Agenda — Cudahy City Council, July 16, 2024 (part 10 of 20)

EXHIBIT “E”

ADDITIONAL BUSINESS STANDARDS
(IF APPLICABLE)
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EXHIBIT “F”

STANDARDS AND CONDITIONS FOR CONSTRUCTION
(IF APPLICABLE)
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“Serving The People” "Sirviendo A La Comunidad"
Staff Report
12/4/18 Page 1 of 2

STAFF REPORT
Date: December 4, 2018
To: Honorable Mayor/Chair and City Council/Agency Members From: Jose E. Pulido, City Manager/Executive Director
By: Richard Iglesias, Deputy City Clerk
Subject: Appointment of City representative to the Greater Los Angeles County Vector Control District Board of Trustees

RECOMMENDATION
The City Council is requested to appoint a representative to the Board of Trustees of the Greater Los Angeles County Vector Control District for a two or four year term.

BACKGROUND

1. In June 29, 2015, City Council appointed Council Member Sanchez to the Greater Los Angeles County Vector Control District Board of Trustees.

2. On September 18, 2018, the Greater Los Angeles County Vector Control District sent a letter addressed to the City Manager requesting appointment to the Greater Los Angeles County Vector Control District Board of Trustees.

3. On November 6, 2018, City Council tabled this item to the next regular meeting.

ANALYSIS
The Greater Los Angeles County Vector Control District serves 6 million Los Angeles residents, promoting community health, comfort, and welfare through community outreach and disease surveillance.

The Greater Los Angeles County Vector Control District Board of Trustees is requesting the Item Number
12A
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“Serving The People” "Sirviendo A La Comunidad"
Staff Report
12/4/18 Page 2 of 2

City Council to consider reappointing Council Member / Trustee Sanchez, or a new trustee for a 2 or 4 year term.

Currently Council Member Baru Sanchez serves as the City representative on the Board of Trustees of the Greater Los Angeles County Vector Control District.

CONCLUSION
The City Council is requested to appoint a representative to the Board of Trustees of the Greater Los Angeles County Vector Control District. Doing so will continue to allow the City to be represented in the Board of Trustees.

FINANCIAL IMPACT
No financial impact.

ATTACHMENTS
A. Letter from Greater Los Angeles County Vector Control District B. Electronic Mail from Greater Los Angeles County Vector Control District General Manager 1002 of 1055 ATTACHMENT E Page 1675 of 3559
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ATTACHMENT E

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ATTACHMENT E

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From: Truc Dever <[email protected]>
Sent: Friday, November 30, 2018 1:52:31 PM
To: Chris Garcia; Jose Pulido
Subject: Request for Reappointment of Greater LA County Vector Control District Trustee Baru Sanchez

Dear Mayor Garcia and City Manager Pulido:

I write this correspondence on behalf of the Greater Los Angeles County Vector Control District.

As you may be aware, the District sent a letter advising the City that the term of our cityappointed Trustee, Baru Sanchez, will be expiring as of January 2019. I would like to take this opportunity to relay to you that Mr. Sanchez has served as the City’s representative on the District’s Board of Trustees for the past 3.5 consecutive years. During that time, he has served key roles on our Audit, Budget, and Risk Management Committees. He currently serves as the Board’s Vice President and with reappointment, will transition to fill the role of Board President in January 2019. A city council reappointment for an additional two year term will solidify this anticipated transition and provide the Board and the District’s vector control program with sound and experienced leadership for the coming term.

As General Manager, it is a privilege and honor to have Mr. Sanchez as a Trustee. Due to his exemplary service and dedication to both his community and the District, the Board of Trustees and I hope that you will consider reappointing him for another term as your city representative.

Should you have any questions regarding this appointment, please feel free to contact me at 562.944.9656. Thank you for your consideration.

Most respectfully,

Truc Dever
General Manager
Greater Los Angeles County Vector Control District
12545 Florence Ave.

Santa Fe Springs, CA 90670
office: 562-944-9656 x501
cell: 562-244-2648
fax: 562-944-7976
[email protected]

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ATTACHMENT BB.

Update to Site Plan from OperatorMarch 6, 2023
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ATTACHMENT E

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ATTACHMENT CC.

Correspondence- Proposed draft
payment plan between City and Operator
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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 22, 2023
Via U.S. Mail and Email:

VM Evergreen, LLC
Attn: Vicki Barajas, Manager
8222 Atlantic Avenue
Cudahy, CA 90201
Re: DA 18‐001C ‐ Letter Agreement on Payment of Outstanding Fees & Costs Dear Owner/Operator:

Please allow thisletter to respond to VM Evergreen’srequest for a payment arrangement on past due fees owed to the City of Cudahy ("City"). At this time, City records show that your Development Agreement is in “default status” on account of substantial past due fees and costs owed to the City despite prior notice and opportunity to cure. The total outstanding balance due as of January 31, 2023, was $242,997.01, consisting of Community Benefits Fees “CB” [$106,667.20], Cost Recovery Charges “CR” [$49,718.25], Non‐Operating Fees “NOF” [$75,314.40] and Non‐Operating Fees Penalties (11,297.16).

See attached Payment Plan Worksheet for an itemization of all outstanding fees due.

In our discussions, you have provided the City with information and documentation of disruptions and difficulties with business development and/or operations caused by the COVID19 pandemic. These difficulties appear to have impacted your business operations for a portion of the time past due fees have accrued.

Based on your representations and evidence, and after input from the City’s Ad Hoc Economic Development Committee members, the City is willing to enter into a one‐time, forbearance agreement. Operator should not expect any further extensions of time or modifications to this Letter Agreement. Furthermore, Operator shall remain in “default status” under its Development Agreement until all past due fees are paid in full and is not otherwise in default under the Development Agreement.

For good cause shown, the proposed payment plan for the past due fees described below is APPROVED ON THE FOLLOWING TERMS AND CONDITIONS:
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FORBEARANCE PAYMENTS

1. Operator Must Maintain Current Community Benefit (CB) and Cost Recovery (CR) Payments:

Beginning April 1,,
2023, Operator agrees to maintain Community Benefit (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. The Finance Director will provide the Operator with a billing statement specifying the current payment amounts by email or US Mail. It is the responsibility of the Operator to contact the Finance Director to confirm it is current on all payments with the City. In the event Operator becomes delinquent on its current payment obligations by more than thirty (30) days, the City may, at its sole and complete discretion, notify Operator in writing by email or U.S. Mail of the default on payment(s) and terminate this Letter Agreement. In that event, all past due amounts required to be paid under this Letter Agreement shall become fully due and payable. The failure to fully pay the past due delinquency as required by the notice shall be deemed an uncured event of default and a basis for termination of the Development Agreement. Nothing in this provision abrogates any other remedies available to the City under the Development Agreement for an event of default.

2. Operator Must Cure Past Due Delinquency on Community Benefit (CB) and Cost Recovery (CR) Payments:

Operator agrees to cure the past due delinquency on Community Benefit (CB) and Cost Recovery (CR) payments as follows:

Past Due Community Benefit Fees (CB)

$106,667.20 owed as of January 31, 2023. These past due fees are to be paid in twelve (12) equal monthly installments as follows:

Payment 1, $8,888.93 on 1st of April 2023.

Payment 2, $8,888.93 on 1st of May 2023.

Payment 3, $8,888.93 on 1st of June 2023.

Payment 4, $8,888.93 on 1st of July 2023.

Payment 5, $8,888.93 on 1st of August 2023.

Payment 6, $8,888.93 on 1st of September 2023.

Payment 7, $8,888.93 on 1st of October 2023.

Payment 8, $8,888.93 on 1st of November 2023.

Payment 9, $8,888.93 on 1st of December 2023.

Payment 10, $8,888.93 on 1st of January 2024.

Payment 11, $8,888.93 on 1st of February 2024.

Payment 12, $8,888.97 on 1st of March 2024.
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Past Due Cost Recovery Fees (CR)
$49,718.25 owed as of January 31, 2023. These past due fees are to be paid in twelve (12) equal monthly installments as follows:

Payment 1, $4,143.23 on 1st of April 2023.

Payment 2, $4,143.23 on 1st of May 2023.

Payment 3, $4,143.23 on 1st of June 2023.

Payment 4, $4,143.23 on 1st of July 2023.

Payment 5, $4,143.23 on 1st of August 2023.

Payment 6, $4,143.23 on 1st of September 2023.

Payment 7, $4,143.23 1, 478.03 on 1st of October 2023.

Payment 8, $4,143.23 on 1st of November 2023.

Payment 9, $4,143.23 on 1st of December 2023.

Payment 10, $4,143.23 on 1st of January 2024.

Payment 11, $4,143.23 on 1st of February 2024.

Payment 12, $4,142.72 on 1st of March 2024.

Additional billing that is operator specific costs relating to cost recovery expenditures incurred by the City will be rendered as expenditures are received. Currently,related costs have been billed through January 31, 2023.

3. Deferment of Non‐Operating Fees (NOF) and Penalties
All Non‐Operating Fees (NOF) (past due and accruing) are deferred until six (6) months after Operator is first issued a Temporary Certificate of Occupancy1 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. Operator agrees to pay the accrued NOF fees in accordance with the term for payment provided by the Finance Director without counter‐signature or acknowledgement of receipt. It is the Operator’s responsibility to contact the Finance Director six (6) months after first issuance of the Temporary Certificate of Occupancy to confirm the amounts due and the start date of the twelve (12) month payment term.

Upon the start date of the twelve (12) month payment term for accrued NOF fees, Operator further agrees to commence timely payment of current Operating or Non‐ Operating Fees together with penalties required to be paid under the Development Agreement.

4. Other Terms and Conditions
Operator hereby acknowledges and agreesthat the past due amountsstated are true and correct and are in fact presently due and owing. The parties agree that the Operator is in 1 While in “default status,” the City will only issue a temporary certificate of occupancy (a “TCO”) for the Site valid for 90 days. A TCO may be reissued if the Operator remains in compliance with the terms of this Letter Agreement.
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“default status” on its obligations under its Development Agreement with the City.

Therefore, to avoid immediate termination and/or commencement of revocation proceedings, it is necessary that the Operator indicate, by signing this Letter Agreement, its acceptance of the terms and conditions herein.

Operator will remain in “default status” on its Development Agreement until all past due fees set forth in this Letter Agreement have been paid and Operator is in full compliance with all terms of its Development Agreement. While in “default status,” the City cannot and will not report to the California Department of Cannabis Control (“Department”) that the Operator/Licensee is “In Compliance” with local ordinances and regulations for the requested commercial cannabis activity. Instead, the City will report to the Department that the Operator/Licensee is: “Local Compliance Underway” with the City as per the terms of this Letter Agreement.

Operator acknowledges that it has requested that the City enter into this Letter Agreement and to forbear from exercising its rights under the Development Agreement so as to afford operator additional time to pay its outstanding indebtedness. The City has agreed to do so, provided that Operator fully complies with the terms for repayment set forth in this Letter Agreement.

Operator shall be deemed in material breach of this Letter Agreement in the event Operator is more than thirty days (30) late on any of the FORBEARANCE PAYMENTS identified above or on any payments required to keep current on fees and costs under the Development Agreement. In the event of a material breach of this Letter Agreement, the City’s obligation to forbear shall automatically terminate and this Letter Agreement shall be null and void, and the City shall be entitled to full payments all sums due and owing to the City at the time of the breach. The City shall then promptly report to the Department that the Operator/Licensee is: “Not in Compliance” with local ordinances and regulations.

The City reserves all of its rights and remedies under the Development Agreement and this Letter Agreement shall not be deemed an election of remedies, nor shall it constitute a waiver of any of the City’s rights or remedies.

Nothing stated herein is intended to waive or excuse compliance with any condition of approval contained in the Commercial Cannabis Permit (“CCP”) issued for the Site.

Moreover, the City will approve or deny Development Plans and related approvals for the Site, including issuance of building permits and certificates of occupancy, in the ordinary course of review by the City’s planning and building and safety officials. Operator may not commence operations within the facility unless and until a valid temporary or permanent certificate of occupancy is issued for the Site. In its decision for issuance of any certificate of occupancy for the Site, the City may take into account the Operator’s compliance or non‐compliance with the terms of this Letter Agreement and the Operator’s history of compliance or non‐compliance with all state and local cannabis and health and safety laws. Prior to the commencement of operations, Operator must provide to the City Manager a valid and current state‐issue license for commercial cannabis activities covering the specific cannabis activities authorized by the City for the Site. While in “defaultstatus,” the City will only issue a temporary certificate of occupancy 1013 of 1055 ATTACHMENT E Page 1686 of 3559
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(a “TCO”) for the Site valid for 90 days. A TCO may be reissued if the Operator remains in compliance with the terms of this Letter Agreement.

Upon the breach of any provision of this Letter Agreement, the City may, at itssole option and discretion, give the Operator ten (10) days written notice of intention to terminate this Letter Agreement and opportunity to cure. The giving of one notice shall not obligate the City to give further notices of default. In the event of an uncured default after notice is given, this Letter Agreement shall automatically terminate without further notice, at which time the City may exercise any and all rights and remedies under its Development Agreement, including but not limited to, termination of the Development Agreement and revocation of the CCP.

The parties agree that in no event shall the effect of this Letter Agreement be deemed a novation of the Development Agreement and that the City Manager has acted, and is acting, in accordance with authority already granted by the terms of the Development Agreement.

Each party has acted on the advice of counsel.

Except as modified herein, all of the terms and conditions of the Development Agreement shall remain in full force and effect. Operator agrees to maintain payments and to keep current on all fees and costs accruing under the Development Agreement. The failure to pay both past due fees and current fees and costs as they come due shall be a default on this Letter Agreement. Time is of the essence. This provision is a material term of this Letter Agreement. No oral amendment, waiver or other understanding with respect to the subject matter of this Letter Agreement shall be enforceable.

5. Effectiveness:

This Letter Agreement shall become effective upon receipt by the City of Owner/Operator’s signed and notarized acceptance of the terms and conditions of this Letter Agreement.

This Letter Agreement shall be considered rejected and will expire by its own terms if not accepted in writing by March 27, 2023.

Sincerely,

Alfonso Noyola, ICMA‐CM
City Manager
AGREED AND ACCEPTED:

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Date:

Owner/Operator

IN WITNESS THEREOF (SEE ATTACHED NOTARY ACKNOWLEDGMENT)

____________________________________
By: _______________________, its Authorized Agent
and Managing Member
Cc: Landlord [Name and Address];
City’s Special Counsel
Enc: Payment Plan Worksheet
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CBP URBF1 OPFEE OPFEE
Operator Comm Benefit Cost Recovery Non Operating PENALTIES Outstanding VM Evergreen, LLC
September 22, 2021 Letter ‐ 16,000.08 11,297.16 27,297.24

BILLINGS
Aug 2021 5,333.36 547.68 3,765.72 9,646.76 Sep 2021 5,333.36 1,493.03 3,765.72 10,592.11 Oct 2021 5,333.36 854.75 3,765.72 9,953.83 Nov 2021 5,333.36 1,398.23 3,765.72 10,497.31 Dec 2021 5,333.36 291.90 3,765.72 9,390.98 Jan 2022 5,333.36 494.28 3,765.72 9,593.36 Feb 2022 5,333.36 1,137.30 3,765.72 10,236.38 Mar 2022 5,333.36 1,036.50 3,765.72 10,135.58 Apr 2022 5,333.36 1,103.88 3,765.72 10,202.96 May 2022 5,333.36 2,115.39 3,765.72 11,214.47 Jun 2022 5,333.36 127.60 3,765.72 9,226.68 Jul 2022 5,333.36 924.63 3,765.72 10,023.71 Aug 2022 5,333.36 932.38 3,765.72 941.43 10,972.89 Sep 2022 5,333.36 2,550.29 3,765.72 1,318.00 12,967.37 Oct 2022 5,333.36 1,914.65 3,765.72 1,694.57 12,708.30 Nov 2022 5,333.36 2,591.48 3,765.72 2,071.15 13,761.71 Dec 2022 5,333.36 6,546.03 3,765.72 2,447.72 18,092.83 Jan 2023 5,333.36 2,052.25 3,765.72 2,824.29 13,975.62

PAYMENTS
Aug 2021             (5,333.36)                 (3,765.72)        (9,099.08) 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
Dec 2022
Jan 2023
Feb 2023 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
Balance as of January 31, 2023          106,667.20           49,718.25                 75,314.40        11,297.16      242,997.01 (a) City Reimbursement cost of $7,202 per year (x three years (2019‐2022)= $21,606.00 1016 of 1055 ATTACHMENT E Page 1689 of 3559
ATTACHMENT DD.

California Department of Cannabis
Control Website as of December 23,
2023
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ATTACHMENT EE.

Executive Order N-33-20
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Essential workforce
Last updated February 14, 2022 at 4:42 AM
On March 19, 2020, Governor Newsom issued Executive Order N-33-20 directing all residents immediately to heed current State public health directives to stay home, except as needed to maintain continuity of operations of essential critical infrastructure sectors and additional sectors as the State Public Health Officer may designate as critical to protect health and well-being of all Californians.

In accordance with this order, the State Public Health Officer has designated the following list of Essential Critical Infrastructure Workers to help state, local, tribal, and industry partners as they work to protect communities, while ensuring continuity of functions critical to public health and safety, as well as economic and national security.

Sector index
Sector profile
The Health Care and Public Health (HPH) Sector is large, diverse, and open, spanning both the public and private sectors. It includes publicly accessible healthcare facilities, research centers, suppliers, manufacturers, and other physical assets and vast, complex public1. Health Care / Public Health COVID19.CA.GOV
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private information technology systems required for care delivery and to support the rapid, secure transmission and storage of large amounts of HPH data.

Essential workforce, if remote working is not
practical:

1. Health care providers and caregivers (including physicians, dentists, psychologists, mid-level practitioners, nurses, assistants, and aids; infection control and quality assurance personnel; pharmacists; physical, respiratory, speech and occupational therapists and assistants; social workers and providers serving individuals with disabilities including developmental disabilities; optometrists; speech pathologists; chiropractors; diagnostic and therapeutic technicians; and radiology technologists).

2. Workers required for effective clinical, command, infrastructure, support service, administrative, security and intelligence operations across the direct patient care and full healthcare and public health spectrum, including accounting, administrative, admitting and discharge, engineering, accrediting, certification, licensing, credentialing, epidemiological, source plasma and blood donation, food service, environmental services,
housekeeping, medical records, information technology and operational technology, nutritionists, sanitarians; emergency medical services workers; prehospital workers including but not limited to urgent care workers; inpatient and hospital workers; outpatient care workers; home care workers; workers at longterm care facilities, residential and community-based providers; workplace safety workers).

3. Workers needed to support transportation to and from healthcare facilities and provider appointments.
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4. Workers needed to provide laundry services, food services, reprocessing of medical equipment, and waste management.

5. Vendors and suppliers (including imaging, pharmacy, oxygen services, durable medical equipment)

6. Workers who perform critical clinical research, development, and testing needed for COVID-19 response.

7. Workers in other medical and life science facilities (including Ambulatory Health and Surgical, Blood Banks, Clinics,
Community Mental Health, Comprehensive Outpatient
rehabilitation, End Stage Renal Disease, Health Departments, Home Health care, Hospices, Hospitals, Long Term Care, Organ Pharmacies, Procurement Organizations, Psychiatric,
Residential, Rural Health Clinics and Federally Qualified Health Centers, and retail facilities specializing in medical goods and supplies, including cannabis).

8. Workers for health manufacturing (including life science companies, and companies that have shifted production to medical supplies), materials and parts suppliers, technicians, logistics and warehouse operators, printers, packagers, and distributors of medical equipment (including those who test and repair), personal protective equipment (PPE), isolation barriers, medical gases, pharmaceuticals (including materials used in radioactive drugs, and cannabis products), dietary supplements, blood and blood products, vaccines, testing materials,
laboratory supplies, cleaning, sanitizing, disinfecting or sterilization supplies, personal hygiene products, and tissue and paper towel products.

9. Public health / community health workers, including those who compile, model, analyze and communicate public health
information.
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10. Behavioral and mental health workers responsible for coordination, outreach, engagement, and treatment to
individuals in need of mental health and/or behavioral services.

11. Donors of blood bone marrow, blood stem cell, or plasma and the workers of the organizations that operate and manage related activities.

12. Workers that manage health plans, billing, and health information.

13. Workers who conduct community-based public health
functions, conducting epidemiologic surveillance, compiling, analyzing and communicating public health information.

14. Workers performing IT and cybersecurity functions at healthcare and public health facilities.

15. Workers performing security, incident management, and emergency operations functions at or on behalf of healthcare entities including healthcare coalitions.

16. Pharmacy employees, including workers necessary to maintain uninterrupted prescription filling.

17. Workers in retail facilities specializing in medical goods and supplies.

18. Public health and environmental health workers, including workers specializing in environmental health that focus on implementing environmental controls, sanitary and infection control interventions, healthcare facility safety and emergency preparedness planning, engineered work practices, and
developing guidance and protocols for appropriate PPE to prevent COVID-19 disease transmission; Public health/
community health workers (including call center workers) who conduct community- based public health functions, conducting epidemiologic surveillance and compiling, analyzing, and communicating public health information.
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19. Mortuary services providers, including workers performing mortuary, funeral, cremation burial, cemetery, and related services, including funeral homes, crematoriums, cemetery workers and coffin makers.

20. Workers who coordinate with other organizations to ensure the proper recovery, handling, identification, transportation, tracking, storage, and disposal of human remains and personal effects; certify cause of death; and facilitate access to behavioral and mental health services to the family members, responders, and survivors of an incident.

21. Workers supporting veterinary hospitals and clinics.

22. Workers supporting operations of outdoor recreational facilities for the purpose of facilitating physically distanced personal health and wellness through outdoor exercise.

Relevant sector guidance:

All Facility Letters for health care facilities, including long-term care and skilled nursing facilities
Individuals with Access and Functional Needs
Medical Waste Management – Interim Guidelines




2. Emergency Services

3. Food and Agriculture

4. Energy

5. Water and Wastewater

6. Transportation and Logistics
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Essential workforce, if remote working is not
practical:

1. Construction workers who support the construction, operation, inspection, and maintenance of construction sites and
construction projects (including housing, commercial, and mixed-use construction); and workers who support the supply chain of building materials from production through
application/installation, including cabinetry, fixtures, doors, cement, hardware, plumbing, electrical, heating/cooling, refrigeration, appliances, paint/coatings, and employees who provide services that enable repair materials and equipment for essential functions.

7. Communications and Information Technology

8. Government Operations and other communitybased essential functions

9. Critical Manufacturing

10. Financial Services

11. Chemical and Hazardous Materials

12. Defense Industrial Base

13. Industrial, Commercial, Residential, and
Sheltering Facilities and Services
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2. Workers such as plumbers, electricians, exterminators, and other service providers who provide services that are necessary to maintaining the safety, sanitation, construction material sources, and essential operation of construction sites and construction projects (including those that support such projects to ensure the availability of needed facilities, transportation, energy and communications; and support to ensure the effective removal, storage, recycling and disposal of solid waste and hazardous waste)

3. Workers such as plumbers, electricians, exterminators, and other service providers who provide services that are necessary to maintaining the safety, sanitation, and essential operation of residences, businesses, and buildings such as hospitals and senior living facilities, including any facility supporting COVID-19 response.

4. Workers who support the supply chain of building materials from production through application and installation, including cabinetry, fixtures, doors, cement, hardware, plumbing
(including parts and services), electrical, heating and cooling, refrigeration, appliances, paint and coatings, and workers who provide services that enable repair materials and equipment for essential functions.

5. Workers in hardware and building materials stores, consumer electronics, technology and appliances retail, and related merchant retailers, wholesalers and distributors that support essential workforce functions where sales and operations cannot be conducted online

6. Warehouse operators, including vendors and support personnel critical for business continuity (including heating, ventilation, and air conditioning (HVAC) and electrical engineers, security 1027 of 1055 ATTACHMENT E Page 1700 of 3559
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personnel, and janitorial staff), e-commerce or online
commerce, and customer service for essential functions.

7. Workers supporting the operations of commercial buildings that are critical to safety, security, and the continuance of essential activities, such as on-site property managers, building engineers, security staff, fire safety directors, janitorial personnel, and service technicians (e.g., mechanical, HVAC, plumbers, electricians, and elevator).

8. Workers supporting ecommerce through distribution,
warehouse, call center facilities, and other essential operational support functions, that accept, store, and process goods, and that facilitate their transportation and delivery

9. Workers distributing, servicing, repairing, installing residential and commercial HVAC systems, boilers, furnaces and other heating, cooling, refrigeration, and ventilation equipment.

10. Workers managing or servicing hotels or other commercial and residential buildings that are used for COVID-19 mitigation and containment measures, treatment measures, provide
accommodation for essential workers, or providing housing solutions, including measures to protect homeless populations.

11. Workers responsible for the leasing of residential and commercial properties to provide individuals and families with ready access to available housing.

12. Residential and commercial real estate workers, limited to scheduled property viewings to a potential buying party. This does not extend to open-house viewings, nor viewings with more than one buying party at a time.

13. Professional services, such as legal or accounting services, when necessary to assist in compliance with legally mandated activities and critical sector services
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14. Workers responsible for handling property management, maintenance, and related service calls who can coordinate the response to emergency “at-home” situations requiring
immediate attention, as well as facilitate the reception of deliveries, mail, and other necessary services.

15. Workers supporting the entertainment industries, studios, and other related establishments such as establishments that provide content for professional broadcast, provided they follow COVID-19 public health guidance around physical distancing.

16. Workers that provide or determine eligibility for food, shelter, inhome supportive services, child welfare, adult protective services and social services, and other necessities of life for economically disadvantaged or otherwise needy individuals (including family members)

17. Workers performing services in support of the elderly and disabled populations who coordinate a variety of services, including health care appointments and activities of daily living.

18. Workers who provide support to vulnerable populations to ensure their health and well-being including family care providers.

19. Workers providing dependent care services, particularly those whose services ensure essential workers can continue to work.

20. Workers who support food, shelter, and social services, and other necessities of life for economically disadvantaged or otherwise needy individuals, such as those residing in shelters.

21. Workers in laundromats, laundry services, and dry cleaners.

22. Workers providing disinfection services, for all essential facilities in essential sectors

23. Workers necessary for the installation, maintenance, distribution, and manufacturing of water and space heating equipment and its components.
1029 of 1055 ATTACHMENT E Page 1702 of 3559
12/20/23, 4:33 PM Essential workforce - Coronavirus COVID-19 Response https://covid19.ca.gov/essential-workforce/ 10/11
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24. Support required for continuity of services, including commercial disinfectant services, janitorial/cleaning personnel, Relevant guidance for all
sectors
Face Coverings Guidance
Orientación Sobre el Uso de Mascarillas de Tela
Self-Isolation for Older Adults and Those Who Have Elevated Risk Aislamiento para Adultos Mayores y Personas que Tienen un Riesgo Elevado
Employers, health care workers and workers in general industry 
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Hotlines and local info
Safe Schools For All
1030 of 1055 ATTACHMENT E Page 1703 of 3559
12/20/23, 4:33 PM Essential workforce - Coronavirus COVID-19 Response https://covid19.ca.gov/essential-workforce/ 11/11
Vaccinate All 58
Safer At Work
My Turn
The CDPH Call Center
1-833-422-4255
M-F 8AM-5PM
CA.gov Department of Public Health Governor’s Newsroom Accessibility Privacy Policy Feedback Register to vote
Official California State Government Website
Accessibility certification PDF
1031 of 1055 ATTACHMENT E Page 1704 of 3559
ATTACHMENT FF.

Los Angeles Sheriff’s Department
Incident Reports
1032 of 1055 ATTACHMENT E Page 1705 of 3559

A TRADITION OF SERVICE
COUNTY OF LOS ANGELES SHERIFF’S DEPARTMENT
INCIDENT REPORT DAlE 2 ii 2 PAGE OP 3

BY DEPUTY EMPLOYEE B SWORN EXP IN YRS DEPUTY EMPLOYEE B SWORN DIP IN YRS VACATION DATES A7tL.(A.J f J

STATION UNIT / CAJI A SHIFT APPROVED EMPLOYEE C FATE I TIME rA / (.7q
PCD SUBMITTED? VACA DATES IONMENT
________________________________
DYES 34)
HQNOflFICAI1ON REQUESTED? DEPUTY DATE/TiME SPECIAL. REQUEST DISTRiBUTION - - — CI YES C/) ______ SUSPECT/SUBJECT FIELD RELEASE APPROVED BY: - - DATE/TIME CRIME BROADCAST BY: - - GE AN AR 76C300F. SH-R-49 (Rev. 412014)
ACTION: o ACTiVE NON- #OFADI.LT #OFSUB.IECT URN ) 7 TAG# DINACT1VE W°PENDING
CR1 ARR3S DETENTIONS Ii.) J-1 OCss C.fl7
TENTION YEAR SEQUENTIAL REPORTING DISTRICT STAT CODE — CLASSIFiCATION 1! LEVEL I STAT CODE UIWSU$I LIY1 IF/ c,9 ____ CLASSIFiCATION SI LEVEL! STAT CODE CLASSIFICATION 3! LEVEL! STAT CODE
CLASSIFICATION 41 LEVEL ISTAT COGSADDITiONAL STAT CODES CI ASAP/ 83 - - CI GANG RELATED 1860 CI CYBER - RELATED CRIME I 552 C FIREARM RELATED 1830 CI CYBER CRIME! 551 CI CYBER - RELATED INCIDENT (NON. CRIMINAL) / 666 0 OThER - - - -- - DATE ITIMEI DAY Of OCCURRENCE C) PRINTS REQUESTED REQUESTED BY: TIME D - --
I TION OF OCCURRENCE BUSINESS NAME Wta Avr4e c!uOAi4y
CODE: V. VICTIM • W - WITNESS • I. INFORMANT • R - REPORTING PARTY • P. PARTY CODE C of LAST E FIRST NAME MIDDLE NAME SEC RACE I OO AGE DRIVERS LICENSE I STATE ID v i
RESIDENCE ADDRESS CITY STATE ZIP RESIDENCE PHONE (Aree Code) 2111) N/4 42-I
BUSINESS! SCHOOL (GRADE) ADDRESS CITY STATE ZIP BUSINESS PHONE (Aloe Code) L:•L1 frqt Ifr U ____ ENR - EMAJLADORBSS 1oc)AwoRINGACCOIJNT E(AreeCodo) ‘ciz-313-3Øay V1CTI OF OFFENSE(S) (CLASSIFICATION) P V12flM DESIROUS OF PROSECUTiON? TVICTIM Of SEX CRIME DESIROUS OF co 0 mACIT?-? ENGLISH SPEAKING? ti YES 0 e # a # F/YES 1)140 DYES ONO LANGUAGE ______ COO C of LASTNMIE F1RSTNAME MIDDLENAME SEX RACE DOS AGE DRIVERSLICENSE!STEb - - __________ ———— ___L_ — ________ RESIDENCE ADDRESS CITY STATE ZIP RESIDENCE PHONE Lrqi Code) BUSINESS! SCHOOL (GRADE)S CITY STATE ZIP BUSINESS PHONE (Aloe Code) ETHNIC ORIGIN EMALACCNEB SOCIAL NEEWOIBENG ACCOUNT CELL PHONE (Area Coda) ViCTIM Of OFFENSE(S) )CLASSIPICAT1ON)* VICTiM DESIROUS OF PROSECUTiON? VICTIM OF SEX CR845 DESIROUS OF 1IALTTY? ENGLISH SPEAKING? CI YES C NON B C B B CI YES C NO CI YES 0 NO LANGUAGE - - CODE: S-SUSPECT • SJ-SUBJECT • M-PAI1ENT • SN-SUSPECTIV)C11M • SJIV-SUBJECTIV1C11M CODE I of LAST NAME FIRST NAME MIDDLE NAME DOS AGS DRIVERS LICENSE! STAlE ID j ? v’-”- I I
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RACE ETHNIC ORIGIN HAiR EYES HEIGHT WEIGHT TLPHONE (Area Code) I I -- --___--.--
RSSIDENCEADDRESS CITY STATE ZIP RESIDENCE PHONE (Area Code) BUSINESSISCHOOL(GRADE)AOCRE$S — — — CITY STATE - - ZIP BUSINESS PHONE(AreoCode( BdALADORMS ______ - - - -- - SOCIALNETWORIUNGACCOUNT - - - jINGUSHSPEAKING?Q YES c ______________________ LANGUAGE - — - MONIKER CHARGE - - BOOKING NUMBER - - -- — 1WHBRS DETAINED OR CITE NUMBER CO. C of LAST NAME FIRST NAME MIDDLE NAME DOS AGE DRIVERS LICENSE I STATE ID SEX RACE ETHNIC ORIGIN HAIR EYES HEIGHT WEIGHT CELL PHONE (Area Code) RESIDENCE ADDRESS CITY STATE ZIP RESIDENCE PHONE (Area Coda) BUSINESS I SCHOOL (GPADE) ADDRESS CTTY STATE ZIP BUSINESS PHONE (Area Code) AKA EMAILADDRESS SOCIAL NETWORKING ACCOlAdE ENGLISH SPEAKING? CI YES C NO LANGUAGE - MONIKER CHARGE BOOKING NUMBER WHERE DETAINED OR CITE NIJI45ER 1033 of 1055

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COUNTY OF LOS ANGELES SHERIFFS DEPARTMENT uei 473 - 02C.3’ 017

A TRADITION OFSERWCE
INCIDENT REPORT TAGI -— DATEL.fl.Z3 ZoJ
VEHICLE LiCENSE (SlATE & NAmER) I
VEHICLEFORV1C11MD - - REGISTERED OWNER IDENTIFYiNG FEATURESVEHICLE FOR SUSPE STATUS S1GIEN 0 DAMAGED CI EMBEZZLED CHP lEO SUeMITtED7 GARAGE NAME S PHONE Cl STORED 0 INPOUNOED Cl OUTSTANDING 0 YES 0 NO
DE ION Of DAMAGE - - - VEHICLE LICENSE (STATE A NUMBER) YEAR MAKE MODEL BODY TYPE COLOR

VEHICLEFORVICTIME
REGISTERED OWNER IDENI1FYING FEATURES - VEHICLEFORSU CTL_ — DEONOFDAMAGE 0D 0 EMBEZZLED CNPURS*JBUflTEO? GARAGENAME&PHGRE -- -—- 0 5. UNIQUE VEHICLE IDENTIFIERS 0 6. WRITERIREVIEWER DISCRETION
PROPERTY CODE: RELEASED TO
S — STOLEN • R — RECOVERED • I -LOST • F -FOUND • E — EMBEZZLED • D — DAMAGED • K — SAFEKEEPING (Use all applicable Codes; for example, If property is both Stolen and Recovered, Code is S/R) DE8CRIP11ON (Includ, kind of article, trade name, Identifying numberi, - SERIALS VALUE CODE S QU - pilyalcal description, materiel, color, condItIon, age and pr.a.nt market value) -- ca, —
-—
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9 2 i C?I — - ---- --.--- -- -—--- -—
-----------—-----------------:-
0 1. SUSPECT IN CUSTODY 0 3. UNIQUE SUSPECT IDENTIFIERS 0 2. SUSPECT NAMED I KNOWN 4. VEHICLE IN CUSTODY
CfD,JIEi2 FACTORS
78C300F - SH.R-49 (Rev. 4(2014)
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923-02350-0263-077 3 of 3
I responded to 8226 Atlantic Avenue in the city of Cudahy regarding a burglary report call, T-199.I contacted a male Hispanic (later identified as V/Hurtado) who told me the following:

Vfllurtado stated he is the project manager at the site. He stated the site is currently being used to store construction materials in two buildings inside the property. VfHurtado stated person (s) unknown forcefully entered one ofthe buildings. He stated sixty “Lucas” lights and five bundles of copper metal were stolen from inside the building. VfHurtado stated the doors to the second building were force broken too. However, nothingwas stolen from the building.

I observed three doors with the door frame damaged and the door locks damaged. I took photographs.

V/Hurtado described the lights as 2x2 white in color.VfHurtado stated the worth ofthe “Lucas” lights are seven hundred dollars each.

VfHurtado stated the worth ofthe copper bundle is 1200 dollars each.VfHurtado stated the video surveillance camera does not work at the property.

VfHurtado stated the cost to replace two doors is 2000 dollars and 1,200 for the third one.

V/Hurtado was issued a Victim Bill ofrights pamphlet.
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BY DEP.
susPEcr# NAME

SUBJECT
URN323’S 61’
LOS ANGELES COUNTY SHERIFF’S DEPARTMENT

CRIME ANALYSIS SUPPLEMENTAL FORM
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1038 of 1055

ATTACHMENT E

Page 1711 of 3559 ends

URNB 2) -Ol’I/I-Oi6 C)
TAGU I
DATE lI,O/7 R> PAGE LOF ES
DESCRIPTION (Include kind of article, trade name, Identifying numbers, physical description, material, color, condition, age and present mrbet value) (IfC-(”) P2’&(o’(’(,1:I1’
t.JJiJ7
- 1-L}’$ L//1)?
Lull 1
2) /iZ&o’. tJ’7
I l:’QO
(JAJ1 “‘O(. V # i/ 0
‘5 “I I i3flc’7 ( I3ocH Onz IL y /(ot.j (_ /1 ‘tL €. q Aj I ,L Q --1
‘1
- — -‘-‘ — H

A TRADITION OF SERVICE

COUNTY OF LOS ANGELES SHERIFFS DEPARTMENT

INCIDENT REPORT
VEHICLE LICENSE ISTATE S NUlIBER) YEAR MANE MODEL BODY TYPE COLOR VETUCLE FOR VICTIM C . - REGISTERED OWNER IDENTIFYING FEATURES VEHICLE F-OR ‘
-,
STATUS 0 STOLEN IJ DAMAGED 0 EMBEZZLED CaP 165 SUBMITTED’ GARAGE NAME & PHONE ‘ T SYORFO 0 I1.IFOLJNOED 0 OUTSTANDING C YES 0 NO

F DAMAGE
/
VEHICLE LICENSE (STATE & NUMBER) YEAR MAKE MODEL 800Y TYPE COLOR

VEF-ECLE FOR VICTIM C

REOSTERED OWNER IDENTIFYING FEATURES

VEHICLE FOR
STATUS 0 STOI EN DAEIYGEO 0 EFFREZZLLD CHP TAO SUBMITTED’ GARAGE NAME S PHONE 0 STORED kIPOUNDEO 0 OUTSTANOING U YES TI NO
U’St;’CPTCYI OF DATIAGE - [1 1. SUSPECT IN CUSTODY
[1 2. SUSPECT NAMED I KNOWN

SCREENING FACTORS

3. UNIQUE SUSPECT IDENTIFIERS
1 4. VEHICLE IN CUSTODY

CODE ITEM B QUAN
0 [1
PROPERTY CODE; RELEASED TO
S -STOLEN • R -RECOVERED • L -LOST • F — FOUND • E -EMBEZZLED • D -DAMAGED • K — SAFEKEEPING (Use all applicable Codes for example, if property is both Stolen and Recovered, Code is S/R)

5. UNIQUE VEHICLE IDENTIFIERS

6. WRITER/REVIEWER DISCRETION
()Citt f(J?Y/1 i(R

SERIAL B
(J41

I VALUE
76C300F - SH-R-49 IRe’a. 412014)
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ATTACHMENT E

Page 1712 of 3559 ends

923-01411-0263-077

Page 3 of 3 ends

I responded to 8226 Atlantic Avenue in Cudahy D.B.A. “VM Evergreen” regarding a burglary report call(tag-191). The call stated to contact the informant regarding broken locks in the warehouse and multipleitems taken.

When I arrived, I contacted the informant (later identified as 1/Barajas), who stated he was the locationsowner. 1/Barajas told me the business was awaiting permits from the city to operate as a cannabis grower. l/Barajas told me he secured the company for the day on 01-25-23 at approximately 1600 and returned on 01-30-23 at approximately 0800 hours.
1/Barajas told me that as he attempted to open the security doors on the southwest corner of thelocation on Atlantic Av, he noticed the locks were broken. 1/Barajas inspected the locks and saw significant damage. 1/Barajas entered the business and noticed the following items were stolen from the east warehouse.
(seven) “Rheem’ Air Conditioning unit (5 ton)
(three) “Quest” Humidifiers (white)(three) “Lux Lamp” (white) 1/Barajas also noticed (one) ‘Brute Bosh Drill’ stolen from the west warehouse of the location. 1/Barajas believed several additional items were stolen from the location; however, he could not recall the make, model, or identifying features. Therefore, I provided l/Barajas with a supplemental lost/stolen property receipt to document additional items.

I inspected the location and noticed pry marks on the main security door on Atlantic Avenue. I alsonoticed the front door of the east and west warehouses was missing the doorknobs. Based on the damaged main security door, I formed the opinion that it was the point of entry/exit.

Due to 1/Barajas tampering with the locations doors and security gate, I did not request a print deputy.

I checked the location for any video surveillance footage or witnesses that might have captured theincident, but I did not see any.

I issued l/Barajas a victim bill of rights/report memo. 1040 of 1055

ATTACHMENT E

Page 1713 of 3559 ends

LOS ANGELES COUNTY SHERIFF’S DEPARTMENT

CRIME ANALYSIS SUPPLEMENTAL FORM
— SUSPECT / SUBJECT INFORMATION
BYDEP foE Ai75,
3 SUSPECT NAME UA’/ )t)

SUBJECT
- URN oitIIIO2 Y3—t)77

CLOTHING DESCRIPTION

ITEM TYPE DESCRIPTION
PAGE’OFZ
UAJk&cf. A)
NAME

ITEM TYPE
FMPLOYEE # ( 1&f’/S
SUSPECT#

SUBJECT
rIEM TYPES

COAT/JACKET
DRESS! SKIRT IGLASSES
_________________________________________________
GLOVES
JEWELRY _____________________ PANTS

SI-IIRT(BLOUS( - SHOES

SHORTSOTHER
__i

BODY I R UNK PART

DESCRIPTION
—
—
I R UNK SCARS! MARKS / TATTOOS / ODDITIES
DO
DO
1 DO
Do
oi::i

Q SUSPECTED GANG MEMBER NAME

OF GANG
SCARS! MARKS / TATTOOS / ODDITIES
b
DODO
DO
— z_
E4

SUSPECIEDGANG MEMBER NAME

OF GANG

PERSONS WATCHED/BABYBOYFRIEND /GIRLFRIENDCHILD OF BOYFRIEND OR GIRLFRIEND IIR4ENGTH FACIAL HAIR WEAPON KNIFE OTHER WEAPON
0 U COLLAR El El BEARD FIREARM Style: El 0 BODILY FORCE U LI LONG El El CLEAN SHAVEN Style: El C) MULTIPLE El 0 STRANGULATION 0 Li SHORTEl LI SHOULI)ER U Q FUZZ El C] MULTIPLE LI U] BUCK ii
0 0 GOATEE 0 [1 88 / PELLET 0 Li BUTCHER/ KITCHEN 0 SUFFOCATION HAIR TYPE 0 0 LOWER LIP El El HANDGUN
0 Li DIRK/OAGGER/STILETTO Li El SLINGSHOT
C] El BALD
U El MUSTACHE El

U RIFLE
j -IUNTING/BOWIE 0 0 TASER/STUrGUN
U El RECEDING
0 El SIDE BURNS El El SHOTGUN Li El SIMULATED
U ( / /.

LI El THICK Li
0 UNSHAVEN El El SIMULATED El El SWITCHBLADE RELATIONSHIP OF VICTIM TO SUSPECT:

El El TI-IINNING El El El ZIP GUN
,
ElV1IVJ/1
Li
U WIG TEETH El Blade: Vi. ACQUAINTANCE
L El 1_V
0 El BROKEN/CHIPPED Action: El El FIXED BABYSIFFER

HAIR ST
U
0 BRACES El El FULLY AUTO VI!__Vtl
0 Li FOLDING
Li LI AFRO / NATURAL
0 El BUCK El [I PUMP
C]
0 BRAIDED/DREADLOCKS Li El CROOKED El El REVOLVER CHEMICAL VII El
0 BUSHY
U El DECAYED El El SEMI AUTO El El CAUSTIC VIIVU - - — El U SINGLE SI-lOT
El El BUTCH 0 Li FALSE
0 /,s’z__ Li 0 INFECTIOUS VII_VVVUV__ CHILD El
Q COMBED BACK El C] GAP/SPACE
0 C] MACE
El El CURLERS El El GOLD CAP Barrel Type: El El PEPPER SPRAY V#_•C

U CURLY
0 C] JEWELED
U El SINGLE BARREL
u El TEAR GAS
U
0 FLAT TOP El El MISSING C] El DOUBLE BARREL El El TOXIC EMPLOYEE vu_____Va Li
0 GREASY
C El NONE
U El 40R MORE BARREL
U
p / A EMPLOYER
El
0 JI-IERI CURL El Ci SILVER CAP U] Li SAWED FF Vi. Vi.

El El MILITARY El El STAINED LI 8.1 BLUNT INSTRUMENT EX-SPOUSE El
U NETS El J1___ Color/FinIsh:
0 El BASEBALL BAT — -- FRIEND
u
o PONY TAIL El El BLUE srEEL U] El BILLY CLUB VII Vi.

Q
u PROCESSED SPEECH LI
0 CHROME/NICKLE El El BRASS KNUCKLES L_ GRANDCHILD
El LI PUNK 0 El ACCENT El Li DULLBLACK El El BRICK/ROCK/BOTTLE GRANDPARENT vII_ Li Li SHAVED El El DISGUISE U] El CLUB/BLUDGEON —
U

U RUSTED
El El STRAIGHT El C] LISPS
U El HAMMER/TOOL Vi.. .__VII
El El STAINLE
Li El WAVY
U El MUMBLES El TEEL Li NUNCHAKUS IN-LAW
Li ‘ El Li RAPID El El TIRE IRON NEIGHBOR vi.

COMPLEXION Li C] RASPY Grip / Stock: .k] Ii -
- OTHER FAMILY MEMBER
El C] ACNE / POCKED El El ALTERED vn vi. El
0 SLOW
Li C] ALBINO El Li BONE/PEARL/IVORY CUT/STAB OTHERWISEKNOWN Vi.

Li
0 DARK El Li SLURRED [I El METAL/PLASTIC El El BAYONET/SWORD P AR E NT El El FRECKLED Li
U STUTTER [El El BOTTLE / GLASS El F] NOGRIP
Li El LIGHT/FAIR El -- El I] MACHETE
El El MEDIUM Li El RUBBER/VINYL
a

U RAZOR (BROTHER OR SISTER) HANDED
Li El PALE
U
U TAPED El El SCREWDRIVR V El OLEFT
El El RUDDY V El Li WOOD
i vi.vu V SPOUSE
El
0 RIGHT
LI El SALLOW
o
,..,
íA STEPCHILD
El El TANNED El El BOTH 0 El GAUGE EXPLOSIVE / INCENDIARY vi. vi.

El El WEATHERED Fl
0 FIREWORKS vi. vit
— STEPPARENT
El El WRINKLED
———-—
El El MOLOTO
ElL___
El Li CALIBER ...*.! El_
‘C0CKTAIL V -. vi. STEPSIBLING
vn_________vi.

Vfl vi.

COMMON-LAW SPOUSE

HOMOSEXUAL RELATIONSHIP

RELATIONSHIP UNKNOWN SIBLING
/__ -_ . VICTIM WAS OFFENDER
H-R-498 Rev 10/18/2021 VICTIM WAS STRANGER
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ATTACHMENT E

Page 1714 of 3559 ends

AREA

C AIRPORT
C BEACH/OCEAN :COMMERCIAL

CONSTRUCTION SITE

ID DESERT

ID DRIVEWAY

C FREEWAY / HIGHWAY

ID GOLF COURSEID HARBOR

ID INDUSTRIAL) WHOLESALE

ID MOUNTAINS / FOOTHILLS

ID PARK

ID RESIDENTIALID RIVER

ID RURAL / ISOLATED

ID SCHOOL GROUNDSID SHOPPING CENTER

ID SIDEWALKID STREET/ALLEY
IJ TRAIN RIGHT-OF-WAY/TRACK’S

D VACANT LOT/OPEN FIELD
ID WATER/LAKE0
STRUCTURj RESIDENTIALC APARTMENT
0 CONDOMINIUM /TOWNHOUSE

ID CONVALESCENT HOSPITAL

ID DUPLEX
0 MOBILE HOMEID SINGLE FAMILY
0 VACANTID VESSEL) BQA
0 A./!f
STRUCTURE: NON- RESIDENTIAL

ID BANK/FINANCE

ID BARID BUSINESS OFFICE

ID CARGO CONTAINER

ID CATERING TRUCKID ENTERTAINMENT / RECREATION

ID FAST FOOD

ID GAS STATIONID HOSPITAL

ID HOTEL/MOTEL

ID INDUSTRIAL / MANUFACTURING / WAREHOUSE

ID JAIL/PRISON

ID JEWELRY) COIN) PAWN

ID LIQUOR

ID MARKET

ID MINI MART
0 NURSING FACILITYID PARKING LOT/STRUCTURE
ID PASSENGER STATION / PLATFORM (PA)<)

ID PHARMACY) MEDICAL / DENTALID PUBLIC BUILDING

ID RELIGIOUS BUILDING

CD RESTAURANTID RETAIL GOODS

ID RETAIL SERVICE / REPAIR

ID SCHOOL
STORAGE/RENTALID”7RAIN - FREIGHT
ID TRAIN — PASSENGER — LIGHT RAIL
ID TRAIN — PASSENGER — HEAVY RAIL

ID VACANT

ID VEHICLE - COMMERCIALID VESSEL/BOAT

ID VIDEO/MUSIC
ID________
TARGET: RESIDENTIAL

ID ATTIC

ID BEDROOMID DINING ROOM

ID GARAGE / PARKING AREACD HALLWAY

ID KITCHENID LAUNDRY ROOM

ID LIVING / FAMILY ROOM

ID MAIL BOX

ID PATIO/PORCH

ID SAFE/BOX

ID STORAGE/SHEDID STABLES) TACK ROOM
ID VEIICL I\f
TARGET: NON RESIDENTIAL

ID AUTOMATED TELLERID CASH REGISTER / DRAWER

ID CLASSROOM /SUPPLIESID COIN OP MACHINE

ID DISPLAY ITEMS

ID OFFICEID SAFE/BOX

ID SNACK BAR
g

STORAGE LOCKER

VEHICLE

DVESSELJBOA

ID BICYCLIST

ID CUSTOMER

ID ELDER)SENIORCITIZEN

ID DISABLED PERSON

ID OWNER) EMPLOYEE

C PEDESTRIAN

C HOMELESS
C VICTIMIN VEHICLEID_
— POINT OF ENJJW / EXIT
IN EN
C

C FRONT
ID
C REAR
[VSID
ID

C GROUND LEVEL

C ID UPPER LEVEL

C ID ADJACENT BUILDING

ID ID BASEMENT

C ID DOOR/SCREEN

ID ID DUCT/VENT
ID

C FENCE/GATE

ID ID FLOORID ID GARAGE

C ID GLASS DOOR

ID ID HOUSE BEING FUMIGATEDID ID LOUVRE
C

C MAIL SLOT

C ID PET DOOR

ID ID ROOF/SKYLIGHT

ID ID SLIDING GLASS DOOR
ID ID WALLID CD WINDOW] SCREEN
VEHICLE ENTRY! EXIT
IN EN

ID ID FRONT
C

C CAMPERISHELL/MOTORHOME

ID ID CONVERTIBLE

ID ID DOOR

ID ID DRIVER SIDEID ID HOOD

ID ID PASSENGER SIDEC ID SUNROOF

C ID TRUCK BED
ID

C TRUNK

ID ID WINDOW
D WG,yPOW

METHOD OF ENTRY

ID ATTEMPT ONLY

C BODILY FORCE
C CUT

C HID IN BUILDINGID KICKED
ID KNOB TWISTID LET 1N / RUSE

ID LOCK BOX

C LOCK CUT / BROKENC LOCK PUNCHED

C LOCKSUP)KEY)PICK

C NOFORCEID OPEN FOR BUSINESS

C OPEN/UNLOCKED

C PHONEID PRIED

C REMOVED

C SMASHEDID TUNNELED
C UNBOLTED GATEm ‘iW
METHOD OF ENTRY: TOOLS USED

ID BODILY FORCE

ID BOLT CUTTER

ID BRICK/ROCKID CHANNEL LOCK / PLIERS

ID CUTTING INSTRUMENTC ELECTRONIC DEVICE

ID GLASS CUTTER
ID KEY

ID PRYTOOLID SAW) BURN / DRILL

ID SLIDE HAMMER
CD SLIP DEVICEID VEI-IICLE4
- Li! ‘

SECURITY SYSTEM
6 NONE

C AUDIBLE ALARM

C CAMERA
C CRIME WATCH00DB

ID FENCE) BARS

ID GUARD SERVCEC OPERATION ID

C OUTSIDE LIGHTING

ID SECURITY SIGN / STICKERID SILENT ALARM

ID SPECIAL LOCKS / DEADBOLTC WINDOW BARS
C

SUSPECT ACTIONS

ID ATE / DRANK ON PREMISES

ID CASED LOCATION

ID COSTUME / DISGUISE WORN

C DEFECATED) URINATED

C DEMAND NOTE USEDID DEMANDED DRUGS) MONEY ETC

ID DISABLED PHONE

ID DISABLED POWERID DISABLED SECURITY SYSTEM

ID DISABLED VEHICLE

ID EXCESSIVE FORCE

ID FIRED WEAPON

C FONDLED SELF
ID GRAFFITIC I-liD IN BUILDING

C IGNITION PUNCHEDID JUMPED THE COUNTER

ID KNEW LOCATION OF HIDDEN CASH

ID MASK WORNID MASTURBATED) EJACULATED

ID PHOTOGRAPHED) VIDEOTAPED

C PILLOWCASE TAKEN) USED

C RANSACKED

ID RECORDED / LOGGED EVENTSID RIPPED) CUT CLOTHING

ID SELECTIVE PROPERTY TAKEN

C SMOKED

C TAKEOVER
,TOOK CONCEALABLES

ID USED MULTIPLE WEAPONS

ID VANDALIZED

ID VEHICLE USED TO REMOVE PROPERTY
ID VICTIM’S NAME USED
ID VICTIM’S TOOLS USEDC WASHED CLOTHING) BEDDING

ID WIPED SCENE AFTER CRIME
ID
SUSPECT WAS! HAD

C ALCOHOL ON BREATH

ID ANGRYID APOLOGETIC

ID BADBREATHID BODY ODOR/UNUSUAL ODOR
ID GANG—RELATED

C HOMELESS

ID INTIMIDATED / COERCED

ID NEVER SPOKE/QUIET

C POLITE)KIND

ID PROFANITY

ID QUOTES, UNUSUAL
C RAGE

C TRUST VIOLATION

ID UNDER INLUENCE
PAGE
7 OF Z..

SUSPECT PRETENDED TO BE:

ID BUSINESS PERSON

ID CONVERSATION / BEFRIENDEDID CUSTOMER

ID DELIVERY PERSONID FAMILY MEMBER
0 FIND MONEYID HANDICAPPED

ID HOMELESSID LEND ASSISTANCE

ID NEED ASSISTANCE OR EMERGENCY

ID NEEDTOILET/PHONE/WATERC OFFERED GOODS / SERVICES

ID POLICE/SECURITY

C POSITION OF TRUST

ID REPAIR PERSON

C SALES PERSON

ID SEEK EMPLOYMENTC SOLICIT DONATIONS
C UTILITV?LQYEE
VICTIM WAS:

ID ASKED TO POSE / MODEL

ID BLINDFOLDEDC BOUND/GAGGED

C BURNED

ID CUT/STABBED

C DISTRACTED

ID DRUGGED/SEDATED

ID EXPLOITED

ID FACE COVEREDID FOLLOWED

ID FONDLED

ID FORCED TO DISROBEC FORCED TO FONDLE SUSPECT

C FORCED TO LIE ON FLOORC FORCEDTO MASTURBATE

ID FORCEDTO MOVEC FORCED TO ORALLY COPULATE SUSPECT

ID GANG RELATED

C HANDCUFFED

C HOMELESSID INJURED / HIT

ID LOCKED IN

ID MADETO COUNT

C PINCHED

C PISTOL WHIPPED
C SHOT

ID SLAPPEDID THREATENED

ID TORTURED LMUTILATED
2____________
BIAS — MOTIVATED INCIDENT:

RACIALID ANTI — WHITE
C ANTI—BLACK
C ANTI—AMERICAN INDIAN/ALASKAN NATIVE
C ANTI —ASIAN / PACIFIC ISLANDER
ID ANTI — MULTIRACIAL GROUP

RELIGIOUS
C ANTI—JEWISH
C ANTI—CATHOLIC
ID ANTI — ISLAMIC (MUSLIM)
ID ANTI — OTHER RELIGION
C ANTI —MULTI RELIGIOUS GROUP
C ANTI —ATHEIST)AGNOSTICISM

ENTHNICITY/ NATIONAL ORIGIN
C ANTI — HISPANIC
C ANTI — OTHER ETHNICITY) NATIONAL ORIGIN
SEXUAL
ID ANTI — MALE HOMOSEXUAL (GAY)ID ANTI — FEMALE HOMOSEXUAL (LESBIAN) ID ANTI — HOMOSEXUAL (GAYS & LESBIAN)
ID ANTI — HETEROSEXUAL0 ANTI — BISEXUAL

GENDERCD ANTI - MALE
ID ANTI — FEMALE
ID ANTI —TRAN5t3ENDER

DISABILITY
C ANTI — MENTAL DISABILITY
C ANTI — PHYSICAL DISABILITY
LOS ANGELES COUNTY SHERIFF’S DEPARTMENT

CRIME ANALYSIS SUPPLEMENTAL FORM
— M.O. FACTORS
URN 23—of/Il- 6V7
7 C,., fl 100 On,, iCU-1rn90)I
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ATTACHMENT E

Page 1715 of 3559 ends

A TRADITION OF SERWCE
ACTION: 0 ACTiVE NON- #OFAOULT CRIMINAL ARRESTS
O INACTiVE PENDING 0
CLASSIFiCATION 1/LEVEL! STAT CODE
iPI9AL3t, 5’’1Q?)() CI CLASSIFICATION 2/LEVEL I STAT CODE CLASSIFICATiON SI LEVEL I STAT CODECLASSIFICATiON 4/LEVEL I STAT CODEADDITiONAL STAT CODES C ASAP /83 0 GANG RELATED I 880 0 FIREARM RELATED / 830 I] CYBER CRIME! 051

DATE/TIME / DAY OF OCCURRENCE

71. Ql-b-v- — oo /iøy—
fl,
wy LOCATION OF OCCURRENCE
02-14’ fPI(, ,*V, CtY
O CYBER - RELATED CRIME! 552 - C CYBER - RELATED INCIDENT (NON - CRIMINAL) /569 0 OTHER I] PRINTS REQUESTED REQUESTED BY:0 PRINTS COMPLETED

BUSINESS NAME
COUNTY OF LOS ANGELES SHERIFF’S DEPARTMENT

INCIDENT REPORT
#OFSUBJECT URt’I#
q 2A 0 1L7 RETENTION YEA SEQUENTIAL
DATE O\ •3 PAGE ( Of’ 3
0U3
REPORT1NG DISTRICT
— TA#

STATCOOS
TIME
CODE: V - VICTiM • W - WITNESS • I. INFORMANT • R - REPORTING PARTY • P - PARTY CODE 4 of LAST NAME FIRST NAME MIODLE NAJIE SEX RACE DOB AGE DRIVERS LICENSE! STATE ID V ( I ,Pç.Pc3Jj5 Wi” /‘1 \. Q-u47 RESIDENCE ADDRESS CITY STATE ZIP ID NCE PHONE (Area Code) (Lj7 Ae &‘‘f’’-5 (‘ —
BUSINESS / SCHOOL (GRADE) ADDRESS CflY STATE ZIP BUSINESS PHONE (Area Code) -L-U. A11’MTLL f4V cvy CIk ‘Io2o1 —
ETHNIC ORIGIN EMAIL ADDRESS SOCIAL NETWORKING ACCOUNT CEIi PHONE (Area Code) c3/vsfl-Lc3&3 e — 7
VICTIM OF OFFENSE(S( (CLASSIFICATION) S ViCTiM DESIROUS OF PROSECUTION? VICTIM OF SEX CRIME DESIROUS OF CONFIDENTIALITY? ENGLISH SPEAKING? YES D NO 9 1 AYES ONO DYES ONO /“// LANGUAGE
CD.OT U of LAST NAME FIRST NAME MIDDLE NAME SEX RACE DOS AGE DRIVERS LICENSE / STATE ID RESIDENCEADDRESS CDV STATE ZIP RESIDENCE PHONE (AreaCode)BUSINESS/SCHOOL (GRADE) ADDRESS CflY - STATS ZIP BUSINESS PHONE (Area Code) ETHNIC ORIGIN EMAIL ADDRESS SOCIAL NETWORKING ACCOUNT CELL PHONE (Area Code)V1C1TM OF OFFENSE(S) (CLASSIFICATION) VICTIM DESIROUS OF PROSECUTION? VICTIM OF SEX CRIME DESIROUS OF CONFIDENTIAL/TV? ENGLISH SPEAKING? Cl YES I] NO U 4 9 9 U DYES ONO DYES ONO LANGUAGE
CODE: S-SUSPECT • SJ-SUBJECT • U-PATIENT • SiV-SUSPECTIVICTIM • SJIV-SUBJECTIV)CTJM CODE # of LASTNAME FIRSTNAME MIDDLENAME DOB AGE DRIVER’SLICENSE!STATEID ‘7 -- SEX RACE ETHNIC ORIGIN HAIR EYES HEIGHT WEIGHT CELL PHONE (Area Code) RESIDENCE ADDRESS CITY STATE ZIP RESIDENCE PHONE (Area Code)BUSINESS / SCHOOL (GRADE) ADDRESS - CITY STATE ZIP BUSINESS PHONE (Area Code)ArIA - EMAIL ADDRESS - SOCIAL NETWORKING ACCOUNT ENGLISH SPEAKING? 0 YES C NO

LANGUAGE - MONIKER CHARGE - - - - BOOKINGNUMBE WHEREDETAINED ORCITE NUMBER f”’
COO 8 of LOST NAME FIRST NAME MIDDLE NAME DOB AGE DRIVERS LICENSE! STATE ID SEX RACE - ETHNIC ORIGIN HAIR EYES - HEIGHT WEIGHT - CELL PHONE (Area Code) RESIDENCE ADDRESS - - - CITY STATE ZIP RESIDENCE PHONE (Area Code)USINESS / CHOOL (GRADE) ADDRESS C Entry Prcsed BUSINESS PHONE (Area IceAKA EMAILADORESS I LItI$d - ‘ ‘-‘TW ENGLISH SPEAKING? I]YES 0 NO I 2nd RevIew LANGUAGE - MONIKER CHARGE [ BOOKING NUMBER WHERE DETAINED OR CITE NUMBER BY DEPUTY EMPLOYEE U SWORN ES? IN YRS DEPUTY EMPLOYEE # SWORN 83W IN YRS VACATION DATES ?. - Ø4’1 - - STATION UNITICAR# SHIFT APPROVED EMPLOYEE# DATE TIME rL-’
-
.

SA6oV. Z-V-Z /Id*#j
PCD SUBMITTED? VACATION DATES ASSIGNMENT - - A-L - HO NOTIFICATION REQUESTED? DEPUTY DATE ITTME SPECIAL REQUEST DISTRIBUTION DYES J]NO
SUSPECT! UBJECT FlEW RELEASE APPROVED BY: DATE / TIME CRIME BROADCAST BY: DATE / TIME SECRETARY 76C300F - SH-R-49 (Rev. 412014)
1043 of 1055

ATTACHMENT E

Page 1716 of 3559 ends

COUNTY OF LOS ANGELES SHERIFF’S DEPARTMENT ua1’OIU(.

INCIDENT REPORT TAGS
LI 5. UNIQUE VEHICLE IDENTIFIERS
LI 6. WRITERJREVIEWER DISCRETION
SERIAL# VALUE
9 V ‘2- 1’TAL- ‘(F%
I:, 3 .‘ P7WALL
¶‘ .L .‘ L,tC1f%SLAU •t5e(

A TRADITION OF SERVICE
—4’5—U17
PAGEL*OF -

VEHICLE LICENSE (STATE & NUMBERI YEAR MARE MOOEL BOOS TYPE COLOR YEH FOR CflM S
REGISTERED OWNER IDENTiFYING FEATURES

YEHIC FOR SUSPECT S
STATUS C DAMAGED C EMBEED CHP lBS SUBUO1 GARADE NAME & PNONE . El STORED C IMPOUNDED C OUTSTANDING
. YES C NO
VEHICLE liCENSE (STATE S NUMBER) YEAR MARE MOOSI. BOOS TYPE COLOR -WHFOR VICOM S REGISTERED OWNER IDENTiFYING FEATURES

ICFOR SUSPECT
STATUS ..M-:Z ci oAMAGED 0 BED CHP lee StM)flED? GARARE NAME S PE El STORED C IMPOUNDED C OUTSTANDING YES C NO
LI 1. SUSPECT IN CUSTODY C 3. UNIQUE SUSPECT IDENTIFIERSLI 2. SUSPECT NAMED I KNOWN 0 4. VEHICLE IN CUSTODY RFJlPJI FACTORS
PROPERTY CODE: RELEASED TO
S — STOLEN • R -RECOVERED • L — LOST • F — FOUND • E — EMBEZZLED • D — DAMAGED • K — SAFEKEEPING (Use all applicable Codes: for example, If property is both Stolen and Recovered, Code Is S/R) DESCRIPTION (Include kind otartlcle, trade name, Identifying numbers, CODE ITEM I QUAN. physical description, ,natadal, color, condition, age and present market value) I 6kr1-
N/4
-----------.. -+--
-
3,o&
4’, z ‘. -
76C300F - SH-R49 (Rev. 412014)
1044 of 1055

ATTACHMENT E

Page 1717 of 3559 ends

923-01456-0263-263

Page 3 of 3 ends

I responded to 8226 Atlantic Avenue in the city of Cudahy regarding a vandalism report call, T206. The call stated an unknown person broke the front gate to the business.

Upon my arrival, I contacted the informant (iavier Barajas, later identified as V/Barajas) and he told me the following:

On 01-30-23 at approximately 1210 hours he left his business locked and secured. He returned the following day at approximately 1500 hours and immediately noticed the front metal rod iron gate (D-1) had been bent inward and was off the tracks. As he walked onto the property he noticed the metal door (D-2) to the business had been bent inward allowing access to thebuilding. He further inspected the building from the interior and noticed the wall (D-3) above the metal door (D-2) had been cracked. While inspecting the building to see if any items were stolen he noticed the electrical panel (D-4) to the right of the metal door (D-2) was bent causing fuses to be hanging.

V/Barajas stated no other items were damaged or stolen. V/Barajas stated it would cost approximately $5,800 to fix the metal rod iron gate (D-1), $3,000 to fix the metal door (D-2), $4,000 to fix the wall (D-3), and $1,200 to fix the electrical box (D-4).

I inspected the metal rod iron gate (D-1) and noticed it was bent inwards and off the tracks. As I walked up to the building I observed the metal door (D-2) to the business was bent inward. As I further inspected the interior of the building I observed the wall (D-3) above the metal door (D-2) was cracked and the electrical panel (D-4) was bent.I canvased the area for any witnesses and/or video surveillance cameras but was met withnegative results.

All digital evidence was uploaded to evidence.com.

I provided V/Barajas with a Victim Bill of Rights and Report Memo. 1045 of 1055

ATTACHMENT E

Page 1718 of 3559 ends

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LOS ANGELES COUNTY SHERIFF’S DEPARTMENT

CRIME ANALYSIS SUPPLEMENTAL FORM
— SUSPECT / SUBJECT INFORMATION
NAME )

CLOTHING DESCRIPTION

PAGE OF

ITEM TYPE DESCRIPTION
NAME
EMPLOYEE # Cs

SUSPECT

SUBJECT

ITEM TYPES

CAP/HATCOAT / JACKET

DRESS/ SKIRT

GLASSESGLOVESJEWELRY

PANTSSHIRT/BLOUSE
SHOES
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CLOTHING DESCRIPTION

ITEM TYPE DESCRIPTION
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—‘---
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LR BODY UNK PART I R UNK SCARS / MARKS / TATTOOS / ODDITIES ‘bö‘OO-O—__
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RELATIONSHIP OF VICflM TO SUSPECT’:
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PERSONS WATCHED/BABY

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1046 of 1055

ATTACHMENT E

Page 1719 of 3559 ends

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ci DISTRACTED
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CI FACE COVERED

CI FOLLOWED
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CI SLAPPED
CI ThREATENEDci TORTURED/MUTILATED0
BIAS- MOTIVATED INCIDENT:
ci ANTI-WHITE0 ANTI—BLACK0 ANTI-AMERICAN INDIAN )ALASKAN NATIVE ci ANTI -ASLA/ PACIFIC ISLANDER
ci AN11-MJdtTIRAcIALGROUP
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ciAni -ISLAMIC (MUSLIM)
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/ ci ANTI-AThEIST/AGNOSTICISM

ENTRNIOTYI NATIONAL ORIGIN
0 ANTI-HISPANIC
ci ANTI- OTHER ETHNICITY) NATIONAL ORIGIN
ci ANTI -MALE HOMOSEXUAL (GAY)
ci ANTI-FEMALE HOMOSEXUAL (LESBIAN)
ci ANfl -HOMOSEXUAL (GAYS & LESBIAN)CI ANTI — HETEROSEXUAL0 ANTI-BISE)CUAL

GENDERID ANTI - MALE
CI ANTI-FEMALEci AN11-TRANSGENDER

DISARIUTY
ci ANTI -MENTAL DISABILITYci ANTI-PHYSICAL DISABILITY
LOS ANGELES COUNTY SHERIFF’S DEPARTMENT

CRIME ANALYSIS SUPPLEMENTAL FORM
— M.O. FACTORS
URN
SH-R-498 Rev. 1W1V2UI
1047 of 1055

ATTACHMENT E

Page 1720 of 3559 ends

ATTACHMENT GG.

Correspondence from OperatorDecember 19, 2023
1048 of 1055 ATTACHMENT E Page 1721 of 3559
1 Cecilia Madrigal
From: Tony Soliman <[email protected]>
Sent: Tuesday, December 19, 2023 6:35 PM
To: Jessica Guillen
Cc: [email protected]; Stephanie Arechiga ([email protected]); Alfonso Noyola; Juan Arauz; Joshua Calhoun; Cecilia Madrigal; Paloma McEvoy Subject: Re: Notice of Hearing- VM Evergreen, LLC: 8222 Atlantic Ave., Cudahy, CA 90201 Follow Up Flag: Follow up
Flag Status: Flagged
Hi Jessica,
The client informed me that they will not be able to attend this hearing as they will be out of town.

Best Regards,
Tony M. Soliman
Soliman Law Group, P.C.
1001 Wilshire Blvd. Ste. 1281
Los Angeles, CA 90017
Tel | 310.230.5255
Fax | 888.400.0833
Web | www.SolimanLawGroup.com
CONFIDENTIALITY NOTICE: This e-mail transmission, and any documents, files or previous e-mail messages attached to it is intended only for the use of the individual or entity to which it is addressed, and may contain information that is PRIVILEGED, CONFIDENTIAL and exempt from disclosure under applicable law. If the reader of this message is not the intended recipient, or the employee or agent responsible for delivering the message to the intended recipient, you are hereby notified that any dissemination, distribution or copying of this communication is strictly prohibited. If you have received this communication in error, please notify us immediately by telephone, and return the original to us by mail without making a copy. This communication constitutes an electronic communication within the meaning of the Electronic Communications Privacy Act, 18 U.S.C. § 2510 et seq.

On Nov 27, 2023, at 5:48 PM, Jessica Guillen <[email protected]> wrote:

To whom it may concern:

This is a courtesy email to inform you that the City Manager of the City of Cudahy has appointed Steve Napolitano to act as an independent hearing officer for a Review Hearing on VM Evergreen, 1049 of 1055 ATTACHMENT E Page 1722 of 3559
2 LLC compliance with the terms of their Development Agreement with the City. Please find the attached Notice of Review Hearing for your review.

The Notice of Review Hearing was sent via USPS-Certified mail to respective parties on November 27, 2023.

Please contact Cecilia Madrigal-Gonzalez, Senior Planner at 323-773-5143 ext. 252 [email protected] no later than ten (10) days from the date of this email 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,
<image001.jpg>
Jessica Guillen
Assistant Planner
City of Cudahy
5220 Santa Ana Street
Cudahy, California 90201
Tel: 323.773.5143 ext. 229
www.cityofcudahy.com
<VM Evergreen, LLC Draft Notice of Hearing.pdf>
1050 of 1055 ATTACHMENT E Page 1723 of 3559
ATTACHMENT HH.

Supplemental Information
provided on Compliance
Hearing dated January 8, 2024
1051 of 1055 ATTACHMENT E Page 1724 of 3559

REVIEW HEARING STAFF REPORT
Date: January 8, 2023
To: Hearing Officer, Steve Napolitano Esq.

From: Juan Arauz, AICP, Community Development Director
Prepared by: Cecilia Madrigal-Gonzalez, Senior Planner
Concurrence: Raul Diaz, Building Official, Joshua Calhoun, Finance Director, Glenn Ward Calsada, Special Counsel, Paloma McEvoy, Assistant City Attorney.

Subject: Supplemental Information on Compliance Hearing relating to Development Agreement (“DA”) 18-001C between VM Evergreen, LLC (“Operator”) and the City of Cudahy (“City”).

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

1. Hear the supplemental evidence presented by the City; and

2. Make a determination that the Operator is not in compliance with the terms and conditions of DA18-001C with the City and find that the Operator is in default of contractual obligations set forth in the DA; and

3. Make a recommendation to the City Manager for the Planning Commission and City Council to adopt an ordinance repealing Ordinance No. 698 and terminate DA18-001C and revoke the Operator’s interest under CCP 18-001.

BACKGROUND
On December 29, 2023, the City provided the Hearing Officer a review hearing staff report containing detailed background, analysis, and recommendation on the subject matter, for property located at 8222-8226 Atlantic Avenue (“Site”). This supplemental report expands on the analysis found in the December 29, 2023 report by adding two additional violations as described below.

DISCUSSION/ANALYSIS (SUPPLEMENTAL)
Under Section 19 of the Development Agreement, if the “City finds and determines based on substantial evidence that, Owner or Landlord executing [the] Agreement, or successor in interest 1052 of 1055 ATTACHMENT E Page 1725 of 3559
thereto, has not complied in good faith with the terms or conditions of the Agreement, City may terminate or modify [the] Agreement (except that no modification shall increase Owner’s liability nor reduce Owner’s rights).”
Pursuant to the CMC Section 5.20.080(6)(a), “[a]ny material violations of this chapter or any other relevant city law by a cannabis permittee, or cannabis permittee’s agent, is grounds for suspending or revoking the relevant cannabis permit.” To suspend or revoke a cannabis permit the City Manager must determine “that the cannabis permittee has failed to comply with any conditions of approval, or any agreement or covenant.”
City staff recommend the Hearing Officer review the material violations and evidence and make the following findings in support of finding the Operator to be in default of DA18-001C.

Violation #3. Failure to comply with Section 1.d of DA18-001C. Pursuant to DA Section 1.d (Zoning), and Section 17 (Rules, Regulations, and Official Policies), prior to any construction at the Site, the Operator shall adhere to all applicable CMC Zoning and building requirements. This includes obtaining all necessary zoning approvals and building permits.

Finding 4: The Operator failed to obtain any requisite approvals and permits from the City’s Planning Division, Building and Safety Division, and the Los Angeles County Fire Department prior to the installation of new insulated panel walls, interior framing walls, mezzanine, electrical wiring, recessed lighting, plumbing, and HVAC ducts (“Unpermitted Work”). Therefore, the Operator breached Section 1.d of DA18-001C.

Evidence: The City has no record of any requisite approvals or permits obtained by the Operator for the Unpermitted Work. On October 10, 2022, City and Los Angeles County Fire Department staff conducted an inspection of the Site and discovered the Unpermitted Work. As a result, the City red-tagged the structures at the Site declaring them unsafe to occupy, and notice (Attachment G) was issued to Operator outlining the Unpermitted Work. Since red tagging of the structures, City staff has met with Operator to explain the necessary requirements to legalize Unpermitted Work and bring the Site into compliance. This includes:

A) In its existing condition, the all structures at the Site have floor plans that deviate from the floor plans and floor areas described in DA18-001C. For example, Operator built unpermitted mezzanines to two of the buildings at the Site, resulting in an increase in floor area. Pursuant to the DA, Operator is required to formally submit a request to the City, for review and consideration, for floor plan modifications and change to floor area operations. Operator did not complete this process and made unauthorized improvements that resulted in an increase in floor area and a second story. However, the Site was required to be built pursuant to the site plan, floor plans and floor areas described in the DA.
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B) To bring the Site into compliance, Operator was required to prepare architectural and construction plans and submit for building plan check. Operator did not complete this process and therefore the Unpermitted Work at the Site was not remedied.

Violation #4. Failure to comply with Section 2 of DA18-001C. Pursuant to DA Section 2 (Term), the DA was approved with a 10-year term subject to the Operator maintaining a legal and/or equitable interest over the Site.

Finding 5: On December 6, 2023, Mrs. Rosa Valles, owner of Site, contacted the City to inform that the Operator has vacated the premises and turned over the keys. Therefore, the Operator breached Section 2 of DA18-001C.

Evidence: On December 14, 2023, City staff met with Mrs. and Mr. Valles to discuss the status of the Unpermitted Work left behind by Operator, and potential new uses at the Site.

Violation #5. Failure to comply with Section 7.e of DA18-001C. Pursuant to DA Section 7.e the Operator must obtain City approval of prior to making changes to the interior layout of the facility that increase the amount of space subject to Operating Fees under DA18-001C.

Finding 6: As previously stated, all of the structures at the Site deviate from the floor plans and floor areas described in DA18-001C, resulting in an increase in floor area from unpermitted mezzanines of unconfirmed size. Pursuant to Section 7.e of the DA the Operator is required to formally submit the request at least fourteen (14) days prior to making any changes. However, the deviations from the floor plans were discovered by City staff after a routine inspection permitted under the terms of the DA. Such changes are subject to authorization by the City Manager pursuant to Section 7.c for the purpose of determining Operating Fees owed to the City.

Operator did not complete this process in advance.

Evidence: On October 10, 2022, the City and Los Angeles County Fire Department staff conducted an inspection of the Site and discovered the Unpermitted Work which resulted in XX sf of additional floor area than permitted under DA18-001C. The City has no record of any request to increase the floor area of the Site prior to the Operator engaging in such changes.

NOTICE
Pursuant to Section 22 of the Development Agreement the City sent a Review Hearing notice via certified mail, and a courtesy email notice, to all concerned parties on November 27, 2023. The notice advised that the Review Hearing would be held on the hearing date at City Civic Center.

The notice of the Review Hearing informed Operator that a copy of the City staff report is available upon request, however, City did not hear from Operator or receive request for copy of the report.
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ENVIRONMENTAL ANALYSIS
The action(s) have been assessed in accordance with the California Environmental Quality Act (“CEQA”) (Pub. Res. Code § 21000 et seq.) and the environmental regulations of the City. The Project is expected to be categorically exempt from the requirements to prepare additional environmental documentation per CEQA Guidelines Section 15321. Class 21 (Enforcement Actions by Regulatory Agencies) is applicable to “Actions by regulatory agencies to enforce or revoke a lease, permit, license, certificate, or other entitlement for use issues, adopted, or prescribed by the regulatory agency or enforcement or a law, general rule, standard, or objective, administered or adopted by the regulatory agency.” Therefore, the action(s) are categorically exempt from the provisions of CEQA.

CONCLUSION
It is the City’s purpose and intent to regulate cannabis activities within the City in a responsible manner to protect the health, safety, and welfare of the residents of Cudahy and to enforce rules and regulations consistent with California Cannabis laws. CMC §5.20.010. Cannabis Operators with development agreements are obligated to comply with all provisions of the CMC, obligations of DA18-001C and conditions of approval under CCP18-0001. As discussed above and based on the evidence attached to this report, the Operator has failed to comply with their obligations despite being provided with ample notice and opportunities to achieve compliance. Therefore, staff recommends the Hearing Officer after independent review, consideration, analysis of staff’s report and the information presented, oral and written testimony by all parties and their witnesses, and the record as a whole – make a determination the Operator, VM Evergreen, LLC, has breached the terms and conditions DA No. 18-001C and recommend that the Planning Commission and City Council repeal Ordinance No. 698 and terminate DA18-001C and revoke their related interest in CCP18-001.
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DECISION and ORDER
Administrative Hearing Regarding Compliance by VM Evergreen LLC (Respondent) with Commercial Cannabis Permit (CCP) 18-0001 and Development Agreement (DA) 18-001C Between Respondent and the City of Cudahy (City).

Hearing Date: January 8, 2024.

Hearing Officer: Steve Napolitano, Esq. The Hearing Officer was present for the hearing.

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 a copy is available through the City Clerk’s Office.

Respondent: VM Evergreen LLC, 8222 Atlantic Avenue, 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
• Paloma McEvoy, Assistant City Attorney
• Glenn Calsada, Special Counsel
• Juan Arauz, Community Development
Director
• Joshua Calhoun, Finance Director
• Raul Diaz, Building Official
• 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 18-001C and Respondent’s portion of its CCP and recommends that the Planning Commission and/or City Council repeal Ordinance No. 698 and terminate DA 18-001C and revoke Respondent’s interest under CCP 18-0001.

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 City. 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.

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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 January 8, 2024, with attachments A through GG, plus the supplemental attachment HH, all of which were admitted into the record.

On September 11, 2017, the City adopted Ordinance No. 673 (Attachment A) establishing the City’s Cannabis regulations which added Chapter 5.20 to the Cudahy Municipal Code (“CMC”). CMC Section

5.20.040 authorizes medicinal commercial cannabis activities within a designated overlay zone/permit area and pursuant to the development agreement adopted in accordance with the Development Agreement Law (Gov. Code § 65864 et seq.) and CMC Chapter 20.28.

On November 19, 2018, the Planning Commission conducted a properly noticed public hearing to consider a commercial cannabis permit application for cannabis cultivation, manufacturing, distribution, delivery, and noncannabis café activities proposed at 8222 Atlantic Ave (“Site”). On a 2-1 vote, the Planning Commission continued the item to a date uncertain.

On November 23, 2018, the City received a formal written correspondence (Attachment Z) in the nature of an appeal from the Respondent requesting that the City Council hold an immediate hearing on their applications for a CCP and a DA. The Respondent cited that the Planning Commission’s failure to timely act on their applications was for no legitimate land-use reason and its continuation of a decision on the matter to an unspecified future hearing date is an unjustified delay in the processing of the CCP and DA resulting in substantial injury and significant competitive disadvantage. Furthermore, in such circumstances, the Planning Commission’s indecision and/or purposeful delay resulted in a defacto denial of the applications for the commercial cannabis permit and development agreement without expressed findings of facts as required by law.

On December 4, 2018, the City approved and issued the CCP18-001 to the Respondent and the conducted the first reading to adopt Ordinance No. 698 (“Ordinance”) (Attachment B) approving DA18- 001C (Attachment C) inclusive of Exhibits A-F (Attachment D) between Respondent and the City authorizing commercial cultivation, manufacturing, distribution, delivery activities and noncannabis cafe at the Site. Furthermore, the City Council instructed the Planning Commission to finish the November 19, 2018, public hearing for the CCP (Attachment AA). On December 17, 2018, the Planning Commission approved the CCP subject to the approval of the DA. The second reading of the Ordinance was conducted and approved on December 18, 2018, with an effective date of January 17, 2019. On February 11, 2019, Javier Barajas, the Respondent’s Managing Member, executed DA18- (Saleeby v. State Bar (1985) 39 Cal.3d 547, 565, 216 Cal.Rptr. 367, 702 P.2d 525.) ‘Due process’ is an ATTACHMENT F Page 1730 of 3559
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square feet (“sf”) for cultivation activities, 6,050 sf for manufacturing, 2,810 sf for distribution, 400 sf for delivery, and 4,120 sf for noncannabis use such as a lounge café and office.

On October 2, 2019, the City provided the Respondent with a Notice of Delinquency due to payment non-compliance (Attachment E) with the Development Agreement and Commercial Cannabis Permit, inclusive of the payment of Community Benefit Fees, Cost Recovery Fees, and Non-Operating Fees in the amount of eight thousand fifty-seven dollars and five cents ($8,357.05). The Respondent was given no later than October 17, 2019, to cure the past due amounts, however, the default was not timely cured.

On June 23, 2021, the City received a request from the Respondent to update the floor plans as described in Attachment F. The City has no record of approval or denial of this request.

Under Section 5.d of DA18-001C the City Manager or his/her designee(s) have the right to enter the Site from time to time unannounced for the purpose of making reasonable inspections to observe and enforce compliance with the DA and state and local laws and regulations without the requirement of a search warrant, subpoena, or court order. On September 29, 2022, City staff had a scheduled site inspection at the Site, however, City staff were refused entry by the Respondent. On October 10, 2022, City staff conducted a follow-up inspection of the Site and found several violations as detailed in Attachment G which resulted in a determination that the unpermitted construction and improvements resulted in an unsafe and dangerous structure and further required all building violations to be remedied before people could re-enter or occupy the structure, more commonly known as “redtagging.” On October 24, 2022, a meeting was scheduled with the Respondent, their legal counsel, City staff, and the City’s legal counsel to discuss the Respondent’s default status next steps to get back into compliance. City staff and the City’s legal counsel verbally provided the Respondent with the first necessary steps to bring their operation back on track to achieve compliance which included an updated project description and site plan.

On November 7, 2022, the City received an updated project description and site plan (Attachment H) for City staff to review. City staff, including the Building & Safety and Planning Divisions, reviewed the plans and provided comments resulting in a denial on November 21, 2022 (Attachment H) because the submitted plans proposed to maintain previously unpermitted work and alterations without seeking the proper modifications of the development agreement, building permits and approvals to ensure that work is carried out in accordance with building code requirements.

On November 30, 2022, City staff reached out to the Respondent for a status update on the project description and site plan and instructed the Respondent to contact the Building and Safety Division for further permit application requirements (Attachment H). The Respondent did not show substantial progress on remediating their building red-tag status. In fact, the City did not hear back from the Respondent until February 2023.

On December 6, 2022, the City Manager presented the City Council with a proposed Cannabis Deferment and Payment Program (“Payment Agreement”) to assist 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 (Attachment I). The City Manager did not receive a request from the Respondent to participate in the Payment Agreement. 001C. Recital I of the Development Agreement permits the Respondent to utilize approximately 4,120 ATTACHMENT F Page 1731 of 3559
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On February 17, 2023, the Respondent reached out to the City requesting the removal of the red-tag status at the Site and a request to modify the DA (Attachment H). On February 22, 2023, the City issued a Final Demand Letter (Attachment J) summarizing the previous discussions between City staff and the Respondent, reminding the Respondent of its default status under DA18-001C, and provided the Respondent with thirty (30) days to cure outstanding violations.

On or about March 2, 2023, the Respondent requested to enter into a Payment Agreement (Attachment H).

On March 6, 2023, the Respondent provided an updated site plan for City staff to review (Attachment H). The site plan provided was identical to the one previously provided to the City on November 7, 2022, and thus the City’s prior comments for unpermitted improvements were still applicable.

Additionally, the submitted plans, which only included a site plan, were not adequate because they did not include information on framing, electrical, and mechanical plans. The Respondent was instructed to reach out to the Building & Safety Division for further assistance. In fact, the Respondent was not able to adequately address all deliverables outlined in the Final Demand Letter (Attachment J).

On or about March 21, 2023, the City’s Finance Department presented the Respondent with a draft payment plan (Attachments K and CC), which offered the following terms:
• Deferral of Payment of Non-Operating Fees until six (6) months after a Temporary Certificate of Occupancy and then twelve (12) months to repay the amounts due; and • Repayment of past due Community Benefits Fees and Cost Recovery Fees over a twelve (12) month period; and
• Payment of fees due for February 2023 at the time of executing a payment plan with the City.

The Respondent rejected the proposed terms and instead countered the offer (Attachment L), claiming the Respondent had suffered “huge financial losses” and “multiple break-ins when hundreds of thousands of dollars' worth of equipment was stolen.” The City obtained reports made to law enforcement which reflected several thousand dollars worth of losses, but not in the hundreds of thousands as alleged by the Respondent (Attachment FF). The City rejected the offer (Attachment M) on March 22, 2023.

On April 12, 2023, the Respondent requested to meet with City staff to discuss the Respondent’s payment plans, financial situation and the appropriate steps moving forward. The City’s legal counsel met with the Respondent’s legal counsel on May 3, 2023.

On May 8, 2023, the Respondent submitted a revised request for a payment agreement for the past due fees under DA18-001C (Attachment N) to the City.

On May 12, 2023, the Respondent and the City entered into a Letter Agreement on Payment of Outstanding Fees and Costs (“Letter Agreement”) (Attachment O). The Letter Agreement’s terms required the Respondent to maintain current on Community Benefit and Cost Recovery payments but deferred the payment of Non-Operating Fees until six (6) months after the Respondent received a Temporary Certificate of Occupancy for the Site. In the Letter Agreement, 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...[and would] remain in ‘default status’ on its Development Agreement until all past due fees set forth in [the] Letter Agreement have been paid and Respondent is in full compliance with all terms of its Development Agreement.” The Letter Agreement also provided that if the Respondent is more than thirty (30) days late on any of the forbearance ATTACHMENT F Page 1732 of 3559
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payments due under the Letter Agreement or fees and costs under the Development Agreement would be deemed a material breach of the Letter Agreement.” The Letter Agreement stated that in the event of a material breach under the Letter Agreement, the Letter Agreement would be deemed “null and void, and the City shall be entitled to full payments and sums due and owing to the City at the time of the breach.”
From June 2023 through October 2023 the City notified the Respondent with invoices as well as two (2) notices of delinquency (Attachment P) and provided an opportunity to cure outstanding payments due.

However, the breach on the Letter Agreement was not cured and therefore was terminated and no longer in full force. Accordingly, the total of all past due amounts at the time the Letter Agreement was terminated was due and owed.

On August 9, 2023, the City issued letters(Attachment Q) requiring all cannabis operators to open an escrow account to ensure payment of cost recovery fees consistent with the escrow accounts required to be opened and maintained by all project developers within the City. As of the writing of the City’s Staff Report, the Respondent has not opened an escrow account nor made any payments into the account.

On September 6, 2023, the Respondent requested a new payment plan arrangement due to financial hardship but did not provide any terms for a new payment agreement (Attachment R).

On October 17, 2023, the City Council, at a regularly scheduled council meeting, considered the request from the Respondent for a forgiveness of fees and repayment plan request citing financial hardship. City Staff recommended denial of the repayment plan based on the Respondent’s (1) “redtag” status at the site due to noncompliant and unpermitted work; (2) failure to open an escrow account for cost recovery fees; and (3) failure to pay the fees due pursuant to the DA executed between the City Council and Respondent and previous payment plan arrangements made between the City and Respondent. After public comment and deliberation by the City Council, the City Council tabled further discussion of the item, requesting more information regarding amounts paid to the City: (1) from the execution of the Development Agreement until the start of the COVID-19 pandemic (April 2018-March 2020); (2) during the COVID-19 pandemic (April 2020-June 2021); (3) from the end of the COVID-19 pandemic and the burglary that was reported by the Respondent (July 2021-January 2023); (4) from the time of the burglary to present (February 2023-November 2023); and (5) the terms of the repayment and the exact amount Respondent is seeking the City to waive. The City Council agenda and staff report from the October 17, 2023, meeting is provided as Attachment S.

On October 24, 2023, the City issued a letter (Attachment T) 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 fourteen thousand nine hundred fifty dollars and fifty cents ($14,950.50).

On November 7, 2023, the City Council, at a regularly scheduled meeting, continued deliberations with the payment information requested above. The Respondent failed to provide further information regarding the amount the Respondent requested to waive or any other documentation regarding the Respondent’s payment history nor did the Respondent have any representatives present at the November 7, 2023, City Council meeting. After an opportunity for public comment and deliberations, the City Council voted to deny the Respondent’s request. The City Council agenda, staff report and PowerPoint from the November 7, 2023, Council meeting is provided as Attachment U and X.

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On November 27, 2023, the City sent a letter to the Respondent (Attachment V) formally denying their request for a new payment plan arrangement and forgiveness of fees. Furthermore, the letter stated the Respondent continues to be in default status along with other outstanding violations. Community Benefit Fees, Cost-Recovery and Non-Operating Fees plus penalties continue to accrue and the total amount due may be higher as of the date of the Review Hearing on January 8, 2023.

On November 27, 2023, the City issued to the Respondent a Notice of Review Hearing with the hearing date, time, and place (Attachment W).

On December 19, 2022, the City received correspondence from the Respondent stating they would be out of town and would not be able to attend the hearing (Attachment GG).

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 January 8, 2024, including all attachments previously mentioned.

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 CCP and their DA in its entirety based on the City’s Staff Report and the testimony by City staff at the hearing. Ms. Madrigal-Gonzalez asked that the Hearing Officer admit supplemental attachment HH into the record.

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.

Ms. Madrigal-Gonzalez stated that Respondent had failed to provide proof of being licensed by the state for cannabis manufacturing as required by the DA.

Raul Diaz, Building Official, testified that no permits were issued for any site improvements and no certificate of occupancy had been issued to Respondent. Mr. Diaz also testified as to Respondent’s denial of access to him at a Site inspection on September 29, 2022 and that City staff discovered on a subsequent inspection that unpermitted work was done by Respondent at the site. Ms. MadrigalGonazalez also confirmed that no zoning clearances were issued.

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Ms. McEvoy testified that the Notice of Review Hearing sent to Respondent on November 27, 2023 requested a response within 10 days, however, Respondent did not respond until December 19, 2023, saying that Respondent would be out of town and unable to attend the hearing.

Juan Arauz, Community Development Director, testified as to contents of supplemental attachment HH, saying that the City was informed by the Site owner that Respondent had turned over the keys to the Site in November 2023 and Respondent no longer had access to it. The Site owner seeks guidance on future uses and correcting unpermitted work done by Respondent.

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)).

Under Section 19 of the Development Agreement, if the “City finds and determines based on substantial evidence that, Owner or Landlord executing [the] Agreement, or successor in interest thereto, has not complied in good faith with the terms or conditions of the Agreement, City may terminate or modify [the] Agreement (except that no modification shall increase Owner’s liability nor reduce Owner’s rights).”
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
On February 11, 2019, VM Evergreen, LLC executed Development Agreement No. 18- 001C, which is a legally binding contract between the Respondent and the City requiring payment of fee pursuant to Section 5.b (Community Benefit Fees), Section 7.c (Operating Fees) Section 8 (Cost Recovery Fees).

In addition, in accordance with Section 7.c(1), late payment of Non-Operating Fees is subject to penalties that begin to accrue once a payment is more than thirty (30) days late. In December 2022, the City offered a Payment Agreement to the Respondent but the City did not receive any interest from the Respondent. On February 22, 2023, the City issued the Respondent a Final Demand Letter declaring a default status due to noncompliance with DA18- 001C. Shortly after, the Respondent requested a payment plan and on March 21, 2023, the City presented the Respondent with a payment plan offer.

The Respondent was not in agreement with the proposed terms of the offer and countered the payment plan to a reduced amount. The City did not accept the terms of the proposed amount but continued good-faith negotiations and met with the Respondent to discuss their financial situation. On May 12, 2023, the Respondent entered into a new payment agreement (Letter Agreement) (Attachment O) and the first payment was due in June 2023. The Respondent did not make the required payments and did not cure the default and as a result, the payment plan was null and void on October 13, 2023 (Attachment P). Proper notice of default was given with the opportunity to cure, although such notice and opportunity were not required under the Letter Agreement, but the Respondent has failed to fulfill its monetary obligations owed to the City.

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Pursuant to the DA Section 5.b (Community Benefit Fees), Section 7.c (Operating Fees) and Section 8 (Cost Recovery Fees), the Respondent must pay the City an annual Community Benefit Fee in the amount of $66,667.00 ($13,333.40 down payment and monthly payments in the amount of $5,333.36), a Cost Recovery Fee, and an Operating [or Non-Operating] Fee each year since April 2019. Table 1 of the City’s Staff Report provides an accounting of the payments made by the Respondent from the execution of DA18-001C in April 2019.

The evidence shows that between April 2019 to November 2023, the Respondent made thirteen (13) payments out of the possible fifty-five (55) payments. Respondent and City entered into a second repayment plan on May 12, 2023 (Letter Agreement) (Attachment O). The terms of the Letter Agreement required the Respondent to start making payments in June 2023 and remain current on Community Benefits and Cost Recovery Fees, but deferred the payment of Non-Operating Fees until six months after the Respondent received a temporary certificate of occupancy for the Site. During this time, the Respondent made two (2) payments.

The City asserts that the Respondent has not made the required timely payments and as of December 12, 2023, is past due in the amount of $441,068.48 as shown in Table 2 of the City’s Staff Report. The total amount due continues to accumulate, inclusive of Cost Recovery Fees, Non-Operating Fees, Community Benefit Fees, and late payment penalties.

Furthermore, as requested by the Respondent, City staff presented their September 6, 2023, request for an additional payment plan and forgiveness of fees to the City Council (Refer to Attachments S, U and X). The Respondent failed to express their proposed amount to be waived or a repayment schedule as requested by the City Council. Additionally, the Respondent did not attend the November 7, 2023, City Council meeting and thus the City Council voted in favor of denying the payment plan request and forgiveness of fees.

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 arguments itself, as Respondent failed to provide any evidence contrary to that presented by the City. Respondent knew and accepted the terms of the DA, including all payment provisions, willingly and voluntarily. Despite not making all initial required payments under the DA, Respondent failed to timely respond to the City’s first offer of a deferred payment plan which closed on January 31, 2023. A Letter Agreement for a new payment plan was ultimately agreed to on May 12, 2023 but Respondent made only two payments under it and failed to make all required payments to the City, resulting in the Letter Agreement’s expiration. Thus, Respondent was or should have been fully aware of its payment requirements and its failure to make them, as well taking advantage of a subsequent payment plan that it failed to honor, for which Respondent was also provided notice of.

Additionally, pursuant to the Letter Agreement, “[t]he failure to pay the past due delinquency as required by the notice shall be deemed an uncured event of default and a basis for termination of the Development Agreement. Nothing in this provision abrogates any other remedies available to the City under the Development Agreement for an event of default.” Respondent made only two payments under the Letter Agreement. Pursuant to the foregoing evidence, the Respondent’s non-payment of fees due under the Letter Agreement are grounds for termination of DA18-001C. Again, this is evidence of Respondent’s failure to pay all the fees required under the DA and the Letter Agreement as agreed to by Respondent.

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Accordingly, the City has put forward substantial and unrefuted evidence that Respondent has breached its payment obligations under Respondent’s DA18-001C, and as a result, DA18-001C is subject to suspension or revocation under CMC Section 5.20.080(6)(a).

2. Failure to Comply with Section 5.b of DA18-001C
Section 5.b permits the City Manager or his/her designee to enter the premises for the purpose of determining the Respondent’s compliance with the DA terms, state and local laws and regulations.

City staff gave the Respondent reasonable notice that it intended to enter the premises to determine whether the Site was in compliance with the terms of DA18- 001C. Despite giving prior approval, city staff were denied entry onto the site on September 29, 2022. Staff were provided access to the Site on October 10, 2022 which resulted in the discovery of unpermitted work that was inconsistent with the Site Plan and Floor Plan approved in conjunction with DA18-001C. As stated, Raul Diaz, Building Official, testified at the hearing confirming that he was denied access on September 29, 2022 after giving Respondent adequate notice.

A preponderance of evidence shows that the City has provided substantial and unrefuted evidence that Respondent’s failure to allow City staff access to inspect the Site after reasonable notice is a breach of Section 5.b of DA-001C, and as a result, DA18-001C is subject to suspension or revocation under CMC Section 5.20.080(6)(a).

3. Failure to comply with Section 1.d of DA18-001C
DA Section 1.d (Zoning) and Section 17 (Rules, Regulations, and Official Policies) required Respondent to adhere to all applicable CMC zoning and building requirements prior to construction at the Site, including obtaining all necessary zoning approvals and building permits.

Here, Respondent failed to obtain any requisite approvals and permits from the City’s Planning Division, Building and Safety Division, and the Los Angeles County Fire Department prior to the installation of new insulated panel walls, interior framing walls, mezzanine, electrical wiring, recessed lighting, plumbing, and HVAC ducts (“Unpermitted Work”). As a result, the City red-tagged the structures at the Site declaring them unsafe to occupy, and notice (Attachment G) was issued to Respondent outlining the Unpermitted Work.

The City has no record of any requisite approvals or permits obtained by the Operator for the Unpermitted Work. Additionally, during testimony, both the City’s Building Official and Senior Planner testified respectively that no permits were issued to Appellant and no zoning clearances were issued.

No evidence was submitted to refute these facts. Therefore, a preponderance of evidence shows that Respondent breached Section 1.d of DA18-001C.

4. Failure to comply with Section 2 of DA18-001C
Pursuant to DA Section 2 (Term), the DA was approved with a 10-year term subject to the Operator maintaining a legal and/or equitable interest over the Site.

On December 6, 2023, Mrs. Rosa Valles, owner of Site, contacted the City to inform that the Operator has vacated the premises and turned over the keys. Subsequently, on December 14, 2023, City staff met with Mrs. and Mr. Valles to discuss the status of the Unpermitted Work left behind by Operator, and potential new uses at the Site.

ATTACHMENT F Page 1737 of 3559
Napolitano Law + Counsel
Law | Arbitration | Mediation | Adjudication

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Respondent’s abandonment of the premises and turning over of the keys to Ms. Valles, the Site owner, is sufficient evidence to show that Respondent breached Section 2 of DA18-001C.

5. Failure to comply with Section 7.e of DA18-001C
Under DA Section 7.e, the Respondent must obtain City approval prior to making changes to the interior layout of the facility that increase the amount of space subject to Operating Fees under DA18- 001C.

According to the City’s submittals, all of the structures at the Site deviate from the floor plans and floor areas described in DA18-001C, resulting in an increase in floor area from unpermitted mezzanines of unconfirmed size. Pursuant to Section 7.e of the DA, the Respondent was required to formally submit the request at least fourteen (14) days prior to making any changes.

As City Staff previously testified, no permits, zoning clearances or approvals were sought or obtained by Respondent for the site. In fact, the deviations from the floor plans were discovered by City staff after a routine inspection on October 10, 2022, as permitted under the terms of the DA. Such changes are subject to authorization by the City Manager for the purpose of determining Operating Fees owed to the City. Respondent did not complete this process in advance. Therefore, a preponderance of the evidence shows that Respondent is in breach of Section 7.e of DA18-001C.

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 18-001C and recommends that the Planning Commission and/or City Council repeal Ordinance No. 698 and terminate DA 18-001C and revoke respondent’s interest under CCP 18-0001.

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.

Submitted February 12, 2024 by Steve Napolitano, Esq., Administrative Hearing Officer.

Steve Napolitano, Esq.

Napolitano Law & Counsel
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“Serving The People” "Sirviendo A La Comunidad"
Review Hearing Staff Report
01/08/2023 Page 1 of 4

REVIEW HEARING STAFF REPORT
Date: January 8, 2023
To: Hearing Officer, Steve Napolitano Esq.

Subject: Supplemental Information on Compliance Hearing relating to Development Agreement (“DA”) 18-001C between VM Evergreen, LLC (“Operator”) and the City of Cudahy (“City”).

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

1. Hear the supplemental evidence presented by the City; and

DISCUSSION/ANALYSIS (SUPPLEMENTAL)
Under Section 19 of the Development Agreement, if the “City finds and determines based on substantial evidence that, Owner or Landlord executing [the] Agreement, or successor in interest ATTACHMENT G Page 1739 of 3559
“Serving The People” "Sirviendo A La Comunidad"
Review Hearing Staff Report
01/08/2023 Page 2 of 4

thereto, has not complied in good faith with the terms or conditions of the Agreement, City may terminate or modify [the] Agreement (except that no modification shall increase Owner’s liability nor reduce Owner’s rights).”
Pursuant to the CMC Section 5.20.080(6)(a), “[a]ny material violations of this chapter or any other relevant city law by a cannabis permittee, or cannabis permittee’s agent, is grounds for suspending or revoking the relevant cannabis permit.” To suspend or revoke a cannabis permit the City Manager must determine “that the cannabis permittee has failed to comply with any conditions of approval, or any agreement or covenant.”
City staff recommend the Hearing Officer review the material violations and evidence and make the following findings in support of finding the Operator to be in default of DA18-001C.

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B) To bring the Site into compliance, Operator was required to prepare architectural and construction plans and submit for building plan check. Operator did not complete this process and therefore the Unpermitted Work at the Site was not remedied.

Evidence: On December 14, 2023, City staff met with Mrs. and Mr. Valles to discuss the status of the Unpermitted Work left behind by Operator, and potential new uses at the Site.

Operator did not complete this process in advance.

The notice of the Review Hearing informed Operator that a copy of the City staff report is available upon request, however, City did not hear from Operator or receive request for copy of the report.

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ATTACHMENT G Page 1742 of 3559
Page | 1
5220 Santa Ana Street
Cudahy, CA, 90201
Phone: (323) 773-5143
Fax: (323) 771-2072
www.cityofcudahy.com
Mayor
Jose R. Gonzalez
Vice Mayor
Elizabeth Alcantar
Councilmember
Martin U. Fuentes
Councilmember
Cynthia Gonzalez, Ed. D
Councilmember
Daisy Lomeli
City Manager
Alfonso Noyola, ICMA-CM
Incorporated November 10, 1960
June 13, 2024
Via U.S. Mail and Email:

VM Evergreen, LLC
Attn: Vicki Barajas, Manager
8222 Atlantic Avenue
Cudahy, CA 90201
Re: DA 18-001C
Dear Owner/Operator:

Below is a summary of past and current amounts due under Development Agreement DA 18-001C for Ordinance No 698, with an Effective date of February 11, 2019.

Fee Type Payment
Amount
Payment Period City
Code
Community Benefit Program $138,6667.36
$48,000.24
Outstanding balance as of
September 7, 2023.

Oct 2023 – Jun 2024 Monthly Fees
($5,333.36 monthly fee)
CBP
Cost Recovery Fees $66,825.50
$29,863.85
(14,950.50)
$7,683.62
Outstanding balance as of
September 7, 2023.

June 2023- May 2024
Reimbursement Expense Credit applied
on October 24, 2023.

Escrow Deposit Beginning Charge
URBF1
Non-Operating Fees $105,440.16
$33,891.48
$74,561.25
Outstanding balance as of
September 7, 2023.

Oct 2023 – Jun 2024 Monthly Fees
The monthly non-operating fee is
$3,765.72(.42 x 8,966 square
footage of the premises)
Penalties Aug 2022 – June 2024
OPFEE
Total Fees
Escrow Deposit Beginning Charge
$482,299.34
$7,683.62
Due July 1, 2024
ATTACHMENT H Page 1743 of 3559
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 September 7, 2023, and current CBP monthly installment from October 2023 to June 2024 totaling $186,667.60 are due July 1, 2024.

Cost Recovery Fee
The City labor and third-party contractors cost as of September 7, 2023 and current monthly fees from June 2023 to May 2024, totaling $81,738.85 are due July 1, 2024.

Escrow Deposit Account
Effective September 15, 2023, the City will require VM Evergreen, 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 this invoice, the Department of Finance is informing you that your beginning charge of your escrow deposit is $7,683.62. This beginning charge of your escrow deposit is based on the average amount of cost recovery fees from July 2022 to June 2023 ($30,734.47) 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 September 7, 2023, and the current monthly non-operating fees from October 2023 to June 2024, totaling $139,331.64 are due July 1, 2024.

Late Payment Penalties
Penalties totaling $74,561.25 from August 2022 to June 2024 are due July 1, 2024. 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.

ATTACHMENT H Page 1744 of 3559
Page | 3
Please pay no later than July 1, 2024, 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 4, 2024, along with escrow deposit beginning balance worksheet.

ATTACHMENT H Page 1745 of 3559
CBP URBF1 OPFEE OPFEE
Operator Comm Benefit Cost Recovery Non Operating Fees Penalties Outstanding VM Evergreen, LLC
Balance as of September 7, 2023 138,667.36 66,825.50 105,440.16 310,933.02 Penalties from Aug 2022 -May 2023 25,606.89 25,606.89

BILLINGS
Jun 2023 - - 3,765.72 4,828.28 8,594.00
Jul 2023 - 428.13 - 3,765.72 4,193.85
Aug 2023 3,450.66 - - 3,765.72 7,216.38
Sep 2023 2,904.97 - - 3,765.72 6,670.69
Oct 2023 5,333.36 1,332.07 3,765.72 3,765.72 14,196.87
Nov 2023 5,333.36 910.75 3,765.72 3,765.72 13,775.55
Dec 2023 5,333.36 5,323.63 3,765.72 3,765.72 18,188.43
Jan 2024 5,333.36 4,338.07 3,765.72 3,765.72 17,202.87
Feb 2024 5,333.36 1,829.32 3,765.72 3,765.72 14,694.12
Mar 2024 5,333.36 1,150.98 3,765.72 3,765.72 14,015.78
Apr 2024 5,333.36 1,189.41 3,765.72 3,765.72 14,054.21
May 2024 5,333.36 2,177.58 3,765.72 3,765.72 15,042.38
Jun 2024 5,333.36 pending 3,765.72 3,765.72 12,864.80

PAYMENTS
Jun 2023
Jul 2023
Aug 2023
Sep 2023
Oct 2023
Nov 2023
Dec 2023
Jan 2024
Feb 2024
Mar 2024
Apr 2024
May 2024
Jun 2024
Expense Reimbursement - 10/2023 (14,950.50) (14,950.50) Balance as of June 4, 2024 186,667.60 81,738.85 139,331.64 74,561.25 482,299.34 ATTACHMENT H Page 1746 of 3559
Operator
VM Evergreen, LLC
As of September 15, 2023 $ 7,683.62
Sep-23 $ 7,683.62
Oct-23
Nov-23
Dec-23
Jan-24
Feb-24
Mar-24
Apr-24
May-24
Jun-24
Total as of June 4, 2024 $ 7,683.62
Billings Deposits to
Escrow Account
Cost Recovery
Monthly Fees
Escrow Ending
Balance
Escrow Beginning
Balance
ATTACHMENT H Page 1747 of 3559
Public Hearing - Repeal Ordinance and DA - Page 1 of 2
Long Beach Press-Telegram
5150 E. Pacific Coast Highway Suite 200
Long Beach, California 90804
(562) 499-1236
City of Cudahy
5220 Santa Ana Street
Cudahy, California 90201
FILE NO. 0011678076

PROOF OF PUBLICATION
(2015.5 C.C.P.)

STATE OF CALIFORNIA
County of Los Angeles
I am a citizen of the United States and
a resident of the County aforesaid; I
am over the age of eighteen years, and
not party to or interested in the aboveentitled matter. I am the principal clerk of the printer of Long Beach PressTelegram, a newspaper of general circulation, printed and published in the
City of Long Beach*, County of Los
Angeles, and which newspaper has
been adjudged a newspaper of general
circulation by the Superior Court of the
County of Los Angeles, State of
California, under the date of March 21,
1934, Case Number 370512. The
notice, of which the annexed is a
printed copy, has been published in
each regular and entire issue of said
newspaper and not in any supplement
thereof on the following dates, to wit:
06/28/2024
I certify (or declare) under the penalty
of perjury that the foregoing is true and
correct.

Executed at Long Beach, California,
this 28th day of June, 2024.
______________________________
Signature
*Long Beach Press-Telegram, a newspaper of general circulation, is delivered to and available in but not limited to the following cities: Long Beach, Lakewood, Bellflower, Cerritos, Downey, Norwalk, Artesia, Paramount, Wilmington, Compton, South Gate, Los Alamitos, Seal Beach, Cypress, La Palma, Lynwood, San Pedro, Hawaiian Gardens, and Signal Hill.

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1 From: Rosa Valles <[email protected]>
Sent: Thursday, January 11, 2024 8:43 PM
To: [email protected]
Cc: Paloma McEvoy
Subject: Lease Termination
Hello,
Please be advised the lease for VM Evergreen was terminated in October 2023:
8226 S. Atlantic Blvd.

Cudahy, CA 90201
(4 total units)
Feel free to contact me if you have any additional questions.

Thank you
Rosa C. Valles
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“Serving The People” "Sirviendo A La Comunidad"
City Council
07/16/2024 Page 1 of 18

STAFF REPORT
Date: July 16, 2024
To: Honorable Chair and Planning Commission Members
From: Alfonso Noyola, City Manager
By: Juan Arauz, AICP, Community Development Director
Prepared By: Jessica Guillen, Assistant Planner
Reviewed by: Cecilia Madrigal-Gonzalez, Senior Planner and Paloma McEvoy, Assistant City Attorney
Subject: Introduction and Adoption by First Reading of Ordinance No. 752 repealing Ordinance No. 676, terminating Development Agreement No. 18-019C between the City of Cudahy and Cuper Development, LLC.

RECOMMENDATION
City staff recommends that the City Council take the following action(s):

1. Open the public hearing and receive public comments and testimony; and

2. Make a determination that Cuper Development, LLC (“Operator”) is not in compliance with the terms and conditions of Development Agreement (“DA”) No. 18- 019C and find that the Operator is in default of contractual obligations set forth in the DA; and

3. Introduce and adopt by first reading Ordinance No. 752 (Attachment A) repealing Ordinance No. 676 terminating DA No. 18-019C, between the City of Cudahy and Cuper Development, LLC; and

4. Schedule the second reading of Ordinance No. 752 at the next regularly scheduled meeting on August 20, 2024; and

5. Determine that these actions are exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15321 (Enforcement Actions by Regulatory Agencies).

Item Number
13C

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SUMMARY
Pursuant to the terms and conditions of DA No. 18-019C and Commercial Cannabis Permit (“CCP”) No. 18-0019, it is the City’s purpose and intent to regulate cannabis activities within the City in a responsible manner to protect the health, safety, and welfare of the residents of Cudahy and to enforce rules and regulations consistent with California’s cannabis laws. Cannabis operators with development agreements are obligated to comply with all provisions of the Cudahy Municipal Code (“CMC”), obligations of the DA, and conditions of approval under the CCP, and applicable state and local laws and related regulations. This report provides a summary of the unrefuted evidence offered at an administrative review hearing; a decision by a thirdparty hearing officer (“Hearing Officer”) finding the Operator in default of the DA and out of compliance with the CCP; the public hearing by the Planning Commission, determining that the Operator has failed to comply with the terms and conditions of its DA, despite being provided with ample notice and several opportunities to achieve compliance, thereby recommending to the City Council that it repeal Ordinance No. 676 and DA No. 18-019C through the adoption of Planning Commission Resolution No. 2024-14. Therefore, City staff recommends the City Council adopt Ordinance No. 752 repealing Ordinance No. 676 terminating DA No. 18-019C.

BACKGROUND

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

2. On April 30, 2018, the Planning Commission recommended approval of CCP No. 18-0019 (Attachment F - pp. 62-77) for cannabis manufacturing and cultivation at 4916 Cecilia Street, Unit A (“Subject Site”), as illustrated in Figure 1 below. The Operator is one of seven tenants at the Site which all have separate development agreements with the City but share an interest in CCP No. 18-0019 and are subject to the same conditions of approval. As discussed in further detail below, the conditions of approval of CCP No. 18- 0019 require the Operator to make timely payments of the fees due under the Development Agreement, among other requirements.

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Figure 1 – Aerial of the Subject Site

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

4. On June 5, 2018, the City Council adopted Ordinance No. 676 (Attachment D) approving Development Agreement No. 18-019C by and between the Operator and the City authorizing commercial cannabis manufacturing and cultivation activities at the Site as illustrated in Figures 2 and 3, below. The DA requires the Operator to make timely payments for Community Benefit Fees; Cost Recovery Fees; and Non-Operating Fees.1 Figure 2 – Floor Plan
1 As used herein, the term Non-Operating Fees and Operating Fees are used interchangeably.

Site
4916 Cecilia St
Unit A
4916 Cecilia Street

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07/16/2024 Page 4 of 18
Figure 3 – Site Plan

5. On October 2, 2019, the City provided the Operator with a Notice of Delinquency (Attachment F, p. 234) due to failure to pay the various fees due under CCP 18-0019 and DA No. 18-019C, prior to placing the Operator in default status due to payment noncompliance with the DA, inclusive of the non-payment of Community Benefit Fees, Cost Recovery Fees, and Non-Operating Fees in the amount of $170,140.66. The Operator was given no later than October 17, 2019 to cure the amount, however the delinquency was not timely cured.

6. On May 4, 2021, the City provided the Operator with a Notice of Default (Attachment F, pp. 236-237) due to non-compliance with the payment of fees and associated penalties in the amount of $575,356.45. The Operator was given no later than 30 days to cure the default, however, the default was not timely cured.

7. On October 19, 2021, the City provided the Operator with a Final Demand Letter (Attachment F, pp. 239-240) due to payment non-compliance informing the Operator that fees and penalties had accumulated to $639,004.09. This letter included a list of prior efforts by the City to achieve compliance. The Operator was given no later than 30 days to cure the default and comply with payment obligations, however, the default was not timely cured.

8. On October 12, 2022, a meeting was scheduled with the Operator’s legal counsel, the Operator’s representative, City staff, and the City’s Special Counsel. City staff and the City’s Special Counsel provided the Operator with the necessary steps and information to bring their operation back on track to achieve compliance both verbally and by email (Attachment F, pp. 242-244). Prior to the meeting, City staff had visited the Subject Site and observed substantial work activity. Additionally, the City's Building Official observed that the work underway did not conform to the original site and floor plans approved by the City in the Operator’s CCP and DA. The City made an immediate request for the Operator to provide revised and updated site and floor plans to conform with work

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underway at the Subject Site. CCP No. 18-0019 requires that prior to undertaking any operational or construction-related activity which is not expressly described in the CCP conditions, the Operator shall first contact the City Manager, or his designee, to determine if the proposed activity requires a modification of their CCP. The City Manager may, at his sole discretion, require the Operator to file a written and/or mapped description of the proposed activity in order to determine if a permit modification is required. The Operator was given no later than October 21, 2022 to provide revised plans and complete required documents for the City Manager's consent of design changes. The revised plans and required documents were not timely submitted.

9. Pursuant to City Council direction, on December 7, 2022, the City Manager offered a Deferment and Payment Program (Attachment F, pp. 246-247) to assist cannabis operators with accumulated Community Benefits, Cost Recovery and Non-Operating Fees by deferring and providing additional time for payment without penalty. Under the program:
a. Unpaid Non-Operating Fees would be deferred (without penalty) until six (6) months after the Operator was issued a Certificate of Occupancy, and then repay already accumulated Non-Operating Fees within 12 months; and
b. Operators would continue to be responsible for the timely payment of Community Benefit Fees and Cost Recovery Fees, as they accumulated; and c. Previously incurred Community Benefit Fees and Cost Recovery Fees would be subject to a payment plan and require timely payments.

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

10. On January 10, 2023, the City presented the Operator with a Letter Agreement agreeing to the Deferment and Payment Program to forbear the outstanding payments due (“Letter Agreement”) (Attachment F, pp. 249-256). The Operator accepted the proposed terms and executed the Letter Agreement on February 2, 2023, and agreed to commence payments on March 2, 2023. The Letter Agreement stated that the Operator had an outstanding balance of $402,707.00. in past due fees. By signing the Letter Agreement, the Operator also acknowledged and agreed “that the past due amounts stated are true and correct and are in fact presently due and owing. The parties agree that the Operator is in ‘default status’ on its obligations under the Development Agreement with the City… [and would] remain in ‘default status’ on its Development Agreement until all past due fees set forth in [the] Letter Agreement have been paid and Operator is in full compliance with all terms of its Development Agreement” (Attachment F, p. 251).

Pursuant to the terms of the Letter Agreement, the Operator agreed to maintain current payments for Community Benefits Fees and Cost Recovery Fees as they become due under the Development Agreement, effective March 1, 2023, and to commence a 12-

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month payment schedule for past-due Community Benefits Fees and Cost Recovery Fees beginning April 1, 2023. As stated above, all past due and accruing Non-Operating Fees were deferred until six months after the Operator was first issued a Temporary Certificate of Occupancy.

11. On January 30, 2023, the Operator provided City Staff with the revised plans that were requested on October 21, 2022 (Attachment F, pp. 258-260). However, the Operator did not complete nor submit the proper documentation to City Staff to determine if a permit modification was required based on the proposed facility design changes. As of the writing of this report the City Manager has not approved any changes to the facility that do not conform to the original site and floor plans approved by the City in the Operator’s CCP and DA.

12. The Operator executed the Letter Agreement on February 2, 2024 (Attachment F, p. 254).

13. Between March and May 2023, the City provided the Operator with three Notices of Delinquency (Attachment F, pp. 261-276) under the Letter Agreement and provided an opportunity for the Operator to cure outstanding payments due. However, the default on the Letter Agreement was not timely cured and therefore was terminated and no longer in full force and effect as of June 16, 2023. Accordingly, the total of all past due amounts at the time the Letter Agreement was terminated and an amount of $1,272,382.53 and was due and owing.

14. On June 23, 2023, the City sent a Final Demand Letter (Attachment E) demanding the Operator to respond to the following demands: 1) Forwarding payment for the total past due amounts and 2) Contact City staff for a meeting to revise the CCP’s Schedule of Performance and for further information to become compliant with the DA and CCP. The Final Demand Letter provided 30 days for the Operator to comply, so that no further action would be necessary. The Operator did not respond in a timely manner and has failed to make any attempt to cure any defaults.

15. On August 9, 2023, the City issued an Escrow Account Letter (Attachment F, pp. 282-283) requiring all cannabis operators to open an escrow account by September 15, 2023, to ensure payment of Cost Recovery Fees. As of the writing of this report, the Operator has not opened an escrow account nor made any payments into the account.

16. On October 24, 2023, the City issued a letter (Attachment F, pp. 285-286) updating the Operator on their payment and fees related to the DA by correcting the amount due to an error in the total amount billed. The City provided the Operator a credit in the amount of $14,950.50, which was applied to the Operator’s outstanding balance of 1,456,692.52 as of October 1, 2023.

17. On November 27, 2023, the City issued the Operator a Notice of Review Hearing (Attachment F, pp. 288-289) with the hearing date, time, and place. The notice informed the Operator that the Review Hearing was being held pursuant to Article 19 of DA No. 18-

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0019C, requesting the Operator to timely submit evidence of compliance and to submit payment for an estimated cost2 of the Review Hearing (Attachment F, pp. 288-289). The notice also requested the Operator to contact staff to confirm appearance at the Review Hearing and advised the Operator to respond within ten days of the date of the letter to confirm appearance at the Review Hearing other otherwise waive the right to present evidence at the hearing (Attachment H).The notice also informed the Operator to deliver a cashier’s check three days prior to the scheduled hearing and that failure to do so would constitute further default under the DA. The City did not receive any response, reply, documents evidencing compliance, or payment for the cost of the Review Hearing.

18. On December 29, 2023, the City sent follow up to the Notice of Review (“Follow Up Notice”) to the Operator confirming that it had not received any communication from the Operator confirming attendance at the Review Hearing and that the ability to present before the hearing officer had been waived (Attachment H). The City did not receive a timely response from the Operator.

19. Two days before the Review Hearing, on January 6, 2024, an attorney who appears to represent the Operator submitted a letter to the City alleging the City was in default with the terms of DA No. 18-019C (“Notice to Cure Breach”) (Attachment I). The Notice to Cure Breach alleged the City had breached DA No. 18-019C by (a) failing to waive fees pursuant to the Article 23.i of the DA (Force Majeure); (b) failing to “expedite” approvals and by seeking fees for delays allegedly caused by the City; (c) requiring the Operator to pay NonOperating Fees as required by the DA; (d) implementing fees that violate The Mitigation Fee Act (Govt Code § 65864-65869.5); and (e) failing to conduct an annual hearing to determine compliance with the DA No. 18-019C. The Notice to Cure Breach also alleged the City was liable under the Civil RICO statute. The Operator demanded that the City (i) waive all accumulated Non-Operating Fees for a period of 15 months; (ii) “waive all fees during any delays caused by the City[;]” (iii) “waive all fees when the City was in default under the agreements[;]” (iv) issue certificate of occupancy to the Operator; (v) halt the hearing process before the third-party Hearing Officer; and (vi) expedite the processing of all permit applications.

20. On January 8, 2024, the duly appointed third-party Hearing Officer, Steve Napolitano, conducted a Review Hearing as authorized under the CMC Section 5.20.080(7) and Section 19 of the DA No. 18-019C to hear and consider information and evidence submitted by City staff through an Administrative Record (Attachment F) and the Operator. No representation from the Operator was present at the hearing nor did the Operator submit any information or evidence for consideration for the hearing.

21. On January 8, 2024, after the Review Hearing had been completed, the City received a request to submit the Notice to Cure Breach into the administrative record for the hearing that took place on January 8, 2024 (Attachment K).
2 Pursuant to Article 19(a) of the DA, Operators must submit an annual review and administration fee deposit based on the City’s estimated cost, upon the City’s reasonable notice in advance of the review. The City provided over 30 days’ notice of the estimated cost.

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22. On February 15, 2024, the Hearing Officer issued a written decision and order (the “Decision”) (Attachment G) finding evidence showing the Operator, despite considerable notice and opportunities to cure outstanding issues, has breached the terms and conditions of the DA and CCP and recommends the Planning Commission and City Council repeal Ordinance No. 676 terminating DA No. 18-019C and revoke the related interest in CCP No. 18-0019.

23. On May 14, 2024, pursuant to State law and the CMC, the Planning Commission held a duly noticed public hearing to consider the Hearing Officer’s recommendation to repeal Ordinance No. 676 and terminate DA No. 18-019C. The Planning Commission considered all public comments received before and during the public hearing, the presentation by City staff, the relevant staff report, administrative record, and all other pertinent documents. No representation from the Operator was present at the hearing. After closing public hearing, the Planning Commission adopted Resolution No. 2024-14 (Attachment N), recommending the City Council repeal Ordinance No. 676 and terminate related DA No. 18-019C.

24. As of the writing of this report, Operator has continuously failed to make payments and as of June 13, 2024, owes $1,775,764.90 (Attachment L).

DISCUSSION/ANALYSIS
During a review of the Operator’s compliance with the Development Agreement, the burden is upon the Operator to demonstrate good faith compliance with the terms of the Development Agreement under Article 19. Pursuant to Government Code Section 65868.1 and Articles 19 and

19.d of the Development Agreement, if the City Council determines, based on substantial evidence, that the Operator has not complied in good faith with the terms of the conditions of the Development Agreement, the City Council may terminate the Development Agreement. or alternatively may choose to modify and impose conditions reasonably necessary to protect the interests of the City. Conversely, if the Operator is found to be in compliance with the Development Agreement, the Operator may request the City to issue a Certificate of Compliance pursuant to Article 19(e). Any decision to terminate a development agreement must be reviewed by the Planning Commission prior to review by the City Council. Gov. Code § 65867. Under Article 19(d), the decision to terminate a development agreement by the City Council is final and only subject to appeal pursuant to Civil Code Section 1094.5.

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

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The City has appointed a Hearing Officer to conduct a review of the Operator’s compliance with CCP No. 18-0019 and DA No. 18-019C. The findings and determinations made by the Hearing Officer inform any subsequent action to terminate or modify the Development Agreement and suspension or revocation of the CCP. As stated above, and further described in Attachment G, the Hearing Officer issued a written decision making several findings of fact and conclusions and determined that Cuper Development, LLC breached the terms and conditions pursuant to DA No. 18-019C and CCP No. 18-0019, based on a preponderance of the evidence, in the following material aspects:

1. Violation #1: Breach of Payment Obligations. Pursuant to the terms of the DA, the Operator is responsible for timely payment of Community Benefit Fees (Article 5(b)); Cost Recovery Fees (Article 8); and Operating Fees (Article 7(c)). The Operator is also obligated to make the fees due under the DA pursuant to CCP Condition of Approval No. 45; and timely payment for non-operating fees pursuant to Condition of Approval No. 13 (Attachment F, pp. 62-77). Conditions of Approval Nos. 1(a) and 1(b) require the Operator to pay all City-issued invoices within 30 days of receipt. Pursuant to the terms of the DA, Operators that are more than 30 days past due operating fees are subject to a penalty equal to twenty-five percent (25%). In addition, a ten percent (10%) penalty shall be added to the first day of each calendar month following the imposition of the initial 25% penalty, if the fee remains unpaid in whole or in part, up to a maximum of the one hundred percent (100%) of the payable fee.

The Operator’s duty to comply with the CCP conditions of approval are incorporated into the DA No. 18-019C under Section 18.3 Conditions 1(a) and 1(b) require the Operator to pay all City-issued invoices within 30 days of receipt. Conditions 13, 37, and 45 all require timely payment of fees due under the Development Agreement. The City has regularly sent monthly invoices for Community Benefits Fees, Cost Recovery Fees, Non-Operating Fees, and appliable late penalties since 2019 (Attachment F, pp. 310-426).

The City executed a Letter Agreement to grant the Operator relief in the form of deferred payment obligations of the Operating Fees and a payment schedule for past-due Community Benefit Fees and Cost Recovery Fees; and an obligation to remain current on recurring fees under the DA. The Operator did not make a single timely payment in the three months that followed the execution of the Letter Agreement between March to May 2023. As of October 24, 2023, the City reported that the Operator is past due in the amount of $1,456,692.52 and past-due payments continue to accumulate, including late payment penalties. The Operator continues to fail to make payments and as of June 13, 2024, $1,775,764.90 is due and owing.
3 Section 18 of DA No. 18-019C states “Owner shall comply with all conditions of approval of the Regulatory Permit approved by City Council.” The Regulatory Permit is CCP No. 18-0019.

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Table 1. Summary of Past and Current Amounts Due as of June 13, 2024 Fee Type Payment Amount Due
Community Benefit Program $41,254.35
Cost Recovery Fees $75,090.55
Non-Operating Fees $1,285,200.00
Penalties (Late Payments) $374,220.00
TOTAL $1,775,764.90
Based on the evidence submitted by the City, the Hearing Officer found that “based on the unrefuted evidence presented by the City...a preponderance of the evidence shows that [Operator] breached multiple conditions of the DA and CCP. Despite multiple attempts and notices by the City to gain compliance, the evidence shows that [Operator] failed to comply with their payment obligations, which constitutes the necessary grounds for termination of the DA and revocation of the CCP under the CMC” (Attachment G). The Hearing Officer’s determination was ratified by the Planning Commission through the adoption of Resolution No. 2024-14 which recommends that the City Council find that Operator is in default of the terms set forth in DA No. 18-019C and repeal Ordinance No. 678 and terminate the related DA.

2. Violation #2: (a) Failure to Implement the Project Consistent with Prescribed Timelines in Condition of Approval No. 51 (Time Limits) and (b) Breach of Condition of Approval No. 48 (CCP Modification) under CCP No. 18-0019.
(a) The Operator’s duty to comply with the CCP’s conditions of approval are incorporated into DA No. 18-019C under Section 18. CCP Condition of Approval No. 51(A)(i) sets a 90-day time frame in which the Operator needed to obtain a Zoning Clearance. Condition of Approval No. 51(A)(ii) sets a 90-day time frame in which the Operator must complete construction of Phase I of the Project. CCP Condition of Approval 51(A)(iii) sets a 180-day time limitation from the effective date of the CCP to complete all tenant improvements, construction, and obtain a certificate of occupancy from the Building Department. Failure to obtain a Zoning Clearance within 90 days of the effective date of the CCP, renders the CCP to “expire and become null and void” (Attachment F, p. 73). The City Manager’s ability to grant an extension of time for a Zoning Clearance if the Operator has made diligent efforts to implement the project is stated in Conditions of Approval 30(A)(i), (ii), and (iii). The Operator was notified of the failure to implement the project within the prescribed timelines and provided an opportunity to cure pursuant to the City’s Final Demand Letter (Attachment E).

The Operator was given a notice of default and opportunity to cure pursuant to the City’s Final Demand Letter to the Operator (Attachment F, pp. 278-280), with no response from the Operator. The Operator has failed to provide any evidence that it has obtained a Zoning Clearance, completed construction of Phase I, or completed the tenant improvements, obtained a certificate of occupancy, or

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otherwise complete Phase II within the prescribed time periods. Nor does the City have any record of any request by the Operator for an extension of time to the City Manager and there is no evidence to demonstrate the Operator has made substantial progress, such as submitting an application for a Zoning Clearance or building permit plan check.

Based on the evidence submitted by the City, the Hearing Officer determined that “[a] preponderance of the evidence shows that [Operator] remains in breach of its conditions of approval under CCP18-0019 by failing to implement the Project within the time frames set forth in Condition of Approval No. …51.” (b) As previously stated, the CCP conditions of approval are incorporated into the DA through Section 18. Regarding the unpermitted work at the Subject Site, CCP18- 0019 Condition of Approval No. 48 states prior to undertaking any operational or construction-related activity which is not expressly described in the CCP conditions, the Operator shall first contact the City Manager, or his designee, to determine if the proposed activity requires a modification of the CCP. The City Manager may, at his sole discretion, require the Operator to file a written and/or mapped description of the proposed activity in order to determine if a permit modification is required. In this case, the City was made aware of the unpermitted changes the Operator made to the facility without City Manager approval through a site inspection. As a good faith effort, the City provided the Operator with the necessary information and documentation to cure the violation discovered by City staff on October 12, 2022 (Attachment F, pp. 242-244). The Operator has never filed a written or mapped description of the design changes made to the facility as Condition of Approval No. 48 requires. Based on the evidence submitted by the City, the Hearing Officer determined that “[a] preponderance of the evidence shows that [Operator] remains in breach of its conditions of approval under CCP18-0019 by failing to implement the Project within the time frames set forth in Condition of Approval No. 48...”
The Hearing Officer’s determination was ratified by the Planning Commission through the adoption of Resolution No. 2024-14 which recommends that the City Council find that Operator is in default of the terms set forth in DA No. 18-019C and repeal Ordinance No. 678 and terminate the related DA.

3. Violation #3: Failure to Obtain State-Issued Cannabis Licenses for Cultivation and Manufacturing. Recital I of the DA states the Owner has applied for three (3) licenses: 1) Cultivation; 2) Manufacturing and 3) Distribution. Article 21 of the DA states that the facility shall not operate unless the Owner is the holder of a State-issued Cannabis license for the type of commercial cannabis facility or business operation that is the subject of the DA. A license search by the City of the California Department of Cannabis Control website using the search term “Cuper Development” shows that the Operator has no record of an active cannabis license for Cultivation or Manufacturing. The state records show that the Operator only has an active C11- license as a Commercial-Distributor –

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Adult Use and Medicinal. Based on the evidence submitted by the City, the Hearing Officer determined that based on “[a] preponderance of the evidence presented by the City, as noted [in the Decision and Order] the [Operator] has failed to maintain all its necessary licenses to operate under the DA, which constitutes a breach of Article 21 of the DA” (Attachment G, pp. 8-9).

4. The Hearing Officer’s determination was ratified by the Planning Commission through the adoption of Resolution No. 2024-14 which recommends that the City Council find that Operator is in default of the terms set forth in DA No. 18-019C and repeal Ordinance No. 678 and terminate the related DA.

Allegations of Default on Behalf of the City:

As an initial matter, the Notice of City Default offered as evidence to demonstrate compliance with the DA and CCP was untimely submitted, nor does it actually offer evidence of Operator’s compliance with the CCP and DA. The request to submit the Notice of Default was submitted after the Review Hearing took place on January 8, 2024, after providing the Operator with multiple notices, and need not be considered. However, the City shall respond to the allegations made by the Operator’s representative which are largely unsupported by the evidence, the law, or both.

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

Operator has failed to make a showing that the circumstances of Force Majeure were present during the time of default. The City provided the Operator with the first notice that it was in breach of the DA and CCP in October 2019 (Attachment F, p. 234), approximately five months prior to the Governor’s issuance of Executive Order N-33-20 to shelter in place in response to the COVID-19 pandemic (Attachment J). The Operator was provided 30 days to cure the default pursuant to Article 14(a) of the DA (Attachment F – p. 109). The Operator did not cure the default, nor take diligent efforts to cure the default. The City issued a subsequent notice to Operator on May 4, 2021 (Attachment F, pp. 236-237) during the Operator’s unsupported allegation of the City’s 15-month closure. As an initial matter, City Hall was not closed for a 15-month period. During the height of the pandemic, City Hall’s physical premises were closed to the public, however, the City continued to conduct business, and process requests, including applications for building permits which could be dropped off at the front of City Hall. Additionally, both commercial cannabis activities, inclusive of cannabis manufacturing, and commercial construction were permitted by the authority granted to the State Public Health Officer pursuant to Executive Order N-33-20 (Attachment F, pp. 298-308). The state permitted cannabis activities and construction to continue through the height of the pandemic and

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operators were able to continue processing applications, such as building permits, during this time.

The Notice of City Default alleges that the Operator has invested $10 million from the onset of the COVID-19 pandemic to present day. Operator has not provided any evidence to demonstrate that it has expended $10 million in resources. However, if the Operator was prohibited from engaging in activities that would have allowed them to pursue the operation of a cannabis business, it is unclear how the Operator could have invested $10 million and still been prohibited from moving forward with the implementation of the project at the same time.

Even assuming arguendo that there was an event of Force Majeure, Article 23(i) 4 does not
excuse performance, but only provides the Owner with an extension of time. There is no excusal or waiver of performance under Force Majeure nor does Article 23(i) grant the City the ability to waive fees. Any allegation that City “agreed” not to charge fees during the COVID-19 pandemic or other delays are unsupported by any documents approved, ratified, or otherwise executed by the City. To the contrary, the City offered all cannabis operators an opportunity to participate in a Deferment and Payment Program in 2022 that would have provided the deferment of certain fees and a payment plan to accommodate any impacts that may have been sustained as a result of the COVID-19 pandemic. The Operator acknowledged all fees, inclusive of Cost-Recovery Fees, Community Benefit Fees, and Non-Operating Fees accrued upon signing a Letter Agreement with the City on February 2, 2023, in which the Operator acknowledged and agreed “that the past due amounts stated are true and correct and are in fact presently due and owing. The parties agree that the Operator is in ‘default status’ on its obligations under the Development Agreement with the City…[and would] remain in ‘default status’ on its Development Agreement until all past due fees set forth in [the] Letter Agreement have been paid and Operator is in full compliance with all terms of its Development Agreement. (Attachment F – pp. 248-256)
Operator Has Failed to Demonstrate How the City has Failed to Expedite Approvals. The Notice of City Default asserts the City has delayed in approving certain plans, however the City has no record of the Operators attempt to apply for and obtain a Zoning Clearance or implement the multiple phases of the Project in accordance with the proper procedures as described in Violation #2 above. Operator failed to offer any evidence that it complied with the timelines and requirements set forth in the CCP and DA. Further, as stated above, the Operator has been in default since 2019. Any allegation by the Operator that the City’s duty to review building plans was limited by the annual review process under Article 19 of the Development Agreement is unfounded. Further the duty to accept any applications or grant any permits is expressly contradicted in the Article 14(f) of the 4 In full, Article 23(i) states “If delays are caused by unforeseen events beyond the control of Owner, such delays will entitle Owner to an extension of time as provided in this section. Such unforeseen events (‘Force Majeure’) shall mean war, insurrection, acts of God, local, state or national emergencies, strikes and other labor difficulties beyond the party’s control, or any default by the City hereunder, which Force Majeure event substantially interferes with the development, construction or operation of the Project.”

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DA.
5 Despite this, the City provided a pathway to achieve compliance with multiple defaults, including the schedule of performance, which the Operator did not timely attempt to cure any default.

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

2. There is No Evidence in the Administrative Record to Support a Finding that the City Did Not Intend for the Non-Operating Fees Not to Apply. To support the notion that NonOperating Fees would not apply the Operator’s representative submitted statements by a former councilmember who now acts as a consultant to many of the defaulting operators and other persons affiliated with the Operator.6 Any assertion that Non-Operating Fees were not intended to apply is directly contradicted by language in Article 7(c)(1) which states the Operator shall be charged a “monthly operating fee of [.42 x total square foot of the “Premises”] until Owner is operating on the Premises and selling product under its City Regulatory Permit and State Regulatory Permit. Once Owner is operational and generating revenue, the monthly operating fee is [.42 x total square foot of “Production Space”] or a monthly operating fee based on gross receipts.” (Attachment F, p. 102 (emphasis added)). The Development Agreement further provides that “Operating Fees shall begin to accrue ninety (90) days after the end of the month of the Effective Date of the Agreement.” Id. The language provided in the DA plainly states a formula that applies for Operating Fees for when the Operator is operating based on square footage or gross receipts or a formula based on square footage when the Operator is not operating or in “non-operation.” To argue that there is no such thing as 5 Article 14(f) provides that “[n]o building permit shall be issued or building permit application accepted for any structure on the [Subject Site] after Owner is determined by City to be in default of the terms and conditions of this Agreement until such default thereafter is cured by Owner or is waived by City.” 6The Operator’s representative offered a statement by Daffodil Tyminski that was submitted to the City pursuant to Evidence Code Section 1152 and 1154, which protects the confidentiality of statements made during settlement or negotiation discussions. Based on this submitted statement it appears that the Operator has waived that privilege afforded by those previous statements.

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Non-Operating Fees merely because those exact words do not appear in the DA, is a matter of semantics. There is no language that discusses or implies the intent for such fees to apply only to operators who “squat” on licenses as represented in a declaration submitted by the consultant and squarely contradicts the plain language in the DA.

Failure to pay such fees are out of compliance with Conditions of Approval Nos. 1(a) and (b), requiring payment of all City-issued invoices within thirty days of receipt. Nonpayment of Non-Operating Fees is also in violation of Conditions of Approval 13, 37, and

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

Even if the Mitigation Fee Act was applicable to the past due fees, inclusive of NonOperating Fees, to properly contest these fees, the Operator would have been required to tender the required payment in full and serve written notice to the City that informs the City that payment has been tendered under protest accompanied by a statement of facts. (Govt. Code § 66020(a).) However, such protests must be filed at the time of the approval of the development or within ninety (90) days of the imposition of fees. The City and Operator entered into the Development Agreement on June 5, 2018. The 90-day statute of limitations to protest such fees ended on September 3, 2018, and Operator never tendered payment in full as required by Government Code Section 66020(a).

Therefore, any opportunity to protest under the Mitigation Fee Act has long since passed.

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

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

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

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5. The City Has Not Breached the Ability for the City Council to Make a Final Determination on the Operator’s Compliance with the Development Agreement and Whether to Modify or Terminate the DA, or Otherwise Find the Operator in Compliance. The plain language in Article 19(d) of the Development Agreement provides that “[a]t the time and place set for the Review Hearing, Owner shall be given an opportunity to be heard. If City Council finds, based upon substantial evidence, that Owner has not complied in good faith with the terms or conditions of this Agreement, City Council may terminate this Agreement notwithstanding any other provision of this Agreement to the contrary, or modify this Agreement and impose such conditions as are reasonably necessary to protect the interests of the City.” The City has retained a Hearing Officer for the purpose of hearing the evidence and making a recommendation to the City Manager, Planning Commission and City Council to “adopt an ordinance repealing Ordinance No. 676 and terminate Development Agreement No. 18-019C and revoke Operator’s interest under CCP18- 0019.” (Attachment F, pp. 2-14) The Operator has been provided an opportunity to be heard at the administrative hearing conducted by the Hearing Officer, whose findings and determinations have been sent to the Planning Commission, City Manager and also and City Council. No one has denied the Operator the opportunity to be “heard” before the City Council. To the contrary, the City has provided a Notice of Review that outlined the requirements for the Operator to demonstrate compliance, as well as a Follow Up Notice to confirm the City had not received any response from Operator. The Operator has chosen to ignore the procedural requirements that require the repeal of an ordinance to terminate a development agreement, and instead submitted a request to submit a Notice of Default into the record after the Review Hearing took place. The Hearing Officer’s Decision was forwarded to the Planning Commission and now the City Council, both of which are public forums in which the Operator may address decision making bodies.

Further, there is nothing in Article 19(d) or the CMC that prohibits the City from appointing a third-party hearing officer from conducting the initial hearing and forwarding findings to City decisionmakers for the purpose of determining whether to take any action to modify or terminate the DA or CCP so long as the City Council’s determination and actions are supported by substantial evidence. All such findings and recommendations made by the Hearing Officer have been and shall continue to be forwarded to the appropriate decisionmakers for final disposition. The City has provided Operator with more than 30 days’ notice of the January 8, 2024 hearing, requesting Operator to provide evidence of compliance at least 10 days prior to the hearing (Attachment H). The Operator did not provide a timely response and the City sent a follow up communication informing Operator that it did not submit any documentation and has waived its rights at the review hearing (Attachment I). Operator instead submitted a Notice of City Default over the weekend prior to the Monday Review Hearing alleging the City is in default of DA18-019C.

Pursuant to Article 14(d) of DA18-019C, Operator’s remedies for a default are limited to a termination of the Development Agreement.

CMC Section 5.20.080(6)(a) permits the City Manager to revoke an operator’s interest in a CCP upon a determination “that the cannabis permittee has failed to comply with

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[Chapter 5.20], any condition of approval, or any agreement or covenant as required pursuant to this chapter.” The City Manager’s decision to revoke the operator’s interest in a CPP may be appealed to a third-party hearing officer or to the City Council. CMC §

5.20.080(7). As determined by the Hearing Officer, there is a preponderance of evidence to support a finding that the Operator is out of compliance with the DA and CCP. Should the City Manager revoke the Operator’s interest in CCP 18-0019, the Operator may appeal the decision to the City Council.

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

Even if the City were in default of the DA, which it is not, the Operator’s remedies are limited under the DA. Pursuant to Articles 14(a) of the DA, “[i]t is acknowledged by the parties that City would not have entered into this Agreement if it were to be liable in damages under this Agreement, or with respect to this Agreement or the application thereof, except as herein provided.” Further, Article 14(b) provides that the Operator may only seek monetary damages if there is a showing of “bad faith intentional acts [or] the grossly negligent or malicious acts of City and its officials, officers, agents and employees.”
Pursuant to Article 14(d) of the DA, even if the City were in default, which it is not, the Operator’s remedies would otherwise be limited to a cancellation of the Development Agreement after providing a 60-day notice of default. Operator’s notice did not provide 60-day notice, but 30-day notice.

Based on the evidence provided by the City, which was unrefuted at the time of the Review Hearing, the Hearing Officer found that the Operator “has breached the terms and conditions of DA 18-019C and [Operator’s] portion of its CCP and recommends to the Planning Commission and/or City Council repeal Ordinance No. 676 and terminate DA [No.] 18-019C...” (Attachment G). Pursuant to CMC Section 20.84.070, DA 18-019C and CCP No. 18-0019 were processed concurrently and approved collectively under Ordinance No. 676. To repeal Ordinance No. 676, the repeal shall occur in the same manner as the original proceedings and pursuant to CMC Section 20.84.500.

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

ENVIRONMENTAL ANALYSIS
The action(s) have been assessed in accordance with the California Environmental Quality Act (“CEQA”) (Pub. Res. Code § 21000 et seq.), CEQA Guidelines (Cal, Code Regs., tit. 14, § 15000 et seq.) and the environmental regulations of the City. The Project is categorically exempt from the requirements of CEQA pursuant to CEQA Guidelines Section 15321 - Class 21 (Enforcement

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City Council
07/16/2024 Page 18 of 18
Actions by Regulatory Agencies). This exemption is applicable to “[a]ctions by regulatory agencies to enforce or revoke a lease, permit, license, certificate, or other entitlement for use issues, adopted, or prescribed by the regulatory agency or enforcement or a law, general rule, standard, or objective, administered or adopted by the regulatory agency.” If the City Council adopts Ordinance No. 752 to repeal Ordinance No. 676 and terminate DA No 18-019C, it would be an enforcement action. Therefore, the action(s) are categorically exempt from the provisions of CEQA.

CONCLUSION
As discussed above and based on the preponderance of unrefuted evidence offered at the Review Hearing; the public hearing by the Planning Commission finding that the Operator has failed to comply with the terms and conditions of its DA, despite being provided with ample notice and several opportunities to achieve compliance, thereby recommending to the City Council that it repeal Ordinance No. 676 and DA No. 18-019C through the adoption of Planning Commission Resolution No. 2024-14. As stated above, the Operator has failed to comply with their obligations under the DA, despite being provided with ample notice and several opportunities to achieve compliance. Therefore, City staff recommends the City Council adopt Ordinance No. 752 repealing Ordinance No. 676 terminating DA18-019C.

ATTACHMENT(S)
A. Proposed Ordinance No. 752
B. Ordinance No. 673
C. City Council Resolution No. 18-17
D. Ordinance No. 676
E. Final Demand Letter dated June 23, 2023
F. Administrative Record for Cuper Development, LLC
G. Decision and Order for Cuper Development, LLC
H. Review Hearing Waiver dated December 29, 2023
I. S. Rucci Email dated January 6, 2024
J. Executive Order N-33-20
K. S. Rucci Email dated January 8, 2024
L. Invoice dated June 13, 2024
M. Newspaper Publication
N. Planning Commission Resolution 2024-14

Page 1812 of 3559 ends

ORDINANCE NO. 752

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
CUDAHY REPEALING ORDINANCE NO. 676 AND

TERMINATING RELATED DEVELOPMENT AGREEMENT
NO. 18-019C BETWEEN CUPER DEVELOPMENT, LLC
AND THE CITY OF CUDAHY.

WHEREAS, the City of Cudahy (the “City”) is a general law city, incorporated under the laws of the State of California; and
WHEREAS, pursuant to its police power, the City may enact and enforce laws within its boundaries that promote the public health, safety, or general welfare of the community, and are not in conflict with general laws; and WHEREAS, to strengthen the public planning process, encourage private participation in comprehensive planning and reduce the economic risk of development, the California State Legislature adopted Section 65864 et seq. of the California Government Code (the “Development Agreement Statute"); and
WHEREAS, the Development Agreement Statute authorizes the City to enter into a development agreement with a person having legal or equitable interest in real property for the development of such property in order to establish certain development rights in exchange for public benefits; and
WHEREAS, in accordance with the Development Agreement Statute, the City Council adopted Ordinance No. 690 in 2018 establishing the procedures and requirements for the consideration of development agreement with the City and are contained within Cudahy Municipal Code (“CMC”) Sections 20.84.530 through 20.84.640; and WHEREAS, on September 11, 2017, the City Council adopted Ordinance No. 673 establishing regulations for commercial cannabis activities, in a specified Overlay Zone through an acquisition of a Commercial Cannabis Permit and execution of a development agreement with the City; and
WHEREAS, on April 30, 2018, the City Planning Commission (“Planning Commission”) conducted a properly noticed public hearing to consider an application by Cuper Development, LLC (“Operator”) for approval of a Commercial Cannabis Permit to allow non-store front commercial cannabis cultivation and manufacturing activities at 4916 Cecilia Street, Unit A (“Site”); and
WHEREAS, at this hearing, the Planning Commission heard and considered verbal and written testimony and evidence, and recommended approval of the Commercial Cannabis Permit subject to Operator’s execution of a development agreement with the City; and
WHEREAS, on May 15, 2018, the City Council conducted a properly noticed public hearing to consider the issuance of the Commercial Cannabis Permit (“CCP”) No. 18-0019 ATTACHMENT A - DRAFT ORDINANCE NO. 752Page 1813 of 3559 Ordinance No. 752

Page 2 of 9 ends

and Development Agreement (“DA”) No. 18-019C at which the City Council heard and considered both written and oral testimony and evidence and subsequently approved, and adopted Resolution No. 18-17 for CCP No. 18-0019; and
WHEREAS, at the same hearing the City Council considered and approved CCP No. 18-0019, it also conducted the first reading of Ordinance No. 676 which authorized the execution of DA No. 18-019C between the Operator and the City; and WHEREAS, on June 5, 2018, the City Council adopted, on second reading, Ordinance No. 676, approving DA No. 18-019C and authorizing the Mayor to execute the DA on behalf of the City; and
WHEREAS, the effective date of the Development Agreement is July 6, 2018 (“Effective Date”); and
WHEREAS, upon the Effective Date of Ordinance No. 676, the Operator was granted the permission to conduct commercial cannabis cultivation and manufacturing activities provided, among other things, it apply for and receive a Zoning Clearance pursuant to the CMC’s requirements, receive State licensing approval from the Department of Cannabis Control, and comply with the terms outlined in the DA and conditions of approval under the CCP inclusive of the timely payment of Community Benefit Fees, Cost Recovery Fees and Operating/Non-Operating Fees and applicable penalties and interest; and
WHEREAS, the Operator has not complied with the terms and conditions of the DA and CCP despite multiple notices and opportunities to cure and remains in material breach of thereof; and
WHEREAS, on November 27, 2023, the City provided notice to the Operator that it would be conducting a Review Hearing (“Review Hearing”) under Article 19 of DA No. 18- 019C which informed the Operator of the burden to prove compliance with the DA and CCP; and
WHEREAS, the Operator never provided a timely response to the City’s notice for a Review Hearing; and
WHEREAS, on November 29, 2023, the City sent a follow-up notice informing the Operator it had not received any response to the Review Hearing Notice; and WHEREAS, the Operator did not respond to the follow up notice; and WHEREAS, on January 8, 2024, Steve Napolitano, Esq., a duly appointed thirdparty hearing officer for the City (“Hearing Officer”), conducted a properly noticed Review Hearing; and
WHEREAS, the Operator did not participate at the Review Hearing, was not present at the hearing and did not present any evidence for consideration prior to or during the hearing, and the Hearing Officer heard and considered information and evidence by City ATTACHMENT A - DRAFT ORDINANCE NO. 752Page 1814 of 3559 Ordinance No. 752

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staff, which a true and correct copy of the staff report and supporting evidence is attached hereto as Exhibit “A” and incorporated herein by reference; and WHEREAS, the Hearing Officer heard and considered information and evidence by City staff; and
WHEREAS, on February 15, 2024, the Hearing Officer issued a written decision and order (the “Decision”), incorporated by reference and attached hereto as Exhibit “B,” making several findings of fact and conclusions of law with respect to the Operator’s noncompliance with the DA and CCP based on a preponderance of the evidence; and WHEREAS, the Hearing Officer determined that Operator breached the DA and CCP in five material respects by a preponderance of the evidence; WHEREAS, The Operator’s duty to comply with the CCP No. 18-0019’s conditions of approval are incorporated into DA No. 18-019C under Section 18; and WHEREAS, the Hearing Officer determined that Operator had breached its payment obligations under DA No. 18-019C and CCP No. 18-0019 due to the Operator’s non-payment of fees and penalties due and owed to the City totaling $1,496,137.70, which continue to accumulate; and
WHEREAS, the Operator continues to fail to meet its payment obligations and the total amount due to the City as of June 13, 2024, is $1,775,764.90; and WHEREAS, the Operator had breached its obligation to implement the project within the prescribed time periods contained with CCP No. 18-0019 Condition of Approval No. 20 (Time Limits), because there is no evidence that the Operator has made a diligent effort to implement the Project in any fashion inclusive of an application for a Zoning Clearance to permit the commercial cannabis activities; and WHEREAS, the Operator breached CCP No. 18-0019 Condition of Approval No. 18 (Construction Activities) for failing to obtain any requisite approvals from the City Planning Division and Building & Safety Division prior to conducting construction activities; and
WHEREAS, the Operator breached CCP No. 18-0019 Condition of Approval No. 17 (Commercial Cannabis Permit Modification) due to the Operator’s failure to receive City Manager approval for the design changes made to the facility; and WHEREAS, the Operator failed to comply due to the Operator’s failure to maintain all its necessary licenses to operate under the DA; and WHEREAS, the Hearing Officer has recommended that the City Council adopt an ordinance repealing Ordinance No. 676 terminating DA No. 18-019C and revoking the related interest in CCP No. 18-0019; and
WHEREAS, pursuant to state law and the CMC, the Planning Commission duly ATTACHMENT A - DRAFT ORDINANCE NO. 752Page 1815 of 3559 Ordinance No. 752

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noticed, agendized, and conducted a public hearing on this matter on May 14, 2024; and WHEREAS, the Planning Commission considered all public comments received before and during the public hearing, the presentation by City staff, the relevant staff report, administrative record, and all other pertinent documents relating to the repeal of Ordinance No. 676; and
WHEREAS, after the close of such public hearing, the Planning Commission adopted Resolution No. 2024-14, attached hereto and incorporated by reference as Exhibit “C,” recommending the City Council repeal Ordinance No. 676 and terminate related DA No. 18-019C; and
WHEREAS, pursuant to state law and the CMC, the City Council duly noticed, agendized, and conducted a public hearing on this matter; and WHEREAS, the City Council considered all public comments received before and during the public hearing, the presentation by City staff, the relevant staff report, administrative record, and all other pertinent documents relating to the repeal of Ordinance No. 676; and
WHEREAS, after the close of such public hearing, the City Council introduced and adopted by first reading Ordinance No. 752, repealing Ordinance No. 676 and terminating related DA No. 18-019C.

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

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

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

CONCLUSIONS OF LAW
The City Council has reviewed and considered the Decision by the Hearing Officer (Exhibit “B”) issued on February 15, 2024, on this matter. For the reasons stated in the Decision, and as recommended by the Planning Commission (Exhibit “C”), the City Council adopts the Hearing Officer’s findings of fact and conclusions of law as its own and determines that Cuper Development, LLC is not in compliance with the terms and conditions of the Development Agreement No. 18-019C and finds that Cuper Development, LLC is in default of its contractual obligations set forth in said Development Agreement and has breached its Conditions of Approval for CCP No. 18-0019 by a showing of the preponderance of the evidence.

SECTION 3. TERMINATION OF DEVELOPMENT AGREEMENT
Pursuant to Article 19(d) of the Development Agreement, the City Council may ATTACHMENT A - DRAFT ORDINANCE NO. 752Page 1816 of 3559 Ordinance No. 752

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terminate Development Agreement No.18-019C in its entirety. For the reasons stated in the Decision, and as recommended by the Planning Commission, the City Council hereby adopts this Ordinance repealing Ordinance No. 676 terminating DA No. 18-019C in its entirety.

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

SECTION 5. CALIFORNIA ENVIRONMENTAL QUALITY ACT
The City Council has determined that this Ordinance is categorically exempt from the California Environmental Quality Act (“CEQA”) (Pub. Res. Code § 21000 et seq.) and CEQA Guidelines (Cal. Code Regs., tit. 14, § 21000 et seq.) pursuant to CEQA Guidelines Section 15321 (Class 21) because the repeal of Ordinance No. 676 and termination of DA No. 18-019C is an enforcement action to revoke an entitlement interest.

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

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Cudahy at the regular meeting of this ______ day of _____ 2024. ______________________________
Jose R. Gonzalez
Mayor
ATTEST:
____________________________
Richard Iglesias
City Clerk
ATTACHMENT A - DRAFT ORDINANCE NO. 752Page 1817 of 3559 Ordinance No. 752

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CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS:

CITY OF CUDAHY )
I, Richard Iglesias, City Clerk of the City of Cudahy, hereby certify that the foregoing Ordinance No. 752 was introduced for a first reading on the _____ day of ____ 2024 and approved for a second reading and adopted by said Council at its regular meeting held on the ______ day of ______ 2024 by the following vote, to-wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

Richard Iglesias
City Clerk
ATTACHMENT A - DRAFT ORDINANCE NO. 752Page 1818 of 3559 Ordinance No. 752

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EXHIBIT “A”
EVIDENCE SUBMITTED BY THE CITY (“ADMINISTRATIVE RECORD”) ATTACHMENT A - DRAFT ORDINANCE NO. 752Page 1819 of 3559 Ordinance No. 752

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EXHIBIT “B”

HEARING OFFICER DECISION AND ORDER
ATTACHMENT A - DRAFT ORDINANCE NO. 752Page 1820 of 3559 Ordinance No. 752

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EXHIBIT “C”

PLANNING COMMISSION RESOLUTION
ATTACHMENT A - DRAFT ORDINANCE NO. 752Page 1821 of 3559 ORDINANCE NO. 673

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

CUDAHY MUNICIPAL CODE TO PROHIBIT CANNABIS

RETAILERS/DISPENSARIES CITYWIDE AND TO

ESTABLISH REGULATIONS AND A DISCRETIONARY

REVIEW PROCESS FOR THE ALLOWANCE OF

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

DELIVERIES, MICROBUSINESS, AND LABORATORY

TESTING) IN A SPECIFIED OVERLAY ZONE THROUGH A

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

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

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ATTACHMENT B Page 1822 of 3559
diversion of marijuana from states where it is legal under state law in some form to other states; (4) preventing state-authorized marijuana activity from being used as a cover or pretext for the trafficking of other illegal drugs or other illegal activity; (5) preventing violence and the use of firearms in the cultivation and distribution of marijuana; (6) preventing drugged driving and the exacerbation of other adverse public health consequences associated with marijuana use; (7) preventing the growing of marijuana on public lands and the attendant public safety and environmental dangers posed by marijuana production on public lands; and (8) preventing marijuana possession or use on federal property;
WHEREAS, in September 2015, the California State Legislature enacted, and Governor Brown signed into law three bills - Assembly Bill 243, Assembly Bill 266, and Senate Bill 643 - which together comprise the Medical Marijuana Regulation and Safety Act (the "MMRSA"). The MMRSA created a comprehensive dual state licensing system for the cultivation, manufacture, retail, sale, transport, distribution, delivery, and testing of medical cannabis;
WHEREAS, on August 22, 2016, the City Council of the City of Cudahy (the "City Council" of the "City") adopted Interim Urgency Ordinance No. 656U to establish a temporary moratorium on medical "commercial cannabis activities," as defined under the MMRSA, for a period of 45 days and extended such moratorium for an additional period of 22 months and 15 days under Interim Urgency Ordinance No. 661, on September 26, 2016;
WHEREAS, the MMRSA was renamed the Medical Cannabis Regulation and Safety Act (the "MCRSA") under Senate Bill 837 in June 2016, which also made substantive changes to the applicable state laws, which affect the various state agencies involved in regulating cannabis businesses as well as potential licensees; WHEREAS, on November 8, 2016, the Control, Regulate, and Tax Adult Use of Marijuana Act ("AUMA") was approved California voters as Proposition 64 and became effective on November 9, 2016, pursuant to the California Constitution (Cal. Const., art.

II, § 10(a).). Proposition 64 legalized the nonmedical use of cannabis by persons 21 years of age and over, and the personal cultivation of up to six (6) cannabis plants. On November 14, 2016, the City Council adopted Urgency Ordinance No. 663 to prohibit outdoor personal marijuana cultivation and establish regulations and a permitting process for indoor personal marijuana cultivation;
WHEREAS, AUMA also created a state regulatory and licensing system j governing the commercial cultivation, testing, and distribution of nonmedical cannabis, and the manufacturing of nonmedical cannabis products. On January 9, 2017, Interim Urgency Ordinance No. 666 was adopted by the City Council to establish a temporary moratorium on nonmedical "commercial cannabis activities" for a period of 45 days and extended such moratorium for an additional period of 22 months and 15 days under Interim Urgency Ordinance No. 667, on February 27, 2017; Page2
ATTACHMENT B Page 1823 of 3559
\
I
)
WHEREAS, on June 27, 2017, Governor Brown signed the Legislature-approved Senate Bill 94. SB 94 combined elements of the MCRSA and AUMA to establish a streamlined singular regulatory and licensing structure for both medical and nonmedical cannabis activities given that there were discrepancies between the MCRSA and AUMA. The new consolidated provisions under SB 94 is now known as the Medicinal and Adult-Use Cannabis Regulation and Safety Act ("MAUCRSA") to be governed by the California Bureau of Cannabis Control. MAUCRSA refers to medical cannabis as "medicinal cannabis" and nonmedical/recreational cannabis as "adult-use cannabis"; WHEREAS, on June 27, 2017, the as part of an Economic Development Ad Hoc Committee presentation on revenue-generating opportunities, commercial cannabis regulations and strategies were offered to and discussed by the City Council; WHEREAS, the City seeks to establish an overlay zone in the City in which certain medicinal-only commercial cannabis activities can be conducted in accordance with MAUCRSA and the City's police power under Section 7 of Article XI of the California Constitution;
WHEREAS, it is the purpose and intent of the City to regulate medicinal cannabis in a manner that is consistent with the Cole Memo and promotes the health, safety, and general welfare of the residents and businesses within the City, while limiting any negative impacts;
WHEREAS, the City intends to be on the forefront of groundbreaking research, science, innovation, and development of treatment for symptoms and cures in the field of medicinal cannabis, as scientific research, studies, and data have established that medicinal cannabis can help patients with a vast array of medical conditions; WHEREAS, the City desires to reduce the illegal market for cannabis while minimizing the chances of social harm and creating jobs and revenue for the City; and WHEREAS, nothing in this Ordinance shall be construed to allow persons to engage in conduct that violates the law, endangers others, causes a public nuisance, allows the illegal use or diversion of cannabis, or allows any activity relating to cannabis that is otherwise illegal under California state law, as amended.

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

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

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

Chapter 20.120 - Commercial Cannabis Overlay Zone.

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ATTACHMENT B Page 1824 of 3559

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

Page4
ATTACHMENT B Page 1825 of 3559
l

20.120.020 Prohibitions.

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

20.120.030 Overlay zone.

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

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

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

20.120.040 Particular restrictions for Atlantic Avenue.

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

20.120.050 Indoor Horticulture.

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

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

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

20.120.070 Temporary permits for local events - rights reserved.

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

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

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ATTACHMENT B Page 1826 of 3559
(p) Schools, public and private, excluding schools providing instruction in kindergarten or any grades 1 through 12 located within 600 feet of a residential zone located within the Commercial Cannabis Overlay Zone illustrated in Exhibit "A" to City Council Ordinance No. 673, unless otherwise mandated under state or federal law.

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

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

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

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

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ATTACHMENT B Page 1827 of 3559
mandated under state or federal law.

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

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

Chapter 5.20 - Cannabis Permitting and Regulation.

5.20.010 Section Intent and Purposes.

The intent and purpose of this Chapter is to regulate Commercial Cannabis Activity (as defined below) in accordance with State Law (as defined below) to promote the health, safety, morals, and general welfare of the residents and businesses within the City. The City is authorized to regulate this activity pursuant to State Law, including, but not limited to, MAUCRSA. The goals of this regulation for Commercial Cannabis Activity include:
(a) To comply with the goals and guidance set forth in the Cole Memo. (b) To minimize the size of the illegal market for Cannabis in the City and the surrounding regions.
(c) To create jobs, revenue, and economic growth for the City and its residents. (d) To enable law enforcement and regulators to have sufficient rights to inspect and audit Cannabis Permittees and take expeditious action against Cannabis Permittees who violate the requirements of this Chapter. (e) To minimize social harms which may arise from Cannabis including youth consumption or intoxicated driving.
(f) To regulate the manner of advertising and location of Cannabis Permittees such that public nuisance is minimized.

5.20.020 Definitions.

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

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

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

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(n) "Day Care Center" means any child day care facility other than a family day care home, and includes infant centers, preschools, extended day care facilities, and schoolage child care centers.
(o) "Development Agreement" means an agreement adopted pursuant to the Development Agreement Law (Gov. Code, § 65864 et seq.) and Cudahy Municipal Code Chapter 20.28 (Development Agreements), which provides agreed upon community benefits to the City.
(p) "Distribution" means the procurement, sale, and transport of cannabis and cannabis products between persons authorized to engage in permitted commercial cannabis activities pursuant to this Chapter. (q) "Distribution Permit" means, with respect to a Distribution Permittee, a Cannabis Permit for Distribution in accordance with the terms and conditions of this Chapter and the Development Agreement for the applicable Cannabis Permit issued to such Distribution Permittee.
(r) "Distribution Permittee" means a Person that has been issued a Distribution Permit by the City pursuant to the terms and conditions of this Chapter. (s) "Fully Enclosed and Secure Structure" means a space within a building or other structure which has a complete roof enclosure supported by connecting walls extending from the ground to the roof, which is reasonably secure against unauthorized entry, provides complete visual screening or is behind fencing or other features providing complete visual screening, and which is accessible only through one or more lockable doors and is inaccessible to minors. (t) "Good Cause" for purposes of refusing or denying a Cannabis Permit, for revoking a Cannabis Permit, or for refusing or denying a Cannabis Permit renewal or reinstatement means: (i) the Applicant has not obtained approval by the City Council of a Development Agreement setting forth the general terms for the operation of commercial cannabis activity or breaches a term or terms of a Development Agreement approved by the City Council pursuant to this Chapter; (ii) The Applicant or Cannabis Permittee has violated the terms, conditions, or provisions of this Chapter, of state law, of any regulations or rules promulgated pursuant to state law or this Chapter, any applicable local rules, regulations, or conditions placed upon its state license or Cannabis Permit; (iii) the licensed Premises have been operated in a manner that adversely affects the public health, safety, or welfare or the safety of the immediate neighborhood in which the Commercial Cannabis Activity is being conducted; (iv) the Applicant or Cannabis Permittee has knowingly made false statements, misrepresentations, or material omissions on an application form, renewal form, or other document submitted to the City; (v) the Applicant or Cannabis Permittee's criminal history does not indicate that the Applicant or Cannabis Permittee is of Good Moral Character or the Applicant or Cannabis Permittee has been convicted of an offense that is substantially related to the qualifications, functions, or duties of the Applicant or Cannabis Permittee. However, if the City has issued a Cannabis Permit to the Applicant or Cannabis Permittee, the City shall not consider any

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criminal history of the Applicant or Cannabis Permittee that was disclosed to or discovered by the City prior to issuance of the Cannabis Permit and is confirmed by the Applicant or Cannabis Permittee. For any criminal history that was not disclosed to or discovered by the City prior to issuance of a Cannabis Permit, or that arose after the issuance of the Cannabis Permit, the City shall conduct a thorough review of the nature of the crime, conviction, circumstances, and evidence of rehabilitation of the Applicant or Cannabis Permittee, and shall evaluate the suitability of the Applicant or Cannabis Permittee based upon such review. In determining which offenses are substantially related to the qualifications, functions, or duties of the Applicant or Cannabis Permittee, the City shall consider factors set forth in Business and Professions Code Section 26057; (vi) the Applicant or Cannabis Permittee is employing or allowing to volunteer any person whose criminal history indicates that such person is not of Good Moral Character; (vii) the Applicant or Cannabis Permittee fails to allow inspection by City officials of the security recordings, activity logs, business records, or other accessible records pertaining to the activities conducted on the applicable Premises; or (viii) the Applicant or Cannabis Permittee allows for Physician Services to be conducted on the applicable Premises. (u) "Good Moral Character" means having a personal history that demonstrates the propensity to serve the public in a manner that reflects openness, honest, fairness, and respect for the law and rights and well-being of others. In determining Good Moral Character, the following standards shall apply: (i) a judgment of guilt in a criminal prosecution or a judgment in a civil action shall not be used, in and of itself, as proof of an individual's lack of Good Moral Character.

Such judgment, however, may be used as evidence in the determination and when so used, the individual shall be notified and shall be permitted to rebut the evidence by showing that, at the current time, he or she has the ability to, and is likely to serve the public, in a fair, honest, and open matter, that he or she is rehabilitated, and/or that the substance of the former offense is not substantially related to the applicable Commercial Cannabis Activity; and (ii) a prior conviction where the sentence, including any term of probation incarceration, or supervised release is completed for the possession of, possession for sale, sale, manufacture, transportation, or cultivation of a controlled substance, is not considered substantially related, and shall not be the sole ground for denial of a Cannabis Permit, except that any of the convictions set forth in Business and Professions Code Section 26057(b)(4), as may be amended, shall be deemed substantially related to applicable Commercial Cannabis Activity. (v) "Health and Safety Code" means the California Health and Safety Code, as amended from time to time.
(w) "Indoor" means within a Fully Enclosed and Secure Structure. (x) "Manufacture" or "Manufacturing" means to compound, blend, extract, infuse, or otherwise make or prepare a Cannabis Product from such blends, extractions, or infusions.

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

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

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

5.20.030 Commercial Cannabis Activity Prohibited.

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

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

20.28 (Development Agreements). No such activities shall be permitted without a Development Agreement within or outside of the boundaries of such overlay zone.

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

5.20.050 Business standards.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Cudahy City CouncilJuly 16, 2024

Cudahy City Council
July 16, 2024