Issuer Local Agency Bonds None None None
U.S. Treasury Obligations None None None
U.S. Agency Securities None None None
Banker’s Acceptances 1 year None None
Commercial Paper 270 days None None
Negotiable Certificates of Deposit None None None
Repurchase Agreements 30 days None None
Money Market Mutual Funds N/A None None
Local Agency Investment Fund N/A None None
Investment Agreements N/A None None
12 Months 13 to 24 25 to 60 More than
Total or Less Months Months 60 Months
Investment Type
Local Agency Investment Fund $ 11,202,228 $ 11,202,228 $ $ - - $ - Total $ 11,202,228 $ 11,202,228 $ - $ - $ -
Remaining Maturity in Months
Minimum
Total as of Legal
Investment Type June 30, 2022 Rating AAA Not Rated
Local Agency Investment Fund $ 11,202,228 N/A $ - $ 11,202,228 Total $ 11,202,228 $ - $ 11,202,228

Page 148 of 473 ends

City of Cudahy
Notes to the Financial Statements
Year ended June 30, 2022
28 NOTE 4 CASH AND INVESTMENTS (CONTINUED)
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local government units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.

As of June 30, 2022, no deposits with financial institutions in excess of federal depository insurance limits were held in uncollateralized accounts.

Custodial credit risk does not apply to a local government’s indirect investment in securities through the use of mutual funds or government investment pools (such as LAIF). As of June 30, 2022, none of the City’s investments were held by the brokerdealer (counterparty) that was used by the City to purchase the securities.

Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by the California Government Code under the oversight of the Treasurer of the State of California. The fair value of the City's investment in this pool of $11.2 million was reported in the accompanying financial statements at amounts based upon the City's pro-rata share of the fair value provided by LAlF for the entire LAlF portfolio (in relation to the amortized cost of that portfolio).

The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. LAIF’s and the City’s exposure to risk (credit, market or legal) is not currently available.

Fair Value Measurement
In accordance with GASB Statement No. 72, Fair Value Measurement and Application, which became effective for the fiscal year ended June 30, 2022, the City categorizes its fair value measurement within the fair value hierarchy that is based on the valuation inputs used to measure the fair value of the investment. Level 1 inputs are quoted prices in active markets for identical investments; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. Accordingly, the City reports its investments at fair value and recognizes unrealized gain (loss) on investments.

The City’s investments in LAIF were not measured within the fair value hierarchy.

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City of Cudahy
Notes to the Financial Statements
Year ended June 30, 2022
29 NOTE 5 RECEIVABLES
Notes Receivable
Notes receivable as of June 30, 2022 are as follows:

Governmental Funds – Housing Authority
Pursuant to the provisions of ABX1 26 and Resolution No 12-04, the City assumed all housing assets and housing functions of the former Redevelopment Commission. The housing assets transferred on February 1, 2012 to the Housing Authority included the following notes receivables which represent loans made for assistance in rehabilitating property for affordable housing, plus accrued interest. Because interest is payable at maturity and is not available to finance current operations, interest on notes receivable is not recognized in the financial statements as a current period revenue:

Balance
June 30, 2022
a) In November 1995 and May 1997, the Successor Agency
(previously Cudahy Community Development Commission)
loaned $220,000 and $60,000, respectively, to Elizabeth West & East L.P. The note is collateralized by a deed of trust on 5225-27 Elizabeth Street. The note bears
compounding interest at 6.55% and all principal and
accrued interest is due in November 2025. $ 1,439,108
b) In June 1998, February 2000, and September 2000, the Successor Agency loaned $150,000, $140,000 and
$210,000, respectively, to 5159 Clara Street LLP for a total loan of $500,000. The note is collateralized by a deed of trust on 5159 Clara Street. The note bears simple interest at 1% and all principal and accrued interest are due in May 2026. 613,234 c) During the year ended June 30, 2000, the Successor Agency agreed to loan $650,000 to Live Oak LLP, of which $590,000 had been advanced through June 30, 2003. The note is
collateralized by a deed of trust on 5203 Live Oak. The note bears interest at 2.5% and all principal and accrued interest are due in August 2029. 1,011,012
Subtotal – Housing Authority 3,063,354
Governmental Fund – Other Funds
The City granted loans to qualified individual homeowners in connection with the Cal Home and CDBG programs. The
loans are collateralized by deeds of trust in favor of the City.

The notes vary as to terms and conditions. The notes have varying interest rates up to 3% and due dates from 5 years to unspecified. 378,195
Subtotal – Other Funds 378,195
Total $ 3,411,549

Page 150 of 473 ends

City of Cudahy
Notes to the Financial Statements
Year ended June 30, 2022
30 NOTE 6 CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2022 was as follows:

Depreciation expense was charged to functions of the governmental activities as follows:

Balance Balance
June 30,
2021 Increases Decreases
June 30,
2022
Capital assets, not being depreciated
Land $ 2,806,643 $ - $ - $ 2,806,643
Construction-in-progress 107,069 299,692 - 406,761
2,913,712 299,692 - 3,213,404
Capital assets, being depreciated
Structures and improvements 12,958,447 - - 12,958,447
Infrastructure 52,073,376 - - 52,073,376
Vehicles 534,318 34,980 - 569,298
Furniture & equipment 323,214 - - 323,214
Total 65,889,355 34,980 - 65,924,335
Less accumulated depreciation:

Structures and improvements 6,110,584 269,838 - 6,380,422 Infrastructure 42,574,672 447,478 - 43,022,150
Vehicles 382,831 45,542 - 428,373
Furniture & equipment 299,952 11,631 - 311,583
Total 49,368,039 774,489 - 50,142,528
Net 16,521,316 (739,509) - 15,781,807
Governmental activities
capital assets, net $ 19,435,028 $ (439,817) $ - $ 18,995,211 General government $ 195,791
Community services 576,452
Community development 2,246
$ 774,489

Page 151 of 473 ends

City of Cudahy
Notes to the Financial Statements
Year ended June 30, 2022
31 NOTE 7 LONG-TERM DEBT
Long-term liability activity of the government-wide financial statements for the year ended June 30, 2022 follows:

Pension and OPEB liability are to be liquidated from the City’s General Fund.

NOTE 8 INTERFUND BALANCES AND TRANSFERS
Interfund receivable and payable balances are as follows:

Balance Balance Due Within
June 30, 2021 Additions Reductions June 30, 2022 One Year Insurance liability $ 343,032 $ 25,679 $ (165,755) $ 202,956 $ - Compensated absences 108,622 49,141 - 157,763 28,502
OPEB liability 1,659,559 429,901 (240,669) 1,848,791 -
Net pension liability 3,767,399 - (1,223,397) 2,544,002 - Total $ 5,878,612 $ 504,721 $ (1,629,821) $ 4,753,512 $ 28,502 Due from Due to
Major funds: Other Funds Other Funds
General Fund $ 2,961,789 $ -
ARPA - 2,156,185
2,961,789 2,156,185
Nonmajor funds:

Other Grants - 340,585
Street Lighting - 94,244
Proposition A - 90,909
Proposition C - 97,464
Measure M - 72,982
Measure R - 109,420
Total funds $ 2,961,789 $ 2,961,789
Transfer In Transfer Out
Major funds:

General Fund $ 5,245,790 $ 712,196
ARPA - 4,975,288
Total major funds $ 5,245,790 $ 5,687,484

Page 152 of 473 ends

City of Cudahy
Notes to the Financial Statements
Year ended June 30, 2022
32 NOTE 8 INTERFUND BALANCES AND TRANSFERS (CONTINUED)

NOTE 9 COMMITMENTS AND CONTINGENCIES
Risk Management
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; and natural disasters for which the City is self-insured and purchases excess insurance coverage from Municipal Insurance Cooperative Joint Powers Authority and the commercial insurance market.

Lawsuits
Legal claims and lawsuits arise from time to time in the normal course of business, which, in the opinion of management, could potentially have a material effect on the City's financial position.

Grant Audit Contingencies
Under the terms of federal and state grants, periodic audits are required and certain costs may be questioned as not being appropriate expenditures. Such audits could lead to reimbursement to the grantor agencies. City management believes disallowances, if any, would be immaterial.

Description of Municipal Insurance Cooperative Joint Powers Authority The City is a member of the Municipal Insurance Cooperative (MIC) Joint Powers Authority. MIC was formed in 2014 to provide insurance coverage and risk management services to public entities and made up of 8 members. MIC is a joint purchase group non-risk sharing JPA that provides members, at their option, the opportunity to purchase excess liability coverage on a group basis. The unique design of MIC allows member agencies to obtain coverage that is more cost effective than they could by on their own while avoiding the risks associated with joint and several liabilities.

Transfer In Transfer Out
Nonmajor funds:

State Gas Tax $ $ - 956,531
Road Maintenance and Rehab 956,331 -
Other Grants 166,019 -
Measure W 161,547 -
Recycling Conservation Grants - 9
Street Lighting 51,928 45,620
CDBG 10,275 8,304
Total nonmajor funds $ 1,346,100 $ 1,010,464
Fiduciary fund:

Successor Agency 106,058 -
Total funds $ 6,697,948 $ 6,697,948

Page 153 of 473 ends

City of Cudahy
Notes to the Financial Statements
Year ended June 30, 2022
33 NOTE 9 COMMITMENTS AND CONTINGENCIES (CONTINUED)
Self-Insurance Programs of the Authority
MIC provides comprehensive and cost-effective coverage in terms of limits of liability and insurance coverage. MIC is available to public entities of all sizes, providing an insurance program that will assist them in maximizing valuable resources.

Liability
In the liability program, each member is individually rated based upon current market conditions and loss experience and exposures. Members have the option to purchase any and all of the available insurance program that makes sense for their agency. The City has elected to purchase excess liability coverage through MIC with total limits of $10M with a $50K self-insured retention. Premiums for the coverage are paid annually and are not subject to retrospective adjustments.

Workers' Compensation
In the workers’ compensation program, the City is individually rated based upon current market conditions, exposures and loss experience with the option to secure coverage at a retention level that is appropriate to the City’s appetite for risk. The City of Cudahy has elected to purchase excess workers’ compensation coverage through Arch Insurance Company with statutory limits and a self-insured retention of $1M. In addition, the City has a buffer policy with total limits of $925K and $75K self-insured retention. Premiums for the coverage are paid annually and are not subject to retrospective adjustments.

Property Insurance
The City purchases stand-alone all-risk property coverage for all city owned property excluding earthquake and flood. The City currently has all-risk property insurance protection based upon Total Insurable Values of $25,916,355. The coverage deductibles consist of $10,000 per occurrence for covered perils, $50,000 for vacant buildings, $100,000 for wildfire and $10,000 for service interruption. Premiums for the coverage are paid annually and are not subject to retrospective adjustments.

Crime Insurance
The City purchases government crime insurance coverage in the amount of $5,000,000 with a $25,000 deductible. The fidelity coverage is provided through commercial insurance. Premiums are paid annually and are not subject to retrospective adjustments.

Cyber Liability Insurance
The City purchases cyber liability also known as data security breach coverage consisting of both first party and third-party liability through commercial insurance.

Coverage limits consist of $1,000,000 per occurrence with a $5,000 retention, per claim. Premiums are paid annually and are not subject to retrospective adjustments.

Special Event Tenant User Liability Insurance
The City further protects against liability damages by requiring tenant users of certain property to purchase low-cost tenant user liability insurance for certain activities on agency property. The insurance premium is paid by the tenant user and the insurance is arranged by the City’s insurance broker, Keenan & Associates.

Page 154 of 473 ends

City of Cudahy
Notes to the Financial Statements
Year ended June 30, 2022
34 NOTE 9 COMMITMENTS AND CONTINGENCIES (CONTINUED)
Adequacy of Protection
In the past three years, the City has had no claims for general liability and one claim for workers’ compensation that has exceeded the City’s self-insured retention level.

Claims and Judgments
The City accounts for uninsured, material claims and judgments and associated legal and administrative costs when it is probable that the liability claim has been incurred and the amount of the loss can be reasonably estimated. Included therein are claims incurred but not reported, which consists of (a) known loss events expected to be presented as claims later, (b) unknown loss events that are expected to become claims, and (c) expected future development on claims already reported. This is based upon historical actual results that have established a reliable pattern supplemental by specific information about current matters. Small dollar claims and judgments are recorded as expenditures when paid.

NOTE 10 DEFINED BENEFIT PENSION PLAN
A. General Information about the Pension Plans
Plan Description
All qualified permanent and probationary employees are eligible to participate in the City’s Miscellaneous Employee Pension Plan. The City’s Miscellaneous Employee Pension Plan is part of the Miscellaneous Risk Pool, a cost-sharing multiple employer defined benefit pension plan administered by the California Public Employees’ Retirement System (CalPERS). Benefit provisions under the Plan are established by State statute and the City’s resolution. CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.

Classic participants (defined as eligible participants prior to January 1, 2013) are required to contribute 8% of their annual covered salary. Second tier participants are required to contribute 7% of their annual covered salary. New or Public Employees’ Pension Reform Act of 2013 (PEPRA) participants (defined as eligible employees brought into CalPERS membership for the first time on or after January 1, 2013) contribute at least half the normal cost rate as determined by CalPERS. The City contributes the remaining amounts necessary to fund the benefits for its employees, using the actuarial basis adopted by the CalPERS Board of Administration.

Page 155 of 473 ends

City of Cudahy
Notes to the Financial Statements
Year ended June 30, 2022
35 NOTE 10 DEFINED BENEFIT PENSION PLAN (CONTINUED)
Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to Plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following:
the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the California Public Employees’ Retirement Law.

The Plans’ provisions and benefits in effect at June 30, 2022 are summarized as follows:

Contributions
Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on July 1st following notice of a change in the rate.

Funding contributions are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability.

The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.

For the year ended June 30, 2022, the contributions recognized as part of pension expense for the Plan were as follows:

Classic Second Tier PEPRA
Hire date Prior to Prior to On or after
January 1, 2013 January 1, 2013 January 1, 2013
Benefit formula 2.7% @ 55 2% @ 60 2% @ 62
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age 50 - 55 50 - 55 52 - 67
Monthly benefits, as a % of eligible
compensation 2.0% to 2.7% 2.0% to 2.7% 1.0% to 2.5%
Required employee contribution rates 8% 7% 6.75%
Required employer contribution rates 14.02% 9.13% 7.59% Miscellaneous Plan
Miscellaneous
Contributions - employer $ 145,192
Contributions - employee 105,636

Page 156 of 473 ends

City of Cudahy
Notes to the Financial Statements
Year ended June 30, 2022
36 NOTE 10 DEFINED BENEFIT PENSION PLAN (CONTINUED)
B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
As of June 30, 2022, the City reported net pension liability for its proportionate share of the net pension liability of the Plan as follows:

Effective for measurement period 2015, CalPERS provides GASB Statement No. 68 Accounting Valuation Report for the Miscellaneous Risk Pool and Allocation Methodology to be used by participants in the risk pool. The schedules of employer allocation include allocation for the Total Pension Liability, Plan Fiduciary Net Position and all others pension amounts (e.g. deferred outflows/inflows of resources and pension expense). The Total Pension Liability and other pension amounts are allocated based on the Actuarial Accrued Liability from the most recent Actuarial Valuation Report as of June 30, 2020 used for funding purposes. The Plan Fiduciary Net Position is allocated based on the sum of the Market Value of Assets from the most recent Actuarial Valuation as of June 30, 2020 used for funding purposes plus supplemental payments made by employers during the current measurement period to reduce their unfunded actuarial accrued liabilities.

The City’s allocation bases for pension items are as follows:

For the year ended June 30, 2022, the City recognized pension expense of $1,157,126.

Proportionate
Share of Net
Pension
Liability (Asset)
Miscellaneous $ 2,544,002
Miscellaneous
Total pension liability and deferred outflows/
inflows of resources 0.0006462
Plan fiduciary net position 0.0005733

Page 157 of 473 ends

City of Cudahy
Notes to the Financial Statements
Year ended June 30, 2022
37 NOTE 10 DEFINED BENEFIT PENSION PLAN (CONTINUED)
At June 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
$145,192 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending June 30, 2023.

Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Pension contributions subsequent to
measurement date $ 145,192 $ -
Differences between actual and
expected experience 285,283 -
Change in employer's proportion - 96,636
Differences between Projected and Actual
Investment Earnings - 2,220,780
Differences between the employer’s
contribution and the employer's
proportionate share of contributions - 404,178
Total 430,475 $ $ 2,721,594
Year Ending
June 30 Amount
2023 $ (650,158)
2024 (605,060)
2025 (567,384)
2026 (613,709)
2027 -
Thereafter -

Page 158 of 473 ends

City of Cudahy
Notes to the Financial Statements
Year ended June 30, 2022
38 NOTE 10 DEFINED BENEFIT PENSION PLAN (CONTINUED)
Actuarial Assumptions
For the measurement period ended June 30, 2021 (the measurement date), the total pension liability was determined by rolling forward the June 30, 2020 total pension liability. The total pension liability in the June 30, 2020 actuarial valuation were determined using the following actuarial assumptions:

The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2020 valuation were based on actuarial experience study for the period 1997 to 2015, including updates to salary increase and mortality and retirement rates.

The Experience Study report can be obtained at CalPERS’ website under Forms and Publications.

Discount Rate
The discount rate used to measure the total pension liability was 7.15% for the Plan.

To determine whether the municipal bond rate should be used in the calculation of a discount rate, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing of the plans, none of the tested plans ran out of assets. Therefore, the current

7.15% discount rate is appropriate, and the use of the municipal bond rate calculation is not necessary. The discount rate of 7.15% used for the June 30, 2021 measurement date is without reduction of pension plan administrative expenses and will be applied to all plans in the Public Employees Retirement Fund (PERF). The stress test results are presented in a detailed report that can be obtained from the CalPERS website.

Valuation Date June 30, 2020
Measurement Date June 30, 2021
Actuarial Cost Method
Entry-Age Normal
Cost Method
Actuarial Assumptions:

Discount Rate 7.15%
Inflation 2.50%
Payroll Growth 3.00%
Projected Salary Increase (1)
Investment Rate of Return 7.15% (2)
Mortality (3)
Post-Retirement Benefit Increase (4)
(1) Varies by entry age and service
(2) Net of pension plan investment expenses, including inflation (3) Derived using CalPERS' Membership Data for all funds (4) Contract COLA up to 2.50% until Purchasing Power Protection Allowance Floor on Purchasing Power applies, 2.75% thereafter.

Page 159 of 473 ends

City of Cudahy
Notes to the Financial Statements
Year ended June 30, 2022
39 NOTE 10 DEFINED BENEFIT PENSION PLAN (CONTINUED)
The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound returns were calculated over the short-term (first 10 years) and the longterm (11-60 years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent.

The following table reflects long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. These geometric rates of return are net of administrative expenses.

Asset Real Return Real Return
Asset Class Allocation Years 1 - 10(a) Years 11+(b)
Global Equity 50.00% 4.80% 5.98%
Global Fixed Income 28.00% 1.00% 2.62%
Inflation Sensitive - 0.77% 1.81%
Private Equity 8.00% 6.30% 7.23%
Real Estate 13.00% 3.75% 4.93%
Liquidity 1.00% - -0.92%
Total 100%
(a) An expected inflation of 2.00% used for this period. (b) An expected inflation of 2.92% used for this period.

Page 160 of 473 ends

City of Cudahy
Notes to the Financial Statements
Year ended June 30, 2022
40 NOTE 10 DEFINED BENEFIT PENSION PLAN (CONTINUED)
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate
The following presents the City’s proportionate share of the net pension liability for the Plan, calculated using the discount rate for the Plan, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:

C. Pension Plan Fiduciary Net Position
Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

D. Payable to the Pension Plan
As of June 30, 2022, the City did not have outstanding amount of contributions to the pension plan required for the year ended June 30, 2022.

NOTE 11 OTHER POSTEMPLOYMENT BENEFITS (OPEB)
Plan Description
Integrated medical/prescription drug coverage is provided through CalPERS under the Public Employees' Medical and Hospital Care Act (PEMHCA). Employees may choose from a variety of HMO and PPO options. The City pays 100% of the cost of PEMHCA coverage for active full-time employees, including coverage for spouse and dependent children. The City also pays a 0.36% of premium administrative charge for all active employees. The City offers the same medical plans to its eligible retirees as to its active employees, with the exception that once a retiree becomes eligible for Medicare (that is, reaches age 65), he or she must join a Medicare HMO or a Medicare Supplement plan under PEMHCA.

Certain employees become eligible to retire and receive City-paid healthcare benefits upon attainment of age 50 and 5 years of covered Public Employees' Retirement System (PERS) service, or by qualifying disability retirement status.

Miscellaneous
1% Decrease 6.15%
Net Pension Liability (Asset) $ 4,247,349
Current Discount Rate 7.15%
Net Pension Liability (Asset) $ 2,544,002
1% Increase 8.15%
Net Pension Liability (Asset) $ 1,135,870

Page 161 of 473 ends

City of Cudahy
Notes to the Financial Statements
Year ended June 30, 2022
41 NOTE 11 OTHER POSTEMPLOYMENT BENEFITS (OPEB) (CONTINUED) Benefits Provided
Benefits are paid for the lifetime of the retiree and, if applicable, the surviving spouse of the retiree.

Funding Policy and Contributions
The City's contribution on behalf of all eligible retirees is the same as it is for active employees (100% of the cost of coverage for retiree, spouse and dependent children).

The City has elected the equal contribution method, where the contribution will remain the same annually.

The City opened an irrevocable trust account with Public Agency Retirement Services (PARS). The contribution requirements of the City are established and may be amended by the City Council. The required contribution is based on pay-as-you-go financing requirements plus $100 thousand contribution to the trust. For the fiscal year ended June 30, 2022, the City contributed $240,669 to the plan.

Total OPEB Liability
The City’s total OPEB liability was measured as of June 30, 2022, and the total OPEB liability used to calculate the total OPEB liability was determined by an actuarial valuation as of June 30, 2021.

Employees Covered Benefit Terms
At June 30, 2021 (the valuation date), the following employees were covered by the benefit terms:

Category Count
Active employees 36
Inactive employees or beneficiaries currently receiving benefit 13 Inactive employees entitled to but not yet receiving benefit payment 3

Page 162 of 473 ends

Cudahy City CouncilJanuary 17, 2023

Cudahy City Council
January 17, 2023