Cudahy City Council
June 4, 2024

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cure the default and comply with payment obligations, however the default was not timely cured.

8. On December 7, 2022, the City Manager offered a Cannabis Deferment and Payment Program (Attachment F – pgs. 186-187) to assist cannabis Operators with accumulated Community Benefits, Cost Recovery and Non-Operating Fees by deferring and providing additional time for payment without penalty. Under the program:
a. Unpaid Non-Operating Fees would be deferred (without penalty) until six (6) months after the Operator was issued a Certificate of Occupancy, and then repay already accumulated Non-Operating Fees within twelve (12) months; and b. Operators would continue to be responsible for the timely payment of Community Benefit Fees and Cost Recovery Fees, as they accumulated; and c. Previously incurred Community Benefit Fees and Cost Recovery Fees would be subject to a payment plan and require timely payments.

All cannabis operators that were interested in participating in the program were given no later than January 31, 2023, to execute an agreement to participate in the Deferment and Payment Program. The City received interest from the Operator and due to the good faith negotiations between both parties, the City extended the opportunity for the Operator to participate.

9. On February 1, 2023, the City’s Finance Department presented the Operator with a Letter Agreement agreeing to the Deferment and Payment Program to forbear the outstanding payments due (“Letter Agreement”) (Attachment F. - pgs. 189-196). The Operator accepted the proposed terms and executed the Letter Agreement on February 2, 2023, and agreed to commence payments on March 2, 2023. The Operator also acknowledged and agreed “that the past due amounts stated [in the Letter Agreement] are true and correct and are in fact presently due and owing. The parties agree that the Operator is in ‘default status’ on its obligations under its Development Agreement with the City.”

10. Between April and June 2023, the City provided the Operator with three Notices of Delinquency (Attachment F – pgs. 198-214) and provided an opportunity for the Operator to cure outstanding payments due. However, the default on the Letter Agreement was not timely cured and therefore was terminated and no longer in full force and effect as of June 16, 2023. Accordingly, the total of all past due amounts at the time the Letter Agreement was terminated and an amount of One hundred thirty-one thousand eight hundred fifty-four dollars and twenty-eight cents ($131,854.28) was due and owed.

11. On June 23, 2023, the City sent a Final Demand Letter (Attachment E) demanding the Operator to respond to the following demands: 1) Proof of revival of the LLC’s entity status with the State; 2) Forwarding payment for all past due amounts; and 3) Contact the City to revise the CCP’s Schedule of Performance and for further information to become compliant with the DA and CCP. The Operator did not respond in a timely manner and has failed to make any attempt to cure the defaults.

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12. On August 9, 2023, the City issued an Escrow Account Letter (Attachment F – pgs. 218- 219) requiring all cannabis operators to open an escrow account by September 15, 2023, to ensure payment of Cost Recovery Fees. As of the writing of this report, the Operator has not opened an escrow account nor made any payments into the account.

13. On October 12, 2023, the City issued the Operator a Notice of Review Hearing (Attachment F – pgs. 376-377) with the hearing date, time, and place. The Notice of Review Hearing requested the Operator to contact staff to confirm appearance at the Review Hearing and advised the Operator to respond within ten days of the date of the letter to confirm appearance Review Hearing or otherwise waive the right to present evidence at the hearing (Attachment G). The notice also informed the Operator that it was responsible for the cost of the Review Hearing and requested the Operator to deliver a cashier’s check three days prior to the scheduled hearing or would otherwise constitute further default on the DA. The City did not receive a timely response from the Operator nor payment for the cost of the Review Hearing.

14. On October 24, 2023, the City issued a letter (Attachment F – pgs. 221-222) updating the Operator on their payment and fees related to the DA by correcting the amount due to an error in the total amount billed. The City provided a credit in the amount of Fourteen thousand nine hundred fifty dollars and fifty cents ($14,950.50).

15. As of October 24, 2023, Operator owed the City One hundred twenty-six thousand two hundred eighty-two dollars and sixty-nine cents ($126,282.69). Operator has continued to fail to make payments and as of the writing of this report owes One hundred forty-six thousand two hundred forty-seven dollars and seventy cents ($146,247.70). Community Benefit Fees, Cost-Recovery and Non-Operating Fees plus penalties continue to accrue and the total amount due may be higher as of the date of this staff report.

16. On November 2, 2023, the City sent a follow up notice to the Notice of Review to the Operator confirming that it had not received any communication from the Operator confirming attendance at the Review Hearing and that the ability to present before the hearing officer had been waived (Attachment G). The City did not receive a timely response from the Operator.

17. On November 14, 2023, the duly appointed third-party Hearing Officer, Steve Napolitano, conducted a Review Hearing as authorized under the CMC Section 5.20.080(7) and Article 19 of the DA No. 18-020C to hear and consider information and evidence submitted by City staff through an Administrative Record (Attachment F) and the Operator. No representation from the Operator was present at the hearing nor did the Operator submit any information or evidence for consideration.

18. On January 14, 2024, the Hearing Officer issued a written decision and order (Attachment H) finding evidence showing the Operator, despite considerable notice and opportunities to cure outstanding issues, has breached the terms and conditions of the DA and CCP and

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recommends the Planning Commission and City Council repeal Ordinance No. 680 terminating DA No. 18-020C and revoke the related interest in CCP No. 18-0019.

19. Approximately two months after the Review Hearing, on January 6, 2024, an attorney who appears to represent the Operator submitted a letter to the City alleging the City was in default with the terms of DA No. 18-020C (“Notice to Cure Breach”) (Attachment I).

The Notice to Cure Breach alleged the City had breached DA No. 18-020C by (a) failing to waive fees pursuant to the Article 23.i of the DA (Force Majeure); (b) failing to “expedite” approvals and by seeking fees for delays allegedly caused by the City; (c) requiring the Operator to pay Non-Operating Fees as required by the DA; (d) implementing fees that violate The Mitigation Fee Act (Govt Code § 65864-65869.5); and (e) failing to conduct an annual hearing to determine compliance with the DA No. 18-020C. The Notice to Cure Breach also alleged the City was liable under the Civil RICO statute. The Operator demanded that the City (i) waive all accumulated Non-Operating Fees for a period of 15 months; (ii) “waive all fees during any delays caused by the City[;]” (iii) “waive all fees when the City was in default under the agreements[;]” (iv) issue certificate of occupancy to the Operator; (v) halt the hearing process before the third-party Hearing Officer; and (vi) expedite the processing of all permit applications.

20. On January 8, 2024, the City received a request to submit the Notice to Cure Breach into the administrative record for the hearing that took place on November 14, 2023 (Attachment J).

21. On March 18, 2024, pursuant to State law and the CMC, the Planning Commission held a duly noticed public hearing to consider the Hearing Officer’s recommendation to repeal Ordinance No. 680 and terminate DA No. 18-020C. Hours before the hearing, the attorney representing the Operator requested that a comment letter be submitted into the record for the for the May 18 Planning Commission hearing (Attachment K).2 The Planning Commission considered all public comments received before and during the public hearing, the presentation by City staff, the relevant staff report, administrative record, and all other pertinent documents. No representation from the Operator was present at the hearing. After closing public hearing, the Planning Commission adopted Resolution No. 2024-03 (Attachment L), recommending the City Council repeal Ordinance No. 680 and terminate related DA No. 18-020C.

DISCUSSION/ANALYSIS
During a review of the Operator’s compliance with the Development Agreement, the burden is upon the Operator to demonstrate good faith compliance with the terms of the Development Agreement under Article 19. Pursuant to Government Code Section 65868.1 and Articles 19 and 19.d of the Development Agreement, if the City Council determines, based on substantial 2 The City assumes that the request to add the letter to the May 18 Planning Commission hearing was a typo and was intended to be submitted into the record for the March 18, 2024 Planning Commission hearing. The City accepted the letter as a public comment into the record. All Planning Commissioners and City Council members were also addressed in the communication.

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evidence, that the Operator has not complied in good faith with the terms of the conditions of the Development Agreement, the City Council may terminate the Development Agreement, or alternatively, may choose to modify and impose conditions reasonably necessary to protect the interests of the City. Conversely, if the Operator is found to be in compliance with the Development Agreement, the Owner may request the City to issue a Certificate of Compliance pursuant to Article 19.e. Any decision to terminate a development agreement must be reviewed by the Planning Commission prior to review by the City Council. Gov. Code § 65867.

Under Article 19.d, the decision to terminate a development agreement by the City Council is final.

As it relates to the CCP, pursuant to the CMC Sections 5.20.080(6) and 5.20.080(7), any material violations of Chapter 5.20, any other relevant city law or state law, condition of approval, or any other required agreement or covenant, such as a development agreement, by a cannabis permittee, or cannabis permittee’s agent, is ground for suspending or revoking the relevant cannabis permit. The decision to suspend or revoke a commercial cannabis permit is with the City Manager or his designee. Furthermore, pursuant to CMC Section 5.20.080, any decision regarding the suspension or revocation may be appealed to the City Council.

The City has appointed a third-party hearing officer to conduct a review of the Operator’s compliance with CCP No. 18-0019 and DA No. 18-020C. The findings and determinations made by the Hearing Officer inform any subsequent action to terminate or modify the Development Agreement and suspension or revocation of the CCP. As stated above, and further described in Attachment H, the Hearing Officer issued a written decision making several findings of fact and conclusions and determined that Daniel and Goliath, LLC breached the terms and conditions pursuant to DA No. 18-020C and CCP No. 18-0019, based on a preponderance of the evidence, in the following material aspects:

1. Violation #1: Breach of Payment Obligations. Pursuant to the terms of the DA, the Operator is responsible for timely payment of Community Benefit Fees (Article 5.b); Cost Recovery Fees (Article 8); and Operating Fees (Article 7.c). The Operator is also obligated to pay the fees due under the DA pursuant to CCP Condition of Approval No. 45; and timely payment for Non-Operating Fees pursuant to Condition of Approval No. 13 (Attachment F – pgs. 54-69). Conditions of Approval 1(a) and 1(b) require the Operator to pay all City-issued invoices within 30 days of receipt. Pursuant to the terms of the DA, Operators that are more than 30 days past due on operating fees are subject to a penalty equal to twenty-five percent (25%). In addition, a ten percent (10%) penalty shall be added to the first day of each calendar month following the imposition of the initial 25% penalty, if the fee remains unpaid in whole or in part, up to a maximum of the one hundred percent (100%) of the payable fee. The City executed a Letter Agreement to grant the Operator relief in the form of deferred payment obligations of the Operating Fees and a payment schedule for past-due Community Benefit Fees and Cost Recovery Fees; and an obligation to remain current on recurring fees under the DA. The Operator did not make any timely payments in the three months that followed the execution of the Letter Agreement between March to May 2023.

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As of October 24, 2023, the City reported that the Operator is past due in the amount of One hundred twenty-six thousand two hundred eighty-two dollars and sixty-nine cents ($126,282.69) and past-due payments continue to accumulate, including late payment penalties. As of the writing of this report, the Operator now owes the City $146,247.70.

Table 1. Summary of Past and Current Amounts Due as of May 14, 2024 Type ment Amount Due
munity Benefit Program 381.27
Recovery Fees 373.52
-Operating Fees 105.04
alties (Late Payments) 87.87
AL 6,247.70
Based on the evidence submitted by the City, the Hearing Officer found that “based on the unrefuted evidence presented by the City...a preponderance of the evidence shows that [Operator] breached multiple conditions of the DA and CCP. Despite multiple attempts and notices by the City to gain compliance, the evidence shows that [Operator] failed to comply with their payment obligations, which constitutes the necessary grounds for termination of the DA and revocation of the CCP under the CMC” (Attachment H). The Hearing Officer’s determination was ratified by the Planning Commission through the adoption of Resolution No. 2024-04 which recommends that the City Council find that Operator is in default of the terms set forth in DA No. 18-016C and repeal Ordinance No. 678 and terminate the related DA.

2. Violation #2: Failure to comply with state law - Suspended Status with the Secretary of State (SOS) and Franchise Tax Board (FTB). Pursuant to Article 4.a of the DA, the Operator must be a lawful entity capable of operating in accordance with state laws. A Certificate of Status dated October 31, 2023, states: “The above-referenced entity’s powers, rights, and privileges are suspended in California. As of the date of the Review Hearing on November 14, 2023, the Operator’s entity status was “FTB/SOS Suspended.” The Hearing Officer further determined “[a]ccording to the California Franchise Tax Board website, a suspended entity cannot do business in California until they cure the reason for their suspension, which is supported by Rev. and Tax Code Sec. 23303 and case law cited by the City: Casiopea Bovet, LLC v. Chiang (2017) 12 Cal.App.5th 656, 662; City of San Diego v. San Diegan for Open Government (2016) 3 Cal.App.5th 568, 577”. Despite notice of default and opportunity to cure, the Operator’s status remained “suspended” at the time of the Review Hearing. Non-compliance with state law due to the Operator's legal status as a California limited liability is suspended by the State’s Secretary of State, as such, the Operator is unable to operate in the State of California.

3. Violation #3: Failure to Implement the Project Under Prescribed Time Limits. CCP Condition of Approval No. 51.A set a 90-day time frame in which the Operator must complete construction of Phase I of the Project. The 90-day period began following the 15-day appeal period from the date of the CCP approval, or June 20, 2018, meaning the

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Operator needed to complete Phase I by September 18, 2018. CCP Condition of Approval

51.A.iii sets a 180-day time limitation from the effective date of the CCP to complete all tenant improvements, construction, and obtain a certificate of occupancy from the Building Department, or December 17, 2018. The Operator was given a notice of default and opportunity to cure pursuant to the City’s Final Demand Letter to the Operator (Attachment F – pgs. 214-216), with no response from the Operator. The Operator has failed to provide any evidence that it has obtained a Zoning Clearance, completed construction of Phase I, or completed the tenant improvements, obtained a certificate of occupancy, or otherwise complete Phase II within the prescribed time periods. Nor does the City have any record of any request by the Operator for an extension of time to the City Manager and there is no evidence to demonstrate the Operator has made substantial progress, such as submitting an application for a Zoning Clearance or building permit plan check.

Allegations of Default on Behalf of the City:

As an initial matter, the Notice to Cure Breach offered as evidence to demonstrate compliance with the DA and CCP was untimely submitted, nor does it actually offer evidence of Operator’s compliance with the CCP and DA. The request was made nearly two months after the Review Hearing that took place on November 14, 2023, after providing the Operator with multiple notices, and need not be considered. However, the City shall respond to the allegations made by the Operator’s representative which are largely unsupported by the evidence, the law, or both.

1. Operator is not Excused for Performance Pursuant to Force Majeure. The DA provides a Force Majeure clause at Article 23.i, which applies to unforeseen events that include “war, insurrection, acts of God, local, state or national emergencies, strikes and other labor difficulties beyond the party’s control, or any default by the City hereunder, which Force Majeure event substantially interferes with the development, construction or operation of the Project” (emphasis added).

Operator has failed to make a substantiated showing that the circumstances of Force Majeure were present during the time of default. The City provided the Operator with the first notice that it was in breach of the DA and CCP, approximately five months prior to the Governor’s issuance of Executive Order N-22-20 (Attachment M). The Operator was provided 30 days to cure the default pursuant to Article 14.a of the DA (Attachment F – pgs. 77-120). During this time, Operator did not cure the default, nor take diligent efforts to cure the default. City issued a subsequent notice to Operator on May 4, 2021 (Attachment F – pgs. 180-181) – during the unsupported allegation of the City’s closure.

Further, City Hall was not closed for a 15-month period. During the height of the pandemic, City Hall’s physical premises were closed to the public, however, the City continued to conduct business, and process requests, including applications for building permits which could be dropped off at the front of City Hall. Additionally, both commercial cannabis activities, inclusive of cannabis manufacturing, and commercial construction were permitted by the authority granted to the State Public Health Officer

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pursuant to Executive Order N-33-20 (Attachment M). The State permitted cannabis activities and commercial construction to continue through the height of the pandemic and operators were able to continue processing applications, such as building permits, during this time.

The Notice to Cure Breach alleges that the Operator has invested $10 million from the onset of the COVID-19 pandemic to present day but has not provided any evidence to substantiate this point. However, if the Operator was prohibited from engaging in activities that would have allowed them to pursue the operation of a cannabis business, it is unclear how the Operator could have been prohibited from investing $10 million into the Project and been prohibited from moving forward with implementation of the Project at the same time.

Even assuming arguendo that there was an event of Force Majeure, Article 23.i3 does not excuse performance, but only provides the Owner with an extension of time. There is no excusal of performance under Force Majeure nor does Article 23.i grant the City the ability to waive fees. Any allegation that City “agreed” not to charge fees during the COVID-19 pandemic or other delays are unsupported by any evidence in the administrative record.

The Operator acknowledged all fees, inclusive of Cost-Recovery Fees, Community Benefit Fees, and Non-Operating Fees accrued upon signing a Letter Agreement with the City on February 2, 2023, in which the Operator acknowledged and agreed “that the past due amounts stated are true and correct and are in fact presently due and owing. The parties agree that the Operator is in ‘default status’ on its obligations under the Development Agreement with the City…[and would] remain in ‘default status’ on its Development Agreement until all past due fees set forth in [the] Letter Agreement have been paid and Operator is in full compliance with all terms of its Development Agreement.” (Attachment F – pgs. 188-379)

2. Operator Has Failed to Demonstrate How the City has Failed to Expedite Approvals. The Notice to Cure Breach asserts the City has delayed in approving certain plans, however the City has no record of the Operators attempt to apply for and obtain a Zoning Clearance or implement the multiple phases of the Project as described in Violation #3, above.

Operator failed to offer any evidence that it complied with the timelines and requirements set forth in the CCP and DA. Further, as stated above, the Operator has been in default since 2019. Despite this, the City provided a pathway to achieve compliance with multiple defaults, including the schedule of performance, which the Operator did not timely attempt to cure any default.

Any allegation by the Operator that the City’s duty to review building plans was limited by the annual review process under Article 19 of the Development Agreement is unfounded and expressly contradicted in the DA terms. It’s unclear why the Operator is under the 3 In full, Article 23.i states “If delays are caused by unforeseen events beyond the control of Owner, such delays will entitle Owner to an extension of time as provided in this section. Such unforeseen events (‘Force Majeure’) shall mean war, insurrection, acts of God, local, state or national emergencies, strikes and other labor difficulties beyond the party’s control, or any default by the City hereunder, which Force Majeure event substantially interferes with the development, construction or operation of the Project.”

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impression that its Project would be constructed and operated without any review of permit applications, etc., other than the reviews contemplated under Article 19 of the Development Agreement and is contrary to law. CMC Section 15.04.010 requires all development projects to comply with the Los Angeles Building Code requirements. Title 15 of the CMC also requires projects to comply with Los Angeles County’s Electrical Code requirements (Chapter 15.08), Plumbing Code requirements (Chapter 15.12), and Mechanical Code (Chapter 15.16). Providing comments to ensure that a project applicant complies with such state and local requirements does not constitute a delay on the City’s part, but enforcement of the Operator’s requirement to comply with state, local and federal regulations. At no time does the Notice of Default allege the City refused to accept or review plans or other submissions by the Operator. If anything, this assertion cuts against Operator’s own argument and would result in further delays for the Operator to implement the Project.

3. There is No Evidence in the Administrative Record to Support a Finding that the City Did Not Intend for the Non-Operating Fees Not to Apply. To support the notion that NonOperating Fees would not apply the Operator’s representative submitted statements by a former councilmember who now acts as a consultant to many of the defaulting operators and other persons affiliated with the Operator.4 Any assertion that Non-Operating Fees were not intended to apply are directly contradicted by language in Article 7.c(1) which states the Operator shall be charged a “monthly operating fee of [.42 x total square foot of the ‘Premises’] until Owner is operating on the Premises and selling product under its City Regulatory Permit and State Regulatory Permit. Once Owner is operational and generating revenue, the monthly operating fee is [.42 x total square foot of ‘Production Space’] or a monthly operating fee based on gross receipts.” DA Article 7.c(i) (emphasis added). The Development Agreement further provides that “Operating Fees shall begin to accrue ninety (90) days after the end of the month of the Effective Date of the Agreement.” Id. The language provided in the Development Agreement plainly states a formula that applies for Operating Fees for when the Operator is operating based on square footage or gross receipts or a formula based on square footage when the Operator is not operating or in “non-operation.” To argue that that there is no such thing as Non-Operating Fees merely because those exact words is a matter of semantics. Further, there is no language in the DA that discusses or implies the intent for such fees to apply only to operators who “squat” on licenses as represented in a declaration submitted by the consultant.

Failure to pay such fees are out of compliance with Conditions of Approval Nos. 1(a) and (b), requiring payment of all City-issued invoices within thirty days of receipt. (Attachment Fpgs. 54-69). Non-payment of Non-Operating Fees is also in violation of Conditions of Approval 13, 21, 37, and 45.
4The Operator’s attorney offered a statement by Daffodil Tyminski that was submitted to the City pursuant to Evidence Code Section 1152 and 1154, which protects the confidentiality of statements made during settlement or negotiation discussions. Based on this submitted statement it appears that the Operator has waived that privilege afforded by those previous statements.

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4. The Assertion that Non-Operating Fees are Illegal Impact Fees is Not Supported by the Law. Non-Operating Fees are a part of the Development Agreement entered into between the City and the Operator and was enacted via ordinance pursuant to Development Agreement Law (Govt. Code §§ 65864-65869.5). Fees imposed by development agreements are expressly exempt from the Mitigation Fee Act. (Govt. Code § 66000(b) (“’Fee’ means a monetary exaction other than a tax or special assessment…but does not include…fees collected under development agreements adopted pursuant to Article 2.5 (commencing with Section 65864) of Chapter 4…”).) Therefore, the fees agreed to by the Operator through the execution of the DA and subsequent Letter Agreement are not subject to the Mitigation Fee Act.

Even if the Mitigation Fee Act was applicable to the past due fees, to properly contest, the Non-Operating Fees, the Operator would have been required to tender the required payment in full and serve written notice to the City that informs the City that payment has been tendered under protest accompanied by a statement of facts. (Govt. Code § 66020(a).) However, such protests must be filed at the time of the approval of the development or within ninety (90) days of the imposition of fees. The City and Operator entered into the Development Agreement on June 5, 2018. The 90-day statute of limitations to protest such fees ended on September 3, 2023, and Operator has not tendered payment in full as required by Government Code Section 66020(a). Therefore, any opportunity to protest under the Mitigation Fee Act has long since passed.” AR pp. 9-10.

Further, as stated above, Operator does not contest that it previously acknowledged that all of the fees due, inclusive of Non-Operating Fees, were presently due and owing at the time it signed a Letter Agreement.

5. There is No Requirement to Perform an Annual Review. Operator points to CMC Section

20.84.600 and Government Code Section 65865.1 to assert the City is in breach of the Development Agreement by failing to conduct a periodic review of the Operator’s compliance with the Development Agreement. However, Operator’s assertion is directly contradicted by the express language in the Development Agreement. Article 19.f of the Development Agreement expressly provides that “City’s failure to conduct a periodic review of this Agreement shall not constitute a breach of this Agreement.” Nor does the City have any record of the Operator requesting an annual review to demonstrate compliance with the DA or CCP.

6. The City Has Not Breached the Ability for the City Council to Make a Final Determination on the Operator’s Compliance with the Development Agreement and Whether to Modify or Terminate the DA, or Otherwise Find the Operator in Compliance. The plain language in Article 19.d of the Development Agreement provides that “[a]t the time and place set for the Review Hearing, Owner shall be given an opportunity to be heard. If City Council finds, based upon substantial evidence, that Owner has not complied in good faith with the terms or conditions of this Agreement, City Council may terminate this Agreement

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notwithstanding any other provision of this Agreement to the contrary, or modify this Agreement and impose such conditions as are reasonably necessary to protect the interests of the City.” The City has retained a third-party hearing officer for the purpose of hearing the evidence and making a recommendation to the City Manager, Planning Commission and City Council to “adopt an ordinance repealing Ordinance No. 680 and terminate Development Agreement No. 18-020C and revoke Operator’s interest under CCP18-0019.” (Attachment F – pgs. 2-11). The Operator has been provided an opportunity to be heard at the administrative hearing conducted by a third-party hearing officer, whose findings and determinations were sent to the Planning Commission and now City Council. No one has denied the Operator the opportunity to be “heard” before the City Council, but the Operator ignores the procedural requirements that require the repeal of an ordinance to terminate a development agreement, which includes a process by which the Operator may address the Planning Commission as well as the City Council.

Further, there is nothing in Article 19.d or the CMC that prohibits the City from appointing a third-party hearing officer from conducting the initial hearing and forwarding findings to City decisionmakers for the purpose of determining whether to take any action to modify or terminate the Development Agreement or Commercial Cannabis Permitso long as the City Council’s determination and actions are supported by substantial evidence. All such findings and recommendations made by the hearing officer shall be forwarded to the appropriate decisionmakers for final disposition. The City has provided Operator with more than 30 days’ notice of the November 14, 2023 hearing, requesting Operator to provide evidence of compliance at least 10 days prior to the hearing (Attachment F – pgs. 377-379). The Operator provided no response. The City sent a follow up communication informing Operator that it did not submit any documentation and has waived its rights at the Review Hearing (Attachment G). Operator instead submitted a Notice of Default approximately two months afterthe Review Hearing alleging the City is in default of DA18- 020C. Pursuant to Article 14.d of DA18-020C, Operator’s remedies for a default are limited to a termination of the Development Agreement.

CMC Section 5.20.080(6)(a) permits the City Manager to revoke an operator’s interest in a CCP upon a determination “that the cannabis permittee has failed to comply with [Chapter 5.20], any condition of approval, or any agreement or covenant as required pursuant to this chapter.” The City Manager’s decision to revoke the operator’s interest in a CCP may be appealed to a third-party hearing officer or to the City Council. CMC §

5.20.080(7). As determined by the Hearing Officer, there is a preponderance of evidence to support a finding that the Operator is out of compliance with the DA and CCP.

7. Operator’s Assertion for Damages under the Development Agreement are Improper.

Even if the City were in default of the DA, which it is not, the Operator’s remedies are limited under the DA. Pursuant to Articles 14.a and 14.b of the DA, the Operator may only seek monetary damages if there is a showing of “bad faith intentional acts [or] the grossly negligent or malicious acts of City and its officials, officers, agents and employees.” Pursuant to Article 14.d of the DA, even if the City were in default, which it is not, the

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Operator’s remedies would otherwise be limited to a cancellation of the Development Agreement after providing a 60-day notice of default. Operator’s notice did not provide 60-day notice, but 30-day notice.

Based on the evidence provided by the City, which was unrefuted, the Hearing Officer found that the Operator “has breached the terms and conditions of DA 18-020C and [Operator’s] portion of its CCP and recommends to the Planning Commission and/or City Council repeal Ordinance No. 680 and terminate DA [No.] 18-020C...” (Attachment H).

Pursuant to CMC Section 20.84.070, DA 18-020C and CCP No. 18-0019 were processed concurrently and approved collectively under Ordinance No. 680. To repeal Ordinance No. 680, the repeal shall occur in the same manner as the original proceedings and pursuant to CMC Section 20.84.500.

PUBLIC NOTICE AND COMMENTS

This item was noticed in accordance with the City’s public notice requirements, which involved mailed notices to property owners and tenants within 300 feet of the Site and publication in the local paper (Attachment N). As of the writing of this report, City staff have not received any public comments.

ENVIRONMENTAL ANALYSIS

The action(s) have been assessed in accordance with the California Environmental Quality Act (“CEQA”) (Pub. Res. Code § 21000 et seq.), CEQA Guidelines (Cal, Code Regs., tit. 14, § 15000 et seq.) and the environmental regulations of the City. The Project is categorically exempt from the requirements of CEQA pursuant to CEQA Guidelines Section 15321 - Class 21 (Enforcement Actions by Regulatory Agencies). This exemption is applicable to “[a]ctions by regulatory agencies to enforce or revoke a lease, permit, license, certificate, or other entitlement for use issues, adopted, or prescribed by the regulatory agency or enforcement or a law, general rule, standard, or objective, administered or adopted by the regulatory agency.” If the City Council adopts Ordinance No. 749 to repeal Ordinance No. 680 and terminate DA No. 2018-020C, it would be an enforcement action. Therefore, the action(s) are categorically exempt from the provisions of CEQA.

CONCLUSION
As discussed above and based on the preponderance of unrefuted evidence offered at the administrative review hearing; the public hearing by the Planning Commission finding that the Operator has failed to comply with the terms and conditions of its DA, despite being provided with ample notice and several opportunities to achieve compliance, thereby recommending to the City Council that it repeal Ordinance No. 680 and DA No. 18-020C through the adoption of Planning Commission Resolution No. 2024-03. As stated above, the Operator has failed to comply with their obligations under the DA, despite being provided with ample notice and several opportunities to achieve compliance. Therefore, City staff recommends the City Council adopt Ordinance No. 749 repealing Ordinance No. 680 terminating DA18-021C.

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ATTACHMENT(S)
A. Draft City Council Ordinance No. 749
B. Ordinance No. 673
C. Resolution No. 18-17
D. Ordinance No. 680
E. Final Demand Letter dated June 23, 2023
F. Administrative Record for Daniel and Goliath, LLC
G. Review Hearing Waiver dated November 2, 2023
H. Decision and Order for Daniel and Goliath, LLC
I. S. Rucci Email dated January 6, 2024
J. S. Rucci Email dated January 8, 2024
K. S. Rucci Planning Commission Comment Letter dated March 18, 2024 L. Planning Commission Resolution No. 2024-03
M. Executive Order No. N-22-20
N. Newspaper Publication

ORDINANCE NO. 749

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF CUDAHY REPEALING ORDINANCE NO. 680 AND

TERMINATING RELATED DEVELOPMENT AGREEMENT
NO. 18-020C BETWEEN DANIEL & GOLIATH, LLC AND
THE CITY OF CUDAHY.

WHEREAS, the City of Cudahy (the “City”) is a general law city, incorporated under the laws of the State of California; and
WHEREAS, pursuant to its police power, the City may enact and enforce laws within its boundaries that promote the public health, safety, or general welfare of the community, and are not in conflict with general laws; and
WHEREAS, to strengthen the public planning process, encourage private participation in comprehensive planning and reduce the economic risk of development, the California State Legislature adopted Section 65864 et seq. of the California Government Code (the “Development Agreement Statute"); and
WHEREAS, the Development Agreement Statute authorizes the City to enter into a development agreement with a person having legal or equitable interest in real property for the development of such property in order to establish certain development rights in exchange for public benefits; and
WHEREAS, in accordance with the Development Agreement Statute, the City Council adopted Ordinance No. 690 in 2018 establishing the procedures and requirements for the consideration of development agreement with the City and are contained within Cudahy Municipal Code (“CMC”) Sections 20.84.530 through

20.84.640; and
WHEREAS, on September 11, 2017, the City Council adopted Ordinance No. 673 establishing regulations for commercial cannabis activities, in a specified Overlay Zone through an acquisition of a Commercial Cannabis Permit and execution of a development agreement with the City; and
WHEREAS, on April 30, 2018, the City Planning Commission (“Planning Commission”) conducted a properly noticed public hearing to consider an application by Daniel & Goliath, LLC (“Operator”) for approval of a Commercial Cannabis Permit by and between the City, and to allow non-store front commercial cannabis manufacturing activities at 4916 Cecilia Street, Unit F (“Site”); and WHEREAS, at this hearing, the Planning Commission heard and considered verbal and written testimony and evidence, and recommended approval of the Commercial Cannabis Permit subject to Operator’s execution of a development agreement with the City; and
WHEREAS, on May 15, 2018, the City Council conducted a properly noticed public Attachment APage 2906 of 4584
Ordinance No. 749

hearing to consider the issuance of the Commercial Cannabis Permit (“CCP”) No. 18-0019 and Development Agreement (“DA”) No. 18-020C at which the City Council heard and considered both written and oral testimony and evidence, and subsequently approved and adopted Resolution No. 18-17 for CCP No. 18-0019; and
WHEREAS, at the same hearing, the City Council considered and approved CCP No. 18-0019, it also conducted the first reading of Ordinance No. 680 which authorized the execution of DA No. 18-020C between the Operator and the City; and WHEREAS, on June 5, 2018, the City Council adopted, on second reading, Ordinance No. 680 approving DA No. 18-020C and authorizing the Mayor to execute the DA on behalf of the City; and
WHEREAS, the effective date of the Development Agreement is July 5, 2018 (“Effective Date”); and
WHEREAS, upon the Effective Date of Ordinance No. 680, the Operator was granted the permission to conduct commercial cannabis retail delivery activities provided, among other things, it apply for and receive a Zoning Clearance pursuant to the CMC’s requirements, receive State licensing approval from the Department of Cannabis Control, and comply with the terms outlined in the DA and conditions of approval under the CCP inclusive of the timely payment of Community Benefit Fees, Cost Recovery Fees and Operating/Non-Operating Fees and applicable penalties and interest; and WHEREAS, the Operator has not complied with the terms and conditions of the DA and CCP despite multiple notices and opportunities to cure, and remains in material breach of thereof; and
WHEREAS, on October 12, 2023, the City provided notice to the Operator that it would be conducting a Review Hearing (“Review Hearing”) under Article 19 of DA No. 18- 020C which informed the Operator of the burden to prove compliance with the DA and CCP; and
WHEREAS, the Operator never provided a timely response to the City’s notice for a Review Hearing; and
WHEREAS, on November 2, 2023, the City sent a follow up notice informing the Operator it had not received any response to the Review Hearing Notice; and WHEREAS, the Operator did not respond to the follow up notice; and WHEREAS, on November 14, 2023, Steve Napolitano, Esq., a duly appointed thirdparty hearing officer for the City (“Hearing Officer”), conducted a properly noticed Review Hearing; and
WHEREAS, the Operator did not participate at the Review Hearing, was not present at the hearing and did not present any evidence for consideration prior to or during the hearing, and the Hearing Officer heard and considered information and evidence by

Ordinance No. 749

City staff, which a true and correct copy of the staff report and supporting evidence is attached hereto as Exhibit “A” and incorporated herein by reference; and WHEREAS, the Hearing Officer heard and considered information and evidence by City staff; and
WHEREAS, on January 14, 2024, the Hearing Officer issued a written decision and order (the “Decision”), incorporated by reference and attached hereto as Exhibit “B”, making several findings of fact and conclusions of law with respect to the Operators noncompliance with the DA and CCP based on a preponderance of the evidence; and WHEREAS, the Hearing Officer determined that Operator breached its payment obligations due to the Operator’s non-payment of fees and penalties due and owed to the City totaling $141,214.35, which continue to accumulate; and WHEREAS, the Operator continues to fail to meet its payment obligations and the total amount due to the City as of May 14, 2024, is $152,275.63; and WHEREAS, the Operator breached its obligation to maintain its legal status with the state of California, as the Operator’s LLC entity status has been suspended by the State of California; and
WHEREAS, the Operator had breached its obligation to implement the Project within the prescribed time periods contained within CCP No. 18-0019 Condition of Approval No. 51 (Time Limits), because there is no evidence that the Operator has made a diligent effort to implement the Project in any fashion inclusive of an application for a Zoning Clearance to permit the commercial cannabis activities; and WHEREAS, the Hearing Officer has recommended that the City Council adopt an ordinance repealing Ordinance No. 680 terminating DA18-020C and revoking the related interest in CCP18-0019; and
WHEREAS, pursuant to state law and the CMC, the Planning Commission duly noticed, agendized, and conducted a public hearing on this matter on March 18, 2024; and WHEREAS, the Planning Commission considered all public comments received before and during the public hearing, the presentation by City staff, the relevant staff report, administrative record, and all other pertinent documents relating to the repeal of Ordinance No. 680; and
WHEREAS, after the close of such public hearing, the Planning Commission adopted Resolution No. 2024-03, attached hereto and incorporated by reference as Exhibit “C,” recommending the City Council repeal Ordinance No. 680 and terminate related DA No. 18-020C; and
WHEREAS, pursuant to state law and the CMC, the City Council duly noticed, agendized, and conducted a public hearing on this matter; and

Ordinance No. 749

WHEREAS, the City Council considered all public comments received before and during the public hearing, the presentation by City staff, the relevant staff report, administrative record, and all other pertinent documents relating to the repeal of Ordinance No. 680; and
WHEREAS, after the close of such public hearing, the City Council introduced and adopted by first reading Ordinance No. 749 repealing Ordinance No. 680 and terminating related DA No. 18-020C.

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

SECTION 1. RECITALS
That the above Recitals are true and correct and are incorporated as though fully set forth herein.

SECTION 2. ADOPTION OF HEARING OFFICER’S FINDINGS OF FACT AND

CONCLUSIONS OF LAW
The City Council has reviewed and considered the Decision by the Hearing Officer (Exhibit “B”) issued on January 14, 2024, on this matter. For the reasons stated in the Decision, and as recommended by the Planning Commission (Exhibit “C”), the City Council adopts the Hearing Officer’s findings of fact and conclusions of law as its own and determines that Daniel & Goliath, LLC is not in compliance with the terms and conditions of the Development Agreement No. 18-020C and finds that Daniel & Goliath, LLC is in default of its contractual obligations set forth in said Development Agreement and has breached its Conditions of Approval for CCP No. 18-0019 by a showing of the preponderance of the evidence.

SECTION 3. TERMINATION OF DEVELOPMENT AGREEMENT
Pursuant to Article 19(d) of the Development Agreement, the City Council may terminate Development Agreement No.18-020C in its entirety. For the reasons stated in the Decision, and as recommended by the Planning Commission, the City Council hereby adopts this Ordinance repealing Ordinance No. 680 terminating DA No. 18-020C in its entirety.

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

Ordinance No. 749

SECTION 5. CALIFORNIA ENVIRONMENTAL QUALITY ACT
The City Council has determined that this Ordinance is categorically exempt from the California Environmental Quality Act (“CEQA”) (Pub. Res. Code § 21000 et seq.) and CEQA Guidelines (Cal. Code Regs., tit. 14, § 21000 et seq.) pursuant to CEQA Guidelines Section 15321 (Class 21) because the repeal of Ordinance No. 680 and termination of DA No. 18-020C is an enforcement action to revoke an entitlement interest.

SECTION 6. PUBLICATION
The City Clerk shall certify the passage and adoption of this Ordinance and shall cause this Ordinance to be published and/or posted as required by law, which shall take full force and effect thirty days from its adoption.

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Cudahy at the regular meeting of this ______ day of _____ 2024. ______________________________
Jose R. Gonzalez
Mayor
ATTEST:
____________________________
Richard Iglesias
City Clerk

Ordinance No. 749

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 Ordinance No. 749 was introduced for a first reading on the _____ day of ____ 2024 and approved for a second reading and adopted by said Council at its regular meeting held on the ______ day of ______ 2024 by the following vote, to-wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

Richard Iglesias
City Clerk

Ordinance No. 749

EXHIBIT “A”

REVIEW HEARING STAFF REPORT AND EVIDENCE

ADMINISTRATIVE RECORD FOR

REVIEW HEARING
Daniel and Goliath, LLC
November 14, 2023
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REVIEW HEARING STAFF REPORT
Date: November 14, 2023
To: Hearing Officer, Steve Napolitano
From: Juan Arauz, AICP, Community Development Director
Prepared By: Jessica Guillen, Assistant Planner
Concurrence: Cecilia Madrigal-Gonzalez, Senior Planner, Joshua Calhoun, Finance Director, Glenn Ward Calsada, Special Counsel, Raul Diaz, Building Official and Paloma McEvoy, Assistant City Attorney.

Subject: Compliance Review Hearing relating to Commercial Cannabis (“CCP”) 18-0019 and Development Agreement (“DA”) 18-020C between Daniel and Goliath, LLC (“Operator”) and the City of Cudahy (“City”).

RECOMMENDATION
Staff recommends that the Hearing Officer take the following action(s):

1. Hear the evidence presented by the City; and

2. Make a determination that the Operator is not in compliance with the terms and conditions of its DA with the City and find that the Operator is in default of contractual obligations set forth in the DA;

3. Make a determination that the Operator is not in compliance with the conditions of approval set forth in CCP18-0019; and

4. Make a recommendation to the City Manager for Planning Commission and City Council to adopt an ordinance repealing Ordinance No. 680 and terminating Development Agreement No. 18-020C and revoking their interest under CCP18-0019.

BACKGROUND/TIMELINE
On September 11, 2017, the City adopted Ordinance No. 673 (Attachment A) establishing the City of Cudahy's commercial cannabis production activity regulations codified in Chapter 5.20 of the Cudahy Municipal Code (“CMC”). CMC Section 5.20.040 authorizes medicinal commercial cannabis activities within a designated overlay zone, pursuant to a development agreement adopted in accordance with the Development Agreement Law (Govt. Code Section 65864 et seq.) Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 2 of 379 Page 2914 of 4584 “Serving The People” "Sirviendo A La Comunidad"

and Chapter 20.28 of the CMC.

On April 30, 2018, the Planning Commission approved CCP18-0019 for cannabis delivery at 4916 Cecilia St. Unit F, subject to the approval of a development agreement between the City and the Operator for cannabis delivery activities.

On May 15, 2018, the City Council adopted Resolution No. 18-17 (Attachment B) approving the issuance of CCP18-0019 (Attachment C) with conditions of approval to the Operator upon the execution of a development agreement with the City.

On June 5, 2018, the City Council adopted Ordinance No. 680 (Attachment D) approving DA18- 020C (Attachment E) inclusive of exhibits A-F (Attachment F) between Operator and the City authorizing commercial cannabis delivery activities at 4916 Cecelia Street Unit F (“Site”) as illustrated in Figures 1 and 2 below. Recital I of the Development Agreement permits the Operator to utilize approximately 800 square feet of the Site for cannabis delivery. The Operator is one (1) of seven (7) tenants at the Site which all have separate development agreements with the City but each tenant is subject to the same CCP conditions of approval.

FIGURE 1 – AERIAL OF SITE
Site
4916 Cecelia St.

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FIGURE 2 – FLOOR PLAN
On October 2, 2019, the City provided the Operator with a Notice of Delinquency due to payment non-compliance (Attachment G) with the Development Agreement, inclusive of the payment of Community Benefit Fees, Cost Recovery Fees, and Non-Operating Fees in the amount of ($8,357.05). The Operator was given no later October 17, 2019, to cure the amount, however, the delinquency was not timely cured.

On May 4, 2021, the City provided the Operator with a Notice of Default due to payment noncompliance (Attachment H) with a payment of fees and associated penalties in the amount of forty thousand nine hundred thirty-three dollars and sixty-four cents ($40,933.64). The Operator was given no later than 30-days to cure the default, however, the default was not timely cured.

On October 19, 2021, the City sent the Operator a Final Demand Letter due to payment noncompliance (Attachment I) due to payment non-compliance, informing the Operator that fees and penalties had accumulated to forty-five thousand three hundred forty dollars and forty cents ($45,340.40). The Operator was given no later than 30-daysto cure default, however, the default was not timely cured.

On December 7, 2022, the City Manager offered a Cannabis Deferment and Payment Program (Attachment J) to assist cannabis Operators with the accumulated non-operating and other fees by deferring and providing additional time for payment without penalty. Under the program:
(a) Unpaid Non-operating Fees would be deferred (without penalty) until six (6) months after the Operator was issued a Certificate of Occupancy; and then repay accumulated NonOperating Fees within twelve (12) months; and Unit F
4916 Cecelia
St.

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(b) Operators would continue to be responsible for the timely payment of Community Benefit Fees and Cost Recovery Fees as they accumulated; and (c) Previously incurred Community Benefit Fees and Cost Recovery Fees would be subject to a payment plan and require timely payments.

All cannabis Operators interested in participating in this program were given no later than January 31, 2022, to execute a payment agreement. The City received interest from the Operator and due to the good-faith negotiations between both parties, the City extended the deadline for the deferment and payment program.

On February 1, 2023, the City’s Finance Department presented the Operator with a Letter of Agreement (payment plan) agreeing to forbear outstanding payment due on the DA (Attachment K). The Operator accepted the proposed terms on February 2, 2023, and agreed to begin payments on March 1, 2023. The Operator also acknowledged and agreed “that the past due amounts stated are true and correct and are in fact presently due and owing. The parties agree that the Operator is in ‘default status’ on its obligations under its Development Agreement with the City.”
Between April and June 2023, the City notified the Operator with three (3) Notices of Delinquency (Attachment L) and provided an opportunity to cure outstanding payments due. However, the default on the Letter Agreement was not timely cured and therefore was terminated on June 16, 2023, and longer in force and effect. Accordingly, the total of all past due at the time the Letter Agreement was terminated and an amount of $131,854.28 was due and owed.

On June 23, 2023, the City sent a Final Demand Letter (Attachment M) demanding Operator to respond to the following demands: 1) Proof of the revival (or request for revival) of the LLC’s entity status with the California Secretary of State; 2) Forwarding your payment for the total past due amount; 3) Contact City staff for a meeting to revise CCP’s Schedule of Performance and for further information to become compliant with DA and CCP. The Operator did not respond in a timely manner and has failed to make any attempt to cure the defaults. As of the writing of this report, the City has only received a partial payment of fees due under DA18-021C since the Development Agreement has been in effect.

On August 9, 2023, the City issued an Escrow Account Letter (Attachment N) requiring all cannabis Operators to open an escrow account by September 15, 2023, to ensure payment of Cost Recovery Fees. As of the writing of this report, the Operator has not opened an escrow account nor made any payments into the account.

On October 12, 2023, the City issued the Operator a Notice of Review Hearing (Attachment S) with the hearing date, time, and place.

On October 24, 2023, the City issued a letter (Attachment O) updating the Operator on their payment and fees Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 5 of 379 Page 2917 of 4584 “Serving The People” "Sirviendo A La Comunidad"

related to the DA by correcting the amount due to an error in the total amount billed. The City provided a credit in the amount of $14,950.50. As of October 24, 2023, Operator owes the City one hundred twenty-six thousand two hundred eighty-two dollars and sixty-nine cents ($126,282.69). Community Benefit Fees, Cost-Recovery and Non-operating Fees plus penalties continue to accrue and the total amount due may be higher as of the date of the Review Hearing on November 14, 2023.

DISCUSSION/ANALYSIS
Under Section 19 of the Development Agreement, if the “City finds and determines based on substantial evidence that, Owner or Landlord executing [the] Agreement, or successor in interest thereto, has not complied in good faith with the terms or conditions of the Agreement, City may terminate or modify [the] Agreement (except that no modification shall increase Owner’s liability nor reduce Owner’s rights).

Pursuant to the CMC Section 5.20.080(6)(a), “[a]ny material violations of this chapter or any other relevant city law by a cannabis permittee, or cannabis permittee’s agent, is ground for suspending or revoking the relevant cannabis permit.”
To suspend or revoke a cannabis permit the City Manager must determine “that the cannabis permittee has failed to comply with any conditions of approval, or any agreement or covenant.” City staff recommends that the Hearing Officer review the material violations and evidence and make the following findings in support of finding the Operator to be in default of DA18-020C and in violation of the conditions of approval for CCP18-0019.

Violation #1. Breach of Payment Obligations. Pursuant to the DA Article. 5.b (Community Benefit Fees), Article. 7.c (Operating Fees) and Article. 8 (Cost Recovery Fees), the Operator must pay the City an annual community benefit fee in the amount of $9,523.86 ($1,904.77 down payment and monthly payments in the amount of $761.91), a cost recovery fee, and an operating [or nonoperating] fee each year since 2018. The Operator is also obliged to make payments for these fees under Condition of Approval No. 45; the obligation for Non-Operating Fees is also repeated in Condition of Approval No. 21 for delivery activities. The Operator has not made the required payments and as of October 24, 2023, is past due in the amount of $126,282.69 as shown in Table 1 below. Past-due payments continue to accumulate, including late payment penalties. The Operator must pay all required DA fees in accordance with DA terms. Failure to pay fees constitutes a breach of the DA and may result in suspension or immediate revocation of the DA.

Accordingly, the Operator is in breach of its payment obligation under DA No. 18-020C.

TABLE 1 – SUMMARY OF PAST AND CURRENT AMOUNTS DUE AS OF OCTOBER 24, 2023.

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Fee Type Payment Amount Due
Community Benefit Program $ 43,047.90
Cost Recovery Fee $ 58,498.80
Non-operating Fee $ 20,726.58
Penalties (Late Payment) $4,009.41
TOTAL: $ 126,282.69
Finding 1. The Operator breached the terms of Development Agreement No. 18-020C by failing to make all required payments to the City that are required pursuant to the terms of Development Agreement No. 18-020C.

Evidence: On June 5, 2018, Daniel and Goliath, LLC executed Development Agreement No. 18- 020C, which is a legally binding contract between Daniel and Goliath, LLC and the City of Cudahy pursuant to DA Art. 5.b [Community Benefit Fees], Art. 7.c [Operating Fees] Art. 8 [Cost Recovery Fees]. In December 2022 (Attachment J), the City offered a deferment plan option to the Operator which was accepted, and the first payment due on March 1, 2023. The Operator did not make their required payments in March, April, or May of 2023, and as a result the payment plan was null and voided on June 16, 2023. The City continued to issue monthly invoices (Attachment P), which are due and owing. Proper notice of default was given with the opportunity to cure, but the Operator has failed to fulfill its monetary obligations owed to the City. This failure is a material breach of the DA and grounds for termination of the DA.

First, if the Operator asserts that City Officials previously made representations that nonretail cannabis operators would not have to pay Non-Operating Fees – no such authority is granted under the CMC nor the Development Agreement. 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. The Operator has requested the City forgive Non-Operating Fees spanning the course of an 18-month period and has failed to provide any evidence that the forgiveness of this debt would fulfill a public purpose.

Second, if the Operator asserts that it was unable to move forward with its project due to closures at City Hall caused by the COVID-19 pandemic, this argument would similarly fail. During the height of the pandemic, City Hall’s physical premises were closed to the public, however, the City continued to conduct business, and process requests, including applications for building permits which could be dropped off at the front of City Hall.

Third, if the Operator asserts that the Contested Fees are subject to the Mitigation Fee Act, such assertion is not supported by the law. The Contested Fees are a part of the Development Agreement entered into between the City and the Operator and was enacted via ordinance pursuant to Development Agreement Law (Gov. Code §§ 65864-65869.5). Fees imposed by development agreements are expressly exempt from the Mitigation Fee Act. Gov. Code § Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 7 of 379 Page 2919 of 4584 “Serving The People” "Sirviendo A La Comunidad"

66000(b) (“ ‘Fee’ means a monetary exaction other than a tax or special assessment…but does not include…fees collected under development agreements adopted pursuant to Article 2.5 (commencing with Section 65864) of Chapter 4…”). Therefore, the Contested Fees are not subject to the Mitigation Fee Act.

Further, even if the Mitigation Fee Act was applicable to the Contested Fees, to properly contest the Contested Fees, the Operator would have been required to Tender the required payment, in full and serve written notice to the City that informs the City that payment has been tendered under protest accompanied by a statement of facts.

Gov. Code § 66020(a). However, such protests must be filed at the time of the approval of the development or within ninety (90) days of the imposition of fees. The City and Operator entered into the Development Agreement on June 5, 2018. The 90-day statute of limitations to protest such fees ended on September 3, 2023, and has Operator tendered payment in full as required by Government Code Section 66020(a). Therefore, any opportunity to protest under the Mitigation Fee Act has long since passed.

Fourth, if the issue is raised by the Operator, the holdings in Nollan v. California Coastal Commission and Dolan v. City of Tigard do not apply to the Contested Fees. Nollan, (1987) 483 U.S. 825; Dolan, (1994) 512 U.S. 374. The U.S. Supreme Court holding in Nollan requires exactions to (1) bear a nexus to the burdens imposed by development; and (2) substantially advance a legitimate state interest. The 5-4 U.S. Supreme Court decision in Dolan refines the second prong of the Nollan test and requires development conditions to have a “rough proportionality” to a proposed development’s impact. Dolan at p. 391.

However, the holdings in these cases are inapplicable to Contested Fees. Here, the Court notably limited the holding to adjudicative decisions, and not legislative decisions. Id., at p. 385; see also Lingle v. Chevron U.S.A., (2005) 544 U.S. 528, 547 (reaffirming that the rough proportionality requirement applies to adjudicative decisions and not legislative decisions), Leroy Land Development v. Tahoe Regional Planning Agency (1991) 939 F.2d 696, 698 (holding that separately negotiated agreements are not subject to an unconstitutional “takings” analysis because the agreements were entered into voluntarily, in good faith and supported by consideration). In consideration for those Contested Fees, Operator received a ten (10) year term with an option to renew for another ten (10) year term to operate a medicinal commercial cannabis facility.

Finding 2: The Operator has failed to comply with Conditions of Approval No. 1(a) and (b) of the CCP, which required the Operator to pay all City-issued invoices within 30 days of receipt thereof.

Evidence: The City approved Development Agreement No. 18-020C subject to Conditions of Approval, which are incorporated as part of Development Agreement No. 18-020C. Condition of Approval 1(b) provides that the Operator is required to pay all City-issued invoices within 30 days Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 8 of 379 Page 2920 of 4584 “Serving The People” "Sirviendo A La Comunidad"

of receipt thereof. The City has sent the Operator regular monthly invoices for Community Benefit Program fees, Cost Recovery fees, Non-Operating fees, and late penalties since 2019 to September 2023 (Attachment Q). The current outstanding fees owed by the Operator have been owed to the City for longer than 30 days as shown in (Attachment P). Despite demand and after proper notice of default and opportunity to cure, the Operator has failed to cure its monetary obligations owed to the City.

Finding 3: Pursuant to Condition of Approval Nos. 21 and 45, the Operator, LLC’s failure to pay all fees constitutes a cross-breach of Development Agreement No. 18-020C and is grounds for revocation of the CCP.

Evidence. Pursuant to the foregoing evidence, the Operator’s non-payment of Non-Operating Fees due under the Development Agreement and all fees due under the Development Agreement, respectively in violation of Condition Nos. 21 and 45 and constitute grounds for revocation of the Operator's interest in the CCP for the Site.

Violation #2. Non-Compliance with State Law. The DA sets forth standard operating procedures as mentioned in DA Art. 4.a. [Facility Operations]. At all times, the operator must be a lawful entity.

Finding 4: The Operator is unable to lawfully the LLC due to the Suspended status with the Secretary of State and is therefore in breach of DA Art. 4.a.

Evidence: The City has learned that Daniel and Goliath, LLC’s legal status as a California limited liability company is suspended. Attachment R shows the Certificate of Status with the Secretary of State of California dated October 31, 2023. The Certificate of Status for Daniel and Goliath, LLC states: “The above-referenced entity’s powers, rights, and privileges are suspended in California.” See, Rev. & Tax Code Sec. 23301. Despite notice of default and opportunity to cure, Daniel and Goliath, LLC’s entity status remains “FTB” suspended by the California Secretary of State and, as such, the entity is unable to operate in the State of California.

A suspended business entity becomes essentially prohibited from legally operating within the State of California unless and until such suspended status is withdrawn. The consequences of this suspended status include, without limitation, the business entity being unable to sell, transfer or exchange real property in California, as well as risking any contracts entered by the business entity during the time of suspension being voidable at the option of the other party.

See, e.g., Casiopea Bovet, LLC v. Chiang (2017) 12 Cal.App.5th 656, 662; City of San Diego v. San Diegans for Open Government (2016) 3 Cal.App.5th 568, 577. Additionally, the suspended business entity may lose its ability to prosecute or defend legal actions (i.e., file or defend lawsuits). See City of San Diego, supra, 3 Cal.App.5th at p. 577.

Violation #3. Breach of Conditions of Approval No. 51 (Time Limits) under CCP 18-0019. CCP Condition No. 51.A. states the approval decision for this CCP becomes effective upon the Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 9 of 379 Page 2921 of 4584 “Serving The People” "Sirviendo A La Comunidad"

expiration of the 15-day appeal period following the approval decision, or when any appeals of the decision are finally resolved. The CCP effective date for the Development Agreement was June 20, 2018. No appeal was ever filed and thus CCP Condition No. 51.A.i sets a 90-day time limit from the effective date of the CCP for the Permittee to obtain a Zoning Clearance. CCP Condition No. 51A.ii sets a 90-day time limit from the effective date of the CCP for the Permittee to complete construction of Phase I, or until September 18, 2018. CCP Condition No. 51A.iii sets a 180-day time limit from the effective date of the CCP for the Permittee to complete all Tenant Improvements and construction and to obtain a Certificate of Occupancy from the City Building Department, or until December 17, 2018. The City Manager may grant an extension of time if the Permittee has made a diligent effort to implement the Project.

Finding 5: The Operator has not obtained a Zoning Clearance pursuant to Chapter 20.84 of the CMC, nor has the Operator applied for a building permit to complete tenant improvements or otherwise obtained a certificate of occupancy. Therefore, the Operator breached its conditions of approval for CCP18-0019 by failing to implement the Project within the time limits set forth in Conditions of Approval No. 51.

Evidence: The Operator has not provided the City with any evidence it has obtained a Zoning Clearance, completed construction of Phase I, completed all Tenants Improvements, or obtained a Certificate of Occupancy for the Site within the time limits set forth in Condition of Approval No. 51. Without an extension, the deadlines expired in 2019. The City has no record of any request by the Operator to the City Manager for an extension of time, nor is there evidence the Operator has made diligent efforts to comply, such as submitting for a zoning clearance or submitting for a building permit plan check. Despite notice of default and opportunity to cure, Daniel and Goliath, LLC remains in breach of its conditions of approval by failing to implement the Project within the time limits set forth in the Conditions for Approval No. 51.

NOTICE
Pursuant to Section 22 of the Development Agreement the City sent a Review Hearing notice to all concerned parties on October 12, 2023. The notice advised that the Review Hearing would be held on the hearing date at such location designated in (Attachment S). Proof of certified mailing is provided in (Attachment T).

ENVIRONMENTAL ANALYSIS
The action(s) have been assessed in accordance with the California Environmental Quality Act (CEQA) (Pub. Res. Code § 21000 et seq.) and the environmental regulations of the City. The Project is expected to be categorically exempt from the requirements to prepare additional environmental documentation per CEQA Guidelines Section 15321. Class 21 (Enforcement Actions by Regulatory Agencies) is applicable to “Actions by regulatory agencies to enforce or revoke a lease, permit, license, certificate, or other entitlement for use issues, adopted, or prescribed by the regulatory agency or enforcement or a law, general rule, standard, or objective, Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 10 of 379 Page 2922 of 4584 “Serving The People” "Sirviendo A La Comunidad"

administered or adopted by the regulatory agency.” Therefore, the action(s) are categorically exempt from the provisions of CEQA.

CONCLUSION
It is the City’s purpose and intent to regulate cannabis activities within the City in a responsible manner to protect the health, safety, and welfare of the residents of Cudahy and to enforce rules and regulations consistent with California Cannabis laws. Cannabis Operators with development agreements are obligated to comply with all provisions of the CMC, obligations of the DA and conditions of approval under the CCP. As discussed above and based on the evidence attached to this report, the Operator has failed to comply with their obligations despite being provided with ample notice and opportunities to achieve compliance. Therefore, staff recommends the Hearing Officer after independent review, consideration, analysis of staff’s report and the information presented, oral and written testimony by all parties and their witnesses, and the record as a whole – make a determination the Operator, Daniel and Goliath LLC, has breached the terms and conditions DA No. 18-020C and recommend that the Planning Commissioner and City Council repeal Ordinance No. 680 and terminate DA18-020C and revoke the interest under CCP18-0019.

ATTACHMENT(S)
A. Ordinance No. 673
B. City Council Resolution No. 18-17
C. CCP18-0019 Conditions of Approval
D. Ordinance No. 680
E. Development Agreement No. 18-020C
F. Exhibit A-F of Development Agreement No. 18-020C
G. Correspondence Letter- Notice of Delinquency dated October 2, 2019 H. Correspondence Letter- Notice of Default dated May 4, 2021 I. Correspondence Letter- Final Demand dated October 19, 2021 J. Correspondence Letter- Notice of Cannabis Deferment and Payment Program dated December 7, 2022
K. Letter of Agreement (Payment Plan) dated February 1, 2023 L. Correspondence Letter- April, May, and June Delinquency notices.

M. Final Demand Letter dated June 23, 2023
N. Correspondence – Notice of Escrow Account dated August 9, 2023 O. Correspondence – Notice of updated payment of fees dated October 24, 2023 P. Invoices from October 2022 to October 2023
Q. Invoices from 2019 to September 2023
R. Certificate of Status with the Secretary of State of California dated October 31, 2023 S. Notice of Hearing dated October 12, 2023
T. Proof of certified mailing of Notice of Hearing, October 12, 2023 Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 11 of 379 Page 2923 of 4584 ATTACHMENT A.

Ordinance No. 673
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 12 of 379 Page 2924 of 4584 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

Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 13 of 379 Page 2925 of 4584 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
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 14 of 379 Page 2926 of 4584 \
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.

Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 15 of 379 Page 2927 of 4584

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
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 16 of 379 Page 2928 of 4584 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:

Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 17 of 379 Page 2929 of 4584 (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

Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 18 of 379 Page 2930 of 4584 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

Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 19 of 379 Page 2931 of 4584 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.

l
l
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 20 of 379 Page 2932 of 4584 (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

Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 21 of 379 Page 2933 of 4584 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.

)
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 22 of 379 Page 2934 of 4584 (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.

Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 23 of 379 Page 2935 of 4584 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,

Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 24 of 379 Page 2936 of 4584 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

Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 25 of 379 Page 2937 of 4584 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.

Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 26 of 379 Page 2938 of 4584 (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.

Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 27 of 379 Page 2939 of 4584 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.

Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 28 of 379 Page 2940 of 4584 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.

Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 29 of 379 Page 2941 of 4584 (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.

Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 30 of 379 Page 2942 of 4584 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

Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 31 of 379 Page 2943 of 4584 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;

Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 32 of 379 Page 2944 of 4584 (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.

Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 33 of 379 Page 2945 of 4584 (d) Each Cannabis Permit is subject to the conditions of approval in the applicable Development Agreement for the parcel of real property upon which the Premises is located.
(e) Each Cannabis Permit is subject to any additional conditions that may be applied by the City at the time of issuance or renewal as necessary to properly regulate the applicable Commercial Cannabis Activities and to protect the public. (f) Each Cannabis Permittee shall execute a Development Agreement with the City to, among other things, fully reimburse the City for all fiscal impacts, costs, expenses, fees, and attorneys' fees incurred by the City related to the Cannabis Permit and the related Commercial Cannabis Activity of such Cannabis Permittee.
(g) Each Cannabis Permittee shall:
(1) Carry liability insurance in the amounts and types set by the City Manager or the City Manager's designee, and name the City as an additional insured on all such insurance policies.
(2) Execute an Indemnification Agreement prepared by the City that fully indemnifies the City for all liabilities associated with the Cannabis Permit, the Cannabis Permittee's Commercial Cannabis Activities, and any action taken by the Cannabis Permittee pursuant to this Chapter. Such indemnification may be set forth in the applicable Development Agreement.
(3) Defend the City, at the Cannabis Permittee's sole expense, in any action against the City or its agents, officers, officials, or employees associated with the Cannabis Permit, the Cannabis Permittee's Commercial Cannabis Activities, or any action taken by the Cannabis Permittee pursuant to this Chapter. The City may, at its sole discretion, participate in the defense of any such action, but such participation shall not relieve the Cannabis Permittee of its indemnification and reimbursement obligations. (4) Reimburse the City for all costs, expenses, fees, and attorney's fees incurred by the City related to any action against the City or its agents, officers, or employees associated with the Cannabis Permit, the Cannabis Permittee's Commercial Cannabis Activity, or any action taken by the Cannabis Permittee pursuant to this Chapter.
(h) A Cannabis Permittee shall keep the City and law enforcement updated with the names, addresses, and relevant criminal histories of the Applicant's Agents.

Relevant criminal histories shall include any drug-related or felony convictions, the nature of such offenses, and the sentences received for such convictions. (i) Transfer.
(1) Any Cannabis Permittee may not sell, transfer, pledge, assign, grant an option, or otherwise dispose of his or her ownership interest in the Commercial Cannabis Business authorized pursuant to the Cannabis Permit.

l
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 34 of 379 Page 2946 of 4584 (2) In order for a Cannabis Permittee to transfer its Cannabis Permit to any Person, such Cannabis Permittee must submit a transfer application to the City Manager or City Manager's designee. The City Manager or designee may create a transfer application and reasonable transfer application process, including mandatory fee, that Cannabis Permittees and the City must follow and pay for Cannabis Permit transfer requests. Each transfer request of a Cannabis Permit and the related transfer application is subject to the prior approval of the City Manager or designee. (3) Applicants for Cannabis Permits must show proof of lawful possession of the applicable location. Evidence of lawful possession consists of properly executed deeds of trust, leases, and other written instruments, as may be accepted by the City.
(4) The location shall only be the geographical area that is specifically and accurately described in executed documents verifying lawful possession.

No Cannabis Permittee is authorized to relocate to other areas or units within a building structure without first filing a change of location application and obtaining approval form the City regardless of any possessory interest or right to possession to such additional space. No Cannabis Permittee shall add additional contiguous units or areas, thereby altering initially-approved Premises without filing an application to modify the location on forms prepared by the City Manager, including any applicable processing fee.
(5) No Cannabis Permittee is authorized to sublet any portion of any Premises for any purpose unless all necessary forms and applications to modify the existing location to accomplish any subletting have been approved by the City.
(6) The City Manager shall develop and promulgate a process for the renewal of Cannabis Permits and the establish related fees, in accordance with applicable laws.

U) To the fullest extent permitted by law, the City does not assume any liability, and expressly does not waive sovereign immunity, with respect to any Commercial Cannabis Activities, or for the other activities of any Cannabis Permittee or for any other activities taking place at Premises. (k) Changing, Altering, or Modifying Location.
(1) After issuance of a Cannabis Permit, the Cannabis Permittee shall not make any physical change, alteration, or modification to the Premises that materially or substantially alters the location, production estimates, and/or usage of the location form the plans originally approved under the applicable Development Agreement, without the prior written approval of the City Council or designee. The Cannabis Permittee whose Premises are to be materially or substantially changed is responsible for filing an application with the City in order to obtain requisite approval.

Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 35 of 379 Page 2947 of 4584 (2) Material or substantial changes, alterations, or modifications requiring approval include, but are not limited to, the following: (i) an increase or decrease in the total physical size or capacity of the location; (ii) the sealing off, creation of or relocation of a common entryway, doorway, passage, or other such means of public ingress and/or egress, when such common entryway, doorway, or passage alters or changes limited access areas; or (iii) the installation or replacement of electric fixtures or equipment, the lowering of a ceiling, or electrical modifications made for the purpose of increasing power usage ..
(3) The City Council or designee may grant approval for the types of changes, alterations, or modifications described herein upon the filing of an application by the Cannabis Permittee and payment of any applicable fee, subject to any requisite amendments to the applicable Development Agreement. The Cannabis Permittee must submit all information requested by the City Council or designee including, but not limited to, documents that verify the following: (i) the Cannabis Permittee will continue to have the exclusive possession of the Premises, as changed, by ownership, lease, rental agreement, or other means, and sole control over all activities; and (ii) the proposed change conforms to any and all City restrictions related to the time, manner, and place of regulation of the applicable Commercial Cannabis Activity.
(I) To the fullest extent permitted by law, the City does not assume any liability, and expressly does not waive sovereign immunity, with respect to any Commercial Cannabis Activities, or for the other activities of any Cannabis Permittee or for any other activities taking place at Premises.

5.20.080 Enforcement and Appeals.
(a) Any Commercial Cannabis Activity within the City in violation of this Chapter is hereby declared to be unlawful and a public nuisance. (b) Any Person who willfully or knowingly (i) engages in a violation of this Chapter or (ii) owns, possesses, controls, or has charge of any parcel of real property in the City upon which a violation of this Chapter is maintained and who has actual knowledge of such violation ( or would have actual knowledge of such violation after a reasonable inquiry), shall be subject to the penalties and remedies provided by this Chapter.
(c) Any violation of this Chapter shall constitute a separate offense for each and every day the violation occurs or persists.
(d) Any Person in violation of any provision of this Chapter or who causes another Person to be in violation of this Chapter shall have committed a misdemeanor. In addition which shall be punishable by a fine of up to one thousand dollars ($1,000) for each violation and for each day the applicable violation continues to persist.

Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 36 of 379 Page 2948 of 4584 (e) Any person in violation of any provision of this Chapter shall be punishable by an administrative fine of up to a $1,000 per offense.
(f) Any material violation of this Chapter or any other relevant City law or State Law by a Cannabis Permittee, or a Cannabis Permittee's agent, is grounds for suspending or revoking the relevant Cannabis Permit. In addition, the City Manager or the City Manager's designee may suspend or revoke a Cannabis Permit, disqualify an Applicant from the application process, or elect not to renew a Cannabis Permit if any of the following occur:
(1) The City Manager or the City Manager's designee determines that the Cannabis Permittee has failed to comply with this Chapter, any condition of approval, or any agreement or covenant as required pursuant to this Chapter.
(2) The Cannabis Permittee's Commercial Cannabis Activities cease for more than ninety (90) calendar days.
(3) Ownership of the Cannabis Permittee is changed without approval from the City.
(4) The licensed Commercial Cannabis Activity moves from the licensed Premises to a different, unauthorized location.
(5) The Cannabis Permittee fails to provide remote access to the security cameras to the City Manager, the City Manager's designee, or Los Angeles County Sheriff's Department, or fails to allow inspection of the security recordings, the activity logs, or of the Premises by authorized City officials.
(g) Any decision regarding the suspension or revocation of a Cannabis Permit, disqualification of an Applicant from the application process, or election not to renew a Cannabis Permit may be appealed to an independent neutral third-party administrative hearing officer appointed by the City Manager or the City Manager's designee (the "Hearing Officer"). Said appeal shall be made by a notice of appeal from the Person appealing within thirty (30) days from the date of the City's decision. The appeal shall be accompanied by a written verified declaration setting forth the basis for the claim that the City's decision was improper. The Hearing Officer's decision shall be final and binding upon the City and the appellant Cannabis Permittee or Applicant. Alternatively, the City Manager may provide for the appeal to be made to the City Council, in lieu of a hearing officer. In such case, the City Council's decision shall be final and binding upon the City and the appellant.
(h) These penalties and remedies are cumulative, and in addition to any other penalties and remedies available to the City.

5.20.090 State Medicinal License Requirement.
(a) Cannabis Permittees must obtain a State Medicinal License in accordance with State Law, including, but not limited, to the temporary and permanent State Medicinal Licenses provided for in MAUCRSA.

Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 37 of 379 Page 2949 of 4584 (b) Each Cannabis Permittee must expeditiously provide proof of receipt of the applicable State Medicinal License by such Cannabis Permittee to the City Manager or designee.

5.20.100 Medicinal Cannabis Cultivation.
(a) Purpose. The purpose and intent of this Section is to permit and regulate the medicinal Cannabis Cultivation in order 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. (b) Scope; Medicinal Cannabis. This Section permits and regulates the medicinal Cannabis Cultivation pursuant to State Law, including MAUCRSA.

Subject to the terms of this Chapter, Cultivation Permits may be issued by the City for medicinal Cannabis Cultivation pursuant to and in accordance with State Law, including MAUCRSA.
(c) Outdoor Cultivation is prohibited within the City.
(d) Indoor Cultivation is permitted only on properties within the applicable Permit Zone with a valid Cultivation Permit and other requisite permits and entitlements. (e) Indoor Cultivation may include growing Cannabis plants, harvesting Cannabis plants, and drying Cannabis flowers but shall not include the Manufacturing or of Cannabis Products, unless otherwise authorized pursuant to this Chapter. (f) Entrance to the Cultivation area, and all storage areas, of the applicable Premises shall be locked at all times and under the control of the staff of such Premises.

5.20.110 Medicinal Cannabis Products Manufacturing.
(a) Purpose. The purpose and intent of this Section is to permit and regulate the medicinal Cannabis Products Manufacturing 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. (b) Scope; Medicinal Cannabis. This Section permits and regulates medicinal Cannabis Products Manufacturing pursuant to State Law, including MAUCRSA.

Subject to the terms of this Chapter, Manufacturing Permits may be issued by the City for medicinal Cannabis Products Manufacturing, pursuant to and in accordance with State Law, including MAUCRSA.
(c) Medicinal Cannabis Products Manufacturing is a permitted use only on properties within the applicable Permit Zone with a valid Cultivation Permit and other requisite permits and entitlements.
(d) A Manufacturing Permittee must employ at least one (1) member of its personnel dedicated full time to quality control.
(e) The Manufacturing Permittee must establish standard operating procedures and batch records that comply with current good manufacturing practices and applicable State Law, including MAUCRSA.

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Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 38 of 379 Page 2950 of 4584 (f) All Cannabis Products produced by a Manufacturing Permittee must be labeled in compliance with applicable State Law, including MAUCRSA. (g) All Cannabis Products produced by a Manufacturing Permittee must be packaged in child resistant containers prior to leaving the Premises fOf such Manufacturing Permittee in accordance with applicable State Law, including MAUCRSA.
(h) Manufacturing Permittees may conduct Manufacturing using any type of solvents, including Volatile Solvents, or Manufacturing processes if such Manufacturing complies with the requirements of this Chapter and State or local law, including but not limited to Health and Safety Code Section 11362.775 (or any successive State Law) all applicable fire and building codes in the City and any other laws of the City designed to ensure the safety of such operation. (i) Manufacturing Permittees using Volatile Solvents for Manufacturing Cannabis Products must operate in a manner to reduce the risk of explosion or danger to public health, including through the use of a close-loop · or solvent dispersion system consistent with the requirements of Health and Safety Code Section 11362.775 (or any successive State Law).

U) If hazardous materials, flammable gas, flammable liquefied gas, flammable and combustible liquids, or other flammable material, as those terms are defined in California Fire Code Section 202, are to be used in the processing of medicinal Cannabis, then the provisions of California Fire Code Section 407 shall be applicable where hazardous materials are subject to permits under California Fire Code Section 50 (Hazardous Materials) are located on the Premises or where required by the applicable building or fire official.
(k) Storage, use, and handling of compressed gases in compressed gas containers, cylinders, tanks, and systems shall comply with California Fire Code Chapter 53. Partially full compressed gas containers, cylinders, or tanks containing residual gases shall be considered as full for the purposes of the controls required. Compressed gases classified as hazardous materials shall also comply with California Fire Code Chapter 50 for general requirements and California Fire Code Chapter 53 addressing specific hazards, including California Fire Code Chapter 58 (Flammable Gases), California Fire Code Chapter 60 (Highly Toxic and Toxic Materials), California Fire Code Chapter 63 (Oxidizers, Oxidizing Gases and Oxidizing Cryogenic Fluids, and California Fire Code Chapter 64 (Pyrophoric Materials). Prevention, control, and mitigation of dangerous conditions related to storage, use, dispensing, mixing, and handling of flammable and combustible liquids shall be in accordance with California Fire Code Chapters 50 and 57.
(I) Labeling Requirements - Edibles.
(1) Before a Manufacturing Permittee prepares any edible Cannabis or edible Cannabis Product for retail sale, it shall be labeled and placed in tamperevident packaging which at least meets the requirements of State Law, including, but not limited to, MAUCRSA.

Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 39 of 379 Page 2951 of 4584 (2) All items to be sold or distributed shall be individually wrapped at the original point of preparation by the Cannabis Permittee. (3) Labeling must include a warning if nuts or other known allergens are used, and must include the total weight (in ounces or grams) of Cannabis in the package, not to exceed ten (10) milligrams of tetrahydrocannabinol (THC) per serving.
(4) A warning that the item is a medication and not a food must be clearly legible on the front of the package and/or must comply with state packing requirements.
(5) The package must have a label warning that the product is to be kept away from children.
(6) The label must also state that the product contains Cannabis and must specify the date of Manufacture and the Manufacture Permittee's information, including, but not limited to, address, and phone number. (7) Distributions must be in a properly labeled opaque package when distributed.
(8) The City Manager, or designee, may impose additional packaging and labeling requirements on Cannabis or Cannabis Products.

5.20.120 Medicinal Cannabis and Cannabis Products Retail Delivery (Retail Delivery Only, Dispensaries Prohibited).
(a) Purpose. The purpose and intent of this Section is to regulate the Retail Delivery of medicinal Cannabis and Cannabis Products in order to promote the health, safety, and general welfare of the residents and businesses within the City. The City is authorized to regulate this activity pursuant to the State Law. (b) Scope; Medicinal Cannabis Only. This Section permits and regulates the Retail Delivery of medicinal Cannabis and Cannabis Products pursuant to State Law, including MAUCRSA. Subject to the terms of this Chapter, Retail Delivery Permits may be issued by the City for the Retail Delivery of medicinal Cannabis and Cannabis Products pursuant to and in accordance with State Law, including MAUCRSA. The point-of-sale sale of Cannabis or Cannabis Products is strictly prohibited.
(c) Retail Delivery of Cannabis and Cannabis Products is a permitted use only on properties within the applicable Permit Zone with a valid Retail Delivery Permit and other requisite permits and entitlements.
(d) The Retail Delivery of medicinal Cannabis and Cannabis Products may only include the Retail Delivery of Cannabis and Cannabis Products by a Retail Delivery Permittee to a customer, patient or primary caregiver, in accordance with State Law, including MAUCRSA.
(e) Retail Delivery Permittees shall implement sufficient security measures to both deter and prevent unauthorized entrance into areas containing Cannabis

Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 40 of 379 Page 2952 of 4584 and Cannabis Products and theft of Cannabis and Cannabis Products from the Retail Delivery Establishment or employees participating in Retail Delivery. (f) All Cannabis and Cannabis Products shall be stored in a secured and locked room, safe, or vault, and in a manner as to prevent diversion, theft, or loss. (g) Individuals shall not be allowed to remain on the Premises comprising of the Retail Delivery Establishment unless they are engaging in activity expressly related to the operations of the Retail Delivery Establishment or are a customer. (h) A Retail Delivery Permittee shall notify the City Manager or the City Manager's designee within 24 hours of discovering any of the following:
(1) Significant discrepancies identified during inventory. The level of significance shall be determined by the City Manager or the City Manager's designee.
(2) Diversion, theft, loss, or any criminal activity involving the Retail Delivery Establishment or any agent or employee of the Retail Delivery Establishment.
(3) The loss or unauthorized alteration of records related to Cannabis, Cannabis Products, registered qualifying patients, primary caregivers, or Retail Delivery Establishment agents or employees.
(4) Any other material breach of security.
(i) The Retail Delivery of medicinal Cannabis and Cannabis Products shall comply with all State and local Law, including all laws requiring presentment of government-issued identification card, physician's recommendation, or medicinal Cannabis identification card at the time of initial purchase.

U) With respect to medicinal Cannabis, physicians' recommendations for medicinal cannabis use shall be verified by a Retail Delivery Permittee prior to the Retail Delivery any medicinal Cannabis to a qualified patient or primary caregiver and at least every six months thereafter.
(k) A Retail Delivery Establishment may not employ or enter into any agreements with any physicians who recommend medicinal Cannabis; Physician Services are prohibited from any and all Retail Delivery Establishments. (I) A Retail Delivery Permittee shall inspect all Cannabis and Cannabis Products received for quality assurance prior to the Retail Delivery to any Person. (m) The Retail Delivery of Cannabis and Cannabis Products shall occur only after such Cannabis and Cannabis Products have been inspected and quality tested in accordance with applicable State Law, including MAUCRSA. (n) Each Retail Delivery Establishment shall do regular monthly inventories and record the total quantity of Cannabis and Cannabis on the Premises. These records shall be maintained for three years from the date created and shall be open to inspection by the City Manager, the City Manager's Designee, and law enforcement.

Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 41 of 379 Page 2953 of 4584 (o) A Retail Delivery Permittee shall register with the City each location where Cannabis or Cannabis Products are stored for purposes of Retail Delivery by such Retail Delivery Permittee within the City.
(p) A Retail Delivery Establishment shall maintain customer and patient and other business records in a secure location (including electronically or cloud-based) j. that is compliant with, as applicable, HIPAA and other federal and state privacy laws.
(q) During the Retail Delivery of Cannabis or Cannabis Products, each vehicle driver shall carry a copy of the Retail Delivery Permit, a copy of the Retail Delivery request, a form of government-issued identification, and all other information required by State and local Law. The driver shall present these documents upon the request of law enforcement, the City Manager, or the City Manager's designee.
(r) Prior to Retail Delivery of Cannabis and Cannabis Products, such Cannabis and Cannabis Products shall be labeled and placed in a tamper-evident package.

Labels and packages of Cannabis and Cannabis Products shall, at minimum, meet the requirements specified under State Law, including MAUCRSA. (s) All Retail Delivery vehicles shall:
(1) Be equipped with, and utilize, a vehicle alarm system. (2) Have and utilize a direct communication system with the related Retail Delivery Establishment.
(3) Keep all Cannabis and Cannabis Products in a secure and locked container.
(4) Have an internal partition between the driver and all passengers from the Cannabis and Cannabis Products storage containers that prevents access by the driver and passengers to all cannabis products from inside the vehicle.
(5) Not carry more Cannabis and Cannabis Products than allowed by State and local Law and required to fulfill all immediate Retail Delivery requests (6) Not display any logo, signage, or other information that identifies, advertises, or lists the services or the products offered.

5.20.130 Medicinal Cannabis and Cannabis Products Distribution. (a) Purpose. The purpose and intent of this Section is to permit and regulate the Distribution of Cannabis and Cannabis Products between Cannabis Permittees in order 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.
(b) Scope; Medicinal Cannabis Only. This Section permits and regulates the Commercial Cannabis Activity of Distribution of medicinal Cannabis and Cannabis Products pursuant to State Law, including MAUCRSA. Subject to the terms of this Chapter, Distribution Permits may be issued by the City for the

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Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 42 of 379 Page 2954 of 4584 )
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Distribution of medicinal Cannabis and Cannabis Products pursuant to and in accordance with State Law, including MAUCRSA. Distribution of Cannabis and Cannabis Products requires a Development Agreement with the City and must be located within the applicable Permit Zone. -,
(c) Distribution activities includes the receiving and releasing of Cannabis and Cannabis Products for inspection, Testing, and quality assurance, as required under applicable State Law and such other activities as are permitted pursuant to State Law.
(d) A Distribution Permittee shall only Distribute Cannabis and Cannabis Products between Cannabis Permittees or to facilities or portions of facilities wholly controlled by such Distribution Permittee to the extent permitted by State Law.
(e) A Distribution Permittee shall inspect all Cannabis and Cannabis Products received by it for quality assurance prior to Distributing to any Cannabis Permittee, as required under applicable State Law.
(f) In addition to the application requirements in Section 0, a Distribution Permittee shall register with the City each location within the City where Cannabis and Cannabis Products are stored for purposes of Distribution activities within the City.
(g) A Distribution Permittee shall Distribute Cannabis and Cannabis Products to Cannabis Permittees only after such Cannabis and Cannabis Products have been inspected and quality tested in accordance with applicable State Law, including MAUCRSA.
(h) A Distribution Permittee may also hold any other Permit type to the extent permitted by State Law. To the extent permitted by State law, a Distribution Permittee that also holds another Permit type may self-distribute its Cannabis Products.

5.20.140 Medicinal Cannabis and Cannabis Products Microbusiness. (a) Purpose. The purpose and intent of this Section is to permit and regulate the medicinal Cannabis and Cannabis Products Microbusiness in order 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 MAUCRSA.
(b) Scope; Medicinal Cannabis Only. This Section permits and regulates Microbusinesses, pursuant to State Law, including MAUCRSA. Subject to the terms of this Chapter, Microbusiness Permits may be issued by the City pursuant to and in accordance with State Law, including MAUCRSA. (c) All Microrobusinesses shall require a Development Agreement with the City and must be located within the applicable Permit Zone.
(d) All components of a Microbusiness (i.e., Cultivation, Manufacturing, etc.) must be in compliance with the provisions of this Chapter and State Law, including MAUCRSA.

Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 43 of 379 Page 2955 of 4584 (e) The City may authorize the smoking, vaporizing, and ingestion of Cannabis or Cannabis Products on the Premises of a Microbusiness if all of the following are met:
(1) Access to the area where Cannabis consumption is allowed is restricted to persons 21 years of age and older.
(2) Cannabis consumption is not visible from any public place or nonagerestricted area. (3) Sale or consumption of alcohol or tobacco is not allowed on the Premises.

5.20.140 Medicinal Cannabis and Cannabis Products Testing. (a) Purpose. The purpose and intent of this Section is to permit and regulate the Testing of medicinal Cannabis and Cannabis Products in order to promote the health, safety, morals, and general welfare of the residents and businesses within the City. The City intends to be on the forefront of medicinal Cannabis research and Testing. The City is authorized to regulate this activity pursuant to State Law.
(b) Scope; Medicinal Cannabis Only. This Section permits and regulates Cannabis and Cannabis Products Testing, pursuant to State Law, including MAUCRSA. Subject to the terms of this Chapter, Testing Permits may be issued by the City for the Testing of medicinal Cannabis and Cannabis Products pursuant to and in accordance with State Law, including MAUCRSA. (c) Testing of Cannabis and Cannabis Products requires a Development Agreement with the City and must be located within the applicable Permit Zone. (d) Each Testing Permittee must employ at least one (1) full time quality control personnel employee.
(e) Testing Permittees must operate, and all Cannabis and Cannabis Products must be properly tested by Testing Permittees, in accordance with applicable State Law.
(f) All Testing devices used by a Testing Permittee must be "UL listed," and/or otherwise approved for the intended use by the City's Building Official, the Fire Department or other person designated by the City Manager or designee. (g) Each Testing Permittee must notify the State Department of Public Health and the City Manager, or the City Manager's designee, within one business day after the receipt of notice of any kind that its accreditation has been denied, suspended, or revoked.

SECTION 10. Recognizing that there is a potential conflict between federal and State law, it is the City Council's intention that this Ordinance shall be deemed to comply with applicable State Law and shall defer to such applicable State Law through preemption.

SECTION 11. The City Council determines that it is in the best interest of the residents of the City to allow Commercial Cannabis Activities in compliance with applicable State Law, including MAUCRSA, to be established and operated as permitted uses within certain areas of the City subject to the regulations and restrictions provided in this

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Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 44 of 379 Page 2956 of 4584 Ordinance. It is the City Council's intention that nothing in this Ordinance shall be construed to:

1. Allow a Person to engage in conduct that endangers others or causes a public nuisance.

2. Allow any activity relating to Cannabis that is otherwise not permitted under State law.

SECTION 12. The City Council finds that the actions contemplated by this Ordinance are exempt from the California Environmental Quality Act pursuant to Section 15061 (b )(3) and 15305 of the Guidelines, in that the Ordinance alone does not have the potential for causing a significant effect on the environment. Further permits and approvals will be required before any activity that will affect the environment will be permitted. In addition, Business and Professions Code Section 26055 exempts local ordinances from CEQA that authorizes commercial cannabis activity through discretionary review and approval.

SECTION 13. If any section or provision of this Ordinance is for any reason held to be invalid, unconstitutional, illegal, or unenforceable by any court of competent jurisdiction, or contravened by reason of any preemptive legislation, then such section or provision shall be severed and shall be inoperative, and the remainder of this Ordinance shall remain in full force and effect.

SECTION 14. By regulating Commercial Cannabis Activity, the City is only undertaking to preserve the general welfare through implementing the MAUCRSA. The City Council is not assuming, nor is it imposing on its officers and employees, an obligation for which a breach thereof would expose the City to liability in money damages to any Person who claims that such breach proximately caused injury. To the fullest extent permitted by law, the City shall assume no liability whatsoever, and expressly does not waive sovereign immunity, with respect to any provision of this Ordinance or for the activities of any Cannabis Permittee. To the fullest extent permitted by law, any actions taken by a public officer or employee under the provisions of this Ordinance shall not become a personal liability of any public officer or employee of the City. Nothing in this Ordinance shall be deemed or considered in any respects to constitute authorization to violate any law.

SECTION 15. Inconsistent Provisions. Any provision of the Cudahy Municipal Code or appendices thereto inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and no further, is hereby repealed or modified to the extent necessary to implement the provisions of this Ordinance.

SECTION 16. 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, subs,ection, subdivision, paragraph, sentence, clause or phrase thereof,

Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 45 of 379 Page 2957 of 4584 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 17. 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 a newspaper of general circulation 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 at the / ." ,_, regular meeting of this 11th day of September, 2017. ,.,_,,,_ /4. ~VY

STATE OF CALIFORNIA

COUNTY OF LOS ANGELES

CITY OF CUDAHY
)
)
)
SS:

Chris Garcia
Mayor
I, Richard Iglesias, Deputy City Clerk of the City of Cudahy, hereby certify that the foregoing Ordinance No. 673 was introduced for a first reading on the 14th day of August 2017 and approved for a second reading and adopted by said Council at its regular meeting held on the 11th day of September, 2017 by the following vote, to-wit:

AYES: Markovich, Hernandez, Garcia
)
I
l
NOES: Guerrero
ABSTAIN: None
ABSENT: Sanchez
.. --;' ~ j ~~----'~ -

Richard lgles~a~ / 7 · · · ·-:---___ __
Deputy City B r:I<
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 46 of 379 Page 2958 of 4584 EXHIBIT "A": OVERLAY ZONE
IIABI! NA~ l'!ATIJRl!B
,-.... I._.J Cuclohy Boundary
-Railroad, EXISTING ZONING - Boundaries of Overlay Zone .,r Portion of High Density Residential Zone which shall be available for Medicinal Commercial Cannabis Activity upon rezoning by the City Council by General Plan Amendment, Zoning Map Amendment, or other means.

CUDAHY GENERAL PLAN
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 47 of 379 Page 2959 of 4584 ATTACHMENT B.

City Council Resolution No. 18-17
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 48 of 379 Page 2960 of 4584 RESOLUTION NO.18-17

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF CUDAHY, CALIFORNIA, APPROVING THE
ISSUANCE OF COMMERCIAL CANNABIS PERMIT NO. CCPlS0019 (LOCATION: 4916 CECILIA STREET, APPLICANTS:

CUPER DEVELOPMENT, THE 420 CLUB, GENIUS DISTRIUTION,

GO CUDAHY, DANIEL AND GOLIATH, DAVINA, HERBAL
DRAGON).

WHEREAS, to strengthen the public planning process, encourage private participation in comprehensive planning and reduce the economic risk of development, the Legislature of the State of California adopted Section 65864 et seq. of the California Government Code (the Development Agreement Statute"); and
WHEREAS, the Development Agreement Statute authorizes the City to enter into a property development agreement with any person having legal or equitable interest in real property for the development of such property in order to establish certain development rights; and WHEREAS, in accordance with California law, the City of Cudahy has adopted Municipal Code Chapter 20.28 (Development Agreements) establishing the procedures and requirements for the consideration of development agreement with the City; and WHEREAS, on September 11, 201 7, the City Council for the City of Cudahy passed Ordinance No. 673 establishing regulations and a discretionary review process for the allowance of medicinal-only commercial cannabis activities ( cultivation, distribution, manufacturing, deliveries, micro-business and laboratory testing) in a specified Overlay Zone through a development agreement; and
WHEREAS, all procedures of the California Environmental Quality Act ("CEQA"), California Public Resources Code §21000 et seq., and the CEQA guidelines, title 14 of the California Code of Regulations, chapter 3, §15000 et seq. have been satisfied. The City has found that the proposed Project is Categorically Exempt from California Environmental Quality Act (CEQA) requirements under provisions of CEQA Guidelines Section 15301 -Existing Facilities.

This exemption applies to projects characterized as alterations to existing facilities meeting the conditions described in Section 15301;
WHEREAS, the City of Cudahy Planning Commission ("Planning Commission") conducted a properly noticed public hearing to consider approval of a Commercial Cannabis Permit and a Development Agreement, at which testimony and evidence, both written and oral, were presented to and considered by the Planning Commission; and WHEREAS, the City Council shall approve a development agreement by ordinance; and WHEREAS, subsequent to receipt of the recommendation of the Planning Commission, the City Council conducted a properly noticed public hearing to consider the approval of a Commercial Cannabis Permit No. CCP18-0019 and Development Agreement(s) Nos. DA18-019C, DA18-012C, DA18-016C, DA18-018C, DA18-020C, DA18-021C and DA18-022C, at which testimony and Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 49 of 379 Page 2961 of 4584 Resolution No. 18-17

evidence, both written and oral, were presented to and considered by the City Council.

NOW THEREFORFE, THE CITY COUNCIL OF THE CITY OF CUDAHY
DOES HEREBY RESOLVE, DECLARE AND DETERMINE AS FOLLOWS:

SECTION 1. RECITALS
That the above Recitals are true and correct and are incorporated as though fully set forth herein.

SECTION 2. APPROVAL OF COMMERCIAL CANNABIS PERMIT
That the City Council hereby approves Commercial Cannabis Permit No. CCP18-0019, subject to the terms and conditions stated therein, to allow a Commercial Cannabis Facility for the Site located at: 4916 Cecilia Street. A copy of the permit is attached hereto and incorporated herein by this reference as Exhibit "A." The Commercial Cannabis Permit shall be issued upon execution by the City of a Development Agreement for the Site.

SECTON3. SEVERABILITY
That the City Council declares that, should any provision, section, paragraph, sentence or word of this Resolution be rendered or declared invalid by any final court action in a court of competent jurisdiction or by reason of any preemptive legislation, the remaining provisions, sections, paragraphs, sentences or words of this Resolution as hereby adopted shall remain in full force and effect.

PASSED, APPROVED, AND ADOPTED by the City Counc~f the City regular meeting on this 15th day of May, 2018. / /
ATTEST:

Richard
Deputy City
Iglesias
Clerk
~
u.

Chris Garcia
Mayor
udahy at its
l
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 50 of 379 Page 2962 of 4584 Resolution No. 18-17

STATE OF CALIFORNIA )

CERTIFICATION
COUNTY OF LOS ANGELES ) SS:

CITY OF CUDAHY )
I, Richard Iglesias, Deputy City Clerk of the City of Cudahy, do hereby certify that the above and foregoing Resolution No.18-17, signed by the Mayor and attested by the Deputy City Clerk at a meeting of said City Council of the City of Cudahy held on this 15th day of May 2018, and that said Resolution was adopted by the following votes to wit:

A YES: Markovich, Hernandez, and Garcia
NOES: None
ABSTAIN: None
ABSENT: Guerrero and Sanchez
Richard Iglesias
Deputy City Cl k
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 51 of 379 Page 2963 of 4584 Resolution No. 18-17

EXHIBIT "A"

COMMERCIAL CANNABIS PERMIT

SEEATTACHMENT
[The Permit will be based upon the Staff Report with
Conditions of Approval and Issued in a Letter to Follow] Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 52 of 379 Page 2964 of 4584 ATTACHMENT C.

CCP18-0019 Conditions of Approval
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 53 of 379 Page 2965 of 4584 Planning Commission Hearing – April 30, 2018
CCP18-0019

CONDITIONS OF APPROVAL
COMMERCIAL CANNABIS PERMIT NO, CCP18-0019
DEVELOPMENT AGREEMENT NOS. DA18-012C, DA18-016C,
DA DA18-018C-DA18-022C
4916 CECLILA STREET - CUPER DEVELOPMENT, ET. AL.

GENERAL CONDITIONS OF APPROVAL
Condition of Approval No. 1 - Financial Responsibility for Compliance Monitoring and Enforcement
a. Cost Responsibilities: The Permittee shall bear the full costs of all City staff time, materials, and City-retained consultants associated with condition compliance review and monitoring, CEQA mitigation monitoring, other permit monitoring programs, and enforcement activities, actions, and processes conducted pursuant to the City of Cudahy Municipal Code (§ 5.20.060) related to this Commercial Cannabis Permit (CCP) and Development Agreement (DA). Such condition compliance review, monitoring and enforcement activities may include (but are not limited to): periodic site inspections; preparation, review, and approval of studies and reports; review of permit conditions and related records; enforcement hearings and processes; drafting and implementing compliance agreements; and attending to the modification, suspension, or revocation of permits. Costs will be billed at the rates set forth in the Planning Division or other applicable City Fee Schedule, and at the contract rates of City-retained consultants, in effect at the time the costs are incurred.

Establishment of Compliance Account: Within 10 calendar days of the effective date of the final decision approving this CCP, the Permittee shall submit a new, updated, and completed reimbursement agreement for Condition Compliance Case No. CCP18-0019 in a form provided by the City, obligating the Permittee to pay all condition compliance review, monitoring, and enforcement costs, and any civil administrative penalties, subject to the Permittee’s right to challenge all such charges and penalties prior to payment.
b. Billing Process: The Permittee shall pay all City invoices within 30 days of receipt thereof. Failure to timely pay an invoice shall subject the Permittee to late fees and charges set forth in the City Fee Schedule, and shall be grounds for suspension, modification, or revocation of this CCP. The Permittee shall have the right to challenge any charge or penalty prior to payment.

Attachment I Page 114 of 1494 Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 54 of 379 Page 2966 of 4584 Planning Commission Hearing – April 30, 2018
CCP18-0019
Condition of Approval No. 2 - Defense and Indemnification a. The Permittee shall defend, at the Permittee's sole expense with legal counsel acceptable to the City, against any and all claims, actions, or proceedings against the City, any other public agency with a governing body consisting of the members of the City Board of Supervisors, or any of their respective board members, officials, employees and agents (collectively, “Indemnified Parties”) arising out of or in any way related to the City’s issuance, administration, or enforcement of this CUP. The City shall promptly notify the Permittee of any such claim, action or proceeding and shall cooperate fully in the defense.
b. The Permittee shall also indemnify and hold harmless the Indemnified Parties from and against any and all losses, damages, awards, fines, expenses, penalties, judgments, settlements, or liabilities of whatever nature, including but not limited to court costs and attorney fees (collectively, “Liabilities”), arising out of or in any way related to any claim, action or proceeding subject to subpart (a) above, regardless of how a court apportions any such Liabilities as between the Permittee, the City, and/or third parties.
c. Except with respect to claims, actions, proceedings, and Liabilities resulting from an Indemnified Party’s sole active negligence or intentional misconduct, the Permittee shall also indemnify, defend (at Permittee’s sole expense with legal counsel acceptable to City), and hold harmless the Indemnified Parties from and against any and all claims, actions, proceedings, and Liabilities arising out of, or in any way related to, the construction, maintenance, land use, or operations conducted pursuant to this CCP, regardless of how a court apportions any such Liabilities as between the Permittee, the City, and/or third parties. The City shall promptly notify the Permittee of any such claim, action, or proceeding and shall cooperate fully in the defense.
d. Neither the issuance of this CCP, nor compliance with the conditions hereof, shall relieve the Permittee from any responsibility otherwise imposed by law for damage to persons or property; nor shall the issuance of this CCP serve to impose any liability upon the Indemnified Parties for injury or damage to persons or property.

Condition of Approval No. 3 Relationship of CCP Conditions, Laws, and Other Entitlements
The Permittee shall implement the Project in compliance with all applicable requirements and enactments of federal, state, and local authorities. In the event of conflict between various requirements, the more restrictive requirements shall apply. In the event the City Manager determines that any CCP condition contained herein is in conflict with any other CPP condition contained herein, when principles of law do not provide to the contrary, the CCP condition most protective of public health and safety and environmental resources shall prevail to the extent feasible.

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No condition of this CCP for uses allowed by the City Municipal Code shall be interpreted as permitting or requiring any violation of law, lawful rules, or regulations, or orders of an authorized governmental agency. Neither the approval of this CPP, nor compliance with the conditions of this CPP, shall relieve the Permittee from any responsibility otherwise imposed by law for damage to persons or property.

The Permittee shall obtain a business tax certificate and regulatory licenses for the operation of Commercial Cannabis operations.

Condition of Approval No. 4 - Contact Person
PURPOSE: To establish a contact person responsible for responding to City and/or community complaints.

The Permittee shall designate a contact person(s) to respond to complaints from citizens and the City which are related to the permitted uses of this CUP.

The Permittee shall provide the City with the contact information (e.g., name and/or position title, address, business and cell phone numbers, and email addresses) of the Permittee’s Community Agent who receives all orders, notices, and communications regarding matters of condition and code compliance at the Project site.

Timing: Prior to the issuance of a Zoning Clearance for use inauguration, the Permittee shall provide the Planning Division the contact information of the Permittee’s field agent(s) for the Project file. If the address or phone number of the Permittee’s field agent(s) should change, or the responsibility is assigned to another person, the Permittee shall provide Planning Division staff with the new information in writing within three calendar days of the change in the Permittee’s field agent.

The Planning Division maintains the contact information provided by the Permittee in the Project file. The Planning Division has the authority to periodically confirm the contact information consistent with the requirements of this permit.

Condition of Approval No. 5 - Resolution of Complaints
PURPOSE: To establish a process to resolve complaints.

The following process shall be used to resolve complaints related to the Project:
a. The Permittee shall post the telephone number for the designated Contact Person as identified pursuant to Condition No. 4 in a visible location on the site. The Contact Person shall be available via telephone on a 24-hour basis. Persons with concerns about an activity as it is occurring may directly contact the Contact Person;

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b. If City staff receives a written complaint about the Project, the City Manager, or his designee, may contact the Permittee’s Contact Person or the Permittee to request information regarding the alleged violation; and
c. If, following a complaint investigation by City staff, a violation of the City Municipal Code or a condition of this CCP is confirmed, City staff may initiate enforcement actions, in accordance with City Municipal Code.

Condition of Approval No. 6 - Reporting of Major Incidents PURPOSE: To ensure that the Planning Director is notified of major incidents associated with, or resulting from, the Project, he Permittee shall immediately notify the Planning Director by telephone, email, FAX, and/or voicemail of any incidents (e.g., fires, explosions, spills, landslides, or slope failures) that could pose a hazard to life or property inside or outside the Project Site.

Upon request of any City, County or State regulatory agency, the Permittee shall provide a written report of any incident that shall include, but not limited to: a description of the facts of the incident; the corrective measures used, if any; and the steps taken to prevent a recurrence of the incident.

Timing: The Permittee shall provide the written report to the requesting agency and Planning Division within seven days of receiving the request.

The Planning Division maintains any documentation provided by the Permittee related to major incidents in the Project file.

Condition of Approval No. 7 - Change of Permittee
To ensure that the Planning Division is properly and promptly notified of any change of Permittee, the Permittee shall file, as an initial notice with the Planning Director, the new name(s), address(es), telephone/FAX number(s), and email addresses of the new owner(s), lessee(s), operator(s) of the permitted uses, and the company officer(s). The Permittee shall provide the Planning Director with a final notice once the transfer of ownership and/or operational control has occurred.

The initial notice must be submitted with the new Permittee’s contact information. The final notice of transfer must include the effective date and time of the transfer and a letter signed by the new Property Owner(s), lessee(s), and/or operator(s) of the permitted uses acknowledging and agreeing to comply with all conditions of this CCP.

Timing: The Permittee shall provide written notice to the Planning Director 10 calendar days prior to the change of ownership or change of Permittee. The Permittee shall provide the final notice to the Planning Director within 15 calendar days of the effective date of the transfer.

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The Planning Division maintains notices submitted by the Permittee in the Project file and has the authority to periodically confirm the information consistent with the requirements of this permit.

COMMERCIAL CANNABIS CULTIVATION (ORD. 673, SEC 5.20.100) PURPOSE: The purpose and intent of this section is to permit and regulate the commercial Cannabis Cultivation in order 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.

Condition of Approval No. 8 - Cultivation Operating Fees.

Operator/Permittee must pay all operating fees as stipulated within Development Agreement No. DA18-018C and DA18-019C.

Condition of Approval No. 9 – Outdoor Cultivation.

Outdoor Cultivation is prohibited within the City.

Condition of Approval No. 10 – Indoor Cultivation.

Indoor Cultivation is permitted only on properties within the applicable Permit Zone with a valid Cultivation Permit and other requisite permits and entitlements. Indoor Cultivation may include growing Cannabis plants, harvesting Cannabis plants, and drying Cannabis flowers but shall not include the Manufacturing or of Cannabis Products, unless otherwise authorized pursuant to this Chapter.

Condition of Approval No. 11 – Cultivation Security Control.

Entrance to the Cultivation area, and all storage areas, of the applicable Premises shall be locked at all times and under the control of the staff of such Premises.

Prior to the issuance of a Zoning Clearance for Use Inauguration, the Permittee shall prepare and submit a security plan compliant with and applicable State Law, including MAUCRSA, to the City Manager, or his designee and obtain approval of said plan.

Condition of Approval No. 12 – Zoning and Land Use.

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 ng K-12 instruction.

COMMERCIAL CANNABIS PRODUCTS MANUFACTURING (ORD. 673, SEC

5.20.110)
PURPOSE: The purpose and intent of this Section is to permit and regulate the commercial Cannabis Products Manufacturing to promote the health, safety, morals, and

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general welfare of the resident and businesses within the City. The City is authorized to regulate this activity pursuant to State Law.

Condition of Approval No. 13 - Manufacturing Operating Fees.

Operator/Permittee must pay all operating fees as stipulated within Development Agreement Nos. DA18-019C, DA18-021C and DA18-022C.s
Condition of Approval No. 14 – Manufacturing Properties.

Commercial Cannabis Products Manufacturing is a permitted use only on properties within the applicable Permit Zone with a valid Cultivation Permit and other requisite permits and entitlements.

Condition of Approval No. 15 – Quality Control Employee.

The Permittee must employ at least one (1) member of its personnel dedicated full time to quality control.

Condition of Approval No. 16 – Standard Operating Procedures and Batch Record.

The Manufacturing Permittee must establish standard operating procedures and batch record that comply with current good manufacturing practices and applicable State Law, including MAUCRSA.

Condition of Approval No. 17 – Labeling and Packaging.
a) All Cannabis Products produced by a Manufacturing Permittee must be packaged in child resistant containers prior to leaving the Premises for such Manufacturing Permittee in accordance with applicable State Law, including MAUCRSA. b) All Cannabis Products produced by a Manufacturing Permittee must be labeled in compliance with applicable State Law, including MAUCRSA. c) Labeling Requirements – Edibles
i. Before a Manufacturing Permittee prepares any edible Cannabis or edible Cannabis Product for retail sale, it shall be labeled and placed in tamperevident packaging which at least meets the requirements of State Law, including, but not limited to, MAUCRSA.
ii. All items to be sold or distributed shall be individually wrapped at the original point of preparation by the Cannabis Permittee.
iii. Labeling must include a warning if nuts or other known allergens are used and must include the total weight (in ounces or grams) of Cannabis in the package, not to exceed ten (10) milligrams of tetrahydrocannabinol (THC) per serving.
iv. A warning that the item is a medication and not a food must be clearly legible on the front of the package and/or must comply with state packing requirements.
v. The package must have a label warning that the product is to be kept away from children.

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vi. The label must also state that the product contains Cannabis and must specify the date of Manufacture and the Manufacture Permittee’s information, including, but not limited to, address, and phone number. vii. Distribution must be in a properly labeled opaque package when distributed. viii.The City Manager, or designee, may impose additional packaging and labeling requirements on Cannabis or Cannabis Products.

Condition of Approval No. 18 – Use of Solvents.
a) Manufacturing Permittees may conduct Manufacturing using any type of solvents, including Volatile Solvents, or Manufacturing processes if such Manufacturing complies with the requirements of this Chapter and State or local law, including but not limited to Health and Safety Code Section 11362.775 (or any successive State Law) all applicable fire and building codes in the City and any other laws of the City designed to ensure the safety of such operation.
b) Manufacturing Permittees using Volatile Solvents for Manufacturing Cannabis Products must operate in a manner to reduce the risk of explosion or danger to public health, including through the use of a close-loop or solvent dispersion system consistent with the requirements of Health and Safety Code Section 11362.775 (or any successive State Law).

Condition of Approval No. 19 – Use of Hazardous and Flammable Materials.

If hazardous materials, flammable gas, flammable liquefied gas, flammable and combustible liquids, or other flammable material, as those terms are defined in California Fire Code Section 202, are to be used in the processing of commercial Cannabis, then the provisions of California Fire Code Section 407 shall be applicable where hazardous materials are subject to permits under California Fire Code Section 50 (Hazardous Materials) are located on the Premises or where required by the applicable building or fire official.

Timing: Prior to the issuance of a Temporary/Certificate of Occupancy, the Permittee must obtain LA County Fire Approval for site design, water and access, and hazardous materials.

Condition of Approval No. 20 – Compressed Gases.

Storage, use, and handling of compressed gases in compressed gas containers, cylinders, tanks, and systems shall comply with California Fire Code Chapter 53. Partially full compressed gas containers, cylinders, or tanks containing residual gases shall be considered as full for the purposes of the controls required. Compressed gases classified as hazardous materials shall also comply with California Fire Code Chapter 50 for general requirements and California Fire Code Chapter 53 addressing specific hazards, including California Fire Code Chapter 58 (Flammable Gases), California Fire Code Chapter 60 (Highly Toxic and Toxic Materials), California Fire Code Chapter 63 (Oxidizers, Oxidizing Gases and Oxidizing Cryogenic Fluids, and California Fire Code Chapter 64 (Pyrophoric

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Materials). Prevention, control, and mitigation of dangerous conditions related to storage, use, dispensing, mixing, and handling of flammable and combustible liquids shall be in accordance with California Fire Code Chapters 50 and 57.

Timing: Prior to the issuance of a Temporary/Certificate of Occupancy, the Permittee must obtain LA County Fire Approval for site design, water and access, and hazardous materials.

COMMERCIAL CANNABIS AND CANNABIS PRODUCTS RETAIL DELIVERY (ORD. 673, SEC 5.20.120)
PURPOSE: The purpose and intent of this Section is to regulate the Retail Delivery of commercial Cannabis and Cannabis Products in order to promote the health, safety, and general welfare of the residents and businesses within the City. The City is authorized to regulate this activity pursuant to the State Law.

Condition of Approval No. 21 – Retail Delivery Operating Fees.

Operator/Permittee must pay all operating fees as stipulated within Development Agreement Nos DA18-012C and DA18-020C.

Condition of Approval No. 22 – Retail Delivery Permitted Use Locations.

Retail Delivery of Cannabis and Cannabis Products is a permitted use only on properties within the applicable Permit Zone with a valid Retail Delivery Permit and other requisite permits and entitlements.

Condition of Approval No. 23 – Retail Delivery Customers.

The Retail Delivery of commercial Cannabis and Cannabis Products may only include the Retail Delivery of Cannabis and Cannabis Products by a Retail Delivery Permittee to a customer, patient or primary caregiver, in accordance with State Law, including MAUCRSA.

Condition of Approval No. 24 – Retail Delivery Security. a) Retail Delivery Permittees shall implement sufficient security measures to both deter and prevent unauthorized entrance into areas containing Cannabis and Cannabis Products and theft of Cannabis and Cannabis Products from the Retail Delivery Establishment or employees participating in Retail Delivery. b) All Cannabis and Cannabis Products shall be stored in a secured and locked room, safe, or vault, and in a manner as to prevent diversion, theft, or loss.

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Condition of Approval No. 25 – Retail Delivery Premises.

Individuals shall not be allowed to remain on the Premises comprising of the Retail Delivery Establishment unless they are engaging in activity expressly related to the operations of the Retail Delivery Establishment or are a customer.

Condition of Approval No. 26 – Retail Delivery 24 Hour Notifications.

A Retail Delivery Permittee shall notify the City Manager or the City Manager’s designee within 24 hours of discovering any of the following:
a) Significant discrepancies identified during inventory. The level of significance shall be determined by the City Manager or the City Manager’s designee. b) Diversion, theft, loss, or any criminal activity involving the Retail Delivery Establishment or any agent or employee of the Retail Delivery Establishment. c) The loss or unauthorized alteration of records related to Cannabis, Cannabis Products, registered qualifying patients, primary caregivers, or Retail Delivery Establishment agents or employees.
d) Any other material breach of security.

Condition of Approval No. 27 – Retail Delivery Compliance.

The Retail Delivery of commercial Cannabis and Cannabis Products shall comply with all State and local Law, including all laws requiring presentment of government-issued identification card, physician's recommendation, or commercial Cannabis identification card at the time of initial purchase.

Condition of Approval No. 28 – Retail Delivery Physician Recommendation Verification.

With respect to commercial Cannabis, physicians' recommendations for commercial cannabis use shall be verified by a Retail Delivery Permittee prior to the Retail Delivery any commercial Cannabis to a qualified patient or primary caregiver and at least every six months thereafter.

Condition of Approval No. 29 – Retail Delivery Physician Employment.

A Retail Delivery Establishment may not employ or enter into any agreements with any physicians who recommend commercial Cannabis; Physician Services are prohibited from any and all Retail Delivery Establishments.

Condition of Approval No. 30 – Retail Delivery Inspection, Quality Testing and Quality Assurance.
a) A Retail Delivery Permittee shall inspect all Cannabis and Cannabis Products received for quality assurance prior to the Retail Delivery to any Person. b) The Retail Delivery of Cannabis and Cannabis Products shall occur only after such Cannabis and Cannabis Products have been inspected and quality tested in accordance with applicable State Law, including MAUCRSA.

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Condition of Approval No. 31 – Retail Delivery Monthly Inventories.

Each Retail Delivery Establishment shall do regular monthly inventories and record the total quantity of Cannabis and Cannabis on the Premises. These records shall be maintained for three years from the date created and shall be open to inspection by the City Manager, the City Manager's Designee, and law enforcement.

Condition of Approval No. 32 – Retail Delivery Registration.

A Retail Delivery Permittee shall register with the City each location where Cannabis or Cannabis Products are stored for purposes of Retail Delivery by such Retail Delivery Permittee within the City.

Condition of Approval No. 33– Retail Delivery Business Records.

A Retail Delivery Establishment shall maintain customer and patient and other business records in a secure location (including electronically or cloud-based) that is compliant with, as applicable, HIPAA and other federal and state privacy laws.

Condition of Approval No. 34 – Retail Delivery Vehicle Driver Documents.

During the Retail Delivery of Cannabis or Cannabis Products, each vehicle driver shall carry a copy of the Retail Delivery Permit, a copy of the Retail Delivery request, a form of government-issued identification, and all other information required by State and local Law. The driver shall present these documents upon the request of law enforcement, the City Manager, or the City Manager's designee.

Condition of Approval No.35 – Retail Delivery Labeling and Packaging.

Prior to Retail Delivery of Cannabis and Cannabis Products, such Cannabis and Cannabis Products shall be labeled and placed in a tamper-evident package. Labels and packages of Cannabis and Cannabis Products shall, at minimum, meet the requirements specified under State Law, including MAUCRSA.

Condition of Approval No. 36 – Retail Delivery Requirements.

All Retail Delivery vehicles shall:
a) Be equipped with, and utilize, a vehicle alarm system. b) Have and utilize a direct communication system with the related Retail Delivery Establishment.
c) Keep all Cannabis and Cannabis Products in a secure and locked container. d) Have an internal partition between the driver and all passengers from the Cannabis and Cannabis Products storage containers that prevents access by the driver and passengers to all cannabis products from inside the vehicle. e) Not carry more Cannabis and Cannabis Products than allowed by State and local Law and required to fulfill all immediate Retail Delivery requests f) Not display any logo, signage, or other information that identifies, advertises, or lists the services or the products offered.

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COMMERCIAL CANNABIS AND CANNABIS PRODUCTS DISTRIBUTION (ORD. 673, SEC 5.20.130)
PURPOSE: The purpose and intent of this Section is to permit and regulate the Distribution of Cannabis and Cannabis Products between Cannabis Permittees in order 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.

Condition of Approval No. 37 - Distribution Operating Fees.

Operator/Permittee must pay all operating fees as stipulated within Development Agreement No. DA18-016C and DA18-019C.

Condition of Approval No. 38 – Distribution Development Agreement and Location.

Distribution of Cannabis and Cannabis Products requires a Development Agreement with the City and must be located within the applicable Permit Zone.

Condition of Approval No. 39 - Distribution Activities.

Distribution activities includes the receiving and releasing of Cannabis and Cannabis Products for inspection, Testing, and quality assurance, as required under applicable State Law and such other activities as are permitted pursuant to State Law.

Condition of Approval No. 40 – Distribution Customers.

A Distribution Permittee shall only Distribute Cannabis and Cannabis Products between Cannabis Permittees or to facilities or portions of facilities wholly controlled by such Distribution Permittee to the extent permitted by State Law.

Condition of Approval No. 41 – Distribution Quality Assurance. a) A Distribution Permittee shall inspect all Cannabis and Cannabis Products received by it for quality assurance prior to Distributing to any Cannabis Permittee, as required under applicable State Law.
b) A Distribution Permittee shall Distribute Cannabis and Cannabis Products to Cannabis Permittees only after such Cannabis and Cannabis Products have been inspected and quality tested in accordance with applicable State Law, including MAUCRSA.

Condition of Approval No. 42 – Distribution Registration.

A Distribution Permittee shall register with the City each location within the City where Cannabis and Cannabis Products are stored for purposes of Distribution activities within the City.

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Condition of Approval No. 43 – Multiple Permit Types.

A Distribution Permittee may also hold any other Permit type to the extent permitted by State Law. To the extent permitted by State law, a Distribution Permittee that also holds another Permit type may self-distribute its Cannabis Products.

OTHER OPERTIONAL CONDITIONS
PURPOSE: To ensure compliance with all applicable City, State and other regulatory agency requirements.

Condition of Approval No. 44 – Final Floor Plan Approval PURPOSE: To ensure Operators perform all proposed Tenant Improvements timely and applicable City fees are assessed accurately pursuant to the proposed project request.

Permittee must submit to and obtain approval from the City Manager, or his designee, on all proposed Final Floor Plans. Final Floor Plan must address odor control, waste management, waste water filtration and all other operational information requested by the City.

All Final Floor Plans shall be stamped and dated by the Planning Department upon approval. Changes to the floor plan design or other elements (including, but not limited to security, fire or hazmat details) require administrative approval by the Planning Department, prior to any construction activity or Building Permit Issuance.

Timing: Prior to Zoning Clearance for Use Inauguration, Permittee shall prepare and submit a Final Floor Plan which demonstrates compliance with all City and State Commercial Cannabis regulations.

Condition of Approval No. 45 – Payment of Development Agreement Fees Operator(s) must pay all required DA fees in accordance with DA terms. Failure to pay fees, as assessed by the City Manager, will constitute a breach of the DA and may result in suspension or immediate revocation of the DA.

Condition of Approval No. 46 – Additional Plans and Approvals Purpose: To ensure all Commercial Cannabis facilities meet the development standards of the zoning code, policies, goals and programs of the general plan and City economic development activities—including City beautification and future public improvement projects.

A. Landscape Plan – The Operator must submit a landscaping plan, designed by a licensed landscape architect or arborist. The plan must include a fivefoot landscaped dedication measured from the property line, as illustrated on the approved Site Plan. The plan must include drought tolerant desert plants, approved by the City.

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B. Fencing Plan – Fencing must be provided along the front perimeter of all Commercial Cannabis facilities. Fencing may be constructed between 8 feet and 10 feet in the front and up to 15 feet in the back.

Materials: Corrugated metal, wrought iron, concrete and block wall are all allowed materials. Alternative materials may be allowed with City approval. Chain-link and razor wire are strictly prohibited.

Fences may be required to be constructed 5 feet from the property line to allow for future City improvements. All fencing plans must be submitted to and approved by the City prior to construction.

C. Façade Improvement Plan - All new Commercial Cannabis facilities must submit a Façade Improvement Plan for City approval. The plan must include new paint, siding or other building improvement materials, in a color scheme approved by the City. Plans must also include new paving, as needed, parking striping, and other site improvements, as determined by the City.

D. LA County Public Health Permit – The Operator must submit obtain a Cannabis Public Health Permit from the Los Angeles County Public Health.

E. City Business License – All operators must file for a City business license to conduct business within the City, pay all required business license fees and obtain a City Business License prior to conducting sales transactions in the City.

Timing: Prior to Building Permit, all plans and agency permits must be secured by the Operator(s).

Condition of Approval No. 47 – Site Maintenance
PURPOSE: To ensure that the Project site is maintained in a neat and orderly manner so as not to create any hazardous conditions or unsightly conditions which are visible from outside of the Project site.

The Permittee shall maintain the Project site in a neat and orderly manner, and in compliance with the Project description. Only equipment and/or materials which the City Manager, or his designee, determines to substantially comply with the Project description shall be stored within the Project site during the life of the Project.

The Permittee shall maintain the Project site in compliance with Condition No. 1 and the approved plans for the Project.

Monitoring and Reporting: The City Building Inspector, City Cannabis Enforcement staff, or Planning Department staff have the authority to conduct periodic site inspections to ensure the Permittee’s ongoing compliance with this condition.

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Condition of Approval No. 48 – Commercial Cannabis Permit (CCP) Modification Prior to undertaking any operational or construction-related activity which is not expressly described in these conditions, the Permittee shall first contact the City Manager, or his designee, to determine if the proposed activity requires a modification of this CCP. The City Manager may, at his sole discretion, require the Permittee to file a written and/or mapped description of the proposed activity in order to determine if a permit modification is required.

Condition of Approval No. 49 - Construction Activities
Prior to any construction, the Permittee shall obtain a Zoning Clearance for construction from the Planning Division and a Building Permit from the Building and Safety Division.

Condition of Approval No. 50 - Acceptance of Conditions and Schedule of Enforcement Responses
The Permittee’s acceptance of this CCP and/or commencement of construction and/or operations under this CCP shall constitute the Permittee’s formal agreement to comply with all conditions of this CCP. Failure to abide by and comply with any condition of this CCP shall constitute grounds for enforcement action provided in the City Municipal Code which shall include, but is not limited to, the following:
a. Public reporting of violations to the Planning Commission and/or City Council; b. Suspension of the permitted land uses;
c. Modification of the CCP conditions listed herein;
d. Recordation of a “Notice of Noncompliance” on the deed to the subject property; e. The imposition of civil administrative penalties; and/or f. Revocation of this CUP.

The Permittee is responsible for being aware of and complying with the CCP conditions and all applicable federal, state, and local laws and regulations. In the event of any actual and direct conflict between these Conditions of Approval and the terms of the approved Development Agreement, the terms of the Development Agreement shall control and take precedence.

Condition of Approval No. 51. - Time Limits
A. Use inauguration: The approval decision for this CCP becomes effective upon the expiration of the 15-day appeal period following the approval decision, or when any appeals of the decision are finally resolved. Once the approval decision becomes effective, the Permittee must obtain a Zoning Clearance for Use Inauguration to initiate the land uses set forth herein. i. This CCP shall expire and become null and void if the Permittee fails to obtain a Zoning Clearance for use inauguration within 90 days –from the date the approval decision of this CCP becomes effective. The City

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Manager may grant an extension of time to the Permittee in order to obtain the Zoning Clearance for use inauguration if the Permittee can demonstrate to the satisfaction of the City Manager that the Permittee has made a diligent effort to implement the Project, and the Permittee has requested the time extension in writing at least 30 days prior to 90- day expiration date.
ii. Within 90 days of the permit effective date, the Permittee must complete construction of Phase I, as indicated on the approved Final Floor plan and obtain a Temporary Certificate of Occupancy from the City Building Department. The City Manager may grant an extension of time to the Permittee to obtain the Zoning Clearance for use inauguration if the Permittee can demonstrate to the satisfaction of the City Manager that the Permittee has made a diligent effort to implement the Project iii. Within 180 of the permit effective date, the Permittee must complete all Tenant Improvements and construction as indicated on the approved Final Floor Plan and obtain a Certificate of Occupancy from the City Building Department. The City Manager may grant an extension of time to the Permittee to obtain the Zoning Clearance for construction if the Permittee can demonstrate to the satisfaction of the City Manager that the Permittee has made a diligent effort to implement the Project. iv. Prior to the issuance of the Zoning Clearance for construction or use inauguration, all fees and charges billed to that date by the City, as well as any fines, penalties, and sureties, must be paid in full. After issuance of the Zoning Clearance for Use Inauguration, any final billed processing fees must be paid within 30 days of the billing date or the City may revoke this CCP.

B Permit Life or Operations Period: This CCP will expire on April 30, 2028.

However, the Development Agreement contains terms and conditions for extending operations for an additional 10 years. The lack of additional notification of the expiration date provided by the City to the Permittee shall not constitute grounds to continue the uses that are authorized by this CCP after the CCP expiration date. The uses authorized by this CCP may continue after the CCP expiration date if:
(1) The Permittee has filed a permit modification application 90 days prior to April 30, 2018; and
(2) The City decision-maker grants the requested modification.

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The uses authorized by this CCP may continue during processing of a timely-filed modification application, at the City Managers sole discretion.

In the event of any actual and direct conflict between these Conditions of Approval and the terms of the approved Development Agreement, the terms of the Development Agreement shall control and take precedence. [end of conditions]

ATTACHMENT D.

Ordinance No. 680
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 70 of 379 Page 2982 of 4584 ORDINANCE NO. 680

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF

CUDAHY, CALIFORNIA, APPROVING THE DEVELOPMENT

AGREEMENT BY AND BETWEEN THE CITY OF CUDAHY AND
DANIEL & GOLIATH, [AN INDIVIDUAL, LIMITED LIABILITY
COMPANY, CORPORATION]
WHEREAS, to strengthen the public planning process, encourage private participation in comprehensive planning and reduce the economic risk of development, the Legislature of the State of California adopted Section 65864 et seq. of the California Government Code (the Development Agreement Statute"); and
WHEREAS, the Development Agreement Statute authorizes the City to enter into a property development agreement with any person having legal or equitable interest in real property for the development of such property in order to establish certain development rights; and WHEREAS, in accordance with California law, the City of Cudahy has adopted Municipal Code Chapter 20.28 (Development Agreements) establishing the procedures and requirements for the consideration of development agreement with the City; and WHEREAS, on September 11, 2017, the City Council for the City of Cudahy passed Ordinance No. 673 establishing regulations and a discretionary review process for the allowance of medicinal-only commercial cannabis activities ( cultivation, distribution, manufacturing, deliveries, micro-business and laboratory testing) in a specified Overlay Zone through a development agreement; and
WHEREAS, all procedures of the California Environmental Quality Act ("CEQA"), California Public Resources Code §21000 et seq., and the CEQA guidelines, title 14 of the California Code of Regulations, chapter 3, §15000 et seq. have been satisfied. The City has found that the proposed Project is Categorically Exempt from California Environmental Quality Act (CEQA) requirements under provisions of CEQA Guidelines Section 15301 - Existing Facilities.

This exemption applies to projects characterized as alterations to existing facilities meeting the conditions described in Section 15301;
WHEREAS, the City of Cudahy Planning Commission ("Planning Commission") conducted a properly noticed public hearing to consider the Development Agreement (as defined below), at which testimony and evidence, both written and oral, were presented to and considered by the Planning Commission; and
WHEREAS, the City Council shall approve a development agreement by ordinance; and WHEREAS, subsequent to receipt of the recommendation of the Planning Commission, the City Council conducted a properly noticed public hearing to consider the Development Agreement, at which testimony and evidence, both written and oral, were presented to and considered by the City Council.

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

SECTION 1. RECITALS
That the above Recitals are true and correct and are incorporated as though fully set forth herein.

SECTION 2. APPROVAL OF DEVELOPMENT AGREEIViENT
That the City Council hereby approves the Development Agreement By and Between the City of Cudahy and Daniel & Goliath, [an individual, limited liability company, corporation] ("Development Agreement"), a copy of which is attached h~reto and incorporated herein by this reference as Exhibit "A," subject to the terms and conditions stated therein.

SECTION 3. SEVERABILITY
That the City Council declares that, should any provision, section, paragraph, sentence or word of this Ordinance be rendered or declared invalid by any final court action in a court of competent jurisdiction or by reason of any preemptive legislation, the remaining provisions, sections, paragraphs, sentences or words of this Ordinance as hereby adopted shall remain in full force and effect.

SECTION 4. EFFECTIVE DATE OF ORDINANCE
That this Ordinance shall take effect thirty (30) days after its second reading by the City Council.

SECTION 5. EFFECTIVE DATE OF DEVELOPMENT AGREEMENT
The Development Agreement shall not be executed by the City until on or after the effective date of the Ordinance.

SECTION 6. RECORDATION OF DEVELOPMENT AGREEEMENT
Tp.at the City Clerk is hereby directed to record the fully executed Development Agreement with the County Recorder for the County of Los Angeles no later than ten (10) days after its execution.

SECTION 7. CERTIFICATION
That the City Clerk shall certify to the passage of this Ordinance and shall cause the same to be published according to law.
2 l
J
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 72 of 379 Page 2984 of 4584 Ordinance No. 680

PASSED, APPROVED AND ADOPTED by the City Council of the City of Cudahy at its regular meeting of this 5th day of June, 2018.

ATTEST:
~ Richard
Deputy City
Iglesias
Cler
~
3 Chris Garcia
Mayor
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 73 of 379 Page 2985 of 4584 Ordi11cu1ce 1,Jo. 680

STATE OF CALIFORNIA

COUNTY OF LOS ANGELES

CITY OF CUDAHY
)
)
)

CERTIFICATION
SS:

I, Richard Iglesias, Deputy City Clerk of the City of Cudahy, hereby certify that the foregoing Ordinance No. 680 was introduced for a first reading on the 15th day of May, 2018 and approved for a second reading and adopted by said Council at its regular meeting held on the 5th day of June, 2018 by the following vote, to-wit:

A YES: Markovich, Hernandez, and Garcia
NOES: None
ABSTAIN: Sanchez
ABSENT: None
--~ - - Richard Iglesias
Deputy City Clerk
4 Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 74 of 379 Page 2986 of 4584 Ordimmcc No. 6tW

EXHIBIT "A"

DEVELOPMENT AGREEMENT

BY AND BETWEEN

THE CITY OF CUDAHY

AND DANIEL & GOLIA TH,
[AN INDIVIDUAL, LIMITED LIABILITY COMPANY, CORPORATION]

SEE ATTACHMENT
5 Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 75 of 379 Page 2987 of 4584 ATTACHMENT E.

Development Agreement No. 18-020C
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ATTACHMENT F.

Exhibit A-F of Development Agreement
No. 18-020C
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 122 of 379 Page 3034 of 4584 Daniel and Goliath LLC Page 40 of 40 City of Cudahy
Development Agreement
DA # 18-020C

EXHIBITS

A LEGAL DESCRIPTION

B PARCEL MAP

C LANDLORD CONSENT

D SITE AND FLOOR PLANS

E ADDITIONAL BUSINESS STANDARDS (IF APPLICABLE)

F STANDARDS AND CONDITIONS FOR CONSTRUCTION (IF APPLICABLE) Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 123 of 379 Page 3035 of 4584 EXHIBIT “A”

LEGAL DESCRIPTION

Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 124 of 379 Page 3036 of 4584 Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 125 of 379 Page 3037 of 4584 RECORDING REQUESTED BY:

B&B Associate Group
AND WHEN RECORDED MAIL TO:

CUDAHY CECILIA, LLC
c/o Levy Affiliated Holdings
AnN: Shaoul Levy
201 Wilshire Blvd., 2nd Floor
Santa Monica, CA 90401

GRANT DEED

THE UNDERSIGNED GRANTOR(S) DECLARE(S)

THIS SPACE FOR RECORDER'S USE ONLY
DOCUMENTARY TRANSFER TAX Is $8,665.25
[Xl computed on full value of property conveyed, or
[ I computed on full value less value of liens or encumbrances remaining at time of sale. [ I Unincorporated area [Xl City of Cudahy AND
FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, CRAIG HARRISON, Trustee of the WENDY TRUST UNDER THE JOSEPH AND MARILYN ERHARDT TRUST, dated May 25, 1991
hereby GRANT(s) to:

CUDAHY CECILIA, LLC, a California limited liability company the following described real property in the City of Cudahy, County of Los Angeles, State of California, described as:

LOTS 228 AND 229 AND THE EASTERLY 30 FEET OF LOT 227 OF TRACT NO. 180, IN THE CITY OF CUDAHY, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 13, PAGE 198 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.

Also Known as: 4916 Cecilia Street, Cudahy, CA 90201
APN#: 6224-033-024
DATE: July 14, 2017
PLEASE SEE PAGE TWO FOR GRANTOR'S SIGNATURE.

MAIL TAX STATEMENTS TO PARTY SHOWN BELOW: IF NO PARTY SHOWN, MAIL AS DIRECTED ABOVE:

Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 126 of 379 Page 3038 of 4584 Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 127 of 379 Page 3039 of 4584 EXHIBIT “B”

PARCEL MAP

Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 128 of 379 Page 3040 of 4584 Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 129 of 379 Page 3041 of 4584 EXHIBIT “C”

LANDLORD CONSENT

Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 130 of 379 Page 3042 of 4584 [file no. ] - City of Cudahy Page 1 of 6 Landlord Consent Agreement DA# [ ]

LANDLORD CONSENT AND HOLD

HARMLESS AGREEMENT
THIS LANDLORD CONSENT AGREEMENT (this “Agreement”) is made and entered into this 10th day of April, 2018, (the “Execution Date”), by and between the CITY OF CUDAHY, a California municipal corporation (“City”) and CUDAHY CECILIA, LLC ("Landlord"). City and Landlord are sometimes referenced together herein as the “Parties.” In instances when a provision hereof applies to each of the Parties individually, either may be referenced as a “Party.” The Parties hereby jointly render the following statement as to the background facts and circumstances underlying this Agreement.

RECITALS
A. Landlord is the fee simple owner of real property located at 4916 Cecilia Street, City of Cudahy, State of California (the “Site”). The Site includes Assessor’s Parcel Number: 6224-033-024 as is more fully described in Exhibit A and shown on the map in Exhibit B, both exhibits being attached hereto and incorporated herein by this reference.

The Site is/will be leased to Cuper Development, LLC, Go Cudahy, LLC, Davina, LLC, Daniel and Goliath, LLC, Herbal Dragon, LLC, Genius Distribution, LLC, and The 420 Club, LLC ("Tenant") pursuant to a written lease agreement attached to this document as Exhibit "C" (the "Lease" or other agreement).

B. Tenant has applied to the City for approval of a Development Agreement to establish certain development rights in the Site for a period of years. Tenant seeks authorization from the City to establish a medical cannabis facility which may include, but may be limited to, facilities where cannabis is planted, grown, harvested, dried, cured, graded, trimmed, extracted, manufactured into cannabis products, tested, distributed, or transported, or that does all or any combination of those activities.

Tenant anticipates making capital expenditures or causing capital expenditures to made in reliance upon the City's approval of its application for a Development Agreement.

Landlord acknowledges that the City's approval of a Development Agreement may significantly impact the value of the Site. However, the City makes no representation whether or not approval of the Development Agreement will ultimately be economically beneficial or detrimental to the Landlord.

C. Approval of the Development Agreement will provide for the orderly establishment of a medical cannabis facility at the Site, provide public benefits and set standards and requirements for the development and permitted uses on the Site.

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LEGAL DESCRIPTION

Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 137 of 379 Page 3049 of 4584 Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 138 of 379 Page 3050 of 4584 EXHIBIT “B”

PARCEL MAP

Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 139 of 379 Page 3051 of 4584 Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 140 of 379 Page 3052 of 4584 EXHIBIT “C”
LEASE

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SITE AND FLOOR PLANS

Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 172 of 379 Page 3084 of 4584 280' - 1"
167' - 1"
163' - 0"

DOSIFIER
82' - 5"
13' - 0" 13' - 0" 13' - 0" 13' - 9"
20' - 8" 20' - 5" 7' - 0"
7' - 0"
(N) SEC. DOOR
(N) SEC. DOOR
(E) ROLL-UP DOOR

EXTRACTION
UNIT
1 A3.1
1 A3.1
794 SF
VEG 6
788 SF
VEG 5
778 SF
VEG 2
765 SF
VEG 1
774 SF
VEG 4
1729 SF
FLOWER 6
784 SF
VEG 3
1731 SF
VEG 7
2370 SF
FLOWER 9
2134 SF
FLOWER 8
2143 SF
FLOWER 7
1222 SF
VEG 8
2156 SF
FLOWER 5
2143 SF
FLOWER 4
2143 SF
FLOWER 3
2152 SF
FLOWER 2
2156 SF
FLOWER 1
1928 SF
FLOWER 1
2210 SF
FLOWER 2
2167 SF
FLOWER 3
2170 SF
FLOWER 5
2213 SF
FLOWER 4
1877 SF
VEG 1
561 SF

MOTHER ROOM
642 SF

TISSUE CULTURE
416 SF

MAUNFACTURING
463 SF
OFFICE
449 SF

DRY ROOM
449 SF

DRY ROOM
449 SF

DRY ROOM
809 SF

DISTRIBUTION
1270 SF

MANUFACTURING
2530 SF

MANUFACTURING
383 SF

WATER RESERVOIR
474 SF

DRY ROOM
1475 SF

SHIPPING/ LOADING
130 SF
F EMP. LOCKERS
127 SF
M EMP. LOCKERS
913 SF
LOBBY
93 SF
EMP. CHECK IN
96 SF

BREAKROOM
275 SF

OFFICES/ CONFERENCE
83 SF

UTILITY
85 SF

LAUNDRY
80 SF
STORE
188 SF
OFFICE
181 SF
OFFICE 51 SF
SEC. VAULT
303 SF

TRIMMING
298 SF

PACKAGING
76 SF

BATHROOM
73 SF

BATHROOM
71 SF

BATHROOM
45 SF

BATHROOM
12 6" BO
' x 4' TRANSFORMAR PAD

LLARDS PROTECTION
22' - 8" 31' - 2" 40' - 7" 7' - 3" 40' - 8"
23' - 0"
25' - 3" 24' - 1" 24' - 10"
22' - 0" 22' - 5" 26' - 3" 4' - 0" 22' - 6" 23' - 1" 37' - 5" 6' - 0"

EXIT EXIT EXIT
EXIT
EXIT

EXIT EXIT
(E) ELECTRIC PANEL
(N) ELETRIC ROOM
547 SF
DRYING
520 SF
DRYING
549 SF
DRYING
475 SF

TRIMMING
484 SF

DISTRIBUTION
228 SF
M EMP. LOCKER
229 SF
F EMP. LOCKER
486 SF

CHECK-IN
499 SF

DELIVERY
814 SF

DELIVERY
38' - 0" 38' - 7" 38' - 11" 42' - 1" 42' - 2"
15' - 0" 14' - 4" 7' - 11" 10' - 7" 11' - 9" 40' - 3" 40' - 1" 44' - 6" 8' - 0" 10' - 3" 17' - 0" 20' - 2" 18' - 3" 21' - 4" 13' - 3"
39' - 3" 40' - 3" 40' - 2" 40' - 0" 40' - 0" 40' - 3" 35' - 0" 54' - 10"
27' - 6" 27' - 0" 7' - 6"
11' - 4" 11' - 4" 7' - 9"
47' - 4" 55' - 8" 54' - 8"
54' - 10" 7' - 4" 25' - 6"
42' - 1"
213' - 0"
136' - 7"
13' - 5" 21' - 3" 13' - 10" 10' - 3" 10' - 6" 5' - 5" 10' - 9" 26' - 2" 21' - 5" 33' - 5" 280' - 1"
163' - 8"
143' - 0"
443' - 9"
23' - 10" 7' - 8" 23' - 0"
54' - 6"
18' - 7"
42' - 4"
4' - 2" 30' - 11"
UNIT C : DIVINA LLC
UNIT D : GENIUS
UNIT F : DANIEL AND GOLIATH LLC UNIT G : 420 CLUB LLC
UNIT E : HERBAL DRAGON
UNIT B : GO CUDAHY UNIT B

UNIT B B TINU B TINU

UNIT B UNIT B UNIT B

UNIT B UNIT B UNIT B

A TINU A TINU A TINU A TINU A TINU

A TINU A TINU

A TINU A TINU

A TINU A TINU
UNIT A
UNIT A

A TINU A TINU A TINU UNIT A
UNIT A
UNIT A

UNIT A UNIT A
UNIT A
UNIT A
UNIT A
UNIT A
UNIT A
UNIT A
UNIT A
UNIT A
Scale
Dra
Date
wn By
Project Number
Woodland Hills, CA 91365P.O. Box 6004
406610
Global Construction Inc
EST. 2017
1/16" = 1'-0"
4/10/2018 3:50:15 PMA1.2

PROPOSED
PLAN

PHILLIPE KFOURY

DJ JE WC
04/10/2018
2018.003
No. Description Date
1/16" = 1'-0" 1 LEVEL 1 PROPOSED
1NOTES:
. Any inconsistencies or unforeseen conditions to be reviewed by the Architect prior to proceeding with construction.

2. All dimensions are too face of structure unless otherwise noted.

3. Do not scale from drawings.

4. Contractor shall provide, erect, and maintain all temporary barriers and guards, and all temporary shoring and bracing as required by city and state regulations.

5. Contractor shall provide adequate weather protection for the building and its contents during the course of the work.

6. Contractor shall provide temporary sanitary facilities as to least impact neighbors and as directed by city regulations.

7. All door and window dimensions to be centerline of clear opening.

8. All casework dimensions to face of finish.

N
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 173 of 379

Existing parking space
Building foot print: 70,079.2 sq ft
Lot sq. ft. = 101,627.7 sq ft
Number of floors: 1
structure columns, concrete walls, wood framing beams.

Construction type: III-B Concrete slab on grade, metal
overlay
Zoning designation: light industrial with urban agriculture Tract no: 180 Lot: 30ft of 227, all 228, 229
Lot #: 228, 229
Region / Cluster: 26 / 26820
Property Type; Commercial/Industrial
Assessor's Id No: 6224-033-024
Address: 4916 Cecilia St, Cudahy, CA 90201
Property Information
Existing Handicap: 0
Existing Standard: 5
Proposed 9'x18' Parking Space
Proposed ADA: 4
Proposed standard: 36
Floor Area Ratio (FAR):

Total: 70,079.2/101,627.7=.69
Building: 70,079.2 sq ft
Property: 101,627.7 sq ft
SITE
LOT DEPTH 484'-0" LOT WIDTH 210'-0"
6'-0"

SIDEWALK
5'-0"
PLANTER 167'-1"
162'-2" 25'-5"
N
Landscape information
Proposed landscape: 1,300.00 sq ft
Existing Landscape: 770 sq ft
1300
101627
= 1.3%
Land use:

Proposed: cultivation, manufacturing and
Existing: Vacant
distribution of cannabis and cannabis products DRIVEWAY WIDTH 26'-5" SIDE SETBACK 41'-0" Site Plan
Sheet Index
A0.0
Demo Plan
Proposed Floor Plan A0.1
A0.1
Exist. and Prop. elevations A1.0
25'-0"

PL TO STREET CL
Exist fire department connection

WAREHOUSE BUILDING
EXISTING 70,079.2 sq ft
FRONT SETBACK 37'-8" 277'-6" SIDE SETBACK 63'-5"
1 2
3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 TYP.
9'-0' 18'-0" TYP.

TYP.
9'-0' 18'-0" TYP. 21'0"

PROPERTY LINE
PROPERTY LINE PROPERTY LINE PROPERTY LINE DRIVEWAY WIDTH 20'-6" CECILIA ST.

CL
Entrance Entrance Entrance

BUILDING

ENTRANCE

BUILDING

ENTRANCE

BUILDING

ENTRANCE

BUILDING

ENTRANCE
Land use Index
Assessor's Id No. Land Use
I - 6224-024-010
H - 6224-024-007 Commercial/Industrial
6224-033-024 (Site) Vacant
G - 6224-034-033 Commercial/Industrial
F - 6224-033-023
A - 6224-033-019 Commercial/Industrial
C - 6224-033-011
B- 6224-033-010
Vacant land
D -6224-033-012 Vacant land
E - 6224-033-018 Commercial/Industrial
C D E
B
A
F
G
H I
Commercial/Industrial
Commercial/Industrial
Commercial/Industrial PATH OF TRAVEL 2% CROSS SLOPE MAX

CROSS SLOPE MAX
PATH OF TRAVEL 2%

CROSS SLOPE MAX
PATH OF TRAVEL 2% PATH OF TRAVEL 2% CROSS SLOPE MAX
NTS
8KEKPKV[/CR
Scale
Proposed Site plan
1 16
" = 1'-0"
landscaping per City approval
Drought tolerant desert
Legend
Loading and unloading area
New sliding Fence. New Fence.

New Fence.

New sliding Fence.

New Fence. New Fence.
landscape
Proposed drought tolerance
A0.0
Sheet 1 of 4 Project Name: Cuper Develpment Address: 4916 Cecilia St Cudahy, CA 90201 Prepared by:

Revision
# Description
Date:
03/26/2018
Title:

Site plan
Scale:
1/16"=1'-0"
1 CUPER DEVELOPMENT
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 174 of 379

EXHIBIT “E”

ADDITIONAL BUSINESS STANDARDS
(IF APPLICABLE)
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 175 of 379 Page 3087 of 4584 EXHIBIT “F”

STANDARDS AND CONDITIONS FOR CONSTRUCTION
(IF APPLICABLE)
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 176 of 379 Page 3088 of 4584 ATTACHMENT G.

Correspondence Letter- Notice of
Delinquency dated October 2, 2019
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 177 of 379 Page 3089 of 4584 Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 178 of 379

ATTACHMENT H.

Correspondence Letter- Notice of
Default dated May 4, 2021
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 179 of 379 Page 3091 of 4584 Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 180 of 379

Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 181 of 379

ATTACHMENT I.

Correspondence Letter- Final Demand
dated October 19, 2021
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 182 of 379 Page 3094 of 4584 Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 183 of 379

Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 184 of 379

ATTACHMENT J.

Correspondence Letter- Notice of
Cannabis Deferment and Payment
Program dated December 7, 2022
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 185 of 379 Page 3097 of 4584 P a g e | 1
5220 Santa Ana Street
Cudahy, CA, 90201
Phone: (323) 773-5143
Fax: (323) 771-2072
www.cityofcudahy.com
Mayor
Elizabeth Alcantar
Vice Mayor
Jose R. Gonzalez
Councilmember
Jack M. Guerrero
Councilmember
Blanca Lozoya
Councilmember
Daisy Lomeli
City Manager
Alfonso Noyola, ICMA-CM
Incorporated November 10, 1960

December 7, 2022
Via U.S. Mail and Email:

Daniel and Goliath, LLC
Attn: Robert Gaither, Manager
4916 Cecilia Street Unit F
Cudahy, CA 90201
Re: DA 18-020C
Dear Owner/Operator:

On December 6, 2022, the City Manager presented a Cannabis Deferment and Payment Program to the City Council. Within this program, the City Manager will be utilizing his discretionary authority allowed within the Development Agreements to assist Cannabis Operators with the accumulated non-operating and other fees by deferring and providing additional time for payment without penalty.

The stipulations of this Program will be as follows:
• Unpaid non-operating fees will be deferred (without penalty) until six (6) months after the Operator is issued a Certificate of Occupancy. Thereafter, the accumulated non-operating fees would be required to be repaid within twelve (12) months or other term negotiated with the City Manager.
o Any previous late penalties charged to non-operating fees would be waived provided that a payment agreement is reach and the operator follows all stipulations within the agreement
• Community Benefit and Cost Recovery Fees, as detailed in the Development Agreement, would have to be paid timely on a monthly basis. Any Fees incurred prior to the agreement would be put under a payment agreement and also required to be paid timely on a monthly basis. • Payment agreement terms would be subject to the discretion of the City Manager as negotiated with each operator
• The Operators would have to remain in good standing with the City with respect to Planning and Building and Safety Regulations.

In order to be eligible for this program, Operators must have negotiated with the City and entered into an executed payment agreement no later than January 31, 2023.

Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 186 of 379 Page 3098 of 4584 P a g e | 2
If you are interested in entering into this deferment and payment program, please contact Joshua Calhoun at [email protected].

Sincerely,
Joshua Calhoun, CPA
Finance Director
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 187 of 379 Page 3099 of 4584 ATTACHMENT K.

Letter of Agreement (Payment Plan)
dated February 1, 2023
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ATTACHMENT L.

Correspondence Letter- April, May, and
June Delinquency notices.

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Mayor
Daisy Lomeli
Vice Mayor
Jose R. Gonzalez
Councllmember
Elizabeth Alcantar
Councilmember
Martin U, Fuentes
Councilmember
Cynthia Gonzalez, Ed.O
dty Manager
Alfonso Noyola, ICMA-CM
CUDAHY
OP�N MINDS, OP�N DOORS
Incorporated November 10, 1960
5220 Santa Ana Street
Cudahy, CA 90201
Phone: (323) 773-5143
Fax: {323) 771-2072
www.cityofcudahy.com
June 6, 2023
Via U.S. Mail and Email:

Daniel and Goliath, LLC
Attn: Robert Gaither, Manager
4916 Cecilia Street Unit F
Cudahy, CA 90201
Re: DA 18-020C - TEN (10) DAY NOTICE OF INTENTION TO TERMINATE LETTER

AGREEMENT ON PAYMENT OF OUTSTANDING FEES & COST DELINQUENT

PAYMENT
Dear Owner/Operator:

On or about March 1, 2023, the City of Cudahy ("City") and Daniel and Goliath, LLC ("Operator") entered into a Letter Agreement wherein the City agreed to forebear enforcement of its rights under Development Agreement # 18-020C, provided Operator entered into a payment arrangement on past due fees owed to the City.

On May 15, 2023, the Operator was notified that the monthly fees for April 2023, May 2023, and June 2023, were not paid as required by the Letter Agreement. The Operator is now more than thirty (30) days delinquent on its payment plan with the City. The May 15, 2023, letter is attached hereto and states that the current amount outstanding on the Letter Agreement is $33,376.58.

The Letter Agreement provides that upon the breach of any its provisions, the City may, at is sole option and discretion, give the Operator ten (10) days written Notice of Intention to Terminate the Letter Agreement and an Opportunity to Cure. In the event of any uncured default after notice is given, the Letter Agreement shall automatically terminate without further notice, at which time the City may exercise any and all rights and remedies under the Development Agreement, including but not limited to, termination of the Development Agreement and revocation of the cannabis permit.

NOTICE IS HEREBY GIVEN that if the "current amount outstanding" on the Letter Agreement of $33,376.58 is not paid in full within ten (10) calendar days of the date of this Notice, the City will consider the Letter Agreement automatically terminated and no longer of

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ATTACHMENT M.

Final Demand Letter dated June 23, 2023
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ATTACHMENT N.

Correspondence – Notice of Escrow
Account dated August 9, 2023
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ATTACHMENT O.

Correspondence – Notice of updated
payment of fees dated October 24, 2023
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ATTACHMENT P.

Invoices from October 2022 to October
2023
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 223 of 379 Page 3135 of 4584 P a g e | 1
5220 Santa Ana Street
Cudahy, CA, 90201
Phone: (323) 773-5143
Fax: (323) 771-2072
www.cityofcudahy.com
Mayor
Elizabeth Alcantar
Vice Mayor
Jose R. Gonzalez
Councilmember
Jack M. Guerrero
Councilmember
Blanca Lozoya
Councilmember
Daisy Lomeli
City Manager
Alfonso Noyola, ICMA-CM
Incorporated November 10, 1960
October 10, 2022
Via U.S. Mail and Email:

Daniel and Goliath, LLC
Attn: Robert Gaither, Manager
4916 Cecilia Street Unit F
Cudahy, CA 90201
Re: DA 18-020C
Dear Owner/Operator:

Below is a summary of past and current amounts due under Development Agreement DA 18-020C for Ordinance No 680, with an Effective date of June 5, 2018.

Fee Type Payment
Amount
Payment Period City
Code
Community Benefit Program $22,476.33
$9,904.83
Outstanding balance through July
31, 2021.

Monthly installments ($761.91)
from August 2021 to August 2022
CBP
Cost Recovery Fee $13,895.88
$33,263.55
Outstanding balance through July
31, 2021.

City Labor from August 2021 to
August 2022.

URBF1
Non-Operating Fee $11,552.52
$4,417.14
Outstanding balance through July
31, 2021.

August 2021 through August 2022.

The monthly non-operating fee is
$339.78 (.42 x 809 square footage
of the premises)
OPFEE
Total Fees $95,510.25 Due October 31, 2022
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 224 of 379 Page 3136 of 4584 P a g e | 2
Community Benefit Program
The Community Benefit Program (CBP) payment amount is due the first day of each month and is considered late if payment is received on or after the fifth day of the month. All CBP outstanding balance as of July 31, 2021, and current CBP monthly installments totaling $32,381.16 are due October 31, 2022.

Cost Recovery Fee
The outstanding Cost Recovery Fee as of July 31, 2021, the City labor, and third-party contractors from August 2021 to August 2022 totaling $47,159.43 are due October 31, 2022.

Non-Operating Fees
The outstanding balance as of July 31, 2021, and the current monthly non-operating fees from August 2021 to August 2022 totaling $15,969.66 are due October 31, 2022.

Please pay no later than October 31, 2022, to avoid any penalties. If you have any questions relating to these items, please contact Joshua Calhoun at [email protected].

Sincerely,
Joshua Calhoun, CPA
Finance Director
See supporting detail attached of monthly billings and payments from August 2021 through current.

Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 225 of 379 Page 3137 of 4584 CBP URBF1 OPFEE
Operator Comm Benefit Cost Recovery Non Operating Outstanding Daniel and Goliath, LLC
September 22, 2021 Letter            22,476.33           13,895.88 11,552.52 47,924.73

BILLINGS
Aug 2021                 761.91                 335.18 339.78 1,436.87 Sep 2021                 761.91                 406.78 339.78 1,508.47 Oct 2021                 761.91                 351.00 339.78 1,452.69 Nov 2021                 761.91             2,723.23 339.78 3,824.92 Dec 2021                 761.91                 130.65 339.78 1,232.34 Jan 2022                 761.91                 494.28 339.78 1,595.97 Feb 2022                 761.91             1,137.30 339.78 2,238.99 Mar 2022                 761.91                 875.25 339.78 1,976.94 Apr 2022                 761.91             1,103.88 339.78 2,205.57 May 2022                 761.91             2,115.39 339.78 3,217.08 Jun 2022                 761.91                 127.60 339.78 1,229.29 Jul 2022                 761.91                 924.63 339.78 2,026.32 Aug 2022                 761.91                 932.38 339.78 2,034.07

PAYMENTS
Aug 2021
Sep 2021
Oct 2021
Nov 2021
Dec 2021
Jan 2022
Feb 2022
Mar 2022
Apr 2022
May 2022
Jun 2022
72,020.00
7,202.00
3 years
21,606.00 21,606.00
Jul 2022
Aug 2022
Annual City Reimbursement Costs
Cost per operator (10)
Three years(2019‐2022)
City Labor
September
Balance as of August 31, 2022 32,381.16           47,159.43                15,969.66 95,510.25 (a) City Reimbursement cost of $7,202 per year (x three years (2019‐2022)= $21,606.00 Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 226 of 379 Page 3138 of 4584 P a g e | 1
5220 Santa Ana Street
Cudahy, CA, 90201
Phone: (323) 773-5143
Fax: (323) 771-2072
www.cityofcudahy.com
Mayor
Elizabeth Alcantar
Vice Mayor
Jose R. Gonzalez
Councilmember
Jack M. Guerrero
Councilmember
Blanca Lozoya
Councilmember
Daisy Lomeli
City Manager
Alfonso Noyola, ICMA-CM
Incorporated November 10, 1960

November 14, 2022
Via U.S. Mail and Email:

Daniel and Goliath, LLC
Attn: Robert Gaither, Manager
4916 Cecilia Street Unit F
Cudahy, CA 90201
Re: DA 18-020C
Dear Owner/Operator:

Below is a summary of past and current amounts due under Development Agreement DA 18-020C for Ordinance No 680, with an Effective date of June 5, 2018.

Fee Type Payment
Amount
Payment Period City
Code
Community Benefit Program $22,476.33
$11,428.65
Outstanding balance through July 31,
2021
Monthly installments ($761.91) from
August 2021 to October 2022
CBP
Cost Recovery Fee $13,895.88
$37,728.49
Outstanding balance through July 31,
2021
City Labor from August 2021 to
October 2022
URBF1
Non-Operating Fee $11,552.52
$5,096.70
$356.77
Outstanding balance through July 31,
2021
August 2021 through October 2022.

The monthly non-operating fee is
$339.78 (.42 x 809 square footage of
the premises)
Penalties August 2022-October 2022
OPFEE
Total Fees $102,535.34 Due November 30, 2022
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 227 of 379 Page 3139 of 4584 P a g e | 2
Community Benefit Program
The Community Benefit Program (CBP) payment amount is due the first day of each month and is considered late if payment is received on or after the fifth day of the month. All CBP outstanding balance as of July 31, 2021, and current CBP monthly installments totaling $33,904.98 are due November 30, 2022.

Cost Recovery Fee
The outstanding Cost Recovery Fee as of July 31, 2021, the City labor, and third-party contractors from August 2021 to October 2022 totaling $51,624.37 are due November 30, 2022.

Non-Operating Fees
The outstanding balance as of July 31, 2021, and the current monthly non-operating fees from August 2021 to October 2022 totaling $16,649.22 are due November 30, 2022.

Late Payment Penalties
Penalties totaling $356.77 from August 2022 to October 2022 are due November 30, 2022.

Per the Development Agreement, amounts that are more than 30 days late after the due date shall result in a penalty equal to the sum of 25% of the non-operating/operating fees. In addition, a 10% shall be added to the first day of each calendar month following the month of the imposition of the 25% penalty if the fees remain unpaid in whole or in part-up to a maximum of 100% of the fee payable. The City will be enforcing these penalties for amounts due from July 2022 to present, as appliable. No penalties will be imposed on amounts outstanding prior to this date. This will be separately listed on current and future invoice letters provided by the City. Should you wish to avoid penalties, ensure that either amounts payable are paid timely or contact the City to discuss entering into a payment plan on prior amounts outstanding.

Please pay no later than November 30, 2022, to avoid any penalties. If you have any questions relating to these items, please contact Joshua Calhoun at [email protected].

Sincerely,
Joshua Calhoun, CPA
Finance Director
See supporting detail attached of monthly billings and payments from August 2021 through current.

Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 228 of 379 Page 3140 of 4584 CBP URBF1 OPFEE OPFEE
Operator Comm Benefit Cost Recovery Non Operating Penalties Outstanding Daniel and Goliath, LLC
September 22, 2021 Letter            22,476.33           13,895.88                 11,552.52                  47,924.73

BILLINGS
Aug 2021                 761.91                 335.18                      339.78                     1,436.87 Sep 2021                 761.91                 406.78                      339.78                     1,508.47 Oct 2021                 761.91                 351.00                      339.78                     1,452.69 Nov 2021                 761.91             2,723.23                      339.78                     3,824.92 Dec 2021                 761.91                 130.65                      339.78                     1,232.34 Jan 2022                 761.91                 494.28                      339.78                     1,595.97 Feb 2022                 761.91             1,137.30                      339.78                     2,238.99 Mar 2022                 761.91                 875.25                      339.78                     1,976.94 Apr 2022                 761.91             1,103.88                      339.78                     2,205.57 May 2022                 761.91             2,115.39                      339.78                     3,217.08 Jun 2022                 761.91                 127.60                      339.78                     1,229.29 Jul 2022                 761.91                 924.63                      339.78                     2,026.32 Aug 2022                 761.91                 932.38                      339.78                        84.95                     2,119.02 Sep 2022                 761.91             2,550.29                      339.78                      118.92                     3,770.90 Oct 2022                 761.91             1,914.65                      339.78                      152.90                     3,169.24

PAYMENTS
Aug 2021
Sep 2021
Oct 2021
Nov 2021
Dec 2021
Jan 2022
Feb 2022
Mar 2022
Apr 2022
May 2022
Jun 2022
Jul 2022
Aug 2022
Sep 2022
Oct 2022 0.00 0.00 0.00 0.00 0.00
Annual City Reimbursement Costs           72,020.00
Cost per operator (10)             7,202.00
Three years(2019‐2022) 3 years
City Labor           21,606.00                  21,606.00 September
Balance as of October 31, 2022            33,904.98           51,624.37                16,649.22                      356.77                102,535.34 (a) City Reimbursement cost of $7,202 per year (x three years (2019‐2022)= $21,606.00 Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 229 of 379 Page 3141 of 4584 P a g e | 1
5220 Santa Ana Street
Cudahy, CA, 90201
Phone: (323) 773-5143
Fax: (323) 771-2072
www.cityofcudahy.com
Mayor
Elizabeth Alcantar
Vice Mayor
Jose R. Gonzalez
Councilmember
Jack M. Guerrero
Councilmember
Blanca Lozoya
Councilmember
Daisy Lomeli
City Manager
Alfonso Noyola, ICMA-CM
Incorporated November 10, 1960
December 12, 2022
Via U.S. Mail and Email:

Daniel and Goliath, LLC
Attn: Robert Gaither, Manager
4916 Cecilia Street Unit F
Cudahy, CA 90201
Re: DA 18-020C
Dear Owner/Operator:

Below is a summary of past and current amounts due under Development Agreement DA 18-020C for Ordinance No 680, with an Effective date of June 5, 2018.

Fee Type Payment
Amount
Payment Period City
Code
Community Benefit Program $22,476.33
$12,190.56
Outstanding balance through July 31,
2021
Monthly installments ($761.91) from
August 2021 to November 2022
CBP
Cost Recovery Fee $13,895.88
$40,319.97
Outstanding balance through July 31,
2021
City Labor from August 2021 to
November 2022
URBF1
Non-Operating Fee $11,552.52
$5,436.48
$543.65
Outstanding balance through July 31,
2021
August 2021 through November
2022. The monthly non-operating
fee is $339.78 (.42 x 809 square
footage of the premises)
Penalties Aug 2022-Nov 2022
OPFEE
Total Fees $106,415.39 Due December 29, 2022
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 230 of 379 Page 3142 of 4584 P a g e | 2
Community Benefit Program
The Community Benefit Program (CBP) payment amount is due the first day of each month and is considered late if payment is received on or after the fifth day of the month. All CBP outstanding balance as of July 31, 2021, and current CBP monthly installments totaling $34,666.89 are due December 29, 2022.

Cost Recovery Fee
The outstanding Cost Recovery Fee as of July 31, 2021, the City labor, and third-party contractors from August 2021 to November 2022 totaling $54,215.85 are due December 29, 2022.

Non-Operating Fees
The outstanding balance as of July 31, 2021, and the current monthly non-operating fees from August 2021 to November 2022 totaling $16,989 are due December 29, 2022.

Late Payment Penalties
Penalties totaling $543.65 from August 2022 to November 2022 are due December 29, 2022.

Per the Development Agreement, amounts that are more than 30 days late after the due date shall result in a penalty equal to the sum of 25% of the non-operating/operating fees. In addition, a 10% shall be added to the first day of each calendar month following the month of the imposition of the 25% penalty if the fees remain unpaid in whole or in part-up to a maximum of 100% of the fee payable. The City will be enforcing these penalties for amounts due from July 2022 to present, as appliable. No penalties will be imposed on amounts outstanding prior to this date. This will be separately listed on current and future invoice letters provided by the City. Should you wish to avoid penalties, ensure that either amounts payable are paid timely or contact the City to discuss entering into a payment plan on prior amounts outstanding.

Please pay no later than December 29, 2022, to avoid any penalties. If you have any questions relating to these items, please contact Joshua Calhoun at [email protected].

Sincerely,
Joshua Calhoun, CPA
Finance Director
See supporting detail attached of monthly billings and payments from August 2021 through current.

Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 231 of 379 Page 3143 of 4584 CBP URBF1 OPFEE OPFEE
Operator Comm Benefit Cost Recovery Non Operating Penalties Outstanding Daniel and Goliath, LLC
September 22, 2021 Letter            22,476.33           13,895.88                 11,552.52                  47,924.73

BILLINGS
Aug 2021                 761.91                 335.18                      339.78                     1,436.87 Sep 2021                 761.91                 406.78                      339.78                     1,508.47 Oct 2021                 761.91                 351.00                      339.78                     1,452.69 Nov 2021                 761.91             2,723.23                      339.78                     3,824.92 Dec 2021                 761.91                 130.65                      339.78                     1,232.34 Jan 2022                 761.91                 494.28                      339.78                     1,595.97 Feb 2022                 761.91             1,137.30                      339.78                     2,238.99 Mar 2022                 761.91                 875.25                      339.78                     1,976.94 Apr 2022                 761.91             1,103.88                      339.78                     2,205.57 May 2022                 761.91             2,115.39                      339.78                     3,217.08 Jun 2022                 761.91                 127.60                      339.78                     1,229.29 Jul 2022                 761.91                 924.63                      339.78                     2,026.32 Aug 2022                 761.91                 932.38                      339.78                        84.95                     2,119.02 Sep 2022                 761.91             2,550.29                      339.78                      118.92                     3,770.90 Oct 2022                 761.91             1,914.65                      339.78                      152.90                     3,169.24 Nov 2022                 761.91             2,591.48                      339.78                      186.88                     3,880.05

PAYMENTS
Aug 2021
Sep 2021
Oct 2021
Nov 2021
Dec 2021
Jan 2022
Feb 2022
Mar 2022
Apr 2022
May 2022
Jun 2022
Jul 2022
Aug 2022
Sep 2022
Oct 2022
Nov 2022 0.00 0.00 0.00 0.00 0.00
Annual City Reimbursement Costs           72,020.00
Cost per operator (10)             7,202.00
Three years(2019‐2022) 3 years
City Labor           21,606.00                  21,606.00 September
Balance as of November 30, 2022 34,666.89                       54,215.85                16,989.00                      543.65                106,415.39 (a) City Reimbursement cost of $7,202 per year (x three years (2019‐2022)= $21,606.00 Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 232 of 379 Page 3144 of 4584 P a g e | 1
5220 Santa Ana Street
Cudahy, CA, 90201
Phone: (323) 773-5143
Fax: (323) 771-2072
www.cityofcudahy.com
Mayor
Daisy Lomeli
Vice Mayor
Jose R. Gonzalez
Councilmember
Elizabeth Alcantar
Councilmember
Martin U. Fuentes
Councilmember
Cynthia Gonzalez
City Manager
Alfonso Noyola, ICMA-CM
Incorporated November 10, 1960
January 11, 2023
Via U.S. Mail and Email:

Daniel and Goliath, LLC
Attn: Robert Gaither, Manager
4916 Cecilia Street Unit F
Cudahy, CA 90201
Re: DA 18-020C
Dear Owner/Operator:

Below is a summary of past and current amounts due under Development Agreement DA 18-020C for Ordinance No 680, with an Effective date of June 5, 2018.

Fee Type Payment
Amount
Payment Period City
Code
Community Benefit Program $22,476.33
$12,952.47
Outstanding balance through July 31,
2021
Monthly installments ($761.91) from
August 2021 to December 2022
CBP
Cost Recovery Fee $13,895.88
$42,993.25
Outstanding balance through July 31,
2021
City Labor from August 2021 to
December 2022
URBF1
Non-Operating Fee $11,552.52
$5,776.26
$764.51
Outstanding balance through July 31,
2021
August 2021 through December
2022. The monthly non-operating
fee is $339.78 (.42 x 809 square
footage of the premises)
Penalties Aug 2022-Dec 2022
OPFEE
Total Fees $110,411.22 Due January 31, 2023
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 233 of 379 Page 3145 of 4584 P a g e | 2
Community Benefit Program
The Community Benefit Program (CBP) payment amount is due the first day of each month and is considered late if payment is received on or after the fifth day of the month. All CBP outstanding balance as of July 31, 2021, and current CBP monthly installments from August 2021 to December 2022 totaling $35,428.80 are due January 31, 2023.

Cost Recovery Fee
The outstanding Cost Recovery Fee as of July 31, 2021, the City labor, and third-party contractors from August 2021 to December 2022 totaling $56,889.13 are due January 31, 2023.

Non-Operating Fees
The outstanding balance as of July 31, 2021, and the current monthly non-operating fees from August 2021 to December 2022 totaling $17,328.78 are due January 31, 2023.

Late Payment Penalties
Penalties totaling $764.51 from August 2022 to December 2022 are due January 31, 2023.

Per the Development Agreement, amounts that are more than 30 days late after the due date shall result in a penalty equal to the sum of 25% of the non-operating/operating fees. In addition, a 10% shall be added to the first day of each calendar month following the month of the imposition of the 25% penalty if the fees remain unpaid in whole or in part-up to a maximum of 100% of the fee payable. The City will be enforcing these penalties for amounts due from July 2022 to present, as appliable. No penalties will be imposed on amounts outstanding prior to this date. This will be separately listed on current and future invoice letters provided by the City. Should you wish to avoid penalties, ensure that either amounts payable are paid timely or contact the City to discuss entering into a payment plan on prior amounts outstanding.

Please pay no later than January 31, 2023, to avoid any penalties. If you have any questions relating to these items, please contact Joshua Calhoun at [email protected].

Sincerely,
Joshua Calhoun, CPA
Finance Director
See supporting detail attached of monthly billings and payments from August 2021 through current.

Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 234 of 379 Page 3146 of 4584 CBP URBF1 OPFEE OPFEE
Operator Comm Benefit Cost Recovery Non Operating Penalties Outstanding Daniel and Goliath, LLC
September 22, 2021 Letter            22,476.33           13,895.88                 11,552.52 47,924.73

BILLINGS
Aug 2021                 761.91                 335.18 339.78 1,436.87 Sep 2021                 761.91                 406.78 339.78 1,508.47 Oct 2021                 761.91                 351.00 339.78 1,452.69 Nov 2021                 761.91             2,723.23 339.78 3,824.92 Dec 2021                 761.91                 130.65 339.78 1,232.34 Jan 2022                 761.91                 494.28 339.78 1,595.97 Feb 2022                 761.91             1,137.30 339.78 2,238.99 Mar 2022                 761.91                 875.25 339.78 1,976.94 Apr 2022                 761.91             1,103.88 339.78 2,205.57 May 2022                 761.91             2,115.39 339.78 3,217.08 Jun 2022                 761.91                 127.60 339.78 1,229.29 Jul 2022                 761.91                 924.63 339.78 2,026.32 Aug 2022                 761.91                 932.38 339.78 84.95 2,119.02 Sep 2022                 761.91             2,550.29 339.78 118.92 3,770.90 Oct 2022                 761.91             1,914.65 339.78 152.90 3,169.24 Nov 2022                 761.91             2,591.48 339.78 186.88 3,880.05 Dec‐22                 761.91             2,673.28 339.78 220.86 3,995.83

PAYMENTS
Aug 2021
Sep 2021
Oct 2021
Nov 2021
Dec 2021
Jan 2022
Feb 2022
Mar 2022
Apr 2022
May 2022
Jun 2022
Jul 2022
Aug 2022
Sep 2022
Oct 2022

0.00 0.00 0.00 0.00 0.00
72,020.00
7,202.00
3 years
21,606.00 21,606.00
Nov 2022
Dec 2022
Annual City Reimbursement Costs
Cost per operator (10)
Three years(2019‐2022)
City Labor
September
Balance as of December 31, 2022            35,428.80           56,889.13                17,328.78 764.51                110,411.22 (a) City Reimbursement cost of $7,202 per year (x three years (2019‐2022)= $21,606.00 Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 235 of 379 Page 3147 of 4584 P a g e | 1
5220 Santa Ana Street
Cudahy, CA, 90201
Phone: (323) 773-5143
Fax: (323) 771-2072
www.cityofcudahy.com
Mayor
Daisy Lomeli
Vice Mayor
Jose R. Gonzalez
Councilmember
Elizabeth Alcantar
Councilmember
Martin U. Fuentes
Councilmember
Cynthia Gonzalez
City Manager
Alfonso Noyola, ICMA-CM
Incorporated November 10, 1960

February 9, 2023
Via U.S. Mail and Email:

Daniel and Goliath, LLC
Attn: Robert Gaither, Manager
4916 Cecilia Street Unit F
Cudahy, CA 90201
Re: DA 18-020C
Dear Owner/Operator:

Below is a summary of payments currently due under letter agreement on payment of outstanding fees and costs for Development Agreement DA 18-020C.

Community Benefit Program and Cost Recovery Fees
Beginning March 1, 2023, Operator agrees to maintain Community Benefit Program (CB) and Cost Recovery (CR) payments as they come due under the Development Agreement and shall not become delinquent on any payments by more than thirty (30) days from the payment due date.

Fee Type Payment
Amount
Payment Period City
Code
Community Benefit Program $3,015.89
1 st deferred monthly
payment CBP
Cost Recovery Fee $4,911.78 1st deferred monthly
payment
URBF1
Total Fees $7,927.67 Due April 1, 2023
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 236 of 379 Page 3148 of 4584 P a g e | 2
Non-Operating Fees
All Non-Operating Fees (NOF) (past due and accruing) are deferred until six (6) months after Operator is first issued a Temporary Certificate of Occupancy for the Site. Six (6 months) after the first issuance of a Temporary Certificate of Occupancy for Site, the Finance Director shall notify Operator in writing of the start date for a twelve (12) month term for payment of the total accrued NOF fees then due and owing. The Finance Director will provide the Operator with notice of the payment term for accrued NOF fees by email or US Mail.

Please pay no later than April 1, 2023, to avoid any penalties. If you have any questions relating to these items, please contact Joshua Calhoun at [email protected].

Sincerely,
Joshua Calhoun, CPA
Finance Director
See supporting detail attached of monthly billings and payments as of January 2023.

Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 237 of 379 Page 3149 of 4584 CBP URBF1
Operator Comm Benefit Cost Recovery Outstanding
Tracking of
Deferred Non‐
OPFEES
Daniel and Goliath, LLC
Deferment Plan as of January 31, 2023            36,190.71           58,941.38                   95,132.09 17,668.56 Deferred Monthly Payments
April 1, 2023              3,015.89              4,911.78                     7,927.67 May 1, 2023              3,015.89              4,911.78                     7,927.67 June 1, 2023              3,015.89              4,911.78                     7,927.67 July 1, 2023              3,015.89              4,911.78                     7,927.67 August 1, 2023              3,015.89              4,911.78                     7,927.67 September 1, 2023              3,015.89             4,911.78                     7,927.67 October 1, 2023              3,015.89              4,911.78                     7,927.67 November 1, 2023              3,015.89              4,911.78                     7,927.67 December 1, 2023              3,015.89              4,911.78                     7,927.67 January 1, 2024              3,015.89              4,911.78                     7,927.67 February 1, 2024              3,015.89              4,911.78                     7,927.67 March 1, 2024              3,015.92              4,911.80                     7,927.72 Current Fees Due
February 2023
March 203
April 2023
May 2023
June 2023
July 2023
August 2023
September 2023
October 2023
November 2023
December 2023
January 2024
February 2024
March 2024
Payments
Apr‐23
May‐23
Jun‐23
Jul‐23
Aug‐23
Sep‐23
Oct‐23
Nov‐23
Dec‐23
Jan‐24
Feb‐24
Mar‐24
Balance as of January 31, 2023           36,190.71           58,941.38                   95,132.09 17,668.56 Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 238 of 379 Page 3150 of 4584 P a g e | 1
5220 Santa Ana Street
Cudahy, CA, 90201
Phone: (323) 773-5143
Fax: (323) 771-2072
www.cityofcudahy.com
Mayor
Daisy Lomeli
Vice Mayor
Jose R. Gonzalez
Councilmember
Elizabeth Alcantar
Councilmember
Martin U. Fuentes
Councilmember
Cynthia Gonzalez
City Manager
Alfonso Noyola, ICMA-CM
Incorporated November 10, 1960

March 6, 2023
Via U.S. Mail and Email:

Daniel and Goliath, LLC
Attn: Robert Gaither, Manager
4916 Cecilia Street Unit F
Cudahy, CA 90201
Re: DA 18-020C
Dear Owner/Operator:

Below is a summary of payments currently due under letter agreement on payment of outstanding fees and costs for Development Agreement DA 18-020C.

Community Benefit Program and Cost Recovery Fees
Beginning March 1, 2023, Operator agrees to maintain Community Benefit Program (CB) and Cost Recovery (CR) payments as they come due under the Development Agreement and shall not become delinquent on any payments by more than thirty (30) days from the payment due date.

Fee Type Payment
Amount
Payment Period City
Code
Community Benefit Program $3,015.89
$761.91
$761.91
1 st deferred monthly
payment
February 2023 monthly fee
March 2023 monthly fee
CBP
Cost Recovery Fee $4,911.78
$2,504.00
1st deferred monthly
payment
February 2023 monthly fee
URBF1
Total Fees $11,955.49 Due April 1, 2023
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 239 of 379 Page 3151 of 4584 P a g e | 2
Non-Operating Fees
All Non-Operating Fees (NOF) (past due and accruing) are deferred until six (6) months after Operator is first issued a Temporary Certificate of Occupancy for the Site. Six (6 months) after the first issuance of a Temporary Certificate of Occupancy for Site, the Finance Director shall notify Operator in writing of the start date for a twelve (12) month term for payment of the total accrued NOF fees then due and owing. The Finance Director will provide the Operator with notice of the payment term for accrued NOF fees by email or US Mail.

Please pay no later than April 1, 2023, to avoid any penalties. If you have any questions relating to these items, please contact Joshua Calhoun at [email protected].

Sincerely,
Joshua Calhoun, CPA
Finance Director
See supporting detail attached of monthly billings and payments as of January 31, 2023 through current.

Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 240 of 379 Page 3152 of 4584 CBP URBF1
Operator Comm Benefit Cost Recovery Outstanding
Tracking of
Deferred Non‐
OPFEES
Daniel and Goliath, LLC
Deferment Plan as of January 31, 2023            36,190.71           58,941.38 95,132.09 17,668.56 Deferred Monthly Payments
April 1, 2023              3,015.89              4,911.78 7,927.67 May 1, 2023              3,015.89              4,911.78 7,927.67 June 1, 2023              3,015.89              4,911.78 7,927.67 July 1, 2023              3,015.89              4,911.78 7,927.67 August 1, 2023              3,015.89              4,911.78 7,927.67 September 1, 2023              3,015.89              4,911.78 7,927.67 October 1, 2023              3,015.89              4,911.78 7,927.67 November 1, 2023              3,015.89              4,911.78 7,927.67 December 1, 2023              3,015.89              4,911.78 7,927.67 January 1, 2024              3,015.89              4,911.78 7,927.67 February 1, 2024              3,015.89              4,911.78 7,927.67 March 1, 2024              3,015.92              4,911.80 7,927.72 Current Fees Due
February 2023                  761.91              2,504.00 3,265.91 339.78 March 203                  761.91 761.91 339.78
April 2023
May 2023
June 2023
July 2023
August 2023
September 2023
October 2023
November 2023
December 2023
January 2024
February 2024
March 2024
Payments
Apr‐23
May‐23
Jun‐23
Jul‐23
Aug‐23
Sep‐23
Oct‐23
Nov‐23
Dec‐23
Jan‐24
Feb‐24
Mar‐24
Balance as of March 1, 2023            37,714.53           61,445.38                  99,159.91 18,348.12 Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 241 of 379 Page 3153 of 4584 Page | 1

5220 Santa Ana Street
Cudahy, CA, 90201
Phone: (323) 773‐5143
Fax: (323) 771‐2072
www.cityofcudahy.com
Mayor
Daisy Lomeli
Vice Mayor
Jose R. Gonzalez
Councilmember
Elizabeth Alcantar
Councilmember
Martin U. Fuentes
Councilmember
Cynthia Gonzalez
City Manager
Alfonso Noyola, ICMA‐CM
Incorporated November 10, 1960
April 6, 2023
Via U.S. Mail and Email:

Daniel and Goliath, LLC
Attn: Robert Gaither, Manager
4916 Cecilia Street Unit F
Cudahy, CA 90201
Re: DA 18‐020C
Dear Owner/Operator:

Below is a summary of payments currently due under the letter agreement on payment of outstanding fees and costs for Development Agreement DA 18‐020C.

Fee Type Payment
Amount
Payment Period City
Code
Community Benefit Program
$3,015.89
$761.91
2nd deferred monthly
payment.

April 2023 monthly fee
CBP
Cost Recovery Fee $4,911.78
$1,975.08
2nd deferred monthly
payment.

March 2023 monthly fee
URBF1
Total Fees   $10,664.66 Due May 1, 2023
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 242 of 379 Page 3154 of 4584 Page | 2
Community Benefit Program and Cost Recovery Fees
Beginning March 1, 2023, Operator agrees to maintain Community Benefit Program (CB) and Cost Recovery (CR) payments as they come due under the Development Agreement and shall not become delinquent on any payments by more than thirty (30) days from the payment due date.

Non‐Operating Fees
All Non‐Operating Fees (NOF) (past due and accruing) are deferred until six (6) months after Operator is first issued a Temporary Certificate of Occupancy for the Site. Six (6 months) after the first issuance of a Temporary Certificate of Occupancy for Site, the Finance Director shall notify Operator in writing of the start date for a twelve (12) month term for payment of the total accrued NOF fees then due and owing. The Finance Director will provide the Operator with notice of the payment term for accrued NOF fees by email or US Mail.

Please pay no later than May 1, 2023, to avoid any penalties.  If you have any questions relating to these items, please contact Joshua Calhoun at [email protected].

Sincerely,
Joshua Calhoun, CPA
Finance Director
See supporting detail attached of monthly billings and payments as of April 1, 2023.

Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 243 of 379 Page 3155 of 4584 CBP URBF1
Operator Comm Benefit Cost Recovery Outstanding
Tracking of
Deferred Non‐
OPFEES
Daniel and Goliath, LLC
Deferment Plan as of January 31, 2023            36,190.71           58,941.38                   95,132.09 17,668.56 Deferred Monthly Payments
April 1, 2023              3,015.89              4,911.78                     7,927.67 May 1, 2023              3,015.89             4,911.78                     7,927.67 June 1, 2023              3,015.89              4,911.78                     7,927.67 July 1, 2023              3,015.89              4,911.78                     7,927.67 August 1, 2023              3,015.89              4,911.78                     7,927.67 September 1, 2023              3,015.89              4,911.78                     7,927.67 October 1, 2023              3,015.89              4,911.78                     7,927.67 November 1, 2023              3,015.89              4,911.78                     7,927.67 December 1, 2023              3,015.89              4,911.78                     7,927.67 January 1, 2024              3,015.89              4,911.78                     7,927.67 February 1, 2024              3,015.89              4,911.78                     7,927.67 March 1, 2024              3,015.92              4,911.80                     7,927.72 Current Fees Due
February 2023                  761.91              2,504.00                     3,265.91                      339.78 March 203                  761.91             1,975.08                     2,736.99                      339.78 April 2023                  761.91                         761.91                      339.78 May 2023
June 2023
July 2023
August 2023
September 2023
October 2023
November 2023
December 2023
January 2024
February 2024
March 2024
Payments
Apr‐23
May‐23
Jun‐23
Jul‐23
Aug‐23
Sep‐23
Oct‐23
Nov‐23
Dec‐23
Jan‐24
Feb‐24
Mar‐24
Balance as of  April 1, 2023           38,476.44           63,420.46                101,896.90 18,687.90 Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 244 of 379 Page 3156 of 4584 Page | 1
5220 Santa Ana Street
Cudahy, CA, 90201
Phone: (323) 773‐5143
Fax: (323) 771‐2072
www.cityofcudahy.com
Mayor
Daisy Lomeli
Vice Mayor
Jose R. Gonzalez
Councilmember
Elizabeth Alcantar
Councilmember
Martin U. Fuentes
Councilmember
Cynthia Gonzalez
City Manager
Alfonso Noyola, ICMA‐CM
Incorporated November 10, 1960
May 15, 2023
Via U.S. Mail and Email:

Daniel and Goliath, LLC
Attn: Robert Gaither, Manager
4916 Cecilia Street Unit F
Cudahy, CA 90201
Re: DA 18‐020C
Dear Owner/Operator:

Below is a summary of payments currently due under the letter agreement on payment of outstanding fees and costs for Development Agreement DA 18‐020C.

Fee Type Payment
Amount
Payment Period City
Code
Community Benefit Program
$3,015.89
$3,015.89
$3,015.89
$3,047.64
1st deferred monthly
payment due April 1, 2023
2nd deferred monthly
payment due May 1, 2023.
3rd deferred monthly
payment due June 2023.

Feb 2023‐ May 2023
monthly fee
CBP
Cost Recovery Fee
$4,911.78
$4,911.78
$4,911.78
$6,545.93
1st deferred monthly
payment due April 1, 2023.
2nd deferred monthly
payment due May 1, 2023.
3rd deferred monthly
payment due June 1, 2023.

Feb 2023‐April 2023 monthly
fee
URBF1
Total Fees   $33,376.58 Due June 1, 2023
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 245 of 379 Page 3157 of 4584 Page | 2
Community Benefit Program and Cost Recovery Fees
Beginning March 1, 2023, Operator agrees to maintain Community Benefit Program (CB) and Cost Recovery (CR) payments as they come due under the Development Agreement and shall not become delinquent on any payments by more than thirty (30) days from the payment due date.

Non‐Operating Fees
All Non‐Operating Fees (NOF) (past due and accruing) are deferred until six (6) months after Operator is first issued a Temporary Certificate of Occupancy for the Site. Six (6 months) after the first issuance of a Temporary Certificate of Occupancy for Site, the Finance Director shall notify Operator in writing of the start date for a twelve (12) month term for payment of the total accrued NOF fees then due and owing. The Finance Director will provide the Operator with notice of the payment term for accrued NOF fees by email or US Mail.

Please pay no later than June 1, 2023, to avoid any penalties.  If you have any questionsrelating to these items, please contact Joshua Calhoun at [email protected].

Sincerely,
Joshua Calhoun, CPA
Finance Director
See supporting detail attached of monthly billings and payments as of May 1, 2023.

Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 246 of 379 Page 3158 of 4584 CBP URBF1
Operator Comm Benefit Cost Recovery Outstanding
Tracking of
Deferred Non‐
OPFEES
Daniel and Goliath, LLC
Deferment Plan as of January 31, 2023            36,190.71           58,941.38                   95,132.09 17,668.56 Deferred Monthly Payments
April 1, 2023              3,015.89             4,911.78                     7,927.67 May 1, 2023              3,015.89             4,911.78                     7,927.67 June 1, 2023              3,015.89             4,911.78                     7,927.67 July 1, 2023              3,015.89              4,911.78                     7,927.67 August 1, 2023              3,015.89              4,911.78                     7,927.67 September 1, 2023              3,015.89              4,911.78                     7,927.67 October 1, 2023              3,015.89              4,911.78                     7,927.67 November 1, 2023              3,015.89              4,911.78                     7,927.67 December 1, 2023              3,015.89              4,911.78                     7,927.67 January 1, 2024              3,015.89              4,911.78                     7,927.67 February 1, 2024              3,015.89              4,911.78                     7,927.67 March 1, 2024              3,015.92              4,911.80                     7,927.72 Current Fees Due
February 2023                  761.91             2,504.00                     3,265.91                      339.78 March 203                  761.91             1,975.08                     2,736.99                      339.78 April 2023                  761.91             2,066.85                    2,828.76                      339.78 May 2023                  761.91 pending                         761.91                      339.78 June 2023
July 2023
August 2023
September 2023
October 2023
November 2023
December 2023
January 2024
February 2024
March 2024
Payments
Apr‐23
May‐23
Jun‐23
Jul‐23
Aug‐23
Sep‐23
Oct‐23
Nov‐23
Dec‐23
Jan‐24
Feb‐24
Mar‐24
Balance as of  May 1, 2023            39,238.35           65,487.31                104,725.66 19,027.68 Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 247 of 379 Page 3159 of 4584 P a g e | 1
5220 Santa Ana Street
Cudahy, CA, 90201
Phone: (323) 773-5143
Fax: (323) 771-2072
www.cityofcudahy.com
Mayor
Daisy Lomeli
Vice Mayor
Jose R. Gonzalez
Councilmember
Elizabeth Alcantar
Councilmember
Martin U. Fuentes
Councilmember
Cynthia Gonzalez
City Manager
Alfonso Noyola, ICMA-CM
Incorporated November 10, 1960
June 12, 2023
Via U.S. Mail and Email:

Daniel and Goliath, LLC
Attn: Robert Gaither, Manager
4916 Cecilia Street Unit F
Cudahy, CA 90201
Re: DA 18-020C
Dear Owner/Operator:

Below is a summary of payments currently due under the letter agreement on payment of outstanding fees and costs for Development Agreement DA 18-020C.

Fee Type Payment
Amount
Payment Period City
Code
Community Benefit Program
$12, 063.56
$3,809.55
(4) Deferred Monthly
payments from April 2023 to
July 2023 are due July 1,
2023 ($3,015.89 x 4).

Feb 2023- June 2023 Current
Monthly Fees ($761.91 x 5).

CBP
Cost Recovery Fee $19,647.12
$8,394.48
(4) Deferred Monthly
payments from Apr 2023 to
Jul 2023 are due July 1, 2023
($4,911.78 x 4).

Feb 2023 – May 2023
Current Monthly fees
URBF1
Total Fees $43,914.71 Due July 1, 2023
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 248 of 379 Page 3160 of 4584 P a g e | 2
Community Benefit Program and Cost Recovery Fees
Beginning March 1, 2023, Operator agrees to maintain Community Benefit Program (CB) and Cost Recovery (CR) payments as they come due under the Development Agreement and shall not become delinquent on any payments by more than thirty (30) days from the payment due date.

Non-Operating Fees
All Non-Operating Fees (NOF) (past due and accruing) are deferred until six (6) months after Operator is first issued a Temporary Certificate of Occupancy for the Site. Six (6 months) after the first issuance of a Temporary Certificate of Occupancy for Site, the Finance Director shall notify Operator in writing of the start date for a twelve (12) month term for payment of the total accrued NOF fees then due and owing. The Finance Director will provide the Operator with notice of the payment term for accrued NOF fees by email or US Mail.

Please pay no later than July 1, 2023, to avoid any penalties. If you have any questions relating to these items, please contact Joshua Calhoun at [email protected].

Sincerely,
Joshua Calhoun, CPA
Finance Director
See supporting detail attached of monthly billings and payments as of June 1, 2023.

Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 249 of 379 Page 3161 of 4584 CBP URBF1
Operator Comm Benefit Cost Recovery Outstanding
Tracking of
Deferred Non‐
OPFEES
Daniel and Goliath, LLC
Deferment Plan as of January 31, 2023            36,190.71           58,941.38                   95,132.09 17,668.56 Deferred Monthly Payments
April 1, 2023              3,015.89             4,911.78                     7,927.67 May 1, 2023              3,015.89             4,911.78                     7,927.67 June 1, 2023              3,015.89             4,911.78                     7,927.67 July 1, 2023              3,015.89             4,911.78                     7,927.67 August 1, 2023              3,015.89              4,911.78                     7,927.67 September 1, 2023              3,015.89              4,911.78                     7,927.67 October 1, 2023              3,015.89              4,911.78                     7,927.67 November 1, 2023              3,015.89              4,911.78                     7,927.67 December 1, 2023              3,015.89              4,911.78                     7,927.67 January 1, 2024              3,015.89              4,911.78                     7,927.67 February 1, 2024              3,015.89              4,911.78                     7,927.67 March 1, 2024              3,015.92              4,911.80                     7,927.72 Current Fees Due
February 2023                  761.91             2,504.00                     3,265.91                      339.78 March 203                  761.91             1,975.08                     2,736.99                      339.78 April 2023                  761.91             2,066.85                    2,828.76                      339.78 May 2023                  761.91             1,848.55                     2,610.46                      339.78 June 2023                  761.91 pending                         761.91                      339.78 July 2023
August 2023
September 2023
October 2023
November 2023
December 2023
January 2024
February 2024
March 2024
Payments
Apr‐23
May‐23
Jun‐23
Jul‐23
Aug‐23
Sep‐23
Oct‐23
Nov‐23
Dec‐23
Jan‐24
Feb‐24
Mar‐24
Balance as of  June 1, 2023           40,000.26           67,335.86                107,336.12 19,367.46 Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 250 of 379 Page 3162 of 4584 P a g e | 1
5220 Santa Ana Street
Cudahy, CA, 90201
Phone: (323) 773-5143
Fax: (323) 771-2072
www.cityofcudahy.com
Mayor
Daisy Lomeli
Vice Mayor
Jose R. Gonzalez
Councilmember
Elizabeth Alcantar
Councilmember
Martin U. Fuentes
Councilmember
Cynthia Gonzalez
City Manager
Alfonso Noyola, ICMA-CM
Incorporated November 10, 1960
July 13, 2023
Via U.S. Mail and Email:

Daniel and Goliath, LLC
Attn: Robert Gaither, Manager
4916 Cecilia Street Unit F
Cudahy, CA 90201
Re: DA 18-020C
Dear Owner/Operator:

Below is a summary of past and current amounts due under Development Agreement DA 18-020C for Ordinance No 681, with an Effective date of June 5, 2018.

Fee Type Payment
Amount
Payment Period City
Code
Community Benefit Program $36,190.71
$4,571.46
Outstanding balance as of January
31, 2023.

February 2023 to July 2023 Monthly
Fees
CBP
Cost Recovery Fee $58,941.38
$10,472.76
Outstanding balance as of January
31, 2023.

February 2023 to June 2023
Monthly Fees.

URBF1
Non-Operating Fee $17,668.56
$2,038.68
$1,970.73
Outstanding balance as of January
31, 2023.

February 2023 – July 2023
The monthly no-operating fee is
$533.40 (.42 x 809 square footage
of the premises)
Penalties August 2022 – April 2023
OPFEE
Total Fees $131,854.28 Due July 31, 2023
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 251 of 379 Page 3163 of 4584 P a g e | 2
Community Benefit Program
The Community Benefit Program (CBP) payment amount is due the first day of each month and is considered late if payment is received on or after the fifth day of the month. All CBP outstanding balance as of January 31, 2023, and current CBP monthly installments from February 2023 to July 2023 totaling $40,762.17 are due July 31, 2023.

Cost Recovery Fee
The outstanding Cost Recovery Fees as of January 31, 2023, the City labor, and third-party contractors from February 2023 to June 2023 totaling $69,414.14 are due July 31, 2023.

Non-Operating Fees
The outstanding balance as of January 31, 2023, and the current monthly non-operating fees from February 2023 to July 2023 totaling $19,707.24 are due July 31, 2023.

Late Payment Penalties
Penalties totaling $1,970.73 from August 2022 to April 2023 are due July 31, 2023. Per the Development Agreement, amounts that are more than 30 days late after the due date shall result in a penalty equal to the sum of 25% of the non-operating/operating fees. In addition, a 10% shall be added to the first day of each calendar month following the month of the imposition of the 25% penalty if the fees remain unpaid in whole or in partup to a maximum of 100% of the fee payable. The City will be enforcing these penalties for amounts due from July 2022 to present, as appliable. No penalties will be imposed on amounts outstanding prior to this date. This will be separately listed on current and future invoice letters provided by the City. Should you wish to avoid penalties, ensure that either amounts payable are paid timely or contact the City to discuss entering into a payment plan on prior amounts outstanding.

Please pay no later than July 31, 2023, to avoid any penalties. If you have any questions relating to these items, please contact Joshua Calhoun at [email protected].

Sincerely,
Joshua Calhoun, CPA
Finance Director
See supporting detail attached of monthly billings and payments as of July 1, 2023.

Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 252 of 379 Page 3164 of 4584 CBP URBF1 OPFEE OPFEE
Operator Comm Benefit Cost Recovery Non Operating Penalties Outstanding Daniel and Goliath, LLC
Balance as of January 31, 2023            36,190.71           58,941.38             17,668.56       1,970.73        114,771.38

BILLINGS
Feb 2023                 761.91             2,504.00                  339.78 ‐                            3,605.69 March 2023                 761.91             1,975.08                  339.78 ‐                            3,076.77 April 2023                 761.91             2,066.85                  339.78 ‐                            3,168.54 May 2023                 761.91             1,848.55                  339.78 ‐                            2,950.24 Jun 2023                 761.91             2,078.28                  339.78 ‐                            3,179.97 Jul 2023                 761.91 pending                  339.78 ‐                            1,101.69 Aug 2023
Sep 2023
Oct 2023
Nov 2023
Dec 2023
Jan 2024
Feb 2024
Mar 2024
Apr 2024
May 2024
Jun 2024

PAYMENTS
Feb 2023
March 2023
April 2023
May 2023
June 2023
Jul 2023
Aug 2023
Sep 2023
Oct 2023
Nov 2023
Dec 2023
Jan 2024
Feb 2024
Mar 2024
Apr 2024
May 2024
June 2024
Balance as of July 1, 2023           40,762.17           69,414.14            19,707.24 ‐                      131,854.28 Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 253 of 379 Page 3165 of 4584 P a g e | 1
5220 Santa Ana Street
Cudahy, CA, 90201
Phone: (323) 773-5143
Fax: (323) 771-2072
www.cityofcudahy.com
Mayor
Daisy Lomeli
Vice Mayor
Jose R. Gonzalez
Councilmember
Elizabeth Alcantar
Councilmember
Martin U. Fuentes
Councilmember
Cynthia Gonzalez
City Manager
Alfonso Noyola, ICMA-CM
Incorporated November 10, 1960
August 15, 2023
Via U.S. Mail and Email:

Daniel and Goliath, LLC
Attn: Robert Gaither, Manager
4916 Cecilia Street Unit F
Cudahy, CA 90201
Re: DA 18-020C
Dear Owner/Operator:

Below is a summary of past and current amounts due under Development Agreement DA 18-020C for Ordinance No 681, with an Effective date of June 5, 2018.

Fee Type Payment
Amount
Payment Period City
Code
Community Benefit Program $36,190.71
$5,333.37
Outstanding balance as of January
31, 2023.

February 2023 to August 2023
Monthly Fees
CBP
Cost Recovery Fee $58,941.38
$10,900.89
Outstanding balance as of January
31, 2023.

February 2023 to July 2023 Monthly
Fees.

URBF1
Non-Operating Fee $17,668.56
$2,378.46
$1,970.73
Outstanding balance as of January
31, 2023.

February 2023 – August 2023
The monthly no-operating fee is
$533.40 (.42 x 809 square footage
of the premises)
Penalties August 2022 – April 2023
OPFEE
Total Fees $133,384.10 Due August 31, 2023
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 254 of 379 Page 3166 of 4584 P a g e | 2
Community Benefit Program
The Community Benefit Program (CBP) payment amount is due the first day of each month and is considered late if payment is received on or after the fifth day of the month. All CBP outstanding balance as of January 31, 2023, and current CBP monthly installments from February 2023 to August 2023 totaling $41,524.08 are due August 31, 2023.

Cost Recovery Fee
The outstanding Cost Recovery Fees as of January 31, 2023, the City labor, and third-party contractors from February 2023 to July 2023 totaling $69,842.27 are due August 31, 2023.

Non-Operating Fees
The outstanding balance as of January 31, 2023, and the current monthly non-operating fees from February 2023 to August 2023 totaling $20,047.02 are due August 31, 2023.

Late Payment Penalties
Penalties totaling $1,970.73 from August 2022 to April 2023 are due August 31, 2023. Per the Development Agreement, amounts that are more than 30 days late after the due date shall result in a penalty equal to the sum of 25% of the non-operating/operating fees. In addition, a 10% shall be added to the first day of each calendar month following the month of the imposition of the 25% penalty if the fees remain unpaid in whole or in partup to a maximum of 100% of the fee payable. The City will be enforcing these penalties for amounts due from July 2022 to present, as appliable. No penalties will be imposed on amounts outstanding prior to this date. This will be separately listed on current and future invoice letters provided by the City. Should you wish to avoid penalties, ensure that either amounts payable are paid timely or contact the City to discuss entering into a payment plan on prior amounts outstanding.

Please pay no later than August 31, 2023, to avoid any penalties. If you have any questions relating to these items, please contact Joshua Calhoun at [email protected].

Sincerely,
Joshua Calhoun, CPA
Finance Director
See supporting detail attached of monthly billings and payments as of August 1, 2023.

Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 255 of 379 Page 3167 of 4584 CBP URBF1 OPFEE OPFEE
Operator Comm Benefit Cost Recovery Non Operating Penalties Outstanding Daniel and Goliath, LLC
Balance as of January 31, 2023            36,190.71           58,941.38             17,668.56       1,970.73        114,771.38

BILLINGS
Feb 2023                 761.91             2,504.00                  339.78 ‐                            3,605.69 March 2023                 761.91             1,975.08                  339.78 ‐                            3,076.77 April 2023                 761.91             2,066.85                  339.78 ‐                            3,168.54 May 2023                 761.91             1,848.55                  339.78 ‐                            2,950.24 Jun 2023                 761.91             2,078.28                  339.78 ‐                            3,179.97 Jul 2023                 761.91                428.13                  339.78 ‐                           1,529.82 Aug 2023                 761.91 pending                  339.78 ‐                            1,101.69 Sep 2023
Oct 2023
Nov 2023
Dec 2023
Jan 2024
Feb 2024
Mar 2024
Apr 2024
May 2024
Jun 2024

PAYMENTS
Feb 2023
March 2023
April 2023
May 2023
June 2023
Jul 2023
Aug 2023
Sep 2023
Oct 2023
Nov 2023
Dec 2023
Jan 2024
Feb 2024
Mar 2024
Apr 2024
May 2024
June 2024
Balance as of August 1, 2023           41,524.08           69,842.27            20,047.02 ‐                       133,384.10 Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 256 of 379 Page 3168 of 4584 Page | 1

5220 Santa Ana Street
Cudahy, CA, 90201
Phone: (323) 773‐5143
Fax: (323) 771‐2072
www.cityofcudahy.com
Mayor
Daisy Lomeli
Vice Mayor
Jose R. Gonzalez
Councilmember
Elizabeth Alcantar
Councilmember
Martin U. Fuentes
Councilmember
Cynthia Gonzalez
City Manager
Alfonso Noyola, ICMA‐CM
Incorporated November 10, 1960
September 15, 2023
Via U.S. Mail and Email:

Daniel and Goliath, LLC
Attn: Robert Gaither, Manager
4916 Cecilia Street Unit F
Cudahy, CA 90201
Re: DA 18‐020C
Dear Owner/Operator:

Below is a summary of past and current amounts due under Development Agreement DA 18‐020C for Ordinance No 681, with an Effective date of June 5, 2018.

Fee Type Payment
Amount
Payment Period City
Code
Community Benefit Program $36,190.71
$6,095.28
Outstanding balance as of January
31, 2023.

February 2023 to September 2023
Monthly Fees
CBP
Cost Recovery Fee $58,941.38
$13,194.15
$6,027.93
Outstanding balance as of January
31, 2023.

February 2023 to August 2023
Monthly Fees.

Escrow Deposit Beginning Charge
URBF1
Non‐Operating Fee $17,668.56
$2,718.24
$3,669.63
Outstanding balance as of January
31, 2023.

February 2023 – September 2023
The monthly no‐operating fee is
$533.40 (.42 x 809 square footage
of the premises)
Penalties August 2022 – Sep 2023
OPFEE
Total Fees   $144,505.88 Due September 30, 2023
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 257 of 379 Page 3169 of 4584 Page | 2
Community Benefit Program
The Community Benefit Program (CBP) payment amount is due the first day of each month and is considered late if payment is received on or after the fifth day of the month. All CBP outstanding balance as of January 31, 2023, and current CBP monthly installments from February 2023 to September 2023 totaling $42,285.99 are due September 30, 2023.

Cost Recovery Fee
The outstanding Cost Recovery Fees as of January 31, 2023, the City labor, and third‐party contractors from February 2023 to August 2023 totaling $72,135.53 are due September 30, 2023.

Escrow Account
Effective September 15, 2023, the City will require Daniel and Goliath, LLC to make an upfront payment of assessed quarterly fees into a deposit to open an escrow account to obtain timely payment of those fees. By thisinvoice, the Department of Finance isinforming you that your beginning charge of your escrow deposit is $6,027.93.  This beginning charge of your escrow deposit is based on the average amount of cost recovery feesfrom July 2022 to June 2023 ($24,111.72) and it will be used to repay fees assessed by the City on a monthly basis beginning in the fourth quarter of 2023 and escrow will be replenished quarterly, as needed.  Please see attached worksheet.

Non‐Operating Fees
The outstanding balance as of January 31, 2023, and the current monthly non‐operating fees from February 2023 to September 2023 totaling $20,386.80 are due September 30, 2023.

Late Payment Penalties
Penalties totaling $3,669.73 from August 2022 to September 2023 are due September 30, 2023.  Per the Development Agreement, amounts that are more than 30 days late after the due date shall result in a penalty equal to the sum of 25% of the non‐operating/operating fees.  In addition, a 10% shall be added to the first day of each calendar month following the month of the imposition of the 25% penalty if the fees remain unpaid in whole or in part‐up to a maximum of 100% of the fee payable. The City will be enforcing these penalties for amounts due from July 2022 to present, as appliable.  No penalties will be imposed on amounts outstanding prior to this date. This will be separately listed on current and future invoice letters provided by the City.  Should you wish to avoid penalties, ensure that either amounts payable are paid timely or contact the City to discuss entering into a payment plan on prior amounts outstanding.

Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 258 of 379 Page 3170 of 4584 Page | 3
Please pay no later than September 30, 2023, to avoid any penalties. If you have any questions relating to these items, please contact Joshua Calhoun at [email protected].

Sincerely,
Joshua Calhoun, CPA
Finance Director

See supporting detail attached of monthly billings and payments as of September 7, 2023, along with Escrow Deposit Beginning Balance.

Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 259 of 379 Page 3171 of 4584 CBP URBF1 OPFEE OPFEE
Operator Comm Benefit Cost Recovery Non Operating Fees Penalties Outstanding Daniel and Goliath, LLC
Balance as of January 31, 2023            36,190.71           58,941.38                      17,668.56         112,800.65 Penalties from Aug 2022‐Apr 2023       1,970.73             1,970.73

BILLINGS
Feb 2023                 761.91             2,504.00                           339.78 ‐                            3,605.69 March 2023                 761.91             1,975.08                           339.78 ‐                            3,076.77 April 2023                 761.91             2,066.85                           339.78 ‐                            3,168.54 May 2023                 761.91             1,848.55                           339.78          339.78             3,290.02 Jun 2023                 761.91             2,078.28                           339.78          339.78             3,519.75 Jul 2023                 761.91                 428.13                           339.78          339.78             1,869.60 Aug 2023                 761.91             2,293.26                           339.78          339.78             3,734.73 Sep 2023                 761.91 pending                           339.78          339.78             1,441.47 Oct 2023
Nov 2023
Dec 2023
Jan 2024
Feb 2024
Mar 2024
Apr 2024
May 2024
Jun 2024

PAYMENTS
Feb 2023
March 2023
April 2023
May 2023
June 2023
Jul 2023
Aug 2023
Sep 2023
Oct 2023
Nov 2023
Dec 2023
Jan 2024
Feb 2024
Mar 2024
Apr 2024
May 2024
June 2024
Balance as of September 7, 2023            42,285.99           72,135.53                     20,386.80      3,669.63        138,477.95 Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 260 of 379 Page 3172 of 4584 Operator
Daniel and Goliath, LLC
As of September 15, 2023 $                                  6,027.75 Sep‐23 $                                  6,027.75
Oct‐23
Nov‐23
Dec‐23
Jan‐24
Feb‐24
Mar‐24
Apr‐24
May‐24
Jun‐24
Total $                                  6,027.75
Escrow Beginning
Balance
Billings Escrow Beginning
Balance
Deposits to
Escrow Account
Cost Recovery
Monthly Fees
Escrow Ending
Balance
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 261 of 379 Page 3173 of 4584 Page | 1

5220 Santa Ana Street
Cudahy, CA, 90201
Phone: (323) 773‐5143
Fax: (323) 771‐2072
www.cityofcudahy.com
Mayor
Daisy Lomeli
Vice Mayor
Jose R. Gonzalez
Councilmember
Elizabeth Alcantar
Councilmember
Martin U. Fuentes
Councilmember
Cynthia Gonzalez
City Manager
Alfonso Noyola, ICMA‐CM
Incorporated November 10, 1960
October 12, 2023
Via U.S. Mail and Email:

Daniel and Goliath, LLC
Attn: Robert Gaither, Manager
4916 Cecilia Street Unit F
Cudahy, CA 90201
Re: DA 18‐020C
Dear Owner/Operator:

Below is a summary of past and current amounts due under Development Agreement DA 18‐020C for Ordinance No 681, with an Effective date of June 5, 2018.

Fee Type Payment
Amount
Payment Period City
Code
Community Benefit Program $36,190.71
$6,857.19
Outstanding balance as of January
31, 2023.

February 2023 to October 2023
Monthly Fees
CBP
Cost Recovery Fee $58,941.38
$14,507.92
$6,027.93
Outstanding balance as of January
31, 2023.

February 2023 to September 2023
Monthly Fees.

Escrow Deposit Beginning Charge
URBF1
Non‐Operating Fee $17,668.56
$3,058.02
$4,009.41
Outstanding balance as of January
31, 2023.

February 2023 – October 2023
The monthly no‐operating fee is
$533.40 (.42 x 809 square footage
of the premises)
Penalties Aug 2022 – Oct 2023
OPFEE
Total Fees   $147,261.12 Due October 31, 2023
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 262 of 379 Page 3174 of 4584 Page | 2
Community Benefit Program
The Community Benefit Program (CBP) payment amount is due the first day of each month and is considered late if payment is received on or after the fifth day of the month. All CBP outstanding balance as of January 31, 2023, and current CBP monthly installments from February 2023 to October 2023 totaling $43,047.90 are due October 31, 2023.

Cost Recovery Fee
The outstanding Cost Recovery Fees as of January 31, 2023, the City labor, and third‐party contractors from February 2023 to September 2023 totaling $73,449.30 are due October 31, 2023.

Escrow Account
Effective September 15, 2023, the City will require Daniel and Goliath, LLC to make an upfront payment of assessed quarterly fees into a deposit to open an escrow account to obtain timely payment of those fees. By thisinvoice, the Department of Finance isinforming you that your beginning charge of your escrow deposit is $6,027.93.  This beginning charge of your escrow deposit is based on the average amount of cost recovery feesfrom July 2022 to June 2023 ($24,111.72) and it will be used to repay fees assessed by the City on a monthly basis beginning in the fourth quarter of 2023 and escrow will be replenished quarterly, as needed.  Please see attached worksheet.

Non‐Operating Fees
The outstanding balance as of January 31, 2023, and the current monthly non‐operating fees from February 2023 to October 2023 totaling $20,726.58 are due October 31, 2023.

Late Payment Penalties
Penalties totaling $3,669.73 from August 2022 to October 2023 are due October 31, 2023.

Per the Development Agreement, amounts that are more than 30 days late after the due date shall result in a penalty equal to the sum of 25% of the non‐operating/operating fees.

In addition, a 10% shall be added to the first day of each calendar month following the month of the imposition of the 25% penalty if the fees remain unpaid in whole or in part‐ up to a maximum of 100% of the fee payable. The City will be enforcing these penalties for amounts due from July 2022 to present, as appliable.  No penalties will be imposed on amounts outstanding prior to this date. This will be separately listed on current and future invoice letters provided by the City.  Should you wish to avoid penalties, ensure that either amounts payable are paid timely or contact the City to discuss entering into a payment plan on prior amounts outstanding.

Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 263 of 379 Page 3175 of 4584 Page | 3
Please pay no later than October 31, 2023 to avoid any penalties. If you have any questions relating to these items, please contact Joshua Calhoun at [email protected].

Sincerely,
Joshua Calhoun, CPA
Finance Director
See supporting detail attached of monthly billings and payments as of October 1, 2023, along with Escrow Deposit Beginning Balance Worksheet.

Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 264 of 379 Page 3176 of 4584 CBP URBF1 OPFEE OPFEE
Operator Comm Benefit Cost Recovery Non Operating Fees Penalties Outstanding Daniel and Goliath, LLC
Balance as of January 31, 2023            36,190.71           58,941.38 17,668.56         112,800.65 Penalties from Aug 2022‐Apr 2023       1,970.73             1,970.73

BILLINGS
Feb 2023 761.91             2,504.00 339.78 ‐              3,605.69 March 2023 761.91             1,975.08 339.78 ‐              3,076.77 April 2023 761.91             2,066.85 339.78 ‐              3,168.54 May 2023 761.91             1,848.55 339.78          339.78             3,290.02 Jun 2023 761.91             2,078.28 339.78          339.78             3,519.75 Jul 2023 761.91                 428.13 339.78          339.78             1,869.60 Aug 2023 761.91            2,293.26 339.78         339.78             3,734.73 Sep 2023 761.91             1,313.77 339.78          339.78             2,755.24 Oct 2023 761.91 pending 339.78          339.78             1,441.47 Nov 2023
Dec 2023
Jan 2024
Feb 2024
Mar 2024
Apr 2024
May 2024
Jun 2024

PAYMENTS
Feb 2023
March 2023
April 2023
May 2023
June 2023
Jul 2023
Aug 2023
Sep 2023
Oct 2023
Nov 2023
Dec 2023
Jan 2024
Feb 2024
Mar 2024
Apr 2024
May 2024
June 2024
Balance as of October 1, 2023            43,047.90           73,449.30 20,726.58       4,009.41        141,233.19 Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 265 of 379 Page 3177 of 4584 Operator
Daniel and Goliath, LLC
As of September 15, 2023 $                                  6,027.93 Sep‐23 $                                  6,027.93
Oct‐23
Nov‐23
Dec‐23
Jan‐24
Feb‐24
Mar‐24
Apr‐24
May‐24
Jun‐24
Total as of October 1, 2023 $                                  6,027.93 Escrow Beginning
Balance
Billings Deposits to
Escrow Account
Cost Recovery
Monthly Payments
Escrow Ending
Balance
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 266 of 379 Page 3178 of 4584 ATTACHMENT Q.

Invoices from 2019 to September 2023
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 267 of 379 Page 3179 of 4584 Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 268 of 379