Cudahy City Council
February 21, 2023

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, February 21, 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: 885 0203 8797
https://us06web.zoom.us/j/88502038797

City of Cudahy
City Council and Successor Agency
Regular Meeting Agenda
February 21, 2023, at 6:30 P.M.

1. CALL TO ORDER

2. ROLL CALL
Council / Agency Member Gonzalez
Council / Agency Member Fuentes
Council / Agency Member Alcantar
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. Proclamation in Honor of Martha Alejandra Fierro

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.

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

City of Cudahy
City Council and Successor Agency
Regular Meeting Agenda
February 21, 2023, at 6:30 P.M.

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
B. Closed Session Pursuant to Government Code Section 54956.9(e)(1) – Conference with Legal Counsel to Discuss Matter Involving Potential Litigation – One Matter

8. CLOSED SESSION ANNOUNCEMENT
Pursuant to Municipal Code Section 2.04.020, regular city council meetings are set to begin at 6:30 p.m., since there are no closed session items scheduled, the council will continue with the proceedings of this meeting without any break for closed session.

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 the Education Ad Hoc Committee and Rent Control Ad Hoc Committee meetings (page 9)

City of Cudahy
City Council and Successor Agency
Regular Meeting Agenda
February 21, 2023, at 6:30 P.M.

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.) A. Consideration Approval of the Local Agency Investment Fund (LAIF) for the Month of January 2023 (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 January 2023 in the amount of $11,320,218.61.

B. Adoption of the City Demands and Payroll Including Statement of Investment for the Month of January 2023 (page 15)
Presented by the Finance Director
Recommendation: The City Council is requested to approve the Demands and Payroll in the amount of $1,361,705.72 including the Statement of Investments for the month of January 2023.

C. Informational Item – ARPA Utilization Plan Monthly Report (January 2023) (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 January 2023.

City of Cudahy
City Council and Successor Agency
Regular Meeting Agenda
February 21, 2023, at 6:30 P.M.

D. Consideration to Review and Approve the Draft Minutes of February 7, 2023, 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 February 7, 2023.

15. PUBLIC HEARING – NONE

16. BUSINESS SESSION
A. Consideration to Award a Professional Services Agreement to Global Reach Strategies (GRS) for Cannabis Consulting Services (page 39)
Presented by the Community Development Director
Recommendation: The City Council is requested to approve the following:

1. Award a professional services agreement to Global Reach Strategies (GRS) for cannabis consulting services and;

2. Adopt Resolution No. 23-06 to augment the Fiscal Year 22-23 City Budget, appropriating an additional $75,000.00 for Cannabis Consulting Services.

B. Consideration to Adopt Resolution No. 23-07, Establishing Policies and Procedures for the Naming of City Owned Land, Building, and Facilities (page 861) Presented by the Administrative Services Director
Recommendation: The City Council is requested to adopt Resolution No. 23-07, to establish policies and procedures for the naming of city owned land, building, and facilities.

C. Teleconference Meetings After Termination of California Emergency Declaration (page 873) Presented by the City Attorney
Recommendation: The City Council is requested to direct staff to continue teleconference meeting accommodations for public participation following recission of

City of Cudahy
City Council and Successor Agency
Regular Meeting Agenda
February 21, 2023, at 6:30 P.M.

the statewide declaration of emergency resulting from the spread of COVID-19 set to expire on February 28, 2023, and establish a policy that only the first two members of the Council, commission, or standing committee, to notify the City Manager or City Clerk of a teleconference participation request, will be granted teleconference meeting privileges under AB 2449.

D. Adoption by First Reading of Ordinance No. 732 Amending Section 2.16.020 (Director of Finance) of Chapter 2.16 (Director of Finance) and Section 2.24.010 (City Treasurer) of Chapter 2.24 (City Treasurer) of Title 2 (Administration and Personnel) of the Cudahy Municipal Code (page 877) Presented by the City Attorney
Recommendation: The City Council is requested to adopt by first reading Ordinance No. 732, Amending Section 2.16.020 (Director of Finance) of Chapter 2.16 (Director of Finance) and Section 2.24.010 (City Treasurer) of Chapter 2.24 (City Treasurer) of Title 2 (Administration and Personnel) of the Cudahy Municipal Code.

E. Adoption by First Reading of Ordinance No. 733 Amending Section 20.84.260 (Allowed Temporary Uses) of Part 4 (Temporary Use Permits) of Chapter 20.84 (Permit Procedures) of Title 20 (Zoning) of the Cudahy Municipal Code (page 883)
Presented by the City Attorney
Recommendation: The City Council is requested to adopt by first reading Ordinance No. 733, Amending Section 20.84.260 (Allowed Temporary Uses) of Part 4 (Temporary Use Permits) of Chapter 20.84 (Permit Procedures) of Title 20 (Zoning) of the Cudahy Municipal Code.

F. Consideration to Appoint Board Members to the Planning Commission (page 889) 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
A. Council Member Gonzalez
i. Discuss the format of the council agenda overall.

City of Cudahy
City Council and Successor Agency
Regular Meeting Agenda
February 21, 2023, at 6:30 P.M.

B. Council Member Alcantar
i. Discuss vendor registration, fees, and enforcement.

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 16th day of February 2023
Richard Iglesias
City Clerk

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“Serving The People” "Sirviendo A La Comunidad"
Staff Report
02/21/2023 Page 1 of 1

AD HOC COMMITTEE UPDATES
Date: February 21, 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
EDUCATION AD HOC COMMITTEE – MAYOR LOMELÍ AND COUNCIL MEMBER C. GONZALEZ On February 8, 2023, Ad Hoc Committee members discussed the presentation, workgroup relationships, and the next meeting date.

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

LANDLORD SUSIE DE SANTIAGO, RESIDENTS TEVINA QUINTANA AND IRMA LOPEZ On February 9, 2023, the Rent Control Ad Hoc Committee met and discussed rental units covered under proposed rent control, exemptions, max rent increase within 12 months, the appeal process, legal standpoints, and the next meeting date.

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Staff Report
02/21/2023 Page 1 of 2

STAFF REPORT
Date: February 21, 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 January 2023

RECOMMENDATION
The City Council is requested to approve the Local Agency Investment Fund (LAIF) Report for the month of January 2023 in the amount of $11,320,218.61.

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 January 1, 2023, the balance in LAIF was $11,261,389.49 (See Attachment).

4. In January 2023, $58,829.12 in interest was received for the quarter ended December 31, 2022.

5. On January 31, 2023, the balance in LAIF was $11,320,218.61 (See Attachment).

ANALYSIS
Item Number
14A

“Serving The People” "Sirviendo A La Comunidad"
Staff Report
02/21/2023 Page 2 of 2

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 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

LOCAL AGENCY INVESTMENT FUND
General Account - City #98-19-225
Beginning Balance as of January 01, 2023 $11,261,389.49 LAIF Interest earned 58,829.12
Transfer from City operating account 0
Transfer to City operating account 0
Ending Balance as of January 31, 2023 $11,320,218.61
Attachment A

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“Serving The People” "Sirviendo A La Comunidad"
Staff Report
02/21/2023 Page 1 of 2

STAFF REPORT
Date: February 21, 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 January 2023

RECOMMENDATION
The City Council is requested to approve the Demands and Payroll in the amount of $1,361,705.72 including the Statement of Investments for the month of January 2023.

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 $1,012,413.70
Payroll Warrants 349,292.02
Total: $1,361,705.72
Attachment A
Attachment B
Item Number
14B

“Serving The People” "Sirviendo A La Comunidad"
Staff Report
02/21/2023 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

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: 8:53 am
Date: 02/07/2023
Void/Stop
Date
Reconcile
Date
WELLS FARGO BANK Checks
ADVANCED IMAGING 330.15

SOLUTIONS
53753 01/04/23 Printed 10603 Kyocera/4053ci & 7353ci B/W & Color 11/20 to 12/19/22
53754 01/04/23 Printed 1778 ALL CITY MANAGEMENT School Crossing Guard Services 10/30 - 8,200.83 11/12/22
53755 01/04/23 Printed 10133 AVANT-GARDE, INC. CDBG Administration Housing Rehab 2,130.00 53756 01/04/23 Printed 10716 CARLOS J CONDE 50% of fee to be given arfter mural is 2,750.00 completed
53757 01/04/23 Printed 10716 CARLOS J CONDE 50% of fee for deposit before mural is 2,750.00 completed
CARPENTER ROTHANS & 3,687.25
DUPONT
53758 01/04/23 Printed 10714 Legal Services Rendered
53759 01/04/23 Printed 5365 CITY OF BELL Salvation Army shelter bed prg July thru 6,947.00 Sept 2022
53760 01/04/23 Printed 10576 CIVICPLUS Annual Charge 4,725.00 53761 01/04/23 Printed 10711 CLEARNETWORK, INC. Computer endpoint protection January 395.84 2023
53762 01/04/23 Printed 0186 COUNTY OF LOS ANGELES Housing Costs for the month of 8,584.46 November 2022
COUNTY OF LOS ANGELES 570.87

IND WAST
53763 01/04/23 Printed 1206 Project W0302010 November 2022 DAPEER, ROSENBLIT & 70.00
LITVAK
53764 01/04/23 Printed 10005 Municipal Code Enforcement 11/01/22 to 11/30/22
DEPARTMENT OF 1,007.42

INDUSTRIAL
53765 01/04/23 Printed 10747 Assesmnt for FY 22/23 using21/22 public annual reprt
53766 01/04/23 Printed 10723 DIONICIO SALAZAR Seniors - DJ and Karaoke December 400.00 2022
53767 01/04/23 Printed 10692 DS TECHNICIAN, INC. Preventive Maintenance Service 2 of 4 776.25 visits
53768 01/04/23 Printed 6087 FIRST AMERICAN DATA TREE Property Detail Report Services 12/01/22 99.00 to 12/31/22
HINDERLITER DELLAMAS & 637.34
ASST
53769 01/04/23 Printed 2139 Contract Services Trans Tax October to December 2022
LA COUNTY SHERIFF'S 350,623.49

DEPARTMENT
53770 01/04/23 Printed 0197 Law Enforcement Services November 2022
53771 01/04/23 Printed 6038 LGP EQUIPMENT RENTALS Rental of 2 light towers for tree lighting 751.06 event
PARTNERS IN DIVERSITY, 1,015.00
INC.
53772 01/04/23 Printed 10733 Gemma Cruz - 20 hrs Data Entry Clerk wk ending 12/18/22
53773 01/04/23 Printed 9717 PCAM, LLC Monthly Shuttle Services November 2022 18,224.28 53774 01/04/23 Printed 10414 REGISTRAR-RECORDER Candidate E. Alcantar Nov 8 2022 525.20 Election
RUGAMAS CREATIVE 28.00

SOLUTIONS
53775 01/04/23 Printed 10750 Written translation services english to spanish
53776 01/04/23 Printed 0071-1 SO CAL GAS Acct# 041 883 6870 0 7810 Otis Ave 36.88 Meter# 10526938
53777 01/04/23 Printed 0071-1 SO CAL GAS Acct# 016 800 7800 1 5220 Santa Ana St 73.28 53778 01/04/23 Printed 10749 SOCAL LIGHTING PROS Holiday Street Decorations Installation 8,250.00 SOUTHERN CALIFORNIA 1,017.31
EDISON
53779 01/04/23 Printed 0070 Acct# 700305960272 11/18/22 to 12/18/22
SOUTHERN CALIFORNIA 16.12
EDISON
53780 01/04/23 Printed 0070 Acct# 700675108122 5042 Live Oak Street
SOUTHERN CALIFORNIA 118.17
EDISON
53781 01/04/23 Printed 0070 Acct# 700555566837 08/03 to 09/28/22 SOUTHERN CALIFORNIA 7,795.76

NEWS GROUP
53782 01/04/23 Printed 10483-1 Advertising (public notice) 53783 01/04/23 Printed 10110 THE PIN CENTER City coin & die/mold 104.50 53784 01/04/23 Printed 8066 TYLER TECHNOLOGIES INC. Fundbalance to ERP Pro 10 Review data 14,449.90 and recon GL/AP
UNDERGROUND SERVICE 52.00

ALERT-SC
53785 01/04/23 Printed 2859 Monthly database maint New ticket charges12/22 qty 24
53786 01/04/23 Printed 10751 VERONICA HERNANDEZ 13.5 dozens of pork/cheese 430.00 tamales/Seniors
53787 01/04/23 Printed 9951 WILLDAN Water Quality November 2022 7,420.75 53788 01/04/23 Printed 10735 YUNEX, LLC. Traffic Signal Maint November 2022 3,360.36 53789 01/18/23 Printed 10672 5 STAR BUILDERS, INC. Changes to the City Hall cubicles 3,075.00 Installation
53790 01/18/23 Printed 2378-3 8330 ATLANTIC AVE INC Fuel for City Vehicle 12/11 to 12/31/22 1,713.40 Acct#00960
Attachment A

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: 8:53 am
Date: 02/07/2023
Void/Stop
Date
Reconcile
Date
WELLS FARGO BANK Checks
AMAZON CAPITAL SERVICES, 1,211.14
INC.
53791 01/18/23 Printed 10640 Supplies -12/13/22 to 01/16/23 Acct# ALK0BMX27WYXQ
AMERICAN CITY PEST & 457.00

TERMITE
53792 01/18/23 Printed 7995 Pest Control Serv Jan 2023 4835 Clara Street
53793 01/18/23 Printed 10595 ARAMSCO INC Liners - Lugo Park 1,851.92 53794 01/18/23 Printed 0057-4 AT & T Business Local 323-562-2005 Acct# 323 122.66 562 2005 521 2
53795 01/18/23 Printed 0057-4 AT & T Acct# 831-001-1071 968 12/16 to 14.04 01/15/23
AT & T LONG DISTANCE 46.04

SERVICE
53796 01/18/23 Printed 9966 Long dist 323-771-2072 acct# 018 087 5708 001
53797 01/18/23 Printed 8021 AT & T MOBILITY Mobility bill-12/3 to 01/2/23 Acct# 982.68 287293439262
53798 01/18/23 Printed 10499 BOXING 4 KIDS LA Boxing Instructor December 2022 652.50 53799 01/18/23 Printed 10490 CHARTER COMMUNICATIONS Acct# 8448 30 044 0431291 5220 Santa 547.95 Ana-12/12 to 01/11
CITY AND COUNTY 200.00

ENGINEERS
53800 01/18/23 Printed 10538 Annual Memebership for 2023 A.

Hernandez and J. Rodriguez
53801 01/18/23 Printed 0136 CITY OF SOUTH GATE Public Works Maint January 2023 75.00 53802 01/18/23 Printed 10723 DIONICIO SALAZAR DJ/Karaoke Sept 2022 reissued ck was 450.00 lost
53803 01/18/23 Printed 10485 ENTERPRISE FM TRUST Toy High & Ford Fusi January 23 Monthly 7,845.95 lease
FEDERAL EXPRESS 131.66

SERVICES
53804 01/18/23 Printed 0569 Fed Ex priority overnight Acct# 1125-2382-0
FIESTA TAXI COOPERATIVE 3,712.25
INC.
53805 01/18/23 Printed 10581 Monthly Dial a Ride Services December 2022
53806 01/18/23 Printed 2712 GEORGE A. PEREZ Reimbursement for Health Cover Dec 636.32 2022/Jan 2023
53807 01/18/23 Printed 4319 GLOBAL GATE CONTROLS 20 Linear 310mhz delta visor remote 438.95 53808 01/18/23 Printed 10472 GUTIERREZ PIPELINE, INC. Catch Basin Repair Repair Existing, 3,495.00 Broken catch
HOME DEPOT CREDIT 2,119.68

SERVICES
53809 01/18/23 Printed 2724 Hardware/Supplies Acct#6035 3225 0024 3625
53810 01/18/23 Printed 10703 HOUSE OF WINNERS, INC. Employee Service Plaque 104.74 53811 01/18/23 Printed 9723 IT SYSTEM HOUSE, LLC IT outsourcing monthly fee 12/01/22 - 3,200.00 12/31/22
53812 01/18/23 Printed 10394 KEENAN ASSOCIATES P&C Consulting 2022/2023 P&C Broker 45,000.00 Fee
LA COUNTY SHERIFF'S 350,623.49

DEPARTMENT
53813 01/18/23 Printed 0197 Law Enforcement Services December 2022
53814 01/18/23 Printed 10598 LEAF Kyocera Copier/Doc Fees December 422.70 2022
53815 01/18/23 Printed 10721 LOOMIS Armored Car Service 1/23/23 286.02 53816 01/18/23 Printed 10655 LUIS AGUILAR Embroidered uniform shirts for public 84.00 works
53817 01/18/23 Printed 10753 NADER ISKANDER Reimbursement for Plan Check #632 379.40 NATIONWIDE 9,420.30

ENVIRONMENTAL
53818 01/18/23 Printed 7014 Streets/Park Sweeping December 2022 ODP BUSINESS SOLUTIONS, 232.00
LLC
53819 01/18/23 Printed 10754 Office Supplies Acct#89762286 53820 01/18/23 Printed 10201-1 OLIVAREZ MADRUGA LAW December 2022 Legal Services Cudahy 43,806.25 Alliance for Justice
53821 01/18/23 Printed 10436 ONTARIO REFRIGERATION Maint 01/01/23 to 03/31/23 5220 Santa 2,390.00 Ana St
PARTNERS IN DIVERSITY, 435.00
INC.
53822 01/18/23 Printed 10733 Gemma Cruz - 15 hrs data entry week ending 01/08/23
53823 01/18/23 Printed 9717 PCAM, LLC Monthly Shuttle Services December 2022 18,950.61 QUADIENT FINANCE USA, 37.71
INC.
53824 01/18/23 Printed 10081-2 Postage 11/21 to 12/21/22 Acct# 7900 0440 3997 8501
53825 01/18/23 Printed 0071-1 SO CAL GAS Acct# 073 000 7400 7 4835 Clara St - 285.94 12/09 to 01/10
53826 01/18/23 Printed 10752 SOUTHEAST COMMUNITY Donation for Computer Equipment 5,000.00 Replacement
SOUTHERN CALIFORNIA 36.93
EDISON
53827 01/18/23 Printed 0070 Acct# 700731663364 12/07 to 01/05/23 SOUTHERN CALIFORNIA 17,423.14
EDISON
53828 01/18/23 Printed 0070 Acct# 700402348364 11/18 to 12/31/22

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: 8:53 am
Date: 02/07/2023
Void/Stop
Date
Reconcile
Date
WELLS FARGO BANK Checks
SOUTHERN CALIFORNIA 4,347.37
EDISON
53829 01/18/23 Printed 0070 Acct# 700253825503 11/09 to 12/31/22 53830 01/18/23 Printed 10592 SPARKLETTS Acct# 886209420520024 12/12/22 - 112.89 12/30/22
STAPLES BUSINESS 147.15

ADVANTAGE
53831 01/18/23 Printed 5647 Acct# AL 1876809 12/16/22 to 01/16/23 53832 01/18/23 Printed 10467 STEAMX, LLC SIGNAL HILL Trailer PW 1,065.30 53833 01/18/23 Printed 10599 TIERRA WEST ADVISORS INC COA Administration December 2022 195.00 53834 01/18/23 Printed 0079 TRACT 180 WATER COMPANY Water Services 11/01/22 to 12/31/22 2,002.30 TRACT 349 MUTUAL WATER 1,871.66
CO
53835 01/18/23 Printed 0078 Water Services 10/15 to 12/15/22 53836 01/18/23 Printed 2270 TRUJILLO AURELIO Reimbursement bought a tv and 1,182.97 accidentally used his own cc
53837 01/18/23 Printed 5631 WELLS LOCK & KEY Door Lock/Key Services 6 Maint, 6 Clara 760.00 F, 6 Clara B
53838 01/18/23 Printed 9951 WILLDAN Professional Services Rendered 6,485.25 December 2022
53839 01/18/23 Printed 10735 YUNEX, LLC. Traffic Signal Maint December 2022 7,992.97 Total Checks: 87 Checks Total (excluding void checks): 1,012,413.70 Total Payments: 87 Bank Total (excluding void checks): 1,012,413.70 Total Payments: 87 Grand Total (excluding void checks): 1,012,413.70

01/05/23 01/19/23 Total
(a) Direct Deposits 96,710.89 100,411.72 197,122.61
(b) ICMA Direct Deposit 3,310.00 3,310.00 6,620.00
(c) CalPERS Retirement 1,658.77 33,482.62 35,141.39
(d) Payroll taxes 19,593.50 20,760.20 40,353.70
(e) Medical 67,185.41 2,868.91 70,054.32
Total Amount 188,458.57 160,833.45 349,292.02
(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

ATTACHMENT C
Type Issuer Amount % of Total
Deposit - 4588 Wells Fargo 4,654,387.43 22.95%
Successor Agency - 0688 Wells Fargo 3,411,286.70 16.82% Checking - 7128 Wells Fargo 349,730.18 1.72%
Payroll - 4570 Wells Fargo 202,383.20 1.00%
Savings - 4752 Wells Fargo 330,244.46 1.63%
Money Market Account Bank of New York (BNY) (a) 10,599.13 0.05% Pooled Savings State Local Agency 11,320,218.61 55.82%
Investment Fund (LAIF)
Total 20,278,849.71 100.00%
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
01/31/2023

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 2,714,262.24 (d) 1,463,847.38
February 2023
March 2023
April 2023
May 2023
June 2023
Total: $ 13,742,647.01 13,503,083.39
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 Note (d) - Includes $1,628,225 in Motor Vehicle In-Lieu tax 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 2,377,440.36 (3) 1,266,258.83
February 2023
March 2023
April 2023
May 2023
June 2023
Total: $ 7,983,193.80 $ 8,482,483.05
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
Note (3) - Includes $1,628,225 in Motor Vehicle In-Lieu tax All Funds
General Fund
City of Cudahy
Summary of Cash Receipt/Disbursement by Month - FY 2022-2023 Attachment D

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

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“Serving The People” "Sirviendo A La Comunidad"
Staff Report
02/21/2023 Page 1 of 2

STAFF REPORT
Date: February 21, 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 (January 2023)

RECOMMENDATION
The City Council is requested to receive and file the ARPA Utilization Plan Monthly Report for the month of January 2023.

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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Staff Report
02/21/2023 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 January 2023, 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 – January 2023

City of Cudahy
American Rescue Plan Act (ARPA) - Utilization Plan
State and Local Fiscal Recovery Funds (SLFRF)
Status Financial Report - January 2023
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

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02/21/2023 Page 1 of 2

STAFF REPORT
Date: February 21, 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 February 7, 2023, 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 February 7, 2023.

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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Staff Report
02/21/2023 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 February 7, 2023.

FINANCIAL IMPACT
No Financial Impact.

ATTACHMENT
A. February 7, 2023
B. Resolution No. 16-38, approving the City Clerk’s use of Summary Action Minutes as the Official Record of the City Council proceedings.

City Council/Successor Agency Minutes of 2/7/2023 Page 1 of 6

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

HOUSING SUCCESSOR AGENCY TO THE CUDAHY

DEVELOPMENT COMMISSION JOINT MEETING
February 7, 2023 6:30 P.M.

1. CALL TO ORDER
Mayor / Chair Lomeli called the meeting to order at 6:33 p.m.

2. ROLL CALL
PRESENT: Council / Agency Member Cynthia Gonzalez
Council / Agency Member Martin Fuentes
Council / Agency Member Elizabeth Alcantar
Vice Mayor / Vice Chair Jose R. Gonzalez (joined 7:03 p.m.) Mayor / Chair Daisy Lomelí
ABSENT: None
ALSO PRESENT: City Manager, Alfonso Noyola, 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, Management Analyst, Andres Rangel, Executive Assistant, Janet Andrade

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

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

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 Carlos Conde, Jaime Velasco, and Teresa Hughes Elementary School
Attachment A Page 31 of 909
City Council/Successor Agency Minutes of 2/7/2023 Page 2 of 6

6. CLOSED SESSION PUBLIC COMMENTS – NONE
At 6:53 p.m. City Attorney, Stephanie Arechiga recessed to Closed session.

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
B. Closed Session Pursuant to Government Code Section 54956.9(e)(1) – Conference with Legal Counsel to Discuss Matter Involving Potential Litigation – One Matter

8. CLOSED SESSION ANNOUNCEMENT
At 7:34 p.m., City Attorney, Stephanie Arechiga reconvened to open session, announced direction to move the closed session to the end of the meeting.

9. PUBLIC COMMENTS
Susie de Santiago spoke on the reopening of the Lugo Park and asked Council to support Cudahy Youth foundation on waiving the fees for their firework stand.

10. CITY COUNCIL COMMENTS / REQUESTS FOR AGENDA ITEMS
Council Member Fuentes mentioned his participation in the League of California Cities conference and attendance at the reopening of the Tech Center at Lugo Park.

Council Member C. Gonzalez thanked everyone, asked staff to plan to address the City’s cleanliness, mentioned a possible way to track how Public Works is addressing the concerns with cleanliness through an application, and commented on the youth center workout area in the gym needing severe repairs.

Council Member Alcantar mentioned her attendance at the Assemblymember Pacheco swearing in ceremony, mural reveal, and Tech Center reopening, stated she will be speaking on a virtual platica with Latinas Lead, asked Council to consider adjourning the meeting in honor of Martha Fierro.

Vice Mayor J. Gonzalez thanked staff and spoked on the reopening of the Tech Center at Lugo Park.

Mayor Lomelí thanked staff, asked staff to use of Nixiel to share any resources not just city events, spoke on the mural reveal, grand reopening of the Tech Center, announced

City Council/Successor Agency Minutes of 2/7/2023 Page 3 of 6 Aztec dance group now practices on Thursdays, Poderosos a Pie walks on Monday and Wednesdays, thanked everyone who attend the Housing Rights workshops, worked with staff to have community clean-ups, and supports the adjournment of Martha Fierro and asked staff to invite Martha Fiero’s family to a future meeting to honor her.

11. CITY MANAGER REPORT (information only)
A. Parking Citations Reporting

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
Council Member Alcantar spoke on Rent Control Ad Hoc having a meeting next Thursday getting closer to more detail, thanked staff and for the best practices they have seen regarding rent control.

Council Member C. Gonzalez going through policies, lessons learned, and protect the most vulnerable residents in the community whether renter or landlords.

13. WAIVER OF FULL READING OF RESOLUTIONS AND ORDINANCES Motion: Council Member Alcantar motioned to waive full reading of resolutions and ordinances, seconded by Council Member Fuentes. Motion passed 5-0 by the following roll call vote:

AYES: C. Gonzalez, Fuentes, Alcantar, J. Gonzalez, and Lomelí NOES: None
ABSENT: None
ABSTAIN: None

14. CONSENT CALENDAR
A. Consideration to Review and Approve the Draft Minutes of January 10, 2023, Special Meeting and January 17, 2023, 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
Presented by the City Clerk
Recommendation: The City Council is requested to review and approve the City Council / Successor Agency Draft Minutes for January 10, 2023, and January 17, 2023.

B. Approval of Proposed Resolution No. 23-04 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 Council/Successor Agency Minutes of 2/7/2023 Page 4 of 6 City Boards, and all Commissions of the City of Cudahy, for the Period from February 7, 2023, through February 28, 2023, Pursuant to Brown Act Provisions Presented by the City Attorney
Recommendation: The City Council is requested to approve proposed Resolution No. 23-04 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 February 7, 2023, through February 28, 2023, pursuant to Ralph M. Brown Act provisions.

C. Consideration to Amend the Scope of the Public Utilities Ad Hoc Committee Presented by the City Clerk
Recommendation: The City Council is requested to amend the scope of the Public Utilities Ad Hoc Committee to the Water Ad Hoc Committee.

D. Consideration to Dissolve Inactive Ad Hoc Committees Presented by the City Clerk
Recommendation: The City Council is requested to consider dissolving inactive Ad Hoc Committees.

Motion: Vice Mayor J.Gonzalez motioned to approve Consent Calendar items, seconded by Council Member Alcantar. Motion passed 5-0 by the following roll call vote:

AYES: C. Gonzalez, Fuentes, Alcantar, J. Gonzalez, and Lomelí NOES: None
ABSENT: None
ABSTAIN: None

15. PUBLIC HEARING
A. City of Cudahy 6th Cycle Housing Element Update
Presented by the Community Development Director
Recommendation: Staff recommends that The City Council hear staff presentation on an update of the City’s Draft 6th Cycle Housing Element, open the floor for public comments and questions, and provide Council comments and questions to staff.

At 8:56 p.m. Mayor Lomelí opened public comment
Public Comments:

City Council/Successor Agency Minutes of 2/7/2023 Page 5 of 6 Susie de Santiago commented on the additional 400 units to meet the requirement, sees Cudahy as very densely populated, does not know where those units will be, and need to start looking into homes for people to buy.

At 9:02 p.m. Mayor Lomelí closed public comment.

DISCUSSION AND COMMENTS ONLY, NO MOTION

16. BUSINESS SESSION
A. Approval of a Professional Services Agreement (PSA) with the Law Offices of Glenn Ward Calsada Cannabis Regulation Consulting Services
Presented by the Management Analyst
Recommendation: The City Council is requested to approve a Professional Services Agreement (PSA) with the Law Offices of Glenn Ward Calsada Cannabis Regulation Consulting Services for cannabis-related activities in the City.

Motion: Council Member Fuentes motioned to approve a Professional Services Agreement (PSA) with the Law Offices of Glenn Ward Calsada Cannabis Regulation Consulting Services for cannabis-related activities in the City, seconded by Council Member Alcantar. Motion passed 5-0 by the following roll call vote:

AYES: C. Gonzalez, Fuentes, Alcantar, J. Gonzalez, and Lomelí NOES: None
ABSENT: None
ABSTAIN: None
B. Adoption of a Proposed Resolution No. 23-05 Amending the City of Cudahy Fiscal Year (FY) 2022-2023 City Budget
Presented by the Finance Director
Recommendation: The City Council is requested to Receive and file the Fiscal Year (FY) 2022-2023 Mid-Year Budget review and related reports; and Adopt proposed Resolution No. 23-05 amending the City of Cudahy Fiscal Year (FY) 2022-2023 City Budget.

Motion: Vice Mayor Gonzalez motioned to receive and file the Fiscal Year (FY) 2022- 2023 Mid-Year Budget review and related reports; and adopt proposed Resolution No. 23-05 amending the City of Cudahy Fiscal Year (FY) 2022-2023 City Budget, seconded by Council Member Fuentes. Motion passed 5-0 by the following roll call vote:

AYES: C. Gonzalez, Fuentes, Alcantar, J. Gonzalez, and Lomelí NOES: None
ABSENT: None
ABSTAIN: None

17. COUNCIL DISCUSSION – NONE

City Council/Successor Agency Minutes of 2/7/2023 Page 6 of 6 City Attorney, Stephanie Arechiga recessed to Closed session.

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
B. Closed Session Pursuant to Government Code Section 54956.9(e)(1) – Conference with Legal Counsel to Discuss Matter Involving Potential Litigation – One Matter

8. CLOSED SESSION ANNOUNCEMENT
City Attorney, Stephanie Arechiga reconvened to open session, announced direction was given to bring back both items to the next meeting, no further reportable action.

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

AYES: C. Gonzalez, Fuentes, Alcantar, J. Gonzalez, and Lomelí NOES: None
ABSENT: None
ABSTAIN: None

Daisy Lomelí
Mayor
ATTEST:

Richard Iglesias
City Clerk

Attachment B

“Serving The People” "Sirviendo A La Comunidad"
Staff Report
02/21/2023 Page 1 of 4

STAFF REPORT
Date: February 21, 2023
To: Honorable Mayor/Chair and City Council/Agency Members From: Alfonso Noyola, City Manager/Executive Director
By: Juan Arauz, Community Development Director
Subject: Consideration to Award a Professional Services Agreement to Global Reach Strategies (GRS) for Cannabis Consulting Services

RECOMMENDATION
The City Council is requested to approve the following:

1. Award a professional services agreement to Global Reach Strategies (GRS) for cannabis consulting services and;

2. Adopt Resolution No. 23-06 to augment the Fiscal Year 22-23 City Budget, appropriating an additional $75,000.00 for Cannabis Consulting Services.

BACKGROUND

1. On December 20, 2022 the City certified the 2022 General Election results. Consequently, Measure BA was certified and approved allowing for up to two licenses within the City for retail cannabis, with a 15% tax on gross receipts, a minimum 600 foot distance buffer from certain sensitive receptors.

2. On December 20, 2022, the City Council adopted Ordinance No. 730 implementing rules and regulations for retail cannabis pursuant to voter approved Measure BA. Accordingly, within ninety (90) days following the adoption of Ordinance No. 730, the City shall, as a ministerial action, make available the necessary forms, adopt any necessary application rules for the submission, intake, review, and approval of retail cannabis business license applications.

3. On December 28, 2022, the City released a Request for Proposal (RFP) to solicit cannabis consulting services in an effort to manage the processing of cannabis retail business license Item Number
16A

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Staff Report
02/21/2023 Page 2 of 4

applications in accordance to Ordinance No. 730.

4. On January 20, 2023, the proposal submission window closed. A total of four proposals were received.

5. City staff from the departments of Community Development, City Manager’s Office, and Finance evaluated and scored the four proposals received. After review, Global Reach Strategies (GRS) was ranked highest among all proposals.

6. On February 16, 2023, the City notified GRS that it would recommend a contract award to City Council on the February 21, 2023, Council Meeting.

ANALYSIS
In order to address the need to regulate commercial cannabis business in the City due to the approval of Measure BA, the City solicited cannabis consulting services to regulate and monitor future cannabis retailers that apply to establish a business within the City.

The voter approval of Measure BA allowed for the permitting of two (2) retail cannabis business permits. As such, City staff solicited the services of an independent third party to develop an application and ranking system for prospective applicants. On January 20, 2023 the proposal submission window closed, and four total proposals were submitted. Subsequently, a three person panel evaluated the four submitted proposal based on four criteria as outlined in the RFP:

Criteria Points
Expertise, Experience & Training 40
Project Approach 25
Fee/Rate Schedule 20
RFP Compliance 15
Total 100
Based on these four criteria, GRS scored the highest amongst the three evaluators. Below, is a summary of submitted proposal rankings:

Firm Name Rater Average Ranking
GRS 91 1
Cana Business 80 2
PDG 79 3
SCI 78 4

“Serving The People” "Sirviendo A La Comunidad"
Staff Report
02/21/2023 Page 3 of 4

GRS provided a comprehensive approach to providing application process development, and application evaluation services.

If awarded, the proposed scope or work would be the following:

Application Process Development
GRS would develop an application process by working with staff to set clear selection criteria of regulations and guidelines and efficient ways of tracking, monitoring, and collecting data from applicants. It would also identify an exacting methodology to ensure licenses are issued promptly so that the state and its various jurisdictions can realize the benefit of tax revenue in a timely manner.

Regulatory Compliance
GRS would ensure cannabis applicants accurately and successfully completed state and local applications. We use our resources to assist with local, state, and federal tax regulation and cannabis policies and teach applicants how to follow regulations for quality control and accounting practices for local, state, and federal requirements.

Evaluation
GRS utilizes would take a statistical methodology that includes a review of laws, policies, and regulations, analysis, and use of tracking software to ensure that all applications are reviewed and meet equity criteria.

CONCLUSION
To assist the City meet all the requirements of Ordinance No. 730, the City recommends the City Council to award a professional services agreement to GRS.

STRATEGIC PLAN CORRELATION
No correlation to the strategic plan.

FINANCIAL IMPACT
Approval of this professional services agreement would result in expending $75,000 from the general fund. These funds are fully reimbursable through cannabis application fees.

“Serving The People” "Sirviendo A La Comunidad"
Staff Report
02/21/2023 Page 4 of 4

ATTACHMENTS
A. Cannabis Consulting Service RFP
B. Submitted Proposals
C. Service Agreement between GRS and City of Cudahy
D. Resolution No. 23-06

REQUEST FOR PROPOSALS (RFP)

CITY OF CUDAHY

CANNABIS

CONSULTING SERVICES

COMMUNITY DEVELOPMENT DEPARTMENT
5220 SANTA ANA STREET
CUDAHY, CA 90201
T: (323) 773-5143
https://www.cityofcudahy.com

IMPORTANT DATES
RFP ISSUED December 28, 2022
REQUEST FOR INFORMATION DEADLINE: 5:00 PM January 9, 2023 RELEASE OF INFORMATION REQUESTED January 11, 2023
PROPOSAL DUE DATE/SUBMISSION DEADLINE: 5:00 PM January 20, 2023 Attachment A Page 43 of 909

REQUEST FOR PROPOSALS

TO PROVIDE

CANNABIS CONSULTING SERVICES

TABLE OF CONTENTS

1.0 NOTICE INVITING PROPOSALS AND OVERVIEW......................................................................................... 2

2.0 BACKGROUND........................................................................................................................................... 2

3.0 SCHEDULE OF EVENTS ............................................................................................................................... 3

4.0 SCOPE OF SERVICES................................................................................................................................... 3

5.0 SUBMITTAL REQUIREMENTS ..................................................................................................................... 4

6.0 CONTRACT ADMINISTRATION................................................................................................................... 7

7.0 QUESTIONS AND ADDENDA ...................................................................................................................... 7

8.0 PROPOSER’S RESPONSIBILITIES ................................................................................................................. 7

9.0 PROPOSAL FORMAT .................................................................................................................................. 7

10.0 EVALUATION CRITERIA.............................................................................................................................. 9

11.0 SELECTION PROCESS.................................................................................................................................. 9 EXHIBIT 1 – PROFESSIONAL SERVICES AGREEMENT SAMPLE
EXHIBIT 2 – FALSE CLAIMS/FALSE CLAIMS ACT CERTIFICATION EXHIBIT 3 – DEBARMENTS
EXHIBIT 4 – LITIGATION HISTORY/CIVIL LITIGATION CERTIFICATION EXHIBIT 5 – CONFLICT OF INTEREST DISCLOSURE STATEMENT
EXHIBIT 6 – CITY OF CUDAHY RESOLUTION NO. 22-24, DECEMBER 20, 2022. (CMC CHAPTER 5.30)

1.0 Notice Inviting Proposals and Overview
PUBLIC NOTICE IS HEREBY GIVEN: that proposals will be received by the City of Cudahy (the “City”) until January 20, 2023. Proposals received after this date will be rejected by the City.

The City is soliciting proposals from qualified cannabis consulting firms (the “Consultant”) to manage the processing of Cannabis Retailer Business Applications in accordance with Cudahy Municipal Code (CMC) Chapter 5.30 (Cannabis Retailers) and this Request for Proposals (RFP). The City intends to award the Consultant a professional Service Agreement (the “Agreement”) for such efforts.

The City anticipates selecting a firm to provide consulting services on an on-call basis. The consultant(s) selected will be responsible for managing the processing of Commercial Cannabis Business Applications, including assisting City staff prepare application materials, developing an objective scoring rubric in collaboration with City staff, completing a merit based evaluation process for applicants, regular interface with City staff and other City consultants, and attendance at regularly scheduled coordination meetings as necessary when work is in progress. Additionally, the consultant may be requested to present findings to the City Council, Planning Commission and the community.

All responses to this RFP are due to the City by 5:00 P.M. Friday, January 20, 2023 ( the “Submission Deadline.”)

2.0 Background
Incorporated as a general law city in 1960, the City of Cudahy is located approximately 10 miles east of downtown Los Angeles, with a population of almost 23,000. The City is administered by a Council/Manager form of government, encompassing an area of approximately 1.23 square miles with a total annual City budget of approximately $27 million for Fiscal Year 2022/2023, with the General Fund portion of the budget totaling approximately $12.1 million.

On November 8, 2016, California voters approved Proposition 64, The Control, Regulate, and Tax Adult Use of Marijuana Act (AUMA). Some of the provisions within this Act took effect immediately to include legalized possession, transport, purchase, use, and transfer of recreational marijuana for individuals 21 years of age or older and adult possession.

Cudahy Municipal Code Chapter 5.30 establishes the regulations and standards for retail cannabis business activities in the City. The voters of the City approved Chapter 5.30 through Measure BA on November 8, 2022 (the “Initiative.”) The City Council certified the passage of the Initiative on December 20, 2022, which will go into effect on December 30, 2022. (EXHIBIT 6) Limits on the number of Retail Cannabis Business Permits allow for no more than two (2) retail dispensary permitees.

3.0 Schedule of Events
The RFP selection process will be governed by the following schedule:

Release of RFP December 28, 2022
Deadline for Written Questions January 9, 2023 at 5:00 PM Responses to Questions Posted Online January 11, 2023
Proposals Due January 20, 2023 by 5:00 PM
Approval of Contract (tentative) February 7, 2023
The above scheduled dates are tentative, and the City retains the sole discretion to adjust the above schedule. Nothing set forth herein shall be deemed to bind City to award a contract for the Professional Services described herein. The City retains the sole discretion to cancel or modify any part of or all of this RFP at any time.

4.0 Scope of Services
This RFP contains two (2) components.

Proposals may respond to any or all components of the RFP. Each component will be scored separately under the Evaluation Criteria (See Section 10.) The City may award contract to different consultants based on experience and expertise. The Consultant(s) shall perform the certain services described below.

COMPONENT I

4.1 Application Regulations, Guidelines, Forms, Evaluation Criteria and Scoring Rubric Development. Advise and assist City staff prepare application submittal guidelines, meritbased and objective evaluation criteria, point-based scoring rubric which complies with final scoring criteria, required forms, and necessary implementing City Cannabis Regulations.

Consultant should emphasize the use of industry best-practices and foresee potential administrative drawbacks.
o Evaluation Criteria and Application Submittal Guidelines. In collaboration with City staff, the Consultant shall assist the development of merit-based and objective evaluation criteria, inclusive of a list of documents, plans, narratives and other supporting material necessary for applications to be evaluated. The final criteria shall meet the requirements of the Initiative and will be combined with application instructions to create a single document (the “Application Submittal Guidelines.”)
o Application Form. Consultant shall assist staff prepare a standard application form for Commercial Cannabis Business Permits.
o Development of Cannabis Regulations and Publishing of Materials. Consultant shall assist City staff develop City Cannabis Regulations to effectuate the new application process and ongoing operations. City Cannabis Regulations, final forms and application materials shall be published on the City’s website no later than Monday, March 20, 2023.

4.2 Compliance Monitoring. Monitor cannabis businesses and facilities to ensure compliance with all applicable laws (i.e. CMC Chapter 5.30, State laws, etc.) o Building Plan Checks: Perform building plan check in compliance with approved cannabis application and State cannabis laws.
o Onsite facility inspections: Perform onsite inspections to ensure cannabis businesses are in compliance with City Initiative and State cannabis laws. o Financial Audits: Conduct financial audits of cannabis businesses; confirm sales and inventory compliance; ensure cannabis businesses are in compliance with applicable business and cannabis tax reporting.
o Ongoing Support: Provide the City with ongoing technical support and policy expertise based on the cannabis industry and applicable laws.

COMPONENT II

4.3 Application Evaluation. Conduct an independent review of each Commercial Cannabis Business License Application in accordance with adopted application materials. o Utilizing the point-based scoring rubric developed under Section 4.1, Consultant shall independently evaluate, score and rank applications which have been deemed completed by City staff.
o Consultant shall conduct and complete said evaluation of applications within seventy-five (75) calendar days of receiving the applications from the City. o Consultant shall provide the City with scoring sheets for each application with comments justifying the scores for each evaluation criteria.

5.0 Submittal Requirements
Proposals must be submitted using the following methods:

Two (2) printed copies and one (1) electronic copy (USB drive) of the proposal must be received prior to the Submission Deadline. Proposals shall be submitted to the following address:

City of Cudahy
C/O: Office of the City Clerk
5220 Santa Ana Street
Cudahy, CA 90201
Attn: Juan Arauz
Director of Community Development
Subject: RFP – Cannabis Consulting Services

Proposals may be submitted via personal delivery, overnight courier (e.g., FedEx or UPS) or U.S. Mail.

Proposals must be received by or before the Submission Deadline. Proposals that are deposited with an overnight courier or post marked prior to the Submission Deadline but received after the Submission Deadline will not be considered by the City.

Submitted proposals shall be maintained as confidential records of the City up to the Submission Deadline.

Proposers may withdraw, modify and/or resubmit a proposal prior to the Submission Deadline but not after. Proposers shall be bound to the terms of their proposal following the Submission Deadline, however, the City, in its sole and absolute discretion, reserves the right to accept post deadline modifications if it is determined that such modifications are in the best interests of the City. The City also reserves the right to waive minor non-substantive informalities or allow the proposer to correct them.

5.1 Proposers shall be solely and exclusively responsible for all costs incurred in connection with the preparation and submission of the proposals; demonstrations; interviews; preparation of responses to questions and requests for additional information; for contract discussions; or for anything in any way related to this RFP. The City is not liable for any costs incurred by a proposer in response to this RFP. Whether or not a proposer is awarded a contract pursuant to this RFP, no proposer shall be entitled to reimbursement for any costs or expenses associated with the proposer’s participation in this RFP process.

5.2 Late proposals will not be considered.

5.3 The City reserves the right to reject any and all proposals received as a result of this RFP. The City’s potential award of a contract(s) will not be based on any single factor nor will it be based solely or exclusively on the lowest cost proposal. If a contract(s) is awarded, it will be awarded to the proposer(s) who in the judgment of the City has presented an optimal balance of relevant experience, technical expertise, price, quality of service, work history and other factors which the City may consider relevant and important in determining which proposal(s) is best for the City.

5.4 The City reserves the right to cancel or modify this RFP. There is no guarantee that the City will award contract.

5.5 City reserves the right to investigate the qualifications of any proposer under consideration including proposed subcontractors and parties otherwise related to the proposer and require confirmation of information furnished by a proposer, or require additional evidence of experience and qualifications to provide the services or otherwise discharge the obligations required by this RFP.

5.6 The City, pursuant to the California Public Records Act (Govt. Code Section 6250 et seq.) reserves the right to make copies of all submitted proposals available for inspection and copying by any interested member of the public, except to the limited extent the City determines that any information contained in a proposal is legally privileged under the California Public Records Act. By submission of a proposal, proposers acknowledge and agree

that their proposal and any information contained therein may be disclosed by the City to interested members of the public, including other proposers.

5.7 City reserves the right to approve or disapprove of particular subcontractors, joint venture partners, or other proposed team members.

5.8 The City reserves the right to evaluate responses in terms of the best interests of the City, applying criteria provided in this RFP and any other criteria the City, in its sole discretion, deems pertinent.

5.9 By the submission of a proposal, each proposer accepts and agrees to execute a written Professional Services Agreement (PSA) in the form attached hereto as Exhibit 1. By submission of a proposal, each proposer agrees to execute a PSA with the City in the form attached hereto as Exhibit 1, inclusive of all stated terms and conditions relating to indemnification, required insurance and standard of care requirements. If a proposer is unable to agree to any of the terms or conditions of the PSA in the form attached hereto, the proposer must identify the provision(s) in question and provide an explanation as to why the proposer cannot comply with such provisions. If a proposers objection to a certain provision of the PSA is merely a question of added cost, the proposer shall indicate in the proposal the difference in cost associated with complying with the provision(s) versus the cost associated with the City’s waiver or modification of the provision(s). The City shall be under no obligation to make modifications to the PSA after a contract has been awarded and proposers shall be deemed to have incorporated all costs associated with compliance with the PSA into their proposal. A proposer’s inability to comply with one or more provisions of the PSA shall be a factor that will be considered by the City in determining which proposal will serve the best interest of the City when all other factors are taken into account.

5.10 All proposals must remain valid for a minimum period of ninety (90) calendar days after the Submission Deadline. Responses may not be modified or withdrawn by the proposer during this period of time except in accordance with this RFP and with written permission granted by the City.

5.11 Proposer is solely responsible for “on time” submission of their proposal. The City Clerk’s Office will not accept late proposals and no exceptions shall be made. Proposals will be time stamped by the City Clerk as they are received. The City will only accept physical submittals.

DO NOT FAX OR EMAIL.

5.12 Proposals will be accepted by the City by or before 5:00 P.M. (local time) on FRIDAY, JANUARY 20, 2023. Two (2) hard copies and one (1) digital copy on a USB Flash Drive shall be submitted to the City Clerk’s Office as described above.

6.0 Contract Administration
The Director of Community Development, or alternate designated representative, appointed by the City Manager, will be the contract administrator on behalf of the City.

7.0 Questions and Addenda

7.1 Project-specific questions or requests for clarification must be submitted in via e-mail to the Director of Community Development Juan Arauz at [email protected] by or before 5:00 P.M. (local time) MONDAY, JANUARY 9, 2023. All posted questions will be answered in writing and conveyed via written addenda to all Proposers via posting on the City’s website:
https://www.cityofcudahy.com/bids.aspx?bidID=13.

7.2 If it becomes necessary to revise any part of this RFP, an addendum(a) will be posted on the City’s website : https://www.cityofcudahy.com/bids.aspx?bidID=13. It shall be the sole responsibility of the proposer to check for any addenda to the RFP that may be issued by the City. Proposer shall include acknowledgement of any addenda with their proposal.

8.0 Proposer’s Responsibilities

8.1 It is presumed that each proposer has read and is thoroughly familiar with the scope of services to be performed under this RFP.

8.2 The proposer agrees that, if a contract is awarded to a proposer, the proposer shall make no claim against the City or any of the funding agencies because of any estimate or statement made by any employees, agents, or consultants of the City which may prove to be erroneous in any respect.

9.0 Proposal Format
The cover should clearly display the title of this RFP, “City of Cudahy Cannabis Consulting Services”. All proposals shall include the following information and comply with the associated page limit restrictions.

Note that 1 page includes the front side of an 8.5” x 11” sheet of paper and the cover does not constitute a page.

9.1 Cover Letter. 1-page cover letter signed by an officer of the firm, binding the proposer to all of the commitments made in the submittal. The letter shall include name, address and phone number of the person authorized to represent the proposer and shall include the following Statement:

I HAVE READ UNDERSTOOD, AND AGREED TO ALL STATEMENTS IN THIS

REQUEST FOR PROPOSALS AND ACKNOWLEDGE RECEIPT OF ALL

ADDENDUMS/AMENDMENTS AS WELL AS TO THE TERMS, CONDITIONS, AND ATTACHMENTS REFERENCED.

9.2 Executive Summary. Description of the proposer’s interest in the project, initial vision for the work, and relevant experience or background. Include contact information: name, title, company, address, phone, and email. (3000 characters maximum, including spaces)

9.3 Project Approach. Provide a detailed description of the approach and methodology to be used to accomplish the “Scope of Work” of this RFP. The methodology section should include:
a. An implementation plan that describes in detail (i) the methods, including controls by which proposer manages projects of the type sought by this RFP; (ii) methodology for soliciting and documenting views of internal and external stakeholders; (iii) and any other project management or implementation strategies or techniques that the proposer intends to employ in carrying out the work.
b. Detailed description of efforts proposer will undertake to achieve client satisfaction and to satisfy the requirements of the "Scope of Work" section. c. Overall timeline for each task.
d. Detailed description of specific tasks proposer will require from City staff. Explain what the respective roles of City staff and your staff would be to complete the tasks specified in the Scope of Work.

9.4 Firm Qualifications. Maximum 4-page qualifications on the proposer and its area(s) of professional expertise relevant to this RFP, with emphasis on contracting services which are similar to those listed under 1.0 Overview, 2.0 Background and 4.0 Scope of Services, above.

9.5 Proposer Qualifications and Experience. Maximum 3–page summary of the relevant experience, work sample, training, education and special certifications of the proposer’s personnel who will be performing the professional services contemplated under this RFP on the proposer’s behalf. Briefly discuss the proposer’s firm’s qualifications and experience with projects of a similar magnitude and nature. The summary shall also include the office location of key personnel proposed to work on this contract. Relevant experience can include your firm’s overall experience, experience with similar services for other cities and the experience of individuals on your proposed team. Show how your experience relates to the demands of this RFP.

9.6 Proposed Personnel. Maximum 2–page resume for each proposed personnel, if any, which may be providing the services. There shall be a designated primary contact with the City during the contract period and shall function in that capacity while employed by the firm. In addition, the City must approve changes of personnel.

9.7 References. Each proposal must include at least three (3) public agency references going back not more than five (5) years from the issuance of this RFP in which the proposer was engaged to provide services similar to those requested under this RFP. References should place an emphasis on past projects in which the personnel to be used by proposer for this project were deployed. The references should include the name, title and contact information of the public agency officer or employee responsible for overseeing the proposer’s work.

9.8 Fee Schedule. This should include payment expectations, hourly rates, anticipated hours of work, and other miscellaneous costs as applicable.

9.9 False Claims, Debarment and Civil Litigation History. Each proposer shall be required to complete and submit along with their proposal the certification forms relating to false claims,

debarment and civil litigation history which are attached here to as Exhibits 2, 3 and 4 respectively.

9.10 Conflict of Interest Disclosure Statement. Each proposer shall complete the Conflict of Interest Disclosure Statement attached hereto as Exhibit 5. City reserves the right to disqualify any proposer who fails to submit and/or sign the Conflict of Interest Disclosure Statement.

Proposers are directed to be reasonably thorough and detailed in listing and describing the nature of any relationship the proposer has with a Conflicted Consultant or a Potentially Adverse Client, as those terms are defined under the Conflict of Interest Disclosure Statement.

Similarly, proposers are directed to be reasonably thorough and detailed in describing what measures the proposer has taken to avoid, neutralize or mitigate a potential conflict.

10.0 Evaluation Criteria
Each proposal shall be evaluated on the basis of the proposer’s expertise and experience and the expertise of its key personnel along with prior contracting history, approach to the project, cost, and compliance with the RFP requirements including the terms of the attached PSA. Each such factor shall be weighted by the City as follows:

CATEGORIES MAXIMUM POSSIBLE POINTS

1. Expertise, Experience & Training 40

2. Project Approach 25

3. Fee/Rate Schedule 20

4. RFP Compliance 15
TOTAL POINTS 100

11.0 Selection Process
A selection committee comprised of City staff will review the proposals. Proposals will be ranked on qualifications and the selection committee may choose to interview several of the top ranked proposers.

However, at its sole discretion the selection committee may forego interviews and select a proposer solely based on the review of the proposals.

1 2022

PROFESSIONAL SERVICES AGREEMENT
(Engagement: CANNABIS CONSULTING SERVICES)
(Parties: INSERT CONSULTANT NAME and City of Cudahy)
THIS PROFESSIONAL SERVICES AGREEMENT (hereinafter, “Agreement”) is made and entered into this ___________ day of __________________ 2022 (hereinafter, the “Effective Date”) by and between the CITY OF CUDAHY, a municipal corporation (hereinafter, “CITY”) and INSERT CONSULTANT NAME, (hereinafter, “CONSULTANT”).

For the purposes of this Agreement, CITY and CONSULTANT may be referred to collectively by the capitalized term “Parties.” The capitalized term “Party” may refer to CITY or CONSULTANT interchangeably, as appropriate.

RECITALS
WHEREAS, CITY requires professional cannabis consulting services; and WHEREAS, CITY staff has determined that CONSULTANT possesses the experience, skills and training necessary to competently provide such services to CITY; and
WHEREAS, the execution of this Agreement was approved by the Cudahy City Council at its Regular Meeting of ___, 2023 under Agenda Item No. _____.

NOW, THEREFORE, for and in consideration of the mutual covenants and conditions herein contained, CITY and CONSULTANT agree as follows:

I.

ENGAGEMENT TERMS

1.1 TERM: This Agreement shall have a term commencing from the Effective Date through INSERT COMPLETION DATE (hereinafter, the “Term”). Nothing in this Section shall operate to prohibit or otherwise restrict the CITY’s ability to terminate this Agreement at any time for convenience or for cause as provided under Article V (Termination), below.

1.2 SCOPE OF SERVICES:

A. Subject to the terms and conditions of this Agreement, CONSULTANT agrees to provide the services and tasks described in that certain Request for Proposals of CITY entitled “Request for Proposal Cannabis Consulting Services” (hereinafter, “CITY RFP”) and the written proposal of CONSULTANT entitled “INSERT TITLE OF CONSULTANT PROPOSAL” (hereinafter, the “CONSULTANT Proposal”). The CITY RFP and the CONSULTANT Proposal are attached and incorporated hereto as Exhibit “A” and “B” respectively. The term “Scope of Work” shall be a collective

2 reference to the CITY RFP and the CONSULTANT Proposal. The capitalized term “Work” shall be a collective reference to all the various services and tasks referenced in the Scope of Work. In the event of any conflict or inconsistency between the provisions of the document entitled CITY RFP and the provisions of the document entitled CONSULTANT Proposal, the requirements of the document entitled CITY RFP shall govern and control but only to the extent of the conflict or inconsistency and no further. In the event of any conflict or inconsistency between the provisions of the Scope of Work and the provisions of this Agreement to which the Scope of Work is attached, the provisions of this Agreement shall govern and control.”

1.3 PROSECUTION OF WORK:

A. CONSULTANT shall perform the Work contemplated under this Agreement on an on-call, as-needed basis. Nothing in this Agreement shall be construed to grant CONSULTANT the exclusive right to perform any of the types of services or tasks contemplated under this Agreement nor shall anything in this Agreement be construed to entitle CONSULTANT to the receipt of any sums under this Agreement, except to the extent CITY requests the performance of any Work in the manner described below and such Work is in fact performed and completed by CONSULTANT and accepted by CITY. CITY requests for the performance of specific services or tasks contemplated under this Agreement shall be made in the form of a written work order(s) issued by the City Representative (each such written request hereinafter referred to as a “Work Order”). Each Work Order shall include the following information:

1. A detailed description of the specific services or tasks requested;

2. The location of where the particular services or tasks are to be performed, if applicable;

3. A not-to-exceed budget for performing the services or tasks;

4. A timeline for completing the requested services or tasks;

5. Any other information CITY deems necessary and relevant to the requested services or tasks; and

6. The signature of the City Representative, confirming that the services or tasks have been authorized by the City Representative.

B. CONSULTANT shall perform no Work under this Agreement without a written request from the City Representative, containing the information set forth in Section 1.3(A) above;
C. CONSULTANT shall perform the Work continuously and with due diligence so as to complete the Work by the completion date indicated in each Work Order. CONSULTANT shall cooperate with CITY and in no manner interfere with the work of CITY, its employees or other consultants, contractors or agents;

3 D. CONSULTANT shall not claim or be entitled to receive any compensation or damage because of the failure of CONSULTANT, or its subconsultants, to have related services or tasks completed in a timely manner; E. CONSULTANT shall at all times enforce strict discipline and good order among CONSULTANT’s employees; and
F. CONSULTANT, at its sole expense, shall pay all sales, consumer, use or other similar taxes required by law.

1.4 COMPENSATION: CONSULTANT shall perform the Work in accordance with the “INSERT TITLE OF COMPENSATION DOCUMENT” which is attached and incorporated hereto as Exhibit “C” (hereinafter, the “COMPENSATION RATE”).

The foregoing notwithstanding, CONSULTANT’s total compensation for the performance of all Work contemplated under this Agreement, will not exceed the aggregate budgeted sum of INSERT WRITTEN AMOUNT ($ INSERT NUMBER) (hereinafter, the “Not-to-Exceed Sum”) during the Term of this Agreement, unless such added expenditure is first approved by the City Council. In the event CONSULTANT’s charges are projected to exceed the Aggregate Not-to-Exceed Sum prior to the expiration of this Agreement, CITY may suspend CONSULTANT’s performance pending CITY approval of any anticipated expenditures in excess of the Aggregate Not-to-Exceed Sum or any other CITY approved amendment to the compensation terms of this Agreement.

1.5 PAYMENT OF COMPENSATION: The Not-to-Exceed Sum will be paid to CONSULTANT in monthly increments as the Work is completed. Following the conclusion of each calendar month, CONSULTANT will submit to CITY an itemized invoice indicating the services performed and tasks completed during the recently concluded calendar month, including services and tasks performed and the reimbursable out-of-pocket expenses incurred. If the amount of CONSULTANT’s monthly compensation is a function of hours worked by CONSULTANT’s personnel, the invoice should indicate the number of hours worked in the recently concluded calendar month, the persons responsible for performing the Work, the rate of compensation at which such services and tasks were performed, the subtotal for each task and service performed and a grand total for all services performed. Within thirty (30) calendar days of receipt of each invoice, CITY will notify CONSULTANT in writing of any disputed amounts included in the invoice.

Within forty-five (45) calendar days of receipt of each invoice, CITY will pay all undisputed amounts included on the invoice. CITY will not withhold applicable taxes or other authorized deductions from payments made to CONSULTANT.

1.6 ACCOUNTING RECORDS: CONSULTANT will maintain complete and accurate records with respect to all matters covered under this Agreement for a period of three (3) years after the expiration or termination of this Agreement. CITY will have the right to access and examine such records, without charge, during normal business hours. CITY will further have the right to audit such records, to make transcripts therefrom and to inspect all program data, documents, proceedings, and activities.

4 1.7 ABANDONMENT BY CONSULTANT: In the event CONSULTANT ceases to perform the Work agreed to under this Agreement or otherwise abandons the undertaking contemplated herein prior to the expiration of this Agreement or prior to completion of any or all tasks set forth in the Scope of Services, CONSULTANT will deliver to CITY immediately and without delay, all materials, records and other work product prepared or obtained by CONSULTANT in the performance of this Agreement. Furthermore, CONSULTANT will only be compensated for the reasonable value of the services, tasks and other Work performed up to the time of cessation or abandonment, less a deduction for any damages, costs or additional expenses which CITY may incur as a result of CONSULTANT’s cessation or abandonment.

II.

PERFORMANCE OF AGREEMENT

2.1 CITY’S REPRESENTATIVE: The CITY hereby designates Alfonso Noyola, City Manager (hereinafter, the “CITY Representative”) to act as its representative for the performance of this Agreement. The CITY Representative or their designee will act on behalf of the CITY for all purposes under this Agreement.

CONSULTANT will not accept directions or orders from any person other than the CITY Representative or their designee.

2.2 CONSULTANT REPRESENTATIVE: CONSULTANT hereby designates INSERT CONSULTANT REPRESENTATIVE to act as its representative for the performance of this Agreement (hereinafter, “CONSULTANT Representative”).

CONSULTANT Representative will have full authority to represent and act on behalf of the CONSULTANT for all purposes under this Agreement.

CONSULTANT Representative or HIS/HER designee will supervise and direct the performance of the Work, using his best skill and attention, and will be responsible for all means, methods, techniques, sequences and procedures and for the satisfactory coordination of all portions of the Work under this Agreement. Notice to the CONSULTANT Representative will constitute notice to CONSULTANT.

2.3 COORDINATION OF SERVICE; CONFORMANCE WITH REQUIREMENTS:

CONSULTANT agrees to work closely with CITY staff in the performance of the Work and this Agreement and will be available to CITY staff and the CITY Representative at all reasonable times. All work prepared by CONSULTANT will be subject to inspection and approval by CITY Representative or his or her designees.

2.4 STANDARD OF CARE; PERFORMANCE OF EMPLOYEES: CONSULTANT represents, acknowledges and agrees to the following:

A. CONSULTANT will perform all Work skillfully, competently and to the highest standards of CONSULTANT’s profession;
B. CONSULTANT shall at all times employ such force, plant, materials, and tools as will be sufficient in the opinion of the CITY to perform the Services within the time limits established, and as provided herein. It is understood

5 and agreed that said tools, equipment, apparatus, facilities, labor, and material shall be furnished and said Services performed and completed as required by the Agreement, and subject to the approval of the CITY’s authorized representative.

C. CONSULTANT will perform all Work in a manner reasonably satisfactory to the CITY;
D. CONSULTANT will comply with all applicable federal, state and local laws and regulations, including the conflict of interest provisions of Government Code Section 1090 and the Political Reform Act (Government Code Section 81000 et seq.) CONSULTANT shall be liable for all violations of such laws and regulations in connection with Services. If CONSULTANT performs any work knowing it to be contrary to such laws, rules and regulations, CONSULTANT shall be solely responsible for all costs arising therefrom; E. CONSULTANT understands the nature and scope of the Work to be performed under this Agreement as well as any and all schedules of performance;
F. All of CONSULTANT’s employees and agents possess sufficient skill, knowledge, training and experience to perform those services and tasks assigned to them by CONSULTANT; and
G. All of CONSULTANT’s employees and agents (including, but not limited to, subcontractors and subconsultants) possess all licenses, permits, certificates, qualifications and approvals of whatever nature that are legally required to perform the tasks and services contemplated under this Agreement and all such licenses, permits, certificates, qualifications and approvals will be maintained throughout the term of this Agreement and made available to CITY for copying and inspection.

The Parties acknowledge and agree that CONSULTANT will perform, at CONSULTANT’s own cost and expense and without any reimbursement from CITY, any services necessary to correct any errors or omissions caused by CONSULTANT’s failure to comply with the standard of care set forth under this Section or by any like failure on the part of CONSULTANT’s employees, agents, contractors, subcontractors and subconsultants. Such effort by CONSULTANT to correct any errors or omissions will be commenced immediately upon their discovery by either Party and will be completed within seven (7) calendars days from the date of discovery or such other extended period of time authorized by the CITY Representative in writing and in her sole and absolute discretion. The Parties acknowledge and agree that CITY’s acceptance of any work performed by CONSULTANT or on CONSULTANT’s behalf will not constitute a release of any deficiency or delay in performance. The Parties further acknowledge, understand and agree that CITY has relied upon the foregoing representations of CONSULTANT, including but not limited to the representation that CONSULTANT possesses the skills, training, knowledge and experience necessary to perform the Work skillfully, competently and to the highest standards of CONSULTANT’s

6 profession.

2.5 ASSIGNMENT: The skills, training, knowledge and experience of CONSULTANT are material to CITY’s willingness to enter into this Agreement. Accordingly, CITY has an interest in the qualifications and capabilities of the person(s) who will perform the services and tasks to be undertaken by CONSULTANT or on behalf of CONSULTANT in the performance of this Agreement. In recognition of this interest, CONSULTANT agrees that it will not assign or transfer, either directly or indirectly or by operation of law, this Agreement or the performance of any of CONSULTANT’s duties or obligations under this Agreement without the prior written consent of the CITY. In the absence of CITY’s prior written consent, any attempted assignment or transfer will be ineffective, null and void and will constitute a material breach of this Agreement.

2.6 SUBSTITUTION OF KEY PERSONNEL: CONSULTANT has represented to CITY that certain key personnel will perform and coordinate the Services under this Agreement. Should one or more of such personnel become unavailable, CONSULTANT may substitute other personnel of at least equal competence upon written approval of CITY. In the event that CITY and CONSULTANT cannot agree as to the substitution of key personnel, CITY shall be entitled to terminate this Agreement for cause. As discussed below, any personnel who fail or refuse to perform the Services in a manner acceptable to the CITY, or who are determined by the CITY to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project or a threat to the safety of persons or property, shall be promptly removed from the Project by the CONSULTANT at the request of the CITY.

2.7 CONTROL AND PAYMENT OF SUBORDINATES; INDEPENDENT
CONTRACTOR: The Work will be performed by CONSULTANT or under CONSULTANT’s strict supervision. CONSULTANT will determine the means, methods and details of performing the Work subject to the requirements of this Agreement. CITY retains CONSULTANT on an independent contractor basis and not as an employee. CONSULTANT reserves the right to perform similar or different services for other principals during the term of this Agreement, provided such work does not unduly interfere with CONSULTANT’s competent and timely performance of the Work contemplated under this Agreement and provided the performance of such services does not result in the unauthorized disclosure of CITY’s confidential or proprietary information. Any additional personnel performing the Work under this Agreement on behalf of CONSULTANT are not employees of CITY and will at all times be under CONSULTANT’s exclusive direction and control. CONSULTANT will pay all wages, salaries and other amounts due such personnel and will assume responsibility for all benefits, payroll taxes, Social Security and Medicare payments and the like. CONSULTANT will be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: Social Security taxes, income tax withholding, unemployment insurance, disability insurance, workers’ compensation insurance and the like.

2.8 REMOVAL OF EMPLOYEES OR AGENTS: If any of CONSULTANT’s officers,

7 employees, agents, contractors, subcontractors or subconsultants is determined by the CITY Representative to be uncooperative, incompetent, a threat to the adequate or timely performance of the tasks assigned to CONSULTANT, a threat to persons or property, or if any of CONSULTANT’s officers, employees, agents, contractors, subcontractors or subconsultants fail or refuse to perform the Work in a manner acceptable to the CITY, such officer, employee, agent, contractor, subcontractor or subconsultant will be promptly removed by CONSULTANT and will not be reassigned to perform any of the Work.

2.9 COMPLIANCE WITH LAWS: CONSULTANT will keep itself informed of and in compliance with all applicable federal, state or local laws to the extent such laws control or otherwise govern the performance of the Work. CONSULTANT’s compliance with applicable laws will include, without limitation, compliance with all applicable Cal/OSHA requirements and applicable regulations of the U.S.

Department of Housing and Urbanization.

2.10 NON-DISCRIMINATION: CONSULTANT represents that it is an equal opportunity employer and it shall not discriminate against any subconsultant, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex or age. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination.

2.11 INDEPENDENT CONTRACTOR STATUS: The Parties acknowledge, understand and agree that CONSULTANT and all persons retained or employed by CONSULTANT are, and will at all times remain, wholly independent contractors and are not officials, officers, employees, departments or subdivisions of CITY.

CONSULTANT will be solely responsible for the negligent acts and/or omissions of its employees, agents, contractors, subcontractors and subconsultants.

CONSULTANT and all persons retained or employed by CONSULTANT will have no authority, express or implied, to bind CITY in any manner, nor to incur any obligation, debt or liability of any kind on behalf of, or against, CITY, whether by contract or otherwise, unless such authority is expressly conferred to CONSULTANT under this Agreement or is otherwise expressly conferred by CITY in writing.

III.

INSURANCE

3.1 DUTY TO PROCURE AND MAINTAIN INSURANCE: Prior to the beginning of and throughout the duration of the Work, CONSULTANT will procure and maintain policies of insurance that meet the requirements and specifications set forth under this Article. CONSULTANT will procure and maintain the following insurance coverage, at its own expense:

A. Commercial General Liability Insurance: CONSULTANT will procure and maintain Commercial General Liability Insurance (“CGL Coverage”) as broad as Insurance Services Office Commercial General Liability coverage (occurrence Form CG 0001) or its equivalent. Such CGL Coverage will

8 have minimum limits of no less than One Million Dollars ($1,000,000.00) per occurrence and Two Million Dollars ($2,000,000.00) in the general aggregate for bodily injury, personal injury, property damage, operations, products and completed operations, and contractual liability.

B. Automobile Liability Insurance: CONSULTANT will procure and maintain Automobile Liability Insurance as broad as Insurance Services Office Form Number CA 0001 covering Automobile Liability, Code 1 (any auto). Such Automobile Liability Insurance will have minimum limits of no less than Two Million Dollars ($2,000,000.00) per accident for bodily injury and property damage.

C. Workers’ Compensation Insurance/ Employer’s Liability Insurance: A policy of workers’ compensation insurance in such amount as will fully comply with the laws of the State of California and which will indemnify, insure and provide legal defense for both CONSULTANT and CITY against any loss, claim or damage arising from any injuries or occupational diseases occurring to any worker employed by or any persons retained by CONSULTANT in the course of carrying out the Work contemplated in this Agreement.

D. Errors & Omissions Insurance: For the full term of this Agreement and for a period of three (3) years thereafter, CONSULTANT will procure and maintain Errors and Omissions Liability Insurance appropriate to CONSULTANT’s profession. Such coverage will have minimum limits of no less than Two Million Dollars ($2,000,000.00) per claim.

3.2 ADDITIONAL INSURED REQUIREMENTS: The CGL Coverage and the Automobile Liability Insurance will contain an endorsement naming the CITY and CITY’s elected and appointed officials, officers, employees, agents and volunteers as additional insureds.

3.3 REQUIRED CARRIER RATING: All varieties of insurance required under this Agreement will be procured from insurers admitted in the State of California and authorized to issue policies directly to California insureds. Except as otherwise provided elsewhere under this Article, all required insurance will be procured from insurers who, according to the latest edition of the Best’s Insurance Guide, have an A.M. Best’s rating of no less than A:VII. CITY may also accept policies procured by insurance carriers with a Standard & Poor’s rating of no less than BBB according to the latest published edition the Standard & Poor’s rating guide. As to Workers’ Compensation Insurance/ Employer’s Liability Insurance, the CITY Representative is authorized to authorize lower ratings than those set forth in this Section.

3.4 PRIMACY OF CONSULTANT’S INSURANCE: All policies of insurance provided by CONSULTANT will be primary to any coverage available to CITY or CITY’s elected or appointed officials, officers, employees, agents or volunteers. Any insurance or self-insurance maintained by CITY or CITY’s elected or appointed officials, officers, employees, agents or volunteers will be in excess of

9 CONSULTANT’s insurance and will not contribute with it.

3.5 WAIVER OF SUBROGATION: All insurance coverage provided pursuant to this Agreement will not prohibit CONSULTANT or CONSULTANT’s officers, employees, agents, subcontractors or subconsultants from waiving the right of subrogation prior to a loss. CONSULTANT hereby waives all rights of subrogation against CITY, its officials, officers, employees, agents and volunteers.

3.6 VERIFICATION OF COVERAGE: CONSULTANT acknowledges, understands and agrees, that CITY’s ability to verify the procurement and maintenance of the insurance required under this Article is critical to safeguarding CITY’s financial well-being and, indirectly, the collective well-being of the residents of the CITY.

Accordingly, CONSULTANT warrants, represents and agrees that it will furnish CITY with original certificates of insurance and endorsements evidencing the coverage required under this Article on forms satisfactory to CITY in its sole and absolute discretion. The certificates of insurance and endorsements for each insurance policy will be signed by a person authorized by that insurer to bind coverage on its behalf, and will be on forms provided by the CITY if requested. All certificates of insurance and endorsements will be received and approved by CITY as a condition precedent to CONSULTANT’s commencement of any Work or any of the Work. Upon CITY’s written request, CONSULTANT will also provide CITY with certified copies of all required insurance policies and endorsements.

3.7 The insurance coverage requirement set forth under this Article 3 are in addition to any coverage requirements set forth under Section INSERT SECTION (Insurance Coverages) of the CITY RFP.

3.8 FAILURE TO MAINTAIN COVERAGE: In the event any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced immediately so as to avoid a lapse in the required coverage, CITY has the right but not the duty to obtain the insurance it deems necessary, and any premium paid by CITY will be promptly reimbursed by CONTRACTOR or CITY will withhold amounts sufficient to pay premium from Consultant payments. In the alternative, CITY may cancel this Agreement effective upon notice.

3.9 SPECIAL RISKS OR CIRCUMSTANCES. City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.

IV.

INDEMNIFICATION

4.1 The Parties agree that CITY and CITY’s elected and appointed officials, officers, employees, agents and volunteers (hereinafter, the “CITY Indemnitees”) should, to the fullest extent permitted by law, be protected from any and all loss, injury, damage, claim, lawsuit, cost, expense, attorneys’ fees, litigation costs, or any other

10 cost arising out of or in any way related to the performance of this Agreement. Accordingly, the provisions of this indemnity provision are intended by the Parties to be interpreted and construed to provide the CITY Indemnitees with the fullest protection possible under the law. CONSULTANT acknowledges that CITY would not enter into this Agreement in the absence of CONSULTANT’s commitment to indemnify, defend and protect CITY as set forth herein Notwithstanding the foregoing, to the extent CONSULTANT’s services are subject to Civil Code Section 2782.8, the above indemnity shall be limited, to the extent required by Civil Code Section 2782.8, to Claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the CONSULTANT.

CONSULTANT’s obligation to indemnify shall not be restricted to insurance proceeds, if any, received by the CITY, its officials, officers, employees, agents or volunteers.

4.2 To the fullest extent permitted by law, CONSULTANT shall indemnify, hold harmless and defend the CITY Indemnitees from and against all liability, loss, damage, expense, cost (including without limitation reasonable attorneys’ fees, expert fees and all other costs, and fees of litigation) of every nature arising out of or in connection with CONSULTANT’s performance of work hereunder or its failure to comply with any of its obligations contained in this Agreement, except such loss or damage which is caused by the sole negligence or willful misconduct of the CITY.

4.3 CITY shall have the right to offset against the amount of any compensation due to CONSULTANT under this Agreement, any amount due to CITY from CONSULTANT as a result of CONSULTANT’s failure to either pay CITY promptly for any costs associated with CONSULTANT’s obligations to indemnify the CITY Indemnitees under this Article, or related to CONSULTANT’s failure to either (i) pay taxes on amounts received pursuant to this Agreement or (ii) comply with applicable workers’ compensation laws.

4.4 The obligations of CONSULTANT under this Article will not be limited by the provisions of any workers’ compensation act or similar act. CONSULTANT expressly waives its statutory immunity under such statutes or laws as to CITY and CITY’s elected and appointed officials, officers, employees, agents, and volunteers.

4.5 CONSULTANT agrees to obtain executed indemnity agreements with provisions identical to those set forth herein this Article from each and every subcontractor or any other person or entity involved by, for, with or on behalf of CONSULTANT in the performance of this Agreement. In the event CONSULTANT fails to obtain such indemnity obligations from others as required herein, CONSULTANT agrees to be fully responsible and indemnify, hold harmless and defend CITY and CITY’s elected and appointed officials, officers, employees, agents, and volunteers from and against any and all claims and losses, costs or expenses for any damage due to death or injury to any person and injury to any property resulting from any alleged intentional, reckless, negligent, or otherwise wrongful acts, errors or omissions of CONSULTANT’s subcontractors or any other person or entity involved by, for, with or on behalf of CONSULTANT in the performance of this

11 Agreement. Such costs and expenses shall include reasonable attorneys’ fees incurred by counsel of CITY’s choice.

4.6 CITY does not, and shall not waive any rights that it may possess against CONSULTANT because of the acceptance by CITY, or the deposit with CITY, of any insurance policy or certificate required pursuant to this Agreement. This hold harmless and indemnification provision shall apply regardless of whether or not any insurance policies are determined to be applicable to the claim, demand, damage, liability, loss, cost, or expense.

4.7 This Article and all provisions contained herein (including but not limited to the duty to indemnify, defend, and hold free and harmless) shall survive the termination or normal expiration of this Agreement and is in addition to any other rights or remedies which the CITY may have at law or in equity.

V.

TERMINATION

5.1 TERMINATION WITHOUT CAUSE: CITY may immediately terminate this Agreement at any time for convenience and without cause by giving prior written notice of CITY’s intent to terminate this Agreement which notice shall specify the effective date of such termination. Upon such termination for convenience, CONSULTANT will be compensated only for those services and tasks which have been performed by CONSULTANT up to the effective date of the termination.

CONSULTANT may not terminate this Agreement except for cause as provided under Section 5.2, below. If this Agreement is terminated as provided herein, CITY may require CONSULTANT to provide all finished or unfinished Documents and Data, as defined in section 6.1 below, and other information of any kind prepared by CONSULTANT in connection with the performance of the Work.

CONSULTANT will be required to provide such Documents and Data within fifteen (15) calendar days of CITY’s written request. No actual or asserted breach of this Agreement on the part of CITY pursuant to Section 5.2, below, will operate to prohibit or otherwise restrict CITY’s ability to terminate this Agreement for convenience as provided under this Section.

5.2 EVENTS OF DEFAULT; BREACH OF AGREEMENT:

A. In the event either Party fails to perform any duty, obligation, service or task set forth under this Agreement (or fails to timely perform or properly perform any such duty, obligation, service or task set forth under this Agreement), an event of default (hereinafter, “Event of Default”) will occur. For all Events of Default, the Party alleging an Event of Default will give written notice to the defaulting Party (hereinafter referred to as a “Default Notice”) which will specify: (i) the nature of the Event of Default; (ii) the action required to cure the Event of Default; (iii) a date by which the Event of Default will be cured, which will not be less than the applicable cure period set forth under Sections 5.2B and 5.2C below or if a cure is not reasonably possible within the applicable cure period, to begin such cure and diligently prosecute such cure to completion. The Event of Default will constitute a breach of this

12 Agreement if the defaulting Party fails to cure the Event of Default within the applicable cure period or any extended cure period allowed under this Agreement.

B. CONSULTANT will cure the following Events of Defaults within the following time periods:
i. Within ten (10) business days of CITY’s issuance of a Default Notice for any failure of CONSULTANT to timely provide CITY or CITY’s employees or agents with any information and/or written reports, documentation or work product which CONSULTANT is obligated to provide to CITY or CITY’s employees or agents under this Agreement.

Prior to the expiration of the 10-day cure period, CONSULTANT may submit a written request for additional time to cure the Event of Default upon a showing that CONSULTANT has commenced efforts to cure the Event of Default and that the Event of Default cannot be reasonably cured within the 10-day cure period. The foregoing notwithstanding, CITY will be under no obligation to grant additional time for the cure of an Event of Default under this Section 5.2B.i. that exceeds seven (7) calendar days from the end of the initial 10-day cure period; or ii. Within fourteen (14) calendar days of CITY’s issuance of a Default Notice for any other Event of Default under this Agreement. Prior to the expiration of the 14-day cure period, CONSULTANT may submit a written request for additional time to cure the Event of Default upon a showing that CONSULTANT has commenced efforts to cure the Event of Default and that the Event of Default cannot be reasonably cured within the 14-day cure period. The foregoing notwithstanding, CITY will be under no obligation to grant additional time for the cure of an Event of Default under this Section 5.2B.ii that exceeds thirty (30) calendar days from the end of the initial 14-day cure period.

In addition to any other failure on the part of CONSULTANT to perform any duty, obligation, service or task set forth under this Agreement (or the failure to timely perform or properly perform any such duty, obligation, service or task), an Event of Default on the part of CONSULTANT will include, but will not be limited to the following: (i) CONSULTANT’s refusal or failure to perform any of the services or tasks called for under the Scope of Work; (ii) CONSULTANT’s failure to fulfill or perform its obligations under this Agreement within the specified time or if no time is specified, within a reasonable time; (iii) CONSULTANT’s and/or its employees’ disregard or violation of any federal, state, local law, rule, procedure or regulation; (iv) the initiation of proceedings under any bankruptcy, insolvency, receivership, reorganization, or similar legislation as relates to CONSULTANT, whether voluntary of involuntary; (v) CONSULTANT’s refusal or failure to perform or observe any covenant, condition, obligation or provision of this Agreement; and/or (vii) CITY’s discovery that a statement representation or warranty by CONSULTANT relating to this Agreement is false, misleading or erroneous in any material respect.

13 C. CITY will cure any Event of Default asserted by CONSULTANT within fortyfive (45) calendar days of CONSULTANT’s issuance of a Default Notice, unless the Event of Default cannot reasonably be cured within the 45-day cure period. Prior to the expiration of the 45-day cure period, CITY may submit a written request for additional time to cure the Event of Default upon a showing that CITY has commenced its efforts to cure the Event of Default and that the Event of Default cannot be reasonably cured within the 45-day cure period. The foregoing notwithstanding, an Event of Default dealing with CITY’s failure to timely pay any undisputed sums to CONSULTANT as provided under Section 1.5, above, will be cured by CITY within five (5) calendar days from the date of CONSULTANT’s Default Notice to CITY.

D. CITY, in its sole and absolute discretion, may also immediately suspend CONSULTANT’s performance under this Agreement pending
CONSULTANT’s cure of any Event of Default by giving CONSULTANT written notice of CITY’s intent to suspend CONSULTANT’s performance (hereinafter, a “Suspension Notice”). CITY may issue the Suspension Notice at any time upon the occurrence of an Event of Default. Upon such suspension, CONSULTANT will be compensated only for those services and tasks which have been rendered by CONSULTANT to the reasonable satisfaction of CITY up to the effective date of the suspension. No actual or asserted breach of this Agreement on the part of CITY will operate to prohibit or otherwise restrict CITY’s ability to suspend this Agreement as provided herein.

E. No waiver of any Event of Default or breach under this Agreement will constitute a waiver of any other or subsequent Event of Default or breach.

No waiver, benefit, privilege, or service voluntarily given or performed by a Party will give the other Party any contractual rights by custom, estoppel, or otherwise.

F. The duties and obligations imposed under this Agreement and the rights and remedies available hereunder will be in addition to and not a limitation of any duties, obligations, rights and remedies otherwise imposed or available by law. In addition to any other remedies available to CITY at law or under this Agreement in the event of any breach of this Agreement, CITY, in its sole and absolute discretion, may also pursue any one or more of the following remedies:
i. Upon written notice to CONSULTANT, the CITY may immediately terminate this Agreement in whole or in part;
ii. Upon written notice to CONSULTANT, the CITY may extend the time of performance;
iii. The CITY may proceed by appropriate court action to enforce the terms of the Agreement to recover damages for CONSULTANT’s breach of the Agreement or to terminate the Agreement; or

14 iv. The CITY may exercise any other available and lawful right or remedy.

CONSULTANT will be liable for all legal fees plus other costs and expenses that CITY incurs upon a breach of this Agreement or in the CITY’s exercise of its remedies under this Agreement.

G. In the event CITY is in breach of this Agreement, CONSULTANT’s sole remedy will be the suspension or termination of this Agreement and/or the recovery of any unpaid sums lawfully owed to CONSULTANT under this Agreement for completed services and tasks.

5.3 SCOPE OF WAIVER: No waiver of any default or breach under this Agreement will constitute a waiver of any other default or breach, whether of the same or other covenant, warranty, agreement, term, condition, duty or requirement contained in this Agreement. No waiver, benefit, privilege, or service voluntarily given or performed by a Party will give the other Party any contractual rights by custom, estoppel, or otherwise.

5.4 SURVIVING ARTICLES, SECTIONS AND PROVISIONS: The termination of this Agreement pursuant to any provision of this Article or by normal expiration of its term or any extension thereto will not operate to terminate any Article, Section or provision contained herein which provides that it will survive the termination or normal expiration of this Agreement.

VI.

MISCELLANEOUS PROVISIONS

6.1 DOCUMENTS & DATA; LICENSING OF INTELLECTUAL PROPERTY: All Documents and Data will be and remain the property of CITY without restriction or limitation upon their use or dissemination by CITY. For purposes of this Agreement, the term “Documents and Data” means and includes all reports, analyses, correspondence, plans, designs, notes, summaries, strategies, charts, schedules, spreadsheets, calculations, lists, data compilations, documents or other materials developed and/or assembled by or on behalf of CONSULTANT in the performance of this Agreement and fixed in any tangible medium of expression, including but not limited to Documents and Data stored digitally, magnetically and/or electronically. This Agreement creates, at no cost to CITY, a perpetual license for CITY to copy, use, reuse, disseminate and/or retain any and all copyrights, designs, and other intellectual property embodied in all Documents and Data. CONSULTANT will require all subcontractors and subconsultants working on behalf of CONSULTANT in the performance of this Agreement to agree in writing that CITY will be granted the same right to copy, use, reuse, disseminate and retain Documents and Data prepared or assembled by any subcontractor or subconsultant as applies to Documents and Data prepared by CONSULTANT in the performance of this Agreement.

6.2 CONFIDENTIALITY: All data, documents, discussion, or other information developed or received by CONSULTANT or provided for performance of this Agreement are deemed confidential and will not be disclosed by CONSULTANT

15 without prior written consent by CITY. CITY will grant such consent of disclosure as legally required. Upon request, all CITY data will be returned to CITY upon the termination or expiration of this Agreement. CONSULTANT will not use CITY’s name or insignia, photographs, or any publicity pertaining to the Work in any magazine, trade paper, newspaper, television or radio production or other similar medium without the prior written consent of CITY.

6.3 FALSE CLAIMS ACT: CONSULTANT warrants and represents that neither CONSULTANT nor any person who is an officer of, in a managing position with, or has an ownership interest in CONSULTANT has been determined by a court or tribunal of competent jurisdiction to have violated the False Claims Act, 31 U.S.C., Section 3789 et seq. and the California False Claims Act, Government Code Section 12650 et seq.

6.4 NOTICES: All notices permitted or required under this Agreement will be given to the respective Parties at the following addresses, or at such other address as the respective Parties may provide in writing for this purpose:

CONSULTANT: CITY:

INSERT CONSULTANT NAME

INSERT ADDRESS
Attn: CONTACT PERSON
Phone: INSERT PHONE
City of Cudahy

CITY DEPARTMENT

CITY ADDRESS
Phone: CITY PHONE NUMBER
Attn: DEPARTMENT DIRECTOR
Such notices will be deemed effective when personally delivered or successfully transmitted by facsimile as evidenced by a fax confirmation slip or when mailed, forty-eight (48) hours after deposit with the United States Postal Service, first class postage prepaid and addressed to the Party at its applicable address.

6.5 COOPERATION; FURTHER ACTS: The Parties will fully cooperate with one another, and will take any additional acts or sign any additional documents as are reasonably necessary, appropriate or convenient to achieve the purposes of this Agreement.

6.6 SUBCONTRACTING: CONSULTANT will not subcontract any portion of the Work required by this Agreement, except as expressly stated herein, without the prior written approval of CITY. Subcontracts (including without limitation subcontracts with subconsultants), if any, will contain a provision making them subject to all provisions stipulated in this Agreement, including provisions relating to insurance requirements and indemnification.

6.7 CITY’S RIGHT TO EMPLOY OTHER CONSULTANTS: CITY reserves the right to employ other contractors in connection with the various projects worked upon by CONSULTANT.

6.8 PROHIBITED INTERESTS: CONSULTANT warrants, represents and maintains that it has not employed nor retained any company or person, other than a bona fide employee working solely for CONSULTANT, to solicit or secure this

16 Agreement. Further, CONSULTANT warrants and represents that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for CONSULTANT, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, CITY will have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer or employee of CITY, during the term of his or her service with CITY, will have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.

6.9 TIME IS OF THE ESSENCE: Time is of the essence for each and every provision of this Agreement.

6.10 GOVERNING LAW AND VENUE: This Agreement will be interpreted and governed according to the laws of the State of California. In the event of litigation between the Parties, venue, without exception, will be in the Los Angeles County Superior Court of the State of California. If, and only if, applicable law requires that all or part of any such litigation be tried exclusively in federal court, venue, without exception, will be in the Central District of California located in the City of Los Angeles, California.

6.11 ATTORNEYS’ FEES: If either Party commences an action against the other Party, legal, administrative or otherwise, arising out of or in connection with this Agreement, the prevailing Party in such litigation will be entitled to have and recover from the losing Party reasonable attorneys’ fees and all other costs of such action.

6.12 SUCCESSORS AND ASSIGNS: This Agreement will be binding on the successors and assigns of the Parties.

6.13 NO THIRD-PARTY BENEFIT: There are no intended third-party beneficiaries of any right or obligation assumed by the Parties. All rights and benefits under this Agreement inure exclusively to the Parties.

6.14 CONSTRUCTION OF AGREEMENT: This Agreement will not be construed in favor of, or against, either Party but will be construed as if the Parties prepared this Agreement together through a process of negotiation and with the advice of their respective attorneys.

6.15 SEVERABILITY: If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions will continue in full force and effect.

6.16 AMENDMENT; MODIFICATION: No amendment, modification or supplement of this Agreement will be valid or binding unless executed in writing and signed by both Parties, subject to CITY approval. The requirement for written amendments, modifications or supplements cannot be waived and any attempted waiver will be void and invalid.

17 6.17 CAPTIONS: The captions of the various articles, sections and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content, or intent of this Agreement.

6.18 INCONSISTENCIES OR CONFLICTS: In the event of any conflict or inconsistency between the provisions of this Agreement and any of the exhibits attached hereto, the provisions of this Agreement will control.

6.19 ENTIRE AGREEMENT: This Agreement, including all attached exhibits, constitutes the entire, complete, final and exclusive expression of the Parties with respect to the matters addressed herein and supersedes all other agreements or understandings, whether oral or written, which may have been entered into between CITY and CONSULTANT prior to the execution of this Agreement. Any statements, representations, or other agreements, whether oral or written, made by either Party that is not embodied herein will not be valid or binding on the Parties. No amendment, modification or supplement to this Agreement will be valid and binding unless in writing and duly executed by the Parties pursuant to Section

6.16, above.

6.20 COUNTERPARTS: This Agreement will be executed in three (3) original counterparts each of which will be of equal force and effect. No handwritten or typewritten amendment, modification or supplement to any one counterpart will be valid or binding unless made to all three counterparts in conformity with Section

6.16, above. One fully executed original counterpart will be delivered to CONSULTANT and the remaining two original counterparts will be retained by CITY.
(SIGNATURES ON NEXT PAGE)

18 IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed the day and year first appearing in this Agreement, above.

CITY OF CUDAHY:

By:

Alfonso Noyola, City Manager

Date:_______________________

CONSULTANT NAME
By:

Name:

Title:

Date:_______________________
APPROVED AS TO FORM:

By: _____
City Attorney
Date:____________________________

19 EXHIBIT “A”

CITY RFP

20 EXHIBIT “B”

CONSULTANT PROPOSAL

21 EXHIBIT “C”

COMPENSATION RATE

FALSE CLAIMS ACT CERTIFICATION/

FALSE CLAIMS ACT VIOLATION HISTORY
Proposer shall provide either the certification requested below or the information requested on the next page.

Failure to certify or provide the requested information may result in a determination that the Proposer is non-responsive and City may reject the proposal on this basis. Failure to fully and accurately provide the requested certification or information may result in a determination that the Proposer is not responsible and City may reject the proposal on this basis as well. “False Claims Act”, as used herein, is defined as either or both the Federal False Claims Act, 31 U.S.C. Sections 3729 et seq., and the California False Claims Act, Government Code Sections 12650 et seq.

FALSE CLAIMS ACT CERTIFICATION
If the Proposer has no False Claims Act violations as defined above, complete the following:

I, , am the ___________________________________
(Print Name) (Title with Proposing Entity)
of______________________________________________________ (hereinafter, “Proposer”). (Print Name of Proposing Entity)
In submitting a proposal to the City of Cudahy, I hereby certify that neither Proposer nor any person who is an officer of, in a managing position with, or has an ownership interest in Proposer has been determined by a court or tribunal of competent jurisdiction to have violated the False Claims Act as defined above.

I declare under penalty of perjury that the foregoing is true and correct.

Executed this day of at
(month and year) (city and state)
By
(Signature of Person Responsible for Submitting Proposal on behalf of Proposer)

FALSE CLAIMS ACT VIOLATION HISTORY
(1) Date of Determination of Violation:
(2) Identity of tribunal or court and case name or number, if any:
(3) Government Contract or project involved:
(4) Government agency involved:
(5) Amount of fine imposed:
(6) Exculpatory Information:

DECLARATION
I, , the ____________________________________
(Print Name) (Title with Proposing Entity)
of _____________ (hereinafter, “Proposer”)
(Print Name of Proposing Entity)
declare under penalty of perjury that the above information is true and correct.

Executed this day of at ________________________________ (month and year) (city and state)
by _________________________________________________________________________ (Signature of Person Responsible for Submitting Proposal on behalf of Proposer) [END OF DOCUMENT]

CONFLICT OF INTEREST

CERTIFICATION/DISCLOSURE
Proposer shall provide either the certification requested below, or information requested on the next page.

Failure to provide such certification or information may result in a determination that the Proposer is nonresponsive. Failure to provide the requested certification or information fully and accurately may result in a determination that the Proposer is not responsible, and City may reject the proposal.

CONFLICT OF INTEREST CERTIFICATION
I, , am the ___________________________________
(Print Name) (Title with Proposing Entity)
of______________________________________________________ (hereinafter, “Proposer”). (Print Name of Proposing Entity)
• I hereby affirm that no conflict of interest either real or potential exists as to any matter which will be entrusted to Proposer pursuant to the Proposal submitted for consideration. • I hereby affirm that neither I, nor any officer, manager, or owner of Proposer has relationships of an official, professional, financial, or personal nature that may cause Proposer to limit the extent of inquiry, to limit disclosure, or fail to objectively complete its assignments in any way. Examples of potential conflicts include, but are not limited to:
o A family member employed by a firm competing in a selection; o Ownership (through stock shares, etc.) in a competing firm; o A family member or an employee providing sub-contracted services to one of the competing firms (whether on this project or not);
o A family member or an employee currently in discussions with a competing firm concerning future employment;
o Any other circumstance where success of a competing firm would result in a personal benefit to Proposer or, if known by others, would give the appearance of such benefit.
• I further affirm that no other relationship or bias exists that will impair or restrict Proposer’s independence in performing all assigned responsibilities. • It is the responsibility of the Proposer to ensure that they are not or will not become involved in a conflict of interest situation or activities relevant to this project. If during the project a potential conflict arises, it must be immediately disclosed in writing to City.

In submitting a Proposal to the City of Cudahy, I hereby certify that neither Proposer nor any person who is an officer of, in a managing position with, or has an ownership interest in Proposer has a real or potential conflict of interest as described, above.

I declare under penalty of perjury that the foregoing is true and correct.

Executed this day of at
(month and year) (city and state)
by
(Signature of Person Responsible for Submitting Proposal on behalf of Proposer)

CONFLICT OF INTEREST DISCLOSURE
Please describe any real or potential conflict of interest (if any):

Attach additional sheets, if necessary.

DECLARATION
I, , the
(Print Name) (Title with Proposing Entity)
of (hereinafter, “Proposer”)
(Print Name of Proposing Entity)
declare under penalty of perjury that the above information is true and correct.

Executed this day of at
(month and year) (city and state)
by
(Signature of Person Responsible for Submitting Proposal on behalf of Proposer) [END OF DOCUMENT]

CIVIL LITIGATION DECLARATION/

CIVIL LITIGATION HISTORY
Proposer shall provide either the declaration requested below or information requested on the next page.

Failure to provide such certification or information may result in a determination that the Proposer is nonresponsive. Failure to fully and accurately provide the requested certification or information may result in a determination that the Proposer is not responsible and City may reject the proposal on this basis as well. For the five (5) years preceding the date of submittal of this Proposal, identify any civil litigation arising out of the performance of a procurement contract within the State of California in which any of the following was a named plaintiff or defendant in a lawsuit brought by or against the entity soliciting Proposals:
the Proposer submitting the instant Proposal, including any person who is an officer of, or in a managing position with, or has an ownership interest in the entity submitting the Proposal. Do not include litigation which is limited solely to enforcement of mechanics' liens or stop notices. Provide on the following page labeled “Civil Litigation History Information:” (i) the name and court case identification number of each case, (ii) the jurisdiction in which it was filed, and (iii) the outcome of the litigation, e.g., whether the case is pending, a judgment was entered, a settlement was reached, or the case was dismissed.

CIVIL LITIGATION DECLARATION
If the Proposer has no civil litigation history to report as described above, complete the following:

I, , am the ___________________________________
(Print Name) (Title with Proposing Entity)
of______________________________________________________ (hereinafter, “Proposer”). (Print Name of Proposing Entity)
In submitting a Proposal to the City of Cudahy, I hereby certify that neither Proposer nor any person who is an officer of, in a managing position with, or has an ownership interest in Proposer has been involved in civil litigation as described, above.

I declare under penalty of perjury that the foregoing is true and correct.

Executed this day of at
(month and year) (city and state)
by
(Signature of Person Responsible for Submitting Proposal on behalf of Proposer)

CIVIL LITIGATION HISTORY INFORMATION
(1) Name of Case:

Court case identification number:
(2) Jurisdiction in which case was filed:
(3) Outcome of the case:
(1) Name of Case:

Court case identification number:
(2) Jurisdiction in which case was filed:

(3) Outcome of the case:

DECLARATION
I, , the
(Print Name) (Title with Proposing Entity)
of (hereinafter, “Proposer”)
(Print Name of Proposing Entity)
declare under penalty of perjury that the above information is true and correct.

Executed this day of at
(month and year) (city and state)
by
(Signature of Person Responsible for Submitting Proposal on behalf of Proposer) [END OF DOCUMENT]

DEBARMENT CERTIFICATION
Proposer shall provide the certification requested below. Failure to provide such certification may result in a determination that the Proposer is nonresponsive. Failure to provide such certification truthfully and accurately may result in a determination that the Proposer is not responsible, and City may reject the proposal.

I, _____, am the __________________________________
(Print Name) (Title with Proposing Entity)
of______________________________________________________ (hereinafter, “Proposer”). (Print Name of Proposing Entity)
Proposer certifies to the best of its knowledge and belief, that it and its principals:
(a) [ ] Are [ ] are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from covered transactions by any Federal department or agency;
(b) [ ] Have [ ] have not within a three-year period preceding the submission of this Proposal been convicted of or had a civil judgment rendered against them for commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public (Federal, State or Local) transaction or contract under a public transaction; violation of Federal or State antitrust statutes or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property; (c) [ ] Are [ ] are not presently indicted for or otherwise criminally charged by a governmental entity (Federal, State or Local) with commission of any of the offenses enumerated in Paragraph (b) above; and
(d) [ ] Have [ ] have not within a three-year period preceding submission of this Proposal had one or more public transactions (Federal, State or Local) terminated for cause or default.

If reorganization, management turnover, or a shift or change of principals’ status occurs, written notice must be submitted within 21 days. Subsequent disclosure of unfavorable information will be subject to thorough review and remedial action. Updated versions of this certification may be requested on a routine basis

I declare under penalty of perjury that the foregoing is true and correct.

Executed this day of at
(month and year) (city and state)
by
(Signature of Person Responsible for Submitting Proposal on behalf of Proposer) [END OF DOCUMENT]

RESOLUTION NO. 22-47

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CUDAHY, CALIFORNIA (1) GIVING NOTICE OF THE

SUBMISSION TO THE QUALIFIED VOTERS FOR THE CITY OF

CUDAHY OF AN ORDINANCE RELATING TO THE

AUTHORIZATION AND REGULATION OF CERTAIN RETAIL AND

COMMERCIAL CANNABIS ACTIVITIES IN THE CITY OF
CUDAHY; (2) REQUESTING THAT THE BOARD OF

SUPERVISORS OF THE COUNTY OF LOS ANGELES GRANT

THE CITY'S REQUEST FOR CONSOLIDATION OF SAID
GENERAL MUNICIPAL ELECTION WITH THE NOVEMBER 8,
2022 STATEWIDE GENERAL ELECTION ADMINISTERED BY
THE REGISTRAR-RECORDER/COUNTY CLERK ("COUNTY
CLERK") OF THE COUNTY OF LOS ANGELES; (3)

REQUESTING THAT THE COUNTY CLERK PROVIDE SPECIFIC

ELECTION ADMINISTRATION SERVICES IN CONNECTION
WITH THE CITY'S GENERAL MUNICIPAL ELECTION; AND (4)

SETTING RULES AND DEADLINES FOR ARGUMENTS AND

REBUTTALS FOR AND AGAINST THE ORDINANCE
WHEREAS, on June 21, 2022, the City Council of the City of Cudahy ("City Council") approved Resolution No. 22-38 ("Resolution No. 22-38") calling a General Municipal Election to be held on Tuesday, November 8, 2022 (said election hereinafter referred to as the "2022 City Election"), for the election of certain City Council members and for said election to be consolidated with the County-administered General Election of the same date;
WHEREAS, on April 28, 2022, a voter initiative petition for the Cudahy Marijuana Retail Sales Regulation and Taxation Measure ("Voter Initiative Petition") was served upon the City Clerk's Office of the City of Cudahy (the "City Clerk" of the "City") by Proponent Yvette A. Aguilar ("Proponent");
WHEREAS, on April 28, 2022, the Voter Initiative Petition was delivered to the Norwalk office of the Los Angeles County Registrar-Recorder/County Clerk Office of the County of Los Angeles ("the County") for signature validation; WHEREAS, on May 9, 2022, the County notified that City Clerk the Voter Initiative Petition had obtained a sufficient number of valid signatures to require placement of the Voter Initiative Petition on the 2022 City Election ballot; WHEREAS, on May 17, 2022, the City Council approved Resolution No. 22-24 approving the City Clerk's certification of sufficiency of the Voter Initiative Petition;

Resolution No. 22-47

WHEREAS, pursuant to Elections Code Section 9222, the City Council may also submit to the voters, without petition, its own ballot measure to be voted upon by Cudahy voters;
WHEREAS, Proponent and City reached concurrence on a mutually acceptable negotiated measure proposed as the "Cannabis Businesses Accountability Measure" (the "Negotiated Measure") which is to be submitted to Cudahy voters in lieu of the Voter Initiative Petition;
WHEREAS, the Negotiated Measure is substantially similar to the Voter Initiative Petition, excepting that the Negotiated Measure contains heightened regulations for the protection of public health, safety and welfare, and provides a higher tax rate for the City to recover certain fees and costs attributable to law enforcement and other operational expenses affected by said operations;
WHEREAS, the Proponent agrees that if the City takes action to place the Negotiated Measure on the ballot, they will at the special City Council meeting where that action is taken, immediately and publicly withdraw the Voter Initiative Petition and endorse passage of the Negotiated Measure, as well as immediately memorialize such withdrawal of the Voter Initiative Petition by written communication to the City; WHEREAS, the City Council, by passage of this Resolution, finds that the terms of the Negotiated Measure attached hereto as Exhibit "A" have been are acceptable to the City Council and as such recommends that the Negotiated Measure be placed upon the ballot for the November 8, 2022, General Election;
WHEREAS, such call of the election would trigger the Proponent obligation to withdraw the Voter Initiative Petition as stated by the Proponent on the record of City Council proceedings held Wednesday, August 10, 2022;
WHEREAS, by this Resolution, the City Council seeks to place the Negotiated Measure on the 2022 City Election ballot, seeking voter approval of an Ordinance to regulate certain commercial and retail cannabis activities in the City of Cudahy, to wit, the Negotiated Measure referenced in these Recitals, above (The ballot question to be presented to Cudahy voters is set forth under Section 3(A) of this Resolution, below); WHEREAS, the Negotiated Measure proposes the establishment of a fifteen percent (15%) tax on the gross receipts of retail sales of cannabis and cannabis products; WHEREAS, the proposed tax is established as a "general tax" within the meaning of Section 1 (a) of Article XI IIC of the California Constitution whose proceeds may be used for any general governmental purpose;
WHEREAS, pursuant to Section 2(b) of Article XIIIC of the California Constitution and Government Code Section 53724, no local government may establish a general tax unless and until that tax is submitted to the electorate and approved by a majority vote;

Resolution No. 22-47

WHEREAS, the text of the Ordinance corresponding to the Negotiated Measure is attached hereto as Exhibit "A";
WHEREAS, the City Council also requests that the Los Angeles County RegistrarRecorder/County Clerk ("County Clerk") provide full election services to the City in order to conduct the General Municipal Election for the Ordinance described above to be held on November 8, 2022;
WHEREAS, the City Council, at its Special Meeting of August 10, 2022, approved the placement of the Negotiated Measure by no less than 2/3's vote of all members of the City Council as required by Government Code Section 53724(a)-(b); WHEREAS, the proposed Negotiated Measure, inclusive of its tax component, is to be included as part of a regularly scheduled local election of the City of Cudahy at which all of the electors of the City are entitled to vote in accordance with Government Code Section 53724(c);
WHEREAS, in accordance with Section 2(b) of Article XIIIC, consideration of the proposed Negotiated Measure is to be consolidated with the City's regularly scheduled 2022 City Election at which members of the City Council will also be up for election; WHEREAS, the City Council also desires to establish deadlines and rules for the submission of written arguments and rebuttals for and against the Ordinance in accordance with applicable California Elections Code procedures; WHEREAS, the election of the ballot measure contemplated under this Resolution shall be in addition to the election contests referenced by the City Council in prior Resolution No. 22-38 approved June 21, 2022, which called the November 8, 2020 General Municipal Election for the election of various members to the City Council and for said election to be consolidated with the County-administered General Election of the same date.

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

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

SECTION 2. Submission of Ballot Measure. The City Council orders the Ordinance attached hereto as Exhibit "A" to be submitted to the qualified voters of the City at the General Municipal Election to be held on Tuesday, November 8 ,2022, which is to be consolidated with the County-administered General Election of the same date.

The proposed Ordinance shall be in the form attached hereto as Exhibit "A" to this Resolution and are incorporated by this reference as it is fully set forth herein.

SECTION 3. Ballot Measure. The City Council does hereby order that the Ordinance shall be presented and printed upon the ballot submitted to the qualified voters

Resolution No. 22-4'7

in the manner and form set forth herein. On the ballot to be submitted to the qualified voters at the General Municipal Election to be held on Tuesday, November 8, 2022, the ballot question for the Negotiated Measure shall be as follows:

A. The ballot label question for the Ordinance corresponding to the Negotiated Measure shall read as follows:

Cannabis Businesses Accountability Measure
To increase funding for parks, recreational
programs, roads and sidewalks and other I I YES
general governmental purposes, shall an
ordinance authorizing and regulating storefront
retail cannabis sales and other commercial
cannabis activities be approved with
prohibitions on retail operations within 600 feet
of schools, churches, childcare facilities and
other sensitive uses and with retailers required
to pay a 15% gross receipts tax to raise
[ )NO approximately $3,581,952.75 annually until
ended by Cudahy voters?
The City Council requests that the Negotiated Measure be given the letter designation "A" or if this designation is unavailable the letter designation "AA" or "BB".

SECTION 4. Arguments and Impartial Analysis.

A. As to the Negotiated Measure, the City Council, as provided under Elections Code Section 9282(b), authorizes (i) the City Council or any member(s) of the City Council, (ii) any individual voter eligible to vote on the above measure, (iii) a bona fide association of such citizens or (iv) any combination of voters and associations, to file a written argument in favor of or against the City Measure, in accordance with Article 4, Chapter 3, Division 9 of the Elections Code of the State of California and may change the argument until and including August 19, 2022 by 5:00 p.m., after which no arguments for or against the measure may be submitted to the City Clerk. Arguments in favor of or against the measure shall each not exceed 300 words in length. Each argument shall be filed with the City Clerk, signed, and include the printed name(s) and signature(s) of the author(s) submitting it, or if submitted on behalf of an organization, the name of the organization, and the printed name and signature of at least one of its principal officers who is the author of the argument.

Resolution No. 22-47

B. The City Clerk shall comply with all provIsIons of law establishing priority of arguments for printing and distribution to the voters and shall take all necessary actions to cause the selected arguments to be printed and distributed to the voters.

C. Pursuant to Section 9280 of the Elections Code, the City Council directs the City Clerk to transmit a copy of the Negotiated Measure to the City Attorney. The City Attorney shall prepare an impartial analysis of each measure, not to exceed 500 words in length, showing the effect of the measure on the existing law and the operation of the measure. The City Attorney shall transmit such impartial analysis to the City Clerk, who shall cause the analysis to be published in the voter information guide along with the ballot measure as provided by law. The Impartial Analysis shall be filed by the deadline set for filing of primary arguments as set forth in subsection (A) above. The impartial analysis shall include a statement indicating whether the measure was placed on the ballot by a petition signed by the requisite number of voters or by the City Council. In the event the entire text of the measure is not printed on the ballot, nor in the voter information portion of the sample ballot, there shall be printed immediately below the impartial analysis, in no less than 10-font bold type, the following: "The above statement is an impartial analysis of Ordinances or Measures. If you desire a copy of the Ordinances or Measures, please call the election official's office at (insert phone number) and a copy will be mailed at no cost to you."
D. That the provisions of this Section 4 herein shall apply only to the election to be held on November 8, 2022, and shall then be repealed.

SECTION 5. Rebuttals.

A. Pursuant to Section 9285 of the Elections Code of the State of California, when an argument in favor and an argument against a measure have been selected to be printed in the voter information guide, the elections official shall send a copy of the argument in favor of the measure to the authors of the argument against the measure and a copy of an argument against the measure to the authors of the argument in favor of the measure.

B. That the provisions of this Section 5 herein shall apply only to the election to be held on November 8, 2022, and shall then be repealed.

SECTION 6. Placement on the Ballot. The full text of the Ordinance shall not be printed in the voter information guide, and a statement shall be printed in the ballot pursuant to Section 9223 of the Elections Code advising voters that they may obtain a copy of this Ordinance/Measure at no cost, upon request made to the City Clerk.

SECTION 7. Delivery of Resolution to County. The City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original resolutions.

The City Council directs the City Clerk to deliver copies of this Resolution, including the

Resolution No. 22-47

Ordinance/Measure attached hereto as Exhibit "A" to the Clerk of the Board of Supervisors of Los Angeles County and to the Registrar of Voters of Los Angeles County.

SECTION 8. Public Examination. Pursuant to Elections Code Section 9295, this measure will be available for public examination for no fewer than ten (10) calendar days prior to being submitted for printing in the voter information guide. The Clerk shall post notice in the Clerk's office of the specific dates that the examination period will run.

SECTION 9. CEQA. The City Council hereby finds and determines that the ballot measure relates to organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment, and therefore is not a project within the meaning of the California Environmental Quality Act ("CEQA") and the State CEQA Guidelines, section 15378(b)(5).

SECTION 10. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of the Resolution which can be given effect without the invalid provision or application, and to this end the provisions of this Resolution are severable.

The City Council hereby declares that it would have adopted this Resolution irrespective of the invalidity of any particular portion thereof.

SECTION 11. Effective Date of Resolution. This Resolution shall take effect immediately upon its adoption.

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Cudahy at the special meeting of this 10th day of August 2022. �ich
ATTEST:
�� -- City Clerk

Resolution No. 22-47

STATE OF CALIFORNIA

COUNTY OF LOS ANGELES

CITY OF CUDAHY
SS:

I, Richard Iglesias, City Clerk of the City of Cudahy, hereby certify that the foregoing Resolution No. 22-47 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 special meeting of said Council held on the 10th day of August 2022 and that said Resolution was adopted by the following vote, to-wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

Lozoya, Lomelf, Gonzalez, and Alcantar
Guerrero
None
None
Richardgl�,a�
City Clerk ( _,//

1 THE PEOPLE OF THE CITY OF CUDAHY DO ORDAIN AS FOLLOWS:

SECTION 1. This measure shall be known and may be cited as “The Cannabis Business Accountability Measure” (the “Measure”).

SECTION 2. Purpose and Intent. The purpose and intent of this Measure is to (A) accommodate the needs of medically-ill persons in need of cannabis for medicinal purposes, as advised and recommended by their health care provider(s), and adults over the age of twentyone (21), and to implement State of California (“State”) law, which includes, but is not limited to the provisions of the Medicinal & Adult-Use Cannabis Regulation & Safety Act (“MAUCRSA”), as may be amended and augmented under State law, while imposing regulations on the conduct of business and use of land to protect the City of Cudahy’s (the “City”) neighborhoods, residents, and businesses from negative impacts and (B) impose a general tax applicable to cannabis retailers for the purpose of funding any and all governmental purposes, including but not limited to 911 emergency response, police and fire protection services, pothole repair, afterschool programs, senior services, homeless reduction, graffiti removal, and other City general fund services. It is a further purpose and intent of this Measure to regulate the retail sale of cannabis and cannabis products in a manner which is responsible, which protects the health, safety, and welfare of the residents of the City, and which enforces rules and regulations consistent with State law. In part to meet these objectives, a retail cannabis business permit shall be required to own or to operate a cannabis retailer within the City and pay a Cannabis Retailer Tax of fifteen percent (15%) on the gross receipts of retail sales of cannabis and cannabis products. Further, this Measure’s requirement for a cannabis retailer to possess a retail cannabis business permit is in addition to any other permits, licenses, and approvals which may be required to conduct business in the City, and is in addition to any permits, licenses, and approvals required under State or County of Los Angeles (“County”) law.

SECTION 3. Legal Authority. Pursuant to Section 7 of Article XI of the State Constitution, and the provisions of the MAUCRSA, as may be amended and augmented under State law and any subsequent State legislation regarding the same, the City is authorized to adopt ordinances that establish standards, requirements, and regulations for local licenses and permits and taxes for cannabis retailers. Except as otherwise provided in this Measure, any standards, requirements, and regulations regarding health and safety, security, and worker protections established by the State, or any of its departments or divisions, shall be the minimum standards applicable to the retail sale of cannabis and cannabis products in the City.

SECTION 4. Findings. The People of the City hereby find and declare the following:

A. The City does not currently have a structure in place to regulate and tax cannabis retailers.

B. The People of the City have a great need for reasonable access to cannabis and cannabis products for retail purchase to accommodate the needs of medically-ill persons in need of cannabis for medicinal purposes, as advised and recommended by their health care provider(s), and adults over the age of twenty-one (21).

C. The People of the City hereby intend to regulate the retail sale of cannabis and cannabis products in a manner which is responsible, which protects the health, safety, and welfare of the residents of the City, and which enforces rules and regulations consistent with State law.

EXHIBIT A

2 D. The People of the City find that the retail sale of cannabis and cannabis products poses different health, safety, and welfare concerns than the retail sale of tobacco and tobacco products, and, therefore, the City’s regulations regarding the retail sale of tobacco and tobacco products are not appropriate for regulating the retail sale of cannabis and cannabis products.

E. The City has a great need for additional funds to provide the level of general fund services such as 911 emergency response, police and fire protection services, pothole repair, afterschool programs, senior services, homeless reduction, and graffiti removal that residents need and want.

F. The People of the City hereby intend to impose a general tax applicable to cannabis retailers for purposes that may include the funding of 911 emergency response, police and fire protection services, pothole repair, afterschool programs, senior services, homeless reduction, graffiti removal, and other City general fund services.

SECTION 5. Title 5 (Business Licenses and Regulations) of the City Municipal Code is hereby amended by adding Chapter 5.30 (Cannabis Retailers) to read as follows:

Chapter 5.30 – Cannabis Retailers.

5.30.010: Cannabis Retailers Prohibited Unless Specifically Authorized. (1) Except as specifically authorized by this Chapter 5.30, to the fullest extent permitted by State law, the City expressly prohibits any and all commercial cannabis retailers within the City. In particular and if allowable under State law, the City hereby expressly prohibits the delivery of cannabis and cannabis products within the City except by cannabis retailers based within the City and permitted under this Chapter 5.30. If the City is required by State law to permit the delivery of cannabis and cannabis products by cannabis retailers (including commercial cannabis businesses engaged in retail sales) not based within the City, such commercial cannabis businesses and cannabis retailers not based within the City shall be required to comply with the requirements under this Chapter 5.30, including the City retail cannabis business permit application and approval processes under Section

5.30.070.
(2) Nothing in this Chapter 5.30 shall be construed or interpreted to permit the commercial possession, furnishing, manufacture, cultivation, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery, or sale of industrial hemp. (3) To the extent expressly authorized in this Chapter 5.30 and Title 20 of the City Municipal Code, cannabis retailers are permitted in the City, subject to the satisfaction of all requirements set forth in this Chapter 5.30, Title 20 of the City Municipal Code, MAUCRSA, and all other applicable State and local laws, rules, and regulations.

5.30.020: Compliance with Laws.

It is the responsibility of the owners, managers, officers, employees, and agents of any cannabis retailer to ensure that it is operating in a manner compliant with all applicable State and local laws and any regulations promulgated thereunder. Nothing in this Chapter 5.30 shall be construed as in conflict with State law.

3 5.30.030: Definitions.

When used in this Chapter 5.30, the following words shall have the meanings ascribed to them as set forth herein. Words and phrases not specifically defined below shall have the meanings ascribed to them elsewhere in this Code or shall otherwise be defined by common usage. For definitions of nouns, the singular shall also include the plural; for definitions of verbs, all verb conjugations shall be included. Any reference to State statutes includes any regulations promulgated thereunder and is deemed to include any successor or amended version of the referenced statute or regulatory provision.
(1) “Applicant” means the person applying for the retail cannabis business permit under this Chapter 5.30 (not the owners or the managers of the applicant). (2) “Cannabis” has the same meaning as defined in Chapter 20.88 (Definitions) of the City Municipal Code.
(3) “Cannabis business” means a person engaged in commercial cannabis activity. (4) “Cannabis concentrate” means cannabis that has undergone a process to concentrate one or more active cannabinoids, thereby increasing the product’s potency. Resin from granular trichomes from a cannabis plant is a concentrate for purposes of this Chapter 6.

A cannabis concentrate is not considered food, as defined by Section 109935 of the State Health & Safety Code, or drug, as defined by Section 109925 of the State Health & Safety Code.
(5) “Cannabis product” has the same meaning as defined in Chapter 20.88 (Definitions) of the City Municipal Code.
(6) “Caregiver” or “primary caregiver” has the same meaning as that term is defined in Section 11362.7 of the State Health & Safety Code.
(7) “City Manager” means the City Manager of the City of Cudahy or his or her designee(s). (8) “City” means the City of Cudahy, State of California. (9) “City Attorney” means the City Attorney of the City of Cudahy or his or her designee(s). (10) “City Council” means the City Council of the City of Cudahy. (11) “Commercial cannabis activity” has the same meaning as defined in Chapter 20.88 (Definitions) of the City Municipal Code.
(12) “County” means the County of Los Angeles, State of California. (13) “Customer” means a natural person twenty-one (21) years of age or over or a natural person eighteen (18) years of age that is a qualified patient or primary caregiver. (14) “Day care center” or “childcare facility” has the same meaning as defined in Chapter 20.88 (Definitions) of the City Municipal Code.

4 (15) “Delivery” has the same meaning as defined in Chapter 20.88 (Definitions) of the City Municipal Code.
(16) “Dispensary” or “retailer” or “cannabis retailer” has the same meaning as defined in Chapter 20.88 (Definitions) of the City Municipal Code. (17) “Dispensing” or “retail sale(s)” has the same meaning as defined in Chapter 20.88 (Definitions) of the City Municipal Code.
(18) “Employee” means each natural person employed by a cannabis retailer who is a parttime, full-time, temporary, or permanent employee. (19) “Gross receipts” means, except as otherwise specifically provided herein, whether designated as a sales price, royalty, rent, commission, dividend, or other designation, the total amount (including all receipts, cash, credits, and property of any kind or nature) received or payable for sales of goods, wares, or merchandise without any deduction therefrom on account of the cost of the property sold, the cost of materials used, labor, or service costs, interest paid or payable, losses, or any other expense whatsoever.

However, the following shall be excluded from gross receipts:
(a) Cash discounts where allowed and taken on sales;
(b) Any tax required by law to be included in or added to the purchase price and collected from the consumer or purchaser;
(c) Such part of the sale price of any property returned by purchasers to the seller as refunded by the seller by way of cash or credit allowances or return of refundable deposits previously included in gross receipts;
(d) Receipts derived from the occasional sale of used, obsolete, or surplus trade fixtures, machinery, or other equipment used by the taxpayer in the regular course of the taxpayer’s business;
(e) Cash value of sales, trades, or transactions between departments or units of the same business;
(f) Whenever there are included within the gross receipts amounts which reflect sales for which credit is extended and such amount proved uncollectible in a given year, those amounts may be excluded from the gross receipts in the year they prove to be uncollectible; provided, however, if the whole or portion of such amounts excluded as uncollectible are subsequently collected, they shall be included in the amount of gross receipts for the period when they are recovered; (g) Receipts of refundable deposits, except that such deposits when forfeited and taken into income of the business shall not be excluded when in excess of one dollar; and
(h) Any proceeds resulting from a transfer or change of ownership or control in the business.

5 (20) “Labor peace agreement” means an agreement between a cannabis retailer and any bona fide labor organization that, at a minimum, protects the City’s proprietary interests by prohibiting labor organizations and members from engaging in picketing, work stoppages, boycotts, and any other economic interference with a cannabis retailer. This agreement means that the cannabis retailer has agreed not to disrupt efforts by the bona fide labor organization to communicate with, and attempt to organize and represent, the cannabis retailer’s employees. The agreement shall provide a bona fide labor organization access at reasonable times to areas in which the cannabis retailer’s employees work, for the purpose of meeting with employees to discuss their right to representation, employment rights under State law, and terms and conditions of employment. (21) “Licensing authority” means a State agency responsible for the issuance, renewal, or reinstatement of State license, or a State agency authorized to take disciplinary action against a State licensee.
(22) “Liquid assets” means assets that can be readily converted into cash. “Liquid assets” include, but are not limited to, the following: funds in checking or savings accounts, certificates of deposit, money market accounts, mutual fund shares, publicly traded stocks, and United States savings bonds. “Liquid assets” does not mean household items, furniture and equipment, vehicles, cannabis or cannabis products, business inventory, or real property and improvements thereto.
(23) “Manager” means any individual who will be participating in the direction, control, or management of an applicant or a permittee, including but not limited to, any (i) manager or managing member or other officer of a limited liability company or (ii) president, chief executive officer, secretary, treasurer, chief financial officer, or other officer of a for profit corporation.
(24) “MAUCRSA” has the same meaning as defined in Chapter 20.88 (Definitions) of the City Municipal Code.
(25) “Measure” means The Cannabis Business Accountability Measure. (26) “Owner” means any of the following:
(a) A person owning in the aggregate equity interests representing ten (10) percent or more of the voting power of all outstanding equity in the applicant or a permittee; (b) The president, chief executive officer, secretary, treasurer, or chief financial officer of a nonprofit applicant or permittee; or
(c) A member of the board of directors of a nonprofit applicant or permittee.

Notwithstanding the above, every applicant and permittee must have at least one individual person designated as an “owner” for the purpose of compliance with this Chapter 5.30, including the review and evaluation of any retail cannabis business permit application.
(27) “Panic button” means an emergency electronic contact device which allows an employee in the event of an ongoing crime, threat, or other emergency to alert a security guard responsible for providing immediate on-scene assistance.

6 (28) “Patient” or “qualified patient” means a natural person who is entitled to the protections of Section 11362.5 of the State Health & Safety Code and includes a person issued an identification card issued pursuant to Article 2.5 of Chapter 5.30 of Division 10 of the State Health & Safety Code.
(29) “Permittee” or “Cannabis Permittee” means the holder of a valid, City-issued retail cannabis business permit.
(30) “Person” means an individual or natural person, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit and includes the plural as well as the singular number.
(31) “Person with an identification card” shall have the meaning given to that term in Section 11362.7 of the State Health & Safety Code.
(32) “Place of religious assembly” has the same meaning as defined in Chapter 20.88 (Definitions) of the City Municipal Code.
(33) “Premises” means the designated structure or structures and land specified in the retail cannabis business permit application that is owned, leased, or otherwise held under the control of the applicant or permittee where cannabis retail sales will be or is conducted.

The premises shall be a contiguous area and shall only be occupied by one permittee. (34) “Retail cannabis business permit” means a regulatory permit / license issued by the City pursuant to this Chapter 5.30 to a cannabis retailer and is required before any cannabis retail sales may be conducted in the City and is made expressly contingent upon the cannabis retailer’s ongoing compliance with all of the requirements of this Chapter 5.30 and any regulations adopted by the City governing cannabis retail sales. (35) “Sale” means any sale, exchange, or barter or other transaction for any consideration. (36) “School” has the same meaning as defined in Chapter 20.88 (Definitions) of the City Municipal Code.
(37) “State” means the State of California.
(38) “State license” means a permit or license issued by the State, or one of its departments or divisions, under MAUCRSA and any subsequent State legislation regarding the same to engage in cannabis retail sales.
(39) “Youth center” has the same meaning as defined in Chapter 20.88 (Definitions) of the City Municipal Code.

5.30.040: Retail Cannabis Business Permit Required.
(1) No person shall operate a cannabis retailer or engage in cannabis retail sales within the City unless such business or activity is currently in compliance with all applicable State and local laws, rules, and regulations and the cannabis retailer has:

7 (a) A valid City business license to conduct such business or activity; (b) A valid retail cannabis business permit issued by the City pursuant to this Chapter

5.30 to conduct such business or activity;
(c) A valid State license authorizing such business or activity in the City; and (d) A valid certificate of occupancy issued by the City’s Building & Safety Department to conduct the cannabis retail sales at the premises identified in the retail cannabis business permit.

5.30.050: Maximum Number of Authorized Cannabis Retailers Permitted. (1) The total number of retail cannabis business permits for retailers based within the City shall be two (2) with one (1) retail cannabis business permits for issued to a retailer located in the Civic Mixed-Use Zone (CivicMU) and one (1) retail cannabis business permits issued to a retailer located in the Urban Agriculture Overlay Zone (-UA). (2) The number of retail cannabis business permits for retailers (including commercial cannabis businesses engaged in retail sales) based outside the City to engage in delivery within the City shall be zero (0). However, should a court of competent jurisdiction, as a judicial remedy, order the City Council to increase the maximum number of retail cannabis business permits issued for retailers (including commercial cannabis businesses engaged in retail sales) based outside the City to engage in delivery within the City, the number of retail cannabis business permits for retailers (including commercial cannabis businesses engaged in retail sales) based outside the City to engage in delivery within the City shall be no more than two (2).
(3) The maximum number of retail cannabis business permits issued for cannabis retailers based within the City or outside the City (including commercial cannabis businesses engaged in retail sales) may not be amended by the City Council or regulations promulgated by the City Manager pursuant to this Chapter 5.30. However, (a) the City Council may and shall increase the maximum number of retail cannabis business permits issued for retailers based within the City or outside the City (including commercial cannabis businesses engaged in retail sales) if ordered to do so by a court of competent jurisdiction as a judicial remedy or (b) the City Council may increase the maximum number of retail cannabis business permits issued, via ordinance, for retailers based within the City to provide for one (1) retail cannabis business permits issued for retailers based within the City per every ten-thousand (10,000) residents of the City as determined the U.S.

Census (For example, in 2020, the U.S. Census determined that the City had a population of 22,811; therefore, the number of retail cannabis business permits for retailers based within the City shall be two (2). However, if a future U.S. Census determines that the population of the City exceeds thirty-thousand (30,000), the City Council may increase the number of retail cannabis business permits for retailers based within the City to three (3), unless the number of retail cannabis business permits for retailers based within the City has already been increased to three (3) or more pursuant to Subsection (2), and so on and so forth.).

5.30.060: Location and Design Requirements for Cannabis Retailers.

8 Pursuant to the authority delegated by the State to the City under Section 26054(b) of the State Business & Professions Code and overriding the location and design requirements contained in Section 26054(b) of the State Business & Professions Code, cannabis retailers in the City shall be subject to the following location and design requirements:
(1) Retailers shall be a permitted use subject to both the described application criteria and this Chapter 5.30 on property (1) located more than six-hundred (600) feet from any school, day care center, youth center, or place of religious assembly and (2) zoned: Civic Mixed-Use (CivicMU) or Urban Agriculture Overlay Zone (-UA) (2) The distances specified in this Section 5.30.060 shall be measured in a straight line without regard to intervening structures, from the nearest point of the premises, measured from the walls of the premises to the nearest property line of the sensitive use. (3) Each cannabis retailer shall:
(a) Be constructed in a manner that prevents odors to surrounding uses, and promotes quality design and construction, and consistency with the surrounding properties.

Odors from the cannabis retailer shall not be detectable from outside the premises and adequate odor control technology shall be utilized; (b) Be provided with adequate electricity, sewerage, disposal, water, fire protection, and storm drainage facilities for the intended purpose; and (c) Provide and maintain a neighborhood compatibility plan so the City Manager or designee(s) and the City Council may find that the cannabis retailer and its operating characteristics are not detrimental to the public health, safety, convenience, or welfare of persons residing, working, visiting, or recreating in the surrounding neighborhood and will not result in the creation of a nuisance. (d) Comply with all applicable standards and requirements for the design and construction of buildings and the landscaping and design of any property upon which a building is located and signage as the same are set forth under Titles 15 through 20 of the City Municipal Code.

5.30.070: Cannabis Retailer Application Procedure.
(1) Within ninety (90) days following the effective date of this Chapter, the City Manager, pursuant to Section 5.30.210, shall, as a ministerial duty, make available the necessary forms, adopt any necessary application rules for the submission, intake, review, and approval of retail cannabis business permit applications for retailers up to the maximum number of retail cannabis business permits authorized in Section 5.30.050. (2) The City Manager shall, as a ministerial duty, cease acceptance of retail cannabis business permit applications thirty (30) days after making available the necessary forms and adopting any necessary application rules for the submission, intake, review, and approval of retail cannabis business permit applications for retailers. (3) Within sixty (60) days of ceasing the acceptance of retail cannabis business permit application for retailers, the City Manager shall, as a ministerial duty, review timely submitted retailer applications for the following minimum requirements:

9 (a) Payment of an application fee established by resolution of the City Council within sixty (60) days following the effective date of this Chapter 5.30 to cover all costs incurred by the City in the application process;
(b) Sufficient evidence of the legal right to use the proposed property for the proposed use, to include a lease, sublease, purchase agreement, assignment of purchase agreement, or lease or purchase option, in the name of the applicant, which may include nominal consideration and be contingent upon issuance of a retail cannabis business permit or other approvals. The City shall only consider one applicant per property address or County Assessor’s Identification Number. In the event that more than one applicant applies for a retail cannabis business permit application at a given property address or a given County Assessor’s Identification Number, the City Manager shall, as a ministerial duty, only accept the retail cannabis business permit application with the earliest effective date for the evidence of the legal right to use the proposed property for the proposed use in the name of the applicant;
(c) Sufficient evidence to demonstrate that the proposed property complies with the location and zoning requirements in Section 5.30.060;
(d) Proof that an owner or owners of the applicant with an aggregate ownership interest of fifty (50) percent or more has served as an owner or owners with an aggregate ownership interest of fifty (50) percent or more of four (4) or more other cannabis retailers licensed by a city, county, or state since at least January 1, 2022; (e) Proof of funds showing that the applicant has access and control of over $500,000.00 in liquid assets (which such liquid assets having been under possession for at least ninety (90) days prior to the date of the application submission under this Section), which may be shown via a binding legal agreement in the name of the applicant such as a promissory note so long as said legal agreement is accompanied by a proof of funds in the name of a party to the agreement that demonstrates access and control of over $500,000.00 in liquid assets under possession for at least ninety (90) days prior to the date of the application submission under this Section. Applicants and permittees shall not be required to show that the applicant or permittee has access and control of over $500,000.00 in liquid assets except on initial application pursuant to this Section

5.30.070, a change in location application pursuant to Section 5.30.130, or an ownership transfer application pursuant to Section 5.30.140; (f) For an applicant with two (2) or more employees, proof of a labor peace agreement between a bona fide labor organization and the applicant (the applicant shall provide the City with a copy of the labor peace agreement that contains the signatures of the union representative and the cannabis business). For applicants with less than two (2) employees who have not yet entered into a labor peace agreement, the applicant shall provide a notarized statement indicating that the applicant will enter into and abide by the terms of a labor peace agreement within thirty (30) days after employing two (2) employees;

10 (g) A set of plans, including a site development plan, floor plan(s), building elevations (all four (4) sides), and a conceptual landscape plan with the percentage of landscaping in the parking lot, setback areas, and tree size and species; (h) Colored interior and elevation renderings;
(i) A completed background check application and receipt for each owner and manager of the applicant pursuant to Section 5.30.180(12); and (j) The following application components: (a) Qualifications of the applicant’s owners and managers; (b) business and operations plan; (c) security plan; (d) safety plan; (e) neighborhood compatibility plan; (f) labor and employment plan; and (g) community benefits plan.

The City Manager shall, as a ministerial duty, reject any retail cannabis business permit application that fails to meet the minimum requirements contained in this Subsection (3), and applicants shall not have the right to supplement or amend their retail cannabis business permit applications.
(4) Within ninety (90) days of completing the application review under Subsection (3) above, the City Manager shall, as a ministerial duty, review and score any complete applications pursuant to the following objective review criteria according to the following quantitative evaluation scale:
(a) Qualifications of the applicant’s owners and managers – 150 points The People of the City find that a proven track-record of cannabis retailer operations that successfully generate tax revenue carries out the purpose and intent of the Measure and are, therefore, critical for an applicant to demonstrate the qualifications of the applicant’s owners and managers. Accordingly, 100 of the 150 points awardable under this Subsection (a) shall only be awarded, as a ministerial duty, if an owner or owners of the applicant with an aggregate ownership interest of fifty (50) percent or more is currently at the time of application submission under this Section an owner or owners with an aggregate ownership interest of fifty (50) percent or more of a single licensed and lawfully operating commercial cannabis retailer operation (excluding any non-retailer microbusiness, cultivation, manufacturing, distribution, or other non-retailer commercial cannabis operation components) that has generated at least $5,000,000.00 in gross receipts in a consecutive six-month period in the year immediately preceding the date of the application submission under this Section, as demonstrated by tax payment receipts from, tax filings to, or tax returns filed with a city, county, or state.

The remaining 50 of the 150 points awardable under this Subsection (a) shall be awarded, as a ministerial duty, pursuant to the following objective criteria:
(i) Up to 25 points – A description of the applicant’s owner and manager qualifications detailing any special business or professional qualifications or licenses of the applicant’s owner and manager that would add to the quality of services that the cannabis business would provide, including in areas related to cannabis, such as legal, finance, business ownership / administration, real estate development, scientific, or healthcare fields.

11 (ii) Up to 25 points – Documentation that the applicant’s owners and managers have experience operating cannabis retailers in any jurisdiction where cannabis retailers are permitted.
(b) Plans, renderings, and overall location – 50 points The 50 points awardable under this Subsection (b) shall be awarded, as a ministerial duty, pursuant to the following objective criteria:
(i) Up to 10 points – A premise diagram in accordance with Section 5006 of Division 42 of Title 16 of the State Code of Regulations. (ii) Up to 10 points – A site development plan that provides information on existing conditions and proposed improvements to the site and how it meets or will meet the development standards outlined in the City Zoning Code. Information on existing conditions shall include:
a. Exterior renderings or photographs showing all sides of any existing structure(s);
b. Plans or photographs of existing parking areas, landscaping, trash enclosure, and signage;
c. Information on existing or former use on the site, including the addresses, uses, and square footages;
d. Plans or photographs of the existing site if the site is vacant; and e. Photographs of adjacent properties for context.
(iii) Up to 10 points – A floor plan showing information on the existing layout and proposed layout of the building interior.
(iv) Up to 10 points – Building elevations that provide information on existing conditions and proposed improvements.
(v) Up to 5 points – A conceptual landscape plan with the percentage of landscaping in the parking lot, setback areas, and tree size and species. (vi) Up to 5 points – Colored interior renderings and exterior elevation renderings (for both existing and/or proposed improvements). (c) Business and operations plan – 100 points
The 100 points awardable under this Subsection (c) shall be awarded, as a ministerial duty, pursuant to the following objective criteria:
(i) Up to 10 points – A written description of the total square footage of the facility with estimated square footage of proposed uses.

12 (ii) Up to 10 points – A schedule for beginning operations, including a narrative outlining any proposed construction improvements and a timeline for completion.
(iii) Up to 10 points – A budget for construction, operation, maintenance, compensation of employees, equipment costs, utility costs, and other operating costs.
(iv) Up to 5 points – A description of the sources(s) of capital and use(s) of capital.
(v) Up to 10 points – Pro forma financial statements for at least three (3) years of operation.
(vi) Up to 5 points – A description of the type of products to be sold and the estimated quantity and value of product(s) to be sold.
(vii) Up to 5 points – A description of marketing procedures and tactics. (viii) Up to 10 points – A description of day-to-day operations that should acknowledge both state and local laws and should be consistent with industry best practices.
(ix) Up to 5 points – A description of hours of operation and opening procedures.
(x) Up to 10 points – A description of cash handling procedures. (xi) Up to 10 points – A description of inventory control procedures to include identification of point-of-sale systems, and track and trace software. (xii) Up to 10 points – A description of transportation, loading and unloading, distribution, or delivery procedures.
(d) Security plan – 100 points
The 100 points awardable under this Subsection (d) shall be awarded, as a ministerial duty, pursuant to the following objective criteria:
(i) Up to 20 points – The security plan is prepared by a professional security consultant.
(ii) Up to 10 points – A premises security diagram.
(iii) Up to 50 points – A description of access control, inventory control, cash handling, and other security procedures and security equipment demonstrating compliance with the security requirements under this Chapter 5.30.
(iv) Up to 10 points – A description of the intrusion alarm and monitoring system including the name and contact information for the monitoring company.

13 (v) Up to 10 points – A description of the services of on-site security guards to include the (1) number of security guards; (2) the hours security guards will be on-site; (3) locations where security will be positioned; and (4) security guard responsibilities.
(e) Safety plan – 100 points
The 100 points awardable under this Subsection (e) shall be awarded, as a ministerial duty, pursuant to the following objective criteria:
(i) Up to 20 points – The safety plan is prepared by a professional fire prevention and suppression consultant.
(ii) Up to 10 points – A premises safety diagram to include (1) a description / illustration of evacuation routes and (2) location of fire extinguishers and other fire suppression equipment.
(iii) Up to 50 points – A description of safety procedures, training for emergency situations, and safety equipment demonstrating compliance with the safety requirements under this Chapter 5.30.
(iv) Up to 10 points – Identify all gases, pesticides, and chemicals to be used and their storage locations.
(v) Up to 10 points – A description of the firm alarm and monitoring system including the name and contact information for the monitoring company. (f) Neighborhood compatibility plan – 350 points
The 350 points awardable under this Subsection (f) shall be awarded, as a ministerial duty, pursuant to the following objective criteria:
(i) Up to 150 points – A “Good Neighbor Policy” that (i) includes policies and measures in place to protect adjacent uses from any potential impacts (e.g., noise, light, odor, traffic, etc.) related to the proposed cannabis business and (ii) describes how the cannabis business and its operating characteristics will be proactively managed so the business is not detrimental to the public health, safety, convenience, or welfare of persons residing, working, visiting, or recreating in the surrounding area and will not result in the creation of a nuisance.
(ii) Up to 50 points – A description of odor mitigation practices to include: (i) identifying potential sources of odor; (ii) a description of odor control devices and techniques employed to ensure that odors from cannabis are not detectable beyond the permitted premises; and (iii) all proposed staff odor training and system maintenance.
(iii) Up to 50 points – A description of a waste management plan that includes waste disposal locations within the proposed premises and the applicant’s

14 security measures and methods of rendering waste unusable and unrecognizable.
(iv) Up to 100 points – A description of how the proposed location is suitable for the proposed cannabis retail use considering the neighboring uses in the vicinity and existing private/public improvements.
(g) Community benefits plan – 100 points
The People of the City find that monetary donations to local non-profit organizations, financial support of City sponsored activities or organizations, in kind donations to the City or other charitable organizations, and economic incentives to the City carry out the purpose and intent of the Measure and are, therefore, critical for an applicant to demonstrate an effective community benefits plan. Accordingly, 50 of the 100 points awardable under this Subsection (g) shall only be awarded if the applicant pledges to voluntarily provide a public benefit to a public use (or a combination thereof), which is defined as a direct financial contribution equal to one (1) percent of projected gross receipts of the applicant to a public school located within the City, a public park located within the City, and/or a public or nonprofit community organization serving the City or its residents, subject to annual review and final approval by the City. Beyond the above, no further direct financial contributions shall be considered as part of an applicant’s community benefits plan.

The remaining 50 of the 100 points awardable under this Subsection (g) shall be awarded, as a ministerial duty, pursuant to the following objective criteria:
(i) Up to 25 points – A description of a social responsibility plan to include identification of a community liaison, plans to serve as a social equity business incubator, plans to aide and participate in the work of local nonprofits, community-based organizations, civic organizations, or social services organizations.
(ii) Up to 25 points – A description of a plan to develop a public health outreach and educational program that outlines the risks of youth use of cannabis and that identifies resources available to youth related to drugs and drug addiction.
(h) Labor and employment plan – 150 points
The People of the City find that a proven track-record of cannabis retailer operations with high labor standards and commitment to labor peace carries out the purpose and intent of the Measure and are, therefore, critical for an applicant to demonstrate an effective labor and employment plan. Accordingly, 50 of the 150 points awardable under this Subsection (h) shall only be awarded if the applicant provides documentation that the individual or natural person owner or owners of the applicant (disregarding any intervening or intermediary entity owner or owners of the applicant) with an aggregate ownership interest of ninety (90) percent or more have entered into collective bargaining agreements with a labor organization that currently represents cannabis workers in the United States effective since at least July 1, 2021, inclusive of renewals (and remaining effective, inclusive of renewals, on the date of the application submission under this Section) and such collective bargaining agreements accrete or automatically apply to all cannabis

15 retailers permitted or licensed in the State after July 1, 2021 (notwithstanding the fact that employees of such cannabis retailers permitted or licensed in the State after July 1, 2021 (if any), have yet to have had an opportunity to recognize the labor organization that currently represents cannabis workers in the United States), by the individual or natural person owner or owners of the applicant (disregarding any intervening or intermediary entity owner or owners of the applicant) with an aggregate ownership interest of ninety (90) percent or more referenced above.

The remaining 100 of the 150 points awardable under this Subsection (h) shall be awarded, as a ministerial duty, pursuant to the following objective criteria:
(i) Up to 10 points – An organizational chart of showing owners, managers, and employees.
(ii) Up to 10 points – A description of the owner’s and manager’s roles in dayto-day operations and decisions. (iii) Up to 10 points – A description of the number of employees, title / position, and their respective responsibilities
(iv) Up to 15 points – A description of compensation to employees, opportunities for continuing education, and employee training. (v) Up to 15 points – A description of whether the cannabis business is committed to offering employees a living wage.
(vi) Up to 15 points – A description of benefits provided to employees such as health care, vacation, and medical leave, to the degree they are offered as part of employment.
(vii) Up to 15 points – A description of a plan to recruit employees from socially and economically disadvantaged backgrounds.
(viii) Up to 10 points – A description of a plan to have at least 50% of employee positions filled and hours worked by employees residing in the City. (5) Upon timely receipt of a retail cannabis business permit application, the City Manager shall conduct background checks in accordance with Section 5.30.180(12). Following review and scoring of complete applications complete pursuant to objective review criteria under Subsection (4), the City Manager shall, as a ministerial duty, issue retail cannabis business permits to applicants in order of their rank under Subsection (4) up to the maximum number of retail cannabis business permits authorized in Section 5.30.050. In the event of a tie in the order of ranking under Subsection (4) between one or more applicants up to the maximum number of retail cannabis business permits authorized in Section 5.30.050, the City Manager shall, as a ministerial duty, break the tie and issue retail cannabis business permits to the applicants with the highest scoring application component in the following order: (1) Neighborhood compatibility of proposed location (2) Qualifications of the applicant’s owners and managers; (3) labor and employment plan; (4) security plan and safety plan; (5) community benefits plan; (6) neighborhood compatibility plan; (7) business and operations plan; and (8) plans, renderings, and overall location. In the event of a tie on all application components between one or more

16 applicants up to the maximum number of retail cannabis business permits authorized in Section 5.30.050, the City Manager shall not hold a public lottery, but rather arrange for the tied applicants to provide public presentations before the City Council, after which the City Council shall publicly rank the applicants pursuant to ranking sheets prepared by the City Manager that achieve a forced ranking based on all of the objective review criteria and quantitative evaluation scale in Subsection (4), and the City Manager shall issue retail cannabis business permits to applicants in order of their rank up to the maximum number of retail cannabis business permits available following the City Manager’s original ranking and issuance of retail cannabis business permits and the limits contained in Section

5.30.050. However, the City Manager shall not issue a retail cannabis business permit to any applicant with an owner or manager that:
(a) Provided false or misleading information on the applicant’s retail cannabis business permit application;
(b) Has been convicted of (or pled no contest to) “an offense that is substantially related to the qualifications, functions, or duties of the business or profession for which the application is made” as that term is defined in 26057(b)(4) of the State Business & Professions Code; or
(c) Has been sanctioned by a licensing authority or a city, county, or state for unlicensed commercial cannabis activities or has had a license suspended or revoked under MAUCRSA in the three (3) years immediately preceding the date the application was submitted.
(6) Any decision of the City Manager or City Council under this Section 5.30.070 shall be a final administrative decision not subject to administrative appeal under any provisions of this Chapter 5.30 or any provisions of the City Municipal Code but, rather, subject to judicial review and remedies.
(7) In the event that (1) the number of active, operating retailers and issued retail cannabis business permits falls below the maximum number of retail cannabis business permits for retailers authorized in Section 5.30.050 or (2) the City Council is ordered to increase the maximum number of retail cannabis business permits issued for retailers by a court of competent jurisdiction as a judicial remedy (e.g., if a court of competent jurisdiction orders the City Council to make retail cannabis business permits available for retailers (including cannabis businesses engaged in retail sales) based outside the City to engage in delivery within the City), the City Manager shall, as a ministerial duty, within sixty (60) days reinstitute the application procedure under this Section 5.30.070, subject to the maximum number of retail cannabis business permits for retailers authorized and available (not allocated to an active, lawfully operating retailer) for issuance. For the purpose of this Section, a retailer shall be considered operating if (1) upon initial issuance of retail cannabis business permit (or approval of a change in location pursuant to Section

5.30.130), the retailer commences lawful operations within twenty-four (24) months or (2) following initial commencement of lawful operations, the retailer does not cease or abandon operations for one-hundred twenty (120) consecutive or cumulative days in any one (1) year period.
(8) Upon issuance of a retail cannabis business permit, the cannabis permittee shall be required to make a presentation to the City Manager, the Director of Community Development, and/or the City Council and members of the public at a public noticed

17 hearing. The purpose of the presentation is to inform the members of the public of the cannabis business permit application process, selection, location, operation and allow members of the public to provide public comment.

5.30.080: Limitations on the City’s Liability.

To the fullest extent permitted by law, the City shall not assume any liability whatsoever with respect to having issued a retail cannabis business permit pursuant to this Chapter 5.30 or otherwise approving the operation of any cannabis retailer. As a condition to the approval of any retail cannabis business permit, the applicant shall be required to meet all of the following conditions before they can receive a retail cannabis business permit:
(1) Execution of an agreement, in a form approved by the City Attorney, agreeing to indemnify, defend (at applicant’s sole cost and expense), and hold the City, and its officers, officials, employees, representatives, and agents, harmless, from any and all claims, losses, damages, injuries, liabilities, or losses which arise out of, or which are in any way related to, the City’s issuance of the retail cannabis business permit, the City’s decision to approve the operation of the cannabis retailer or activity, the process used by the City in making its decision, or the alleged violation of any federal, State, or local laws by the cannabis retailer or any of its officers, employees, or agents.
(2) Maintain insurance at coverage limits, and with conditions thereon determined necessary and appropriate from time to time by the City Attorney. (3) Defend and indemnify the City for all costs and expenses, including but not limited to attorneys’ fees and court costs, that the City may be required to pay as a result of any legal challenge related to the City’s approval of the applicant’s retail cannabis business permit or related to the City’s approval of a cannabis retail sales. The City, at its sole discretion, may participate at its own expense in the defense of any such action, but such participation shall neither relieve nor increase any of the obligations imposed on the applicant hereunder.

5.30.090: Retail Cannabis Business Permit Term.
(1) Subject to this Section 5.30.090 and Section 5.30.100, the term of each retail cannabis business permit shall be indefinite.
(2) Upon the one (1) year anniversary of the date of issuance for each retail cannabis business permits and every year thereafter, the City Manager shall conduct a performance review of the permittee to assess compliance with the requirements of this Chapter 5.30.

Within thirty (30) days of the conclusion of the annual performance review of the permittee, the City Manager shall issue a letter of compliance or noncompliance outlining all items to be corrected to ensure full compliance. In the event of any noncompliance, the permittee shall have sixty (60) days to remedy such noncompliance. However, in the event such noncompliance items cannot be reasonably remedied within sixty (60) days, such noncompliance items shall not constitute a serious material violation of any law and/or any rule, regulation, and/or standard adopted pursuant to this Chapter 5.30 subject to suspension or revocation under Section 5.30.100 if the permittee commences correction of such noncompliance items within sixty (60) days and thereafter diligently prosecutes correction of such noncompliance items to completion.

18 (3) The permittee shall pay a fee in an amount to be set by the City Council via resolution to cover the costs of conducting the performance review, together with any costs incurred by the City to administer the program created under this Chapter 5.30.

5.30.100: Suspension and Revocation of Retail Cannabis Business Permits. (1) The City Manager may suspend or revoke a retail cannabis business permit for any material violation of any law and/or any rule, regulation, and/or standard adopted pursuant to this Chapter 5.30.
(2) Suspension or revocation of a State license issued by the State or by any of its departments or divisions, corresponding to the retail cannabis business permit shall immediately result in the suspension of the associated retail cannabis business permit until the State, or its applicable department or division, reinstates the State license or otherwise lifts such suspension.
(3) A permittee shall inform the City Manager or designee(s) of any suspension, revocation, or termination of a State license corresponding to its retail cannabis business permit within five (5) business days of the suspension, revocation, or termination of the State license.

5.30.110: Appeals Regarding Retail Cannabis Business Permits. (1) Within ten (10) calendar days after the date of a decision of the City Manager to revoke or suspend an issued retail cannabis business permit, an aggrieved party may appeal such action by filing a written appeal with the City Clerk setting forth the reasons why the decision was not proper. An appeal shall stay all proceedings in furtherance of the appealed action.
(2) At the time of filing, the appellant shall pay the designated appeal fee established by resolution of the City Council.
(3) Upon receipt of the written appeal, the City Clerk shall set the matter for a hearing before the City Council. The City Council shall hear the matter de novo, and shall conduct the hearing pursuant to the procedures set forth by the City. (4) The appeal shall be held within a reasonable time after the filing the appeal, but in no event later than ninety (90) days from the date of such filing. The City shall notify the appellant of the time and location at least ten (10) days prior to the date of the hearing. (5) At the hearing, the appellant may present any information they deem relevant to the decision appealed. The formal rules of evidence and procedure applicable in a court of law shall not apply to the hearing.
(6) At the conclusion of the hearing the City Council may affirm, reverse, or modify the decision appealed. The decision of the City Council shall be a final administrative decision, subject to judicial review and remedies.

5.30.120: Change in Location; Updated Application Information. (1) A permittee may change the business location specified in a retail cannabis business permit upon submission and approval of a change in location application promulgated, as

19 a ministerial duty, by the City Manager pursuant to regulations adopted under Section

5.30.210 after two (2) years following the issuance of a retail cannabis business permit.

The permittee shall pay an application fee established by resolution of the City Council to cover all costs incurred by the City in the review and processing of change in location applications.
(2) Upon submission of a change in location application by a permittee, the City Manager shall, as a ministerial duty, complete processing of such change in location application. If a change in location application is incomplete or the proposed changed location contained therein does not comply with location and zoning requirements in Section 5.30.060, the City Manager shall, as a ministerial duty, deny the change in location application. If a change in location application is complete and the proposed changed location contained therein complies with location and zoning requirements in Section 5.30.060 and this Section, the City Manager shall, in his or her sole discretion, approve or deny the change in location application. In the event the City Manager denies a change in location application, the permittee may appeal the City Manager’s denial to the City Council pursuant to Section 5.30.110.
(3) An applicant or permittee shall notify the City Manager or designee(s) within fifteen (15) calendar days of any material change in the information provided in the applicant or permittee’s retail cannabis business permit application or any change in status of compliance with the provisions of this Chapter 5.30, including any change in the cannabis retailer ownership or management.

5.30.130: Transfer of a Retail Cannabis Business Permit. (1) An owner of a retail cannabis business permit shall not transfer ownership or control of such permit to another person unless and until the permittee and transferee obtain an amendment to the permit from the City Manager stating that the transferee is now an owner of the permittee. A permittee may change the ownership specified in a retail cannabis business permit upon submission and approval of a change in ownership application promulgated, as a ministerial duty, by the City Manager pursuant to regulations adopted under Section 5.30.210 within one-hundred eighty (180) days following the effective date of this Chapter 5.30. The permittee shall pay an application fee established by resolution of the City Council to cover all costs incurred by the City in the review and processing of change in ownership applications. The City Manager shall process such change in ownership applications as a ministerial duty within five (5) business days once the City Manager reasonably determines that the transferee passed the background check required for owners and meets all other requirements of this Chapter 5.30. (2) Notwithstanding Subsection (1), during the first three years following the issuance of a retail cannabis business permit, the City Manager shall not process any application to change the ownership or control of a commercial cannabis business permit that results in the permittee altering its ownership composition in a manner that would result in the permittee not being entitled to points it was awarded when the permittee was an applicant pursuant to Section 5.30.070. For example, if a permittee received 100 points when it was an applicant for providing documentation that the individual or natural person owner or owners of the applicant (disregarding any intervening or intermediary entity owner or owners of the applicant) with an aggregate ownership interest of ninety (90) percent or more have entered into a collective bargaining agreement with a labor organization that currently represents cannabis workers in the United States effective since at least July 1,

20 2021, inclusive of renewals (and remaining effective, inclusive of renewals, on the date of the application submission under this Section), the City Manager shall not process or authorize any change in ownership or control of the permittee if the change would result in the permittee being unable to continue to satisfy the aforementioned criteria subsequent to its approval.

(3) Notwithstanding Subsection (1), no retail cannabis business permit may be transferred when the City Manager has notified the permittee that its retail cannabis business permit has been or may be suspended or revoked.
(4) Any attempt to transfer a retail cannabis business permit either directly or indirectly in violation of this Section 5.30.130 is hereby declared void, and such an unpermitted transfer shall be deemed a ground for revocation of the permit.

5.30.140: Records and Recordkeeping.
(1) Each cannabis retailer shall maintain accurate books and records in an electronic format, which detail all revenues and expenses of the business, including, but not limited to, all of its assets and liabilities. At the time of the performance review of a retail cannabis business permit issued pursuant to this Chapter 5.30, each cannabis retailer shall file a sworn statement detailing the number of sales by the cannabis retailer during the previous 12-month period (or shorter period based upon the timing of the request) detailing sales for each month within such period in question. The statement shall also include gross sales for each month and all applicable taxes paid or due to be paid. (2) Each cannabis retailer shall maintain a current register of the names and the contact information (including the name, address, and telephone number) of anyone owning or holding an interest in the cannabis retailer and, separately, the same contact information of all officers, managers, employees, agents, and volunteers currently employed or otherwise engaged by the cannabis retailer. The register required by this Subsection shall be provided to the City Manager upon a reasonable request.

(3) Each cannabis retailer shall maintain a record of all purchases and sales of cannabis and cannabis products for a period of no less than seven (7) years. (4) All cannabis retailers shall maintain an inventory control and reporting system that accurately documents the present location, amounts, and descriptions of all cannabis and cannabis products.
(5) Subject to any applicable restrictions under the Health Insurance Portability & Accountability Act (“HIPAA”) regulations, each cannabis retailer shall grant the City Manager access to the business’s books, records, accounts, together with any other data or documents relevant to its operation, for the purpose of conducting an audit or examination. Books, records, accounts, and any and all relevant data or documents shall be produced no later than ten (10) business days after receipt of the City Manager’s request for such data, unless otherwise stipulated by the City Manager. The City Manager may require the materials to be submitted in an electronic format that is compatible with the City’s software and hardware.

5.30.150: Security Measures.

21 (1) A cannabis retailer shall implement sufficient security measures to deter and prevent the unauthorized entrance into areas containing cannabis or cannabis products and to deter and prevent the theft of cannabis or cannabis products at the cannabis retailer. Except as may otherwise be determined by the City Manager, these security measures shall include, but are not limited to, all of the following:
(a) Preventing individuals from remaining on the premises of the cannabis retailer if they are not engaging in an activity directly related to the permitted operations of the cannabis retailer.
(b) Establishing limited access areas accessible only to authorized cannabis retailer personnel.
(c) All cannabis and cannabis products shall be stored in a secured and locked room, safe, or vault. All cannabis and cannabis products shall be kept in a manner designed to prevent diversion, theft, and loss.
(d) Installing twenty-four-hour security surveillance cameras of at least HD-quality to monitor all entrances and exits to and from the premises, all interior spaces within the cannabis retailer, which are open and accessible to the public, all interior spaces where cannabis, cash or currency, is being stored for any period of time on a regular basis, and all interior spaces where diversion of cannabis could reasonably occur. The cannabis retailer shall be responsible for ensuring that the security surveillance camera's footage is remotely accessible by the City Manager, and that it is compatible with the City's software and hardware. Video recordings shall be maintained for a minimum of ninety (90) days and shall be made available to the City Manager upon request. Video shall be of sufficient quality for effective prosecution of any crime found to have occurred on the site of the cannabis retailer. (e) Sensors shall be installed to detect entry and exit from all secure areas. (f) Panic buttons shall be installed in all cannabis retailers. (g) Having a professionally installed, maintained, and monitored alarm system. (h) Any bars installed on the windows or the doors of the cannabis retailer shall be installed only on the interior of the building.
(i) The premises shall be live monitored twenty-four (24) hours a day unless the cannabis retailer has an alternative security program authorized by the City Manager. Security personnel must be licensed by the State Bureau of Security & Investigative Services personnel and shall be subject to the prior review and approval of the City Manager, which shall not be unreasonably withheld. (j) Additional security measures may be added through the review of a retail cannabis business permit application.
(2) Each cannabis retailer shall identify a designated security representative or liaison to the City, who shall be reasonably available to meet with the City Manager regarding any security related measures or and operational issues.

22 (3) Each cannabis retailer (including as part of the retail cannabis business permit application process) shall have a storage and transportation plan and currency management plan, which describes in detail the procedures for safely and securely storing, disposing and transporting all cannabis, cannabis products, and any currency. (4) The cannabis retailer shall cooperate with the City whenever the City Manager makes a request, upon reasonable notice to the cannabis retailer, to inspect or audit the effectiveness of any security plan or of any other requirement of this Chapter 5.30. (5) A cannabis retailer shall notify the City Manager within twenty-four (24) hours after discovering any of the following:
(a) Significant discrepancies identified during inventory. The level of significance shall be determined by the regulations promulgated by the City Manager. (b) Diversion, theft, loss, or any criminal activity involving the cannabis retailer or any agent or employee of the cannabis retailer.
(c) The loss or unauthorized alteration of records related to cannabis and cannabis products or registering customers or employees and/or agents of the cannabis retailer.
(d) Any other breach of security.

5.30.160: Restriction on Alcohol and Tobacco Sales.

No person shall cause or permit the sale, dispensing, or consumption of alcoholic beverages or tobacco on or about the premises of the cannabis retailer.

5.30.170: Fees and Charges.
(1) No person may commence or continue any cannabis retail sales in the City without timely paying in full all fees and charges required for the operation of a cannabis retail sales.

Fees and charges associated with the operation of such activity shall be established by resolution of the City Council which may be amended from time to time. (2) All cannabis retailers authorized to operate under this Chapter 5.30 shall pay all sales, use, business and other applicable taxes, and all license, registration, and other fees required under federal, State, and local law. Each cannabis retailer shall cooperate with City with respect to any reasonable request to audit the cannabis retailer’ books and records for the purpose of verifying compliance with this Section, including, but not limited to, a verification of the amount of taxes required to be paid during any period.

5.30.180: General Operating Requirements.
(1) Cannabis retailers may be open to the public for retail sales during the hours specified State law, but in no event later 10:00 p.m.
(2) Cannabis shall not be consumed on the premises of any cannabis retailer.

23 (3) No cannabis or cannabis products or graphics depicting cannabis or cannabis products shall be visible from the exterior of any property issued a retail cannabis business permit or on any of the vehicles owned or used as part of the cannabis retailer. No outdoor storage of cannabis or cannabis products is permitted at any time. (4) Each cannabis retailer shall have in place a point-of-sale or management inventory tracking system to track and report on all aspects of the cannabis retailer including, but not limited to, such matters as cannabis tracking, inventory data, gross sales (by weight and by sale), and other information which may be deemed necessary by the City. The cannabis retailer shall ensure that such information is compatible with the City’s recordkeeping systems. In addition, the system must have the capability to produce historical transactional data for review. Furthermore, any system selected must be approved and authorized by the City Manager prior to being used by a permittee. (5) All cannabis and cannabis products sold and/or distributed shall be cultivated, manufactured, and distributed by licensed facilities that maintain operations in full conformance with the State and local regulations. The packaging and labeling of cannabis and cannabis products shall comply at all times with State law. (6) There shall not be a physician located in any cannabis retailer at any time for the purpose of evaluating patients for the issuance of a medicinal cannabis recommendations. (7) Each cannabis retailer shall provide the City Manager with the name, telephone number (both land line and mobile, if available) of an on-site employee or owner to whom emergency notice can be provided at any hour of the day. (8) Signage and Notices.
(a) In addition to the requirements otherwise set forth in this Section 5.30.180, business identification signage for a cannabis retailer shall conform to the requirements of the City Municipal Code, including, but not limited to, seeking the issuance of a City sign permit.
(b) No signs placed on the premises of a cannabis retailer shall obstruct any entrance or exit to the building or any window.
(c) Each entrance to a cannabis retailer shall be visibly posted with a clear and legible notice indicating that smoking, ingesting, or otherwise consuming cannabis on the premises, or in the areas adjacent to the premises, is prohibited. (d) The entrance to the cannabis retailer shall be clearly and legibly posted with a notice that no person under the age of twenty-one (21) years of age is permitted to enter upon the premises of the cannabis retailer, other than as lawful customers permitted under State law.
(e) No signs placed on the exterior to premises of (or otherwise visible to the public) a cannabis retailer shall depict cannabis, in particular a cannabis leaf, cannabis products, or a green cross.
(9) Other than as lawful customers permitted under State law in the case of retailers, individuals under the age of twenty-one (21) years shall not be allowed on the premises

24 of a cannabis retailer and shall not be allowed to serve as a driver for a cannabis retailer.

It shall be unlawful and a violation of this Chapter 5.30 for any person to employ any person at a cannabis retailer who is not at least twenty-one (21) years of age. (10) Odor control devices and techniques shall be incorporated in all cannabis retailers to ensure that odors from cannabis are not detectable off-site. Cannabis retailers shall provide a sufficient odor absorbing ventilation and exhaust system so that odor generated inside the cannabis retailer that is distinctive to its operation is not detected outside of the facility, anywhere on adjacent property or public rights-of-way, on or about the exterior or interior common area walkways, hallways, breezeways, foyers, lobby areas, or any other areas available for use by common tenants or the visiting public, or within any other unit located inside the same building as the cannabis retailer. (11) The original copy of the retail cannabis business permit issued by the City pursuant to this Chapter 5.30 and the City issued business license shall be posted inside the cannabis retailer in a location readily visible to the public.
(12) Pursuant to Sections 11105(b)(11) and 13300(b)(11) of the State Penal Code, which authorizes City authorities to access State and local summary criminal history information for employment, licensing, or certification purposes; and authorizes access to federal level criminal history information by transmitting fingerprint images and related information to the Department of Justice to be transmitted to the Federal Bureau of Investigation, every person listed as an owner, manager, supervisor, employee, or volunteer of the cannabis retailer must submit fingerprints and other information deemed necessary by the City Manager for a background check. Pursuant to Sections 11105(b)(11) and 13300(b)(11) of the State Penal Code, which requires that there be a requirement or exclusion from employment, licensing, or certification based on specific criminal conduct on the part of the subject of the record, no person shall be issued a retail cannabis business permit unless they have first cleared the background check, as determined by the City Manager, as required by this Chapter 5.30. A fee for the cost of the background investigation, which shall be the actual cost to the City to conduct the background investigation as it deems necessary and appropriate, shall be paid at the time the application for a retail cannabis business permit is submitted.

No owner, manager, supervisor, employee, or volunteer of the cannabis retailer shall:
(a) Have been convicted of (or pled no contest to) “an offense that is substantially related to the qualifications, functions, or duties of the business or profession for which the application is made” as that term is defined in 26057(b)(4) of the State Business & Professions Code; or
(b) Have been sanctioned by a licensing authority or a city, county, or state for unlicensed commercial cannabis activities or has had a license suspended or revoked under MAUCRSA in the three (3) years immediately preceding the date the application was submitted.
(13) The cannabis retailer shall prohibit loitering by persons outside the facility both on the premises and within fifty (50) feet of the premises.
(14) Within sixty (60) days of licensure, for a permittee with two (2) or more employees, the permittee shall attest to the City that the permittee has entered into a labor peace

25 agreement and will abide by the terms of the agreement. The permittee shall submit a copy of the page of the labor peace agreement that contains the signatures of the labor representative and the applicant. For permittees with less than two (2) employees who have not yet entered into a labor peace agreement, the permittee shall provide a notarized statement indicating that the applicant will enter into and abide by the terms of a labor peace agreement within thirty (30) days after employing two (2) employees. If an attestation that the permittee is party to a labor peace agreement, and a copy of the page of the labor peace agreement that contains the signatures of the labor representative was submitted to the City by the permittee as part of the application process, that will meet this obligation.
(15) Cannabis retailers shall implement a workforce plan that includes at least the following provisions:
(a) Commitment for thirty percent (30%) of employees to be local hires; this local hiring requirement is satisfied when a cannabis retailer shows that it has either hired or made a good faith effort to hire bona fide residents of the City or persons that may establish residency after initial employment with the permittee; (b) Commitment to offer apprenticeships and/or compensation for continuing education in the field of cannabis retail sales; and
(c) Paying a living wage to employees. “Living wage” means compensation equivalent to $20 per hour excluding benefits and tips.
(16) It shall be unlawful for a cannabis retailer to discriminate in any manner or take adverse action against any employee in retaliation for exercising rights protected under this Chapter 5.30 or City or State law. These rights include, but are not limited to (1) the right to file a complaint or inform any person about any party’s alleged noncompliance with this Chapter 5.30 or City or State law and (2) the right to inform any person of his or her potential rights under this this Chapter 5.30 or City or State law and to assist him or her in asserting such rights. Protections under this this Chapter 5.30 or City or State law shall apply to any employee who mistakenly, but in good faith, alleges noncompliance with this Chapter 5.30 or City or State law. Taking adverse action against an employee within ninety (90) days of the employee’s exercise of rights protected under this this Chapter

5.30 or City or State law shall raise a rebuttable presumption of having done so in retaliation for the exercise of such rights.

5.30.190: Additional Operating Requirements.
(1) Retailers and the operation thereof shall comply with State law at all times. (2) Prior to dispensing medicinal cannabis or medicinal cannabis products to a qualified patient, a retailer shall verify the age and all necessary documentation of each customer to ensure the customer is not under the age of eighteen (18) years and obtain verification from the recommending physician that the person requesting medicinal cannabis or medicinal cannabis products is a qualified patient, and shall maintain a copy of the physician recommendation or identification card as described in Sections 11362.71 through 11362.77 of State Health & Safety Code, as may be amended from time to time, on site for period of not less than seven (7) years.

26 (3) Prior to dispensing cannabis or cannabis products to an adult-use customer, a retailer shall verify the age and all necessary documentation of each customer to ensure the customer is not under the age of twenty-one (21) years. (4) All restroom facilities shall remain locked and under the control of managers onsite. (5) A retailer shall notify customers (verbally or by written agreement) and by posting of a notice or notices conspicuously in at least 15-point type within the permitted premises that state as follows:
(a) “The sale or diversion of cannabis or cannabis products without a license issued by the City of Cudahy is a violation of State law and the Cudahy Municipal Code.” (b) “Secondary sale, barter, or distribution of cannabis or cannabis products purchased from a permittee is a crime and can lead to arrest." (c) “Customers must not loiter in or near these premises and may not consume cannabis or cannabis products in the vicinity of this business or in any place not lawfully permitted. These premises and vicinity are monitored to ensure compliance."
(d) “WARNING: The use of cannabis or cannabis products may impair a person's ability to drive a motor vehicle or operate heavy machinery.” (e) “CALIFORNIA PROP. 65 WARNING: Smoking of cannabis and cannabis-derived products will expose you and those in your immediate vicinity to cannabis smoke. Cannabis smoke is known by the State of California to cause cancer and reproductive harm.”

5.30.200: Additional Operating Requirements for Delivery. (1) Delivery shall comply with State law at all times.
(2) Security plans developed pursuant to this Chapter 5.30 shall include provisions relating to vehicle security and the protection of employees and product during loading and in transit. (3) A retailer shall facilitate the delivery of cannabis or cannabis products with a technology platform owned by or licensed to the delivery-only retailer that uses point-of-sale technology to track and database technology to record and store the following information for each transaction involving the exchange of cannabis or cannabis products between the retailer and customer:
(a) The identity of the individual dispensing cannabis or cannabis products on behalf of the permittee;
(b) The identity of the customer receiving cannabis or cannabis products from the permittee;
(c) The type and quantity of cannabis or cannabis products dispensed and received;

27 (d) The gross receipts charged by the permittee and received by the individual dispensing cannabis or cannabis products on behalf of the permittee for the cannabis or cannabis products dispensed and received; and (e) The location or address where the sale or retail sale took place or closed. (4) A permittee shall maintain a database and provide a list of the individuals and vehicles authorized to conduct delivery, and a copy of the valid State driver’s license issued to the driver of any such vehicle on behalf of the retailer to the City Manager. (5) Individuals making deliveries of cannabis or cannabis products on behalf of the retailer shall maintain a physical copy of the delivery request (and invoice) and shall make it available upon the request of agents or employees of the City requesting documentation. (6) During delivery, a copy of the permittee’s retail cannabis business permit and State license shall be in the vehicle at all times, and the driver shall make it available upon the request of agents or employees of the City requesting documentation. (7) A retailer shall only permit or allow delivery of cannabis or cannabis products in a vehicle that is (1) insured at or above the legal requirement in the State; (2) capable of securing (locking) the cannabis or cannabis products during transportation; (3) capable of being temperature controlled if perishable cannabis or cannabis products is being transported; and (4) does not display advertising or symbols visible from the exterior of the vehicle that suggest the vehicle is used for cannabis delivery or affiliated with a retailer. (8) A retailer shall facilitate deliveries with a technology platform owned by or licensed to the retailer that uses global positioning system technology to track, and database technology to record and store the following information:
(a) The time that the individual conducting delivery on behalf of the retailer departed the licensed premises.
(b) The time that the individual conducting delivery on behalf of the retailer completed delivery to the customer.
(c) The time that the individual conducting delivery on behalf of the retailer returned to the licensed premises.
(d) The route the individual conducting delivery on behalf of the retailer traveled between departing and returning to the licensed premises to conduct delivery. (e) For each individual delivery transaction, the identity of the individual conducting deliveries on behalf of the retailer.
(f) For each individual delivery transaction, the vehicle used to conduct delivery on behalf of the retailer.
(g) For each individual delivery transaction, the identity of the customer receiving cannabis or cannabis products from the retailer.

28 (h) For each individual delivery transaction, the type and quantity of cannabis or cannabis products dispensed and received.
(i) For each individual delivery transaction, the gross receipts charged by the retailer and received by the individual conducting deliveries on behalf of the retailer for the cannabis or cannabis products dispensed and received. (9) The individual making deliveries on behalf of the retailer shall personally verify for each individual delivery transaction the identity of the customer receiving cannabis or cannabis products from the retailer and (1) for medicinal cannabis or medicinal cannabis products to a qualified patient, the age and all necessary documentation of each customer to ensure the customer is not under the age of eighteen (18) years and obtain verification from the recommending physician that the person requesting medicinal cannabis or medicinal cannabis products is a qualified patient, and shall maintain a copy of the physician recommendation or identification card as described in Sections 11362.71 through 11362.77 of State Health & Safety Code, as may be amended from time to time, on site for period of not less than seven (7) years or (2) for cannabis or cannabis products to an adult-use customer, age and all necessary documentation of each customer to ensure the customer is not under the age of twenty-one (21) years.

5.30.210: Promulgation of Regulations, Standards, and Other Legal Duties. (1) Consistently with stated requirements of this Chapter 5.30 (and in particular not to repeal or constructively repeal this Chapter 5.30), in addition to any regulations adopted under State law, the City Manager is authorized to establish any additional rules, regulations, and standards governing the issuance, denial, or renewal of retail cannabis business permits, the ongoing operation of cannabis retailers, and the City’s oversight, or concerning any other subject determined to be necessary to carry out the purposes of this Chapter 5.30.
(2) Such regulations shall be published on the City’s website. (3) Regulations promulgated by the City Manager shall become effective upon date of publication. Cannabis retailers shall be required to comply with all State and local laws and regulations, including but not limited to any rules, regulations or standards adopted by the City Manager.

5.30.220: Community Relations.
(1) Each cannabis retailer shall provide the name, telephone number, and email address of a community relations contact to whom notice of problems associated with the cannabis retailer can be provided. Each cannabis retailer shall also provide the above information to all businesses and residences, in the City, located within one hundred and fifty (150) feet of the cannabis retailer. Such community relations contact shall respond to any complaints within forty-eight (48) hours of receipt of such complaints.

(2) During the first year of operation pursuant to this Chapter 5.30, the owner(s), manager(s), and community relations representative from each cannabis retailer holding a retail cannabis business permit issued pursuant to this Chapter 5.30 shall attend a quarterly meeting with the City Manager and other interested parties as deemed appropriate by the City Manager, to discuss costs, benefits, and other community issues arising as a result

29 of implementation of this Chapter 5.30. After the first year of operation, the owner(s), manager(s), and community relations representative from each such cannabis retailer shall meet with the City Manager when and as requested by the City Manager. (3) Cannabis retailers to which a retail cannabis business permit is issued pursuant to this Chapter 5.30 shall develop and make available to youth organizations and educational institutions a public education plan that outlines the risks of youth addiction to cannabis, and that identifies resources available to youth related to drugs and drug addiction.

5.30.230: Fees Deemed Debt to City.

The amount of any fee, cost, or charge imposed pursuant to this Chapter 5.30 shall be deemed a debt to the City that is recoverable via authorized processes as set forth in the City Municipal Code or available through any court of competent jurisdiction.

5.30.240: Permittee, Owner, and Property Owner Responsible for Violations. (1) Each permittee and each owner and each manager of the permittee (and each individual owner and each individual manager of an owner or manager of the permittee) shall be responsible for all violations of the laws of the State or of the regulations and/or the ordinances of the City occurring within the City or in or about the premises of the cannabis retailer, if committed by the permittee or any employee or agent of the permittee and whether or not said violations occur within the permittee, owner, or manager’s presence. (2) No person may engage in any cannabis retail sales within the City unless the person is in compliance with the requirements of this Chapter 5.30.
(3) It shall be unlawful to rent, lease, or otherwise permit any cannabis retail sales at any location, structure, or vehicle in the City by a person (1) that does not have a valid retail cannabis business permit issued by the City; (2) that does not have a valid State license; (3) that does not have any other applicable approvals, including, but not limited to, a building permit and City business license; or (4) that is not currently in compliance with all applicable State and local laws and regulations pertaining to the cannabis retail sales.

Property owners shall have strict liability for any cannabis retail sales at any location, structure, or vehicle in the City by a person (1) that does not have a valid retail cannabis business permit issued by the City or (2) that does not have a valid State license.

5.30.250: Inspection and Enforcement.
(1) The City Manager or designee(s) charged with enforcing the provisions of the City Municipal Code, or any provision thereof, may enter the location of a cannabis retailer at any time, without notice, and inspect the location of any cannabis retailer as well as any recordings and records required to be maintained pursuant to this Chapter 5.30 or under applicable provisions of State law.
(2) It is unlawful for any person having responsibility over the operation of a cannabis retailer, to impede, obstruct, interfere with, or otherwise not to allow, the City to conduct an inspection, review or copy records, recordings, or other documents required to be maintained by a cannabis retailer under this Chapter 5.30 or under State or local law. It is also unlawful for a person to conceal, destroy, deface, damage, or falsify any records,

30 recordings or other documents required to be maintained by a cannabis retailer under this Chapter 5.30 or under State or local law.
(3) The City Manager or designee(s) charged with enforcing the provisions of this Chapter

5.30 may enter the location of a cannabis retailer at any time during business hours and without notice to obtain samples of the cannabis to test for public safety purposes. Any samples obtained by the City shall be logged, recorded, and maintained in accordance with the City law enforcement standards for evidence.

5.30.260: Concurrent Regulation with the State.

It is the stated intent of this Chapter 5.30 to regulate cannabis retail sales in the City concurrently with the State.

5.30.270: Violations Declared a Public Nuisance.

Each and every serious material violation of the provisions of this Chapter 5.30 is hereby deemed unlawful and a public nuisance.

5.30.280: Each Violation a Separate Offense.

Each and every violation of this Chapter 5.30 shall constitute a separate violation and shall be subject to all remedies and enforcement measures authorized by the City Municipal Code.

Additionally, as a nuisance per se, any serious material violation of this Chapter 5.30 shall be subject to injunctive relief, any retail cannabis business permit issued pursuant to this Chapter

5.30 being deemed null and void, disgorgement, and payment to the City of any monies unlawfully obtained, costs of abatement, costs of investigation, attorney’s fees, and any other relief or remedy available at law or in equity. The City may also pursue any and all remedies and actions available and applicable under State and local laws for any violations committed by the cannabis retailer or persons related to, or associated with, the cannabis retail sales. Additionally, when there is determined to be an imminent threat to public health, safety or welfare, the City Manager or designee(s), may take immediate action to temporarily suspend a retail cannabis business permit issued by the City, pending a public hearing before the City Council.

5.30.290: Criminal Penalties.

Each and every serious material violation of the provisions of this Chapter 5.30 may be prosecuted as a misdemeanor and upon conviction be subject to a fine not to exceed one thousand dollars ($1,000.00) or imprisonment in the County jail for a period of not more than six (6) months, or by both such fine and imprisonment. Each day a serious material violation is committed or permitted to continue shall constitute a separate offense.

5.30.300: Remedies Cumulative and Not Exclusive.

The remedies provided herein are not to be construed as exclusive remedies. The City is authorized to pursue any proceedings or remedies provided by law or equity.

5.30.310: Rights Reserved to the City Council.

Nothing in this Chapter shall be construed to supersede, repeal, nullify, or otherwise render inapplicable or unenforceable any other provision of the City Municipal Code not in conflict with

31 the express provisions of this Chapter, including but not limited to non-conflicting provisions of Title 15 through 20 of the City Municipal Code. In the event of any conflict or inconsistency between the express provisions of this Chapter and any other provisions of the City Municipal Code adopted by the City Council, the provision of this Chapter shall govern and control but only to the limited extent of the conflict or inconsistency and no further. All such conflicts or inconsistencies shall be construed narrowly so as to allow for the broadest application of all other provisions of the City Municipal Code. The City Council further reserves and retains the right to amend or modify, in its sole and absolute discretion, any and all provisions of the City Municipal Code, excluding the provisions of this Chapter, to the extent any such amendments or modifications are not in conflict with the express provisions of this Chapter.

SECTION 6. Title 3 (Revenue and Finance) of the City Municipal Code is hereby amended by adding Chapter 3.50 (Cannabis Retailer Tax) to read as follows:

CHAPTER 3.50 – Cannabis Retailer Tax.

3.50.010: Authority and Purpose.
(1) The purpose of this Chapter is to adopt a tax, for revenue purposes, pursuant to Sections 37101 and 37100.5 of the State Government Code, upon cannabis retailers that engage in business in the City. This Cannabis Retailer Tax is levied based upon business gross receipts. It is not a sales and use tax, a tax upon income, or a tax upon real property. (2) The Cannabis Retailer Tax is a general tax enacted solely for general governmental purposes of the City and not for specific purposes. All of the proceeds from the tax imposed by this Chapter 3.50 shall be placed in the City’s general fund and be available for any lawful City expenditure.

3.50.020: Intent.

The intent of this Chapter 3.50 is to impose a general tax applicable to cannabis retailers for the purpose of funding any and all governmental purposes, including but not limited to 911 emergency response, police and fire protection services; pothole repair; afterschool programs; senior services; homeless reduction; graffiti removal, and other City general fund services.

3.50.030: Definitions.

When used in this Chapter 3.50, the following words shall have the meanings ascribed to them as set forth herein. Words and phrases not specifically defined below shall have the meanings ascribed to them elsewhere in this Code, or shall otherwise be defined by common usage. For definitions of nouns, the singular shall also include the plural; for definitions of verbs, all verb conjugations shall be included. Any reference to State statutes includes any regulations promulgated thereunder and is deemed to include any successor or amended version of the referenced statute or regulatory provision
(1) “Adult-use cannabis” or “adult-use cannabis product” means cannabis or cannabis products for individuals twenty-one (21) years of age and over without the need for a physician’s recommendation.
(2) “Business” means all activities engaged in or caused to be engaged in within the City, including any commercial or industrial enterprise, trade, profession, occupation, vocation,

32 calling, or livelihood, whether or not carried on for gain or profit, but shall not include the services rendered by an employee to that employee’s employer. (3) “Cannabis” has the same meaning as defined in Chapter 5.30 of the City Municipal Code. (4) “Cannabis business” has the same meaning as defined in Chapter 5.30 of the City Municipal Code.
(5) “Cannabis product” has the same meaning as defined in Chapter 5.30 of the City Municipal Code.
(6) “Cannabis Retailer Tax” or “Tax” means the tax due pursuant to this Chapter 3.50 for engaging in dispensing within in the City.
(7) “City” means the City of Cudahy, State of California. (8) “City Council” means the City Council of the City of Cudahy. (9) “Commercial cannabis activity” has the same meaning as defined in Chapter 5.30 of the City Municipal Code.
(10) “Code” means the City Municipal Code.
(11) “Customer” has the same meaning as defined in Chapter 5.30 of the City Municipal Code. (12) “Delivery” has the same meaning as defined in Chapter 5.30 of the City Municipal Code. (13) “Dispensary” or “retailer” or “cannabis retailer” has the same meaning as defined in Chapter 5.30 of the City Municipal Code.
(14) “Dispensing” or “retail sale(s)” has the same meaning as defined in Chapter 5.30 of the City Municipal Code.
(15) “Employee” has the same meaning as defined in Chapter 5.30 of the City Municipal Code. (16) “Engaged(s) in business” means the commencing, conducting, operating, managing, or carrying on of a cannabis retailer and the exercise of corporate or franchise powers, whether done as an owner, or by means of an officer, agent, manager, employee, or otherwise, whether operating from a fixed location in the City or coming into the City from an outside location to engage in such activities. A person shall be deemed engaged in business if any of the following apply:
(a) Such person or person’s employee maintains a fixed place of business within the City for the benefit or partial benefit of such person; (b) Such person or person’s employee owns or leases real property within the City for business purposes;
(c) Such person or person’s employee regularly maintains a stock of tangible personal property in the City for sale in the ordinary course of business;

33 (d) Such person or person’s employee regularly conducts solicitation of business within the City; or
(e) Such person or person’s employee performs work or renders services in the City.

The foregoing specified activities shall not be a limitation on the meaning of “engaged in business”.
(17) “Evidence of doing business” means evidence such as, without limitation, use of signs, circulars, cards or any other advertising media, including the use of internet or telephone solicitation, or representation to a government agency or to the public that such person is engaged in a cannabis retailer in the City.
(18) “Fiscal year” means July 1 through June 30 of the following calendar year. (19) “Gross receipts” means, except as otherwise specifically provided, whether designated a sales price, royalty, rent, commission, dividend, or other designation, the total amount (including all receipts, cash, credits and property of any kind or nature) received or payable for sales of goods, wares, or merchandise or for the performance of any act or service of any nature for which a charge is made or credit allowed (whether such service, act or employment is done as part of or in connection with the sale of goods, wares, merchandise or not), without any deduction therefrom on account of the cost of the property sold, the cost of materials used, labor or service costs, interest paid or payable, losses or any other expense whatsoever. However, the following shall be excluded from gross receipts:
(a) Cash discounts where allowed and taken on sales;
(b) Any tax required by law to be included in or added to the purchase price and collected from the consumer or purchaser;
(c) Such part of the sale price of any property returned by purchasers to the seller as refunded by the seller by way of cash or credit allowances or return of refundable deposits previously included in gross receipts;
(d) Receipts derived from the occasional sale of used, obsolete, or surplus trade fixtures, machinery, or other equipment used by the taxpayer in the regular course of the taxpayer’s business;
(e) Cash value of sales, trades, or transactions between departments or units of the same business;
(f) Whenever there are included within the gross receipts amounts which reflect sales for which credit is extended and such amount proved uncollectible in a subsequent year, those amounts may be excluded from the gross receipts in the year they prove to be uncollectible; provided, however, if the whole or portion of such amounts excluded as uncollectible are subsequently collected they shall be included in the amount of gross receipts for the period when they are recovered; and

34 (g) Receipts of refundable deposits, except that such deposits when forfeited and taken into income of the business shall not be excluded when in excess of one dollar; and
(h) Any proceeds resulting from a transfer or change of ownership or control in the business.
(20) “Manager” has the same meaning as defined in Chapter 5.30 of the City Municipal Code. (21) “Marijuana” means “cannabis” as that term is defined in this Chapter 3.50. (22) “MAUCRSA” has the same meaning as defined in Chapter 5.30 of the City Municipal Code.
(23) “Medicinal cannabis” or “medicinal cannabis product” means cannabis or a cannabis product for use by a qualified patient.
(24) “Owner” has the same meaning as defined in Chapter 5.30 of the City Municipal Code. (25) “Patient” or “qualified patient” has the same meaning as defined in Chapter 5.30 of the City Municipal Code.
(26) “Person” has the same meaning as defined in Chapter 5.30 of the City Municipal Code. (27) “Person with an identification card” has the same meaning as defined in Chapter 5.30 of the City Municipal Code.
(28) “Sale” means any sale, exchange, or barter or other transaction for any consideration. (29) “State” means the State of California.
(30) “Tax Administrator” means the means the City Manager of the City of Cudahy or his or her designee(s).

3.50.040: Tax Imposed.
(1) There is established and imposed upon each person who is engaged in business as a cannabis retailer an annual Cannabis Retailer Tax at the rates set forth in this Chapter

3.50. Such Tax is payable regardless of whether the business is operating lawfully in the City or unlawfully. The City’s acceptance of a Cannabis Retailer Tax payment from a cannabis retailer operating illegally shall not constitute the City’s approval or consent to such illegal operations.
(2) Medicinal Retailers. The Cannabis Retailer Tax upon every person who engages in business as a retailer of medicinal cannabis or medicinal cannabis products shall be at the following annual rate:
(a) The tax rate upon the effective date of this Chapter 3.50 shall be fifteen percent (15%) of the gross receipts derived from the retail sale of medicinal cannabis or medicinal cannabis products. Such tax rate may not increase or decrease without voter approval.

35 (3) Adult-use Retailers. The Cannabis Retailer Tax upon every person who engages in business as a retailer of adult-use cannabis or adult-use cannabis products shall be at the following annual rate:
(a) The tax rate upon the effective date of this Chapter 3.50 shall be fifteen percent (15%) of the gross receipts derived from the retail sale of adult-use cannabis or adult-use cannabis products. Such tax rate may not increase or decrease without voter approval.

3.50.050: Exemptions from the Tax.

This Chapter 3.50 shall not apply to personal use of cannabis that is specifically exempted from State licensing requirements and that meets the definition of personal use or equivalent terminology under State law.

3.50.060: Reporting and Remittance of Tax.

The Cannabis Retailer Tax imposed by this Chapter 3.50 shall be imposed on a fiscal year basis and shall be due and payable in quarterly installments as follows:
(1) The owner(s) or manager(s) of each cannabis retailer shall, on or before the last day of the month following the close of each fiscal year quarter, prepare and submit a tax statement on the form prescribed by the Tax Administrator and remit to the Tax Administrator the Tax due. The Tax due shall be no less than the quarterly installment due, but the taxpayer may prepay any amount of Tax at any time. (2) Tax statements and payments for all outstanding Taxes owed the City are immediately due to the Tax Administrator upon cessation of a cannabis retailer for any reason.

3.50.070: Nonpayment of Cannabis Retailer Tax; Penalties and Interest Established by Ordinance.
(1) Any person who fails or refuses to pay any Cannabis Retailer Tax required to be paid pursuant to this Chapter 3.50 on or before the due date shall pay penalties and interest as follows:
(a) A penalty equal to ten percent (10%) of the amount of the Tax, in addition to the amount of the Tax, plus interest on the unpaid tax calculated from the due date of the Tax at the rate of one percent (1%) per month.
(b) If the Tax remains unpaid for a period exceeding three (3) calendar months beyond the due date, an additional penalty equal to twenty-five percent (25%) of the amount of the Tax, plus interest at the rate of one percent (1%) per month on the unpaid tax and on the unpaid penalties.
(c) These penalty provisions shall not be construed to preclude or limit the enforcement of the penal provisions of this Chapter 3.50 or the Code. (2) Whenever a check or electronic payment is submitted in payment of a Cannabis Retailer Tax and the payment is subsequently returned unpaid by the bank, the taxpayer will be

36 liable for the Tax amount due plus any fees, penalties, and interest as provided for in this Chapter 3.50, and any other amount allowed under State law.

3.50.080: Administration of the Tax.
(1) It shall be the duty of the Tax Administrator to collect the taxes, penalties, fees, and perform the duties required by this Chapter 3.50.
(2) For purposes of administration and enforcement of this Chapter 3.50 generally, the Tax Administrator may from time to time promulgate such administrative interpretations, rules, and procedures consistent with the purpose, intent, and express terms of this Chapter

3.50 as he or she deems reasonably necessary to implement or clarify such provisions or aid in enforcement, including but not limited to:
(a) Provide forms to all taxpayers for the reporting of the Tax; (b) Provide information to any taxpayer concerning the provisions of this Chapter 3.50; (c) Receive and record all taxes remitted to the City as provided in this Chapter 3.50; (d) Maintain records of taxpayer reports and taxes collected pursuant to this Chapter

3.50;
(e) Assess penalties and interest to taxpayers pursuant to this Chapter 3.50; and (f) Determine amounts owed and enforce collection pursuant to this Chapter 3.50.

3.50.090: Appeal Procedure.

Any taxpayer aggrieved by any decision of the Tax Administrator with respect to the amount of tax, interest, penalties, and fees, if any, due under this Chapter 3.50 may appeal to the City Council by filing a notice of appeal with the City Clerk within forty-five (45) calendar days of the serving or mailing of the determination of Tax due. The City Clerk, or his or her designee, shall fix a time and place for hearing such appeal, and the City Clerk, or his or her designee, shall give notice in writing to such cannabis retailer at the last known place of address. The finding of the City Council shall be a final administrative decision, subject to judicial review and remedies, and shall be served upon the appellant in the manner prescribed by this Chapter 3.50 for service of notice of hearing. Any amount found to be due shall be immediately due and payable upon the service of the notice.

3.50.100: Constitutionality and Legality.

This Tax is intended to be applied in a manner consistent with the United States and State Constitutions and State law. None of the Tax provided for by this Chapter 3.50 shall be applied in a manner that causes an undue burden upon interstate commerce, a violation of the equal protection or due process clauses of the Constitutions of the United States or the State, or a violation of any other provision of the State Constitution or State law. If a person believes that the Tax, as applied to him or her, is impermissible under applicable law, he or she may request that the Tax Administrator release him or her from the obligation to pay the impermissible portion of the Tax.

37 3.50.110: Apportionment.

If a cannabis retailer subject to the Tax is operating both within and outside the City, it is the intent of the City to apply the Cannabis Retailer Tax so that the measure of the Tax fairly reflects the proportion of the taxed activity actually carried on in the City. To the extent federal or State law requires that any tax due from any taxpayer be apportioned, the taxpayer may indicate said apportionment on his or her tax return. The Tax Administrator may promulgate administrative procedures for apportionment as he or she finds reasonably useful or necessary.

3.50.120: Audit and Examination of Records and Equipment. (1) For the purpose of ascertaining the amount of Cannabis Retailer Tax owed or verifying any representations made by any taxpayer to the City in support of his or her tax calculation, the Tax Administrator shall have the power to inspect any location where commercial cannabis activity occurs and to audit and examine all books and records (including, but not limited to bookkeeping records, State and federal income tax returns, and other records relating to the gross receipts of the business) of owners and managers of a cannabis retailer. In conducting such investigation, the Tax Administrator shall have the power to inspect any equipment, such as computers or point of sale machines, that may contain such records.
(2) It shall be the duty of every person liable for the collection and payment to the City of any Tax imposed by this Chapter 3.50 to keep and preserve, for a period of at least seven (7) years, all records as may be necessary to determine the amount of such Tax as he or she may have been liable for the collection of and payment to the City, which records the Tax Administrator shall have the right to inspect at all reasonable times.

3.50.130: Payment of Tax Does not Authorize Unlawful Conduct. (1) The payment of a Cannabis Retailer Tax required by this Chapter 3.50, and its acceptance by the City, shall not entitle any person to operate as a cannabis retailer unless the person has complied with all of the requirements of the Code, MAUCRSA, and all other applicable State laws.
(2) No Tax paid under the provisions of this Chapter 3.50 shall be construed as authorizing the conduct or continuance of any illegal or unlawful business, or any business in violation of any local or State law.
(3) Nothing in this Chapter 3.50 shall be construed as in conflict with State or federal law. (4) It shall be the responsibility of the owners and managers of a cannabis retailer to ensure that the cannabis retailer is, at all times, operating in a manner compliant with the protection of public health, safety, and community standards, including all applicable State and local laws and regulations, including any subsequently enacted State or local law or regulatory, licensing, or certification standards or requirements, and any specific, additional operating procedures or requirements, which may be imposed as conditions of approval of any State or City license or permit.

3.50.140: Other Licenses, Permits, Taxes, Fees, or Charges.

38 Nothing contained in this Chapter 3.50 shall be deemed to repeal, amend, be in lieu of, replace or in any way affect any requirements for any permit or license required by, under or by virtue of any other provision of this Code or any other ordinance or resolution of the City Council, nor be deemed to repeal, amend, be in lieu of, replace or in any way affect any tax, fee, or other charge imposed, assessed or required by, under or by virtue of any other provision of the Code or any other ordinance or resolution of the City Council. Any references made or contained in any other provision of the Code to any licenses, license taxes, fees, or charges, or to any schedule of license fees, shall be deemed to refer to the licenses, license taxes, fees or charges, or schedule of license fees, provided for in other provisions of this Code.

3.50.150: Deficiency Determinations.

If the Tax Administrator is not reasonably satisfied that any statement filed as required under the provisions of this Chapter 3.50 is correct, or that the amount of tax is correctly computed, he or she may compute and determine the amount to be paid and make a deficiency determination upon the basis of the facts contained in the statement or upon the basis of any information in his or her possession or that may come into his or her possession within two (2) years of the date the tax was originally due and payable. One or more deficiency determinations of the amount of tax due for a period or periods may be made. When a person discontinues engaging in a business, a deficiency determination may be made at any time within two (2) years thereafter as to any liability arising from engaging in such business whether or not a deficiency determination is issued prior to the date the tax would otherwise be due. Whenever a deficiency determination is made, a notice shall be given to the person concerned in the same manner as notices of assessment are given in this Chapter 3.50.

3.50.160: Failure to Report; Nonpayment; Fraud.
(1) Under any of the following circumstances, the Tax Administrator may make and give notice of an assessment of the amount of Tax owed by a person under this Chapter 3.50 at any time:
(a) If the person has not filed a complete statement required under the provisions of this Chapter 3.50;
(b) If the person has not paid the Tax due under the provisions of this Chapter 3.50; (c) If the person has not, after demand by the Tax Administrator, filed a corrected statement, or furnished to the Tax Administrator adequate substantiation of the information contained in a statement already filed, or paid any additional amount of tax due under the provisions of this Chapter 3.50; or (d) If the Tax Administrator determines that the nonpayment of any Cannabis Retailer Tax is due to fraud, a penalty of twenty-five percent (25%) of the amount of the Tax shall be added thereto in addition to penalties and interest otherwise stated in this Chapter 3.50 and any other penalties allowed by law. (2) The notice of assessment shall separately set forth the amount of any Tax known by the Tax Administrator to be due or estimated by the Tax Administrator, after consideration of all information within the Tax Administrator’s knowledge concerning the business and activities of the person assessed, to be due under each applicable section of this Chapter

39 3.50 and shall include the amount of any penalties or interest accrued on each amount to the date of the notice of assessment.

3.50.170: Tax Assessment; Notice Requirements.

The notice of assessment shall be served upon the person either (1) by personal delivery; (2) by overnight delivery by a nationally-recognized courier service, or by a deposit of the notice via United States Postal Service Priority Mail Express (or a comparable service with another carrier or with the United States Postal Service, should Priority Mail Express no longer be provided) with proof of delivery, postage prepaid thereon, addressed to the person at the address of the location of the business or to such other address as he or she shall register with the Tax Administrator for the purpose of receiving notices provided under this Chapter 3.50; or (3) should the person have no address registered with the Tax Administrator for such purpose, then to such person’s last known address. For the purposes of this Section 3.50.170, a service by overnight delivery shall be deemed to have occurred one (1) calendar day following deposit with a courier and service by United States Postal Service Priority Mail Express shall be deemed to have occurred three (3) calendar days following deposit of the notice.

3.50.180: Tax Assessment; Hearing, Application, and Determination.

Within forty-five (45) calendar days after the date of service, the person may apply in writing to the Tax Administrator for a hearing on the assessment. If application for a hearing before the City is not made within the time herein prescribed, the Tax assessed by the Tax Administrator shall be a final administrative decision, subject to judicial review. Within thirty (30) calendar days of the receipt of any such application for hearing, the Tax Administrator shall cause the matter to be set for hearing before him or her no later than thirty (30) calendar days after the receipt of the application, unless a later date is agreed to by the Tax Administrator and the person requesting the hearing. Notice of such hearing shall be given by the Tax Administrator to the person requesting such hearing not later than fifteen (15) calendar days prior to such hearing. At such hearing said applicant may appear and offer evidence why the assessment as made by the Tax Administrator should not be confirmed and fixed as the tax due. After such hearing the Tax Administrator shall determine and reassess the proper tax to be charged and shall give written notice to the person in the manner prescribed in this Chapter 3.50 for giving notice of assessment.

3.50.190: Relief from Taxes; Disaster Relief.
(1) If a cannabis retailer is unable to comply with any Tax requirement due to a disaster, the cannabis retailer may notify the Tax Administrator of this inability to comply and request relief from the tax requirement. A request for relief must clearly indicate why relief is requested, the time period for which the relief is requested, and the reason relief is needed for the specific amount of time.
(2) To obtain relief, the cannabis retailer agrees to grant the Tax Administrator access to the location where the cannabis retailer has been impacted due to a disaster. (3) The Tax Administrator, in his or her reasonable discretion, may provide relief from the Cannabis Retailer Tax requirement for cannabis retailer whose operations have been impacted by a disaster if such tax liability does not exceed $100,000.00. If such Tax liability is $100,001.00 or more, than such relief shall only be approved by the City Council.

40 (4) Temporary relief from the Cannabis Retailer Tax may be granted for a reasonable amount of time as determined by the Tax Administrator or the City Council, as applicable in order to allow the cannabis retailer time to recover from the disaster. (5) The Tax Administrator or City Council, as applicable may require that certain conditions be followed in order for a cannabis retailer to receive temporary relief from the Cannabis Retailer Tax requirement.
(6) For purposes of this Section 3.50.190, “disaster” means, including but not limited to, natural disasters (such as, but not limited to, fires, explosions, earthquakes, drought, tidal waves, and floods); war, hostilities, invasion, act of foreign enemies, mobilization, requisition, or embargo; rebellion, revolution, insurrection, military or usurped power, or civil war; riot, commotion, strikes, go slows, lock outs, or disorder; a pandemic; or acts or threats of terrorism.

3.50.200: Conviction for Violation; Tax Not Waived.

The conviction and punishment of any person for failure to pay the required Cannabis Retailer Tax shall not excuse or exempt such person from any civil action for the Tax debt unpaid at the time of such conviction. No civil action shall prevent a criminal prosecution for any violation of the provisions of this Chapter 3.50 or of any State law requiring the payment of all taxes.

3.50.210: Violation Deemed Misdemeanor.

Each and every material violation of the provisions of this Chapter 3.50 may be prosecuted as a misdemeanor and upon conviction be subject to a fine not to exceed one thousand dollars ($1,000.00) or imprisonment in the County jail for a period of not more than six (6) months, or by both such fine and imprisonment. Each day a material violation is committed or permitted to continue shall constitute a separate offense.

3.50.220: Remedies Cumulative and Not Exclusive.

The remedies provided herein are not to be construed as exclusive remedies. The City is authorized to pursue any proceedings or remedies provided by law.

3.50.230: Rights Reserved to the City Council.

Nothing in this Chapter shall be construed to supersede, repeal, nullify, or otherwise render inapplicable or unenforceable any other provision of the City Municipal Code not in conflict with the express provisions of this Chapter, including but not limited to non-conflicting provisions of Title 15 through 20 of the City Municipal Code. In the event of any conflict or inconsistency between the express provisions of this Chapter and any other provisions of the City Municipal Code adopted by the City Council, the provision of this Chapter shall govern and control but only to the limited extent of the conflict or inconsistency and no further. All such conflicts or inconsistencies shall be construed narrowly so as to allow for the broadest application of all other provisions of the City Municipal Code. The City Council further reserves and retains the right to amend or modify, in its sole and absolute discretion, any and all provisions of the City Municipal Code, excluding the provisions of this Chapter, to the extent any such amendments or modifications are not in conflict with the express provisions of this Chapter.

41 SECTION 7. Chapter 5.20 of Title 5 (Business Licenses and Regulations) of the City Municipal Code is hereby amended by being retitled from “Cannabis Permitting and Regulation” to “Cannabis Production Permitting and Regulation”.

SECTION 8. Section 5.20.010 (Chapter intent and purposes) of Chapter 5.20 (Cannabis Permitting and Regulation) of Title 5 (Business Licenses and Regulations) of the City Municipal Code is hereby repealed in its entirety and amended to read as follows:

The intent and purpose of this chapter is to regulate commercial cannabis production activity (as defined in CMC 5.20.020) in accordance with state law (as defined in CMC 5.20.020) to promote the health, safety, morals, and general welfare of the residents and businesses within the city.

The city is authorized to regulate this activity pursuant to state law, including, but not limited to, MAUCRSA. The goals of this regulation for commercial cannabis production activity include:
(1) To comply with the goals and guidance set forth in the Cole Memo. (2) To minimize the size of the illegal market for cannabis in the city and the surrounding regions.
(3) To create jobs, revenue, and economic growth for the city and its residents. (4) To enable law enforcement and regulators to have sufficient rights to inspect and audit cannabis permittees and take expeditious action against cannabis permittees who violate the requirements of this chapter.
(5) To minimize social harms which may arise from cannabis including youth consumption or intoxicated driving.
(6) To regulate the manner of advertising and location of cannabis permittees such that public nuisance is minimized.

SECTION 9. Subsection (c) (Cannabis permit) of Section 5.20.020 (Definitions) of Chapter 5.20 (Medical and Adult Use Commercial Cannabis) of Title 5 (Business Licenses and Regulations) of the City Municipal Code is hereby repealed in its entirety and amended to read as follows:
“Cannabis permit” means a permit issued by the city to conduct a commercial cannabis production activity, including, but not limited to, a cultivation permit, distribution permit, manufacturing permit, microbusiness permit, or testing.

SECTION 10. Subsection (p) (Distribution) of Section 5.20.020 (Definitions) of Chapter

5.20 (Medical and Adult Use Commercial Cannabis) of Title 5 (Business Licenses and Regulations) of the City Municipal Code is hereby repealed in its entirety and amended to read as follows:
“Distribution” means the procurement, sale, and transport of cannabis and cannabis products between persons authorized to engage in permitted commercial cannabis activities.

SECTION 11. Subsection (t) (Good cause) of Section 5.20.020 (Definitions) of Chapter

5.20 (Medical and Adult Use Commercial Cannabis) of Title 5 (Business Licenses and

42 Regulations) of the City Municipal Code is hereby repealed in its entirety and amended to read as follows:
“Good cause,” for purposes of refusing or denying a cannabis permit, for revoking a cannabis permit, or for refusing or denying a cannabis permit renewal or reinstatement, means: (a) the applicant has not obtained approval by the city council of a development agreement setting forth the general terms for the operation of commercial cannabis production activity or breaches a term or terms of a development agreement approved by the city council pursuant to this chapter; (b) the applicant or cannabis permittee has violated the terms, conditions, or provisions of this chapter, of state law, of any regulations or rules promulgated pursuant to state law or this chapter, any applicable local rules, regulations, or conditions placed upon its state license or cannabis permit; (c) the licensed premises have been operated in a manner that adversely affects the public health, safety, or welfare or the safety of the immediate neighborhood in which the commercial cannabis production activity is being conducted; (d) the applicant or cannabis permittee has knowingly made false statements, misrepresentations, or material omissions on an application form, renewal form, or other document submitted to the city; (e) the applicant or cannabis permittee’s criminal history does not indicate that the applicant or cannabis permittee is of good moral character or the applicant or cannabis permittee has been convicted of an offense that is substantially related to the qualifications, functions, or duties of the applicant or cannabis permittee. However, if the city has issued a cannabis permit to the applicant or cannabis permittee, the city shall not consider any criminal history of the applicant or cannabis permittee that was disclosed to or discovered by the city prior to issuance of the cannabis permit and is confirmed by the applicant or cannabis permittee. For any criminal history that was not disclosed to or discovered by the city prior to issuance of a cannabis permit, or that arose after the issuance of the cannabis permit, the city shall conduct a thorough review of the nature of the crime, conviction, circumstances, and evidence of rehabilitation of the applicant or cannabis permittee, and shall evaluate the suitability of the applicant or cannabis permittee based upon such review.

In determining which offenses are substantially related to the qualifications, functions, or duties of the applicant or cannabis permittee, the city shall consider factors set forth in Business and Professions Code Section 26057; (f) the applicant or cannabis permittee is employing or allowing to volunteer any person whose criminal history indicates that such person is not of good moral character; (g) the applicant or cannabis permittee fails to allow inspection by city officials of the security recordings, activity logs, business records, or other accessible records pertaining to the activities conducted on the applicable premises; or (h) the applicant or cannabis permittee allows for physician services to be conducted on the applicable premises.

SECTION 12. Subsection (u) (Good moral character) of Section 5.20.020 (Definitions) of Chapter 5.20 (Medical and Adult Use Commercial Cannabis) of Title 5 (Business Licenses and Regulations) of the City Municipal Code is hereby repealed in its entirety and amended to read as follows:
“Good moral character” means having a personal history that demonstrates the propensity to serve the public in a manner that reflects openness, honesty, fairness, and respect for the law and rights and well-being of others. In determining good moral character, the following standards shall apply: (a) a judgment of guilt in a criminal prosecution or a judgment in a civil action shall not be used, in and of itself, as proof of an individual’s lack of good moral character. Such judgment, however, may be used as evidence in the determination and, when so used, the individual shall be notified and shall be permitted to rebut the evidence by showing that, at the current time, he or she has the ability to, and is likely to, serve the public, in a fair, honest, and open manner, that he or she is rehabilitated, and/or that the substance of the former offense is not substantially related to the applicable commercial cannabis production activity; and (b) a prior

43 conviction where the sentence, including any term of probation, incarceration, or supervised release is completed for the possession, possession for sale, sale, manufacture, transportation, or cultivation of a controlled substance, is not considered substantially related, and shall not be the sole ground for denial of a cannabis permit, except that any of the convictions set forth in Business and Professions Code Section 26057(b)(4), as may be amended, shall be deemed substantially related to applicable commercial cannabis production activity.

SECTION 13. Subsection (aa) (Medicinal permittee) of Section 5.20.020 (Definitions) of Chapter 5.20 (Medical and Adult Use Commercial Cannabis) of Title 5 (Business Licenses and Regulations) of the City Municipal Code is hereby repealed in its entirety and amended to read as follows:
“Medicinal permittee” means a person who is issued a cannabis permit to engage in commercial cannabis production activity with respect to medicinal cannabis in accordance with applicable city law and state law, including MAUCRSA.

SECTION 14. Subsection (jj) (Premises) of Section 5.20.020 (Definitions) of Chapter 5.20 (Medical and Adult Use Commercial Cannabis) of Title 5 (Business Licenses and Regulations) of the City Municipal Code is hereby repealed in its entirety and amended to read as follows:
“Premises” means the designated structure or structures and land specified in the application that is owned, leased, or otherwise held under the control of the cannabis permittee applicant or cannabis permittee where the commercial cannabis production activity will be or is conducted.

The premises shall be a contiguous area and shall only be occupied by one cannabis permittee.

SECTION 15. Subsection (qq) (State medicinal license) of Section 5.20.020 (Definitions) of Chapter 5.20 (Medical and Adult Use Commercial Cannabis) of Title 5 (Business Licenses and Regulations) of the City Municipal Code is hereby repealed in its entirety and amended to read as follows:
“State medicinal license” means a state license for medicinal commercial cannabis production activities issued pursuant to state law.

SECTION 16. Section 5.20.030 (Commercial cannabis activity prohibited) of Chapter 5.20 (Cannabis Permitting and Regulation) of Title 5 (Business Licenses and Regulations) of the City Municipal Code is hereby repealed in its entirety and amended to read as follows:

All commercial cannabis production activity within the city is prohibited except as permitted by this chapter.

SECTION 17. Section 5.20.040 (Certain commercial cannabis activity permitted) of Chapter 5.20 (Cannabis Permitting and Regulation) of Title 5 (Business Licenses and Regulations) of the City Municipal Code is hereby repealed in its entirety and amended to read as follows:

Medicinal commercial cannabis production activities shall be allowed within the area set forth in the overlay zone/permit area, illustrated in Exhibit “A” to the ordinance codified in this chapter, pursuant to a development agreement adopted in accordance with the Development Agreement Law (Government Code Section 65864 et seq.) and Chapter 20.28 CMC (Development Agreements). No such activities shall be permitted without a development agreement within or outside of the boundaries of such overlay zone. The city may approve or deny such a development