Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 37 of 379 Page 3401 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.
j
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 38 of 379 Page 3402 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 3403 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 3404 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 3405 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
\
\
j
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 42 of 379 Page 3406 of 4584 )
j
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 3407 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
)
J
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 44 of 379 Page 3408 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 3409 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 3410 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 3411 of 4584 ATTACHMENT B.
City Council Resolution No. 18-17
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 48 of 379 Page 3412 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 3413 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 3414 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 3415 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 3416 of 4584 ATTACHMENT C.
CCP18-0019 Conditions of Approval
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 53 of 379 Page 3417 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 3418 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.
Planning Commission Hearing – April 30, 2018
CCP18-0019
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;
Planning Commission Hearing – April 30, 2018
CCP18-0019
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.
Planning Commission Hearing – April 30, 2018
CCP18-0019
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
Planning Commission Hearing – April 30, 2018
CCP18-0019
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.
Planning Commission Hearing – April 30, 2018
CCP18-0019
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
Planning Commission Hearing – April 30, 2018
CCP18-0019
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.
Planning Commission Hearing – April 30, 2018
CCP18-0019
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.
Planning Commission Hearing – April 30, 2018
CCP18-0019
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.
Planning Commission Hearing – April 30, 2018
CCP18-0019
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.
Planning Commission Hearing – April 30, 2018
CCP18-0019
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.
Planning Commission Hearing – April 30, 2018
CCP18-0019
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.
Planning Commission Hearing – April 30, 2018
CCP18-0019
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
Planning Commission Hearing – April 30, 2018
CCP18-0019
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.
Planning Commission Hearing – April 30, 2018
CCP18-0019
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 3434 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.
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 71 of 379 Page 3435 of 4584
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 3436 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 3437 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 3438 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 3439 of 4584 ATTACHMENT E.
Development Agreement No. 18-020C
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 76 of 379 Page 3440 of 4584 Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 77 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 78 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 79 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 80 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 81 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 82 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 83 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 84 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 85 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 86 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 87 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 88 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 89 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 90 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 91 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 92 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 93 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 94 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 95 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 96 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 97 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 98 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 99 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 100 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 101 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 102 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 103 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 104 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 105 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 106 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 107 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 108 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 109 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 110 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 111 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 112 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 113 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 114 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 115 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 116 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 117 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 118 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 119 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 120 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 121 of 379
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 3486 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 3487 of 4584 EXHIBIT “A”
LEGAL DESCRIPTION
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 124 of 379 Page 3488 of 4584 Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 125 of 379 Page 3489 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 3490 of 4584 Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 127 of 379 Page 3491 of 4584 EXHIBIT “B”
PARCEL MAP
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 128 of 379 Page 3492 of 4584 Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 129 of 379 Page 3493 of 4584 EXHIBIT “C”
LANDLORD CONSENT
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 130 of 379 Page 3494 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.
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 131 of 379 Page 3495 of 4584 Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 132 of 379 Page 3496 of 4584 Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 133 of 379 Page 3497 of 4584 Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 134 of 379 Page 3498 of 4584 Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 135 of 379 Page 3499 of 4584 Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 136 of 379 Page 3500 of 4584 EXHIBIT “A”
LEGAL DESCRIPTION
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 137 of 379 Page 3501 of 4584 Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 138 of 379 Page 3502 of 4584 EXHIBIT “B”
PARCEL MAP
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 139 of 379 Page 3503 of 4584 Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 140 of 379 Page 3504 of 4584 EXHIBIT “C”
LEASE
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 141 of 379 Page 3505 of 4584 Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 142 of 379 Page 3506 of 4584 Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 143 of 379 Page 3507 of 4584 Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 144 of 379 Page 3508 of 4584 Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 145 of 379 Page 3509 of 4584 Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 146 of 379 Page 3510 of 4584 Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 147 of 379 Page 3511 of 4584 Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 148 of 379 Page 3512 of 4584 Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 149 of 379 Page 3513 of 4584 Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 150 of 379 Page 3514 of 4584 Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 151 of 379 Page 3515 of 4584 Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 152 of 379 Page 3516 of 4584 Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 153 of 379 Page 3517 of 4584 Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 154 of 379 Page 3518 of 4584 Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 155 of 379 Page 3519 of 4584 Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 156 of 379 Page 3520 of 4584 Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 157 of 379 Page 3521 of 4584 Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 158 of 379 Page 3522 of 4584 Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 159 of 379 Page 3523 of 4584 Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 160 of 379 Page 3524 of 4584 Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 161 of 379 Page 3525 of 4584 Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 162 of 379 Page 3526 of 4584 Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 163 of 379 Page 3527 of 4584 Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 164 of 379 Page 3528 of 4584 Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 165 of 379 Page 3529 of 4584 Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 166 of 379 Page 3530 of 4584 Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 167 of 379 Page 3531 of 4584 Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 168 of 379 Page 3532 of 4584 Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 169 of 379 Page 3533 of 4584 Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 170 of 379 Page 3534 of 4584 Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 171 of 379 Page 3535 of 4584 EXHIBIT “D”
SITE AND FLOOR PLANS
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 172 of 379 Page 3536 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 3539 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 3540 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 3541 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 3543 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 3546 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 3549 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 3550 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 3551 of 4584 ATTACHMENT K.
Letter of Agreement (Payment Plan)
dated February 1, 2023
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 188 of 379 Page 3552 of 4584 Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 189 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 190 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 191 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 192 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 193 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 194 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 195 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 196 of 379
ATTACHMENT L.
Correspondence Letter- April, May, and
June Delinquency notices.
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 197 of 379 Page 3561 of 4584 Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 198 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 199 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 200 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 201 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 202 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 203 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 204 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 205 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 206 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 207 of 379
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
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 208 of 379 Page 3572 of 4584 Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 209 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 210 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 211 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 212 of 379
ATTACHMENT M.
Final Demand Letter dated June 23, 2023
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 213 of 379 Page 3577 of 4584 Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 214 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 215 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 216 of 379
ATTACHMENT N.
Correspondence – Notice of Escrow
Account dated August 9, 2023
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 217 of 379 Page 3581 of 4584 Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 218 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 219 of 379
ATTACHMENT O.
Correspondence – Notice of updated
payment of fees dated October 24, 2023
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 220 of 379 Page 3584 of 4584 Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 221 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 222 of 379
ATTACHMENT P.
Invoices from October 2022 to October
2023
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 223 of 379 Page 3587 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 3588 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 3589 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 3590 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 3591 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 3592 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 3593 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 3594 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 3595 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 3596 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 3597 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 3598 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 3599 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 3600 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 3601 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 3602 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 3603 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 3604 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 3605 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 3606 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 3607 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 3608 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 3609 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 3610 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 3611 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 3612 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 3613 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 3614 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 3615 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 3616 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 3617 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 3618 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 3619 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 3620 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 3621 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 3622 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 3623 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 3624 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 3625 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 3626 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 3627 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 3628 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 3629 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 3630 of 4584 ATTACHMENT Q.
Invoices from 2019 to September 2023
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 267 of 379 Page 3631 of 4584 Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 268 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 269 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 270 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 271 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 272 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 273 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 274 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 275 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 276 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 277 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 278 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 279 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 280 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 281 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 282 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 283 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 284 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 285 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 286 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 287 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 288 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 289 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 290 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 291 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 292 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 293 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 294 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 295 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 296 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 297 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 298 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 299 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 300 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 301 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 302 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 303 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 304 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 305 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 306 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 307 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 308 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 309 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 310 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 311 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 312 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 313 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 314 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 315 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 316 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 317 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 318 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 319 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 320 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 321 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 322 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 323 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 324 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 325 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 326 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 327 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 328 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 329 of 379
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 330 of 379 Page 3694 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 331 of 379 Page 3695 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 332 of 379 Page 3696 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 333 of 379 Page 3697 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 334 of 379 Page 3698 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 335 of 379 Page 3699 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 336 of 379 Page 3700 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 337 of 379 Page 3701 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 338 of 379 Page 3702 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 339 of 379 Page 3703 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 340 of 379 Page 3704 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 341 of 379 Page 3705 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 342 of 379 Page 3706 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 343 of 379 Page 3707 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 344 of 379 Page 3708 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 345 of 379 Page 3709 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 346 of 379 Page 3710 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 347 of 379 Page 3711 of 4584 Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 348 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 349 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 350 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 351 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 352 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 353 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 354 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 355 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 356 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 357 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 358 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 359 of 379
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 360 of 379 Page 3724 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 361 of 379 Page 3725 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 362 of 379 Page 3726 of 4584 Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 363 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 364 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 365 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 366 of 379
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 367 of 379
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 368 of 379 Page 3732 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 369 of 379 Page 3733 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 370 of 379 Page 3734 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 371 of 379 Page 3735 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 372 of 379 Page 3736 of 4584 ATTACHMENT R.
Certificate of Status with the Secretary
of State of California dated October 31,
2023
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 373 of 379 Page 3737 of 4584 Secretary of State
Certificate of Status
I, SHIRLEY N. WEBER, PH.D., California Secretary of State, hereby certify:
The above referenced entity's powers, rights and privileges are suspended in California.
This certificate relates to the status of the entity on the Secretary of State’s records as of the date of this certificate and does not reflect documents that are pending review or other events that may affect status.
No information is available from this office regarding the financial condition, status of licenses, if any, business activities or practices of the entity.
Suspended - FTB
Entity Name:
Entity No.:
Registration Date:
Entity Type:
201731310504
11/09/2017
Limited Liability Company - CA
Status:
Formed In: CALIFORNIA
DANIEL & GOLIATH, LLC
IN WITNESS WHEREOF, I execute this certificate and affix the Great Seal of the State of California this day of October 31, 2023.
SHIRLEY N. WEBER, PH.D.
Secretary of State
Certificate No.:
To verify the issuance of this Certificate, use the Certificate No. above with the Secretary of State Certification Verification Search available at bizfileOnline.sos.ca.gov. 155800822
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 374 of 379 Page 3738 of 4584 ATTACHMENT S.
Notice of Hearing dated October 12,
2023
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 375 of 379 Page 3739 of 4584
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, Ed.D
City Manager
Alfonso Noyola, ICMA-CM
Incorporated November 10, 1960
SENT VIA USPS-CERTIFIED MAIL
October 12, 2023
Attn: Baham “Daniel” Rafalian, Managing Member
Daniel and Goliath, LLC
5812 West Washington Blvd.
Culver City, CA 90232
Daniel and Goliath, LLC
4916 Cecilia Street, Unit F
Cudahy, CA 90201
RE: 4916 Cecilia St., Unit F Cudahy, CA 90201 – Daniel and Goliath, LLC Development Agreement No. DA18-020C
Commercial Cannabis Permit No. CCP18-0019
NOTICE OF REVIEW HEARING
Hearing Date: Tuesday, November 14th, 2023.
Time: 9:00 a.m.
Place: 5220 Santa Ana St. Cudahy CA 90201 – Bedwell Hall, Council Chambers.
Dear Daniel and Goliath, LLC,
This letter is to inform you that the City Manager of the City of Cudahy (“City”) has appointed Steve Napolitano to act as an independent hearing officer for a Review Hearing on your compliance with the terms of your Development Agreement (“Agreement”) with the City.
Under Section 19 of the Agreement, the City may conduct Periodic and Special Reviews of the Owner's "good faith compliance with the terms of the Agreement." The burden of proof is on the Owner to demonstrate compliance. Please submit any arguments and supporting documents evidencing compliance ten (10) days prior to the Review Hearing. In the event of a finding of noncompliance, the City Council may terminate the Agreement or impose such conditions as are reasonably necessary to protect the interests of the City in accordance with the Agreement and state law. The decision of the City Council shall be final, subject only to judicial review pursuant to Code of Civil Procedure Section 1094.5.
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 376 of 379 Page 3740 of 4584 P a g e | 2
This letter shall also serve as notice that the findings of this Review Hearing may inform the City Manager’s decision to revoke or suspend Commercial Cannabis Permit No. CCP18-019 pursuant to Cudahy Municipal Code (“CMC”) Section 5.20.080(6), due to a failure to comply with the requirements of Chapter 5.20 of the CMC, or any condition of approval, or any other agreement or covenant required – inclusive of this Agreement.
The estimated cost for the Review Hearing is $12,695. The Owner is responsible for the cost of the Review Hearing. You are requested to deliver a cashier's check payable to the City of Cudahy three (3) days prior to the hearing date. The Review Hearing will proceed as scheduled whether or not the deposit is made; however, the City may consider the failure to make the deposit a further default on the Development Agreement. The hearing is set for:
Date: Tuesday, November 14, 2023.
Time: 9:00 a.m.
Place: 5220 Santa Ana St. Cudahy CA 90201 – Bedwell Hall – Council Chambers.
Please contact Cecilia Madrigal-Gonzalez, Senior Planner at 323-773-5143 ext. 252 or [email protected] no later than ten (10) days from the date of this letter to confirm your appearance at the Review hearing. If we do not hear back from you by this date, we will assume you waive your right to present evidence at the hearing. Please be advised that the City’s Staff Report with exhibits will be available, upon request, for your review ten (10) days prior to the Hearing.
Respectfully,
Cecilia Madrigal-Gonzalez
Senior Planner
cc: Law Office of Glenn Ward Calsada, Special Counsel
Stephanie A. Arechiga, Esq., City Attorney
Alfonso Noyola, City Manager
Juan Arauz, AICP, Community Development Director
Joshua Calhoun, Finance Director
Jessica Guillen, Assistant Planner
Philip Kfoury, (via email)
Daffodil Tyminski, (via email)
Daniel Rafalian, (via email)
Shaoul J. Levy, Landlord (via mail)
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 377 of 379 Page 3741 of 4584 ATTACHMENT T.
Proof of certified mailing of Notice of
Hearing, October 12, 2023
Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 378 of 379 Page 3742 of 4584 Administrative Record - Review Hearing for Daniel and Goliath, LLC Page 379 of 379
Napolitano Law + Counsel
Law | Arbitration | Mediation | Adjudication
DECISION and ORDER
Administrative Hearing Regarding Compliance by Daniel and Goliath LLC (Respondent) with Commercial Cannabis Permit (CCP) 18-0019 and Development Agreement (DA) 18-020C Between Respondent and the City of Cudahy (City)
Hearing Date: November 14, 2023
Hearing Officer: Steve Napolitano, Esq.
The hearing took place in the City Council Chambers at Cudahy City Hall, 5220 Santa Ana St., Cudahy, CA 90201. The hearing was recorded and is available through the City Clerk’s Office.
Respondent: The Daniel and Goliath LLC, 4916 Cecilia St., Unit F, Cudahy, CA 90201. Respondent did not appear and was not represented at the hearing.
City was present and represented by:
• Cecilia Madrigal-Gonzalez, Senior Planner.
• Joshua Calhoun, Finance Director
• Juan Arauz, Community Development Director
• Jessica Guillen, Assistant Planner
• Raul Diaz, Building Official
• Glenn Calsada, Special Counsel
• Paloma McEvoy, City Attorney
• Richard Iglesias, City Clerk
DECISION SUMMARY
Based on the evidence and analysis discussed below, this Hearing Officer finds that a preponderance of the evidence shows that Respondent, despite considerable notice and opportunities to cure any issues, has breached the terms and conditions of DA 18-020C and Respondent’s portion of its CCP and recommends that the Planning Commission and/or City Council repeal Ordinance No. 680 and terminate DA 18-020C and revoke Respondent’s interest under CCP 18-0019.
ADMINISTRATIVE HEARING PROCEDURES
All state and local public entities are subject to due process of law. State agencies are subject to statutory requirements, including the Administrative Procedures Act. Local public agencies are, with some minor exceptions, not subject to the APA and generally subject only to the constitutional limitations of due process of law. Govt. Code §11410.30. While a local agency may elect to apply some or all of the provisions of the APA to its hearings, the City has not done so.
The process required by law are those imposed by our constitution(s) as well as any procedures adopted by the County. In Mohilef v. Janovici (1996) 51 Cal.App.4th 267 and E.W.A.P., Inc. v. City of Los Angeles (1997) 56 Cal.App.4th 310, the court explored what due process is necessary in an administrative proceeding. There is general agreement that there must be notice and an opportunity to be heard. Beyond this, “there is no precise manner of hearing which must be afforded; rather the particular interests at issue must be considered in determining what kind of hearing is appropriate. A formal hearing, with full rights of confrontation and cross-examination is not necessarily required.
Attachment GPage 3744 of 4584
Napolitano Law + Counsel
Law | Arbitration | Mediation | Adjudication
(Saleeby v. State Bar (1985) 39 Cal.3d 547, 565, 216 Cal.Rptr. 367, 702 P.2d 525.) ‘Due process’ is an elusive concept. Its exact boundaries are undefinable, and its content varies according to specific factual contexts.” Mohilef at 286. Our Supreme Court has stated, “[D]ue process may require only that the administrative agency comply with the statutory limitations on its authority.” People v. Ramirez (1979) 25 Cal.3d 260, 269
Beyond notice and a hearing, the procedures available in this case to the participants are those provided by Cudahy Municipal Code (CMC) 5.20.080.
The legal standard of review applicable to an administrative hearing is based on a preponderance of the evidence, or “evidence which is of greater weight and more convincing than the evidence which is offered in opposition to it; that is evidence which as a whole shows that the fact sought to be proved is more probable than not.” Black’s Law Dictionary, Fifth Edition.
BACKGROUND
Background information was presented in the City’s Staff Report dated November 14, 2023, with attachments A through T, which were admitted into the record.
On September 11, 2017, the City adopted Ordinance No. 673 (Attachment A) establishing the City’s commercial cannabis production activity regulations codified in Chapter 5.20 of the 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.) 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 Respondent 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 Respondent 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 Respondent and the City authorizing commercial cannabis delivery activities at 4916 Cecelia Street Unit F (“Site”) as illustrated in Figures 1 and 2 of the City’s staff report. Recital I of the Development Agreement permits the Respondent to utilize approximately 800 square feet of the Site for cannabis delivery. The Respondent is one of seven 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.
On October 2, 2019, the City provided the Respondent 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 Respondent 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 Respondent with a Notice of Default due to payment noncompliance (Attachment H) with a payment of fees and associated penalties in the amount of forty
Napolitano Law + Counsel
Law | Arbitration | Mediation | Adjudication
thousand nine hundred thirty-three dollars and sixty-four cents ($40,933.64). The Respondent 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 Respondent a Final Demand Letter due to payment noncompliance (Attachment I) due to payment non-compliance, informing the Respondent that fees and penalties had accumulated to forty-five thousand three hundred forty dollars and forty cents ($45,340.40). The Respondent was given no later than 30-days to 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 all cannabis operators with the accumulated non-operating and other fees by deferring and providing additional time for payment without penalty. 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 Respondent 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 Respondent with a Letter of Agreement (payment plan) agreeing to forbear outstanding payment due on the DA (Attachment K).
The Respondent accepted the proposed terms on February 2, 2023, and agreed to begin payments on March 1, 2023. The Respondent 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 Respondent is in ‘default status’ on its obligations under its Development Agreement with the City.” Between April and June 2023, the City notified the Respondent 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 is no 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 Respondent 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 Respondent 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 Respondent has not opened an escrow account nor made any payments into the account. On October 12, 2023, the City issued the Respondent 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 Respondent 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 $14,950.50. As of October 24, 2023, Respondent 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
Napolitano Law + Counsel
Law | Arbitration | Mediation | Adjudication
continue to accrue and the total amount due may be higher as of the date of the Review Hearing on November 14, 2023.
PROCEDURAL ISSUES
As noted, Respondent did not participate and was not represented at the hearing. No evidence was submitted by Respondent.
Evidence submitted prior to the hearing by City staff and testimony and statements made at the hearing by City staff are incorporated herein by reference, including the City’s staff report dated November 14, 2023, with attachments A through T, which were admitted into evidence.
Pursuant to CMC 5.20.080(6), the City Manager or his designee may determine if a Cannabis Permittee has failed to comply with any condition, agreement, or covenant with the City. In the event of any material violation, the City Manager or his designee may suspend or revoke a cannabis permit.
Under section 19 of Respondent’s DA, the City may conduct Periodic and Special Reviews of Respondent’s “good faith compliance with the terms of the Agreement,” noting that the burden of proof is on the Owner [Respondent]. In the event of a finding of noncompliance, the City Manager may report the matter to the Planning Commission and City Council with recommended actions. The City Council may terminate the Agreement or impose such conditions as are reasonably necessary to protect the interests of the City.
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).
The City engaged this Hearing Officer to conduct an impartial, independent review of the evidence in this matter and determine whether Respondent is in compliance with its CCP and DA between itself and the City.
No objections or other procedural issues were raised.
Presenting City Staff members were sworn in prior to giving testimony.
EVIDENCE
Cecilia Madrigal-Gonzalez, Senior Planner, provided an overview of the City’s staff report. Ms.
Madrigal-Gonzalez asked the Hearing Officer to make the recommended findings to repeal and revoke Respondent’s portion of the CCP and their DA in its entirety based on the City’s staff report and the testimony by City staff at the hearing.
Joshua Calhoun, Finance Director, testified as to the accuracy of amounts owed by Respondent and that Respondent had failed to make their required payments.
Glenn Calsada, Special Counsel, confirmed that Respondent’s status as a legal entity was suspended.
Napolitano Law + Counsel
Law | Arbitration | Mediation | Adjudication
Raul Diaz, Building Official, testified that no permits were issued for any site improvements and no certificate of occupancy had been issued to Respondent. Ms. Madrigal-Gonazalez also confirmed that no zoning clearances were issued.
Richard Iglesias, City Clerk, testified that all documents were true and correct copies and all mailing procedures under the CMC were followed.
ANALYSIS
Pursuant to the CMC 5.20.080(6)(a), “Any material violations of this chapter or any other relevant city law by a cannabis permittee, or cannabis permittee’s agent, is grounds for suspending or revoking the relevant cannabis permit.” To suspend or revoke a cannabis permit the City Manager or the City Manager’s Designee [Hearing Officer] must determine “that the cannabis permittee has failed to comply with any conditions of approval, or any agreement or covenant as required pursuant to this chapter” (CMC 5.20.080(6)(a)).
The City asserts that Respondent has made several material violations of the CCP and/or DA as outlined in the City’s Staff Report and testimony, which will be discussed as follows.
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 Respondent 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 non-operating] fee each year since 2018. The Respondent 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 Respondent 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 of the City’s the staff report. Past-due payments continue to accumulate, including late payment penalties. The Respondent 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 Respondent is in breach of its payment obligation under DA No. 18-020C.
On June 5, 2018, Respondent 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 Respondent which was accepted, and the first payment due on March 1, 2023. The Respondent 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 Respondent 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.
The City staff report theorizes several potential defenses that Respondent may assert and discusses how each defense would fail. The Hearing Officer agrees but finds no need for further analysis as Respondent has made no such argument itself, as Respondent failed to provide any evidence contrary to that presented by the City. Respondent knew and accepted the terms of the agreement, including all
Napolitano Law + Counsel
Law | Arbitration | Mediation | Adjudication
payment provisions, willingly and voluntarily and has not disputed their imposition. It is understood that Respondent requested the City forgive Non-Operating Fees for an 18 month period but did not provide a legally valid reason that would allow such a forgiveness, nor was such a forgiveness ever approved by the City.
Based on the evidence provided by the City above, and the failure of Respondent to provide any evidence to the contrary, a preponderance of the evidence shows that Respondent has breached the terms of DA No. 18-020C by failing to make all required payments to the City as required.
Similarly, The Respondent has failed to comply with Conditions of Approval No. 1(a) and (b) of the CCP, which required the Respondent to pay all City-issued invoices within 30 days of receipt thereof.
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 Respondent is required to pay all City-issued invoices within 30 days of receipt thereof. The City has sent the Respondent 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 Respondent 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 Respondent has failed to cure its monetary obligations owed to the City.
Additionally, pursuant to Condition of Approval Nos. 21 and 45, the Respondent’s failure to pay all fees constitutes a cross-breach of Development Agreement No. 18-020C and is grounds for revocation of the CCP.
The Respondent’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 Respondent's interest in the CCP for the Site.
Again, based on the unrefuted evidence presented by the City above, a preponderance of the evidence shows that Respondent breached multiple conditions of their DA and CCP. Despite multiple attempts and notices by the City to gain compliance, the evidence shows that Respondent 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.
2. Noncompliance with State Law
Under DA Art. 4.a. [Facility Operations], Respondent must be a lawful entity capable of operating in accordance with a state-issued cannabis license at all times.
Attachment R shows the Certificate of Status with the Secretary of State of California dated October 31, 2023, which states, “The above-referenced entity’s [Respondent] powers, rights and privileges are suspended in California.” Despite notice of default and opportunity to cure, Respondent’s entity status remains “FTB/SOS” suspended by the California Secretary of State and, as such, the entity is unable to operate in the State of California.
According 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. & Tax Code Sec. 23301 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 Diegans for Open Government (2016) 3 Cal.App.5th 568, 577.
Napolitano Law + Counsel
Law | Arbitration | Mediation | Adjudication
Based on the evidence provided by the City, and the failure of Respondent to provide any evidence to the contrary, a preponderance of the evidence shows that Respondent is not a current legal entity capable of operating in California in violation of DA Art. 4.a.
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 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 Respondent’s DA 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/Respondent 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/Respondent to complete construction of Phase I. CCP Condition No. 51A.iii sets a 180-day time limit from the effective date of the CCP for the Permittee/Respondent to complete all Tenant Improvements and construction and to obtain a Certificate of Occupancy from the City Building Department. The City Manager may grant an extension of time if the Permittee/Respondent has made a diligent effort to implement the Project.
Here, Respondent 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 Respondent for an extension of time by the City Manager and there is no evidence the Respondent has made substantial progress such as submitting for a zoning clearance or submitting for a building permit plan check.
Respondent was given notice of default and an opportunity to cure by the City’s Final Demand letter dated October 12, 2023 with no response from Respondent.
Based on the evidence provided by the City, and the failure of Respondent to provide any evidence to the contrary, a preponderance of the evidence shows that Respondent has failed to meet 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.
DECISION AND ORDER
Based on the evidence and analysis discussed above, this Hearing Officer finds that a preponderance of the evidence shows that Respondent, despite considerable notice and opportunities to cure any issues, has breached the terms and conditions of DA 18-020C and Respondent’s portion of its CCP and recommends that the Planning Commission and/or City Council repeal Ordinance No. 680 and terminate DA 18-020C and revoke respondent’s interest under CCP 18-0019.
This decision does not affect the payments and penalties outlined in the City’s Staff Report, which are still accumulating, owed and due to City from Respondent.
Napolitano Law + Counsel
Law | Arbitration | Mediation | Adjudication
Submitted January 18, 2024 by Steve Napolitano, Esq., Administrative Hearing Officer.
Steve Napolitano, Esq.
Napolitano Law & Counsel
Attachment H
1 From: Sebastian Rucci <[email protected]>
Sent: Saturday, January 6, 2024 12:03 AM
To: Jose R. Gonzalez; Elizabeth Alcantar; Daisy Lomeli; [email protected]; [email protected]; [email protected]; [email protected]; Cecilia Madrigal; Richard Iglesias; [email protected]; Paloma McEvoy; [email protected]; Juan Arauz; [email protected]
Cc: Daffodil; Daffodil; Cudahy - Phil Kfoury; Cudahy - Christian Subject: NOTICE TO CURE BREACH OF DEVELOPMENT AGREEMENTS Attachments: Cudahy Notice to Cure Default (1-05-23).pdf; Exhibit Mammoth Lakes Case.pdf NOTICE TO CURE BREACH OF DEVELOPMENT AGREEMENTS for 4916 Cecilia Street; Notice of Protest to Illegal Fees and Agreement to Post Bond Pending Outcome of Fee Dispute under Gov. Code § 66020.
Dear Mayor, Vice Mayor, Council Members, City Officials, and City Representatives:
Our office represents the seven cannabis operators with development agreements at 4916 Cecilia Street, see Ordinance No. 676 through 682. Under Section 14, titled “Defaults and Remedies,” the cannabis operators give the City notice of its “default” and “breach” of the development agreements, specifying “the nature of the alleged default and the manner in which said default may be satisfactorily cured.” (Dev. Agmt. § 14(a)). The City’s “failure” to cure within 30 days “shall constitute a default.” (Dev. Agmt. § 14(a)). “After notice and expiration” of the 30 days to cure, the cannabis operators “may institute legal proceedings.” (Id.)
The development agreements were approved on June 5, 2018, a total of 2,039 days (68 months or 5.6 years) from the date of this Notice. The City agreed its contractual promises “shall survive beyond the terms of the present Council members, that this Agreement will serve to bind the City and future Councils to the obligations hereby undertaken.” (Dev. Agmt. Recital M). The City also agreed “after notice and expiration of the 30 days” to cure its default, the cannabis operators “may institute legal proceedings” and “nothing contained herein shall modify or abridge the operator’s rights or remedies (including its rights for damages, if any) resulting from bad faith intentional acts, the grossly negligent or malicious acts of the City and its officials, officers, agents, and employees.” (Dev. Agmt. § 14(a)).
Under Section 14, the Cannabis Operators Give the City Notice of Default and provide 30 days to cure the default, or they will file a lawsuit for breach of the development agreement. The operators prefer that the City comply with its contractual promises; however, if it does not cure its default, this Notice identifies “all claims for money or damages against local public entities” as Gov. Code § 905 requires.
The Cannabis Operators also Give Notice to Proceed Under Protest and seek an “arrangement” to pay the disputed fees under protest by posting a bond under Gov. Code § 66020. The operators identify the “factual elements of the dispute and the legal theory forming the basis for the protest.” (Cal Gov Code § 66020(a)). The operators protest all nonoperating fees, All fees for delays by the city in redesigning approved plans and construction delays, and All fees during the coronavirus closure.
City Officials, Officers, Employees, and Consultants Are Given Notice of Claims for Individual Liability if the defaults are not cured. As explained below, they are individually liable for damage under the Racketeer Influenced and Corrupt Organizations Act, 18 U.S.C. §§ 1961-68. The development agreements expressly permit the operators to pursue “damages resulting from bad faith intentional acts, the grossly negligent or malicious acts of the City and its officials, officers, agents, and employees.” (Dev. Agmt. § 14(a)).
Attachment IPage 3753 of 4584
2 The detailed notice (attached letter) identifies the City’s default, including:
(1) The City demands fees during the fifteen-month closure due to the coronavirus pandemic (2) The City demands fees caused by its delays in redesigning approved plans. (3) The City demands non-operating fees from operators progressing towards opening. (4) The City’s temporary 90-day occupancy permit is conditioned on paying illegal fees. (5) Review hearings by a hearing officer instead of the City Council, which violates the agreements.
The City must cure the plethoras of defaults identified in the attached letter and undertake the following acts:
(1). The City must remove all non-operating fees if the facility is not open. (2). The City must waive all fees during the 15-month pandemic. (3). The City must waive all fees during any delays caused by the City. (4). The City must waive all fees when the City was in default under the agreements. (5). The City must issue a regular occupancy permit, not a temporary one. (6). The City must withdraw the defective review hearing with the hearing officer. (7). The City must expedite permits and proceed with the expedited opening of the facilities.
The operators will, of course, pay the operating fee; once they are operating, they will pay the community benefit fee and cost recovery fee as agreed. Nothing in this Notice modifies the agreement; the operators interpret the document precisely as they signed it.
This Notice seeks to bring the City’s actions into compliance with its contractual promises. The City must cure the defaults identified above. The City must “ensure this agreement remains in full force and effect.” (Dev. Agmt. § 23(c)).
The City must correct the many violations identified in this Notice. The cannabis operators have worked on trying to open for 68 months. They have endured many violations, and enough is enough, and then some.
Regarding the defective hearings set for January 8, with a hearing officer. Note the following. The City contractually agreed 68 months ago not to charge fees when the City delayed construction or shut the project down. The “Force Majeure” clause promised that unforeseen events, including “local, state or national emergencies” or “any default by the City” which “substantially interferes with the development, construction or operation of the project,” will entitle the operator to “an extension of time.” (Dev. Agmt. § 23(i)). There are no fees during the period of City caused delays or closures caused by the City.
The City also contractually agreed that any “delay” to “perform” its promises “shall constitute a default.” (Dev. Agmt § 14(a)). Therefore, under § 23(i) “any default by City” which “substantially interferes” with the project will entitle the operator to an “extension of time.” (Dev. Agmt. § 23(i)). The City is in default for its demand for fees for City-caused delays and closures caused by the City under § 14(a) and § 23(i).
The City contractually agreed that “the City Council shall review this agreement annually” to “ascertain operator’s good faith compliance with this agreement.” (Dev. Agmt. § 19(a)). The annual review hearings provided that at the hearing, the “operator shall document any request for an extension of the term due to delays beyond the control of operator (see Section 23(i) force majeure).” (Dev. Agmt. § 19(a)). The annual review hearings under § 19(a) incorporated force majeure delays under § 23(i), which gave the operators a forum to present city-caused delays and closures caused by the City and receive a waiver of fees for these delays.
The City also agreed that the operator could not “compel [the yearly review] hearing” and further agreed that “no implication will be made to operator’s detriment if a hearing is not held.” (Dev. Agmt. § 19(a)). The City promised to hold its first review hearing 55 months ago, the second 43 months ago, the third 31 months ago, the fourth 19 months ago, and the fifth seven months as of the date of this Notice. However, the City refused to hold a single hearing for 68 months, preventing a review of its delays in breach of §§14(a), 19(a), and 23(i).
3 With no hearings by the City Council, the developers turned to City staff and blocked the operators from appearing before the City. The recent notice by the City of “review hearings” before an appointed “hearing officer” to determine compliance with “Section 19 of the agreement” is defective. Section 19 required that “the City Council shall review this agreement annually.” (Dev. Agmt. § 19(a)). Most recently, on December 29, 2023, the City stated in a letter that the operator's “failure to confirm your appearance at the January 8, 2024 review hearing, you have waived your right to present evidence at and otherwise participate at the review hearings.” However, the City contractually promised in the development agreement that “at the time and place set for the review hearing, the operator shall be allowed to be heard.” (Dev. Agmt. § 19(d)). The right to be heard is at the time of the hearing, not before. This breached the agreement in multiple ways.
The plethora of defects, the liability for lost damages, and likely individual liability for civil RICO violations are identified.
Please take a serious review of the information in the letter. The case that accompanies the letter displays that lost profits damages are substantial. However, the City has 30 days to cure, and we sincerely hope you take this route.
I am available anytime to discuss the contents of this Notice, or make a full presentation before the City Council, or meet with City officials or City representatives.
Please take a look at the attached detailed letter and the exhibit (Mammoth Lakes case) attached to the letter.
Respectfully submitted,
Sebastian Rucci
Law Office of Sebastian Rucci, P.C.
16400 Pacific Coast Highway, Suite 212
Huntington Beach, CA 92649
Phone: (562) 901-0199
Fax: (562) 249-6910
Email: [email protected]
cc: cannabis operators
LAW OFFICE OF SEBASTIAN RUCCI, P.C.
16400 Pacific Coast Highway, Suite 212
Huntington Beach, CA 92649
Phone: (562) 901-0199
Fax: (562) 249-6910
[email protected]
January 5, 2024
City of Cudahy
5220 Santa Ana Street
Cudahy, California 90201
Mayor, Jose R. Gonzalez ([email protected])
Vice Mayor, Elizabeth Alcantar ([email protected]) Councilmember, Daisy Lomeli ([email protected]) Councilmember, Martin U. Fuentes ([email protected]) Councilmember, Dr. Cynthia Gonzalez ([email protected]) City Manager, Alfonso Noyola ([email protected]) Finance Director, Joshua Calhoun, CPA ([email protected]) Senior Planner, Cecilia Madrigal-Gonzalez ([email protected]) City Clerk, Richard Iglesias ([email protected]) Special Council, Glenn Ward Calsada ([email protected]) City Attorney Paloma Perez-McEvoy ([email protected]) City Attorney Stephanie Arechida ([email protected]) Community Development Director, Juan Arauz ([email protected]) Building Official, Raul Diaz ([email protected]) RE: NOTICE TO CURE BREACH OF DEVELOPMENT AGREEMENTS for 4916 Cecilia Street; Notice of Protest to Illegal Fees and Agreement to Post Bond Pending Outcome of Fee Dispute under Gov. Code § 66020.
Dear Mayor, Vice Mayor, Council Members, City Officials, and City Representatives:
Our office represents the seven cannabis operators with development agreements at 4916 Cecilia Street, see Ordinance No. 676 through 682. Under Section 14, titled “Defaults and Remedies,” the cannabis operators give the City notice of its “default” and “breach” of the development agreements, specifying “the nature of the alleged default and the manner in which said default may be satisfactorily cured.” (Dev. Agmt. § 14(a)). The City’s “failure” to cure within 30-days “shall constitute a default.” (Dev. Agmt. § 14(a)). “After notice and expiration” of the 30 days to cure, the cannabis operators “may institute legal proceedings.” (Id.)
The development agreements were approved on June 5, 2018, a total of 2,039 days (68 months or 5.6 years) from the date of this Notice. The City agreed its contractual promises “shall survive beyond the terms of the present Council members, that this Agreement will serve to bind the City and future Councils to the obligations hereby undertaken.” (Dev. Agmt.
Recital M). The City also agreed “after notice and expiration of the 30 days” to cure its default, the cannabis operators “may institute legal proceedings” and “nothing contained herein shall modify or abridge the operator’s rights or remedies (including its rights for damages, if any) resulting from bad faith intentional acts, the grossly negligent or malicious acts of the City and its officials, officers, agents, and employees.” (Dev. Agmt. § 14(a)).
Under Section 14, the Cannabis Operators Give the City Notice of Default and provide 30 days to cure the default, or they will file a lawsuit for breach of the development agreement. The operators prefer that the City comply with its contractual promises; however, if it does not cure its default, this Notice identifies “all claims for money or damages against local public entities” as required by Gov. Code § 905.
The Cannabis Operators also Give Notice to Proceed Under Protest and seek an “arrangement” to pay the disputed fees, under protest, by posting a bond, under Gov. Code § 66020. The operators identify the “factual elements of the dispute and the legal theory forming the basis for the protest.” (Cal Gov Code § 66020(a)). The operators Protest All Non-Operating Fees, they Protest All Fees for Delays by the City in redesigning approved plans and construction delays, and they Protest All Fees During the Coronvirus Closure.
City Officials, Officers, Employees, and Consultants Are Given Notice of Claims for Individual Liability if the defaults are not cured. As explained below, they are individually liable for damage under the Racketeer Influenced and Corrupt Organizations Act, 18 U.S.C. §§ 1961-68. The development agreements expressly permit the operators to pursue “damages resulting from bad faith intentional acts, the grossly negligent or malicious acts of the City and its officials, officers, agents, and employees.” (Dev. Agmt. § 14(a)).
1. INTRODUCTION OF CITY’S BREACH OF DEVELOPMENT AGREEMENTS The operators paid over $750,000 in fees; however, 68 months after securing approval, six facilities are still not open for refusing to pay illegal fees. The City’s default include:
(1) City demands fees during the fifteen month closure due to the coronavirus pandemic (2) City demands fees caused by its delays in redesigning approved plans. (3) City demands non-operating fees from operators who progressed towards opening. (4) City’s temporary 90 day occupancy permit are conditioned on paying illegal fees. (5) Review hearings by hearing officer instead of City Council violate the agreements.
January 5, 2024 Letter to City of Cudahy from the Seven 4916 Cecilia Street Cannabis Operators . . . . . . PAGE 2
Over five years ago, 2,039 days or 68 months ago, Cudahy approved seven identical development agreements. During the past 68 months, the operators paid $3/4 million in fees and invested over $10 million in renovating an existing warehouse; however, after 68 months, only one of the seven operators is open. The City issued one operator a 90-day temporary occupancy permit, violating its vested rights. The other six are facing revocation hearings for failure to pay disputed and illegal fees in full, a violation of many of their rights..
The City contractually agreed 68 months ago not to charge fees when the City delayed the construction or shut the project down. The “Force Majeure” clause promised that unforeseen events, including “local, state or national emergencies” or “any default by the City” which “substantially interferes with the development, construction or operation of the project,” will entitle the operator to “an extension of time.” (Dev. Agmt. § 23(i)). There are no fees during the period of City caused delays or closures caused by the City.
The City also contractually agreed that any “delay” to “perform” its promises “shall constitute a default.” (Dev. Agmt § 14(a)). Therefore, under § 23(i), “any default by City” which “substantially interferes” with the project will entitle the operator to an “extension of time.” (Dev. Agmt. § 23(i)). The City is in default for its demand for fees for City-caused delays and closures caused by the City under § 14(a) and § 23(i).
The City contractually agreed that “the City Council shall review this agreement annually” to “ascertain operator’s good faith compliance with this agreement.” (Dev. Agmt. § 19(a)). The annual review hearings provided that at the hearing, the “operator shall document any request for an extension of the term due to delays beyond the control of operator (see § 23(i) force majeure).” (Dev. Agmt. § 19(a)). The annual review hearings under § 19(a) incorporated force majeure delays under § 23(i), which gave the operators a forum to present city-caused delays and closures and receive a waiver of fees for these delays.
The City agreed that the operator could not “compel [the review] hearing” and further agreed that “no implication will be made to operator’s detriment if a hearing is not in fact held.” (Dev. Agmt. § 19(a)). The City promised to hold its first review hearing 55 months ago, the second 43 months ago, the third 31 months ago, the fourth 19 months ago, and the fifth 7 months as of the date of this Notice. However, the City refused to hold a single hearing for 68 months, preventing any review of its delays in breach of §§14(a), 19(a), and 23(i).
Without any review hearing by the City Council, the developers turned to City staff and they blocked the operators from appearing before the City. City attorney Paloma McEvoy stated in a letter that the City Council considered your demand to appear before City Council and “has decided not to negotiate the repayment of fees and to continue with” the revocation hearings.
January 5, 2024 Letter to City of Cudahy from the Seven 4916 Cecilia Street Cannabis Operators . . . . . . PAGE 3
The reference to the hearing is to the City’s recent notice of “review hearings” before an appointed “hearing officer” to determine compliance with “Section 19 of the agreement.” However, § 19 required that “the City Council shall review this agreement annually.” (Dev.
Agmt. § 19(a)). On December 29, 2023 the City stated in a letter that the operators “failure to confirm your appearance at the January 8, 2024 review hearing, you have waiver your right to present evidence at and otherwise participate at the review hearings.” However, the City promised that “at the time and place set for the review hearing, operator shall be given an opportunity to be heard.” (Dev. Agmt. § 19(d)). The right to be heard is at the time of the hearing, not before. This breached the agreement in multiple ways. This confirms that the City’s staff will prevent the City Council from ever hearing about the plethora of breaches by staff.
At a minimum, the purported fees during the pandemic caused delays are illegal. The Operators were shut down for 453 days (15 months) from March 19, 2020, when the shelter-in-place orders started, through June 15, 2021, when the shelter-in-place ended. For 15 months, the operators could not perform any legal construction. Nonetheless, the City demanded $511,140 in fees during the 15-month closure ($28,560 monthly for operating fees and $66,668 per year for community benefit fees). The City’s demand for fees during the closures is a patent breach of its contractual promises under section 23(i).
The imposition of fees during the pandemic closure is compounded by the lengthier delays by City consultants who revised approved plans in breach of the incorporated site and floor plans: “The operator’s site plan and floor plan for the facility are attached hereto as Exhibit D and incorporated into the application.” (Dev. Agmt. § 3(a)). The “cannabis permit application” and detailed construction plans were also incorporated. (Dev. Agmt. § 1(d)). These delays breached the agreement that the “Operator shall receive priority processing for any corresponding City permits.” (Dev. Agmt. Recital F). The City agreed the “project shall vest” (Dev. Agmt. Recital N) and the “Operator may operate cannabis-related activities.” (Id. § 4(a)).
The plan approval delays were compounded by consultants imposed construction procedure not found in the agreements in breach of the agreements which incorporated the construction procedure: “During any on-site construction” for the “remodeling of existing buildings, operator shall comply with all applicable conditions of City’s standard conditions for construction, attached and incorporated as Exhibit F.” (Dev. Agmt. § 13). The operators agreed to comply with the “construction requirements contained” in the agreement. (Id. § 1(d)).
It fell on the City Council to review City caused delays to the project. However, since these reviews were being blocked by City staff, the operators wrote to City Manager Noyola and presented documentation of the delays. City Manager Noyola agreed that the “documentation of disruptions and difficulties with business development and/or operations caused by the pandemic impacted your business operations for a portion of the time past due fees have accrued.” Notice that “and/or” refers to delays and/or closures from the pandemic.
January 5, 2024 Letter to City of Cudahy from the Seven 4916 Cecilia Street Cannabis Operators . . . . . . PAGE 4
However, instead of removing fees for City caused delays, City Manager Noyola continued to demand the fees and used various illegal tactics to extort payment of these fees.
In the words of City Manager Noyola, the operators “will remain in default status on its development agreement until all past due fees . . . have been paid.” The default status prevented any construction work for failing to pay illegal fees and violated the agreements.
The City placed the operators in default, which shut down the construction. Since the fees are not due, this is a default of the City’s promise that any “delay” by the City to “perform” its promises “shall constitute a default.” (Dev. Agmt § 14(a)). The 90-day conditional occupancy permit is applying a word that does not exist in the agreements and violates the promise that the agreements “vest certain rights in the operator.” (Dev. Agmt. Recital B), that “the operator’s land use entitlements for the project shall vest” (Dev. Agmt. Recital N), and that “the operator may operate cannabis-related activities.” (Dev. Agmt. § 4(a)).
On Nov. 15, 2023, the City stated in response to a Public Records Request that the cannabis operators have been billed by the City total non-operating fees of $5,404,282. The non-operating fees from the operators total $1,913,520 ($28,560 x 68 months). Because the word non-operating is not found in the agreements, the non-operating fees must be discerned from “the mutual intention of the parties as it existed at the time of contracting.” (Civ.
Code, § 1636.) Firsthand account at the time of contracting is provided by former vice mayor Christian Hernandez who spearheaded the cannabis policy for the City, and by Philip Kfoury, the operators’ principal, who negotiated the development agreements for the operators.
They explain that at the time of the agreement, the City was focused on revenue from gross receipts, not fees from businesses under construction and trying to open. The City was concerned that the operators would squat on their license. This resulted in the sentence requiring operating fees “until the operator is operating.” It is important to note that this requires payment of operating fees while not operating. The word non-operating is not used in the development agreements or the municipal code. That sentence was included to alleviate the City’s concern about operators squatting on their license and does not apply if the operator is progressing to open. Otherwise, operators would have to pay operating fees while trying to open but while strategically delayed by the city, which is precisely what is happening. Support for this interpretation is found in the development agreements, municipal code, and state law.
It should be readily apparent if the $511,140 in fees during the pandemic closures, the fees for redesign delays and construction delays, and the $1.9 million non-operating fees are not owed. The operator’s payment of $3/4 million to date makes them current and shows that the City is leveraging its plethora of breaches to secure illegal fees. This supports civil RICO claims for individual liability and is permitted by the City’s agreement that the operators may pursue “damages from bad faith intentional acts, the grossly negligent or malicious acts of City and its officials, officers, agents, and employees.” (Dev. Agmt. § 14(a))..
January 5, 2024 Letter to City of Cudahy from the Seven 4916 Cecilia Street Cannabis Operators . . . . . . PAGE 5