Cities Index.
Agenda

Cudahy City Council
October 17, 2023

Document
Agenda
Meeting
October 17, 2023
Body
Cudahy City Council
Pages
383
Original file
38.3 MB
Text extracted from the city's file for reading and search. Open the original on ca-cudahy.civicplus.com. That file is the official record.
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AGENDA

A REGULAR MEETING

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

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

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

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

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

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

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

Council Chambers/Bedwell Hall
5240 Santa Ana Street
Cudahy, CA 90201
Teleconference Phone Number:
1 (669) 900-6833
Meeting ID: 810 8335 7022
https://us06web.zoom.us/j/81083357022

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

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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. APPROVAL OF AGENDA

4. PLEDGE OF ALLEGIANCE

5. LAND ACKNOWLEDGMENT
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.

6. PRESENTATIONS
A. Certificate of Recognition presented to Cudahy’s Resource Fair Participants B. East Los Angeles County Sheriff’s Department Annual Update C. Los Angeles County Fire Department Annual Update

7. PUBLIC COMMENTS
(Each member of the public may provide a public comment in person, telephonically or electronically.

In person participants must submit one comment card if they wish to address the City Council. Only speakers that submit a comment card within the first 20 minutes of the meeting will be permitted to speak. Remote participants may provide public comment by clicking the hand icon on Zoom or pressing star (*) nine (9) on the telephone, if they wish 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).)

8. CITY COUNCIL COMMENTS / REQUESTS FOR AGENDA ITEMS (Each Council Member is limited to three minutes.)

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

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(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.)

9. CITY MANAGER REPORT (information only)

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

MEETINGS

11. 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.

12. 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 to Review and Approve the Draft Minutes of October 3, 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 7) Presented by the City Clerk
Recommendation: The City Council is requested to review and approve the City Council / Successor Agency Draft Minutes for October 3, 2023.

13. PUBLIC HEARING – NONE

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

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14. BUSINESS SESSION
A. Adoption of Proposed Resolution No. 23-44: Permanent Local Housing Allocation (PLHA) Program Grant Funding Eligible Activities for Years 2 and 3 (page 17) Presented by the Senior Planner
Recommendation: Staff recommends that the City Council adopt Resolution No. 23-44 which approves the following action(s):

1. Elect eligible activities for Years 2 and 3 of the 5-year Permanent Local Housing Allocation Program grant period for Supportive Case Management, Rental Assistance, and Emergency Shelter Beds Program (Salvation Army Bell Shelter).

B. Adoption of Proposed Resolution No. 23-45, A Resolution of the City Council of the City of Cudahy Amending the Classification Plan for City Employee (Associate Planner) (page 39) Presented by the Senior Planner
Recommendation: The City Council is requested to approve Resolution No. 23-45 of the City Council of the City of Cudahy amending the Classification Plan for City Employee (Associate Planner)
C. Recommendation to Approve a Professional Services Agreement (PSA) to Prepare Phase II Environmental Site Assessments (ESA) for several City Owned Properties between Polytechnique Environmental Inc. and the City of Cudahy (page 49)
Presented by the Senior Planner
Recommendation: The City Council is requested to take the following action(s):

1. Approve a Professional Services Agreement (PSA) to Prepare Phase II Environmental Site Assessments (ESA) for several city owned properties; and

2. Authorize the City Manager to execute the contract agreement between the City of Cudahy and Polytechnique Environmental Inc.

D. Adoption of a Proposed Resolution No. 23-46 Augmenting the City of Cudahy Fiscal Year (FY) 2023-2024 City Budget (page 155)
Presented by the Finance Director

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

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Recommendation: The City Council is requested to:

1. Adopt proposed Resolution No. 23-46 augmenting the City of Cudahy Fiscal Year (FY) 2023-2024 City Budget
E. Consideration to adopt a Resolution to Authorize the City Manager to Execute the Purchase of a City Vehicle (page 161)
Presented by the Finance Director
Recommendation: The City Council is requested to adopt Resolution No. 23-47 authorizing the City Manager to purchase a Public Works vehicle, for a not to exceed amount of $70,000.

F. Consideration to Approve a Purchase Order for Procurement of Cyber Defense System (page 169) Presented by the Finance Director
Recommendation: The City Council is requested to approve a purchase order for the installation and subscription of cyber defense system with Darktrace Holdings Limited not-to-exceed amount of $26,386.13.

G. Consideration of a request from VM Evergreen, LLC for Forgiveness of Fees and Repayment Plan Request (page 179)
Presented by the Community Development Director
Recommendation: Staff is recommending the City Council consider the presentation from staff, consider comments from VM Evergreen, LLC, consider comments from members of the public and deny VM Evergreen’s request for forgiveness of fees and repayment plan.

15. COUNCIL DISCUSSION - NONE

16. CLOSED SESSION
A. Closed Session Pursuant to Government Code § 54956.9(d)(2) – Two Matters

17. CLOSED SESSION ANNOUNCEMENT

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

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

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

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“Serving the People” "Sirviendo A La Comunidad"
Staff Report
10/17/2023 Page 1 of 2

STAFF REPORT
Date: October 17, 2023
To: Honorable Mayor/Chair and City Council/Agency Members From: Alfonso Noyola, City Manager/Executive Director
By: Richard Iglesias, City Clerk
Subject: Consideration to Review and Approve the Draft Minutes of October 3, 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 October 3, 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
12A

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“Serving the People” "Sirviendo A La Comunidad"
Staff Report
10/17/2023 Page 2 of 2
William Bennett Munro, a Canadian historian, and political scientist, who taught at Harvard University and the California Institute of Technology, stated in one of his first textbooks written: “No other office in municipal service has so many contacts. It serves the Mayor, the City Council, the City Manager (when there is one), and all administrative departments, without exception. All of them call upon it, almost daily, for some service or information. Its work is not spectacular, but it demands versatility, alertness, accuracy, and no end of patience.

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

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

CONCLUSION
The City Council is requested to approve the attached City Council / Agency Draft Minutes of the proceedings of October 3, 2023.

STRATEGIC PLAN CORRELATION
No correlation to the strategic plan.

FINANCIAL IMPACT
No Financial Impact.

ATTACHMENT
A. October 3, 2023, Minutes
B. Resolution No. 16-38, approving the City Clerk’s use of Summary Action Minutes as the Official Record of the City Council proceedings.

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City Council/Successor Agency Minutes of 10/03/2023 Page 1 of 5

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

HOUSING SUCCESSOR AGENCY TO THE CUDAHY

DEVELOPMENT COMMISSION JOINT MEETING
October 3, 2023 6:30 P.M.

1. CALL TO ORDER
Mayor / Chair Lomelí called the meeting to order at 6:36 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 (arrived at 6:42 p.m.) Mayor / Chair Daisy Lomelí
ABSENT: None
ALSO PRESENT: City Manager, Alfonso Noyola (virtually), City Attorney, Stephanie Arechiga, City Clerk, Richard Iglesias, Assistant City Clerk, Estefania Zamora, Finance Director, Joshua Calhoun, Public Works Director, Aaron Hernandez, Administrative Services Director, Brenda Rodriguez (virtually), Public Work Superintendent, Aurelio Trujillo, Assistant Engineer, Juan Rodriguez, Building Official, Raul Diaz, Senior Planner, Cecilia Madrigal, and Executive Assistant to the City Manager, Janet Andrade.

3. APPROVAL OF AGENDA
Motion: Council Member Alcantar motioned to approve the agenda as is, seconded by Council Member C. Gonzalez. Motion passed 4-0-1 by the following roll call vote:

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

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

5. LAND ACKNOWLEDGEMENT
Attachment A Page 9 of 383
City Council/Successor Agency Minutes of 10/03/2023 Page 2 of 5 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.

6. PRESENTATIONS
A. City Attorney’s Office Annual Update

7. PUBLIC COMMENTS
Jennifer Pineda voiced her concern regarding the fence that connects Teresa Hughes Elementary and Lugo Park not being covered, mentioning homelessness and illicit activity, also requested the City to do something about the fence.

Susie de Santiago thanked Council Members for willing to participate in Walk to School Day tomorrow, mentioned that the Sheriff's and Bell Police Department will participate, and thanked the City for sponsoring the ice cream contest.

8. CITY COUNCIL COMMENTS / REQUESTS FOR AGENDA ITEMS
Council Member Fuentes acknowledged the shooting that happened last night, asked about the private security’s involvement, mentioned drafting a list with fellow Council Member regarding the beautification of the City, successor agency properties not being maintained, shared his attendance at the NALEO Policy Institute and will be sharing the presentation on disaster preparedness to City Clerk to share with staff, attended the State of the City for South Gate, will be participating in tomorrow’s International Walk to School Day, and requested the clock in the council chambers to get fixed.

Council Member C. Gonzalez commented on the shooting that happened last night, recommended the Los Angeles County Office of Violence Prevention, mentioned a crisis response meeting being hosted by them and suggested staff, spoke on the issues with the Elementary School and the park, suggested placing netting to cover the area and finding accommodations for the unhoused individual, thanked Susie for organizing the Walk to School Day, asked if there was an opportunity for a Public Safety Ad Hoc meeting, and ask if the letter D in Bedwell can be replaced.

Council Member Alcantar commented on the shooting from last night and arranging a time for the Public Safety Ad Hoc to meet, mentioning her attendance at the SELA Round Table with Senator Lena Gonzalez and the Mayor to talk about street vending, will be participating in the Walk to School Day, thanked Susie, spoke on the comment regarding

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City Council/Successor Agency Minutes of 10/03/2023 Page 3 of 5 Teresa Hughes not having the netting, asked that for the next budget, asked to fund a City Organizer/Field Representative position to assist at parent meetings, schools, and can potentially solve issues sooner than later.

Vice Mayor J. Gonzalez echoed his colleague’s comments, mentioned connecting with LAUSD regarding the netting and splitting the cost would be preferred, having bedding for homeless individuals, commented being at the Sister City San Miguel el Alto, spoke to their Mayor, wanting to do inauguration, asked the City Clerk to coordinate, encouraged the Public Safety Ad Hoc to meet with the Captain, Sergeant, and Lieutenant, agreed with Council Member Alcantar about justice being served, and asked for a press release to go out, stated that he wishes he can go to Walk to School Day but has to attend somewhere else, lastly, wants to see the City have a Town Hall.

Daisy Lomelí expressed her interest in formalizing immediate steps when something happens, sending Nixle alerts to the community to avoid traffic, providing mental health hotline information or sharing resources with the community, supported the idea of a Field Representative at our schools, thanked Susie for coordinating the Walk to School Day and will be participating, attended the Senator's Round Table, asked to post the Maywood Education Fair coming up in a week and a half, post as much as possible up until the date, stated another resource fair this Saturday, was the idea of one of the Cudahy Visionary Youth Leaders, which she will attend.

9. CITY MANAGER REPORT (information only)

10. REPORTS REGARDING AD HOC, ADVISORY, STANDING OR OTHER COMMITTEE MEETINGS – NONE

11. WAIVER OF FULL READING OF RESOLUTIONS AND ORDINANCES Motion: Vice Mayor J. Gonzalez motioned to waive full reading of resolutions and ordinances, 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

12. CONSENT CALENDAR
A. Consideration to Review and Approve the Draft Minutes of September 19, 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

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City Council/Successor Agency Minutes of 10/03/2023 Page 4 of 5 Recommendation: The City Council is requested to review and approve the City Council / Successor Agency Draft Minutes for September 19, 2023.

Motion: Council Member Alcantar motioned to approve Consent Calendar items with an amendment from Council Member C. Gonzalez to add the following to the minutes under her Comments / Request, “requested a report of the cannabis industry, history of the cannabis industry and state of the City when first adopted, including present financials with different licenses, and what other cities adopted in terms of additional fees, how the City of Cudahy compares to others an analysis of the cannabis industry”, seconded by Vice Mayor J. Gonzalez. 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

13. PUBLIC HEARING – NONE

14. BUSINESS SESSION
A. Approval of a Contract Agreement for the Installation of Marquee Signs at Clara Park and Lugo Park
Presented by the Administrative Analyst
Recommendation: It is recommended that the City Council authorize the City Manager to execute a contract agreement with Custom Signs, Inc. to install two (2) marquee signs at Clara Park and Lugo Park, for an amount not-to-exceed $37,252.

Motion: Vice Mayor J. Gonzalez motioned to authorize the City Manager to execute a contract agreement with Custom Signs, Inc. to install two (2) marquee signs at Clara Park and Lugo Park, for an amount not-to-exceed $37,252, seconded by Council Member Alcantar. 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
B. Proposed New City Yard Project Presentation
Presented by the Public Works Director
Recommendation: It is recommended that the City Council discuss the new proposed City Yard Project for the Public Works Department and provide directions to city staff.

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City Council/Successor Agency Minutes of 10/03/2023 Page 5 of 5 NO MOTION – PRESENTATION ONLY

15. COUNCIL DISCUSSION – NONE
At 8:11 p.m., Assistant City Attorney, Paloma McEvoy recessed to closed session.

16. CLOSED SESSION
A. CLOSED SESSION PURSUANT TO GOVERNMENT CODE § 54956.9(d)(2) – One Matter
At 8:33 p.m., Mayor Lomelí reconvened to open session.

17. CLOSED SESSION ANNOUNCEMENT
City Attorney, Stephanie Arechiga announced that all five council members were present for all items and no further reportable action.

18. ADJOURNMENT
The City Council / Agency meeting adjourned at 8:33 p.m.

Daisy Lomelí
Mayor
ATTEST:

Richard Iglesias
City Clerk

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Attachment
B

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Blank Page

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“Serving The People” "Sirviendo A La Comunidad"
Staff Report
10/17/2023 Page 1 of 3

STAFF REPORT
Date: October 17, 2023
To: Honorable Mayor and City Council Members
From: Alfonso Noyola, City Manager/Executive Director
Prepared By: Cecilia Madrigal-Gonzalez, Senior Planner
Subject: Adoption of Proposed Resolution No. 23-44: Permanent Local Housing Allocation (PLHA) Program Grant Funding Eligible Activities for Years 2 and 3

RECOMMENDATION
Staff recommends that the City Council adopt Resolution No. 23-44 (Attachment A) which approves the following action(s):

1. Elect eligible activities for Years 2 and 3 of the 5-year Permanent Local Housing Allocation Program grant period for Supportive Case Management, Rental Assistance, and Emergency Shelter Beds Program (Salvation Army Bell Shelter).

BACKGROUND
The Permanent Local Housing Allocation (“PLHA”) is an SB 2 Planning Grants funded program that was approved by the State legislature in 2017. It is designed to provide an ongoing annual source of funding through State Property Transfer Fees. PLHA funding is first allocated to a regional entity, in this case, the Los Angeles County Development Authority (“LACDA”) and later distributed to individual participating cities according to an allocation formula. Cudahy will receive a similar allocation amount on an annual basis over a five-year period and unexpended program funds may be carried over from year to year but must be used within five years of their original allocation date.

The City has previously adopted two resolutions relating to PLHA funds. Resolution No. 21-25 (Attachment B) was adopted in September 2021, approving participation, and selecting eligible activities in Year 2, and Resolution No. 23-32 (Attachment C) was adopted in June 2023, approving participation in Year 3 of the program. Due to administrative delays and decisions at both the State and County levels, many cities in Los Angeles County, including Cudahy, were Item Number
14A

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“Serving The People” "Sirviendo A La Comunidad"
Staff Report
10/17/2023 Page 2 of 3
not authorized by LACDA to use any of its Year 2 funds. City staff have received confirmation from LACDA the City’s funding allocation of $345,100 for Year 2 will be made available within the City’s 23-24 FY.

On April 6, 2023, LACDA issued a bulletin listing the Year 3 PLHA funding allocations for each participating city. Cudahy is listed as eligible to receive $375,334 in Year 3 PLHA funding. LACDA anticipated the funding will be made available by December 31, 2023.

ANALYSIS
The PLHA program is designed to target individuals and households experiencing homelessness. The program includes provisions of housing and supportive case management services to individuals with the goal of obtaining and retaining housing. Services include but are not limited to, assisting persons who are experiencing or at risk of homelessness, providing rapid rehousing, rental assistance, supportive/case management services that allow people to obtain and retain housing, operating and capital costs for navigation centers and emergency shelters, and the new construction, rehabilitation, and preservation of permanent and transitional housing. Of the eligible activities, it is recommended that the City allocate the following activities and estimate allocation amount for Years 2 and 3 as described in Table 1 below. The full description of the proposed programs is Attachments D and E, respectively.

Table 1: Proposed Eligible Programs for PLHA Years 2 and 3 Program Name Brief Description
Allocation Estimate
Amount
Rental Assistance Assist Cudahy households with up to six months of rental assistance.

Year 2: $166,500
Year 3: $166,500
Supportive Services
Case Management
Support Cudahy residents by providing
supportive case management through the
funding of two Cudahy staff members
(Associate Planner and Housing Specialist II).

Year 2: $139,231
Year 3: $169,455
Emergency Shelter
Beds (The Salvation
Army Bell Shelter)
Support persons within Cudahy experiencing
homelessness by collaborating with the
Salvation Army Bell Shelter to fund 40 beds.

Year 2: $39,379
Year 3: $39,379
TOTAL: Year 2: $345,110
Year 3: $375,334

STRATEGIC PLAN CORRELATION

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“Serving The People” "Sirviendo A La Comunidad"
Staff Report
10/17/2023 Page 3 of 3
The eligible activities should support the following strategies of the City Council’s Implementation Action Plan within Goal B (Social Services):
• Strategy 1: Partner with appropriate agencies to ensure Cudahy residents receive social services.
• Strategy 3: Pursue grant opportunities as available to help residents with cash assistance or other needs.
• Strategy 5: Identify resources in the region and partner with other jurisdictions to support a regional approach to the delivery of social services.

FINANCIAL IMPACT
The City of Cudahy has been allocated a combined approximately $677,979 in PLHA special funding for Years 2 and 3. The anticipated special grant funding of $345,000 for Year 2 is already included as a projected funding source in the FY 2023–2024 City Budget (Fund 235). As such, there is no impact on the General Fund.

CONCLUSION
Staff recommends the City Council select the above-mentioned eligible programs to utilize the special funding for Years 2 and 3 of the PLHA program.

ATTACHMENT(S)
A. Draft Proposed Resolution No. 23-44
B. City Council Resolution No. 21-25
C. City Council Resolution No. 23-32
D. Draft Exhibit A’s for Proposed Eligible Programs for Year 2 E. Draft Exhibit A’s for Proposed Eligible Programs for Year 3

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1 RESOLUTION NO. 23-44

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF CUDAHY APPROVING ELIGIBLE ACTIVITIES IN THE

LOS ANGELES URBAN COUNTY PERMANENT LOCAL
HOUSING ALLOCATION PROGRAM FOR YEARS 2 AND
3 WITH THE LOS ANGELES COUNTY DEVELOPMENT

AUTHORITY (LACDA) ACTING ON BEHALF OF THE
COUNTY.

WHEREAS, Senate Bill (SB 2) created the Building Homes and Jobs Act and the Permanent Local Housing Allocation (PLHA Program), which is the first permanent source of funding for affordable housing; and
WHEREAS, the PLHA funds, allocated by the County of Los Angeles, provides a stable funding source for local governments to address affordable housing stock shortages by increasing the supply of affordable housing, increasing assistance to affordable owner-occupied workforce housing, assisting persons experiencing or at risk of homelessness, facilitating housing affordability; and promoting projects and programs to meet the local government’s unmet share of regional housing needs allocation; and WHEREAS, on September 7, 2021, the City Council of the City of Cudahy executed Resolution No. 21-25 approving the participation in the PLHA Program Year 2 and authorized the City Manager to sign a reimbursable contract with the Los Angeles County Development Authority (LACDA); and
WHEREAS, on June 20, 2023, the City Council of the City of Cudahy executed Resolution No. 23-32 approving the participation in the PLHA Program Year 3 and authorized the City Manager to sign a reimbursable contract with LACDA; and WHEREAS, the City Manager is authorized and intends to the execute a reimbursable contract with LACDA acting on behalf of the County of Los Angeles in order to receive PLHA funds for the activities of assisting persons in Cudahy who are experiencing or at risk of homelessness.

BASED UPON THE ABOVE RECITALS, THE CITY COUNCIL OF THE CITY OF

CUDAHY, CALIFORNIA, DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS:

SECTION 1. The recitals set forth above are true and correct and incorporated herein by this reference.

SECTION 2. The City Council approves the use of $677,979 in combined Year 2 and Year 3 PLHA funds, for the following three eligible activities: 1) Rental Assistance; 2) Supportive Services Case Management and 3) Emergency Shelter Beds (Salvation Army Bell Shelter).

Attachment A Page 20 of 383
Resolution No. 23-44
2 SECTION 3. The City Council authorizes the City Manager, to execute any and all documents, including reimbursable contract with the Los Angeles County Development Authority acting on behalf of the County of Los Angeles, necessary to participate in the Los Angeles Urban County PLHA Program on behalf of the City of Cudahy.

SECTION 4. The City Manager is authorized to make such other revisions, changes in summaries, fund totals, grand totals, and other portions of the PLHA Program as necessary to reflect and implement the appropriations of funds in this Resolution.

SECTION 5. The City Clerk shall attest and certify the passage and adoption of this Resolution and it shall become effective immediately upon its approval.

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

_____________________________
Daisy Lomelí
Mayor
ATTEST:

Richard Iglesias
City Clerk

Page 21 of 383 ends

Resolution No. 23-44
3 CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS:

CITY OF CUDAHY )
I, Richard Iglesias, City Clerk of the City of Cudahy, hereby certify that the foregoing Resolution No. 23-44 was passed and adopted by the City Council of the City of Cudahy, signed by the Mayor and attested by the City Clerk at a regular meeting of said Council held on the 17th day of October, 2023, and that said Resolution was adopted by the following vote, to-wit:

AYES:

NOES:

ABSTAIN:

ABSENT:

______________________
Richard Iglesias
City Clerk

Page 22 of 383 ends

RESOLUTION NO. 21-25

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

CUDAHY, CALIFORNIA APPROVING PARTICIPATION IN

THE LOS ANGELES URBAN COUNTY PERMANENT

LOCAL HOUSING ALLOCATION PROGRAM BY

AUTHORIZING THE MAYOR, OR HIS DESIGN EE, TO SIGN

A REIMBURSABLE CONTRACT WITH THE LOS

ANGELES COUNTY DEVELOPMENT AUTHORITY
(LACDA) ACTING ON BEHALF OF THE COUNTY.

WHEREAS, in 2017, Governor Brown signed a 15-bill housing package aimed at addressing the state's housing shortage and high housing costs. Specificaily, it included the Building Homes and Jobs Act (SB 2, 2017), and created the Los Angeles u,;:,,an County Permanent Local Housing Allocation (PLHA) Program; and WHEREAS, on May 13, 2021, the County of Los Angeles ("County") announced the availability of PLHA Program funds, to provide a stable funding source fo'r Jocal governments to address affordable housing stock shortages; and WHEREAS, on June 30, 2021, applications were due for the 2020 formula based PLHA funding allocation. If a local government did not submit a complete application within the eligible time frame, the allocation reverted to the Housing Rehabilitation Loan Fund for the Multifamily Housing Program or for Department-administered technical assistance to local governments; and
WHEREAS, as of July 1, 2021, the City has not applied for the 2020-2021 PI_HA Program cycle; and
WHEREAS, on August 4, 2021, the City was notified that the opportunity to apply for the 2020-2021 Permanent Local Housing Allocation (PLHA) Program cycle was still available; and
WHEREAS, the City of Cudahy ("City") desires to participate in the Los Angeles Urban County Permanent Local Housing Allocation (PLHA) Program; and WHEREAS, the City authorizes the execution of a Reimbursable Contract with the County in order to receive said PLHA funds;

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

SECTION 1. The City Council authorizes the Mayor, or his designee, to execute any and all documents necessary for participation in the Los Angeles Urban County Permanent Local Housing Allocation Program on behalf of the City of Cudahy.

SECTION 2. This Resolution shall take effect upon adoption. The City Clerk shall certify to the adoption of this Resolution.

Attachment B Page 23 of 383
PASSED, APPROVED, AND ADOPTED by the City Council of the City of Cudahy at the regular meeting of this 7
th day of September 2021.
----
ATTEST:
2

Page 24 of 383 ends

CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS:

CITY OF CUDAHY )
I, Richard Iglesias, Assistant City Clerk of the City of Cudahy, hereby certify that the foregoing Resolution No. 21-25 was passed and adopted by the City Council of the City of Cudahy, signed by the Mayor and attested by the City Clerk at a regular meeting of said Council held on the 7
th day of September 2021 and that said Resolution was adopted by the following vote, to-wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

Lozoya, Lomeli, Alcantar, Gonzalez
None
Guerrero
None
IN WITNESS WHEREOF, I have hereunto set
my hand and affixed the Seal of the City of
Cudahy, this 8
th day of September 2021.

Richard Iglesias
Assistant City C
3 -

Page 25 of 383 ends

RESOLUTION NO. 23-32

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

CUDAHY APPROVING PARTICIPATION IN THE LOS

ANGELES URBAN COUNTY PERMANENT LOCAL HOUSING

ALLOCATION PROGRAM BY DESIGNATING THE CITY

MANAGER TO SIGN A REIMBURSABLE CONTRACT WITH

THE LOS ANGELES COUNTY DEVELOPMENT AUTHORITY
(LACDA) ACTING ON BEHALF OF THE COUNTY
WHEREAS, Senate Bill (SB 2) created the Building Homes and Jobs Act and the Permanent Local Housing Allocation (PLHA) Program, which is the first permanent source of funding for affordable housing;
WHEREAS, the PLHA funds, allocated by the County of Los Angeles, provides a stable funding source for local governments to address affordable housing stock shortages by increasing the supply of affordable housing, increasing assistance to affordable owner-occupied workforce housing, assisting persons experiencing or at risk of homelessness, facilitating housing affordability; and promoting projects and programs to meet the local government's unmet share of regional housing needs allocation;
WHEREAS, the City Council of the City of Cudahy desires to participate in the Los Angeles Urban County Permanent Housing Allocation (PLHA) Year 1, 2, and 3 Program for; and WHEREAS, the City Council of the City of Cudahy authorizes the City Manager to execute a contract with the County of Los Angeles in order to receive PLHA funds on behalf of the City for eligible activities;

BASED UPON THE ABOVE RECITALS, THE CITY COUNCIL OF THE CITY OF CUDAHY, CALIFORNIA, DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS:

SECTION 1. The City Council authorizes the City Manager, as its designee, to execute any and all documents necessary for participation in the Los Angeles Urban County PLHA Program on behalf of the City of Cudahy.

SECTION 2. The City Clerk shall attest and certify to the passage and adoption of this Resolution and it shall become effective immediately upon its approval.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Cudahy at its regular meeting on this 20th day of June 2023.

ATTEST:

Richar
City Cler
Daisy Lomeli
Mayor
Attachment C Page 26 of 383
Resolution No. 23-32

Page 2 of 2 ends

STATE OF CALIFORNIA

COUNTY OF LOS ANGELES

CITY OF CUDAHY

CERTIFICATION
SS:

I, Richard Iglesias, City Clerk of the City of Cudahy, hereby certify that the foregoing Resolution No.23-32 was passed and adopted by the City Council of the City of Cudahy, signed by the Mayor and attested by the City Clerk at a regular meeting of said Council held on the 20th day of June, 2023, and that said Resolution was adopted by the following vote, to-wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

C. Gonzalez, Fuentes, Alcantar, J. Gonzalez, and Lomeli None
None
None

Page 27 of 383 ends

Los Angeles County Development Authority
County of Los Angeles
Project Description and Activity Budget
Contract No. Version

PROJECT
Title:

Project No: Organization
Name:

Type:

Funding Period: To:

LACDA Program Mgr: Jurisdiction:

PLHA Activity
Activity Summary
Project Administration
Juan Arauz, AICP, Community Development Director
City of Cudahy
5220 Santa Ana Street
Cudahy, CA 90201
Telephone: 323-773-5143 ext. 224
Email: [email protected]
0 PLH062-23
YR2 The Emergency Shelter Beds
Program at TSA Bell Shelter
City of Cudahy
Participating City
Vanessa Estella
12/31/2024
PLHA

OPERATING AGENCY

6. Assisting persons who are experiencing or at risk of homelessness, including, but not limited to, providing rapid rehousing, rental assistance, supportive/case management services that allow people to obtain and retain housing, operating and capital costs for navigation centers and emergency shelters, and the new construction, rehabilitation, and preservation of permanent and transitional housing.

A. This activity may include subawards to administrative entities as defined in HSC Section 50490(a)(1-3) that were awarded CESH program or HEAP funds for rental assistance to continue assistance to these households.

B. Applicants must provide rapid rehousing, rental assistance, navigation centers, emergency shelter, and transitional housing activities in a manner consistent with the Housing First practices described in 25 CCR, Section 8409, subdivision (b)(1)-(6) and in compliance with WIC Section 8225(b)(8). An applicant allocated funds for the new construction, rehabilitation, and preservation of permanent supportive housing shall incorporate the core components of Housing First, as provided in WIC Section 8255, subdivision (b).

Sub-Activity:Rapid Rehousing,
Goal:40 Performance Indicator:Units
Los Angeles County Development Authority Exhibit A
Project No: PLH062-23 Version: 0
Attachment D

Page 28 of 383 ends

Los Angeles County Development Authority Exhibit A
Activity Summary
Special Conditions
This new program will support 40 beds to help individuals in the City of Cudahy who are experiencing homelessness or who are displaced, and are at less than 30% of the AMI. Services will be provided through a partnership with The Salvation Army Bell Shelter. The Salvation Army staff will oversee day-to-day operations and will provide the following supportive services:
substance abuse and mental health services, personal enrichment classes including employment and job placement services, laundry services and three daily meals.

The Salvation Army Bell Shelter is located at 5600 Rickenbacker Rd, Bell, CA 90201.

PLHA funds will cover personnel and non-personnel costs.

The Operating Agency agrees to comply and complete all necessary financial closeout procedures required by the County and, within a period of not more than forty-five (45) calendar days from the expiration date of this Contract. This time period will be referred to as the financial closeout period.

The County is not liable to provide reimbursement for any expenses or costs associated with this Contract after the expiration of the financial closeout period. After the expiration of the financial closeout period, those funds not paid to the Operating Agency under this Contract, if any, may be immediately reprogrammed by the Operating Agency into other eligible activities. The County may request a final financial audit for activities performed under this Contract at the expiration of the financial closeout period.

The requirements of this Contract may not be subcontracted by the Operating Agency without compliance of procurement standards and methods as outlined in 2 CFR Part 200 Subpart D Sections 200.318-200.326. Any attempt by the Operating Agency to subcontract without adherence to regulations as required by the County may be deemed a material breach of this Contract.

If the Operating Agency desires to subcontract, the Operating Agency shall provide the following information promptly at the County’s request:
• A description of the work to be performed by the Subcontractor; • A draft copy of the proposed subcontract; and
• Other pertinent information and/or certifications requested by the County.

The Operating Agency shall execute a professional services agreement, as appropriate with each consultant/contractor prior to incurring any costs or distributing any PLHA funds in compliance with contractual requirements.

The Operating Agency must maintain adequate financial documentation to support the program expenditures reported in the PLHA Funding Request forms. The financial supporting documentation will include contracts for goods or services, evidence of procurement, lease or rental agreements, invoices, billing statements, cancelled checks, timecards signed by employee and supervisors, payroll registers, payroll tax records, bank statements, bank reconciliations, a detailed General Ledger that supports the costs charged to the PLHA program, and an approved cost allocation method for indirect costs charged. Failure to provide the necessary supporting Project No: PLH062-23 Version: 0

Page 29 of 383 ends

Los Angeles County Development Authority Exhibit A
None.

Funding Summary
Contracted Services/Subrecipients
The City will enter into an agreement with The Salvation Army Bell Shelter to provide housing beds and support services for eligible individuals.

None.

Program Management Mitigation Conditions
Environmental Mitigation Conditions
expenditures reported in the PLHA Funding Request forms. The financial supporting documentation will include contracts for goods or services, evidence of procurement, lease or rental agreements, invoices, billing statements, cancelled checks, timecards signed by employee and supervisors, payroll registers, payroll tax records, bank statements, bank reconciliations, a detailed General Ledger that supports the costs charged to the PLHA program, and an approved cost allocation method for indirect costs charged. Failure to provide the necessary supporting documentation upon request will result in the disallowance of costs.

Cost Category Amount
Uncategorized $39,379.00
Total $39,379.00
Location
Name: The Salvation Army Bell Shelter
Address:

City:
5600 Rickenbacker Rd.

Bell Zip: 90201
Project No: PLH062-23 Version: 0

Page 30 of 383 ends

Los Angeles County Development Authority
County of Los Angeles
Project Description and Activity Budget
Contract No. Version

PROJECT
Title:

Project No: Organization
Name:

Type:

Funding Period: To:

LACDA Program Mgr: Jurisdiction:

PLHA Activity
Activity Summary
Project Administration
Juan Arauz, AICP, Community Development Director
City of Cudahy
5220 Santa Ana Street
Cudahy, CA 90201
Telephone: 323-773-5143 ext. 234
Email: [email protected]
0 PLH064-23
YR2 Supportive Services Case
Management Program
City of Cudahy
Participating City
Vanessa Estella
12/31/2024
PLHA

OPERATING AGENCY

6. Assisting persons who are experiencing or at risk of homelessness, including, but not limited to, providing rapid rehousing, rental assistance, supportive/case management services that allow people to obtain and retain housing, operating and capital costs for navigation centers and emergency shelters, and the new construction, rehabilitation, and preservation of permanent and transitional housing.

A. This activity may include subawards to administrative entities as defined in HSC Section 50490(a)(1-3) that were awarded CESH program or HEAP funds for rental assistance to continue assistance to these households.

B. Applicants must provide rapid rehousing, rental assistance, navigation centers, emergency shelter, and transitional housing activities in a manner consistent with the Housing First practices described in 25 CCR, Section 8409, subdivision (b)(1)-(6) and in compliance with WIC Section 8225(b)(8). An applicant allocated funds for the new construction, rehabilitation, and preservation of permanent supportive housing shall incorporate the core components of Housing First, as provided in WIC Section 8255, subdivision (b).

Sub-Activity:Supportive Case Management,
Goal:100 Performance Indicator:Households
Los Angeles County Development Authority Exhibit A
Project No: PLH064-23 Version: 0

Page 31 of 383 ends

Los Angeles County Development Authority Exhibit A
Activity Summary
None.

Funding Summary
Contracted Services/Subrecipients
Special Conditions
None.

Program Management Mitigation Conditions
Environmental Mitigation Conditions
This new program will provide supportive case management services to eligible clients at less than 30% of the AMI. Staff will work with regional and local homelessness coordinators to connect homeless individuals with resources, organizations, and other supportive services to include renters’ rights, eviction prevention, rent control case management, and other educational services.

PLHA funds will cover personnel costs.

The Operating Agency must maintain adequate financial documentation to support the program expenditures reported in the PLHA Funding Request forms. The financial supporting documentation will include contracts for goods or services, evidence of procurement, lease or rental agreements, invoices, billing statements, cancelled checks, timecards signed by employee and supervisors, payroll registers, payroll tax records, bank statements, bank reconciliations, a detailed General Ledger that supports the costs charged to the PLHA program, and an approved cost allocation method for indirect costs charged. Failure to provide the necessary supporting documentation upon request will result in the disallowance of costs.

Cost Category Amount
Uncategorized $139,231.00
Total $139,231.00
Project No: PLH064-23 Version: 0

Page 32 of 383 ends

Los Angeles County Development Authority
County of Los Angeles
Project Description and Activity Budget
Contract No. Version

PROJECT
Title:

Project No: Organization
Name:

Type:

Funding Period: To:

LACDA Program Mgr: Jurisdiction:

PLHA Activity
Activity Summary
Project Administration
Juan Arauz, AICP, Community Development Director
City of Cudahy
5220 Santa Ana Street
Cudahy, CA 90201
Telephone: 323-773-5143 ext. 224
Email: [email protected]
0 PLH065-23
YR2 Rental Assistance Program City of Cudahy
Participating City
Vanessa Estella
12/31/2024
PLHA

OPERATING AGENCY

6. Assisting persons who are experiencing or at risk of homelessness, including, but not limited to, providing rapid rehousing, rental assistance, supportive/case management services that allow people to obtain and retain housing, operating and capital costs for navigation centers and emergency shelters, and the new construction, rehabilitation, and preservation of permanent and transitional housing.

A. This activity may include subawards to administrative entities as defined in HSC Section 50490(a)(1-3) that were awarded CESH program or HEAP funds for rental assistance to continue assistance to these households.

B. Applicants must provide rapid rehousing, rental assistance, navigation centers, emergency shelter, and transitional housing activities in a manner consistent with the Housing First practices described in 25 CCR, Section 8409, subdivision (b)(1)-(6) and in compliance with WIC Section 8225(b)(8). An applicant allocated funds for the new construction, rehabilitation, and preservation of permanent supportive housing shall incorporate the core components of Housing First, as provided in WIC Section 8255, subdivision (b).

Sub-Activity:Rental Assistance,
Goal:14 Performance Indicator:Households
Los Angeles County Development Authority Exhibit A
Project No: PLH065-23 Version: 0

Page 33 of 383 ends

Los Angeles County Development Authority Exhibit A
Activity Summary
None.

Funding Summary
Contracted Services/Subrecipients
Special Conditions
None.

Program Management Mitigation Conditions
Environmental Mitigation Conditions
This new program will assist 14 qualified Cudahy households with 6 months of rental assistance to prevent displacement or eviction. Households must have income at less than 30% of the AMI to qualify.

PLHA funds will cover personnel and non-personnel costs.

Cost Category Amount
Uncategorized $166,500.00
Total $166,500.00
Project No: PLH065-23 Version: 0

Page 34 of 383 ends

Los Angeles County Development Authority
County of Los Angeles
Project Description and Activity Budget
Contract No. Version

PROJECT
Title:

Project No: Organization
Name:

Type:

Funding Period: To:

LACDA Program Mgr: Jurisdiction:

PLHA Activity
Activity Summary
Project Administration
Juan Arauz, AICP, Community Development Director
City of Cudahy
5220 Santa Ana Street
Cudahy, CA 90201
Telephone: 323-773-5143 ext. 224
Email: [email protected]
0 PLH062-24
YR3 The Emergency Shelter Beds
Program at TSA Bell Shelter
City of Cudahy
Participating City
Vanessa Estella
12/31/2025
PLHA

OPERATING AGENCY

6. Assisting persons who are experiencing or at risk of homelessness, including, but not limited to, providing rapid rehousing, rental assistance, supportive/case management services that allow people to obtain and retain housing, operating and capital costs for navigation centers and emergency shelters, and the new construction, rehabilitation, and preservation of permanent and transitional housing.

A. This activity may include subawards to administrative entities as defined in HSC Section 50490(a)(1-3) that were awarded CESH program or HEAP funds for rental assistance to continue assistance to these households.

B. Applicants must provide rapid rehousing, rental assistance, navigation centers, emergency shelter, and transitional housing activities in a manner consistent with the Housing First practices described in 25 CCR, Section 8409, subdivision (b)(1)-(6) and in compliance with WIC Section 8225(b)(8). An applicant allocated funds for the new construction, rehabilitation, and preservation of permanent supportive housing shall incorporate the core components of Housing First, as provided in WIC Section 8255, subdivision (b).

Sub-Activity:

Goal: Performance Indicator:

Los Angeles County Development Authority Exhibit A
Project No: PLH062-24 Version: 0
Attachment E Page 35 of 383
Los Angeles County Development Authority Exhibit A
Activity Summary
Special Conditions
This new program will support 40 beds to help individuals in the City of Cudahy who are experiencing homelessness or who are displaced, and are at less than 30% of the AMI. Services will be provided through a partnership with The Salvation Army Bell Shelter. The Salvation Army staff will oversee day-to-day operations and will provide the following supportive services:
substance abuse and mental health services, personal enrichment classes including employment and job placement services, laundry services and three daily meals.

The Salvation Army Bell Shelter is located at 5600 Rickenbacker Rd, Bell, CA 90201.

PLHA funds will cover personnel and non-personnel costs.

The Operating Agency agrees to comply and complete all necessary financial closeout procedures required by the County and, within a period of not more than forty-five (45) calendar days from the expiration date of this Contract. This time period will be referred to as the financial closeout period.

The County is not liable to provide reimbursement for any expenses or costs associated with this Contract after the expiration of the financial closeout period. After the expiration of the financial closeout period, those funds not paid to the Operating Agency under this Contract, if any, may be immediately reprogrammed by the Operating Agency into other eligible activities. The County may request a final financial audit for activities performed under this Contract at the expiration of the financial closeout period.

The requirements of this Contract may not be subcontracted by the Operating Agency without compliance of procurement standards and methods as outlined in 2 CFR Part 200 Subpart D Sections 200.318-200.326. Any attempt by the Operating Agency to subcontract without adherence to regulations as required by the County may be deemed a material breach of this Contract.

If the Operating Agency desires to subcontract, the Operating Agency shall provide the following information promptly at the County’s request:
• A description of the work to be performed by the Subcontractor; • A draft copy of the proposed subcontract; and
• Other pertinent information and/or certifications requested by the County.

The Operating Agency shall execute a professional services agreement, as appropriate with each consultant/contractor prior to incurring any costs or distributing any PLHA funds in compliance with contractual requirements.

The Operating Agency must maintain adequate financial documentation to support the program expenditures reported in the PLHA Funding Request forms. The financial supporting documentation will include contracts for goods or services, evidence of procurement, lease or rental agreements, invoices, billing statements, cancelled checks, timecards signed by employee and supervisors, payroll registers, payroll tax records, bank statements, bank reconciliations, a detailed General Ledger that supports the costs charged to the PLHA program, and an approved cost allocation method for indirect costs charged. Failure to provide the necessary supporting Project No: PLH062-24 Version: 0

Page 36 of 383 ends

Los Angeles County Development Authority Exhibit A
None.

Funding Summary
Contracted Services/Subrecipients
The City will enter into an agreement with The Salvation Army Bell Shelter to provide housing beds and support services for eligible individuals.

None.

Program Management Mitigation Conditions
Environmental Mitigation Conditions
expenditures reported in the PLHA Funding Request forms. The financial supporting documentation will include contracts for goods or services, evidence of procurement, lease or rental agreements, invoices, billing statements, cancelled checks, timecards signed by employee and supervisors, payroll registers, payroll tax records, bank statements, bank reconciliations, a detailed General Ledger that supports the costs charged to the PLHA program, and an approved cost allocation method for indirect costs charged. Failure to provide the necessary supporting documentation upon request will result in the disallowance of costs.

Cost Category Amount
Uncategorized $39,379.00
Total $39,379.00
Project No: PLH062-24 Version: 0

Page 37 of 383 ends

Blank Page

Page 38 of 383 ends

“Serving The People” "Sirviendo A La Comunidad"
Staff Report
10/17/2023 Page 1 of 2

STAFF REPORT
Date: October 17, 2023
To: Honorable Mayor and City Council Members
From: Alfonso Noyola, City Manager
By: Cecilia Madrigal-Gonzalez, Senior Planner
Subject: Adoption of Proposed Resolution No. 23-45, A Resolution of the City Council of the City of Cudahy Amending the Classification Plan for City Employee (Associate Planner)

RECOMMENDATION
The City Council is requested to approve Resolution No. 23-45 of the City Council of the City of Cudahy amending the Classification Plan for City Employee (Associate Planner).

BACKGROUND

1. On April 18, 2023, the City Council received and filed the classification and compensation study report which recommended job titles, reclassification, and salary changes.

2. On June 6, 2023, the City Council adopted Resolution No. 23-24 amending the Classification Plan for City employees, which included the title change from Planning Associate to Associate Planner.

ANALYSIS
A Classification Plan is the foundation of any municipal personnel management system. Job descriptions become the basis for orientation, training, performance evaluation, and recruitment. The City’s current Classification Plan was designed to provide a strong and understandable rationale for assigning individuals to classifications based on the responsibilities they assume.

An Associate Planner has a wide range of duties and responsibilities which requires increasingly specialized knowledge of the planning field. Currently, the Associate Planner’s classifications duties and responsibilities are reflective of current planning and advanced planning work.

Item Number
14B

Page 39 of 383 ends

“Serving The People” "Sirviendo A La Comunidad"
Staff Report
10/17/2023 Page 2 of 2

However, due to the adoption of the Rent Stabilization Ordinance, the Housing Division has experienced an increase in services and activities such as assisting Cudahy residents’ landlords, implementing the Rent Stabilization Guidelines, and conducting outreach and workshops to name a few. The Planning Division is still in need of assistance with development projects monitoring, implementation of the 6th Cycle Housing Element, commercial and retail cannabis, and most recently the adoption of the Economic Development Strategic Plan.

To fill the needs of both Divisions, the Community Development Department is requesting to amend the Associate Planner classification plan to include Housing Division responsibilities, similar to those of a Housing Specialist. The redlines associated with the recommended proposed amendments, which show deletions in strikeout and additions as underlines, can be found in Attachment B.

CONCLUSION
The Community Development Department is rapidly growing in all divisions and additional staffing is requested to assist both the Planning and Housing Division. As such, the City Council is recommended to approve the proposed amendments to the Associate Planner classification to bring much needed assistance to both divisions.

STRATEGIC PLAN IMPACT
Not applicable.

FINANCIAL IMPACT
There is no impact to the General Fund associated with amending the classification and no salary changes are part of the recommendation.

ATTACHMENTS
A. Draft Proposed Resolution No. 23-45
B. Associate Planner Classification Redline Version

Page 40 of 383 ends

1 RESOLUTION NO. 23-45

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF CUDAHY, CALIFORNIA AMENDING THE

CLASSIFICATION PLAN FOR CITY EMPLOYEE
(ASSOCIATE PLANNER).

WHEREAS, on April 18, 2023, the City Council received and filed the classification and compensation study report which recommended job titles, reclassification and salary changes; and
WHEREAS, on June 6, 2023, the City Council adopted Resolution No. 23-24 amending the Classification Plan for City employees consistent with the classification and compensation study report dated March 30, 2023; and
WHEREAS, the City finds that it is necessary to consistently revisit its Classification Plan to assess its compatibility with meeting the City’s existing organizational need;

BASED UPON THE ABOVE RECITALS, THE CITY COUNCIL OF THE CITY OF

CUDAHY, CALIFORNIA, DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS:

SECTION 1. The recitals set forth above are true and correct and incorporated herein by this reference.

SECTION 2. The Classification Plan of the City of Cudahy is hereby amending the Associate Planner classification specification attached hereto as “Exhibit A.” SECTION 3. This Resolution shall take effect immediately upon its adoption by the City Council and the City Clerk shall certify the passage and adoption of this Resolution.

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Cudahy at its regular meeting on this 17TH day of October 2023. _____________________________
Daisy Lomelí
Mayor
Attachment A Page 41 of 383
Resolution No. 23-45
2 ATTEST:

Richard Iglesias
City Clerk

CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS:

CITY OF CUDAHY )
I, Richard Iglesias, City Clerk of the City of Cudahy, hereby certify that the foregoing Resolution No. 23-44 was passed and adopted by the City Council of the City of Cudahy, signed by the Mayor and attested by the City Clerk at a regular meeting of said Council held on the 17th day of October, 2023, and that said Resolution was adopted by the following vote, to-wit:

AYES:

NOES:

ABSTAIN:

ABSENT:
______________________
Richard Iglesias, City Clerk

Page 42 of 383 ends

Resolution No. 23-45
3 EXHIBIT “A”

ASSOCIATE PLANNER CLASSIFICATION SPECIFICATIONS

Page 43 of 383 ends

ASSOCIATE

PLANNER
Class Code:

CUD-014

CITY OF CUDAHY (CA)
Established Date: Jun 6, 2023
Revision Date: Jun 14, 2023 October 17, 2023

SALARY RANGE
$38.19 - $46.43 Hourly
$6,620.00 - $8,047.00 Monthly
$79,440.00 - $96,564.00 Annually
CLASS CONCEPT:

DEFINITION:

Under general limited supervision, performs a variety of journey level professional duties and responsibilities in support of the city’s current and advanced planning functions, processes planning applications in accordance with the city’s zoning code, prepares and presents reports and recommendations, provides information and assistance to applicants, developers, consultants, the general public, and outside agencies and organizations regarding city codes, policies, standards, and processes related to planning matters, coordinates and provides services and activities pertaining to the City’s housing and services program, including but not limited to, implementation of a rent stabilization ordinance, rental assistance, conducting workshops for persons experiencing homelessness or at-risk of homelessness, implementation of first-time home buyer assistance program and performs other related duties as required.

DISTINGUISHING CHARACTERISTICS:

This is the journey level professional class in the Planning Series. Positions in this class are normally filled by advancement from the entry level professional classification of assistant planner or, when filled from the outside, require prior professional planning work experience.

Work involves more complex duties and increasing responsibility for the application of professional knowledge and skills to various municipal planning and zoning issues.

Responsibilities include the preparation of specific reports and plans with opportunity for independent judgment in planning work details and making technical determinations.

Incumbents may be assigned supervisory responsibility over assistant planners, planning technicians, and administrative support staff.

Attachment B

Page 44 of 383 ends

EXAMPLES OF DUTIES:

EXAMPLES OF ESSENTIAL DUTIES:

The duties and responsibilities listed below are intended to provide a representative list of the various types of work that may be performed. Specifications are not intended to reflect all duties performed within the job class, and incumbents may expect to perform other related similar duties.
• Performs a variety of planning related functions, including advance and current planning; administers and implements the zoning and municipal codes; and reviews and processes various plans and applications for residential, commercial, and industrial projects.
• Collects and evaluates information related to the application process and determines conformity with laws, regulations, policies, and procedures; recommends approval or alternative approaches.
• Conducts project site checks and field inspections.
• Provides front counter and phone support.
• Provides information and assistance to developers, property owners, the public, other divisions, and outside agencies regarding laws, regulations, standards, policies, and procedures related to the submission of plans, the processing of applications, and implementation requirements.
• Investigates and responds to complaints of zoning code violations. • Serves as project manager for use permits and other public hearing cases including, receiving and filing applications, analyzing and evaluating site and architectural plans, reviewing for completeness of the application, conferring with the developer or applicant for issues, preparing staff reports and conducting environmental assessments, and determining the overall content and format of reports.
• Administers the city’s Community Development Block Grant Program (CDBG), including overseeing a consultant, assisting Finance with submitting funding requests, and assisting parks and recreation with submitting quarterly information. • Conducts field inspections, business license reviews, environmental assessments, and provides assistance in the area of code enforcement; develops graphics, maps, and charts; and collects, analyzes, and tabulates data.
• Prepares written correspondence, detailed reports, and other documents, such as general plan elements, specific plans, annexation studies, and demographic and census reports.
• Conducts specialized surveys, studies, and plans as necessary to address a wide variety of planning and development issues.
• Schedules and attends formal and informal meetings relative to various planning projects or activities.
• Develops and maintains good working relationships with other city staff, other jurisdictions, and the public.
• May act on behalf of the community development manager in his/her absence. • Participates in cross-training and provides back up to other internal staff; assists other office personnel in performing related administrative support functions; serves as a backup to other finance and/or city functions.
• Establishes positive working relationships with city staff and the general public. • Assumes responsibility for ensuring the duties of the position are performed in a safe and efficient manner.

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• Plan and prioritize the services and activities of assigned programs within the Housing Division, including the rent stabilization ordinance, rental assistance program, Cal Home grant for first-time home buyer and housing rehabilitation assistance; duties will include being the liaison between the City’s grant consultant, other resource agencies such as Stayed Housed LA, Housing Rights Center, and the Los Angeles County Development Authority (LACDA), and the public to ensure the public is receiving every opportunity to connect and receive available housing resources.
• Provide information and resolve problems with applicants, tenants, owners, and the public as needed; coordinate and participate in the preparation of newsletters and outreach material.
• Develop procedures for new programs; develop and receive approval for policies and procedures to implement federal regulations and new programs; participate in development of new policies and procedures to improve service delivery. • Represents the City at meetings with community-based organizations, other County departments, regional housing efforts and small businesses providing housing and supportive housing.
• Performs other duties as assigned.

TYPICAL QUALIFICATIONS:

QUALIFICATIONS:

Knowledge of: Operations, services, and activities of a community planning and development program; modern principles, practices, and techniques of current and advance planning; principles and practices used in building, architecture, and engineering; development review procedures and requirements; site planning and architectural design principles; pertinent federal, state, and local laws, codes, and regulations, including laws underlying general plans, zoning and land divisions, and applicable environmental laws and regulations; recent developments, current literature, research methods,
and sources of information related to municipal planning, urban growth, and development; methods and techniques of effective technical report preparation and presentation; statistical methods and research techniques applicable to the preparation of municipal planning studies; methods and techniques of eliciting community participation in planning and development issues; customer service techniques, practices, and principles; modern office procedures, methods, and equipment including computers and supporting software applications; computer related programs for mapping, and data sources including Geographic Information Systems.; principles and practices used in housing assistance; case management techniques and pertinent federal, state, and local laws, codes, and regulations.

Ability to: Perform journey level professional planning duties of a complex nature in the development, implementation, and modification of city plans and regulations; apply policies, procedures, and standards pertaining to the municipal planning process, interpret, analyze, apply, implement, and explain pertinent federal, state, and local laws, codes, and regulations, including city codes, policies, and administrative directives; interpret planning and zoning programs to the general public; read, interpret, and prepare maps, graphs, charts, site plans, legal descriptions, and other descriptive material; analyze and compile statistical and technical information; develop recommendations regarding the use of property; process development applications and coordinate necessary communication between staff, developers, and other

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agencies; analyze projects and potential projects for consistency with planning regulations, general planning principles, and architectural quality; prepare and analyze technical and administrative reports, statements, and correspondence; present technical data in verbal, written, graphic, and map form; effectively present information and respond to questions; work under steady pressure with frequent interruptions and a high degree of public contact by phone or in person; deal constructively with conflict and develop effective solutions; operate modern office equipment and computers, including specialized computer applications; communicate clearly and concisely, both orally and in writing; establish and maintain effective professional working relationships with those contacted in the course of work; assist in the supervision of paraprofessional, technical, and administrative support staff as assigned.; apply housing assistance program knowledge in the assessment of service delivery, including development of policies and procedures to improve and streamline service delivery; effectively represent the Planning and Housing Divisions to outside individuals and agencies to accomplish the goals and objectives of the units; respond tactfully, clearly, concisely, and appropriately to inquiries from the public, staff, and other agencies to sensitive issues in area of responsibility and diffuse or intervene in threatening and emergency situations.

Education and Experience: Any combination of education and experience that may provide the required knowledge, abilities, and skills is qualifying. A typical way is graduation from an accredited college or university with a Bachelor’s Degree in planning, architecture, geography, or a related field; and at least two (2) years of professional planning experience in local government comparable to an assistant planner. The ability to speak Spanish is highly desirable., but not required.

Necessary Special Requirements: Possession of a valid Class C motor vehicle operator’s license from the State of California.

OTHER QUALIFICATIONS:

The physical demands described below are representative of those that must be met by an employee to successfully perform the essential functions of the job. Reasonable accommodations may be made to enable individuals with disabilities to perform the essential functions on a case-by-case basis.

While performing the duties of this classification, an incumbent is regularly required to use hands and fingers to handle or feel. The employee is frequently required to talk, hear, sit and reach with hands and arms. The employee is occasionally required to stand, walk, climb, or balance, and stoop, kneel, crouch, or crawl. The employee must regularly lift and/or move up to ten (10) pounds, frequently lift and/or move up to twenty-five (25) pounds. Specific vision abilities required by this job include close vision, distance vision, color vision, peripheral vision, depth perception, and the ability to adjust focus.

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“Serving The People” "Sirviendo A La Comunidad"
Staff Report
10/17/2023 Page 1 of 4

STAFF REPORT
Date: October 17, 2023
To: Honorable Mayor and City Council Members
From: Alfonso Noyola, City Manager
By: Cecilia Madrigal-Gonzalez, Senior Planner
Subject: Recommendation to Approve a Professional Services Agreement (PSA) to Prepare Phase II Environmental Site Assessments (ESA) for several City Owned Properties between Polytechnique Environmental Inc. and the City of Cudahy

RECOMMENDATION
The City Council is requested to take the following action(s):

1. Approve a Professional Services Agreement (PSA) (Attachment A) to Prepare Phase II Environmental Site Assessments (ESA) for several city owned properties; and

2. Authorize the City Manager to execute the contract agreement between the City of Cudahy and Polytechnique Environmental Inc.

BACKGROUND

1. In 2021, Gov. Gavin Newsom signed legislation referred to as the Cleanup in Vulnerable Communities Initiative (CVCI), allocating $500 million to expedite the cleanup and beneficial reuse of contaminated properties, with priority given to properties in historically vulnerable and disadvantaged communities. The Department of Toxic Substances Control’s Office of Brownfields Equitable Community Revitalization Grant (ECRG) will provide more than $250 million in grants to incentivize cleanup and investment in disadvantaged areas of California.

2. On April 7, 2022, the City of Cudahy (“City”) applied for special funding, specifically, under the Community-wide Assessment Grant (Round 1) which is intended as the first steps or early stages to learn about environmental conditions where new development is being planned. As part of the application, the City listed four sites listed below in Table 1. On June 6, 2023, the City was awarded up to $300,000 in special funding to begin the investigations.

Item Number
14C

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TABLE 1 – CITY OWNED PROPERTIES

SUCCESSOR

AGENCY SITE
ID

ADDRESS/CROSS STREET ACCESSOR PARCEL NUMBER(S)
SITE 1 5256-5260 Elizabeth
Street
6224-001-901, 6224-001-902
SITE 2 Atlantic Ave/Santa Ana St 6224-018-911, 6224-018-915,6224-018- 912,6224-018-914,6224-018-913
SITE 3 Atlantic Ave/Clara St 6226-022-911, 6226-022-910, 6226-022-908, 6226-022 909, 6226-022-906, 6226-022-907,
6226-022-905, 6226-022-904
SITE 4 Atlantic Ave/Cecilia St 6224-022-900, 6224-022-901, 6224-022-902, 6224-022-904, 6224-022-903

3. On December 27, 2022, the City of Cudahy, through its consultant, TransTech, sub consulted with Polytechnique Environmental, Inc. to prepare Phase I ESA for various city owned properties. A Phase I Environmental Site Assessment (ESA) is an environmental report prepared for individual properties that identifies either potential or existing environmental contamination. Such reports are generally considered to be the first step in the process of environmental due diligence.

4. On April 6, 2023, Polytechnique Environmental, Inc. completed the Phase I ESAs for all properties.

5. On July 24, 2023, City staff issued a Request for Proposal (RFP) for the preparation of Phase II ESAs of these properties and investigation of all Recognized Environmental Conditions (REC) identified in the Phase I ESA reports. RFP deadline closed on August 9, 2023, at 2:00PM.

City staff received ten proposals from the following consultants: ATLAS, Clark Seif Clark Inc., EEC Environmental, Millennium Consulting Associates, Monterose Environmental, NV-5 Alta Environmental, Partner Engineering and Science, Inc., Polytechnique Environmental, Inc., Smith-Emery Laboratories, Inc., and Universal Engineering Sciences.

ANALYSIS
As stated above, the City received a total of ten proposals in response to the RFP. Three evaluators assessed the proposals based on the following criteria: Compliance with the RFP Requirements, Project Understanding and Approach, Experience and Level of effort, schedule, and effectiveness to provide efficient services. The bidders cost and average score are provided in Table 2 below:

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TABLE 2 – SUMMARY OF BIDDER COST AND AVERAGE SCORES
Bidder Cost Average Score
ATLAS $76,070.05 74.67
Clark Seif Clark Inc. $84,925.70 88
EEC Environmental $54,520.00 84
Millennium Consulting Associates $52,439.48 92
Monterose Environmental $69,700.00 87
NV-5 Alta Environmental $124,902.60 89
Partner Engineering and Science, Inc. $37,750.00 93
Polytechnique Environmental, Inc. $94,557.00 94
Smith-Emery Laboratories, Inc. $51,478.00 78
Universal Engineering Sciences Not Provided 77
Polytechnique Environmental Inc. scored the highest average score and although was not the lowest bidder they demonstrated compliance with all guidelines, commitment to deliver timely results and compliance with DTSC requirements. Furthermore, Polytechnique Environmental, Inc. conducted the Phase I ESA and are familiar with the City’s properties.

CONCLUSION
To continue the environmental investigation for the city-owned properties as mentioned in Table 1 above, City staff is requesting the City Council to approve the PSA and authorize the City Manager to execute the contract agreement with Polytechnique Environmental, Inc. not to exceed amount of $94,557.00.

STRATEGIC PLAN IMPACT
Goal E (City Infrastructure and Service Delivery) Objective: 1. Complete the Capital Improvement Plan, which anticipates the capital needs of Cudahy over a five-year period.

FINANCIAL IMPACT
The City has received authorization from DTSC to receive up to $300,000 in special funding to conduct the environmental studies necessary for both Phases I and II. Phase I utilized approximately $22,000 of the funding thus far within FY 21-22 and Phase II shall not exceed $94,557.00. The execution of this contract will not exceed the special funding and thus no negative impact on the General Fund will occur. The City’s adopted Fiscal Year 23-24 has already accounted for this special funding under Fund 235 (Other Grants) and no amendment is necessary.

ATTACHMENTS
A. Draft Professional Services Agreement

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B. Proposal from Polytechnique Environmental, Inc
C. Request for Proposals (RFP) to Prepare Phase II Environmental Site Assessment (ESA)

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2023

PROFESSIONAL SERVICES AGREEMENT
(Engagement: Phase II Environmental Site Assessments )
THIS 2023 PROFESSIONAL SERVICES AGREEMENT (“Agreement”) is made and entered into this _______day of ___________ 2023 (hereinafter, the “Effective Date”), by and between the City of Cudahy, a municipal corporation (“CITY”) and Polytechnique Environmental Inc. (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.

RECITALS
This AGREEMENT is made and entered into with respect to the following facts:

WHEREAS, on October ___, 2023, the CITY entered into a Professional Services Agreement (the “Master Agreement”) with Polytechnique Environmental Inc. to complete Phase II Environmental Assessments for four (4) city-owned properties; and WHEREAS, CONSULTANT represents that it is fully qualified to perform such professional services by virtue of its experience and the training, education and expertise of its principals and employees; and
WHEREAS, CONSULTANT further represents that it is willing to accept responsibility for performing such services in accordance with the terms and conditions set forth in this Agreement; and
WHEREAS, the execution of this Agreement was approved by the Cudahy City Council at its Regular Meeting of October 17, 2023.

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

I.

ENGAGEMENT TERMS

1.1SCOPE OF SERVICES: Subject to the terms and conditions set forth in this Agreement CONSULTANT agrees to perform the services and tasks set forth in that certain proposal of CONSULTANT (hereinafter “Scope of Services”) which is attached and incorporated hereto as Exhibit “A.” CONSULTANT further agrees to furnish to CITY all labor, materials, tools, supplies, equipment, services, tasks and incidental and customary work Attachment A Page 53 of 383

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necessary to competently perform and timely complete the services and tasks set forth in the Scope of Services. For the purposes of this Agreement the aforementioned services and tasks set forth in the Scope of Services shall hereinafter be referred to generally by the capitalized term “Work.”

1.2TERM: This Agreement shall have a term of one (1) year commencing from the date all of the Parties have executed the Agreement (“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 section 5 of this Agreement.

1.3 COMPENSATION:

A. CONSULTANT shall perform all Work in accordance with the relevant hourly billing rate as set forth in the Scope of Services, which is attached and incorporated hereto as Exhibit “A”.

B. Section 1.3(A) notwithstanding, CONSULTANT’s total compensation for the performance of all Work contemplated, this Agreement shall not exceed the total budgeted aggregate sum of $94,557.00 (hereinafter, the “Not-toExceed Sum”) for the entire one (1) year term of the Agreement, unless such added expenditure is first approved by the CITY acting in consultation with the City Manager. In the event CONSULTANT’s charges are projected to exceed the Not-to-Exceed Sum prior to the expiration of this Agreement, the CITY may suspend CONSULTANT’s performance pending the CITY’s approval of any anticipated expenditures in excess of the Not-to-Exceed Sum or any other CITY approved amendment to the compensation terms of this Agreement.

1.4 PAYMENT OF COMPENSATION: Following the conclusion of each calendar month, CONSULTANT shall submit to CITY an itemized invoice indicating the services and tasks performed 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 shall 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 shall notify CONSULTANT in writing of any disputed amounts included in the invoice. Within forty-five (45) calendar days of receipt of each invoice, CITY shall pay all undisputed amounts included on the invoice. CITY shall not withhold applicable taxes or other authorized deductions from payments made to CONSULTANT.

1.5 ACCOUNTING RECORDS: CONSULTANT shall 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 shall have the right to access and examine such records, without charge, during normal business hours. CITY shall further have the right to audit such records, to make

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transcripts therefrom and to inspect all program data, documents, proceedings, and activities.

1.6 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 shall 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 shall 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

2.1CITY’S REPRESENTATIVES: The CITY hereby designates City Manager and the City Clerk (hereinafter, the “CITY Representatives”) to act as its representative for the performance of this Agreement. The CITY Representative or his designee shall act on behalf of the CITY for all purposes under this Agreement. CONSULTANT shall not accept directions or orders from any person other than the CITY Representatives or his designee.

2.2CONSULTANT REPRESENTATIVE: CONSULTANT hereby designates [WHO CONSULTANT DESIGNATES], to act as its representative for the performance of this Agreement (hereinafter, “CONSULTANT Representative”). CONSULTANT Representative shall have full authority to represent and act on behalf of the CONSULTANT for all purposes under this Agreement. CONSULTANT Representative or his designee shall supervise and direct the performance of the Work, using his best skill and attention, and shall 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 shall constitute notice to CONSULTANT.

2.3COORDINATION OF SERVICE; CONFORMANCE WITH
REQUIREMENTS: CONSULTANT agrees to work closely with CITY staff in the performance of the Work and this Agreement and shall be available to CITY staff and the CITY Representatives at all reasonable times. All work prepared by CONSULTANT shall be subject to inspection and approval by CITY Representatives or their designees.

2.4STANDARD OF CARE; PERFORMANCE OF EMPLOYEES:

CONSULTANT represents, acknowledges and agrees to the following:

A. CONSULTANT shall perform all Work skillfully, competently and to the highest standards of CONSULTANT’s profession;

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B. CONSULTANT shall perform all Work in a manner reasonably satisfactory to the CITY;
C. CONSULTANT shall 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.);
D. CONSULTANT understands the nature and scope of the Work to be performed under this Agreement as well as any and all schedules of performance;
E. 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
F. All of CONSULTANT’s employees and agents (including but not limited 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 shall be maintained throughout the term of this Agreement and made available to CITY for copying and inspection.

The Parties acknowledge and agree that CONSULTANT shall 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 shall be commenced immediately upon their discovery by either Party and shall be completed within seven (7) calendar days from the date of discovery or such other extended period of time authorized by the CITY Representatives in writing and in their sole and absolute discretion. The Parties acknowledge and agree that CITY’s acceptance of any work performed by CONSULTANT or on CONSULTANT’s behalf shall 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 profession.

2.5ASSIGNMENT: 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,

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CONSULTANT agrees that it shall 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 shall be ineffective, null and void and shall constitute a material breach of this Agreement.

2.6CONTROL AND PAYMENT OF SUBORDINATES; INDEPENDENT
CONTRACTOR: The Work shall 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 shall at all times be under CONSULTANT’s exclusive direction and control. CONSULTANT shall pay all wages, salaries and other amounts due such personnel and shall assume responsibility for all benefits, payroll taxes, Social Security and Medicare payments and the like. CONSULTANT shall 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.

2.7REMOVAL OF EMPLOYEES OR AGENTS: If any of CONSULTANT’s officers, employees, agents, contractors, subcontractors or subconsultants is determined by the CITY Representatives 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 shall be promptly removed by CONSULTANT and shall not be re-assigned to perform any of the Work.

2.8COMPLIANCE WITH LAWS: CONSULTANT shall 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 shall include without limitation compliance with all applicable Cal/OSHA requirements.

2.9NON-DISCRIMINATION: In the performance of this Agreement, CONSULTANT shall not discriminate against any employee, subcontractor, subconsultant, or applicant for employment because of race, color, creed, religion, sex, marital status, sexual orientation, national origin, ancestry,

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age, physical or mental disability or medical condition.

2.10 INDEPENDENT CONTRACTOR STATUS: The Parties
acknowledge, understand, and agree that CONSULTANT and all persons retained or employed by CONSULTANT are, and shall at all times remain, wholly independent contractors and are not officials, officers, employees, departments or subdivisions of CITY. CONSULTANT shall 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 shall 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 shall procure and maintain the following insurance coverage, at its own expense:

A. Commercial General Liability Insurance: CONSULTANT shall 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 shall 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 shall 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 shall have minimum limits of no less than One Million Dollars ($1,000,000.00) 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 shall 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.

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D. Errors & Omissions Insurance: For the full term of this Agreement and for a period of three (3) years thereafter, CONSULTANT shall procure and maintain Errors and Omissions Liability Insurance appropriate to CONSULTANT’s profession. Such coverage shall have minimum limits of no less than One Million Dollars ($1,000,000.00) per claim.

3.2 ADDITIONAL INSURED REQUIREMENTS: The CGL Coverage and the Automobile Liability Insurance shall 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 shall 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 shall 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 Representatives are 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 shall 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 shall be in excess of CONSULTANT’s insurance and shall not contribute with it.

3.5 WAIVER OF SUBROGATION: All insurance coverage provided pursuant to this Agreement shall 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.

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 its shall 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 shall be signed by a person authorized by that insurer to bind coverage on its behalf, and shall be on forms provided by the CITY if requested. All certificates of insurance and endorsements shall 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 shall also provide CITY with certified copies of all required insurance policies and

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endorsements.

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 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.

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 to the extent arising out of or in connection with CONSULTANT’s negligent 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 or active 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 CITY from CONSULTANT as a result of CONSULTANT’s failure to pay CITY promptly any indemnification arising under this Article and 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 here in 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 Agreement. Such costs and expenses shall include reasonable attorneys’ fees incurred by counsel of CITY’s choice.

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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 terminate this Agreement at any time for convenience and without cause by giving CONSULTANT a minimum of five (5) calendar days prior written notice of CITY’s intent to terminate this Agreement. Upon such termination for convenience, CONSULTANT shall 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 shall 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, shall 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”) shall occur. For all Events of Default, the Party alleging an Event of Default shall give written notice to the defaulting Party (hereinafter referred to as a “Default Notice”) which shall 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 shall be cured, which shall not be less than the applicable cure period set forth under Sections 5.2.B and 5.2.C 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 shall constitute a breach of this Agreement if the defaulting Party fails to cure the

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Event of Default within the applicable cure period or any extended cure period allowed under this Agreement.

B. CONSULTANT shall 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 shall be under no obligation to grant additional time for the cure of an Event of Default under this Section 5.2.B.i. that exceeds seven (7) calendar days from the end of the initial 3-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 shall be under no obligation to grant additional time for the cure of an Event of Default under this Section 5.2.B.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 shall include, but shall 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 Services; (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 (vi) CITY’s discovery that a statement representation or warranty by CONSULTANT relating to this Agreement is false, misleading or erroneous in any material respect.

C. CITY shall cure any Event of Default asserted by CONSULTANT within forty-five (45) calendar days of CONSULTANT’s issuance of a Default

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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 1.4, above, shall 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 shall 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 shall 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 shall 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 shall 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 shall 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
iv. The CITY may exercise any other available and lawful right or remedy.

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CONSULTANT shall 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 shall 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 shall 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 shall 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 shall not operate to terminate any Article, Section or provision contained herein which provides that it shall survive the termination or normal expiration of this Agreement.

VI.

MISCELLANEOUS PROVISIONS

6.1 DOCUMENTS & DATA; LICENSING OF INTELLECTUAL PROPERTY: All Documents and Data shall 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, drawings, designs, renderings, specifications, 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 shall require all subcontractors and subconsultants working on behalf of CONSULTANT in the performance of this Agreement to agree in writing that CITY shall 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. Any modification made by the CITY to any of the CONSULTANT’S documents, or any use, partial use or reuse of the documents, for purposes other than identified in this Agreement, without written authorization or adaption by the CONSULTANT will be at the CITY’S sole risk and without liability to the CONSULTANT, and the CITY shall indemnify, defend and hold the CONSULTANT harmless from all claims, damages, losses and expenses, including but not limited to attorney’s fees, resulting therefrom.

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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 shall not be disclosed by CONSULTANT without prior written consent by CITY. CITY shall grant such consent if disclosure is legally required. Upon request, all CITY data shall be returned to CITY upon the termination or expiration of this Agreement. CONSULTANT shall 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 shall 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:

Such notices shall 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 shall fully cooperate with one another and shall take any additional acts or sign any additional documents as is reasonably necessary, appropriate, or convenient to achieve the purposes of this Agreement.

6.6 SUBCONTRACTING: CONSULTANT shall 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, shall 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 CONSULTANT:
[NAME AND ADDRESS]
CITY:

City of Cudahy
Community Development
Department
5220 Santa Ana Street
Cudahy, CA 90201
Attn: Cecilia MadrigalGonzalez, Senior Planner
Phone: 323-773-5143 ext. 252

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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 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 shall 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, shall 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. This Agreement is made in anticipation of conditions permitting continuous and orderly progress through completion of services. Times for performance shall be extended as necessary for delays or suspensions due to circumstances that the Consultant does not control. Any extension granted shall be approved only by an agreement signed by both parties. Consultant shall not have liability for any delays, expenses, losses, damages or be deemed in breach for liabilities which are caused by any factor outside of its reasonable control, including but not limited to natural disasters, epidemics, pandemics, quarantine restrictions, adverse weather, or acts of the CITY, third parties or government agencies.

6.10 GOVERNING LAW AND VENUE: This Agreement shall be interpreted and governed according to the laws of the State of California. In the event of litigation between the Parties, venue, without exception, shall 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, shall 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, either legal, administrative or otherwise, arising out of or in connection with this Agreement, the prevailing Party in such litigation shall 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 shall 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 shall not be construed in

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favor of, or against, either Party but shall 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 shall continue in full force and effect.

6.16 AMENDMENT; MODIFICATION: No amendment, modification or supplement of this Agreement shall 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 shall be void and invalid.

6.17 CAPTIONS: The captions of the various articles, sections and paragraphs are for convenience and ease of reference only, and do not define, limits, 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 shall control.

6.19 ENTIRE AGREEMENT: This Agreement including all attached exhibits is 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, or entered into between CITY and CONSULTANT prior to the execution of this Agreement. No statements, representations, or other agreements, whether oral or written, made by any Party which are not embodied herein shall be valid or binding. No amendment, modification or supplement to this Agreement shall be valid and binding unless in writing and duly executed by the Parties pursuant to Section 6.15, above.

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

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

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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, ICMA-CM
City Manager
Date:

POLYTECHNIQUE
ENVIRIONEMENTAL INC.

By:
[NAME]
[TITLE]
Date:

ATTEST:

By:

Richard Iglesias, CMC
City Clerk
Date:

APPROVED AS TO FORM:

By:

Stephanie A. Arechiga, Esq.

City Attorney
Date:

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Attachment B

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REQUEST FOR PROPOSALS (RFP)

TO PREPARE PHASE II ENVIRONMENTAL SITE ASSESSMENT (ESA) OF CITY PROPERTIES

IN THE CITY OF CUDAHY, CALIFORNIA
July 24, 2023

DELIVERY ADDRESS
City of Cudahy
5220 Santa Ana St,
Cudahy, CA 90201
Attn: Aaron Hernandez-Torres, PE
Public Works Director/City Engineer

REQUIRED NUMBER OF PROPOSALS
Three (3) hard copies and one (1) electronic
copy (pdf)

CONTACT INFORMATION FOR INQUIRIES
contact via e-mail only, no telephone calls
Aaron Hernandez-Torres, PE
Public Works Director/City Engineer
[email protected]

PRE-PROPOSAL MEETING
None

PROPOSAL DUE DATE
2:00 PM, Wednesday, August 9, 2023
Attachment C Page 130 of 383
RFP to Prepare Phase II Environmental Site Assessment (ESA) of City Properties City of Cudahy, California Table of Contents
Table of Contents

1. Introduction 1

2. Project Description/Scope of Services 1

3. RFP Schedule 1

4. Key Personnel 2

5. City’s Standard Professional Services Agreement 2

6. Insurance Coverage Limits and Requirements 2

7. Consultant Selection Methodology 2

8. Contract Award 3

9. Required Format for Technical Proposal Submittal 3

10. Fee Estimate Proposal Submittal 4

11. Questions Regarding This RFP 4

12. Proposal Submittal Protocol 5

13. Pre-Contractual Expenses In Responding To The RFP Preparation 5 Attachments:

Attachment A – Affidavit of Non-Collusion
Attachment B – Claims History
Attachment C – Sample Professional Services Agreement
Attachment D – Link to Phase 1 ESA Report Prepared by Polytechnique Environmental

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RFP to Prepare Phase II Environmental Site Assessment (ESA) of City Properties City of Cudahy, California Cover Page

REQUEST FOR PROPOSALS (RFP)

TO PREPARE PHASE II ENVIRONMENTAL

SITE ASSESSMENT (ESA) OF CITY PROPERTIES

IN THE CITY OF CUDAHY, CALIFORNIA
JULY 24, 2023
To interested and qualified Consultants:

The City of Cudahy is soliciting Proposals from qualified firms TO PREPARE PHASE II

ENVIRONMENTAL SITE ASSESSMENT (ESA) OF CITY PROPERTIES IN THE CITY OF CUDAHY, CALIFORNIA.

Requirements for this RFP are enclosed.

In order to be considered in the selection process, interested parties shall submit three (3) hard copies and one (1) electronic copy (pdf) of their Proposals no later than 2:00 pm on Wednesday, August 9, 2023, to:

Aaron Hernandez-Torres, PE
Public Works Director/City Engineer
5220 Santa Ana St,
Cudahy, CA 90201
If you have any questions, please contact via email (no telephone calls):

Aaron Hernandez-Torres, PE
Public Works Director/City Engineer
[email protected]
Late proposals will not be accepted.

Sincerely,
Aaron Hernandez-Torres, PE
Public Works Director/City Engineer
City of Cudahy

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RFP to Prepare Phase II Environmental Site Assessment (ESA) of City Properties City of Cudahy, California RFP, Page 1

REQUEST FOR PROPOSALS (RFP)

TO PREPARE PHASE II ENVIRONMENTAL SITE ASSESSMENT (ESA) OF CITY PROPERTIES

IN THE CITY OF CUDAHY, CALIFORNIA
July 24, 2023

1. INTRODUCTION
The City of Cudahy is soliciting Proposals from qualified firms TO PREPARE PHASE II ENVIRONMENTAL SITE ASSESSMENT (ESA) OF CITY PROPERTIES.

2. PROJECT DESCRIPTION/SCOPE OF SERVICES
The City of Cudahy, through its consultant, Polytechnique Environmental, Inc., prepared Phase I Environmental Site Assessment for Various City Owned Properties. The City desires to hire a consultant to prepare a Phase II Environmental Site Assessment (ESA) of these properties.

Each Recognized Environmental Condition (REC) identified in the Phase 1 ESA report prepared by Polytechnique Environmental, Inc. (2023) must be investigated, as part of the scope.

It is the consultant’s responsibility to identify all necessary tasks and components, and provide all necessary services as required and in compliance with this RFP and all applicable standards and requirements, and provide the City with a complete Phase II Environmental Site Assessment (ESA) documents.

3. RFP SCHEDULE
Below is the RFP schedule. Below tentative schedule is subject to change by the City:

Request for Proposals Posted and Issued July 24, 2023
Deadline for Receipt of Questions August 2, 2023, 4:00 pm Addendum (if necessary) to Respond to
Questions
August 4, 2023
Deadline for Receipt of Proposals (RFP Due
Date)
August 9, 2023, 2:00 PM
Contract Awarded by City Council (tentative) August/September 2023

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RFP to Prepare Phase II Environmental Site Assessment (ESA) of City Properties City of Cudahy, California RFP, Page 2

4. KEY PERSONNEL
It is imperative that the key personnel providing the consulting services have the background, experience, and qualifications to complete the project. The City reserves the right to approve all key personnel individually for work on this contract. All key staff shall be named in the contract. After the contract is signed, the proposer may not replace key staff unless their employment is terminated or agreed upon by the City. The City must approve replacement staff before a substitute person is assigned to the Project.

The City reserves the right to request that the proposer replace a staff person assigned to the contract should the City consider such a replacement to be for the good of the project.

5. CITY’S STANDARD PROFESSIONAL SERVICES AGREEMENT
The RFP includes a sample of City’s Professional Services Agreement as Attachment C.

Proposers shall review the Agreement and provide a statement that they will comply with all aspects of the Agreement, or provide any comments that they would like the City to consider. The City Attorney will review any comment received and make a final decision if all or part or any of such comments may be considered.

6. INSURANCE COVERAGE LIMITS AND REQUIREMENTS
Consultant shall provide Insurance Coverage Limits and Requirements as indicated in this RFP as provided in Attachment C.

7. CONSULTANT SELECTION METHODOLOGY
Upon receipt of Proposals, City’s consultant selection committee will rank the responding consultants. The City, at its sole discretion may invite top 3 ranked qualified consultants to for interviews, or negotiate final scope and fee with the most qualified consultant.

Evaluation Criteria Max
Points
Compliance with the RFP Requirements 15
Project Understanding and Approach 25
Experience 25
Level of effort, schedule and cost effectiveness to provide efficient services. 35
Total Points 100

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RFP to Prepare Phase II Environmental Site Assessment (ESA) of City Properties City of Cudahy, California RFP, Page 3

8. CONTRACT AWARD
Any contract resulting from this RFP will be awarded to a firm whose Proposal meet the technical requirements of the RFP and is evaluated as the highest ranked proposal.

Proposals will be ranked in accordance with the evaluation criteria stated in this RFP.

Negotiations regarding a fair and reasonable price will occur subsequent to consultant selection. Should the City be unable to obtain a fair and reasonable price through negotiations with the highest qualified proposer, the City shall enter into negotiations with the next highest qualified proposer and may award that contract if the parties are able to arrive at a fair and reasonable price. If that is unattainable, the City shall enter into negotiations with the next highest qualified proposer in sequence until an agreement is reached.

9. REQUIRED FORMAT FOR TECHNICAL PROPOSAL SUBMITTAL
Please submit your Technical Proposal in the format specified below:

1. Cover Letter:

Emphasize strong points of the project team and the firm’s experience. Include the name, address, telephone number, title, and signature of the firm’s contact person for this proposal. The cover letter shall state that the submittal is valid for 60 days.

2. Project Specific Approach, Scope of Work:

Provide your understanding of the project, and describe your approach to accomplishing the City’s goal in the most efficient and cost effective manner.

3. Proposed Project Specific Staff:

This section should include a project organization chart showing proposed staff members and any subconsultants, and resumes of key project persons. It is imperative that the key personnel providing the required services have the background, experience, and qualifications in similar projects.

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RFP to Prepare Phase II Environmental Site Assessment (ESA) of City Properties City of Cudahy, California RFP, Page 4

4. Similar Projects and References:

Provide a list of similar projects where your firm and proposed project staff have provided similar services. Also provide minimum 3 Public Agency references that City can contact for similar projects and services.

5. City Standard Contract:

The RFP includes City’s Standard Contract as Attachment. Proposers shall review the Agreement and provide any comments that they would like the City to consider.

6. Required Attachments:

Below attachments shall be signed and submitted with the proposal:
• Attachment A - Affidavit of Non-Collusion
• Attachment B - Claims History
The Fee Proposal shall be submitted in a separate envelope as indicated in the following section.

10.FEE ESTIMATE PROPOSAL SUBMITTAL
The Fee Estimate Proposal shall be submitted in a separate sealed envelope. The fee shall be broken in major project components.

Consultant shall also provide its Schedule of Standard Hourly Fee Rates.

11.QUESTIONS REGARDING THIS RFP
All questions regarding this RFP must be submitted via email:

Aaron Hernandez-Torres, PE
Public Works Director/City Engineer
[email protected]
Questions regarding this proposal shall be submitted via email by the date identified on the RFP Schedule. In response to all questions received by this date, City will issue an Addendum by the date identified on the RFP Schedule. The addendum will be emailed to all RFP recipients on record.

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RFP to Prepare Phase II Environmental Site Assessment (ESA) of City Properties City of Cudahy, California RFP, Page 5

12.PROPOSAL SUBMITTAL PROTOCOL
In order to be considered in the selection process, interested parties shall submit three (3) copies and one (1) electronic copy (pdf) of their Proposals no later than 2:00 PM, August 9, 2023 to:

Aaron Hernandez-Torres, PE
Public Works Director/City Engineer
5220 Santa Ana Street
Cudahy, CA 90201
Late proposals will not be accepted.

13.PRE-CONTRACTUAL EXPENSES IN RESPONDING TO THE RFP PREPARATION The City shall not be liable for any pre-contractual expenses incurred by any proposer or by any selected consultant. Each proposer shall protect, defend, indemnify, and hold harmless the City from any and all liability, claims, or expenses whosoever incurred by, or on behalf of, the entity participating in the preparation of its response to this RFP. Precontractual expenses are defined as expenses incurred by proposers and the selected consultant, if any, in:
▪ Preparing and submitting information in response to this RFP ▪ Negotiations with the City on any matter related to this procurement ▪ Costs associated with interviews, meetings, travel or presentations ▪ All other expenses incurred by a proposer/consultant prior to the date of award and a formal notice to proceed.

The City reserves the right to amend, withdraw and cancel this RFP. The City reserves the right to reject all responses to this request at any time prior to contract execution, or only award a partial contract for a limited scope of work. The City reserves the right to request or obtain additional information about any and all proposals.

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RFP to Prepare Phase II Environmental Site Assessment (ESA) of City Properties City of Cudahy, California RFP, Page 6

END OF RFP

ATTACHMENTS TO FOLLOW

Attachment A Affidavit of Non-Collusion
Attachment B Claims History
Attachment C Sample Professional Services Agreement
Attachment D Link to Phase 1 ESA Report Prepared by
Polytechnique Environmental

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Attachment A, Page 1

ATTACHMENT A

AFFIDAVIT OF NON-COLLUSION
I state that I am _____________________________________ (title) of __________________________________ (name of firm) and that I am authorized to make this affidavit on behalf of my firm, and its owners, directors, and officers. I am the person responsible in my firm for the price(s) and the amount of this Offer.

I state that:
(1) The price(s) and amount of this Offer have been arrived at independently and without consultation, communication or agreement with any other Proposer or potential Proposer. (2) That neither the price(s) nor the amount of this Offer, and neither the approximate price(s) nor approximate amount of this Offer, have been disclosed to any other firm or person who is a Proposer or potential Proposer, and they will not be disclosed before Solicitation opening. (3) No attempt has been made or will be made to induce any firm or person to refrain from bidding on this contract, or to submit an Offer higher than this Offer, or to submit any intentionally high or noncompetitive Offer or other form of complementary Offer. (4) The Offer of my firm is made in good faith and not pursuant to any agreement or discussion with, or inducement from, any firm or person to submit a complementary or other noncompetitive Offer. (5) ________________________________________ (name of firm), its affiliates, subsidiaries, officers, directors and employees are not currently under investigation by any governmental agency and have not in the last four years been convicted of or found liable for any act prohibited by State or Federal law in any jurisdiction, involving conspiracy or collusion with respect to bidding on any public contract, except as described in the attached appendix.

I state that________________________________________ (name of firm) understands and acknowledges that the above representations are material and important, and will be relied on by the City of Cudahy in awarding the contract(s) for which this Offer is submitted. I understand and my firm understands that any misstatement in this affidavit is and shall be treated as fraudulent concealment from the City of Cudahy of the true facts relating to the submission of Offers for this contract.
_________________________________________________
(Authorized Signature)
_________________________________________________
(Name of Company/Position)
Sworn to and subscribed before me this _______ day of __________________, 20___. _________________________________________________
Notary Public for California
My Commission Expires: __________________________

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Attachment B, Page 1

ATTACHMENT B

CLAIMS HISTORY
Each Consultant shall submit a summary of whether or not any of the following events have occurred within the past (10) years and, if so, a brief description of the circumstances involved (including, without limitation, the names of parties involved, current status and final disposition of the matter of dispute):

Failure to disclose any circumstances requested in the following paragraphs is grounds for disqualification.
▪ Failure by Consultant or any sub-consultant to enter into a contract to which it has received an award by a public entity.
▪ Forfeiture of a bid or proposal bond by proposer or any sub-consultant. ▪ Termination for default under a contract awarded by a public entity to Consultant or any sub-consultant.
▪ Debarment of Consultant or any sub-consultant by any municipal, county, state, federal, or local agency (note: debarment is grounds for automatic disqualification). ▪ The filing of a lawsuit or arbitration in which the Consultant or a sub-consultant was a defendant or cross-defendant at any time within the past ten (10) years that involved the performance of project, program, or engineering services and that involved an amount in controversy sought to be recovered from Consultant or the sub-consultant of more than $100,000.00.
▪ Conviction of Consultant, a sub-consultant, or any of their principals or officers for violation of a state or federal antitrust law involving bid rigging, collusion, or restriction on competition between bidders, or conviction of violating any other federal or state law relating to bidding or contract performance (note: such conviction is grounds for automatic disqualification).
▪ Any publications involving firm or principals alleging or claiming corruption (such claims are grounds for automatic disqualification).

Any suspension, revocation, or other disciplinary proceeding relating to a contracting or professional license issued to proposer or a sub-consultant.

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Attachment C, Page 1

ATTACHMENT C
Professional Services Contract

PROFESSIONAL SERVICES AGREEMENT
([Replace w/ Name of Consultant - Replace w/ Brief Description of Engagement] ) THIS PROFESSIONAL SERVICES AGREEMENT (“Agreement”) is made and entered into this ___________day of _________________ 20______ (hereinafter, the “Effective Date”), by and between the CITY OF CUDAHY, a municipal corporation (“CITY”) and [____REPLACE WITH NAME OF CONSULTANT____], a [___REPLACE WITH TYPE OF ENTITY, E.G., CORPORATION? PARTNERSHIP? SOLE PROPRIETORSHIP? ETC.____] (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.

WHEREAS, CITY wishes to engage CONSULTANT to provide the following specialized services:__________________________; and
WHEREAS, CITY’s in-house personnel is presently unable to perform the specialized services and tasks contemplated under this Agreement; and
WHEREAS, CONSULTANT possesses the specialized training, skill, expertise and experience required to perform the services contemplated under this Agreement; and WHEREAS, CONSULTANT agrees to perform the various services and tasks set forth under this Agreement subject to the terms and conditions set forth herein; and 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 SCOPE OF SERVICES: Subject to the terms and conditions set forth in this Agreement and all exhibits attached and incorporated hereto, CONSULTANT agrees to perform the services and tasks set forth in Exhibit “A” (hereinafter referred to as the “Scope of Services”). CONSULTANT further agrees to furnish to CITY all labor, materials, tools, supplies, equipment, services, tasks and incidental and customary work necessary to competently perform and timely complete the services and tasks set forth in the Scope of Services. For the purposes of this Agreement the aforementioned services and tasks set forth in the Scope of Services shall hereinafter be referred to generally by the capitalized term “Work.”

1.2 TERM: This Agreement shall have a term of [___REPLACE TEXT WITH TERM PERIOD: X# of DAYS? MONTHS? YEARS?] commencing from [_REPLACE TEXT WITH START DATE OF

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Attachment C, Page 2
TERM: CAN BE EITHER the “EFFECTIVE DATE”? SOME OTHER DATE?]. [OPTIONAL LANGUAGE: Upon the conclusion of the Term, this Agreement shall renew automatically for a maximum of [_MAXIMUM NUMBER OF EXTENSION TERMS AND MAXIMUM DURATION OF EACH SUCH EXTENSION TERM. EDITOR’S NOTE: IT IS RECOMMENDED THAT ANY

INDIVIDUAL EXTENSION TERM NOT EXCEED ONE YEAR IN DURATION AND THAT THE

TOTAL NUMBER OF EXTENSION TERMS NOT EXCEED A MAXIMUM OF TWO YEARS BEYOND THE END OF THE INITIAL TERM] …….., unless CITY issues written notice of its intent not to authorize an additional extension term(s). 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.

1.3 COMPENSATION:

A. CONSULTANT shall perform the various services and tasks set forth in the Scope of Services in accordance with the compensation schedule which is [_____THIS LANGUAGE MAY VARY DEPENDING ON THE LOCATION OF ANY APPLICABLE COMPENSATION SCHEDULE –

SOME SCHEDULES ARE EMBEDDED IN THE SCOPE OF SERVICES WHILE OTHERS

CAN BE FOUND IN A SEPARATE STAND-ALONE SCHEDULE WHICH SHOULD BE ATTACHED AS AN EXHIBIT TO THE AGREEMENT______] (hereinafter, the “Approved Rate Schedule”).

B. Section 1.3(A) notwithstanding, CONSULTANT’s total compensation during the Term of this Agreement or any extension term shall not exceed the budgeted aggregate sum of [___REPLACE WITH NOT-TO-EXCEED SUM____] (hereinafter, the “Not-to-Exceed Sum”), unless such added expenditure is first approved by the CITY acting in consultation with the Superintendent and the Director of Fiscal Services. In the event CONSULTANT’s charges are projected to exceed the Not-to-Exceed Sum prior to the expiration of the Term or any single extension term, CITY may suspend CONSULTANT’s performance pending CITY approval of any anticipated expenditures in excess of the Not-to-Exceed Sum or any other CITY-approved amendment to the compensation terms of this Agreement.

1.4 PAYMENT OF COMPENSATION: Reserved; No text.

1.5 ACCOUNTING RECORDS: CONSULTANT shall 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 shall have the right to access and examine such records, without charge, during normal business hours. CITY shall further have the right to audit such records, to make transcripts therefrom and to inspect all program data, documents, proceedings, and activities.

1.6 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 shall 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 shall 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

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Attachment C, Page 3

2.1 CITY’S REPRESENTATIVES: The CITY hereby designates the Superintendent and [____REPLACE WITH TITLE OF CITY REPRESENTATIVE WHO WILL BE ENGAGED IN THE DAY-TO-DAY ADMINISTRATION OF THE CONTRACT_______] (hereinafter, the “CITY Representatives”) to act as its representatives for the performance of this Agreement. The Superintendent shall be the chief CITY Representative. The CITY Representatives or their designee shall act on behalf of the CITY for all purposes under this Agreement. CONSULTANT shall not accept directions or orders from any person other than the CITY Representatives or their designee.

2.2 CONSULTANT REPRESENTATIVE: CONSULTANT hereby designates [__INSERT NAME AND

TITLE OF PERSON WHO IS CONSULTANT REPRESENTATIVE FOR PURPOSES OF CONTRACT ADMINISTRATION________] to act as its representative for the performance of this Agreement (hereinafter, “CONSULTANT Representative”). CONSULTANT Representative shall have full authority to represent and act on behalf of the CONSULTANT for all purposes under this Agreement. CONSULTANT Representative or his designee shall supervise and direct the performance of the Work, using his best skill and attention, and shall 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 shall 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 shall be available to CITY staff and the CITY Representatives at all reasonable times. All work prepared by CONSULTANT shall be subject to inspection and approval by CITY Representatives or their designees.

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

A. CONSULTANT shall perform all Work skillfully, competently and to the highest standards of CONSULTANT’s profession;
B. CONSULTANT shall perform all Work in a manner reasonably satisfactory to the CITY; C. CONSULTANT shall 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.); D. CONSULTANT understands the nature and scope of the Work to be performed under this Agreement as well as any and all schedules of performance; E. 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
F. All of CONSULTANT’s employees and agents (including but not limited 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 shall be maintained throughout the term of this Agreement and made available to CITY for copying and inspection.

The Parties acknowledge and agree that CONSULTANT shall perform, at CONSULTANT’s own cost and expense and without any reimbursement from CITY, any services necessary

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Attachment C, Page 4
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 shall be commenced immediately upon their discovery by either Party and shall be completed within seven (7) calendars days from the date of discovery or such other extended period of time authorized by the CITY Representatives in writing and in their sole and absolute discretion. The Parties acknowledge and agree that CITY’s acceptance of any work performed by CONSULTANT or on CONSULTANT’s behalf shall 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 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 shall 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 shall be ineffective, null and void and shall constitute a material breach of this Agreement.

2.6 CONTROL AND PAYMENT OF SUBORDINATES; INDEPENDENT CONTRACTOR: The Work shall 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 shall at all times be under CONSULTANT’s exclusive direction and control. CONSULTANT shall pay all wages, salaries and other amounts due such personnel and shall assume responsibility for all benefits, payroll taxes, Social Security and Medicare payments and the like. CONSULTANT shall 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.

2.7 REMOVAL OF EMPLOYEES OR AGENTS: If any of CONSULTANT’s officers, employees, agents, contractors, subcontractors or subconsultants is determined by the CITY Representatives 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 shall be promptly removed by CONSULTANT and shall not be re-assigned to perform any of the Work.

2.8 COMPLIANCE WITH LAWS: CONSULTANT shall 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 shall include without limitation compliance with all applicable Cal/OSHA requirements.

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Attachment C, Page 5

2.9 NON-DISCRIMINATION: In the performance of this Agreement, CONSULTANT shall not discriminate against any employee, subcontractor, subconsultant, or applicant for employment because of race, color, creed, religion, sex, marital status, sexual orientation, national origin, ancestry, age, physical or mental disability or medical condition.

2.10 INDEPENDENT CONTRACTOR STATUS: The Parties acknowledge, understand and agree that CONSULTANT and all persons retained or employed by CONSULTANT are, and shall at all times remain, wholly independent contractors and are not officials, officers, employees, departments or subdivisions of CITY. CONSULTANT shall 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 shall 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 polices of insurance that meet the requirements and specifications set forth under this Article. CONSULTANT shall procure and maintain the following insurance coverage, at its own expense:

A. Commercial General Liability Insurance: CONSULTANT shall 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 shall 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 shall 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 shall have minimum limits of no less than One Million Dollars ($1,000,000.00) 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 shall 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 shall procure and maintain Errors and Omissions Liability Insurance appropriate to CONSULTANT’s profession. Such coverage shall have minimum limits of no less than One Million Dollars ($1,000,000.00) per occurrence and shall be endorsed to include contractual liability.

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

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Attachment C, Page 6

3.3 REQUIRED CARRIER RATING: All varieties of insurance required under this Agreement shall 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 shall 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 Representatives are authorized to authorize lower ratings than those set forth in this Section.

3.4 PRIMACY OF CONSULTANT’S INSURANCE: All polices of insurance provided by CONSULTANT shall 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 shall be in excess of CONSULTANT’s insurance and shall not contribute with it.

3.5 WAIVER OF SUBROGATION: All insurance coverage provided pursuant to this Agreement shall 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.

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 its shall 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 shall be signed by a person authorized by that insurer to bind coverage on its behalf, and shall be on forms provided by the CITY if requested. All certificates of insurance and endorsements shall 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 shall also provide CITY with certified copies of all required insurance policies and endorsements.

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 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.

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

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Attachment C, Page 7
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 CONSULTANT under this Agreement any amount due CITY from CONSULTANT as a result of CONSULTANT’s failure to pay CITY promptly any indemnification arising under this Article and 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 here in 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 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 terminate this Agreement at any time for convenience and without cause by giving CONSULTANT a minimum of five (5) calendar days prior written notice of CITY’s intent to terminate this Agreement. Upon such termination for convenience, CONSULTANT shall 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 7.1 below, and other information of any kind prepared by CONSULTANT in connection with the performance of the Work.

CONSULTANT shall 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, shall 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:

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Attachment C, Page 8
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”) shall occur. For all Events of Default, the Party alleging an Event of Default shall give written notice to the defaulting Party (hereinafter referred to as a “Default Notice”) which shall 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 shall be cured, which shall not be less than the applicable cure period set forth under Sections 5.2.B 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 shall constitute a breach of this 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 shall cure the following Events of Defaults within the following time periods:
i. Within three (3) 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 3-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 3-day cure period. The foregoing notwithstanding, CITY shall be under no obligation to grant additional time for the cure of an Event of Default under this Section 5.2 B.i. that exceeds seven (7) calendar days from the end of the initial 3- 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 shall 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 shall include, but shall 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 Services; (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.

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Attachment C, Page 9
C. CITY shall cure any Event of Default asserted by CONSULTANT within forty-five (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 1.4, above, shall 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 shall 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 shall 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 shall 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 shall 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 shall 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
iv. The CITY may exercise any other available and lawful right or remedy.

CONSULTANT shall 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.

Page 149 of 383 ends

Attachment C, Page 10
G. In the event CITY is in breach of this Agreement, CONSULTANT’s sole remedy shall 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 shall 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 shall 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 shall not operate to terminate any Article, Section or provision contained herein which provides that it shall survive the termination or normal expiration of this Agreement.

VI.

MISCELLANEOUS PROVISIONS

6.1 DOCUMENTS & DATA; LICENSING OF INTELLECTUAL PROPERTY: All Documents and Data shall 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, drawings, designs, renderings, specifications, 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 shall require all subcontractors and subconslutants working on behalf of CONSULTANT in the performance of this Agreement to agree in writing that CITY shall 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 shall not be disclosed by CONSULTANT without prior written consent by CITY. CITY shall grant such consent if disclosure is legally required. Upon request, all CITY data shall be returned to CITY upon the termination or expiration of this Agreement. CONSULTANT shall 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 shall 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:

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Attachment C, Page 11
[_REPLACE WITH Business Name of
Consultant_]
[_REPLACE WITH Business Address_]
Attn: [_REPLACE WITH Name/Title of
Consultant’s chief contact ___]
Phone: [_REPLACE WITH Phone Number_]
Fax: [_REPLACE WITH Fax Number__]
Email: [_If available, REPLACE WITH e-mail
or simply delete_]
City of Cudahy
[Insert Name of Department/Division]
5220 Santa Ana Street
Cudahy, CA 90201
Attn: [___Title of CITY Contact___]
Phone: [___REPLACE WITH Dept
Phone__]
Fax: [___REPLACE WITH Dept Fax___]
Such notices shall 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 shall fully cooperate with one another, and shall take any additional acts or sign any additional documents as is reasonably necessary, appropriate or convenient to achieve the purposes of this Agreement.

6.6 SUBCONTRACTING: CONSULTANT shall 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, shall 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 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 shall 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, shall 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 shall be interpreted and governed according to the laws of the State of California. In the event of litigation between the Parties, venue, without exception, shall 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, shall 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, either legal, administrative or otherwise, arising out of or in connection with this Agreement, the prevailing Party in such litigation shall be entitled to have and recover from the losing Party reasonable attorneys’ fees and all other costs of such action.

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Attachment C, Page 12

6.12 SUCCESSORS AND ASSIGNS: This Agreement shall 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 shall not be construed in favor of, or against, either Party but shall 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 shall continue in full force and effect.

6.16 AMENDMENT; MODIFICATION: No amendment, modification or supplement of this Agreement shall 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 shall be void and invalid.

6.17 CAPTIONS: The captions of the various articles, sections and paragraphs are for convenience and ease of reference only, and do not define, limits, 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 shall control.

6.19 ENTIRE AGREEMENT: This Agreement including all attached exhibits is 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, or entered into between CITY and CONSULTANT prior to the execution of this Agreement. No statements, representations or other agreements, whether oral or written, made by any Party which are not embodied herein shall be valid or binding. No amendment, modification or supplement to this Agreement shall be valid and binding unless in writing and duly executed by the Parties pursuant to Section 6.15, above.

6.20 COUNTERPARTS: .This Agreement shall be executed in three (3) original counterparts each of which shall be of equal force and effect. No handwritten or typewritten amendment, modification or supplement to any one counterparts shall be valid or binding unless made to all three counterparts in conformity with Section 6.16, above. One fully executed original counterpart shall be delivered to CONSULTANT and the remaining two original counterparts shall be retained by CITY.

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
[REPLACE WITH BUSINESS NAME OF
CONSULTANT, E.G., ACME CORP., A
CALIFORNIA CORPORATION ETC.]:

By:______________________________

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Attachment C, Page 13
Date:_____________________________

Name:____________________________
Title:_____________________________
Date:_____________________________
APPROVED AS TO FORM:

By:______________________________

Date:_____________________________

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Attachment D

ATTACHMENT D
Link to Phase 1 ESA Report Prepared by Polytechnique Environmental Phase 1 ESA Report Prepared by Polytechnique Environmental can be downloaded through the following link:
https://www.dropbox.com/sh/6vlplnxamotccsw/AABSWjAHrrnzfuOXU4jJeldva?dl=0

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STAFF REPORT
Date: October 17, 2023
To: Honorable Mayor / Chair and City Council / Agency Members From: Alfonso Noyola City Manager/Executive Director
By: Juan Arauz, Community Development Director
Joshua Calhoun, Finance Director
Subject: Adoption of a Proposed Resolution No. 23-46 Augmenting the City of Cudahy Fiscal Year (FY) 2023-2024 City Budget

RECOMMENDATION
The City Council is requested to:

1. Adopt proposed Resolution No. 23-46 augmenting the City of Cudahy Fiscal Year (FY) 2023- 2024 City Budget

BACKGROUND
On June 6, 2023, the City Council passed Resolution 23-21 adopting the FY 2023-2024 City Budget.

ANALYSIS
The Community Development Department is requesting the assistance of an Associate Planner position to handle the increase and backlog of workload within the Planning Division.

Additionally, the Associate Planner would assist the Housing Division with the increase in services and activities relating to the implementation of the Rent Stabilization Ordinance. The position would be partially funded by the Permanent Local Housing Allocation (PLHA) Program funds for the housing related duties to be performed. The remainder of the costs would be paid by General Fund funding sources.

Revenues in the General Fund are building permits projected to increase by at least $105,000 due to increased amount of permit activity, efficient processing and permit cost increase from CPI.

Item Number
14D

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Between increase in revenues and expenditures there would be no negative deficit impact to the General Fund.

CONCLUSION
Based on the higher than expected projected revenues for the City and additional expenditures there would be no negative deficit impact to the General Fund.

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

1. Develop materials to educate the community about the City’s budget, finances, spending investments.

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

FINANCIAL IMPACT
Total Revenue appropriation requests for all funds total $105,000. Total expenditure appropriation requests for all funds total $105,000.

The proposed resolution would increase certain revenues by $605,000 and

ATTACHMENTS
A. Attachment A – Resolution No. 23-46 – Budget Augmentation B. Attachment B – Budget Amendment Detail

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1 RESOLUTION NO. 23-46

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

CUDAHY, CALIFORNIA AUGMENTING ITS OPERATING
AND CAPITAL BUDGET FOR THE 2023-2024 FISCAL
YEAR
WHEREAS, the budget for fiscal year 2023-2024 of the City of Cudahy has been adopted by this Council in its original form and said budget will need to be augmented at times to fulfill the goals of the City; and
WHEREAS, the City departments my not exceed their appropriations by character of expenditure with the charact of expenditure being defined as personnel services, operating costs, and capital expenditures and transfers without the consent of the City Manager; and
WHEREAS, the City Manager and Finance Director may transfer appropriations, between accounts, departments, programs and funds, as long as those appropriations do not exceed the grant total budget approved by Council; and .

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

SECTION 1. The City Council of the City of Cudahy augments its Fiscal Year 2023-2024 budget as defined in Attachment B to the Staff Report accompanying this resolution per the budget augmentation recommendations.

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Cudahy at the regular meeting of this 17th day of October 2023. ______________________________
Daisy Lomelí
Mayor
ATTEST:
____________________________
Richard Iglesias
City Clerk
Attachment A Page 157 of 383
Resolution No. 23-46
2 CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS:

CITY OF CUDAHY )
I, Richard Iglesias, City Clerk of the City of Cudahy, hereby certify that the foregoing Resolution No. 23-46 was passed and adopted by the City Council of the City of Cudahy, signed by the Mayor and attested by the City Clerk at a regular meeting of said Council held on the 17th day of October 2023 and that said Resolution was adopted by the following vote, to-wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

Richard Iglesias
City Clerk

Page 158 of 383 ends

City of Cudahy
Budget Augmentation
Fiscal Year 2023-24
Council
Appropriation
Account Revenue/ Request
Number Expenditure Fund Department Description FY 2023-24 Comment 100-0000-4180-000 Revenue General Fund Non Departmental Building Permits 105,000 Increase in expected building permits due to additional projects and enhanced processing times due to additional departmental staffing 100-4215-51xx-000 Expenditure General Fund Planning Salaries and related benefits 105,000 Personnel costs for Associate Planner position not covered by PLHA grant funding to conduct housing and related duties

ATTACHMENT B
Attachment B Page 159 of 383
Blank Page

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STAFF REPORT
Date: October 17, 2023
To: Honorable Mayor/Chair and City Council/Agency Members From: Alfonso Noyola, City Manager/Executive Director
By: Joshua Calhoun, Finance Director
Subject: Consideration to adopt a Resolution to Authorize the City Manager to Execute the Purchase of a City Vehicle

RECOMMENDATION
The City Council is requested to adopt Resolution No. 23-47 authorizing the City Manager to purchase a Public Works vehicle, for a not to exceed amount of $70,000.

BACKGROUND AND ANALYSIS
The Public Works Department identified the acquisition of vehicle using the $70,000 that was allocated for the purchase of a vehicle in the FY 23-24 city budget to purchase a 2024 Chevrolet Silverado 2500HD. The increase in maintenance staff has caused the need for an additional vehicle in order to effectively perform duties and provide proper transportation for park maintenance staff.

3.16.140 Alternative Procurement Procedure
On October 4, 2022, the City Council adopted by second reading Ordinance No. 726, amending chapter 3 of the Cudahy Municipal Code as follows:

Chapter 3.16.140. Alternative Procurement Procedure.

Any procurement of supplies, materials, equipment or general services, is exempt from the requirements of CMG 3. 16. 120 and 3. 16. 130, if the city council finds, by resolution adopted by not less than four-fifths of its members, that such procurement may be more economically and efficiently effected through the use of an alternate transactional process or alternate procurement procedure. This exception may not be applied to public projects which are subject to mandatory competitive bidding under applicable state law or any mandated informal Item Number
14E

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bidding authorized under the Uniform Public Construction Cost Accounting Act." Per Chapter 3.16. 140, the City Council allows the purchase of equipment and general services, through 4/5 vote, if it is more economical and/or efficient.

In this case, the City requests the Council to adopt Resolution No. 23-__ to allow the purchase of this vehicle by bypassing the formal procurement system for the following reasons:
• Vehicle stock is still low and difficult to purchase an in-stock vehicle within the timeline dealerships request.
• If a purchase is made through a formal request for proposals or cooperative purchasing agreement, the vehicle would be manufactured. Lead team may exceed eight months.

The complete process may take as much as one year.
• The vehicle is a current high need priority and therefore is most efficient to purchase a vehicle from a dealership.

CONCLUSION
In order to address inadequate equipment in the Public Works Department, city staff recommends the City Council to adopt Resolution No. 23-XX and allowing the purchase of a public works vehicle.

STRATEGIC PLAN CORRELATION
Goal E (City Infrastructure and Service Delivery)
Objective:

1. Complete the Capital Improvement Plan, which anticipates the capital needs of Cudahy over a five-year period.

FINANCIAL IMPACT
If approved, the vehicle cost not to exceed $70,000. The purchase of this vehicle was appropriated in the FY 23-24 City Budget.

ATTACHMENTS
A. Camino Real Chevrolet 2024 Chevrolet Silverado 2500 HD Quote B. Resolution No. 23-47
C. Ordinance No. 726

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Camino Real Chevrolet
2401 S Atlantic Blvd
Monterey Park
CA, 91754
caminorealchevy.com
Deal #
182081
Hicidro Campa
Contact Sales: (323) 406 - 9104
[email protected]

CITY OF CUDAHY
[email protected]
5220 SANTA ANA ST, Cudahy, CA 90201
2024 Chevrolet Silverado 2500HD
Work Truck
VIN : 1GB0WLE71RF206772 | Stock # : RF206772
Mileage : 7 mi
Color : SUMMIT WHITE
Cash
0% APR
$0.00
Customer Cash
Rebates
Payment Detail
Selling Price $60,790.00
Accessories $0.00
Taxes (10.25%) $6,239.69
Fees $126.75
Rebates $1,000.00
Amount Financed $66,156.44
HC
$66,156.44
$1,000.00
© Tekion Corp 2023 Mon Sep 25 2023 | 10:42 AM
Customer Signature & Date
X
Hicidro Campa | Manager Signature & Date
X
Payments offered here are all subject to final credit approval from the lending institution. Vehicle Price does not include accessories and is before Taxes and/or applicable fees. Leases in some cases require additional cash for Security Deposit, and at Lease's End, Lessee is responsible for $0.25 per Mile over 12000 Miles per year and a Disposition Fee of $495.00. Wear and tear guidelines apply. All prices, specifications, and availability subject to change without notice.

Attachment A Page 163 of 383
1 RESOLUTION NO. 23-47

A RESOLUTION OF THE CITY OF CUDAHY CALIFORNIA,

APPROVING THE PURCHASE OF A PUBLIC WORKS CITY
VEHICLE IN ACCORDANCE TO SECTION 3.16.140 OF THE

CUDAHY MUNICIPAL CODE (ALTERNATE PROCUREMENT

PROCEDURE)
WHEREAS, pursuant to Government Code section 54201 through 54203, a city must adopt, by ordinance, policies, and procedures, including bidding regulations, governing purchases of supplies and equipment by the city; and.

WHEREAS, on June 22, 2015, the City of Cudahy City Council ("City Council") adopted Ordinance No. 649 establishing Chapter 3.16 (Purchase and Sale of Services, Supplies, and Equipment) of Title 3 (Revenue and Finance) of the Cudahy Municipal Code; and
WHEREAS, on October 4, 2022, the City of City Council adopted Ordinance No. 726, adding chapter 3.16.140, allowing the procurement of supplies, materials, equipment, or general services, to be exempted from the requirements of CMC 3.16.120 and 3.16.130, if the city council finds, by resolution adopted by not less than four-fifths (4/5) of its members, that such procurement may be most economically and efficiently effected through the use of an alternate transactional process or alternate procurement procedure.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Cudahy, California, as follows:

SECTION 1. The City Council hereby approves by fourth fifths vote the purchase of a Public Works vehicle, in accordance with Section 3.16.140 of the Cudahy Municipal Code (Alternate Procurement Procedure)
SECTION 2. This Resolution shall take effect immediately upon its adoption by the City Council and the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Cudahy at its regular meeting on this 21st day of March 2023.

Daisy Lomelí
Mayor
ATTEST:

Richard Iglesias
City Clerk
Attachment A Page 164 of 383
Resolution No. 23-47
2 CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS:

CITY OF CUDAHY )
I, Richard Iglesias, City Clerk of the City of Cudahy, hereby certify that the foregoing Resolution No. 23-47 was passed and adopted by the City Council of the City of Cudahy at a regular meeting held on the 17th day of October, 2023 and that said Resolution was adopted by the following vote, to-wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

Richard Iglesias
City Clerk

Page 165 of 383 ends

ORDINANCE NO. 726

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF CUDAHY ADDING SECTION 3.16.140 (ALTERNATE
PROCUREMENT PROCEDURE) OF CHAPTER 3.16
(PURCHASING SYSTEM) OF TITLE 3 (REVENUE AND

FINANCE) OF THE CUDAHY MUNICIPAL CODE
WHEREAS, pursuant to Government Code section 54201 through 54203, a city must adopt, by ordinance, policies, and procedures, including bidding regulations, governing purchases of supplies and equipment by the city; and WHEREAS, on June 22, 2015, the City of Cudahy City Council ("City Council") adopted Ordinance No. 649 establishing Chapter 3.16 (Purchase and Sale of Services, Supplies, and Equipment) of Title 3 (Revenue and Finance) of the Cudahy Municipal Code;and
WHEREAS, on August 14, 2017, the City Council adopted Ordinance No. 672, amending Chapter 3.16 (Purchasing System) to clarify the City's ability to make cooperative purchases of services and items; and
WHEREAS, the City Council wishes to further amend Chapter 3.16 (Purchasing System) to establish an alternate procurement procedure to expedite the purchases of specified supplies, material, equipment, or general services.

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

Section 1. The facts set forth in the recitals above are true and correct.

Section 2. Section 3.16.140 (Alternate Procurement Procedure) of Chapter 3.16 (Purchasing System) of Title 3 (Revenue and Finance) shall be added to the Cudahy Municipal Code and shall read as follows:
"3. 16. 140 Alternate Procurement Procedure.

Any procurement of supplies, materials, equipment or general services, is exempt from the requirements of CMG 3. 16. 120 and 3. 16. 130, if the city council finds, by resolution adopted by not Jess than four-fifths ( ½) of its members, that such procurement may be more economically and efficiently effected through the use of an alternate transactional process or alternate procurement procedure.

This exception may not be applied to public projects which are subject to mandatory competitive bidding under applicable state Jaw or any mandated informal bidding authorized under the Uniform Public Construction Cost Accounting Act."
Attachment C Page 166 of 383
Ordinance No. 726

Page 2 of 3 ends

Section 3. CEQA. This Ordinance is not subject to CEQA under the general rule set forth in Section 15601 (b)(3) of the CEQA Guidelines that CEQA only applies to projects which have the potential for causing a significant effect on the environment.

Section 4. Inconsistent Provisions. Any provision of the Cudahy Municipal Code, or appendices thereto, that conflicts with the provisions of this Ordinance, to the extent of such conflict and no further, is hereby repealed or modified to the extent necessary to affect the provisions of this Ordinance.

Section 5. Severability. If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this Ordinance, or any part thereof is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance or any part thereof. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause or phrase thereof, irrespective of the fact that any one or more section, subsection, subdivision, paragraph, sentence, clause or phrase would be subsequently declared invalid or unconstitutional.

Section 6. Construction. This Ordinance is intended to supplement, not to duplicate or contradict, applicable state and federal law and this Ordinance shall be construed in light of that intent. To the extent the provisions of the Cudahy Municipal Code, as amended by this Ordinance, are substantially the same as the provisions of that Code as it read prior to the adoption of this Ordinance, those amended provisions shall be construed as continuations of the earlier provisions and not as new enactments.

Section 7. Publication and Effective Date. The Mayor shall sign, and the City Clerk shall attest to the passage of this Ordinance. The City Clerk shall cause the same to be published once in the official newspaper within fifteen (15) days after its adoption.

This Ordinance shall become effective thirty (30) days after adoption.

PASSED, APPROVED and ADOPTED by the City Council of the City of Cudahy this 4th day of October 2022.

ElizabethAlantar
Mayor
ATTEST:

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Ordinance No. 726

Page 3 of 3 ends

STATE OF CALIFORNIA )

CERTIFICATION
COUNTY OF LOS ANGELES ) SS:

CITY OF CUDAHY )
I, Richard Iglesias, City Clerk of the City of Cudahy, hereby certify that the foregoing Ordinance No. 726 was introduced for a first reading on the 20th day of September 2022 and approved for a second reading and adopted by said Council at its regular meeting held on the 4
th day of October 2022 by the following vote, to-wit:

AYES:

NOES:

ABSTAIN:

ABSENT:

Lozoya, Gonzalez, Lomeli, and Alcantar
None
None
Guerrero
Ric ard Iglesias
City Clerk

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STAFF REPORT
Date: October 17, 2023
To: Honorable Mayor/Chair and City Council/Agency Members From: Alfonso Noyola, City Manager/Executive Director
By: Joshua Calhoun, Finance Director
Subject: Consideration to Approve a Purchase Order for Procurement of Cyber Defense System

RECOMMENDATION
The City Council is requested to approve a purchase order for the installation and subscription of cyber defense system with Darktrace Holdings Limited not-to-exceed amount of $26,386.13.

BACKGROUND

1. On July 28, 2023, the City identified Darktrace Holdings Limited to be the provider of cyber defense system for the City’s information technology.

ANALYSIS
In an effort to maximize cyber security within the City’s information technology infrastructure we are wanting to utilize Darktrace’s artificial intelligence based system to prevent and detect any cyber attacks on the City’s systems.

The overall goal of the project is to safeguard the City’s information by utilizing high level solutions to combat cyber threats and protect citizens and employee information. Based on review and demonstration of system capabilities we feel that this unique solution used by various other agencies is the best solution for the City.

Chapter 3.16.090 Sole-Source/Single Source Procurements Per the city’s municipal code, the city may choose to sole source a service or product if there is “…item or service is essentially unique and can only be met by a single patented, copyrighted or proprietary article or unique process or skill set available from a single or sole source…” (Ord.

Item Number
14F

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672 § 2, 2017).

Therefore, the City determined it fall under the sole source based on their unique proprietary system and technology.

CONCLUSION
The City Council is requested to approve a purchase order for the installation and subscription of cyber defense system with Darktrace Holdings Limited not-to-exceed amount of $26,386.13.

STRATEGIC PLAN CORRELATION
Goal E (City Infrastructure and Service Delivery)
Objective:

1. Ensure high-quality infrastructure to continue connectivity throughout the community.

FINANCIAL IMPACT
If approved, the project would cost $26,386.13 currently budgeted in the General Fund.

ATTACHMENTS
A. Sole Source Letter – Darktrace Holding Limited
B. Purchase Order Invoice - Darktrace Holding Limited

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INVOICE
To:

City of Cudahy
5220 Santa Ana St
Cudahy, CA
90201
USA
Darktrace Holdings Limited
Maurice Wilkes Building
St John's Innovation Park
Cowley Road
Cambridge
CB4 0DS
UK
Telephone: +44(0) 1223 394 100
Email: [email protected]
VAT Reg No: GB 411 303 168
Invoice Details
Customer VAT Number: Invoice No 181843 Invoice Date 12 Sep 2023 US 95-6006488 PO Number Terms 30 Days
Reference Payment Due 12 Oct 2023
Description Unit Price Quantity Net Amt Tax % Tax Gross Darktrace Subscription
Invoiced annually in advance
15 Aug 2023 to 14 Aug 2024 23,933.00 1.00 23,933.00 10.250 2,453.13 26,386.13 Invoice 1 of 1
Please remit to:-
Account Name: Darktrace Holdings Limited
Account No: 914027832
Routing No: 022000020
SWIFTBIC: MRMDUS33
Bank: HSBC Bank USA
2911 Walden Ave
Depew
NY
14043
Registered in the UK; registered number 08562035; registered address: Maurice Wilkes Building, St John's Innovation Park, Cowley Road, Cambridge, CB4 0DS PLEASE NOTE: Please send payment electronically prior to due date shown above to the bank details provided below. Please email remittance advice to [email protected]. Recipient to apply reverse charge mechanism if applicable.

Total Net Amount USD 23,933.00
Total Tax Amount USD 2,453.13
Invoice Total USD 26,386.13
Attachment A Page 171 of 383

PRODUCT ORDER FORM
Customer Name: City of Cudahy
Shipping Address: 5220 Santa Ana St, Cudahy, CA 90201
Invoice Address: 5220 Santa Ana St, Cudahy, CA 90201
Attn: Alfonso Noyola
Email: [email protected]
Product Order Form: 120285-202307-27-822394
Date Prepared: 2023/07/27
Expiry Date: 2023/08/04
Darktrace Offering :

Product/Services Description Quantity
Subscription
Period
(months)
Start Date End Date
Annual
Customer Price
USD
Extended
Customer Price
USD
PREVENT [Not Ordered]
DETECT
Network
Darktrace DETECT/Network 150 Devices 12.0 2023-08-15 2024-08-14

RESPOND
Email
Darktrace/Email/Office365 75 Mailboxes 12.0 2023-08-15 2024-08-14 Network
Darktrace RESPOND/Network 150 Devices 12.0 2023-08-15 2024-08-14 Cyber AI Analyst [for Network]

DEPLOYMENT USAGE FEES
Darktrace Deployment Usage Fees/Appliance
(Small) 1 12.0 2023-08-15 2024-08-14
Subscription period commencing on 2023/08/15 (“Commencement Date”) Installation Services
Standard Support Services

TRAINING
eLearning Training
Public Online Training
23,933 23,933
TOTAL 23,933
LIST CUSTOMER PRICE 27,133
US: +1 415 229 9100 LATAM: +52 55 7005 0956 UK: +44 (0) 1223 294 100 APAC: +65 6804 5010 E: [email protected] www.darktrace.com

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PRODUCT ORDER FORM
Terms and Conditions:
1 By signing this Product Order Form ("Product Order Form"), issuing a purchase order referencing this Product Order Form or otherwise accessing or using the Offering, the Customer's use of the Offering shall be subject to the Darktrace Master Services Agreement included in the Appliance, which can also be found at:
https://www.darktrace.com/resources/legal-online-terms.pdf (“Agreement”). 2 Customer’s use of Darktrace/Email is limited to the number of Mailboxes specified above (“Usage Metrics”). For such purposes, a "Mailbox" is an email account capable of sending or receiving email. Email Volume is limited to 1800 emails sent and received in a 24 hour period (“Email Volume”). Should the Mailbox limit or the Email Volume be exceeded, additional Fees shall be payable.
3 The Appliance(s) are for use with respect to the Customer's applicable bandwidth throughput, number of connected devices and connections per minute as set out in the applicable Product Data Sheet (https://darktrace.com/resources/contract-data-sheets.zip) (the “Appliance Specifications”). Should the Appliance Specifications be exceeded, additional Fees shall be payable. The Software is limited to 150 (one hundred and fifty) Devices in use on the Customer network (the “Device Limit”). For the purposes of this calculation a “Device” is a unique Internet Protocol address (IP address), tied to a piece of equipment, apparatus, or instrument, virtual or physical; that is monitored, modelled and visible in the Threat Visualizer within a given 7 day time frame. Should the Device Limit be exceeded, additional Fees shall be payable. 4 Fees are exclusive of any applicable sales tax, goods and services tax, withholding tax or VAT. Fees will be invoiced annually in advance from the Commencement Date.

Payment terms Net 30.
5 If Customer requires a purchase order, it must be sent at the time of acceptance of this Product Order Form and be for the full contract value. If it is not received, Darktrace shall be entitled to invoice without it.
6 Acceptance of this Product Order Form is expressly limited to the terms of Darktrace's offer. Once accepted, the terms and conditions of this Product Order Form and the Agreement will be the complete and exclusive statement of the agreement between the parties. Any modifications proposed by Customer are expressly rejected by Darktrace and shall not become part of the Agreement in the absence of Darktrace’s written acceptance. 7 This Product Order Form may be executed in any number of counterparts and by different parties in separate counterparts. Each counterpart when so executed shall be deemed to be an original and all of which together shall constitute one and the same agreement. Transmission of the executed counterpart of this Product Order Form by email (in PDF, JPEG or other agreed format) shall take effect as delivery of an executed counterpart.

For Customer
Signature:

Name:

Job Title:

Signature Date:

For Darktrace:

Signature: /darktrace_sign_here/
Name: /darktrace_name/
Job Title: /darktrace_title/
Signature Date: /darktrace_date/
("Effective Date")
US: +1 415 229 9100 LATAM: +52 55 7005 0956 UK: +44 (0) 1223 294 100 APAC: +65 6804 5010 E: [email protected] www.darktrace.com

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Attachment B

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“Serving The People” "Sirviendo A La Comunidad"
Staff Report
10/17/2023 Page 1 of 5

STAFF REPORT
Date: October 17, 2023
To: Honorable Mayor and City Council
From: Alfonso Noyola, City Manager
By: Cecilia Madrigal-Gonzalez, Senior Planner
Subject: Consideration of a request from VM Evergreen, LLC for Forgiveness of Fees and Repayment Plan Request

RECOMMENDATION
Staff is recommending the City Council consider the presentation from staff, consider comments from VM Evergreen, LLC, consider comments from members of the public and deny VM Evergreen’s request for forgiveness of fees and repayment plan.

BACKGROUND

1. On September 11, 2017, the City adopted Ordinance No. 673 (Attachment A) establishing the City of Cudahy (“City”) Cannabis regulations which added Chapter 5.20 to the Cudahy Municipal Code (“CMC”). CMC Section 5.20.040 authorizes medicinal commercial cannabis activities within a designated overlay zone/permit area and pursuant to the development agreement adopted in accordance with the Development Agreement Law (Govt. Code Section 65864 et seq.) and the CMC Chapter 20.28.

2. On December 4, 2018, the City approved the first reading of Ordinance No. 698 (“Ordinance”) approving the Development Agreement DA 18-001C (Attachment B) and the issuance of Commercial Cannabis Permit No. 18-0001 between VM Evergreen, LLC (“Operator”) and the City at 8222 Atlantic Ave (“Site”). The second reading of the Ordinance was approved on December 18, 2018, with an effective date of January 17, 2019. On February 11, 2019, Javier Barajas, Managing Member of VM Evergreen, LLC executed Development Agreement No. 18- 001C.

3. On September 29, 2022, City staff had a scheduled site inspection at the Site, however, City staff were refused entry. On October 10, 2023, City staff conducted a follow-up inspection of the Site and found several violations as detailed in Attachment C which resulted in a Item Number
14G

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determination that the unpermitted construction and improvements resulted in an unsafe and dangerous structure and further required all building violations to be remedied before people could reenter or occupy the structure, more commonly known as red-tagging.

4. On October 24, 2022, a meeting was scheduled with the Operator, their legal counsel, City staff, and the City’s legal counsel to discuss the next steps. City staff and the City’s legal counsel verbally provided the Operator with the first necessary steps to bring their operation back on track to achieve compliance which included an updated project description and site plan.

5. On November 7, 2022, the City received an updated project description and site plan for City staff to review. City staff including the Building & Safety and Planning Divisions reviewed the plans and ultimately provided comments the site plan was denied on November 21, 2022, (Attachment D) because it proposed to maintain previous unpermitted work and alterations without seeking the proper permits or approval to ensure that work is carried out in accordance with building code requirements. City staff reached out to the Operator on November 30, 2022, and did not hear back (Attachment D).

6. On December 7, 2022, the City Manager offered a Cannabis Deferment and Payment Program (Attachment E) to assist cannabis operators with the accumulated non-operating and other fees by deferring and providing additional time for payment without penalty. All cannabis operatorsinterested in participating in this program were given no later than January 31, 2022, to execute a payment agreement. The City Manager did not receive a request from the Operator to participate in the deferment and payment agreement.

7. On February 22, 2023, the City issued a Final Demand Letter (Attachment F) declaring a default status on the Operator’s obligations under their Development Agreement and Commercial Cannabis Permit, and the Operator was given 30 days to cure outstanding violations.

8. On or about March 8, 2023, the Operator made a request for a payment plan.

Additionally, throughout the month of March, the Operator was not able to adequately address the deliverables outlined in the Final Demand Letter.

9. On or about March 21, 2023, the City’s Finance Department presented the Operator with a draft Deferment Agreement (payment plan) (Attachment G). The Operator did not accept the proposed terms and instead countered the offer (Attachment H). The City rejected the offer (Attachment I) on March 22, 2023.

10. On April 12, 2023, the Operator’s legal counsel requested a meeting with the City staff to discuss the payment plans, the Operator’s financial situation, and the process moving forward.

The meeting occurred on May 3, 2023.

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10/17/2023 Page 3 of 5

11. On May 8, 2023, the Operator submitted a revised request for a payment agreement (Attachment J) to the City.

12. On May 12, 2023, the Operator and the City entered into a Letter of Agreement on Payment of Outstanding Fees and Costs (Attachment K). The terms required the Operator to maintain current on Community Benefit and Cost Recovery payments but deferred the payment of Non-Operating Fees until six (6) months after the Operator received a Temporary Certificate of Occupancy for the Site.

13. From June to October 2023 the Finance Department sent monthly invoices and delinquency letters to the Operator (Attachment L). The Finance Department did not receive payments in a timely manner and was deemed in material breach of the Letter Agreement and consequently is null and void.

14. On September 6, 2023, the Operator requested a new payment plan arrangement due to financial hardship (Attachment M).

15. On August 9, 2023, the City issued letters (Attachment N) requiring all cannabis operators to open an escrow account to ensure payment of cost recovery fees, such as building permit fees. As of the writing of this report, the Operator has not opened an escrow account nor made any payments into the account.

DISCUSSION
The Operator, VM Evergreen LLC, has requested the City Council to consider a forgiveness of fees and repayment plan request citing financial hardship. City staff recommends the City Council deny the request due to the following reasons:

1. Building Site Red Tag Status. During a City inspection that was conducted on October 10, 2022, City of Cudahy officials, along with officials from other agencies found several violations of Building, Mechanical, Electrical, and Plumbing Codes, including occupation of the building without a Certificate of Occupancy and the unpermitted construction of illegal structures. The Operator was issued citations for the noncompliant and unpermitted work, further described in Attachment C. Since then, the Operator has failed to take the necessary actions to correct the red-tag status on the building which presently remains. To correct the actions, the Operator is required to obtain requisite approvals and permits from the City Planning Division, Building & Safety Division, and the County Fire Department. Staff estimates the fees associated with the review of plans, permits, and issuance with the City is $30,000-$50,000. The building permit fees cannot be waived and must be paid immediately upon plan check and permit issuance. Additionally, due to the Operator’s failure to comply with their financial obligations, the City suspends all inspections, plan

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reviews, issuance of certificate of occupancy, and other related work until the payments are made.

2. Escrow Account. As a result of industry-wide delays in the timely payment of assessed fees, all cannabis operators are required to provide an upfront payment of assessed quarterly fees to be made as a deposit in escrow. Cost recovery fees placed in escrows include covering costs associated with building permit review. The Operator has not made any payments into their escrow accounts and has failed to comply with their financial obligations.

3. Delinquency of Payments. As previously stated above, Operator has defaulted on its financial obligations pursuant to the Development Agreement. Operator and the City subsequently entered into a Letter of Agreement on Payment of Outstanding Fees (payment plan) and Costs on May 12, 2023. This agreement was a one-time forbearance agreement with no expectations for further extensions of time or modifications. The Operator has not paid their dues in a timely manner and is now delinquent. As a result, the payment plan is null and void.

4. Unlawful Gift of Public Funds. Forgiveness of fees due to a government agency, if not for a public purpose, constitutes an unlawful gift of public funds in violation of Article XVI, Section 6 of the California Constitution. In addition to a repayment plan, Operator has requested the City forgive Non-Operating Fees spanning the course of a two-year period and has failed to provide any evidence that the forgiveness of this debt would somehow fulfill a public purpose. On the contrary, the request for debt cancellation clearly states that the purpose of the request is to satisfy the Operator’s own financial hardships rather than meet a public purpose.

CONCLUSION
For the reasons discussed above and the information attached to this report, City staff recommends the City Council deny the request from the Operator due to their defaults under the Development Agreement and Commercial Cannabis Permit. As the next steps, City staff will continue the revocation process and schedule a Review Hearing on their compliance with the terms of the Development Agreement and Commercial Cannabis Permit.

STRATEGIC PLAN IMPACT
Not Applicable.

FINANCIAL IMPACT
There is no financial impact on the General Fund if the City Council denies the request. If the

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10/17/2023 Page 5 of 5

City Council enters into an additional payment agreement, the City will further delay the Operator’s financial contribution under the Development Agreement.

ENVIRONMENTAL REVIEW
Under California law, a project that previously was subject to review under the California Environmental Quality Act (“CEQA”) may be exempt from CEQA or may be evaluated under the provisions that may trigger subsequent or supplemental CEQA review (under Public Resources Code Section 21166 and CEQA Guidelines Section 15162). The actions are exempt from CEQA on the basis of CEQA Guidelines Section 15061. The CEQA Guidelines provide that, where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.

ATTACHMENTS
A. Ordinance No. 673
B. Ordinance No. 698
C. Violation Letter dated October 10, 2022
D. Correspondence – November 2022
E. Letter dated December 7, 2022
F. Final Demand Letter dated February 22, 2023
G. Correspondence – March 2023
H. March 21, 2023, Counteroffer from Operator
I. March 22, 2023 – City correspondence of Denial
J. Correspondence – May 8, 2023
K. Letter Agreement on Payment of Outstanding Fees & Costs executed May 12, 2023 L. Invoices and Delinquency Letters from June to October M. VM Evergreen LLC Request for New Payment Plan Arrangement N. Correspondence – August 9, 2023, Escrow Account

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ORDINANCE NO. 673

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
CUDAHY AMENDING TITLE 5 (BUSINESS LICENSES AND
REGULATIONS) AND TITLE 20 (ZONING) OF THE

CUDAHY MUNICIPAL CODE TO PROHIBIT CANNABIS

RETAILERS/DISPENSARIES CITYWIDE AND TO

ESTABLISH REGULATIONS AND A DISCRETIONARY

REVIEW PROCESS FOR THE ALLOWANCE OF

MEDICINAL-ONLY COMMERCIAL CANNABIS ACTIVITIES
(CULTIVATION, DISTRIBUTION, MANUFACTURING,

DELIVERIES, MICROBUSINESS, AND LABORATORY

TESTING) IN A SPECIFIED OVERLAY ZONE THROUGH A

DEVELOPMENT AGREEMENT
WHEREAS, in 1996, the California Legislature approved Proposition 215, also known as the Compassionate Use Act (the "CUA"), which was codified under Health and Safety Code Section 11262.5 et sec. and was intended to enable persons in need of medical marijuana for specified medical purposes, such as cancer, anorexia, AIDS, chronic pain, glaucoma and arthritis, to obtain and use marijuana under limited circumstances and where recommended by a physician. The CUA provides that "nothing in this section shall be construed or supersede legislation prohibiting persons from engaging in conduct that endangers others, or to condone the diversion of marijuana for non-medical purposes.";
WHEREAS, in 2004, the California Legislature enacted the Medical Marijuana Program Act (Health & Saf. Code, § 11362.7 et seq.)(the "MMP"), which clarified the scope of the CUA, created a state-approved voluntary medical marijuana identification card program, and authorized cities to adopt and enforce rules and regulations consistent with the MMP. Assembly Bill 2650 (2010) and Assembly Bill 1300 (2011) amended the MMP to expressly recognize the authority of counties and cities to "[a]dopt local ordinances that regulate the location, operation, or establishment of a medical marijuana cooperative or collective" and to civilly and criminally enforce such ordinances;
WHEREAS, the Federal Controlled Substances Act (21 U.S. C., § 801 et seq.) makes it unlawful under federal law for any person to cultivate, manufacture, distribute or dispense, or possess with intent to manufacture, distribute, or dispense marijuana.

Despite such federal prohibition, on August 29, 2013, the United States Department of Justice issued a memorandum (the "Cole Memo") stating that, notwithstanding the federal classification of marijuana as a schedule 1 controlled substance, jurisdictions that have legalized marijuana in some form are less likely to be subject to federal enforcement under the Controlled Substances Act if they have implemented strong and effective regulatory and enforcement systems to follow eight guiding principles: (1) preventing the distribution of marijuana to minors; (2) preventing revenue from the sale of marijuana from going to criminal enterprises, gangs, and cartels; (3) preventing the

Page 1 ends

Attachment A Page 184 of 383
diversion of marijuana from states where it is legal under state law in some form to other states; (4) preventing state-authorized marijuana activity from being used as a cover or pretext for the trafficking of other illegal drugs or other illegal activity; (5) preventing violence and the use of firearms in the cultivation and distribution of marijuana; (6) preventing drugged driving and the exacerbation of other adverse public health consequences associated with marijuana use; (7) preventing the growing of marijuana on public lands and the attendant public safety and environmental dangers posed by marijuana production on public lands; and (8) preventing marijuana possession or use on federal property;
WHEREAS, in September 2015, the California State Legislature enacted, and Governor Brown signed into law three bills - Assembly Bill 243, Assembly Bill 266, and Senate Bill 643 - which together comprise the Medical Marijuana Regulation and Safety Act (the "MMRSA"). The MMRSA created a comprehensive dual state licensing system for the cultivation, manufacture, retail, sale, transport, distribution, delivery, and testing of medical cannabis;
WHEREAS, on August 22, 2016, the City Council of the City of Cudahy (the "City Council" of the "City") adopted Interim Urgency Ordinance No. 656U to establish a temporary moratorium on medical "commercial cannabis activities," as defined under the MMRSA, for a period of 45 days and extended such moratorium for an additional period of 22 months and 15 days under Interim Urgency Ordinance No. 661, on September 26, 2016;
WHEREAS, the MMRSA was renamed the Medical Cannabis Regulation and Safety Act (the "MCRSA") under Senate Bill 837 in June 2016, which also made substantive changes to the applicable state laws, which affect the various state agencies involved in regulating cannabis businesses as well as potential licensees; WHEREAS, on November 8, 2016, the Control, Regulate, and Tax Adult Use of Marijuana Act ("AUMA") was approved California voters as Proposition 64 and became effective on November 9, 2016, pursuant to the California Constitution (Cal. Const., art.

II, § 10(a).). Proposition 64 legalized the nonmedical use of cannabis by persons 21 years of age and over, and the personal cultivation of up to six (6) cannabis plants. On November 14, 2016, the City Council adopted Urgency Ordinance No. 663 to prohibit outdoor personal marijuana cultivation and establish regulations and a permitting process for indoor personal marijuana cultivation;
WHEREAS, AUMA also created a state regulatory and licensing system j governing the commercial cultivation, testing, and distribution of nonmedical cannabis, and the manufacturing of nonmedical cannabis products. On January 9, 2017, Interim Urgency Ordinance No. 666 was adopted by the City Council to establish a temporary moratorium on nonmedical "commercial cannabis activities" for a period of 45 days and extended such moratorium for an additional period of 22 months and 15 days under Interim Urgency Ordinance No. 667, on February 27, 2017; Page2

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\
I
)
WHEREAS, on June 27, 2017, Governor Brown signed the Legislature-approved Senate Bill 94. SB 94 combined elements of the MCRSA and AUMA to establish a streamlined singular regulatory and licensing structure for both medical and nonmedical cannabis activities given that there were discrepancies between the MCRSA and AUMA. The new consolidated provisions under SB 94 is now known as the Medicinal and Adult-Use Cannabis Regulation and Safety Act ("MAUCRSA") to be governed by the California Bureau of Cannabis Control. MAUCRSA refers to medical cannabis as "medicinal cannabis" and nonmedical/recreational cannabis as "adult-use cannabis"; WHEREAS, on June 27, 2017, the as part of an Economic Development Ad Hoc Committee presentation on revenue-generating opportunities, commercial cannabis regulations and strategies were offered to and discussed by the City Council; WHEREAS, the City seeks to establish an overlay zone in the City in which certain medicinal-only commercial cannabis activities can be conducted in accordance with MAUCRSA and the City's police power under Section 7 of Article XI of the California Constitution;
WHEREAS, it is the purpose and intent of the City to regulate medicinal cannabis in a manner that is consistent with the Cole Memo and promotes the health, safety, and general welfare of the residents and businesses within the City, while limiting any negative impacts;
WHEREAS, the City intends to be on the forefront of groundbreaking research, science, innovation, and development of treatment for symptoms and cures in the field of medicinal cannabis, as scientific research, studies, and data have established that medicinal cannabis can help patients with a vast array of medical conditions; WHEREAS, the City desires to reduce the illegal market for cannabis while minimizing the chances of social harm and creating jobs and revenue for the City; and WHEREAS, nothing in this Ordinance shall be construed to allow persons to engage in conduct that violates the law, endangers others, causes a public nuisance, allows the illegal use or diversion of cannabis, or allows any activity relating to cannabis that is otherwise illegal under California state law, as amended.

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

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

SECTION 2. Title 20 (Zoning) of the Cudahy Municipal Code is hereby amended by the addition of a new Chapter 20.120 (Commercial Cannabis Overlay Zone), which shall read as follows:

Chapter 20.120 - Commercial Cannabis Overlay Zone.

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20.120.010 Definitions
For purposes of this Chapter 20.120, the following definitions shall apply:
"Commercial cannabis activities" mean the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery or sale of cannabis and cannabis products. ) "Cannabis" means all parts of the Cannabis sativa Linnaeus, Cannabis indica, or j Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. "Cannabis" also means the separated resin, whether crude or purified, obtained from cannabis. "Cannabis" also means marijuana as defined by Section 11018 of the California Health and Safety Code as enacted by Chapter 14017 of the Statutes of 1972. Cannabis does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. For the purpose of this Chapter, cannabis does not mean industrial hemp as that term is defined by Section 81000 of the California Food and Agricultural Code or Section 11018.5 of the California Health and Safety Code.
"Cannabis product" means cannabis that has undergone a process whereby the plant material has been transformed into a concentrate, or other cannabis derivative, including, but not limited to, concentrated cannabis, or an edible or topical product containing cannabis or concentrated cannabis and other ingredients. "Day care center" means any child day care facility other than a family day care home, and includes infant centers, preschools, extended day care facilities, and schoolage child care centers.
"Overlay Zone" means the commercial cannabis overlay zone, whose area and boundaries are attached to City Council Ordinance No. 673 as Exhibit "A" "MAUCRSA" means the Medicinal and Adult-Use Cannabis Regulation and Safety Act, as may hereinafter be amended.
"Youth center" means any public or private facility that is primarily used to host recreational or social activities for minors, including, but not limited to, private youth membership organizations or clubs, social service teenage club facilities, video arcades, or similar amusement park facilities.

Page4

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l

20.120.020 Prohibitions.

Adult-use commercial cannabis activities and medicinal commercial cannabis activities, as both are described in state law, including, but not limited to MAUCRSA, are hereby prohibited unless otherwise allowed in this Chapter.

20.120.030 Overlay zone.

Medicinal commercial cannabis activities, except retail dispensaries that are open to the public for point-of-sale purchases, shall be allowed within the Overlay Zone pursuant to a development agreement adopted in accordance with the Development Agreement Law (Gov. Code, § 65864 et seq.) and Cudahy Municipal Code Chapter

20.28 (Development Agreements). No such activities shall be permitted without a development agreement within or outside of the boundaries of the Overlay Zone.

The City may approve or deny such a development agreement in its sole and absolute discretion.

20.120.040 Particular restrictions for Atlantic Avenue.

Section 20.120.030 notwithstanding, no cannabis-related business shall be located within the Overlay Zone and on Atlantic Avenue with a storefront facing Atlantic Boulevard unless such business employs and effectuates a business model with a primary entertainment purpose.

20.120.050 Indoor Horticulture.

Indoor horticulture, excluding cannabis horticulture shall be permitted by-right within the Overlay Zone.

20.120.060 Prohibition on new schools, day cares, and youth centers in overlay zone.

The establishment of public or private schools providing instruction in kindergarten or any grades 1 through 12, day care center, or youth center is prohibited within the Overlay Zone, or within 600 feet of the boundaries of the Overlay Zone, is hereby prohibited, unless otherwise mandated under state or federal law. An existing public or private school providing instruction in kindergarten or any grades 1 through 12, day care center, or youth center located within the Overlay Zone, or within 600 feet of the boundaries of the Overlay Zone shall be considered legal nonconforming, in accordance with Chapter 20.24 (Legal Nonconforming) of Title 20 (Zoning) of the Cudahy Municipal Code.

20.120.070 Temporary permits for local events - rights reserved.

The City reserves the right to issue temporary permits for onsite cannabis sales to, and consumption by, persons 21 years of age or older at a county fair, district agricultural association event, or other similar event authorized under state law, which is located within the Overlay Zone, pursuant to the provisions of Subdivision (e) of Business and Professions Code Section 26200.

SECTION 3. Subsection (3)(p) of Section 20.64.090 (Uses Permitted in Residential Zones by Conditional Use Permit) of Chapter 20.64 (Residential Districts) of Title 20 (Zoning) of the Cudahy Municipal Code is hereby amended to read as follows:

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(p) Schools, public and private, excluding schools providing instruction in kindergarten or any grades 1 through 12 located within 600 feet of a residential zone located within the Commercial Cannabis Overlay Zone illustrated in Exhibit "A" to City Council Ordinance No. 673, unless otherwise mandated under state or federal law.

SECTION 4. Subsection (24) of Section 20.68.100 (Uses Permitted in Residential Zones by Conditional Use Permit) of Chapter 20.68 (Commercial and Professional Districts) of Title 20 (Zoning) of the Cudahy Municipal Code is hereby amended to read as follows:
(24) Day care centers, excluding those occupying any portion of the CC zone located within 600 feet of the Commercial Cannabis Overlay Zone illustrated in Exhibit "A" to City Council Ordinance No. 673, unless otherwise mandated under state or federal law.

SECTION 5. Subsection (49) of Section 20.68.100 (Uses Permitted in Residential Zones by Conditional Use Permit) of Chapter 20.68 (Commercial and Professional Districts) of Title 20 (Zoning) of the Cudahy Municipal Code is hereby amended to read as follows:
(49) Schools, colleges, and universities, accredited, including appurtenant facilities that offer instruction required to be taught by the Education Code of the state of California and in which no pupil is physically restrained, excluding schools which provide instruction in kindergarten or any grades 1 through 12 that occupy any portion the CC zone located within 600 feet of the Commercial Cannabis Overlay Zone illustrated in Exhibit "A" to City Council Ordinance No. 673, unless otherwise mandated under state or federal law.

SECTION 6. Subsection (50) of Section 20.68.100 (Uses Permitted in Residential Zones by Conditional Use Permit) of Chapter 20.68 (Commercial and Professional Districts) of Title 20 (Zoning) of the Cudahy Municipal Code is hereby amended to read as follows:
(50) Schools, business and professional, including art, barber, beauty, dance, drama, music, and swimming, excluding schools which provide instruction in kindergarten or any grades 1 through 12 that occupy any portion the CC zone located within 600 feet of the Commercial Cannabis Overlay Zone illustrated in Exhibit "A" to City Council Ordinance No. 673, unless otherwise mandated under state or federal law.

SECTION 7. Subsection (46) of Section 20.68.150 (Uses by conditional use permit in C-M Zone) of Chapter 20.68 (Commercial and Professional Districts) of Title 20 (Zoning) of the Cudahy Municipal Code is hereby amended to read as follows:
(46) Schools, colleges, and universities, accredited, including appurtenant facilities which offer instruction required to be taught by the Education Code of the state and in which no pupil is physically restrained, excluding schools which provide instruction in kindergarten or any grades 1 through 12 that occupy any portion the C-M zone located within 600 feet of the Commercial Cannabis Overlay Zone illustrated in Exhibit "A" to City Council Ordinance No. 673, unless otherwise

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mandated under state or federal law.

SECTION 8. Subsection (47) of Section 20.68.150 (Uses by conditional use permit in C-M Zone) of Chapter 20.68 (Commercial and Professional Districts) of Title 20 (Zoning) of the Cudahy Municipal Code is hereby amended to read as follows:
(47) Schools, business and professional, including art, barber, beauty, dance, drama, music, and swimming, excluding schools which provide instruction in kindergarten or any grades 1 through 12 that occupy any portion the C-M zone located within 600 feet of the Commercial Cannabis Overlay Zone illustrated in Exhibit "A" to City Council Ordinance No. 673, unless otherwise mandated under state or federal law.

SECTION 9. Title 5 (Business License and Regulations) of the Cudahy Municipal Code is hereby amended by the addition of a new Chapter 5.20 (Cannabis Permitting and Regulation), which shall read as follows:

Chapter 5.20 - Cannabis Permitting and Regulation.

5.20.010 Section Intent and Purposes.

The intent and purpose of this Chapter is to regulate Commercial Cannabis Activity (as defined below) in accordance with State Law (as defined below) 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 Activity include:
(a) To comply with the goals and guidance set forth in the Cole Memo. (b) To minimize the size of the illegal market for Cannabis in the City and the surrounding regions.
(c) To create jobs, revenue, and economic growth for the City and its residents. (d) 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. (e) To minimize social harms which may arise from Cannabis including youth consumption or intoxicated driving.
(f) To regulate the manner of advertising and location of Cannabis Permittees such that public nuisance is minimized.

5.20.020 Definitions.

For purposes of this Chapter, the following definitions shall apply, unless the context clearly indicates otherwise:
(a) "Applicant" means an Owner seeking a Cannabis Permit pursuant to this Chapter.
(b) "Cannabis" means all parts of the Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every

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compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. Cannabis also means the separated resin, whether crude or purified, obtained from cannabis. Cannabis also means marijuana as defined by Section 11018 of the California Health and Safety Code as enacted by Chapter 14017 of the Statutes of 1972. Cannabis does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. For the purpose of this Chapter 5.18, Cannabis does not mean industrial hemp as that term is defined by Section 81000 of the California Food and Agricultural Code or Section 11018.5 of the California Health and Safety Code.
(c) "Cannabis Permit" means a permit issued by the City to conduct a Commercial Cannabis Activity, including, but not limited to a Cultivation Permit, Distribution Permit, Manufacturing Permit, Microbusiness Permit, Retail Delivery Permit, or Testing.
(d) "Cannabis Permittee" means a Person who holds a Cannabis Permit. (e) "Cannabis Product" means cannabis that has undergone a process whereby the plant material has been transformed into a concentrate, or other cannabis derivative, including, but not limited to, concentrated cannabis, or an edible or topical product containing cannabis or concentrated cannabis and other ingredients.
(f) "City" shall mean the City of Cudahy.
(g) "City Coden means the City of Cudahy Municipal Code. (h) "City Manager" means the City Manager of the City of Cudahy. (i) "Cole Memo" means the August 29, 2013 United States Department of Justice memorandum offering guidance on federal enforcement priorities regarding Cannabis.

U) "Commercial Cannabis Activity(ies)" means the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery or sale of Cannabis and/or Cannabis Products. (k) "Cultivation" means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of Cannabis.
(I) "Cultivation Permit" means a Cannabis Permit for the Indoor Cultivation of Cannabis in accordance with the terms and conditions of this Chapter and the Development Agreement for the applicable Cannabis Permit issued to the particular Cultivation Permittee.
(m) "Cultivation Permittee" means an applicant who has applied for and has been issued a Cultivation Permit by the City pursuant to the terms and conditions of this Chapter.

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(n) "Day Care Center" means any child day care facility other than a family day care home, and includes infant centers, preschools, extended day care facilities, and schoolage child care centers.
(o) "Development Agreement" means an agreement adopted pursuant to the Development Agreement Law (Gov. Code, § 65864 et seq.) and Cudahy Municipal Code Chapter 20.28 (Development Agreements), which provides agreed upon community benefits to the City.
(p) "Distribution" means the procurement, sale, and transport of cannabis and cannabis products between persons authorized to engage in permitted commercial cannabis activities pursuant to this Chapter. (q) "Distribution Permit" means, with respect to a Distribution Permittee, a Cannabis Permit for Distribution in accordance with the terms and conditions of this Chapter and the Development Agreement for the applicable Cannabis Permit issued to such Distribution Permittee.
(r) "Distribution Permittee" means a Person that has been issued a Distribution Permit by the City pursuant to the terms and conditions of this Chapter. (s) "Fully Enclosed and Secure Structure" means a space within a building or other structure which has a complete roof enclosure supported by connecting walls extending from the ground to the roof, which is reasonably secure against unauthorized entry, provides complete visual screening or is behind fencing or other features providing complete visual screening, and which is accessible only through one or more lockable doors and is inaccessible to minors. (t) "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: (i) 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 activity or breaches a term or terms of a Development Agreement approved by the City Council pursuant to this Chapter; (ii) 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; (iii) 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 Activity is being conducted; (iv) 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; (v) 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

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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; (vi) 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; (vii) 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 (viii) the Applicant or Cannabis Permittee allows for Physician Services to be conducted on the applicable Premises. (u) "Good Moral Character" means having a personal history that demonstrates the propensity to serve the public in a manner that reflects openness, honest, fairness, and respect for the law and rights and well-being of others. In determining Good Moral Character, the following standards shall apply: (i) 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 matter, that he or she is rehabilitated, and/or that the substance of the former offense is not substantially related to the applicable Commercial Cannabis Activity; and (ii) a prior conviction where the sentence, including any term of probation incarceration, or supervised release is completed for the possession of, 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 Activity. (v) "Health and Safety Code" means the California Health and Safety Code, as amended from time to time.
(w) "Indoor" means within a Fully Enclosed and Secure Structure. (x) "Manufacture" or "Manufacturing" means to compound, blend, extract, infuse, or otherwise make or prepare a Cannabis Product from such blends, extractions, or infusions.

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(y) uManufacturing Permit" means a Cannabis Permit to Manufacture in accordance with the terms and conditions of this Chapter and the conditions of approval for the applicable Cannabis Permit issued to the particular Manufacturing Permittee.
(z) "Manufacturing Permittee" means a Person that has been issued a Manufacturing Permit by the City pursuant to the terms and conditions of this Chapter.
(aa) "Medicinal Permittee" means a Person who is issued a Cannabis Permit to engage in Commercial Cannabis Activity with respect to medicinal Cannabis in accordance with applicable City law and State Law, including MAUCRSA. (bb) "Microbusiness" means a commercial medicinal cannabis business facility of cultivation of medicinal cannabis on areas less than 10,000 square feet and also acts as a licensed distributor, manufacturer, and Delivery-only retailer, pursuant to State Law, including MAUCRSA. Microbusinesses shall not be open to the public for point-of-sale retail Cannabis sales.
(cc) "Microbusiness Permit" means a Cannabis Permit to establish and conduct a Microbusiness in accordance with the terms and conditions of this Chapter and the conditions of the Development Agreement for the applicable Cannabis Permit issued to the particular Microbusiness Permittee. (dd) "Microbusiness Permittee" means a Person who has been issued a Microbusiness Permit by the City pursuant to the terms and conditions of this Chapter.
(ee) "Outdoors" means any location within the City that is not within a Fully Enclosed and Secure Structure.
(ff) "Owner" means any of the following: (i) a Person with an aggregate ownership interest of 20% or more in the Person applying for a Cannabis Permit, unless the interest is solely a security, lien, or encumbrance; (ii) the chief executive officer of a nonprofit or other entity; a member of the boards of directors of a nonprofit; (iv) an individual who will be participating in the direction, control, or management of the person applying for a Cannabis Permit. (gg) "Permit Zone" means, with respect to a Person holding a Cannabis Permit, the overlay zone described in Cudahy Municipal Code Chapter 20.120 where such Cannabis Permit type is permitted to operate pursuant to a Development Agreement with the City.
(hh) "Person" includes any individual, entity, firm, co-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 the plural as well as the singular.
(ii) "Physician Services" means the consultation by a State-licensed physician of a patient with the possible recommendation by such physician of medicinal Cannabis for such patient.

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OD "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 Activity will be or is conducted. The premises shall be a contiguous area and shall only be occupied by one Cannabis Permittee. (kk) "Retail Delivery" means the commercial transfer or delivery of Cannabis or Cannabis Products to a customer, patient, primary caregiver or Cannabis Permittee.
(II) "Retail Delivery Establishment" means a location where Cannabis or Cannabis Products are, either individually or in any combination, Delivered pursuant to State Law, including MAUCRSA. Retail Delivery Establishments shall not be open to the public for point-of-sale retail sales. (mm) "Retail Delivery Permit" means a Cannabis Permit to Deliver Cannabis and Cannabis Products to customers, patients, and primary caregivers in accordance with the terms and conditions of this Chapter and the conditions of the Development Agreement for the applicable Cannabis Permit issued to the particular Retail Delivery Permittee.
(nn) "Retail Delivery Permittee" means a Person that has been issued a Retail Delivery Permit by the City pursuant to the terms and conditions of this Chapter. (oo) "State" means the State of California.
(pp) "State Law" means all laws of the State of California, including, but not limited to, all rules and regulations adopted by State agencies and State regulatory entities, including subsequent amendments to such laws, rules, and regulations.
(qq) "State Medicinal license" means a State license for medicinal Commercial Cannabis Activities issued pursuant to State Law. (rr) "Testing" means the activities conducted by a Testing Laboratory. (ss) "Testing Laboratory" means an accredited laboratory, facility, or entity in the City that offers or performs tests of medicinal cannabis or medicinal cannabis products in accordance with State Law and City law:
(tt) "Testing Permit" means a Cannabis Permit for Testing the quality and makeup of Cannabis and Cannabis Products pursuant to the terms and conditions of this Chapter and the conditions of the Development Agreement for the applicable Cannabis Permit issued to the particular Testing Permittee. (uu) "Testing Permittee" means a Person who has been issued a Testing Permit by the City pursuant to the terms and conditions of this Chapter. (vv) "Volatile Solvent" means a Class I Flammable liquid as defined by the National Fire Protection Association, including butane and propane. (ww) "Youth Center" means any public or private facility that is primarily used to host recreational or social activities for minors, including, but not limited to,

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private youth membership organizations or clubs, social service teenage club facilities, video arcades, or similar amusement park facilities.

5.20.030 Commercial Cannabis Activity Prohibited.

All Commercial Cannabis Activity within the City is prohibited except as permitted by this Chapter.

5.20.040 Certain Commercial Cannabis Activity Permitted. Medicinal Commercial Cannabis Activities, except retail dispensaries that are open to the public for point-of-sale purchases, shall be allowed within the area set forth in the overlay zone/Permit Area illustrated in Exhibit "A" to City Council Ordinance No. 673 pursuant to a development agreement adopted in accordance with the Development Agreement Law (Gov. Code,§ 65864 et seq.) and Cudahy Municipal Code Chapter

20.28 (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 Agreement in its sole and absolute discretion. The City Manager is authorized to develop and promulgate policies and procedures consistent with the intent and spirit of this Chapter concerning the applications, application process, including, but not limited to, the information required of Applicants, and application review procedures, which shall inform the administration and protocols to be used and followed by the City in the application and hearing processes.

5.20.050 Business standards.

Commercial Cannabis Activity within the City shall be in conformance with the standards set forth in this Section, in addition to those additional standards that may be imposed through negotiated Development Agreement. The City Manager is hereby authorized to formulate and impose additional Business Requirements applicable to Cannabis Permittees in furtherance of the public health, safety, and/or welfare.
(a) Commercial Cannabis Activity shall only be allowed upon application and issuance of a Cannabis Permit and a Development Agreement by the City in accordance with the criteria and process set forth in this Chapter and City Code. (b) Zoning and Land Use.
(1) Operation Near Schools, Day Cares, and Youth Centers. Following the enactment of this Chapter, no new Premises shall be established, developed, or operated within 600 feet of a Day Care Center, Youth Center, or public or private school providing instruction in kindergarten or any grades 1 through 12 that is in existence at the time the Cannabis Permit is issued. All distances shall be measured in a straight line, without regard to intervening structures, from the nearest point of the building or structure in which the Premises are, or will be, located to the nearest property line of those uses describe in this Subsection. The restrictions set forth in this Subsection shall not apply to Premises which operate within 600 feet of any Day Care Center, Youth Center, or public or private school

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providing instruction in kindergarten or any grades 1 through 12, if such Premises existed prior to the establishment of the applicable Day Care Center, Youth Center, or school that is located within 600 feet of such Premises.
(2) Co-Location. All Commercial Cannabis Activity shall fully comply with all l mandates set forth in State Law. To the extent not prohibited under State Law, a Cannabis Permittee may be located within the same unit of the same Premises or building, facility or real property parcel as another Cannabis Permittee.
(3) Development Agreement.
a) Prior to commencing operations, all Cannabis Permittees shall enter into a Development Agreement with the City.
b) All Premises shall be operated in accordance with the terms of the applicable Development Agreement for the specified parcel of real property (or sub-portion thereof) upon which the Premises is located. c) Except as specified, Commercial Cannabis Activities shall not exceed the square footage authorized pursuant to the applicable Development Agreement.
d) All Premises shall be located in the Permit Zone pursuant to the applicable Development Agreement.
(c) Commercial Cannabis Activity is allowed only within Fully Enclosed and Secure Structures that are inaccessible to minors.
(d) Signage for any business must be applied for through the City's Planning Division, which shall require review and approval prior to installation. Business identification signage shall be limited to that needed for identification only, and shall not contain any logos or information that identifies, advertises, or lists the services or the products offered. No Cannabis Permittee shall advertise by having a person holding a sign and advertising the business to passersby, whether such person is on the Premises of the Cannabis Permittee or elsewhere including, but not limited to, the public right-of-way. (e) From any public right-of-way, there shall be no visible evidence of the consumption of any Cannabis Products. Commercial Cannabis Activity shall not adversely affect the health or safety of the nearby residents by creating dust, glare, heat, noise, smoke, traffic, vibration, odor or other impacts, and shall not be hazardous due to use or storage of materials, processes, products, or wastes. (f) Hours of operation limits, if any, shall be specified in terms mutually agreed upon in a Development Agreement.
(g) All Cannabis and Cannabis Products shall be kept in a secured manner during all business and nonbusiness hours.
(h) All Commercial Cannabis Activities shall operate within Premises that are compliant with all applicable State Laws and local laws.

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(i) Cannabis Permittees must pay all applicable taxes pursuant to all federal, State, and local laws, including, but not limited to, fees relating to infrastructure improvements within the Permit Zone.

U) Cannabis Permittees shall provide sufficient odor absorbing ventilation and exhaust systems so that odors outside the applicable Premises are not a nuisance on any adjacent property of public right-of-way. Any violation of this Section shall be remedied within thirty (30) days of the Cannabis Permittee receiving notice of such violation.
(k) Cannabis Permittees shall utilize product and inventory tracking software and accounting software that is consistent with reasonable business practices within the industry and the seed-to-sale tracking software being developed by the State. (I) Except permitted in this Chapter, on-site smoking, ingestion, or consumption of Cannabis or Cannabis Products shall be prohibited on Premises. Except to the extent otherwise permitted pursuant to this Chapter, the entrance of the Premises shall be clearly and legibly posted with a notice indicating that smoking, ingesting, or consuming Cannabis, Cannabis Products or alcohol on such Premises is prohibited.
(m) Signage for all Premises shall be in compliance with the City's sign code and application for all signs must be submitted to the City's Planning Division and comply with its sign permitting protocol.
(n) Alcoholic beverages and tobacco shall not be sold, stored, distributed, or consumed on the Premises. Cannabis Permittees shall not hold or maintain a license from the State Department of Alcohol Beverage Control to sell alcoholic beverages, or operate a business that sells alcoholic beverages or tobacco with respect to the Premises. In addition, alcohol shall not be provided, stored, kept, located, sold, dispensed, or used on the Premises.
(o) Physician Services shall not be provided at any Premises. (p) The Premises shall fully comply with all applicable rules, regulations, and laws including, but not limited to, zoning and building City Codes, the City's business license ordinances, the Revenue and Taxation Code, the Americans with Disabilities Act, and MAUCRSA.
(q) Each Cannabis Permittee shall provide the City Manager, or the City Manager's designee, with the name, phone number, facsimile number, and email address of an on-site representative of such Cannabis Permittee to whom the City and the public can provide notice if there are any operational problems associated with such Cannabis Permittee's Premises. Each Cannabis Permittee shall make reasonable and good faith efforts to encourage residents and the public to call this representative to resolve any operational problems before any calls or complaints are made to the City or law enforcement. (r) All Cannabis Permittees must comply with the following security requirements:
(1) General Security Requirements.

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a) Security cameras shall be installed and maintained in good working condition and used in a format approved by the City Manager. The cameras shall be in use 24 hours per day, 7 days per week. The areas to be covered by the security cameras include areas as determined by the City Manager, including, but not limited to, the area in which the primary Commercial Cannabis Activity occurs, e.g. the Cultivation area for a for a cultivator.
b) The Premises shall be alarmed with a reliable commercial alarm system that is operated and monitored by a security company or alarm business in a manner satisfactory to the City Manager.
c) Entrance to any storage areas shall be locked at all times and under the control of staff of the Cannabis Permittee.
d) The business entrance(s) and all window areas shall be illuminated during evening hours. The Applicant shall comply with the City's lighting standards regarding fixture type, wattage, illumination levels, shielding, etc., and secure the necessary approvals and permits, as necessary. e) All windows on the Premises shall be appropriately secured with all Cannabis and Cannabis Products securely stored.
f) Each Cannabis Permittee shall implement track and trace protocols, as noted above in this Section, in order to prevent diversion of Cannabis or Cannabis Products.
g) All waste and disposal containers shall be locked at all times and stored ins a secure area and, at all times, under the control of the Cannabis Permittee.
(2) Security Alarm Systems - Minimum Requirements.
a) Each Premises shall have a security alarm system installed by a licensed alarm company on all perimeter entry points and perimeter windows.
b) Each Premises must ensure that its location is continuously monitored. Premises may engage the services of outside vendors to fulfill this requirement, such as a private security firm.
c) Each Premises shall maintain up to date and current records and existing contracts on the Premises that describe the location and operation of each security alarm system, a schematic of security zones, the name of the licensed alarm company, and the name of any vendor monitoring the Premises.
(3) Lock Standards. At a minimum, all points of ingress and egress shall be secured with commercial-grade, non-residential door locks. (4) Video Surveillance Requirements.

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a) Prior to exercising the privileges of a Cannabis Permit issued under this Chapter, an Applicant must install fully operational video surveillance and camera recording system. The recording system must record in digital format and meet the requirements outlined herein.
b) All video surveillance records and recording must be stored in a secure area that is only accessible to the management staff of the Cannabis Permittee.
c) Video surveillance records and recordings must be made available upon request to the City Manager or designee for a purpose authorized by this Chapter or for any other State or local law enforcement purpose. d) Video surveillance shall be held in confidence by all employees and representatives of the City Manager, except that the City Manager may provide such records and recordings to any State or local law enforcement agency for any purpose authorized under this Chapter for any State or local law enforcement purpose.
e) A sign shall be posted in a conspicuous place near each point of public access, which shall not be less than 12 inches wide and 12 inches long, composed of letters not less than one inch in height, stating that "All Activities Monitored by Video Camera" or "These Premises Are Being Digitally Recorded" or otherwise advising of all persons entering the Premises that a video surveillance and camera recording system is in operation and recording all activity as provided in this Section. f) The Premises shall utilize video surveillance equipment and a camera system that shall be remotely accessible by the City and Los Angeles County Sheriff's Department.
(5) Video Surveillance Equipment.
a) Video surveillance equipment shall, at a minimum, consist of digital or network video recorders, cameras capable of meeting the recording requirements described in this Section, video monitors, digital archiving devices, and a color printable capable of delivering still photos. b) All video surveillance systems must be equipped with a failure notification system that provides prompt notification to a Cannabis Permittee of any prolonged surveillance equipment interruption and/or the complete failure of the surveillance.
c) Cannabis Permittees are responsible for ensuring that all surveillance equipment is properly functioning and maintained so that the playback quality is suitable for viewing and the surveillance equipment is capturing the identity of all individuals and activities in the monitored Premises.
d) All video surveillance equipment shall have sufficient battery backup to support a minimum of four hours of recording in the event of a power outage.

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(6) Placement of Cameras and Required Camera Coverage.
a) Camera placement shall be capable of identifying activity occurring within 20 feet of all points of ingress and egress and shall allow for the clear and certain identification of any individual and activities on the Premises.
b) All entrances and exits to the Premises shall be recorded from both indoor and outdoor vantage points.
c) The system shall be capable of recording all pre-determined surveillance areas in any lighting conditions. If the Premises has a medicinal cannabis cultivation area, a rotating schedule of lighted conditions and zero-illumination can occur as long as ingress and egress points to those areas remain constantly illuminated for recording purposes.
d) Areas where medicinal cannabis is grown, tested, cured, manufactured, or stored shall have a camera placed in the room facing the primary entry door at a height that will provide a clear unobstructed view of activity without sight blockage from lighting hoods, fixtures, or other equipment.
e) Cameras shall also be placed at each location where weighing, packaging, preparation, tagging activities occur, or other distribution preparation activities occur.
f) At least one camera must be dedicated to record the access points to the secured surveillance recording area.
(7) Location and Maintenance of Surveillance Equipment. a) Surveillance recording equipment must be housed in a designated, locked, and secured room or other enclosure with access limited to authorized employees, the City Manager or designee, Los Angeles County Sheriff's Department, as authorized by this Chapter, other State or local law enforcement purpose, and service personnel or contractors. b) Premises must keep a current list of all authorized employees and service personnel who have access to the surveillance system and/or surveillance system room on the Premises. Premises must keep a surveillance equipment activity log on the Premises to record all service activity, including the identity of all individuals performing services on system service, the service date and time, and the reason for such service to the surveillance system.
c) Off-site monitoring and video recording storage of the Premises by an independent third party may be authorized so long as standards exercised at the remote location meets or exceeds all of the standards applicable to onsite monitoring.

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d) Each Premises located in a common or shred building must have a separate surveillance room/area that is dedicated to that specific Premises. The facility that does not house the central surveillance room is required to have a review station, printer, and map of camera placement on the Premises. All minimum requirements for equipment and security standards as set forth in this Section apply to such review station. (8) Video Recording Retention Requirements.
a) All camera views of all recorded areas must be continuously recorded 24 hours a day.
b) All surveillance recordings must be kept for a minimum of 30 days and be in a format that can be easily accessed for viewing. Video recordings must be archived in a format that ensures authentication of the recording as legitimately-capture video and guarantees that no alteration of the recorded image has taken place.
c) The surveillance system or equipment must have the capabilities to produce a color still photograph form any camera image, live, or recorded, of the Premises.
d) The date and time must be embedded on all surveillance recordings without significantly obscuring the picture. e) Time is to be measured in accordance with the official United States time established by the National Institute of Standards and Technology and the U.S. Naval Observatory at www.time.gov. f) After the 30-day surveillance retention schedule has lapsed, surveillance video recordings must be erased or destroyed prior to being discarded or disposed of for any other purpose. Surveillance video recordings shall not be destroyed if the Cannabis Permittee knows or should have known of a pending criminal, civil, or administrative investigation or any other proceeding sfor which the recording may contain relevant information.
(9) Other Records. All records applicable to the surveillance system and cannabis tracking system shall be maintained on the Premises. At a minimum, Premises shall maintain a map of the camera locations, directions of coverage, camera numbers, surveillance equipment maintenance activity log, user authorization list and operating instructions for the surveillance equipment.
(s) Audit. Each Cannabis Permittee 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 assets and liabilities. On no less than an annual basis, or at any time upon reasonable request of the City, each Cannabis Permittee shall file a sworn statement detailing business activity during the previous 12-month period (or shorter period based upon the timing of the request). The statement shall include gross sales for each month and all

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applicable taxes and fees paid or due to be paid. On an annual basis, each owner and operator shall submit to the City a financial audit of the business's operations conducted by an independent certified public accountant. Each Cannabis Permittee shall be subject to a regulatory compliance review and financial audit as determined by the City Manager or designee. (t) Inspections. The City Manager, or designee, or Los Angeles County Sheriff's Department shall have the right to enter all Premises from time to time unannounced during a Cannabis Permittee's hours of operation for the purpose of making reasonable inspections to observe and enforce compliance with this Chapter, to inspect and copy records required to be maintained under this Chapter, or to inspect, view, and copy recordings made by security cameras, all without requirement for a search warrant, subpoena, or court order, and subject to appropriate fees, as specified in the Development Agreement, or adopted by the City.

5.20.060 Application and fee requirements.
(a) All applicants wishing to obtain a Cannabis Permit from the City shall file an application with the City upon a form approved by the City Manager and shall pay a permit application fee as established by the City. The fee may vary depending on the type of Cannabis Permit. The City Manager or designee may require and conduct background checks, as necessary, to process and evaluate Cannabis Permit applications.
(b) Prior to operating in the City, each Cannabis Permittee shall timely and fully pay all fees associated with the establishment of Commercial Cannabis Activity.

The fees shall be as set forth in the schedule and fees and charges established by the City Council, including, but not limited to, the following:
(1) Application fee for accepting a registration application, due and payable in full at the time an application is submitted;
(2) Processing fee for the cost to the City of processing an application and reviewing, investigating, and scoring each application in accordance with any evaluation system to determine eligibility for issuance of a Cannabis Permit, due and payable in full at the time a registration application is submitted;
(3) Permit issuance fee for the cost to the City of preparing a Development Agreement, Planning Commission and City Council review of the Development Agreement and the Cannabis Permit, and preparation and issuance of the Cannabis Permit, as authorized by the Cannabis Permit; (4) Amended registration fee for the cost to the City of reviewing amendments or changes to the registration form previously filed on behalf of an Applicant, due and payable in full at the time amendments or changes to any Cannabis Permit form is submitted to the City;

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(5) Permit renewal fee for the cost ot the City of processing an application to renew a Cannabis Permit, due and payable in full at the time application is made to renew a Cannabis Permit; and
(6) Any fees set forth in the applicable Development Agreement.

5.20.070 Permit conditions.
(a) A Cannabis Permit application may be denied and not awarded by the City if:
(1) The Applicant or the Applicant's agent(s) has made one or more false or misleading statements or omissions in the application or during the application process.
(2) The proposed Premises or Commercial Cannabis Activity at the Premises is not allowed by State Law or City law.
(3) The Applicant is not a legal representative of the proposed Cannabis Permittee.
(4) The Applicant or any of its officers, directors, owners, managers, or employees is under 21 years of age.
(5) The Applicant's facility or its location is in violation of any building, zoning, health, safety, or other provision of this Chapter or of any State or local law that substantially affects the public health, welfare, safety, or morals, or the facility or its location is not permitted in the proposed area, or the issuing or continuation of a Cannabis Permit would be contrary ro the public health, welfare, safety, or morals.
(6) The Applicant or any of its officers, directors, owners, managers, or employees has been sanctioned by the City, State, or any county for unauthorized cannabis activities or has had a registration revoked under this Chapter in the previous 3 years.
(7) The Applicant or the Applicant's agent(s) have engaged in unlawful, fraudulent, unfair, or deceptive business acts or practices. (8) The Applicant has not been or is not in good standing with the City related to other or previous business activities operated in the City. (9) The Applicant has not satisfied all requirement of this Chapter. (10) For Good Cause, as defined in this Chapter.
(b) A Cannabis Permit shall be awarded by the City to Applicants in accordance with the process established by the City Manager.
(c) Before a Cannabis Permit can be issued to an applicant, a Cannabis Permit fee must be paid to offset all related costs to the City, and the proposed Premises must pass all applicable inspections.

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