Cudahy City Council
December 3, 2024

AGENDA

A REGULAR MEETING

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

TO THE CUDAHY DEVELOPMENT COMMISSION
Tuesday, December 3, 2024 – 6:30 P.M.

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

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

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

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

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

Council Chambers/Bedwell Hall
5240 Santa Ana Street
Cudahy, CA 90201
Teleconference Phone Number:
1 (669) 900-6833
Meeting ID: 892 3852 4975
https://us06web.zoom.us/j/89238524975

City of Cudahy
City Council and Successor Agency
Regular Meeting Agenda
December 3, 2024, at 6:30 P.M.

1. CALL TO ORDER

2. ROLL CALL
Council / Agency Member Fuentes
Council / Agency Member Gonzalez
Council / Agency Member Lomelí
Vice Mayor / Vice Chair Alcantar
Mayor / Chair Gonzalez

3. APPROVAL OF AGENDA

4. PLEDGE OF ALLEGIANCE

5. LAND ACKNOWLEDGMENT
We would like to acknowledge that the land we inhabit today was once known as Tovangaar, the home of the Gabrieleño-Tongva people. We show our respects to the Gabrieleño-Tongva people, as well as all Indigenous people, past, present, and future, and honor their labor as original caretakers of this land. We commit to uplifting the Gabrieleño-Tongva people, invite you to acknowledge the history, and join us in caring for this land.

6. PRESENTATIONS
A. Recognition to and from Wheels of Hope LA
B. Recognition to Erica Dominguez, Planning Commissioner C. Recognition to Speaker Emeritus Anthony Rendon
D. Proclamation - Purple Heart City
E. Proclamation - International Day of Persons with Disabilities

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

In person participants must submit one comment card if they wish to address the City Council. Only speakers that submit a comment card within the first 20 minutes of the meeting will be permitted to speak. Remote participants may provide public comment by clicking the hand icon on Zoom or pressing star (*) nine (9) on the telephone, if they wish to address the City Council. Members of the public are permitted to speak for three (3) minutes concerning items under the City Council’s jurisdiction, including items on the council agenda.)
(Any person who, without authority of law, willfully disturbs or breaks up a City Council meeting is guilty of a misdemeanor. (Pen. Code, § 403).)

City of Cudahy
City Council and Successor Agency
Regular Meeting Agenda
December 3, 2024, at 6:30 P.M.

8. CITY COUNCIL COMMENTS / REQUESTS FOR AGENDA ITEMS (Each Council Member is limited to three minutes.)
(This is the time for the City Council / Agency to comment on any topics related to “City Business,” including announcements, reflections on city / regional events, response to public comments, suggested discussion topics for future council meetings, general concerns about particular city matters, questions to the staff, and directives to the staff (subject to approval / consent of the City Council majority members present, regarding staff directives). Each Council / Agency Member will be allowed to speak for a period not to exceed three (3) minutes. Notwithstanding the foregoing, the City Council Members shall not use this comment period for serial discussions or debate between members on City business matters not properly agendized. The City Attorney shall be responsible for regulating this aspect of the proceeding.)

9. CITY MANAGER REPORT (information only)

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

MEETINGS

11. WAIVER OF FULL READING OF RESOLUTIONS AND ORDINANCES (Consideration to waive full text reading of all Resolutions and Ordinances by single motion made at the start of each meeting, subject to the ability of the City Council / Agency to read the full text of selected resolutions and ordinances when the item is addressed by subsequent motion.) (COUNCIL / AGENCY)
Recommendation: Approve the Waiver of Full Reading of Resolutions and Ordinances.

12. CONSENT CALENDAR
(Items under the Consent Calendar are considered routine and will be enacted by one motion, prior to the vote to approve the Consent Calendar, each Council Member shall have a maximum of three (3) minutes to comment on the Consent Calendar as a whole. There will be no separate discussion of these items unless a Council / Agency Member so requests specific item(s) be removed from the Consent Calendar for separate action. Items may only be considered as a separate action if either (1) a Council Member must recuse themselves due to a conflict of interest or (2) a Council Member has specific questions for City Staff. Items called for separate discussion will be heard as the next order of business.) A. Consideration to Review and Approve the Draft Minutes of October 15, 2024, and November 19, 2024, for the Regular Meeting of the City Council and the Joint Meeting of the City of Cudahy as Successor Agency and Housing Successor Agency to the Cudahy Development Commission (page 9)
Presented by the City Clerk

City of Cudahy
City Council and Successor Agency
Regular Meeting Agenda
December 3, 2024, at 6:30 P.M.

Recommendation: The City Council is requested to review and approve the City Council / Successor Agency Draft Minutes for October 15, 2024, and November 19, 2024.

B. Consideration to Approve Construction Contingency and Contract Change Order to the Contract Services Agreement with Elecnor-Belco Electric, for the Salt Lake Avenue Pedestrian Safety Improvement Project – CIP Project No. TRE-001 (page 27) Presented by the Public Works Director
Recommendation: The City Council is requested to approve 10% Construction Contingency in the amount of $20,018 and Contract Change Order (CCO) No. 1 in the amount of $28,000 to the existing Contract Services Agreement in the amount of $200,182 with Elecnor-Belco Electric, Inc., for the Salt Lake Avenue Pedestrian Safety Improvement Project, City Project No. TRE-001, funded by the Highway Safety Improvement Grant Program Cycle 7 (HSIP-7).

13. PUBLIC HEARING
A. A Public Hearing to Consider and Adopt Resolution No. 24-38 of the City of Cudahy City Council to Approving Changes to the Community Development Block Grant (“CDBG”) Fiscal Year 2024- 25 to Cancel CDBG Program 602616-24, Entitled, “Camp Commerce” and Reprogram this Project’s Unspent Balance in the amount of $10,000 and Unallocated Funds in the amount of $39,113 into Two (2) Upcoming FY 2024-25 CDBG Eligible Programs, Youth Services and Food Distribution (page 55)
Recommendation: City staff recommends the City Council take the following action(s):

1. Open the public hearing, receive public comment, and presentation from City staff; and

2. Adopt Resolution No. 24-38 approving the cancellation of the CDBG Program 602616-24, entitled, “Camp Commerce” and reprogram this Project’s Unspent Balance in the amount of $10,000 and Unallocated Funds in the amount of $39,113 into two (2) Upcoming FY 2024-25 CDBG Eligible Programs, Youth Services and Food Distribution; and

3. Authorize the City Manager, or his or her designee, to make adjustments to the CDBG project applications and CDBG
agreements, due to programmatic interpretations by the Los Angeles County Community Development Authority (“LACDA”).

B. A Public Hearing to Adopt Resolution No. 24-39, Establishing New Registration Fees for Rental Units Pursuant to Cudahy Municipal Code (“CMC”) Chapter 5.13, Rent Stabilization (page 67)

City of Cudahy
City Council and Successor Agency
Regular Meeting Agenda
December 3, 2024, at 6:30 P.M.

Recommendation: City staff is recommending the City Council take the following action(s):

1. Open the public hearing and receive public comment; and

2. Adopt Resolution No. 24-39 establishing an annual rental registration fee of $126.00 and rental unit exemption fee of $91.00, subject to late fees and annual consumer price index (“CPI”) adjustments, based on the recommendation of the RSO and TPO cost of services study.

14. BUSINESS SESSION
A. Republic Services Proposal for SB1383 Amendment Implementation and Compliance (page 169) Presented by the Assistant to the City Manager
Recommendation: The City Council is requested to select either Proposal 2 or Proposal 3 submitted by Republic Services for the implementation and compliance of SB1383.

B. Approval of Professional Services Agreement to Provide Design Phase Engineering Services for the Cudahy Citywide Signal Improvements – HSIP Cycle 11 Project – Project No. TRE-009 (page 189)
Presented by the Public Works Director
Recommendation: The City Council is requested to award a Professional Services Agreement (PSA) to Kimley-Horn and Associates, Inc. (Kimley-Horn) to provide design phase engineering services for the preparation of PS&E Plan, Specifications, and Estimates) for the Cudahy Citywide Signal Improvements – HSIP Cycle 11 Project – Project No. TRE-009 (Project), not to exceed $108,092.01.

C. Consideration to adopt Resolution No. 24-40 and Award a Contract Services Agreement to ByromDavey, Inc., a California Corporation, for Lugo Park Soccer Field Rehabilitation Project – CIP Project No. PRE-005 (page 351)
Presented by the Public Works Director
Recommendation: The City Council is requested to:

1. Adopt Resolution No. 24-40 appropriating $212,373 of Development Impact Fee Parks funding and $277,627 of Measure A funding, for a total amount of $490,000 amending the Lugo Park Soccer Field Rehabilitation Project (Project) – CIP Project No. PRE-005, project funding;

City of Cudahy
City Council and Successor Agency
Regular Meeting Agenda
December 3, 2024, at 6:30 P.M.

2. Approve Plans and Specifications for the Lugo Park Soccer Field Rehabilitation Project – CIP Project No. PRE-005;

3. Award a Contract Services Agreement to Byrom-Davey, Inc. for the Project in the amount of $972,958.20 for the Lugo Park Soccer Field Rehabilitation Project; and

4. Approve 10% construction contingency for unforeseen conditions in the amount of $97,296 for utilization by the Public Works Director or designee for potential Construction Change Orders (CCO) and 5% construction oversight in the amount of $48,600.00.

D. Consideration to Award a Contract Services Agreement to American Pride Builders Co., for the ADA Door Replacement Project Clara Park Community Center: 4835 Clara St, Cudahy CA 90201 – CIP Project No. CIF-007, CBDG Project Number: 602661-23 (page 753) Presented by the Public Works Director
Recommendation: The City Council is requested to:

1. Approve Plans and Specifications for the ADA Door Installation Project Clara Park Community Center: 4835 Clara St, Cudahy CA 90201 – CIP Project No. CIF-007, CDBG Project Number: 602661-23 (Project);

2. Award a Contract Services Agreement to American Pride Builders Co. for the Project in the amount of $ 137,500.00; and

3. Approve 10% construction contingency for unforeseen conditions in the amount of $13,750.00 for utilization by the Public Works Director or designee for potential Construction Change Orders (CCO) and 5% construction management oversight in the amount of $7,000.00.

E. Approval of Professional Services Agreement with Absolute International Security, Inc. (AIS) for Professional Security Guard Services (page 1037)
Presented by the Assistant to the City Manager
Recommendation: The City Council is requested to award a Professional Services Agreement (PSA) to Absolute International Security, Inc. (AIS) for professional security guard services in a not-to-exceed fiscal year sum of $118,000.

F. Adoption of Resolution No. 24-41, expressing the City of Cudahy’s commitment to ensuring access to safe and clean drinking water for all residents (page 1201)

City of Cudahy
City Council and Successor Agency
Regular Meeting Agenda
December 3, 2024, at 6:30 P.M.

Presented by the Assistant to the City Manager
Recommendation: The City Council is requested to adopt Resolution No. 24-41, expressing the City of Cudahy’s “City” commitment to ensuring access to safe and clean drinking water for all residents.

G. Immigration Support Information Initiative Presentation (page 1207) Presented by the Assistant to the City Manager
Recommendation: The City Council is requested to receive and file presentation on the development of the City of Cudahy’s Immigration Support Information Initiative to support the immigrant community, particularly the undocumented population.

H. Annual Emergency Preparedness Update (page 1217)
Presented by the Assistant to the City Manager
Recommendation: The City Council is requested receive and file the annual Emergency Preparedness Update, which highlights the City of Cudahy's ongoing efforts and initiatives related to emergency preparedness, including training, planning, and collaborations with regional and federal partners.

15. COUNCIL DISCUSSION - NONE

16. CLOSED SESSION - NONE

17. CLOSED SESSION ANNOUNCEMENT - NONE

18. ADJOURNMENT

City of Cudahy
City Council and Successor Agency
Regular Meeting Agenda
December 3, 2024, at 6:30 P.M.

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

Dated this 27th day of November 2024
Richard Iglesias
City Clerk

“Serving the People” "Sirviendo A La Comunidad"
Staff Report
12/03/2024 Page 1 of 2

STAFF REPORT
Date: December 3, 2024
To: Honorable Mayor/Chair and City Council/Agency Members From: Alfonso Noyola, City Manager/Executive Director
By: Richard Iglesias, City Clerk
Subject: Consideration to Review and Approve the Draft Minutes of October 15, 2024, and November 19, 2024, for the Regular Meeting of the City Council and the Joint Meeting of the City of Cudahy as Successor Agency and Housing Successor Agency to the Cudahy Development Commission

RECOMMENDATION
The City Council is requested to review and approve the City Council / Successor Agency Draft Minutes for October 15, 2024, and November 19, 2024.

BACKGROUND / ANALYSIS
On December 12, 2016, the City Council of the City of Cudahy adopted Resolution No. 16-38, approving the use of summary action minutes, meant to allow the City Clerk's Office to write the minutes in brief, assuring a record of Council's actions, due to having a recording of the full Council Meeting on the City’s website.

Historically
The Municipal Clerk is one of the oldest professions in government, dating back to 1272 A.D., originating in England. The record keeper then was called Remembrancer, an English official whose job was to remind the Lord Treasurer and Barons of Court, of business pending.

Years later, in the 1600s, when early colonists came to America, the office of the Clerk was one of the first offices to be established. Over the years, the City Clerk’s office has become the core for local government, and the liaison to the residents of the Community. The Municipal Item Number
12A

“Serving the People” "Sirviendo A La Comunidad"
Staff Report
12/03/2024 Page 2 of 2
Clerk (City Clerk) is the record keeper of a City’s recorded history.

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

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

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

CONCLUSION
The City Council is requested to approve the attached City Council / Agency Draft Minutes of the proceedings of October 15, 2024, and November 19, 2024.

STRATEGIC PLAN CORRELATION
No correlation to the strategic plan.

FINANCIAL IMPACT
No Financial Impact.

ATTACHMENT
A. October 15, 2024, Draft Minutes
B. November 19, 2024, Draft Minutes
C. Resolution No. 16-38, approving the City Clerk’s use of Summary Action Minutes as the Official Record of the City Council proceedings.

City Council/Successor Agency Minutes of 10/15/2024 Page 1 of 7

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

HOUSING SUCCESSOR AGENCY TO THE CUDAHY

DEVELOPMENT COMMISSION JOINT MEETING
October 15, 2024, 6:30 P.M.

1. CALL TO ORDER
Mayor / Chair Gonzalez called the meeting to order at 6:31 p.m.

2. ROLL CALL
PRESENT: Council / Agency Member Martin Fuentes
Council / Agency Member Cynthia Gonzalez
Council / Agency Member Daisy Lomelí
Vice Mayor / Vice Chair Elizabeth Alcantar
Mayor / Chair Jose R. Gonzalez
ABSENT: NONE
ALSO PRESENT: City Manager, Alfonso Noyola, Assistant City Manager/Community Development Director, Juan Arauz, City Attorney, Stephanie Arechiga, City Clerk, Richard Iglesias, Assistant City Clerk, Estefania Zamora, Finance Director, Joshua Calhoun, Community Services Director, Brenda Rodriguez, Interim Public Works Director, Ron Bow, Building Official, Raul Diaz, Assistant to the City Manager, John Peraza, Executive Assistant to the City Manager, Janet Andrade, and Community Preservation Manager, Raul Mazariegos.

3. APPROVAL OF AGENDA
Motion: Vice Mayor Alcantar motioned to agenda as is, seconded by Council Member C.

Gonzalez. Motion passed 5-0 by the following roll call vote:

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

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

Attachment A Page 11 of 1219
City Council/Successor Agency Minutes of 10/15/2024 Page 2 of 7

5. LAND ACKNOWLEDGEMENT
The Land Acknowledgment was led by Council Member Lomelí.

We would like to acknowledge that the land we inhabit today was once known as Tovangaar, the home of the Gabrieleño-Tongva people. We show our respects to the Gabrieleño-Tongva people, as well as all Indigenous people, past, present, and future, and honor their labor as original caretakers of this land. We commit to uplifting the Gabrieleño-Tongva people, invite you to acknowledge the history, and join us in caring for this land.

6. PRESENTATIONS
A. East Los Angeles County Sheriff’s Annual Update
B. Strategic Plan Update
C. Nunez & Nunez Presentation
At 7:23 p.m., Mayor J. Gonzalez called for a recess due to technical issues.

At 7:33 p.m., Mayor J. Gonzalez resumed the meeting.

7. PUBLIC COMMENTS
Carlos asked for police to patrol the streets, mentioned he lives in a neighborhood where people sell drugs and there are gang members, he believes the function of the police is not only to stop criminals but to prevent, gave an example of him removing graffiti and asked for the City to remove graffiti.

Ricardo Peralta mentioned that the authorities should be more careful because where he lives, there are people putting graffiti on the trash cans, the streets are dirty, and where he lives it is too dark, and stole his tools worth $300.

Patricia commented on a street light being out where she lives, also on the Corner of Atlantic and Cecilia where a liquor store is located; people hang out there, but the owner says nothing; the street is dirty, mentioned that while walking her dog she sees people doing inappropriate things, cars parked on the street without a permit, there is nowhere to park, there are no street sweeping signs on the south and north side indicating that vehicles will be cited if they do not move their car.

8. CITY COUNCIL COMMENTS / REQUESTS FOR AGENDA ITEMS
Council Member Fuentes shared he participated in the Hispanic Heritage Festival/State of the City at Cudahy Park, and a going-away celebration for former Assembly Member Anthony Rendon.

City Council/Successor Agency Minutes of 10/15/2024 Page 3 of 7 Council Member C. Gonzalez shared her participation in the Hispanic Heritage event and the Walk to School Day, highlighted Jaime Escalante School for their scores in the state standardized test, mentioned an invitation to the staff to get recognized by the City for their work, and they can do a presentation of what they offer the community as an elementary school.

Council Member Lomelí participated in the Walk to School Day event, asked if we could table at the parent conference as done previously, mentioned that she attended the Hispanic Heritage event, Council on American-Islamic Relations (CAIR) 28th Annual Gala, thanked staff for working on the divestment policy, also for putting out a press release on Doula Care, and the partnership with Birth Workers of Color Collective, thanked the Public Works team, attended the East Los Angeles College (ELAC) President Circle luncheon, highlighted that they are open to offering child care education certificates in the community, asked staff to set up a meeting, lastly stated that she hopes that our community can come out to our Halloween and Dia de los Muertos events.

Vice Mayor Alcantar participated in the farewell reception for Speaker Anthony Rendon, requested for he to be recognized at a future meeting, shared her participated in the Walk to School Day at Park Avenue Elementary, asked that next year, we work with Republic to make sure bulky items are cleaned up early before, mentioned her participation in CAIR-LA's Annual Gala, sat on a panel titled Building an Informed Latina Electorate, highlighted the work that is happening with City Attorney, City Administration, and City Council, lastly, stated that it would be worth working with ELAC for priority registration for Cudahy residents.

Mayor J. Gonzalez shared his participation at the State of City, thanked everyone who was able to attend, mentioned having a great Ad Hoc Water Committee meeting yesterday, mentioned having an update in a couple of weeks, and thanked the team for working on that.

9. CITY MANAGER REPORT (information only)

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

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

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

City Council/Successor Agency Minutes of 10/15/2024 Page 4 of 7

12. CONSENT CALENDAR
A. Consideration to Review and Approve the Draft Minutes of August 20, 2024, and October 1, 2024, for the Regular Meeting of the City Council and the Joint Meeting of the City of Cudahy as Successor Agency and Housing Successor Agency to the Cudahy Development Commission
Presented by the City Clerk
Recommendation: The City Council is requested to review and approve the City Council / Successor Agency Draft Minutes for August 20, 2024, and October 1, 2024.

B. Approval of the Local Agency Investment Fund (LAIF) for the Month of September 2024
Presented by the Finance Director
Recommendation: The City Council is requested to approve the Local Agency Investment Fund (LAIF) Report for the month of September 2024 in the amount of $12,009,745.74.

C. Approval of the City Demands and Payroll Including Statement of Investment for the Month of September 2024
Presented by the Finance Director
Recommendation: The City Council is requested to approve the Demands and Payroll in the amount of $3,023,210.74 including the Statement of Investments for the month of September 2024.

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

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

13. PUBLIC HEARING – NONE

14. BUSINESS SESSION
Mayor Gonzalez announced that the Council was asked to move item 14C up before 14A.

City Council/Successor Agency Minutes of 10/15/2024 Page 5 of 7 Motion: Council Member C. Gonzalez motioned to move item 14C before 14A, seconded by Council Member Lomelí. Motion passed 5-0 by the following roll call vote:

AYES: Fuentes, C. Gonzalez, Lomelí, Alcantar, and J. Gonzalez NOES: None
ABSENT: None
ABSTAIN: None
C. Update on Discussions between the City of Cudahy and the Los Angeles County Department of Animal Care and Control regarding Municipal Services Agreement to Provide General Animal Care and Control Services
Presented by the Community Preservation Manager
Recommendation: The City Council is requested to: Hear staff presentation summarizing discussions and correspondences between the City of Cudahy (“City”) and Los Angeles County Department of Animal Care and Control (“County”).Provide staff feedback and direction on whether to: Execute the County Municipal Services Agreement (“Agreement”), accepting all terms and conditions, to provide the City general animal care and control services, or; Continue to negotiate and hold discussions with the County to address unresolved issues as summarized in this report.

Motion: Council Member Fuentes motioned to continue to negotiate and hold discussions with the County to address unresolved issues as summarized in this report, seconded by Mayor Gonzalez. Motion passed 5-0 by the following roll call vote:

AYES: Fuentes, C. Gonzalez, Lomelí, Alcantar, and J. Gonzalez NOES: None
ABSENT: None
ABSTAIN: None
A. Approval of Professional Services Agreement for Comprehensive Fee Study Services Presented by the Assistant to the Finance Director
Recommendation: The City Council is requested to rescind prior approval and direction of a Comprehensive Fee Study Services with Willdan Financial Services (“Willdan”) and approve a Professional Services Agreement (PSA) with Willdan to provide Comprehensive Fee Study Services, with an updated proposal, with a Not to exceed amount of $27,700.

Motion: Vice Mayor Alcantar motioned to rescind prior approval and direction of a Comprehensive Fee Study Services with Willdan Financial Services (“Willdan”) and approve a Professional Services Agreement (PSA) with Willdan to provide comprehensive fee study services, with an updated proposal, with a Not to exceed amount of $27,700., seconded by Council Member C. Gonzalez. Motion passed 4-0-1 by the following roll call vote:

City Council/Successor Agency Minutes of 10/15/2024 Page 6 of 7 AYES: Fuentes, C. Gonzalez, Lomelí, Alcantar, and J. Gonzalez NOES: None
ABSENT: None
ABSTAIN: None
B. Request for Direction on Installation of Holiday Decorations and Lighting Presented by the Interim Public Works Director
Recommendation: The City Council is requested to provide direction on the preferred service provider to be awarded a professional service agreement for holiday decorations and lighting.

Motion: Vice Mayor Alcantar motioned to move forward with Bright Life Designs, seconded by Mayor Gonzalez. Motion passed 5-0 by the following roll call vote:

AYES: Fuentes, C. Gonzalez, Lomelí, Alcantar, and J. Gonzalez NOES: None
ABSENT: None
ABSTAIN: None
D. Approval of Professional Services Agreement for Remote and On-site Translation Services
Presented by the City Clerk
Recommendation: It is recommended that the City Council award a Professional Services Agreement (PSA) to Language Network, Inc., (Language Network) to provide remote and On-Site Spanish Translation Services for a one-year term, with an option for two (2) one-year extension terms, with the total services not to exceed $42,000 annually.

Motion: Council Member Lomelí motioned to award a Professional Services Agreement to Language Network, Inc., to provide remote and On-Site Spanish Translation Services for a one-year term, with an option for two (2) one-year extension terms, with the total services not to exceed $42,000 annually, seconded by Mayor Gonzalez. Motion passed 5-0 by the following roll call vote:

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

15. COUNCIL DISCUSSION – NONE

16. CLOSED SESSION – NONE

City Council/Successor Agency Minutes of 10/15/2024 Page 7 of 7

17. CLOSED SESSION ANNOUNCEMENT – NONE

18. ADJOURNMENT
The City Council / Agency meeting adjourned at 9:38 p.m.

Jose R. Gonzalez
Mayor
ATTEST:

Richard Iglesias
City Clerk

City Council/Successor Agency Minutes of 11/19/2024 Page 1 of 7

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

HOUSING SUCCESSOR AGENCY TO THE CUDAHY

DEVELOPMENT COMMISSION JOINT MEETING
November 19, 2024, 6:30 P.M.

1. CALL TO ORDER
Mayor / Chair Gonzalez called the meeting to order at 6:34 p.m.

2. ROLL CALL
PRESENT: Council / Agency Member Cynthia Gonzalez
Council / Agency Member Daisy Lomelí
Vice Mayor / Vice Chair Elizabeth Alcantar
Mayor / Chair Jose R. Gonzalez
ABSENT: Council / Agency Member Martin Fuentes
ALSO PRESENT: City Manager, Alfonso Noyola, Assistant City Manager/Community Development Director, Juan Arauz, City Attorney, Stephanie Arechiga, City Clerk, Richard Iglesias, Assistant City Clerk, Estefania Zamora, Finance Director, Joshua Calhoun, Community Services Director, Brenda Rodriguez, Interim Public Works Director, Raul Diaz, Assistant to the City Manager, John Peraza, Executive Assistant to the City Manager, Janet Andrade, and Community Preservation Manager, Raul Mazariegos.

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

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

4. PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by Mayor J. Gonzalez.

5. LAND ACKNOWLEDGEMENT
Attachment B Page 18 of 1219
City Council/Successor Agency Minutes of 11/19/2024 Page 2 of 7 The Land Acknowledgment was led by Council Member Lomelí.

We would like to acknowledge that the land we inhabit today was once known as Tovangaar, the home of the Gabrieleño-Tongva people. We show our respects to the Gabrieleño-Tongva people, as well as all Indigenous people, past, present, and future, and honor their labor as original caretakers of this land. We commit to uplifting the Gabrieleño-Tongva people, invite you to acknowledge the history, and join us in caring for this land.

6. PRESENTATIONS
A. County of Los Angeles Fire Department
B. American Red Cross

7. PUBLIC COMMENTS
Carlos thanked the Council for replacing the street lights, yet all were replaced except for one in front of where he lives on Cecilia; he commented on a person with mental health issues who needs a social worker or someone from the City to help him, asked if they can create an annual prize for the community for those houses that are kept clean and taken care Of.

Edwin Gonzalez commented on the City's choice of who will provide public safety to the community, stating that contracting with the Bell Police Department (PD) will not make you safer, mentioning that the Council has the right to explore other options, Cudahy will become safer if the standard of living improves, vagrancy is reduced, advancement of economic development is fulfilled, Bell not being sustainable, Cudahy will face challenges, the main point that all law enforcement agencies collaborate effectively, and the root of the problem being a political one.

Viridiana Placido suggested more public safety around Ellen Ochoa School, people not respecting the drop-off line, mentioned seeing something similar in Jaime Escalante where they put poles in the middle of the street blocking people from making a U-turn, asked if something can be done about that, possibly patrol more during drop off and pick up for more safety.

Patricia asked for a streetlight and speed bump commented that cars drive too fast and are not moved 24 hours a day.

8. CITY COUNCIL COMMENTS / REQUESTS FOR AGENDA ITEMS
Council Member C. Gonzalez share her gratefulness for all the staff putting together all the different events, highlighted I Love South East Los Angeles (SELA) for hosting Our Little Ballot, expressed that she is disappointed we weren't able to get the workshops on domestic violence awareness going in October, mentioned figuring it out, possibly taking

City Council/Successor Agency Minutes of 11/19/2024 Page 3 of 7 the next 12 months to put one or two together; also, the work with Scholar Match and elevating the partnership more formally has not happened, mentioned probably gearing up for the SELA send-off and it would be nice to have a more formal partnership and connecting some students who participate, lastly, asked for an update on the City Manager's report regarding the Neighborhood Watch sessions, the outcome of those sessions.

Council Member Lomelí thanked the Parks and Recreation Department for their work, mentioned more classes with YMCA were approved, LA Hot Wheel tournament, asked to acknowledge them at a future Council meeting, thanked everyone who participated in the mock election, and everyone who came out to vote, tasked staff with preparing a report or presentation for the next Council meeting or the one after, on the impact of some of the decisions that are going to be made at the federal level, how they can impact our community, include a list in the report of organizations that we can partner with.

Vice Mayor Alcantar mentioned was not able to attend the Halloween event and Hot Wheels tournament for the first time in six years, participated in the Dia de Los Muertos event, mentioned that Carlos (public speaker) was the inspiration for her to drive every single block of the City to capture all the streetlights that were out, also mentioned requesting a meeting with Sheriff Luna through the City Manager to address serious concerns around public safety, requested a partnership with Soledad Enrichment Action to do preventative work, and to develop a rapid response plan when it comes to immigrant community members.

Mayor J. Gonzalez commented on a Water Utility Ad Hoc committee meeting that a resolution would be coming to the Council at the next meeting with some recommendations to help ensure the accountability of our water utilities in the City, mentioned seeing some progress, collaboration, and transparency from the water utilities.

9. CITY MANAGER REPORT (information only)

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

11. WAIVER OF FULL READING OF RESOLUTIONS AND ORDINANCES Motion: Council Member Lomelí motioned to waive full reading of resolutions and ordinances, seconded by Council Member C. Gonzalez. Motion passed 4-0-1 by the following roll call vote:

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

City Council/Successor Agency Minutes of 11/19/2024 Page 4 of 7

12. CONSENT CALENDAR
A. Consideration to Review and Approve the Draft Minutes of October 29, 2024, for the Special Meeting of the City Council and the Joint Meeting of the City of Cudahy as Successor Agency and Housing Successor Agency to the Cudahy Development Commission
Presented by the City Clerk
Recommendation: The City Council is requested to review and approve the City Council / Successor Agency Draft Minutes for October 29, 2024.

B. Consideration to Adopt Resolution No. 24-36 Amending the City’s Conflict of Interest Code and Repealing Resolution No. 22-39 In Accordance with the Political Reform Act
Presented by the City Clerk
Recommendation: The City Council is requested to adopt Resolution No. 24-36 amending the City’s Conflict of Interest Code (“COI”) and repealing Resolution No. 22-67 in accordance with the Political Reform Act.

C. Approval of the Local Agency Investment Fund (LAIF) for the Month of October 2024 Presented by the Finance Director
Recommendation: The City Council is requested to approve the Local Agency Investment Fund (LAIF) Report for the month of October 2024 in the amount of $11,156,151.16.

D. Approval of the City Demands and Payroll Including Statement of Investment for the Month of October 2024
Presented by the Finance Director
Recommendation: The City Council is requested to approve the Demands and Payroll in the amount of $2,197,219.69 including the Statement of Investments for the month of October 2024.

Motion: Vice Mayor Alcantar motioned to approve Consent Calendar items, seconded by Council Member C. Gonzalez. Motion passed 4-0-1 by the following roll call vote:

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

City Council/Successor Agency Minutes of 11/19/2024 Page 5 of 7

13. PUBLIC HEARING – NONE

14. BUSINESS SESSION
A. Republic Services Proposal for SB1383 Amendment Implementation and Compliance
Presented by the Assistant to the City Manager
Recommendation: The City Council is requested to select either Proposal 2 or Proposal 3 submitted by Republic Services for the implementation and compliance of SB1383.

Motion: Council Member C. Gonzalez motioned to continue this item to the December 3, 2024, Council Meeting, seconded by Council Member Lomelí. Motion passed 4-0-1 by the following roll call vote:

AYES: C. Gonzalez, Lomelí, Alcantar, and J. Gonzalez
NOES: None
ABSENT: Fuentes
ABSTAIN: None
B. Approval of Professional Services Agreement with Transtech Engineers, Inc. for OnCall Engineering Services Presented by the Assistant to the City Manager
Recommendation: The City Council is requested to approve a Professional Services Agreement (PSA) with Transtech Engineers, Inc. for On-Call Engineering Services in a not-to-exceed fiscal year sum of $750,000.

Motion: Vice Mayor Alcantar motioned to approve a Professional Services Agreement (PSA) with Transtech Engineers, Inc. for On-Call Engineering Services in a not-to-exceed fiscal year sum of $750,000, seconded by Council Member Lomelí. Motion passed 4-0-1 by the following roll call vote:

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

City Council/Successor Agency Minutes of 11/19/2024 Page 6 of 7 C. Update on Discussions Between the City of Cudahy and Los Angeles County Department of Animal Care and Control regarding Municipal Services Agreement to Provide General Animal Care and Control Services
Presented by the Assistant City Manager/Community Development Director Recommendation: The City Council is requested to Hear staff’s presentation summarizing discussions and communications between the City of Cudahy (“City”) and Los Angeles County Department of Animal Care and Control (“County”); and Adopt Resolution No. 24-37, approving the execution of the County Municipal Services Agreement (“Agreement”), accepting all terms and conditions, to provide the City general animal care and control services, or; Continue to negotiate and hold discussions with the County to address unresolved issues as summarized in this report, causing a lapse in services as the County will no longer provide services without an executed contract as of December 1, 2024.

Motion: Vice Mayor Alcantar motioned to adopt Resolution No. 24-37, approving the execution of the County Municipal Services Agreement (“Agreement”), accepting all terms and conditions, to provide the City general animal care and control services, seconded by Mayor J. Gonzalez. Motion passed 4-0-1 by the following roll call vote:

AYES: C. Gonzalez, Lomelí, Alcantar, and J. Gonzalez
NOES: None
ABSENT: Fuentes
ABSTAIN: None
D. Discussion and Potential Adoption of Ordinance No. 757 Amending Section 3.04.080 (Sufficient Money in Treasury) of Chapter 3.04 (City Funds and Records) of Title 3 (Revenue and Finance) of the Cudahy Municipal Code
Presented by the City Attorney
Recommendation: The City Council is recommended to discuss and potentially adopt a version of Ordinance No. 757 amending Section 3.04.080 (Sufficient Money in Treasury) of Chapter 3.04 (City Funds and Records) of Title 3 (Revenue and Finance) of the Cudahy Municipal Code.

Motion: Vice Mayor Alcantar motioned to adopt the new version prepared by the financial advisor of Ordinance No. 757 amending Section 3.04.080 (Sufficient Money in Treasury) of Chapter 3.04 (City Funds and Records) of Title 3 (Revenue and Finance) of the Cudahy Municipal Code, seconded by Council Member C. Gonzalez. Motion passed 4-0-1 by the following roll call vote:

City Council/Successor Agency Minutes of 11/19/2024 Page 7 of 7 AYES: C. Gonzalez, Lomelí, Alcantar, and J. Gonzalez
NOES: None
ABSENT: Fuentes
ABSTAIN: None

15. COUNCIL DISCUSSION – NONE
At 7:45 p.m., City Attorney, Stephanie Arechiga recessed to closed session.

16. CLOSED SESSION
A. Closed Session Pursuant to Government Code Section 54957(b) – Public Employee Performance Evaluation
Title of Employee: City Clerk

Closed Session Pursuant to Government Code Section 54957.6 – Conference with Labor Negotiator
City’s Designated Representative: Stephanie Arechiga, City Attorney Unrepresented Employee: City Clerk
At 8:30 p.m., Mayor J. Gonzalez, reconvene to open session.

17. CLOSED SESSION ANNOUNCEMENT
City Attorney Stephanie Arechiga announced all four council members were present, direction was given, and the Council is prepared to offer a one-step increase for a yearly amount of $6,060 to the City Clerk.

18. ADJOURNMENT
The City Council / Agency meeting adjourned at 8:31 p.m.

Jose R. Gonzalez
Mayor
ATTEST:

Richard Iglesias
City Clerk

Attachment
C

“Serving The People” "Sirviendo A La Comunidad"
Staff Report
12/03/2024 Page 1 of 3

STAFF REPORT
Date: December 3, 2024
To: Honorable Mayor/Chair and City Council/Agency Members From: Alfonso Noyola, City Manager
By: Raul Diaz, Public Works Director
Subject: Consideration to Approve Construction Contingency and Contract Change Order to the Contract Services Agreement with Elecnor-Belco Electric, for the Salt Lake Avenue Pedestrian Safety Improvement Project – CIP Project No. TRE-001

RECOMMENDATION
The City Council is requested to approve 10% Construction Contingency in the amount of $20,018 and Contract Change Order (CCO) No. 1 in the amount of $28,000 to the existing Contract Services Agreement in the amount of $200,182 with Elecnor-Belco Electric, Inc., for the Salt Lake Avenue Pedestrian Safety Improvement Project, City Project No. TRE-001, funded by the Highway Safety Improvement Grant Program Cycle 7 (HSIP-7).

BACKGROUND

1. On June 6, 2023, Cudahy City Council approved the City Budget for Fiscal Year 2023-24.

2. On November 9, 2023, the Engineering Division of the Public Works Department, in coordination with City Clerk’s office, issued a Notice Inviting Bids to contractors to procure construction services for the aforementioned project. The project was properly advertised on November 9, 2023, and November 16, 2023, in the newspaper.

3. On December 6, 2023, three contractors submitted bids for the Project. The Bids were evaluated based on the established criteria identified in the Bid documents and Elecnor-Belco Electric, Inc. (Elecnor-Belco), was the only responsive and responsible bidder with a submitted bid proposal in the amount of $200,182.

4. On March 5, 2024, the City Council approved the Contract Services Agreement (“Agreement”) between the City of Cudahy and Elecnor-Belco, for the Salt Lake Avenue Improvements Project (HSIP-7 Project).

Item Number
12B

“Serving The People” "Sirviendo A La Comunidad"
Staff Report
12/03/2024 Page 2 of 3

ANALYSIS
As part of the March 5, 2024, City Council Agenda, City staff included item 12B recommending that the City Council approve the Contract Services Agreement between the City of Cudahy and Elecnor-Belco (Contractor), for the Salt Lake Avenue Improvements Project. The City Council unanimously approved the Agreement.

The Contractor was issued a Notice to Proceed on September 20th with an effective date of November 12, 2024. As such, the contractor has been scheduling construction to start after all long lead time material have been scheduled for delivery. The Contractor also discovered a discrepancy with the material quantity between the bid schedule and project plans with one additional advanced Stop Ahead flashing beacon and post.

After further review by staff and the project management team, staff supports the intent of the project design plans to install the advanced Stop Ahead flashing beacon and post.

Staff also noted that when the City Council awarded the construction contract to Elecnor-Belco, there was no construction contingency approved for unforeseen conditions.

Both of the elements noted lead to staff’s request for City Council’s consideration to approve the additional construction funding associated with unit price of the advanced Stop Ahead flashing beacon sign and post at a cost of $28,000 as well as 10% construction contingency in the amount of $20,018 thereby increasing the project’s construction budget, approving CCO No. 1 and providing a contingency fund for potential change orders based on unforeseen conditions.

The Contractor will be starting construction this week and completing it before the end of calendar year 2024.

CONCLUSION
City Staff recommends approving Construction Change Orders (CCO) No. 1 in the amount of $28,000 to the construction contract with Elecnor-Belco for the Salt Lake Avenue Improvement Project and authorizing a 10% construction contingency in the amount of $20,018 for utilization by the Public Works Director or designee for potential change orders.

FINANCIAL IMPACT
The project isfunded by the Highway Safety Improvement Grant Program Cycle 7 (HSIP-7) funding at 90% ($259,884) and City matching funds at 10% in the amount of $28,876 for a total project budget of $288,760. The City’s allocated $36,320 of City Measure R funding in the CIP budget, surpassing the minimum 10% requirement matching funds.

With the additional funding request and if all the contingency funds are utilized, staff will be working with Caltrans to request the additional HSIP funding, which Caltrans has granted on previous HSIP projects, in the amount of $21,405 and no additional City funding.

“Serving The People” "Sirviendo A La Comunidad"
Staff Report
12/03/2024 Page 3 of 3

ATTACHMENTS
A. Contract Services Agreement with Elecnor-Belco Electric

CITY OF CUDAHY

PUBLIC WORKS CONTRACT
CUDAHY HSIP CYCLE 7

SALT LAKE AVENUE IMPROVEMENTS
Federal Project No: HSIPL-5359(012)
City Project No: 235-7104-6725
This is a Federally Funded Project
City Contract No.

THIS AGREEMENT "Agreement" is made and entered into this 6 day of February 2O24, by and between the CITY OF CUDAHY, a Municipal Corporation located in the County of Los Angeles, State of California hereinafter called CITY, and Elecnor Belco Electric, lnc., [a corporation/partnership/limited liability company corporation], located at 14320 Albers Way, Chino, CA 91710 hereinafter called CONTRACTOR, collectively referred to as the Parties.

RECITALS
CITY, by its Notice lnviting Bids, duly advertised for written bids to be submitted on or before 3 PM, December 6,2O23, for the following:

CUDAHY HSIP CYCTE 7

SALT LAKE AVENUE IMPROVEMENTS
Federal Project No: HSIPL-5369(012)
CiW Project No: 235-7104-6725
This is a Federally Funded Project
in the City of CUDAHY, California, hereinafter called PROJECT At 3 PM on said date, in the CUDAHY Council Chambers, said bids were duly opened At its regular meeting held on FEBRUARY 6, 2024, the CITY Council duly accepted the bid of CONTRACTOR for said PROJECT as being the lowest reasonable bid received and directed that a written contract be entered into with CONTRACTOR.

NOW, THEREFORE, in consideration of the promises and of the mutual covenants and agreements herein contained, said parties do hereby agree as follows:

ARTICLE I - CONTRACT DOCUMENTS
Page: APPENDIX A.1
Attachment A Page 30 of 1219
a
The CONTRACT DOCUMENTS for the PROJECT shall consist of:
document titled:

CONTRACT DOCUMENTS PLANS AND SPECIFICATIONS
for
CUDAHY HSIP CYCLE 7

SALT LAKE AVENUE IMPROVEMENTS
Federal Project No: HSIPL-5359(012)
City Project No: 235-7104-6725
This is a Federally Funded Project
o CONTRACTOR'sProposal
o Required Federal-Aid Contract Language (Form FHWA-72731 r Federal Labor Standard Provisions
o Current Federal DOL Wage Decision
o Federal EEO and Affirmative Action Requirements
o and all referenced specifications, details, standard drawings, and appendices, together with this contract and all required bonds, insurance certificates, permits, notices and declarations, affidavits, and also including any and all addenda or supplemental agreements clarifying, amending, or extending the work contemplated as may be required to insure its completion in an acceptable manner.

All of the above-mentioned documents are intended to complement the other documents so that any work called for in one, and not mentioned in the others, or vice versa, is to be executed the same as if mentioned in all of said documents. The document comprising the complete contract are hereinafter referred to as the CONTRACT DOCUMENTS and are incorporated herein by this reference and made and part hereof as though they were fully set forth herein.

All of the rights and obligations of the CITY and CONTRACTOR are fully set forth and described in the CONTRACT DOCUMENTS.
ln the event there is a conflict between the terms of the Contract Documents, the more specific or stringent provision shall govern. City shall decide which option is the more specific or stringent provision.

ARTICTE I!- AGREEMENT
For and in consideration of the payments and agreements be made and performed by CITY, CONTRACTOR hereby agrees to furnish all materials and perform all work required for the PROJECT and to fulfill all other obligations as set forth in the CONTRACT DOCUMENTS.

ARTICTE III - COMPENSATION
CONTRACTOR hereby agrees to receive and accept the total amount TWO HUNDRED THOUSAND ONE HUNDRED AND EIGHTY-TWO DOLLARS.

Page: APPENDIX A.2

(5200,182.00), based upon those certain unit prices set forth in CONTRACTOR's Bid Schedule, a copy of which is attached hereto as Exhibit "A" and by this reference incorporated herein and made a part hereof, as full compensation for furnishing all materials, performing all work, and fulfilling all obligations hereunder.

Said compensation shall cover all expenses, losses, damages, and consequences arising out of the nature of the work during its progress or prior to its acceptance Including those for well and faithfully completing the work and the whole thereof in the manner and time specified in the CONTRACT DOCUMENTS, and also including those arising from actions of the elements, unforeseen difficulties or obstructions encountered in the prosecution of the work, suspension or discontinuance of the work, and all other unknowns or risks of any description connected with the work.

The sum identified in Article lll is not subject to escalation, the CONTRACTOR having satisfied himself with said CONTRACT price, which includes all labor and material increases anticipated throughout the duration of this CONSTRUCTION CONTRACT.

CITY shall retain five percent (5%l of said CONTRACT price until said time as the provisions of Article XIV herein have been met.

Progress payments shall be made in accordance with Section 9 of the Standard Specifications for Public Works as amended by the General Provisions and Special Provisions.

Upon receipt of a properly presented payment request, the Contract Officer shall process the payment request in accordance with Public Contracts Code Section 20104.50. The Contract Officer shall review the payment request as soon as possible. lf the Contract Officer rejects the payment request, it shall be returned to the Contractor within seven days of its receipt by the City with an explanation for the reasons of its rejection. lf the payment request is approved in writing by the Contract Officer, payment shall be made within thirty (30) days of receipt of an undisputed and properly presented payment request. Late payments shall bear interest at the legal rate of interest in accordance with Code of Civil Procedure 585.010. City shall pay Contractor a sum based upon ninety-five percent (95%) of the contract price apportionment of the labor and materials incorporated into the work under the contract during the period covered by said statement. The remaining five percent (5%) thereof shall be retained as performance security.

Substitution of Securities for Retention. The contractor may deposit securities in lieu of the 5% progress payment retentions in accordance with California Public Contracts Code 22300.

CITY's obligation is payable only and solely from Community Development Block Grant (CDBG) funds appropriated from the Unlted States Department of Housing and Urban Development (HUD) and for the purpose of this CONTRACT. All funds are appropriated every fiscal year beginning July 1. ln the event this CONTRACT extends into the succeeding fiscal year and funds have not been appropriated, this CONTRACT will automatically terminate as of June 30 of the current fiscal year. The CITY will notify the CONTRACTOR in writing in ten (10) days of receipt of the non-appropriation notice.

ARTICtE !V - CONTRACTOR REPRESENTATIONS
CITY hereby promises and agrees to employ, and does hereby employ, CONTRACTOR to provide the Page: APPENDIX A.3

materials, do the work, and fulfill the obligations according to the terms and conditions herein contained and referred to, for the sald amounts set forth in Article lll hereof, and hereby agrees to pay the same at the time, in the manner, and upon the conditions set forth in the CONTRACT DOCUMENTS. ln addition, CONTRACTOR hereby promises and agrees to comply with all of the provisions of both State and Federal law with respect to the employment of unauthorized aliens.

Should CONTRACTOR so employ such unauthorized aliens for the performance of work and/or services covered by this contract, and should the Federal Government impose sanctions against the CITY for such use of unauthorized aliens, CONTRACTOR hereby agrees to, and shall, reimburse CIW for the cost of all such sanctions imposed, together with any and all costs, including attorney's fees, incurred by the CITY in connection therewith.

Furthermore, CONTRACTOR hereby represents and warrants that it is not currently, and has not at any time within the past five (5) calendar years been, suspended, debarred, or excluded from participating in, bidding on, contracting for, or completed any project funded in whole or in part by any federally funded program, grant or loan, or any project funded in whole or in part by a program, loan or grant from the State of California, and that CONTRACTOR currently has and for the past five (5) calendar years has maintained in good standing, a valid California contractor's license. CONTRACTOR agrees to complete and execute any statement or certificate to this effect as may be required by the City or by any federal or State of California program, loan or grant utilized on this PROJECT.

ARTICLE V - COMMENCEMENT DATE
CONTRACTOR shall commence work on the date specified in the Notice to Proceed to be issued to said CONTRACTOR by the Director of Public Works of CIW and shall complete work on the PROJECT within THIRTY (30) working days after commencement.

ARTICLE VI- NO DISCRIMINATION
CONTRACTOR shall not discriminate in its recruiting, hiring, promotion, demotion or termination practices on the basis of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, marital status, sex, age, or sexual orientation in the performance of this CONTRACT and shall comply with the provisions of the California Fair Employment and Housing Act as set forth in Part 2.8 of Division 3, Title 2 of the California Government Code; the Federal Civil Rights Act of 1964, as setforth in Public Law88-352, and all amendmentsthereto; Executive Order 11245; and all administrative rules and regulations issued pursuant to such acts and order.

CONTRACTOR hereby promises and agrees to comply with all of the provisions of the Federal lmmigration and Nationality Act (8 USCA LIOL, et seg.), as amended; and, in connection therewith, shall not employ unauthorized aliens as defined therein. Should CONTRACTOR so employ such unauthorized aliens for the performance of work and/or services covered by this AGREEMENT, and should the Federal Government impose sanctions against the CITY for such use of unauthorized aliens, CONTRACTOR hereby agrees to, and shall, reimburse CIW for the cost of all such sanctions imposed, together with any and all costs, including attorney's fees, incurred by the CITY in connection therewith.

Page: APPENDIX A.4

ARTICLE VI!- IABOR CODE REQUIREMENTS
Compliance with SB 854 Registration: This Work is subject to compliance monitoring and enforcement by the Department of lndustrial Relations. No prime contractor or subcontractor may be listed on a bid proposal for a public works project (submitted on or after March 1, 2015) unless registered with the Department of lndustrial Relations pursuant to Labor Code section L725.5. No prime contractor or subcontractor may be awarded a contract for public work on a public works project (awarded on or after April 1, 2015) unless registered with the Department of lndustrial Relations pursuant to Labor Code section 1725.5. The Contractor will be required to post job site notices as described in 8 California Code of Regulation section 15451(d).

Pursuant to California Labor Code Sections 777O, L773,7773.L, L773.6, and L773.7, as amended, the applicable prevailing wages for this project have been determined. lt shall be mandatory upon the contractor to whom the contract is awarded and upon any subcontractor under him to pay not less than the higher of the Federal and the State prevailing wage rates to all workers employed by them in the execution of the contract. The applicable Federal prevailing wage rates are those that are in effect ten (10) calendar days prior to bid opening; they are set forth on the U.S. Department of Labor website:
http://www.wdol.gov/wdol/scafiles/davisbacon/ca33.dvb but are not printed in the Specifications.

Lower State wage rates for work classifications not specifically listed in the Federal wage decision are not acceptable. The applicable State prevailing wage rates are set forth on the California Department of lndustrial Relations website: http://www.dir.ca.gov/DLSR/PWD but are not printed in the Specifications; these rates are subject to predetermined increases.

Contractor acknowledges that under California Labor Code sections 1810 and following, 8 hours of labor constitutes a legal day's work. Contractor will forfeit as a penalty to City the sum of 525.00 for each worker employed in the execution of this Agreement by Contractor or any subcontractor for each calendar day during which such worker is required or permitted to work more than 8 hours in any one calendar day and 40 hours in any one calendar week in violation of the provisions of Labor Code section 1810. (Labor Code $ 1813).

Copies of the determination of the Director of the Department of lndustrlal Relations of the prevailing rate of per diem wages for each craft, classification or type of worker needed to execute this Agreement will be made available upon request from the City Engineer's Office.

Contractor must post at the work site, or if there is no regular work site then at its principal office, for the duration of the Contract, a copy of the determination by the Director of the Department of lndustrial Relations of the specified prevailing rate of per diem wages. (Labor Code 5 7773.2],. The Contractor shall post WH-1321 ENGLISH and WH-1321 SPANISH at the work site.

Contractor, and any subcontractor engaged by Contractor, must pay not less than the specified prevailing rate of per diem wages to all workers employed in the execution of the contract. (Labor Code 5 t774.1 Contractor is responsible for compliance with Labor Code section 1775 relative to the retention and inspection of payroll records.

Contractor must comply with all provisions of Labor Code section 1775. Under Section 1775, Contractor may forfeit as a penalty to City up to 550.00 for each worker employed in the execution of the Contract Page: APPENDIX A.5

by Contractor or any subcontractor for each calendar day, or portion thereof, in which the worker is paid less than the prevailing rates. Contractor may also be liable to pay the difference between the prevailing wage rates and the amount paid to each worker for each calendar day, or portion thereof, for which each worker was paid less than the prevailing wage rate.

Nothing in this Contract prevents Contractor or any subcontractor from employing properly registered apprentices in the execution of the Contract. Contractor is responsible for compliance with Labor Code section L771.5 for all apprenticeable occupations. This statute requires that contractors and subcontractors must submit contract award information to the applicable joint apprenticeship committee, must employ apprentices in apprenticeable occupations in a ratio of not less than one hour of apprentice's work for every five hours of labor performed by a journeyman (unless an exception is granted under 51777.5), must contribute to the fund or funds in each craft or trade or a like amount to the California Apprenticeship Council, and that contractors and subcontractors must not discriminate among otherwise qualified employees as apprentices solely on the ground of sex, race, religion, creed, national origin, ancestry or color. Only apprentices defined in Labor Code section 3077, who are in training under apprenticeship standards and who have written apprentice contracts, may be employed on public works in apprenticeable occupations.

This is a federally-assisted CONSTRUCTION CONTRACT. Federal Labor Standards Provisions, including prevailing wage requirements of the Davis-Bacon and Related Acts will be enforced. ln the event of a conflict between Federal and State wages rates, the higher of the two will prevail. Modification of Federal Wage Rates published within ten (10) days prior to the scheduled Bid Opening date shall apply to the contract.

The Contractor shall submit payroll records electronically to the California Department of lndustrial Relations (DlR) at http://www.dir.ca.gov/Public-Works/Certified-Payroll-Reporting.html and to the City weekly for each week in which any contract work is performed. The Contractor is also responsible for the submission of payroll records by all its Subcontractors performing any contract work on this Project.

The payroll records submitted shall set out accurately and completely all of the information required to be maintained under Section 5.5(a) (3) (i) of 29 C.F.R. Part 5. Each payroll submitted shall be accompanied by a Statement of Compliance signed by the Contractor or Subcontractor or his or her agent who pays or supervises the payment of the persons employed under the Contract, and shall certify the followlng:
o The payroll records for the payroll period contains the information required to be maintained under Section 5.s(aX3Xi) of 29 C.F.R. Part 5, and that such information is correct and complete; o Each employee employed on the contract during the payroll period has been paid the full weekly wages earned, without rebate, either directly or indirectly, and that no deductions have been made either directly or indirectly from the full wages earned, other than permissible deductions as set forth in Regulations, 29 C.F.R. Part 3;
o Each employee has been paid not less than the applicable wage rates and fringe benefits or cash equivalents for the classification of work performed, as specified in the applicable wage determination incorporated into the Contract.

This information may be submitted in any form desired, however, Form WH-347 is provided as an optional template. The Contractor shall submit a Statement of Non-Performance for each week of work for which craft work was not performed.

Page: APPENDIX A.6

The falsification of any of the above certifications may subject the Contractor or Subcontractor to civil or criminal prosecution under Section 1001 of Title 18 and Section 231 of Title 31 of the United States Code.

The Contractor shall submit copies of apprentice certification(s) for each apprentice performing work on the Contract to accompany the first payroll record in which that apprentice appears. The City will recognize apprentice certifications from the U.S. Department of Labor and the California Division of Apprenticeship Standards. Any worker listed on a payroll at an apprentice wage rate, who is not registered or otherwise employed as stated above, shall be paid not less than the applicable wage rate on the wage determination for the classification of work actually performed.

The CONTRACTOR's duty to pay State prevailing wages can be found under Labor Code Section 1770 et q. and Labor Code Sections t775 and t777.7 outline the penalties for failure to pay prevailing wages and employ apprentices including forfeitures and debarment.

The Contractor agrees that the City, through its authorized representatives, has the right, at all reasonable times, to make site visits to review Project accomplishments and for other reasons, such as employee interviews. lf any site visit is made by the City on the premises of the Contractor or any of its Subcontractors under this Contract, the Contractor shall provide and shall require its Subcontractors to provide, all reasonable facilities and assistance for the safety and convenience of City representatives in the performance of their duties. All site visits and evaluations shall be performed in such a manner as will not unduly delay work belng conducted by the Contractor or Subcontractor(s). lf the work involves excavation of any trench five feet or more in depth the contractor shall submit a detailed plan of shoring, bracing, sloping or other provisions to be made for worker protection. Such plan shall be approved by a qualified representative of the City. (LC 6705).

ARTICLE VIII. PROVISIONS REqUIRED BY tAW
Each and every provision of law required to be included in these Contract Documents shall be deemed to be included in these Contract Documents. The Contractor shall comply with all requirements of applicable federal, state and local laws, rules and regulations, including, but not limited to, the provisions of the California Labor Code and California Public Contract Code which are applicable to this Project. Such laws, rules and regulations shall include, but not be limited to the following.

Contractor's License.

The Contractor shall possess a type A-General Engineering Contractor California Contractor's license at the time of award of the Contract.
lneligible Contractor Prohibited.

Any contractor or subcontractor who is ineligible to perform work on a public works project pursuant to Section L777.t or L777.7 of the Labor Code is prohibited from performing work under this Contract.

Unfair Business Practices Claims.

The Contractor or subcontractor offers and agrees to assign to the City all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. Section 15) or under the Cartwright Act (Chapter 2, (commencing with Section 16700) of Part 2 of Division 7 of Page: APPENDIX A.7

the Business and Professions Code), arising from purchases of goods, services or materials pursuant to the public works contract or the subcontract. This assignment shall be made and become effective at the time the City renders final payment to the Contractor without further acknowledgment by the parties. (Section 7103.5, California Public Contract Code.).

Hazardous Materials and Unknown Conditions.

A. CONTRACTOR shall, without disturbing the condition, notify CITY in writing as soon as CONTRACTOR, or any of CONTRACTOR's subcontractors, agents or employees have knowledge and reporting is possible, of the discovery of any of the following conditions:

1. The presence of any material that the CONTRACTOR believes is hazardous waste, as defined in Section 25177 of the Health and Safety Code; Subsurface or latent physical conditions at the site differing from those indicated in the specifications; or,

3. Unknown physical conditions at the site of any unusual nature, different materially from those ordinarily encountered and generally recognized as inherent in work of this character provided for in this Contract.

B. Pending a determination by CITY of appropriate action to be taken, CONTRACTOR shall provide security measures (e.g., fences) adequate to prevent the hazardous waste or physical conditions from causing bodily injury to any person.

CITY shall promptly investigate the reported conditions. lf Clry, through its Director of Public Works, or her designee, and in the exercise of its sole discretion, determines that the conditions do materially differ, or do involve hazardous waste, and will cause a decrease or increase in the CONTRACTOR's cost of, or time required for, performance of any part of the work, then CITY shall issue a change order.

D. ln the event of a dispute between CITY and CONTRACTOR as to whether the conditions materially differ, or involve hazardous waste, or cause a decrease or increase in the CONTRACTOR's cost of, or time required for, performance of any part of the work, CONTRACTOR shall not be excused from any scheduled completion date, and shall proceed with all work to be performed under the Contract. CONTRACTOR shall retain any and all rights which pertain to the resolution of disputes and protests between the parties.

ARTICLE IX - !NDEMNITY
CONTRACTOR shall assume the defense of and indemnify and save harmless the CITY, its elective and appointive boards, officers, agents and employees, and Design Engineer and Construction Manager from all claims, loss, damage, injury and liability of every kind, nature and description, directly or indirectly arising from the performance of the CONTRACTOR's work, regardless of responsibility of negligence; and from any and all claims, loss, damage, injury and liability, howsoever the same may be caused, resulting directly or indirectly from the nature of the work covered by the contract, regardless of responsibility of negligence; provided

2. C.

Page: APPENDIX A.8

(a) That CITY does not, and shall not, waive any rights against CONTRACTOR which it may have by reason for the aforesaid hold-harmless AGREEMENT because of the acceptance by CITY or the deposit with CITY by CONTRACTOR, of any of the insurance policies hereinafter described in this AGREEMENT. (b) That the aforesaid hold-harmless AGREEMENT by CONTRACTOR shall apply to all damages and claims for damages of every kind suffered, or alleged to have been suffered, by reason of any of the aforesaid operations of CONTRACTOR, or any subcontractor, regardless of whether or not such insurance policies shall have been determined to be applicable to any of such damages or claims for damages.

ARTICLE X - BONDS
Warrantv & Guarantee
New Materials. Contractor guarantees that all materials and equipment furnished will be new unless otherwise specified in the Contract Documents.

One Year Guarantee. Contractor guarantees all materials and equipment furnished and Work performed for a period of one (1) year from the date of substantial completion is free from all defects due to faulty materials or workmanship. Contractor shall promptly make such corrections as may be necessary by reasons of such defects including the repairs of any damage to other property, whether real or personal. The City will give notice of observed defects with reasonable promptness. lf Contractor fails to make such repairs, or other Work that may be made necessary by such defects, the City may do so and charge the Contractor the cost thereby incurred, plus 10% for administrative expenses. The Performance Bond shall remain in full force and effect through the guarantee period.

Contractor shall execute the Public lmprovement Warranty.

Bonds.

Contractor shall provide a payment bond consistent with the terms of this section and City may not waive this requirement. Contractor shall also provide a performance bond consistent with the terms of this section, unless City waives such requirement in writing. Each bond shall (1) be in writing; (2) signed by at least one admitted surety insurer under oath; (3) if a bond is signed by more than one surety insurer, include a statement that the sureties are jointly and severally liable on the obligations required hereunder; (4) list the address at which the principal and surety/sureties may be served with notices, papers, and other documents under this chapter; (5) be in the form of a bond and not in a deposit in lieu of a bond; (5) be consistent with any other requirements of the City that reasonably relate to a guarantee that the project will be completed at no cost to the City.

Pavment Bond. Contractor shall furnish and file with City a bond in the sum of one hundred percent {1.OOYo} of the Compensation. Consistent with Civil Code S 3248, the bond shall provide that if the Contractor or any subcontractors hired by Contractor fails to pay (1) any of the persons named in Civil Code 5 3181; (2) amounts due under the Unemployment lnsurance Code with respect to work or labor performed under this Agreement; or (3) for any amounts required to be deducted, withheld, and paid Page: APPENDIX A.9

over to the Employment Development Department from the wages of employees of the contractor and subcontractors pursuant to Unemployment lnsurance Code 513020 with respect to the work and labor that the sureties will pay for the same, and also, in case suit is brought upon the bond, a reasonable attorney's fee, to be fixed by the court. The bond shall, by its terms, inure to the benefit of any of the persons named in Civil Code 5 3181 so as to give a right of action to those persons or their assigns in any suit brought upon the bond. The bond provided under this section shall be released by written authorization of the City Engineer at the completion of the one year warranty period described in section 0, above, provided that Contractor is not in default on any provision of this Agreement.

Performance Bond. Contractor shall provide City with a bond in the sum of one hundred percent (100%) of the Compensation to guarantee the completion of the Work, to protect City if Developer is in default of this Agreement, and to secure Contracto/s one-year guarantee and warranty. The City Council may, in its sole and absolute discretion and upon recommendation of the City Engineer, partially release a portion or portions of the security provided under this section as the Public lmprovements are accepted by City, provided that Contractor is not in default on any provision of this Agreement. All security provided under this section shall be released at the end of the warranty period described in section 0, above, provided that Contractor is not in default on any provision of this Agreement.

ARTICTE XI- INSURANCE
CONTRACTOR shall not commence work under this contract until CONTRACTOR shall have obtained all insurance required by the CONTRACT DOCUMENTS and such insurance shall have been approved by CITY as to form, amount and carrier, nor shall CONTRACTOR allow any subcontractor to commence work on any subcontract until all similar insurance required of the subcontractor shall have been so obtained and approved.
(a) COMPENSATION INSURANCE - CONTRACTOR shalltake out and maintain, during the life of this contract, Worker's Compensation lnsurance for all of CONTRACTOR's employees employed at the site of improvement; and, if any work is sublet, CONTRACTOR shall require the subcontractor similarly to provide Worker's Compensation lnsurance for all of the latter's employees, unless such employees are covered by the protection afforded by CONTRACTOR. lf any class of employees engaged in work under this contract at the site of the PROJECT is not protected under any Workers' Compensation law, CONTRACTOR shall provide and shall cause each subcontractor to provide adequate insurance for the protection of employees not otherwise protected. CONTRACTOR shall indemnify CITY for any damage resulting to it from failure of either CONTRACTOR or any subcontractor to take out or maintain such insurance. (b) COMPREHENSIVE GENERAL LIABILIry, PRODUCTS/ COMPLETED OPERATIONS HAZARD, COMPREHENSIVE AUTOMOBILE LIABILIry AND CONTRACTUAL GENERAL LIABILIW INSURANCE. CONTRACTOR shall take out and maintain during the life of this contract such comprehensive general liability, products/completed operations hazard, comprehensive automobile liability and contractual general liability insurance as shall protect CITY, its elective and appointive boards, officers, agents and employees, Design Engineer and Page: APPENDIX A.10

Construction Manager, CONTRACTOR, and any subcontractor performing work covered by this contract, from claims for damage for personal injury, including death, as well as from claims for property damage which may arise from CONTRACTOR's or any subcontractor's operations under this contract, whether such operations be by CONTRACTOR or by any subcontractor, or by anyone directly or indirectly employed by either CONTRACTOR or any subcontractor, and the amounts of such insurance shall be as follows:

Public Liabilitv lnsurance in an amount of not less than TWO MILLION DOLLARS (SZ,OOO,OOO;;
Products/Completed Ooerations Hazard lnsurance in an amount of not less than TWO MILLION DOLLARS (52,000,000);
Comprehensive Automobile Liabilitv Insurance in an amount of not less than TWo MtLLtoN DOLLARS (s2,000,000);
Contractual General Liabilitv lnsurance in an amount of not less than TWO MtLLtON DOLLARS (s2,000,000).

A combined single limit policy with aggregate limits in an amount of not less than TWO MILLION DOLLARS (52,000,000) shall be considered equivalent to the said required minimum limits set forth hereinabove.
(c) PROOF OF INSURANCE - The insurance required by this AGREEMENT shall be with insurers which are Best A rated, and California Admitted or better. The CITY and Design Engineer and Construction Manager shall be named as "additional insured" on all policies required hereunder, and CONTRACTOR shall furnish CITY, concurrently with the execution hereof, with satisfactory proof of carriage of the insurance required, and adequate legal assurance that each carrier will give CITY at least thirty (30) days' prior notice of the cancellation of any policy during the effective period of the contract. (d) NOTICE TO COMMENCE WORK - The CITY will not issue any notice authorizing CONTRACTOR or any subcontractor to commence work under this contact until CONTRACTOR has provided to the CITY the proof of insurance as required by subparagraph (c) of this article.

ARTICLE XI! - ATTORNEY FEES
lf either party to this Contract is required to initiate or defend, or is made a party to, any action or proceeding in any way connected with this Contract, the party prevailing in the final judgment in such action or proceeding, in addition to any other relief which may be granted, shall be entitled to reasonable attorney's fees and costs. Attorney's fees shall include reasonable costs for investigating such action.
(1)
(2)
(3)
(4)
Page: APPENDIX A.11

ARTICLE XIII- LIQUIDATED DAMAGES
The parties agree that it would be impractical and extremely difficult to fix the actual damages to the CIW in the event the PROJECT is not commenced and/or completed on or before the dates specified for commencement and completion of the PROJECT in the CONTRACT DOCUMENTS. The parties have considered the facts of a breach of this contract and have agreed that the liquidated damages sum hereinafter set forth is reasonable as liquidated damages In the event of a breach, and that said sum shall be presumed to be the amount of the damages sustained by the CITY in the event such work is not begun and/or completed and accepted by the times so specified in the CONTRACT DOCUMENTS, the sum of FIVE HUNDRED DOLLARS. (5500) shall be presumed to be the amount of damages suffered by the CITY for each calendar day's delay in the starting and/or completion and acceptance of said PROJECT after the dates specified in the CONTRACT DOCUMENTS for the start and/or completion thereof, and CONTRACTOR hereby agrees to pay said sum of FIVE HUNDRED Dollars (SSOO1 as liquidated damages for each calendar day of delay in the starting and/or completing and acceptance of said PROJECT beyond the dates specified in the CONTRACT DOCUMENTS. Any and all such liquidated damages assessed shall be done so in accordance with that certain edition of the Stondord Specification for Public Works Construction currently in effect on the execution date of this CONTRACT. The payment of such liquidated damages is not intended as a forfeiture or penalty within the meaning of California Civil Code S 3275 or 5 3359.

CONTRACTOR: ELECNOR BELCO ELECTRIC, lNC. CITY OF CUDAHY a California Corporati on a Municipal Corporation
President /CEO
Alberto Garcia
ER
ARTICLE XlV - NOTICE OF COMPLETION
Upon completion of PROJECT and acceptance of same by the CIW Council, the CITY Manager shall have cause to be recorded a Notice of Completion with the office of the Los Angeles County Recorder; and, after thirty-five (35) days from the date said Notice of Completion is recorded, the Director of Finance of CITY shall release the funds retained pursuant to Article lll hereof; provided there have been no mechanics' liens or stop notices filed against said work which have not been paid, withdrawn or eliminated as liens against said work.

ARTICTE XV - NO - ASSIGNMENT
This contract shall not be assignable, either in whole or in part, by the CONTRACTOR without first obtaining the written consent of the CITY thereto.

ARTICLE XVI- CUMUTATIVE RIGHTS
The provisions of this AGREEMENT are cumulative and in addition to and not in limitation of any rights or remedies available to CITY.

Page: APPENDIX A.12

ARTICLE XVI! - TERMINATION
A. Termination for Convenience. The CITY may terminate this contract, in whole or in part, with 30 days written notice to the CONTRACTOR when it is in the CITY's best interest. The CONTRACTOR shall be paid its costs, including contract close-out costs, and profit on work performed up to the time of termination. The CONTRACTOR shall promptly submit its termination claim to CITY to be paid the CONTRACTOR. lf the CONTRACTOR has any property in its possession belonging to the CITY, the CONTRACTOR will account for the same, and dispose of it in the manner the CITY directs. The CONTRACTOR may terminate this contract, in whole, with 90 days written notice to the CITY.

B. Termination for Default. lf at any time the CONTRACTOR is determined to be in material breach of the Contract, a Notice of Potential Breach of Contract shall be prepared by the CITY, and will be served upon the CONTRACTOR and its sureties. lf the CONTRACTOR continues to neglect or refuses to comply with the Contract or with the Notice of Potential Breach of Contract to the satisfaction of the CITY within the time specified in such Notice, the CIW shall have the authority to terminate the Contract for this Project.

C. Waiver of Remedies for any Breach. ln the event that CITY elects to waive its remedies for any breach by CONTRACTOR of any covenant, term or condition of this Contract, such waiver by CITY shall not limit CITY's remedies for any succeeding breach of that or of any other term, covenant, or condition of the Contract.

ARTICLE XVIII - FEDERAT REQUIREMENTS
Contractor shall comply with all mandatory standards and policies relating to energy efficiency which are contained in the state energy conservation plan issued in compliance with the Energy Policy and Conservation Act.

The City, the federal grantor agency, the Comptroller General of the United States, or any of their duly authorized representatives shall have access to any books, documents papers and records of the Contractor and any subcontractors which are directly pertinent to this Agreement, for the purpose of making audit, examination, excerpts and transcriptions. Contractor shall maintain all required records forthree years after City makes final payments and all other pending matters are closed.

Contractor shall comply with the Copeland "Anti-Kick Back" Act, 18 U.S.C. 5874, as supplemented in Department of Labor regulations. (29 C.F.R. part 3.)
Contractor shall ensure compliance with sections 103 and LO7 of the Contract Work Hours and Safety Standards Act, 40 U.S.C. SS 327 - 33, as supplemented by Department of Labor regulations. See 29 C.F.R. part 5.

Contractor and any subcontractors must comply with Executive Order Lt246 as amended by Executive Order 11375 and as supplemented in Department of Labor regulations. (41 C.F.R. part 3.) Page: APPENDIX A.13

lf the Compensation exceeds $100,000, Contractor shall comply with all applicable standards, orders, or requirements issued under section 305 of the Clean Air Act, Section 508 of the Clean Water Act, Executive Order 11738, and Environmental Protection Agency (EPA) regulations, which prohibit the use under non-exempt federal contracts, grants or loans of facilities included on the EPA List of Violating Facilities. (See e.g. 47 C.F.R. S18.36(i)(12).)
lf the Compensation exceeds SIOO,OOO for construction or facility improvements, Contractor must observe the building requirements contained in Attachment B of OMB Circular A-110. -----SIGNATURES ON FOIIOWING PAGE---_-
Page: APPENDIX A.14

by:
lN WITNESS WHEREOF, the parties hereto have caused this contract to be executed on the day of 20--,by their respective officers duly authorized in that behalf.

CITY OF CUDAHY R BELCO ELECTRI INC.
a Munici I Corporation a California
Ma
- Jeroni Gervilla
ATTEST / Sr. Vice President
Roger DeVito
Clerk

APPROVED AS TO FORM
by
by: 4VU
City Attorney
Page: APPENDIX A.15

CALIFORNIA ALL. PURPOSE

CERTIFICATE OF ACKNOWLEDGMENT
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of California )
County of San Bernardino )
On 3118124 before me, Rebecca Wilks, Notary Public
personally appea ,."6 Jeroni Gervilla & Roger Devito
who proved to me on the basis of satisfactory evidence to be the person@whose name$ is,@subscribed to the within instrument and acknowledged to me that he/she/@executed the same
his/her@psignatur@ on the
in his/her@Futhorized capacity@ and that by
instrument the perso@, or the entity upon behalf of
which the person6)acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

REBECCA WILKS
Commissi:n # 2462175
tlotary PuUic - Califomia
Sar Bemardlno CotntY
My Comm. exPtres Sep. I,Nn
Notary nature (Notary Public Seal)

ADDITIONAL OPTIONAL INFORMATION INSTRUCTIONS FOR COMPLETINC THIS FORM Thislorm complies vilh cttrrent California statutes regarding nolary wording and, ifneeded. should be completed and attached to the document. Acknowledgments from other states mal, be compleled /or documenls being sent lo that stale so long as the wording does not require the California nolary lo violale Caldornia notary latv.
. State and County information must be the State and County where the document signe(s) personally appeared before the notary public for acknowledgment. . Date of notarization must be the date that the signer(s) personally appeared which must also be the same date the acknowledgment is completed. . The notary public must print his or her name as it appears within his or her commission followed by a comma and then your title (notary public). . Print the name(s) of document signer(s) who personally appear at the time of notarization.
o Indicate the correct singular or plural forms by crossing off incorrect forms (i.e. he/she/theyr is /are ) or circling the correct forms. Failure to correctly indicate this information may lead to re.jection of document recording. . The notary seal impression must be clear and photographically reproducible.

Impression must not cover text or lines. If seal impression smudges, re-seal if a sufficient area permits, otherwise complete a different acknowledgment form. . Signature of the notary public must match the signature on file with the office of the county clerk. .3. Additional information is not required but could help to ensure this acknowledgment is not misused or attached to a different document. * lndicate title or type ofattached document. number ofpages and date. .:. lndicate the capacity claimed by the signer. If the claimed capacity is a corporate officer, indicate the title (i.e. CEO, CFO, Secretary). r Securely attach this document to the signed document with a staple.

DESCRIPTION OF THE ATTACHED DOCUMENT
Cudahy contract
(Title or description of attached document)
(Title or description of attached document mntinued)
Number of Pages _ Document DateCAPACITY CLAIMED BY THE SIGNER tr lndividual (s)
A Corporate Officer
( Itue)
tr Partne(s)
tr Attorney-in-Fact
tr Trustee(s)
r-r Other
www. NolaryClasses.com 800-873-9865

Bond No. 015224083
Premium: $677.00

FAITHFUT PERFORMANCE BOND
CUDAHY HSIP CYCTE 7

SAIT LAKE AVENUE IMPROVEMENTS
Federal Project No: HSIPL-S359(012)
City Project No: 235-7104-6725
This is a Federally Funded Project
KNOW ALL MEN BY THESE PRESENTS that Elecnor Belco Electric, lnc. AS CONTRACTOR and Liberty Mutual lnsurance Company , as SURETY, are held and firmly bound unto the City Of CUDAHY, in the penal SUm Of TmHundredrhesndoneHundredE€hty-rmandoo/1oo($200.'18200) dOllarS (S ), which is 100 percent of the total contract amount for the above stated project, for the payment of which sum, CONTRACTOR and SURETY agree to be bound, jointly and severally, firmly by these presents.

THE CONDITIONS OF THIS OBLIGATION ARE SUCH thAt, WhCTCAS CONTRACTOR hAS bCEN AWArdCd ANd iS about to enter into the annexed Contract with the City for the above stated project, if CONTRACTOR faithfully performs and fulfills all obligations under the contract documents in the manner and time specified therein, then this obligation shall be null and void, otherwise it shall remain in full force and effect in favor of the City; provided that any alternations in the obligations or time for completion made pursuant to the terms of the contract documents shall not in any way release either CONTRACTOR or SURETY, and notice of such alternations are hereby waived by SURETY. lN WITNESS WHEREOF the parties hereto have set i, n"v("r, titles, hands, and seals this tstn day of 20 23
CONTRACTOR * Elecnor Belco Electric, lnc. 14320 Albers CA 91 71 0 Phone: (909) 993-5470 Ilr,
SURETy* Liberty Mutual lnsurance Company ry-) Anne McMahon, Attorney-in-Fact 175BerkeleyStreet.Boston,MA021l6 Phone:(617)357-9500Attn:MichaelStein,T90TheCltyDriveSouth,Suite200,Orange,CA92S6SPhone:(714)634-3311 * Provide CONTRACTOR/SURETY name, address and telephone number and the name, title, address and telephone number for authorized representative.

Subscribed and sworn to this day of . 20_.

NOTARY PUBLIC:
1g'.t2
Page: APPENDIX A.17
l\rlarch

CALIFORNIA ALL. PURPOSE

CERTIFICATE OF ACKNOWLEDGMENT
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of California
County of San Bernardino )
On 3120123 before me, Rebecca Wilks, Notary Public
(Here insed nEme aidtiile olthe oflcET
personally appeared Jeroni Gervilla
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s)@re subscribed to the within instrument and acknowledged to me that @fretney executed the same infiE]her/their authorized capacity(ies), and that by fi^r- he/their signature(+) on the instrument the person(s), or the entity upon behalf of which the person(+) acted, executed the instrument.
! certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct
WITNESS my hand and official seal.

Notary Signature (Notary Public Seal)

ADDITIONAL OPTIONAL INFORMATION INSTRUCTIONS FOR COMPLETING THIS FORM This /orm complies \vith currenl CalrJornia statutes regarding notary wording and, fneeded, shottld be completed and attached to the document. Acknovledgments from other states mery be conplete<lfor docun,ents being sent to that stale so long as the u'ording does nol require the California nolary to violale Colilornia notary lav'.
. State and County information must be the State and County where the documenl signer(s) personally appeared before the notary public for acknowledgment. o Date ofnotarization must be the date that the signer(s) personally appeared which must also be the same date the acknowledgment is completed. . The notary public must print his or her name as it appears within his or her commission followed by a comma and then your title (notary public). . Print the name(s) of document signer(s) who personally appear at the time of notarization.
o lndicate the correct singular or plural forms by crossing off incorrect forms (i.e. he/she/thef is /are ) or circling the correct forms. Failure to correctly indicate this rnformation may lead to rejection of document recording. ! The notary seal impression must be clear and photographically reproducible.

Impression must not cover text or lines. lf seal impression smudges, re-seal if a sufficient area permits, otherwise complete a different acknowledgment form. . Signature of the notary public must match the signature on file with the office of the county clerk.
* Additional information is not required but could help to ensure this acknowledgment is not misused or attached to a different document. * lndicate title or type ofattached document, number ofpages and date. * Indicate the capacity claimed by the signer. If the claimed capacity is a corporate officer, indicate the title (i.e. CEO, CFO, Secretary). . Securely attach this document to the signed document with a staple.

DESCRIPTION OF THE ATTACHED DOCUMENT
Cudahy bond
(Title or description of aftached document)
(Title or description of aftached document continued)
Number of Pages _ Document Datp

REBECCA WLKS
Cormis*m# 2462475
tlotty hrUic - Cdfornia
San BamillinoCoJnty
My Corm. &pkes Sep.9, 20AI

CAPACITY CLAIMED BY THE SIGNER
tr lndividual (s)
! Corporate Officer
- (TiIIe)
tr Partne(s)
tr Attorney-in-Fact
tr Trustee(s)
r-r Other
www. NotaryClasses.com 600-873-9865

CALIFORNIA ALL.PURPOSE ACKNOWLEDGMENT clvrL coDE s 1r89 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of Connecticut
of Hartford
On March 15. 2024 before me, Stephanie Notary Public Dote Here lnsert Name ond Title af the Officer Personally appeared
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrumentthe person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State ofConnecticut that the foregoing paragraph is true and correct,
WITNESS my and

STEPHANIE HARVEY
NOrAXv PIJBUC - CT 185862
My Commision Expires Mar. 37,?027 Signature
of Notory Public
Stephanie Harvey
Ploce Notory Seal Above
Though this section is optionol, completing this infotmation can deter olterotion ol the document or lroudulent reottachment of this lorm to on unintended document.

Description of Attached Document
Title or Type of Document Document Date
Number of Pages Signer(s) OtherThan Named Above
Capacity(iesl Claimed by Signer(s)
Signer's Name
trtr
Corporate Officer-Title(s)
Partner
s)
I tndividual
tr
E
Limited I General
Attorney in Fact
General
f]Trustee IGuardianorConservator
E o,r,",
in Fact
or Conservator
Signer ls Representing Liberty Mutual lnsurance Company Signer ls Representing County
Name
Partner
lndividual

This Power of Attorney limits the acts of those named herein, and they have no authority to bind the Company except in the manner and to the extent herein stated.

Liberty Mutual lnsurance Company
The Ohio Casualty lnsurance Company
West American lnsurance Company

POWER OF ATTORNEY
KNOWN ALL PERSONS BY THESE PRESENTS: That The Ohio Casualty lnsurance Company is a corporation duly organized under the laws of the State of New Hampshire, that Wolpe(, Dorilza Mojica, Gentry Stewart, Jennifer Godere, Jonathan Gleason, Joshua Sanford, Kathryn Pryor, Kyle Williams, Michelle Anne McMahon, Nicholas Miller, Richard Hackner, Robyn Salley, Sarah Murtha
all of the city of Hartford state of CT each individually if there be more lhan one named, its true and lawful attorney-in-fact to make, of hese presenB and shall be as binding upon the Companies as if they have been duly signed by he president and attested by the secretary of the Companies in their own proper persons.
lN WTNESS WHEREOF, ttis Power of Attomey has been subscnbed by an authonzed officer or official of the Companies and the corporate seals of the Companies have been amxed thereto this 22nd day of August 2023
Liberty Mutual lnsurance Company
The Ohio Casualty lnsurance Company
West lnsurance Company
By:

David M. Carey, Assistant Secretary
State of PENNSYLVANIA
..

County of MONTGOMERY ""
On this 22nd day of August , 2023 belore me personally appeared David M. Carey, who acknowledged himselfto be the Assistant Secretary of Liberty Mutual lnsurance Company, The ohio Casualty Company, and West American lnsurance Company, and that he, as such, being authorized so to do, execute the foregoing instrument for the purposes therein contained by signing on behalf of the corporatrons by himself as a duly authorized officer. lN WITNESS WHEREOF, I have hereunto subscribed my name and affixed my notarial seal at Plymouth Meeting, Pennsylvania, on the day and year first above written.

Libertv
Mutudl" Certaficate No: 8210646 - 985949
SURETY
I PAs q
(
Commonwealth of Pennsylvania " Notary Seal
Teresa Pastella, Notary Public
Montgomery County
My mmmission erpires March 28,2025
Commission number 1 126044
By: /-fr//. v
Member. Pennsylvanra Ass6ton ot Nolanes Pastella, Notary Public Company, and West American lnsurance Company which resolutions are now in full force and effect reading as follours:

ARTICLE lV - OFFICERS: Seclion 12 Power of Attomey.
may prescribe, shall appoint such attomeys-injact, as may be necessary to act in behalf of the Corporation to make, execute, seal, acknowledge and deliver as surety any and all power to bind the Corporation by their signature and execution of any such instruments and to afach thereto the seal of the Corporation. When so executed, such instrments shall article may be revoked at any time by the Board, the Chairman, the President or by the ofiicer or off,cers granting such power or authority.

ARTICLE Xll - Execution of Contracts: Seclion 5. Surety Bonds and Undertakings. shall appoint such aftomeys-injact, as may be necessary to act in behaf of the Company to make, execute, seal, acknowledge and deliver as surety any and all undertakings, Company by heir signature and execution of any such instruments and lo attach ttrereto the seal of the Company. Vvhen so executed such instrumenb shall be as binding as if signed by he president and attested by the secretary.
fact as may be necessar to act on behatf of the Company to make, execute, seal, acknowledge and deliver as surety any and all undertakings, bonds, recognizances and other surety obligations.

Company, wherever appearing upon a certrfed mpy of any porrrer of attomey issued by the Company in conneclion with surety bonds, shall be valid and binding upon the Company with the same force and effect as though manually affixed.
l, Renee C. Llewellyn, the undersigned, Assistanl Sesetary, The Ohio Casualty lnsurance Company, Liberty Mutual lnsurance Company, and WestAmerican lnsurance Company do has not been revoked.
lN TESTIMONY WHEREOF, I have hereunto set my hand and affixed the seals of said Companies this I 5th day of 1912 1919 1991
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LMS-12873 LMIC OCIC wAlC Multi Co 02121
By
March 2024
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Bond No. 015224083

MATERIAT AND TABOR BOND
CUDAHY HSIP CYCLE 7

SALT LAKE AVENUE IMPROVEMENTS
Federal Project No: HSIPt-5359(012)
City Project No: 235-7104-5725
This is a Federally Funded Project
KNOW ALL MEN BY THESE PRESENTS thAt Elecnor Belco Electric, lnc. AS CONTRACTOR Liberty Mutual lnsurance Company as SURETY, are held and firmly bound untO the City Of CUDAHY, in the penal Sum Of Two Hundred rhouend ore Hundred E€htv-rwo and 00/100 (s200.182 0o) dOllarS (S ), which is 100 percent of the total contract amount for the above stated project, for the payment of which sum, CONTRACTOR and SURETY agree to be bound, jointly and severally, firmly by these presents.

THE CONDITIONS OF THIS OBLIGATION ARE SUCH thAt, WhCTEAS CONTRACTOR hAS bCCN AWArdcd ANd iS about to enter into the annexed Contract with the City for the above stated project, if CONTRACTOR faithfully performs and fulfills all obligations under the contract documents in the manner and time specified therein, then this obligation shall be null and void, otherwise it shall remain in full force and effect in favor of the City; provided that any alternations in the obligations or time for completion made pursuant to the terms of the contract documents shall not in any way release either CONTRACTOR or SUREry, and notice of such alternations are he waived by SUREW lN W|TNESS WHEREOF the parties hereto ha set their names, titles, hands, and seals this 1sth day of March 202!_.

CONTRACTOR* Elecnor Belco Electric' lnc. 14320 Way, Chino , CA 91710 Phone: (909) 393-5470 SUR Mutual lnsurance Company
Anne
Streel, Boston, 790 The City Drive South, Suile 200, Orange, CA 92868 Phone: (714) * Provide
telephone number for authorized representative
Subscribed and sworn to this day of
NOTARY PUBLIC:

REW name, address and telephone number and the name, title, address and 20 't912
02116 Phone: (617) 357-9500 Attn:

Page: APPENDIX A.18
634-331 1

CALIFORNIA ALL. PURPOSE

CERTIFICATE OF ACKNOWLEDGMENT
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of California
County of San Bernardino
On 3120123 before me,
(Here insert name and title of the officer)
)
)
Rebecca Wilks, Notary Public
personally appea red Jeroni Gervilla
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s)@re subscribed to the within instrument and acknowledged to me that @netney executed the same infriQher/their authorized capacity(ies), and that by tfii5frre/their signature(+) on the instrument the person(+), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

SS my hand and official seal

REBECCA WLKS
Corrnlssbn # 2462475
NaaytuUic-Califomia i
Sar EemedinoComty
My Corrn. Erpiles Sep.9,2m7
Notary Signature (Notary Public Seal)

ADDITIONAL OPTIONAL INFORMATION

DESCRIPTION OF THE ATTACHED DOCUMENT
Cudahy bond
(Title or description of attached document)
(Title or description of aftached document continued)
Number of Paoes Document Date
www. NotaryClasses.com 800-87 3^S465

INSTRUCTIONS FOR COMPLETING THIS FORM
This forn complies wilh cttrrent California statules regarding notar2- wording and, fneeded, should be compleled and attached to lhe document. Acknowledgments from other states moy be completedfor doctonents beingsenl to ilnl state so long as the tording does not require the Calfornia notary lo violate California notary lav.
o State and County information must be the State and County where the document signer(s) personally appeared before the notary public for acknowledgment. o Date of notarization must be the date that the signer(s) personally appeared which must also be the same date the acknowledgment is completed. . The notary public must print his or her name as it appears within his or her commission followed by a comma and then your title (notary public). . Print the name(s) of document signer(s) who personally appear at the time of notarization.
. Indicate the corroct singular or plural forms by crossing off inconect forms (i.e. he/she/thea- is /arc ) or circling the correct forms. Failure to correctly indicate this information may lead to rejection of document recording. . The notary seal impression must be clear and photographically reproducible.

Impression must not cover text or lines. If seal impression smudges, re-seal if a sufficient area permits, otherwise complete a different acknowledgment form. . Signature ofthe notary public must match the signature on file with the office of the county clerk.
+ Additional information is not required but could help to ensure this acknowledgment is not misused or attached to a different document. * Indicate trtle or type ofattached document, number ofpages and date. * Indicate the capacity claimed by the signer. lf the claimed capacity is a corporate officer, indicate the title (i.e. CEO, CFO, Secretary). o Securely attach this document to the signed document with a staple.

CAPACITY CLAIMED BY THE SIGNER
tr lndividual (s)
tr Corporate Officer
(Title)
Partne(s)
Attorney-in-Fact
Trustee(s)
Other
tr
n
tr
D

CALIFORNIA ALL.PURPOSE ACKNOWLEDGMENT ctvtL coDE s 1189 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached. and not the truthfulness, accuracy, or validity of that document.

State of Connecticut
County of Hartford
On March 15. 2024 before me,
Oote
Steohanie H Notarv Public
Here lnsert Nome ond Title of the Officer
Personally appeared Michelle Anne McMahon
Name(s) of Signe(s)
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), andthat by his/her/their signature(s) on the instrumentthe person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERIURY under the laws of the State ofConnecticut that the foregoing paragraph is true and correct.
3TEPHANIE HARVEY
NOTARY PWAC - CT 185862
lvty Commision Expires Mar, g\2V21
Signature
Signoture of Notory Public
Stephanie Harvey
Ploce Notory Seal Above
oPnoNAL----
Though this section is optional, completing this inlormotion con deter alterotion ol the document or froudulent reattochment of this form to on unintended document.

Description of Attached Document
Title or Type of Document Document Date
Number of Pages Signer(s) OtherThan Named Above
Capacity(ies) Claimed bySigner(s)
Signer's Name Signer's Name
I Corporate Officer-Title(s)
Limited General
Attorney in Fact
Guardian or Conservator
official seal
Corporate Officer-Title(s)
Partner Limited General
Attorney in Fact
WITNESS my
I Partner
I tndividual
tr
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tr
trtrtr ndividual
I frustee
Eotn",
ETrustee
El o,r,",.

I Guardian or Conservator
Signer ls Representing Liberty Mutual lnsurance Company Signer ls Representing

This Power of Attorney limits the acts of those named herein, and they have no authority to bind the Company except in the manner and to the extent herein stated.

Liberty Mutual lnsurance Company
The Ohio Casualty lnsurance Company
West American lnsurance Company

POWER OF ATTORNEY
KNOWN ALL PERSONS BY THESE PRESENTS: That The Ohio Casualty lnsurance Company is a corporation duly organized under the laws of the State of New Hampshire, that under the laws of the State of lndiana (herein collectively called the "Companies"), pursuant to and by authority herein setforth, does hereby name, constitute and appoint, Connor Wolpert, Doritza Mojica, Gentry Stewart, Jennifer Godere, Jonathan Gleason, Joshua Sanford, Kathryn Pryor, Kyle Williams, Michelle Anne McMahon, Nicholas Miller. Richard Hackner, Robyn Salley. Sarah Munha
all of the city of Hartford state of CT each individually if there be more than one named, its true and lawful attorney-in-fact to make, of these presents and shall be as binding upon the Companies as if they have been duly signed by the president and attested by the secretary of the Companies in their own proper pers0ns.
lN WTNESS WHEREOF, this Power of Attomey has been subscribed by an authorized officer or official of the Companies and the corporate seals of the Companies have been afflxed thereto this 22nd day of August 2023
Liberty Mutual lnsurance Company
The 0hio Casualty lnsurance Company
West American lnsurance Company
By
David M. Carey, Assistant Secretary
State of PENNSYLVANIA
County of M0NTGOMERY
0n this 22nd day of August 2023
Casualty Company, and West
before me personally appeared David M. Carey, who acknowledged himself to be the Assistant Secretary of Liberty Mutual American lnsurance Company, and that he, as such, being authonzed so to do, execute the foregoing instrument for the purposes contained by signing on behalf of the corporations by himself as a duly authorized officer lN WITNESS WHEREOF, I have hereunto subscribed my name and affixed my notarial seal at Plymouth lvleeting, Pennsylvania, on the day and year first above written.

Libertv
Mutudl. Certificate No: 8210646 - 985949
SURETY
Commonweallh of Pennsylvania - Notary Seal
Teresa Pastella, Notary Public
l\4ontgomery County
My commission erpires l/atch 28, 2025
Commission number 1126044
By: /-fr//,
Company, and West American lnsurance Company which resolutrons are now in full force and effect reading as follows:

ARTICLE lV - oFFICERS: Section 12 Power of Attorney.
may prescribe, shall appoint such attomeys-in-fact, as may be necessary to act in behalf of the Corporation to make, execute, seal, acknowledge and deliver as surety any and all be as binding as if signed by the President and attested to by the Secretar. Any power or authority granted to any representative or attorney-in-fact under the provisions of this article may be revoked at any time by the Board, the Chairman, the President or by the officer or officers granting such power or authority.

ARTICLE Xll - Execution of Contracts: Section 5. Surety Bonds and Undertakings.

Any officer of the Company authonzed for that purpose in writing by the chairman or the president, and subject to such limitations as the chairman or the president may prescnbe, shall appoint such attorneys-injact, as may be necessary to act in behalf of the Company to make, execute, seal, acknowledge and deliver as surety any and all unde(akings, Company by their signature and execution of any such instruments and to attach thereto the seal of the Company. When so executed such instruments shall be as binding as if signed by the president and attested by the secretary.
fact as may be necessary to acl on behalf of the Company to make, execute, seal, acknowledge and deliver as surety any and all undertakings, bonds, recognizances and other surety obligations.

Company, wherever appeanng upon a certrfied copy of any power of attorney issued by the Company in connection with surety bonds, shall be valid and binding upon the Company with the same force and effect as though manually affixed.
has not been revoked.
lN TESTIMoNY WHEREOF, I have hereunto set my hand and affixed the seals of said Companies this I 5th day of March , 2024 =(5
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Ll\rS-12873 Ll\rlc OCIC WAIC Multi Co 02121
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Assistant Secretary
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“Serving The People” "Sirviendo A La Comunidad"
Staff Report
12/03/2024 Page 1 of 3

STAFF REPORT
Date: December 3, 2024
To: Honorable Mayor and City Council Members
From: Alfonso Noyola, City Manager
Prepared by: Cecilia Madrigal-Gonzalez, Senior Planner
Concurrence: Juan Arauz, AICP, Assistant City Manager/Community Development Director.

Subject: A Public Hearing to Consider and Adopt Resolution No. 24-38 of the City of Cudahy City Council to Approving Changes to the Community Development Block Grant (“CDBG”) Fiscal Year 2024-25 to Cancel CDBG Program 602616-24, Entitled, “Camp Commerce” and Reprogram this Project’s Unspent Balance in the amount of $10,000 and Unallocated Funds in the amount of $39,113 into Two (2) Upcoming FY 2024-25 CDBG Eligible Programs, Youth Services and Food Distribution

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

1. Open the public hearing, receive public comment, and presentation from City staff; and

2. Adopt Resolution No. 24-38 (Attachment A) approving the cancellation of the CDBG Program 602616-24, entitled, “Camp Commerce” and reprogram this Project’s Unspent Balance in the amount of $10,000 and Unallocated Funds in the amount of $39,113 into two (2) Upcoming FY 2024-25 CDBG Eligible Programs, Youth Services and Food Distribution; and

3. Authorize the City Manager, or his or her designee, to make adjustments to the CDBG project applications and CDBG agreements, due to programmatic interpretations by the Los Angeles County Community Development Authority (“LACDA”).

Item Number
13A

“Serving The People” "Sirviendo A La Comunidad"
Staff Report
12/03/2024 Page 2 of 3

BACKGROUND
The City of Cudahy receives federal CDBG funds from the U.S. Department of Housing and Urban Development (“HUD”) as administered by LACDA. The funds must be used to meet national objectives to develop viable communities and to serve low- and moderate-income populations. Use of these funds also requires compliance with statutory requirementsincluding financial, environmental review, procurement, construction, eligibility, reporting, and citizen participation. The primary national objectives of the CDBG program are to undertake activities that benefit low and moderate‐income persons and/or eliminate slum and blight conditions.

The program requires that a minimum of seventy percent (70%) of the program funds be spent on activities that benefit low and moderate‐income persons (Attachment B ‐ 2024 HUD Income Limits).

On February 20, 2024, the City Council approved Resolution No. 24-03 allocating the City’s CDBG funding for FY 2024-25 in the amount of $328,872 to the following programs/projects:

Owner Occupied Housing Rehabilitation, Business Assistance, Code Enforcement and Camp Commerce. Later, on March 5, 2024, the City Council approved Resolution No. 24-04 approving Substantial Amendment No. 1 authorizing the new CDBG Program, First-Time Home Buyer Down Payment Assistance in the amount of $150,000 using the City’s allocated funds.

In September 2024, the City’s Community Services Department partnered with Nunez & Nunez to offer camping trips to Cudahy high school students ages 14-18. Due to this partnership, the CDBG funding was no longer needed to offer a similar experience previously provided by the Camp Commerce Program. Thus, CDBG funds in the amount of $10,000 are available for reprogramming into eligible new or continuing CDBG projects.

DISCUSSION
Under the LACDA CDBG Program, participating cities are required to expend CDBG project funds in a timely manner or risk loss of CDBG funds. In order to fully utilize available CDBG funds it sometimes becomes necessary to cancel projects or programs that are not ready or cannot be completed prior to the expirations of funds and to reprogram these funds to other eligible projects/programs. As such, the City recommends recapturing $10,000 unspent funds and $39,113 of Unallocated balance to fund the following CDBG programs:

NEW PROGRAMS/PROJECTS IN FY 24-25:
• Food Distribution Program: (Returning Program) This Program would provide a monthly food distribution for low-income and moderate-income Cudahy residents. CDBG Funds would be used to cover increased costs to procure additional goods to be distributed to the public, cover personnel costs needed to allow staff to distribute goods to the public, and cover non-personnel costs such as vehicle services to pick up goods and supplies.

“Serving The People” "Sirviendo A La Comunidad"
Staff Report
12/03/2024 Page 3 of 3

Amount: $20,000.00
• Youth Services Program: The Program would also allow the City to offer youth scholarships for participating in City hosted or sponsored sports activities. CDBG funds would be used to cover non-personnel and direct costs. Amount: $29,113.00 The above-proposed programs are considered public service programs and are capped at 15% of new entitlement funds within the FY. FY 24-25, the capped public service program amounts to $49,113.

STRATEGIC PLAN IMPACT

The proposed CDBG programs for FY 2024-25 align with the following Strategic Plan goals:
• Goal A, Strategy #1. Facilitate the ability to provide sports and increase participation for Cudahy residents of all ages, abilities, and backgrounds.

FINANCIAL IMPACT
Should the recommended new programs and authorization of the Unallocated Funds in FY 2024-25 be approved by the City Council, the CDBG Funds for each program would be incorporated into the City’s FY 2024-25 Adopted Budget, Fund 510. There is no negative impact on the General Fund with this item.

PUBLIC NOTICE
The public hearing notice and notice of cancellation of the Camp Commerce project were notified following CDBG Guidelines as shown in Attachments C and D. As of the writing of this report, no public comments were received.

CONCLUSION
City staff recommends the City Council review, provide feedback, and approve Resolution No. 24-38 on the recommended actions regarding Community Development Block Grant (CDBG) funding for Fiscal Year 24-25 and the unallocated CDBG balance.

ATTACHMENTS
A. Draft City Council Resolution No. 24-38
B. 2024 HUD Income Limits
C. Project Cancellation Public Notice with Attestation
D. New FY 24-25 Public Notice with Attestation

RESOLUTION NO. 24-38

A RESOLUTION OF THE CITY OF CUDAHY CITY COUNCIL APPROVING CHANGES TO THE COMMUNITY DEVELOPMENT BLOCK GRANT (“CDBG”) FISCAL YEAR 2024-25 TO CANCEL CDBG PROGRAM 602616-24, ENTITLED, “CAMP COMMERCE” AND REPROGRAM THIS PROJECT’S UNSPENT
BALANCE IN THE AMOUNT OF $10,000 AND UNALLOCATED FUNDS IN THE AMOUNT OF $39,113 INTO TWO NEW PROGRAMS IN FY 2024-25 CDBG ELIGIBLE PROGRAMS, YOUTH SERVICES AND FOOD DISTRIBUTION.

WHEREAS, on August 22, 1974, the President of the United States signed into law the Housing and Community Development Act of 1974 (Act); and WHEREAS, the primary goals of Title I of the Act are the development of viable urban communities by providing decent housing and a suitable living environment, and expanding economic opportunities, principally for persons of low and moderate income; and
WHEREAS, the City of Cudahy (“City”) has received $328,872 in federal CDBG funds during Fiscal Year 2024-25; and
WHEREAS, on February 20, 2024, the City Council adopted Resolution No. 24-03 allocating the City’s CDBG funding for Fiscal Year 2024-25 to the following programs:

Owner Occupied Housing Rehabilitation, Business Assistance, Code Enforcement and Camp Commerce.

WHEREAS, on March 5, 2024, the City Council adopted Resolution No. 24-04 approving Substantial Amendment No. 1 authorizing a program, First-Time Home Buyer Down Payment Assistance, utilizing $150,000 of unallocated monies from the CDBG balance from previous fiscal years; and
WHERAS, the City Council acknowledges the cancellation of CDBG Program 602616- 24, entitled, “Camp Commerce;” and
WHERAS, the City Council authorized the adoption of two (2) new CDBG Programs in Fiscal Year 2024-25, Youth Services utilizing $19,113 of unallocated monies and $10,000 recapturing unspent funds and Food Distribution utilizing $20,000 of unallocated monies; and
WHEREAS, the City has published information regarding eligible activities under the Act and has conducted a public hearing to solicit suggestions from the community for the utilization of these funds.

NOW, THEREFORE, BE IT RESOLVED,
Section 1: The Cudahy City Council hereby approves two new programs to the CDBG funds for FY 2024-25 for the following purposes:

Attachment A Page 58 of 1219
Resolution No. 24-38

Youth Services Program $ 29,113
Food Distribution $ 20,000
Grand Total $ 49,113
Section 2: The City Council authorizes the City Manager or his or her designee, to adjust the Program budget as necessary throughout the Fiscal Year. This includes, but is not limited to, allocating amounts on a per project basis, adjust project budgets, implementing a new or cancelling existing activities, to allow for the timely expenditure of CDBG-funds.

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Cudahy at its regular meeting on this 3rd day of December 2024.

Jose R. Gonzalez
Mayor
ATTEST:

Richard Iglesias
City Clerk

Resolution No. 24-38

CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS:

CITY OF CUDAHY )
I, Richard Iglesias, City Clerk of the City of Cudahy, hereby certify that the foregoing Resolution No. 24-38 was passed and adopted by the City Council of the City of Cudahy, signed by the Mayor and attested by the City Clerk at a regular meeting of said Council held on the 3rd day of December 2024, and that said Resolution was adopted by the following vote, to-wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

Richard Iglesias
City Clerk

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FY 2024 Income Limits Documentation System
HUD.gov HUD User Home Data Sets Fair Market Rents Section 8 Income Limits MTSP Income Limits HUD LIHTC Database FY 2024 Income Limits Summary
FY 2024
Income
Limit Area
Median Family Income
Click for More Detail
FY 2024 Income Limit
Category
Persons in Family
1 2 3 4 5 6 7 8
Los
AngelesLong
BeachGlendale,
CA HUD
Metro
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$98,200
Very Low (50%) Income
Limits ($)
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48,550 55,450 62,400 69,350 74,900 80,450 86,000 91,550 Extremely Low Income
Limits ($)*
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29,150 33,300 37,450 41,600 44,950 48,300 51,600 54,950 Low (80%) Income
Limits ($)
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77,700 88,800 99,900 110,950 119,850 128,750 137,600 146,500 NOTE: Los Angeles County is part of the Los Angeles-Long Beach-Glendale, CA HUD Metro FMR Area, so all information presented here applies to all of the Los Angeles-Long Beach-Glendale, CA HUD Metro FMR Area. HUD generally uses the Office of Management and Budget (OMB) area definitions in the calculation of income limit program parameters. However, to ensure that program parameters do not vary significantly due to area definition changes, HUD has used custom geographic definitions for the Los Angeles-Long Beach-Glendale, CA HUD Metro FMR Area.

The Los Angeles-Long Beach-Glendale, CA HUD Metro FMR Area contains the following areas: Los Angeles County, CA; * The FY 2014 Consolidated Appropriations Act changed the definition of extremely low-income to be the greater of 30/50ths (60 percent) of the Section 8 very low-income limit or the poverty guideline as established by the Department of Health and Human Services (HHS), provided that this amount is not greater than the Section 8 50% very low-income limit. Consequently, the extremely low income limits may equal the very low (50%) income limits.

Income Limit areas are based on FY 2024 Fair Market Rent (FMR) areas. For information on FMRs, please see our associated FY 2024 Fair Market Rent documentation system.

For last year's Median Family Income and Income Limits, please see here:

FY2023 Median Family Income and Income Limits for Los Angeles-Long Beach-Glendale, CA HUD Metro FMR Area Update URL for Bookmarking or Emailing
Attachment B

Attachment C

Attachment D

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“Serving The People” "Sirviendo A La Comunidad"
Staff Report
12/3/2024 Page 1 of 4

STAFF REPORT
Date: December 3, 2024
To: Honorable Mayor/Chair and City Council/Agency Members From: From: Alfonso Noyola, City Manager/Executive Director By: Joshua Calhoun, Finance Director
Subject: A Public Hearing to Adopt Resolution No. 24-39, Establishing New Registration Fees for Rental Units Pursuant to Cudahy Municipal Code (“CMC”) Chapter 5.13, Rent Stabilization

RECOMMENDATION
City staff is recommending the City Council take the following action(s):

1. Open the public hearing and receive public comment; and

2. Adopt Resolution No. 24-39 (Attachment A) establishing an annual rental registration fee of $126.00 and rental unit exemption fee of $91.00, subject to late fees and annual consumer price index (“CPI”) adjustments, based on the recommendation of the RSO and TPO cost of services study (Attachment B).

BACKGROUND

1. On June 6, 2023, the City Council adopted Ordinance No. 736Rent Stabilization (“RSO”), adding Chapter 5.13 to Title 5 of the CMC and Ordinance No. 737 Just Cause Tenant Protections adding Chapter 5.14 to the CMC (“TPO”). The RSO and TPO went into effect on July 7, 2023.The RSO regulate rental increase for certain tenancies, requires landlords to register rental units, and establish administrative procedures while the TPO regulates evictions protections and prohibits landlord retaliation and harassment. The RSO and TPO went into effect on July 7, 2023.

2. Pursuant to CMC Section 5.13.100 (Rental Unit Registration), by July 1st of each subsequent year, a landlord must register with the Community Development Department each rental unit that is rented or available for rent by filing a rental registration. As such, in March 2024, the Housing Division established an “interim” rental registry. This temporary rental registry Item Number
13B

“Serving The People” "Sirviendo A La Comunidad"
Staff Report
12/3/2024 Page 2 of 4

was established to allow landlords to register rental units while the City implemented a rental registry fee and established an online rental registry portal.

3. To determine the recommended rental registration fee to recover the City’s reasonable costs to implement, administer and enforce the RSO and TPO, City staff requested proposals for a cost study from qualified firms through the Request for Proposals (“RFP”) process.

4. On May 29, 2024, the City Manager entered into an agreement with Revenue and Cost Specialists, LLC (“RCS”) to conduct a RSO and TPO cost of services study (“Program Fee Study”).

On October 31, 2024, RCS completed the Program Fee Study (Attachment B) which recommends the City implement a $91 rental registry exemption fee and annual $126 rental registry fee.

ANALYSIS
RCS worked with the Community Development and Finance Department City staff to first determine the projected budget, which includes both direct and indirect operating costs such as salary and employee benefits, operational services, overhead expenses and administrative costs. As shown in Tables 8 (Salary & Employee Benefits Costs) and 9 (Projected Rent Stabilization Program Budget) of the Program Fee Study (Attachment B, pp. 19-20), the City’s projected operating costs is $518,438.

RCS further analyzed the City’s current staffing to determine if additional staffing was necessary to deliver adequate services of the RSO and TPO. As shown in Table 7, Allocation of Staff Time (Attachment B, pp. 16-18), the City’s current staffing time which includes the Community Development Director, Senior Planner, Community Preservation Manager, Associate Planner, and Housing Specialist II is adequate. As such, there is no recommendation to increase staffing needs at this time.

Lastly, RCS identified an estimated 4,194 residential rental units subject to the City’s RSO and estimated 245 rental units requiring a rental unit exemption.

Recommendation
Based on the results in the Program Fee Study a $126 annual rental unit registration fee is recommended. This fee is calculated by taking the total projected annual cost of the RSO and TPO Programs, divided by the estimated number of residential rental subject to the RSO. As allowed by CMC Section 5.13.100(4), a landlord may recover 50-percent of the registration fee from the tenant of the rental unit, which would equate to $5.24 per month, for a total of $62.88.

“Serving The People” "Sirviendo A La Comunidad"
Staff Report
12/3/2024 Page 3 of 4

Further, a separate fee of $91 would be charged for properties that are requesting an exemption as permitted in the RSO, which includes two-unit properties with the property owner residing in one of the units. A property owner would need to re-apply for the exemption every year. This fee may also be used to determine eligibility of properties where there may be uncertainty regarding the RSO applicability as a one-time exemption fee.

For fiscal year 2024-2025 the registration fee will be imposed beginning February 1, 2025 at a pro-rated fee based on a monthly factor. Commencing the fiscal year 2025-2026, and each fiscal year thereafter, the registration fee shall be paid by July 1, of each year.

The amount of annual revenue generated by these fees, there would be with the assumption that there would be a 100% compliance with a total estimated revenue of $519,869 to fully recover the City’s estimated costs of $518,438. A low level of compliance or fluctuating number of rental units would result in lower revenue to be generated from the fees.

Pursuant to CMC Section 5.13.140, landlords who fail to register and make the requirements payments are already subject to administrative fines and citations. However, the Program Fee Study recommends implementing late fees for late registrations. After year one, landlords have already registered and with a late fee there would be an incentive to renew the rental registration in a timely manner. The following late fee for the City is based upon best practices from other jurisdictions with a rent stabilization ordinance.

Proposed Late Fees Total Fees & Fines
If paid late, 30 days or less past due date Registration Fee + 10% of remaining balance due If paid 31 to 60 days past due date Registration Fee + 25% of remaining balance due If paid after 60 days past due date Registration Fee + 50% of remaining balance due

CONCLUSION
City staff has reviewed the Program Fee Study and concurs with the recommendations made by RCS to recover the City’s reasonable costs to implement, administer and enforce the RSO and TPO based on the Program Fee Study. It is recommended that the City Council approve Resolution No. 24-39, establishing a $126.00 annual rental registration fee and $91.00 rental unit exemption, subject to subject to late fees and annual consumer price index (“CPI”) adjustments based on the Program Fee Study and pursuant to the City’s RSO and TPO.

STRATEGIC PLAN CORRELATION
None.

“Serving The People” "Sirviendo A La Comunidad"
Staff Report
12/3/2024 Page 4 of 4

FINANCIAL IMPACT
The annual cost of the City’s Rent Stabilization and Tenant Protections Program is projected to be $518,438. This includes existing staff costs, overhead, office and administrative expenses, contract and consulting services, and non-staff overhead. Depending on the level of compliance, the proposed fee will generate approximately $519,869.

ATTACHMENTS
A. Resolution No. 24-39
B. Cost of Services Study – Rent Stabilization Program

RESOLUTION NO. 24-39

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

CUDAHY ESTABLISHING RENTAL REGISTRATION FEES FOR

THE RENTAL REGISTY PURSUANT TO CUDAHY MUNICIPAL
CODE CHAPTER 5.13, RENT STABILIZATION.

WHEREAS, on June 6, 2024, the City Council of the City of Cudahy (“City Council”) adopted Ordinance No. 736, Rent Stabilization (“RSO”) and Ordinance No. 737, Just Cause Tenant Protections (TPO), which added Chapter 5.13 “Rent Stabilization” and Chapter 5.14 “Just Cause Tenant Protections” to Title 5 of the Cudahy Municipal Code (“CMC”) and both went into effective on July 7, 2023; and
WHEREAS, pursuant to CMC Section 5.13.100(3), the City Council shall, by resolution, establish a rental unit registration fee to recover the City of Cudahy’s (“City”) reasonable costs to implement, administer and enforce the RSO and TPO; and
WHEREAS, the City retained a Revenue and Cost Specialists, LLC (“Consultant”) to prepare a comprehensive RSO and TPO cost of services fee study (“Program Fee Study”) to determine the appropriate rental registration fees necessary to recover the City’s costs associated with the RSO and TPO following a rigorous methodology and analysis; and WHEREAS, the fees imposed is a function of projected annual operating costs by the City of approximately $518,438, an estimated number of rental units subject to the Ordinance of 4,194 and achieving high registration compliance; and
WHEREAS, on December 3, 2024, at a duly noticed public hearing, the City Council considered the proposed fees and approved the adoption of said fees by this Resolution; and WHEREAS, the fees established herein bear a reasonable relationship to the overall costs of administering and enforcing the RSO and TPO; and

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

SECTION 1. The City Council, after consideration of the Program Fee Study dated October 31, 2024 (Exhibit A), staff report and presentation, discussion, oral testimony, and evidence presented to the City Council, hereby finds that the above recitals are true and correct and incorporate them herein.

SECTION 2. An annual rental registration fee of $126 (one-hundred and twenty-six dollars) per unit per year is imposed on every property owner of residential real property for each rental unit that is subject to the RSO as described in CMC Section 5.13.100. Additionally, a rental registry exemption fee of $91 (ninety-one-dollars) per unit per year is imposed to a property owner of residential real property for each rental unit that is claiming an exemption from the RSO as permitted and described in CMC Section 5.13.040.

SECTION 3. For fiscal year 2024-2025, the registration fee will be imposed beginning February 1, 2025, at a pro-rated fee based on a monthly factor. Commencing with fiscal year 2025-2026, and each fiscal year thereafter, the registration fee shall be paid by July 1 of each Attachment A Page 71 of 1219
Resolution No. 24-39

year (“Due Date”). Property owners paying the registration fee after a 30 day grace period shall be considered (“Past Due”), shall pay, in addition to the registration fee, late charges as follows:

Ten percent (10%), if paid less than 30 days from the past due date, ; Twenty-five percent (25%), if paid within 31 to 60 days from the past due date; and Fifty percent (50%), if paid after 60 days past the due date.

SECTION 4. The City Council further authorizes and directs the City Manager to take all actions necessary and appropriate to implement and effectuate the intent of the City Council as set forth in this Resolution and CMC Section 5.13.140.

SECTION 5. Subject to all applicable laws, the City Council hereby authorizes the City Manager to execute any ancillary documents relating to the established fees for the registration of rental units intended to recover the City’s reasonable costs associated with the administration and enforcement of the City’s RSO and TPO.

SECTION 6. The registration fees shall be reviewed on an annual basis and adjusted, if necessary, using the Consumer Price Index (CPI) of the Bureau of Labor Statistics (Average Price Data).

SECTION 7. The City Clerk shall attest and certify to the passage and adoption of this Resolution, enter it into the book of original Resolutions, and it shall become effective immediately upon its approval.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Cudahy at its regular meeting on this 3rd day of December 2024.

Jose R. Gonzalez
Mayor
ATTEST:

Richard Iglesias
City Clerk

Resolution No. 24-39

CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS:

CITY OF CUDAHY )
I, Richard Iglesias, City Clerk of the City of Cudahy, hereby certify that the foregoing Resolution No. 24-39 was passed and adopted by the City Council of the City of Cudahy, signed by the Mayor and attested by the City Clerk at a regular meeting of said Council held on the 3rd day of December 2024, and that said Resolution was adopted by the following vote, to-wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

Richard Iglesias
City Clerk

Resolution No. 24-39

EXHIBIT A
Program Fee Study

COST OF SERVICES STUDY:

CITY OF CUDAHY RENT STABILIZATION PROGRAM
OCTOBER 31, 2024
Prepared by:

Revenue & Cost Specialists, LLC
1519 E Chapman Ave, Ste C
Fullerton, CA 92831
www.revenuecost.com
Copyright, 2024 by Revenue & Cost Specialists
Attachment B Page 75 of 1219
Cost of Services Study: City of Cudahy Rent Stabilization Program Page | 2

Cost of Services Study: City of Cudahy Rent Stabilization Program Page | 3 October 31, 2024
City of Cudahy
5220 Santa Ana St
Cudahy, CA 90201
Honorable Mayor, City Council, and City Manager:

OnJune 6, 2023,theCityCouncil adoptedOrdinance736Rent StabilizationOrdinance, adding a new chapter 5.13 to Title 5 of the Cudahy Municipal Code to regulate rent increases for certain tenancies while providing landlords an ability to receive a fair return on their rental property. The Ordinance requires a rental registration, which is currently being handled through the City’s website, where landlords register and update their rental units and information, update tenancy information, submit notices for evictions, and pay the annual Rental Registration Fee. The plans to contract for an online portal to better manage registration and improve enforcement.

On June 6, 2023, the City Council adopted Ordinance 737, amending in its entirety Chapter 5.14 of Title 5 of the Cudahy Municipal Code regarding Tenant Protections. The Ordinance purpose is to reasonably regulate cause evictions to as to be more protective than State law. Further, it regulates evictions for certain tenancies, relocation assistance for certain no-fault evictions and prohibits landlord retaliation and harassment.

Cudahy is developing the Rent Stabilization Program within the Housing Division in the Community Development Department, to enforce the Rent Stabilization Ordinance and Tenant Protections Ordinance. As permitted in CMC Chapter 5.13, the registration fee is being established to fund the City’s cost to implement, administer, monitor, support, and enforce the provisions of the rent stabilization regulation and tenant protection ordinances. Section 5.13.100.X states that the landlord may recover 50% of the registration fee from the tenant.

To fulfill its statutory requirement, the City of Cudahy issued a Request for Proposals seeking proposals for a Rent Stabilization Program Comprehensive Fee Study. Following this competitive procurement process, Revenue & Cost Specialists (“RCS”) were selected and approved by the City and entered into an Agreement with the City to conduct this Fee Study.

Cost of Services Study: City of Cudahy Rent Stabilization Program Page | 4 RCS is now providing the City of Cudahy (“City”) with a comprehensive Fee Study identifying the appropriate fees to recover all costs associated with the Rent Stabilization Program. Since the rent stabilization and tenant protections programs are a new endeavor for the City, reasonable and evidence-based assumptions were made in the areas of staff time allocation and number of task participants. Where possible, we benchmarked with data from other cities that have a rent stabilization ordinance. Our Fee Study focused on calculating the lowest fee reasonably possible to operate the programs successfully. The Rental Registration Fee is required to offset the plan as presented in this report. The program’s Registration Exemption Fee is to exempt units occupied by the property owner or family member from the City’s rent control regulations.

Service
Proposed
Fee # of Units
Projected
Budget
Registration Exemption Fee $91 245 $22,295
Rental Registration Fee $126 3,949 $497,574
Total 4,194 $519,869
Based on our analysis, RCS recommends the adoption and enforcement of the proposed Rent Stabilization Program fees. Additional funding and dedicated City staff are needed to effectively provide services to the 4,086 rental units. The Registration Exemption Fee is based on a one hour average of theAssociate Planner andHousing Specialist II, atthe fullyburdenedhourlyrate. This equates to $91 to process an exemption from the rental registration and rent control. The remaining time and budget for each option are spread equally among the number of units to calculate the $126 Rental Registration Fee. Section 5.13.100(4) of Ordinance 736 allows the landlord to recover 50% of the registration fee from each unit’s tenant. This equates to $5.25 per month for each renter living in a rental unit.

Respectfully submitted,

CHU THAI
Partner

Cost of Services Study: City of Cudahy Rent Stabilization Program Page | 5

TABLE OF CONTENTS
CHAPTER I – THE NEED FOR USER FEES............................................................................................................................................. 6 CHAPTER II – IDENTIFYING PROGRAM USERS ................................................................................................................................. 9 CHAPTER III – ALLOCATING TIME AND UNITS...............................................................................................................................13 CHAPTER IV – CALCULATING COSTS AND FEES.............................................................................................................................19 CHAPTER IV – COST RECOVERY RECOMMENDATIONS ..............................................................................................................22 APPENDIX A: RENT STABILIZATION ORDINANCE AND TENANT PROTECTION ORDINANCE................................. 23 APPENDIX B: CUDAHY PARCEL DATA SUMMARY..........................................................................................................................81 APPENDIX C: ANNUAL REPORT SERVICE METICS........................................................................................................................84 APPENDIX D: SURVEY OF RENT STABILIZATION PROGRAMS................................................................................................85 APPENDIX E: RENT STABILIZATION POLICIES (2023)...............................................................................................................88

Cost of Services Study: City of Cudahy Rent Stabilization Program Page | 6 CHAPTER I – THE NEED FOR USER FEES
Impact of Propositions 13, 4, 218 and 26
Proposition 13 was passed by California voters in 1978, forever changing city budgets. Prior to 1978, cities and counties balanced their budgets with a
property tax formula. The property tax
payments increased dramatically year to
this year, this created a hardship for those
with fixed incomes. Proposition 13 capped
property tax rates at 1%, with an annual
inflation increase of no more than 2%. The
passage of Proposition 13 immediately
reduced property tax payments from
homes, businesses, and farms by 57%.

The following year, Proposition 4 was
passed to clarify language related to taxes
and appropriations limits after the wake of
Proposition 13. Section 8(c) defines user
charges and user fees as:
“Proceeds of taxes” shall include, but not be restricted to, all tax revenues and the proceedsto an entity of government, from (1) regulatory licenses, user charges, and user fees to the extent that those proceeds exceed the costs reasonably borne by that entity in providing the regulation, product, or service…”
The Section above clarifies that any proceeds from user charges and user fees that exceed the “costs reasonably borne” are considered taxes. The legal ability for government agencies to charge fees in California in the wake of all the changes brought by Proposition 13 stated in the section above. The importance, and the deeper meaning, is detailed in this section of the author’s intent documents:
“The phrase ‘costs reasonably borne by such entity in providing the regulation, product, or service’ isintended to incorporate all appropriations by an entity for reasonable costs appropriate for the continuation of service over time. This includes ongoing expenses, such as operation costs and a reasonable allocation for overhead and administration, but it also includes responsible allocations for capital replacement, expansion of services, and repayment of related bond issuances would be considered ‘costs reasonably borne’.” In November 1996, Proposition 218 passed and became Articles XIIIC & D, further restricting municipal utility rates charged on property owners. Propositions 13, 4 and 218 have had, and will continue to have, a profound effect on California governments.

Cost of Services Study: City of Cudahy Rent Stabilization Program Page | 7 The passage of Proposition 26, passed in 2010, codified many fee setting practices of the previous 30 years.

Article XIII C of the State Constitution was amended to formally declare that fees are not considered taxes if they do not exceed the reasonable costs of the service. Government Code Section 66014 further defined that statement for development fees. Some of the types of services for which reasonable fees are allowable are:
• A charge imposed for a specific benefit conferred or privilege granted directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of conferring the benefit or granting the privilege.
• A charge imposed for a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of providing the service or product.
• A charge imposed for the reasonable regulatory costs to a local government for issuing licenses and permits, performing investigations, inspections, and audits, enforcing agricultural marketing orders, and the administrative enforcement and adjudication thereof.

Article XIII C also provides that a local government agency must demonstrate that the amount of revenue to be generated by a fee is no more than necessary to cover the reasonable costs of the governmental activity supported by the fee, and that the manner in which those costs are allocated to a payor bear a fair or reasonable relationship to the payor’s burdens on, or benefits received from, the governmental activity. For example, a fee on liquor store owners to fund an alcohol education program would not be allowed.

While Proposition 26 was built on the foundations of Propositions 4 and 218, it provided a sharper definition of the reach and limits of service fees, and the courts have looked to it when reviewing fee challenges.

California Tenant Protection Act of 2019
The California Tenant Protection Act of 2019 went into effect on January 1, 2020 and caps rent increases statewide for qualifying units at either 5% plus the increase in the regional consumer price index (CPI), or 10% of the lowest rent charged at any time during the 12 months prior to the increase—whichever is less.

It is interesting to note that, with inflation (and thus regional CPI) skyrocketing in 2022-2023, the entire state met the 10% of lowest rent threshold rather than the CPI-based threshold, allowing landlords statewide to increase rent up to 10% annually.

Communities wanting further control or customization of their rent stabilization policies may pass by ordinance revised policies and limitations. Local rent increase percentage restrictions may be less thanor equal to, but not more than state ceilings. Cudahy rent increase limitations of 5% of local CPI or 3%, whichever is less (CMC 5.13.050), is in compliance with state law.

Additionally, and subject to the rent cap, state law limits rent increases to only twice over any 12-month period, whereas the City’s ordinance allows it only once per year.

Cost of Services Study: City of Cudahy Rent Stabilization Program Page | 8 Legal Approach to User Fees
This Fee Study presents the analytical advantages available to the City through the institution of a comprehensive system designed by RCS to implement Article XIIIB of the California Constitution.

Constitutional Methodology. The methodology used for this analysis is the "costs reasonably borne" test established by Section 8(c) of Proposition 4, now Article XIIIB of the California Constitution. In following that process, RCS has analyzed the ways in which City services can be financed more equitably to assure the City's future financial viability.

Full Business Costs Determined. The methodology followed by both the Authors of Proposition 4, and consequently by RCS, determines the full business cost of providing the reported City services. It also identifies the beneficiaries ofthose services and determines ifthey are paying in relationship to benefits derived or if they are deserving of a subsidy paid from the taxes paid by all local citizens and businesses. This allows the City Council to have full knowledge and visibility into costs that are occurring.

Financial Integrity Established. This text summarizes the work accomplished and presents recommendations.

These recommendations, if implemented, would firmly establish the financial integrity of the analyzed City services, and would establish a continuing cost control system following the business principles, which are generally espoused for government, but often are ignored in application.

Cost of Services Study: City of Cudahy Rent Stabilization Program Page | 9 CHAPTER II – IDENTIFYING PROGRAM USERS
To better understand the service level requirements for the Rent Stabilization Program, we first need to estimate the number of rental units, number of landlords/property owners, and the demand for rent control services under the City’s Rent Stabilization Ordinance and Tenant Protections Ordinance. A higher certainty in the projected numbers will help RCS better estimate the staffing hours and program costs, along with more accurate calculation of the rent control fees. The City will also use these projections to effectively develop and enforce its rent control program.

Table 1: Estimated Number of Renter Occupied Units in Cudahy Source: https://www.point2homes.com/US/Neighborhood/CA/Cudahy-Demographics.html RCS verified Point2point’s chart with the U.S. Census data, presented as Table 2: U.S. Census Bureau QuickFacts for Cudahy and Los Angeles County. Unfortunately, the U.S. Census Bureau does not have the number of housing units for Cudahy, but the percent of owner-occupied housing units between the two tables are the same. The U.S. Census Bureau also estimate an average household size of 3.92 persons per household, which translates to approximately 19,933 of the 21,723 residents living in Cudahy are renters.

Table 2: U.S. Census Bureau QuickFacts for Cudahy and Los Angeles County U.S. Census Bureau
City of
Cudahy
Los Angeles
County
Population estimates July 1, 2023 (V2023) 21,723 9,663,345 Population per square mile, 2020 19,397.10 2,466.90
Housing Units, July 1 N/A 3,675,720
Owner-Occupied housing Unit rate, 2018-2022 11.9% 46.2% Non-Owner Occupied Housing Unit Rate 2018-2022 88.1% 53.8% Median value of owner-occupied housing, 2018-2022 $470,300 $732,200 Median gross rent, 2018-2022 $1,619 $1,805
Households, 2018-2022 5,772 3,363,093
Persons per household, 2018-2022 3.92 2.89
Median household income (in 2022 dollars), 2018-2022 $49,596 $83,411 Per capita income (in 2022 dollars), 2018-2022 $16,472 $41,847 Source: https://www.census.gov/quickfacts/Cudahycitycalifornia?

Cost of Services Study: City of Cudahy Rent Stabilization Program Page | 10 Next, City staff provided RCS with a complete property tax database for the City of Cudahy, which included the situs address, mailing address, property owner name, parcel number, original year built, living area square footage, lot size square footage, use code description, and a unit count, for each parcel. The database included 2,053 rows of data and an initial total of 5,629 housing units. The database categorized every Cudahy parcel into the following land use categories:
• Commercial • Government Owned • Industrial • Institutional • Miscellaneous • Residential • Vacant
From the complete list of parcels within the City, RCS applied Cudahy’s Ordinance 736 to determine which properties are eligible under Cudahy’s Rent Stabilization Program, as well as units exempt from the Program.

While other cities have some unique program eligibility and registration exemption language, Cudahy’s program is straightforward and easy to understand and enforce:

Eligible and Must Register for Rent Stabilization Program:
+ Properties with 3 or more dwelling units are eligible and require registration to the RSP + Mobile home parks are eligible and require registration to the RSP Exempt from Rent Stabilization Program:
- Dwelling units with a certificate of occupancy issued after February 1, 1995 are exempt - Accommodations in hotels, motels, inns, and other short-term housing are exempt - Hospitals, religious facilities, care facilities and subsidized housing are exempt - Any unit that is alienable separate from the title, including Single family residents, condominiums and townhomes are generally exempt
Uncertain:
? Two-unit parcels where the owner occupies one as their primary residence are exempt from the City’s Rent Stabilization Program. However, the City will need to annually review these two-unit parcels to ensure that the owner is still occupying the property.
? Some properties categorized as condominiums or townhomes may be operating as apartments, and City staff will need to make a determination of their Rent Stabilization Program eligibility. ? It is assumed that long-term rental of a bedroom or house sharing is exempt.

Based on comprehensive analysis of the data, RCS estimates that 4,194 housing units are covered under Ordinances 736 and 737 and receive a proportional benefit under the City’s Program. This is approximately 900 less renter occupied units than the Point2Homes and U.S. Census Bureau estimate of 5,084, and likely due to the City’s ordinances excluding housing units that are single family residential, condominium or planned communities.

RCS exempted one-unit condominiums and all housing related properties from the RSP eligibility count, however, City staff should conduct a one-time exemption review for these units. RSP also excluded two-unit properties, where the mailing address is the same as the situs address, because it is likely the property owner lives in one of the units. However, City staff should require registration exemption review annually, in case the owner decides to move and rent out both units one year.

Cost of Services Study: City of Cudahy Rent Stabilization Program Page | 11 Table 3: Cudahy Estimated Rental Units Covered by the City’s Rent Stabilization Program Table 3 above presents the number of rental units covered by the City’s Rent Stabilization Program, the total number of housing units within these categories, and the number of parcels to make up the total number of

Cost of Services Study: City of Cudahy Rent Stabilization Program Page | 12 housing units. The complete list of parcels by category is included as Appendix B in this report.

Rental units in Cudahy are found mostly in residential properties, with a few under the commercial category and Store and Residence Use Description. None were found in the other land use categories. It is safe to assume all multi-unit residential properties are rented out and must comply with the City’s rental registration requirement. For two-unit properties, the property may reside in one or more units but must complete a registration exemption form with the City. Single unit properties are assumed to be exempt from the Rent Stabilization Program. Housing units dated 1995 and newer are exempt.

It will be an ongoing task for the City to enforce rental registration and obtain a good citywide count of rental units. However, such information is necessary to the calculation of the rental registration fee, and for the equitable distribution of city costs among the renters and landlords.

Cudahy’s data file is peculiar, because it shows housing units within the High School category, Light Manufacturing, Vacant Residential, and other categories where one would not expect to see housing units. For this project, RCS reviewed all these properties to ensure that eligible units do not exist there.

Cost of Services Study: City of Cudahy Rent Stabilization Program Page | 13 CHAPTER III – ALLOCATING TIME AND UNITS
Rent Stabilization Program Service Level Assumptions
Since the Cudahy Rent Stabilization Program has been in operation for less than one year, RCS does not have actual data for tasks and services performed by the City. RCS gathered rent control program annual reports from the cities of Alameda, Berkely, East Palo Alto, Oakland, Richmond, San Jose, Santa Monica and West Covina, because they include performance metrics worth reviewing. The metrics gathered will help Cudahy anticipate future workload levels for its program. The table below presents unit counts from rent stabilization program annual reports produced by the cities of Oakland and East Palo Alto. Appendix C contains the full comparison of city annual reports that RCS was able to obtain.

Table 4: Estimated Service Metrics based on Other Cities’ Service Levels Oakland (FY22) - Updated 09/2024
Cudahy
Pro-Rated
TOTAL Units 14,822 Per 100 4,194
Eviction/Vacation Notices (Required for All within City) 807 5.44 228 Pay or Quit 440 2.97 125
Violation of Lease Term 81 0.55 23
Distrubing the Peace & Quiet Enjoyment 54 0.36 15
Engaging in Unlawfual Activity 55 0.37 16
Other 53 0.36 15
Causing Substantial Damage 23 0.16 7
Ellis Act 41 0.28 12
Property Exempt 11 0.07 3
Owner/Relative Move-In (No Fault) 9 0.06 3
Disorderly Conduct 29 0.20 8
Sustantial Repairs Required - Relocation (No Fault) 5 0.03 1 Refusal to Allow Entry 3 0.02 1
Refusal to Sign New Lease 2 0.01 1
Cease and Desist 1 0.01 -
Just Cause Eviction 900 6.07 255
Move-Out Disclosure Certification Forms 414 2.79 117
Move-Out Relocation Agreements 144 0.97 41
Petitions Filed 307 2.07 87
Tenant Petitions 228 1.54 65
Owner Petitions 79 0.53 22
Mediation & Settlement Conferences 47 0.32 13
Petitions (Appeals) Submitted to Board 307 2.07 87
Appealable Decisions 37 0.25 10
Number of Appeals Heard 36 0.24 10
Resolved at End of FY 35 0.24 10
Workshops (virtual) 18 0.12 5
Tenant & Property Owners 8 0.05 2
Small Property Owners 3 0.02 1
COVID-19 & Eviction Moratorium 1 0.01 -
Tenants' Rights (English) 3 0.02 1
Tenant's Rights (Spanish) 1 0.01 -
Rent Control & Evictions 2 0.01 1
Counseling Sessions Conducted 3,672 24.77 1,039

Cost of Services Study: City of Cudahy Rent Stabilization Program Page | 14 If Cudahy’s Rent Stabilization Program performs at similar levels as the cities of East Palo Alto and Oakland, then Cudahy could need adequate staffing to manage 87-113 petitions per year, or an average of 7-9 petitions per month. Cudahy staff could respond to 2,122 public inquiries per year, or 10 inquiries per day. Notices to Vacate/Change in Tenancy would vary between 228 and 303, which means Cudahy would be tracking 5 movein/move-out per week. Cumulatively, providing these services will require thousands of hours of City staff time.

Staffing Level Assumptions
City staff and RCS discussed about the appropriate positions and percentages needed to successfully operate the Rent Stabilization Program. This program requires staffing who directly assist renters and landlords with registration, rent control and tenant protection services, and general public inquiries. A successful program also require positions who indirectly support the program with policy development, process creation, and staff supervision. Table 5 below represents the proposed allocation of staff resources to serve those engaged in the Rent Stabilization Program.

Table 5: Cudahy Staffing and Available Work Hours
Existing City Staff FTE
Available
Work Hours
Director of Community Development 0.15 250
Housing Specialist II 1.00 1,664
Associate Planner 0.5 832
Senior Planner 0.35 416
Community Preservation Manager 0.10 582
Total Program Staffing 2.10 3,495
East Palo Alto (FY19)
Cudahy
Pro-Rated
TOTAL Units 4,600 Per 100 4,194
Petitions Filed 124 2.70 113
Habitability and Maintenance 7 0.15 6
Rent Ceiling Violation 3 0.07 3
Landlord's Failure to Register 1 0.02 1
Landlord's Fair Return Petition 111 2.41 101
Appeals 2 0.04 2
Public Inquiries 2,327 50.59 2,122
Tenant Walk-Ins 89 1.93 81
Landlord Walk-Ins 127 2.76 116
Other Walk-Ins 80 1.74 73
Phone Calls 362 7.87 330
Emails 1,669 36.28 1,522
Notices Received
3 Day Notices (Not WPC) 89 1.93 81
WPC 3 Day Notices 705 15.33 643
Unlawful Detainers (Not WPC) 18 0.39 16
WPC Unlawful Detainers 55 1.20 50
Change in Tenancy/Vacancy Reg. (Not WPC) 71 1.54 65
WPC Change in Tenancy/Vacancy Registration 332 7.22 303

Cost of Services Study: City of Cudahy Rent Stabilization Program Page | 15 The available work hours (AWH) for each position are based on current labor contracts. Available work hours were calculated as the total possible work hours in a year (2,080) minus the away-from-work benefit hours from holidays, vacations, personal leave, sick leave, morning/afternoon breaks, and start up/down time.

Table 6: Available Work Hour Calculation Per Full-Time Employee Work Schedule 10/40 Days Hours
Beginning Work Hours 208.0 2,080
Less
Holidays (13.0) (104)
Vacation (13.3) (120)
Sick Leave (50%) (6.0) (60)
Subtotal 175.7 1,796
Less:

Start Up/Down (15 Min) (44)
Breaks (30 min) (88)
Full-Time Employee Available Work Hours 1,664
Allocating Cudahy Service Delivery
RCS was tasked with identifying appropriate staffing to carry out the policies of Cudahy’s Rent Stabilization Program. Based on the Rent Stabilization Ordinance and Tenant Protections Ordinance, Cudahy’s Rent Stabilization Program can be divided into the following service delivery areas:

1. Rental Registration – Section 5.13

2. Petition Process – Section 5.13.050 to 5.13.080

3. Enforcement and Compliance – Section 5.13.120 to 5.13.150

4. Hearings and Appeals – Section 5.13.130.B to 5.13.140.D.2

5. Tenant Protections – Section 5.14

6. Rent Stabilization Program Administration
For each of the service delivery areas above, we further identified relevant program tasks. The program tasks were created based on requirements of the rent stabilization and tenant protections ordinances. This helps us estimate the percentage of available work hours for each City staff. Reasonable assumptions were made to the times required for each task. It was a collaborative effort, engaging City staff, RCS’ decades of experience in measuring workflow times, and RCS’s experience in assisting to administer the City’s Ordinance and similar programs in other jurisdictions. We referred to the City’s Rent Stabilization Ordinance and Tenant Protections Ordinance and reviewed other cities’ rent stabilization program annual reports to identify trends in annual services provided. The allocation of time to tasks required several reviews before a reasonable decision was made with the results.

For the Fee Study, 100% of the available work hours for all City employees were accounted for, even if it’s not specific to the Rent Stabilization Program. In other words, one staff member cannot state they overworked on fee services beyond 100% of their hours, and another staff member cannot account for 100% of their time.

Their time was distributed to those program tasks where the time would be expended.

Cost of Services Study: City of Cudahy Rent Stabilization Program Page | 16 Table 7: Allocation of Staff Time
RCS populated the Estimated Units Per Year where we have reasonable estimates. This helps the City validate the amount of hours each position spends to the program task. For the Director of Community Development, reallocating 0.15 other City functions will provide 250 hours of work for the Rent Stabilization Program.

ALLOCATION OF STAFF TIME

PROGRAM TASKS
Estimated
Units
Per Year
Director
(% of
Time)
Director
(Annual
Hours)
Housing
Specialist II
(% of Time)
Housing
Specialist II
(Annual
Hours)
1) Rental Registration - Section 5.13 4,194 5% 12 50% 832 Rental Registry (New/Annual) - Section 5.13.100 3,949
Notice of New Tenancy - Section 5.13.100 395
Change of Onwership/Management 1
Verification of Exemption - Section 5.13.040 245
Registration Fee Collection - Section 5.13.100 3,949
Annual Allowable Rent Calculation - Section 5.13.050 1
Forms of Tenant Rights - Section 5.13.110 1
General Inquiries (Phone Calls & Walk Ins) 2,122
2) Petition Process – Section 5.13 87 5% 12 5% 83
Capital Improvement Pass-Through - Section 5.13.060 8
Landlord Rent Adjustment - Section 5.13.050 7
Landlord Fair Return Petition - Section 5.13.070 7
Tenant Petition Rent Adjustment - Section 5.13.080 65
3) Administration and Enforcement (Rent Stabilization) – Sections 5.13.120 to 5.13.150 197 10% 25 10% 166
Enforcement - Section 5.13.120
Administrative Review - Section 5.13.130.A 10
Administrative Appeals - Section 5.13.130.B 10
Judicial Review of Hearing Officer Decision - Section 5.13.130.I 1 Administrative Citations - Section 5.13.140
Administrative Appeal - Section 5.13.140.D.1
Judicial Review of Hearing Officer Decision - Section 5.13.140.D.2 Civil Liability - Section 5.13.150.A
Civil Penalty - Section 5.13.150.B
Criminal Penalty - Section 5.13.150.C
Defense to Eviction - Section 5.13.150.D
3) Administration and Enforcement (Tenant Protection) – Sections 5.14.110 to 5.14.130 113 10% 25 10% 166
Enforcement - Section 5.14.110
Citations, Prosecutions & Litigations - Section 5.14.120 Administrative Appeal - Section 5.14.120.D.1
Judicial Review of Hearing Officer Decision - Section 5.14.120.D 1 Civil Liability - Section 5.14.130.A
Civil Penalty - Section 5.14.130.B
Criminal Penalty - Section 5.14.130.C
Defense to Eviction - Section 5.14.130.D
4) Tenant Protections – Section 5.14 395 5% 12 15% 250
Termination of Tenancy - Section 5.14.040 395
No-Fault Termination of Tenancy (demolition, withdraw from m 12 For-Cause Termination of Tenancy - Section 5.14.050 255 Relocation Assistance - Section 5.14.070 41
Temporary Relocation Assistance - Section 5.14.070 6
Tenant Buyout Agreements - Section 5.14.080 5
Tenant Retalitory Eviction & Anti-Harrassment - Section - 5.14.090 Forms of Tenant Rights - Section 5.14.100
Assistance and mediation for Tenant Eviction
6) Rent Stabilization Program Administration 65% 162 10% 166 Budget, Staffing, Training, Department Coordination
Policy/Program Development, Legal Compliance
Education & Outreach
General Inquiries and Staff Guidance
Agency Liaison & Regional/State representation
TOTAL 100% 250 100% 1,664

Cost of Services Study: City of Cudahy Rent Stabilization Program Page | 17 Table 7: Allocation of Staff Time (continued)
Combined, the Associate Planner and Senior Planner would provide 1,415 hours (.85 FTE) of support to the program. The Associate Planner would provide more direct assistance in rental registration, while the Senior Planner would provide more indirect support within Rent Stabilization Program Administration.

ALLOCATION OF STAFF TIME

PROGRAM TASKS
Estimated
Units
Per Year
Associate
Planner
(% of Time)
Associate
Planner
(Annual
Hours)
Senior
Planner
(% of Time)
Senior
Planner
(Annual
Hours)
1) Rental Registration - Section 5.13 4,194 45% 374 5% 29 Rental Registry (New/Annual) - Section 5.13.100 3,949
Notice of New Tenancy - Section 5.13.100 395
Change of Onwership/Management 1
Verification of Exemption - Section 5.13.040 245
Registration Fee Collection - Section 5.13.100 3,949
Annual Allowable Rent Calculation - Section 5.13.050 1
Forms of Tenant Rights - Section 5.13.110 1
General Inquiries (Phone Calls & Walk Ins) 2,122
2) Petition Process – Section 5.13 87 15% 125 10% 58
Capital Improvement Pass-Through - Section 5.13.060 8
Landlord Rent Adjustment - Section 5.13.050 7
Landlord Fair Return Petition - Section 5.13.070 7
Tenant Petition Rent Adjustment - Section 5.13.080 65
3) Administration and Enforcement (Rent Stabilization) – Sections 5.13.120 to 5.13.150 197 10% 83 15% 87
Enforcement - Section 5.13.120
Administrative Review - Section 5.13.130.A 10
Administrative Appeals - Section 5.13.130.B 10
Judicial Review of Hearing Officer Decision - Section 5.13.130.I 1 Administrative Citations - Section 5.13.140
Administrative Appeal - Section 5.13.140.D.1
Judicial Review of Hearing Officer Decision - Section 5.13.140.D.2 Civil Liability - Section 5.13.150.A
Civil Penalty - Section 5.13.150.B
Criminal Penalty - Section 5.13.150.C
Defense to Eviction - Section 5.13.150.D
3) Administration and Enforcement (Tenant Protection) – Sections 5.14.110 to 5.14.130 113 10% 83 15% 87
Enforcement - Section 5.14.110
Citations, Prosecutions & Litigations - Section 5.14.120 Administrative Appeal - Section 5.14.120.D.1
Judicial Review of Hearing Officer Decision - Section 5.14.120.D 1 Civil Liability - Section 5.14.130.A
Civil Penalty - Section 5.14.130.B
Criminal Penalty - Section 5.14.130.C
Defense to Eviction - Section 5.14.130.D
4) Tenant Protections – Section 5.14 395 10% 83 15% 87
Termination of Tenancy - Section 5.14.040 395
No-Fault Termination of Tenancy (demolition, withdraw from m 12 For-Cause Termination of Tenancy - Section 5.14.050 255 Relocation Assistance - Section 5.14.070 41
Temporary Relocation Assistance - Section 5.14.070 6
Tenant Buyout Agreements - Section 5.14.080 5
Tenant Retalitory Eviction & Anti-Harrassment - Section - 5.14.090 Forms of Tenant Rights - Section 5.14.100
Assistance and mediation for Tenant Eviction
6) Rent Stabilization Program Administration 10% 83 40% 233 Budget, Staffing, Training, Department Coordination
Policy/Program Development, Legal Compliance
Education & Outreach
General Inquiries and Staff Guidance
Agency Liaison & Regional/State representation
TOTAL 100% 832 100% 582

Cost of Services Study: City of Cudahy Rent Stabilization Program Page | 18 Table 7: Allocation of Staff Time (continued)
The City suggests including the Community Preservation Manager within this program to assist with code enforcement, tenant protection cases, and the determination of other housing health and safety issues.

ALLOCATION OF STAFF TIME

PROGRAM TASKS
Estimated
Units
Per Year
Community
Preservation
Manager
(% of Time)
Community
Preservation
Manager
(Annual
1) Rental Registration - Section 5.13 4,194 10% 17
Rental Registry (New/Annual) - Section 5.13.100 3,949
Notice of New Tenancy - Section 5.13.100 395
Change of Onwership/Management 1
Verification of Exemption - Section 5.13.040 245
Registration Fee Collection - Section 5.13.100 3,949
Annual Allowable Rent Calculation - Section 5.13.050 1
Forms of Tenant Rights - Section 5.13.110 1
General Inquiries (Phone Calls & Walk Ins) 2,122
2) Petition Process – Section 5.13 87 0% 0
Capital Improvement Pass-Through - Section 5.13.060 8
Landlord Rent Adjustment - Section 5.13.050 7
Landlord Fair Return Petition - Section 5.13.070 7
Tenant Petition Rent Adjustment - Section 5.13.080 65
3) Administration and Enforcement (Rent Stabilization) – Sections 5.13.120 to 5.13.150 197 45% 75
Enforcement - Section 5.13.120
Administrative Review - Section 5.13.130.A 10
Administrative Appeals - Section 5.13.130.B 10
Judicial Review of Hearing Officer Decision - Section 5.13.130.I 1 Administrative Citations - Section 5.13.140
Administrative Appeal - Section 5.13.140.D.1
Judicial Review of Hearing Officer Decision - Section 5.13.140.D.2 Civil Liability - Section 5.13.150.A
Civil Penalty - Section 5.13.150.B
Criminal Penalty - Section 5.13.150.C
Defense to Eviction - Section 5.13.150.D
3) Administration and Enforcement (Tenant Protection) – Sections 5.14.110 to 5.14.130 113 45% 75
Enforcement - Section 5.14.110
Citations, Prosecutions & Litigations - Section 5.14.120 Administrative Appeal - Section 5.14.120.D.1
Judicial Review of Hearing Officer Decision - Section 5.14.120.D 1 Civil Liability - Section 5.14.130.A
Civil Penalty - Section 5.14.130.B
Criminal Penalty - Section 5.14.130.C
Defense to Eviction - Section 5.14.130.D
4) Tenant Protections – Section 5.14 395 0% 0
Termination of Tenancy - Section 5.14.040 395
No-Fault Termination of Tenancy (demolition, withdraw from m 12 For-Cause Termination of Tenancy - Section 5.14.050 255 Relocation Assistance - Section 5.14.070 41
Temporary Relocation Assistance - Section 5.14.070 6
Tenant Buyout Agreements - Section 5.14.080 5
Tenant Retalitory Eviction & Anti-Harrassment - Section - 5.14.090 Forms of Tenant Rights - Section 5.14.100
Assistance and mediation for Tenant Eviction
6) Rent Stabilization Program Administration 0% 0
Budget, Staffing, Training, Department Coordination
Policy/Program Development, Legal Compliance
Education & Outreach
General Inquiries and Staff Guidance
Agency Liaison & Regional/State representation
TOTAL 100% 166

Cost of Services Study: City of Cudahy Rent Stabilization Program Page | 19 CHAPTER IV – CALCULATING COSTS AND FEES
Program Costs
The direct and indirect operating costs determined by RCS for the various services are based on the definitions of “costs reasonably borne” as utilized in Article XIIIB (Proposition 4) and as further defined by its authors in their background documents. The following are generally accepted elements of "costs reasonably borne." Cost of Services
a) Labor costs and Employee Related Expenses
b) Operational services and supply expenses
c) Overhead expense
d) Administrative costs
e) Start-up costs
f) Future capital and replacement expenses
g) Costs of expansion of services
h) Repayment of debt
Table 8: Salary & Employee Benefits Costs
Existing Staff FTE
Staff
Hours
Salary
Costs
Benefit
Costs
Total
Costs
Community Development Director 0.15 250 28,042 7,750 35,792 Housing Specialist II 1.00 1,664 85,500 38,600 124,100
Associate Planner 0.50 832 44,886 19,575 64,461
Senior Planner 0.35 582 39,409 14,732 54,140
Community Preservation Manager 0.10 166 9,041 3,923 12,964

2.10 3,495 $206,878 $84,581 $291,458
Labor and Employee Benefit Costs – RCS worked with the City of Cudahy to identify the appropriate staffing levels and calculate associated costs. RCS calculated the labor costs based on Cudahy’s methodology for estimating vacant positions. We calculated the employee benefit costs based on the average fringe benefit percentage of each bargaining group.

Operational Services and Supply Expenses - Various contracted services and operating expenses are essential to the City’s Rent Stabilization Program. These include the need for legal services, registration software, education & outreach services, and additional policy and process development. Other expenses include postage, legal notices, and IT hardware and software. For theses expenses, RCS used the proportional amount from the total Community Development Department budget, and removed any unnecessary expense line items.

Indirect Administrative Costs - The purpose of deriving overhead costs is to apportion these amounts to direct service program costs. By adopting this method, the City will be aware of its true costs and be able to mirror business methods.

Cost of Services Study: City of Cudahy Rent Stabilization Program Page | 20 The City’s Building and Planning budget for FY 2023-24 does not include expenditures for indirect costs or other unforeseen incidentals. Therefore, RCS included a calculated $86,410 Indirect Administrative Cost, which is 20% of all other program costs, to the total program budget.

Startup Costs – The City’s rent programs’ budget includes both one-time and ongoing costs. For example, the rental registration software selected by the City has a one-time implementation cost for the initial year, and annual maintenance cost. The registration software is averaged over five years for this study. Interviews with neighboring rent stabilization programs indicate that legal costs may be higher in the initial year as well. The proposed policy and process development costs could be reduced or eliminated in future years, as the City staff could take over this function. Future Capital and Replacement Expense, Costs of Expansion of Services, and Repayment of Debt – None of these costs apply to the Rent Stabilization Program.

Table 9: Projected Rent Stabilization Program Budget
Line Item Expense RSP Budget
5100 - Employee Salaries - Full-Time 206,878
Benefits 84,581
6040 – Gasoline 300
6080 - Office Supplies 930
6250 – Uniforms 370
6307 - Travel & Meetings 1,930
6392 – Training and Education 2,830
6394 – Vehicle Maintenance 900
6701 – Contractual 3,010
6720 – Hearing Officer 25,000
6720 - Legal 35,000
6720 - Policy & Process Development 10,000
6720 - Public Information 10,000
6720 - Registration Software 40,000
6720 - Translation 10,000
6760 – Project Consulting/Admin Services 300
Indirect Administrative Costs 86,410
Total Budget $518,438
Table 9 above presents the line-item budget for the Rent Stabilization Program’s first year of operations.

Combined, the projected full cost for the Rent Stabilization Program is $518,438.

Cost of Services Study: City of Cudahy Rent Stabilization Program Page | 21 Calculating the User Fee
While most city services are paid by local tax dollars, cities also adopt user fee schedules to recover costs for fee services, such as recreation classes, planning applications, public works inspections, and building permits. The legal test for a user fee are:
• The customer is identifiable
• The service is measurable (e.g., time or cost)
• The service benefits an individual or group, and the use is exclusive The Rent Stabilization Program is designed to serve the landlords and tenants and exclude homeowners and businesses owners. The tasks and services within the Rent Stabilization Program proportionately serve all landlords and tenants, therefore, RCS recommends a single, flat Annual Rental Registration Fee.

To be exempt from the controlled rent increases and other services of the Rent Stabilization Program, an application must be reviewed and process by City staff, and the suggested fee for this service is $91 per unit.

Table 10 below estimated 245 units that are two-unit properties with the owner living in one unit. RCS included this exemption in the analysis because they may be program eligible at any time the property owner chooses to. Not included are housing units dated 1995 and newer, and the City staff may choose to verify their exemption, and charge a charge a fee.

Table 10: Suggested Rent Stabilization Program Fees
The City will have more data after several years of operations and should recalculate the Annual Registration Fee and Registration Exemption Fee then. At that time, the City could also consider separate fees for petition filing, which typically take a significant amount of staff time and resources to process.

Rent Stabilization Program Fee Calculation
Estimated Registry Exemptions 245
Assoc Plnr/Hsng Spec II - Fully Burdened Hourly Rate $ 91.23 Time to process Registry Exemption (Hours) 1.00
Suggested Registry Exemption Fee $ 91.00
Estimated Revenues - Registry Exemption Fee $ 22,295
Estimated Rental Registry 3,949
Suggested Rental Registration Fee $ 126.00
Allowable 50% Pass-Thru (Monthly per Tenant) $ 5.25
Estimated Revenues - Rental Registry $ 497,574
Total Estimated Revenues $ 519,869

Cost of Services Study: City of Cudahy Rent Stabilization Program Page | 22 CHAPTER IV – COST RECOVERY RECOMMENDATIONS
Suggested Rent Stabilization Fees
RCS has calculated that the Rental Registration Fee required to offset the cost of the Rent Stabilization Program will be $126 per unit, and the Registration Exempt Fee will be $91 per unit.

Rent Stabilization Program Fee Per Unit # of Units Projected Revenues Rental Registration Fee $126 3,949 $497,574
Registration Exemption Fee $91 245 $22,295
Total 4,194 $519,869
The landlord may pass through up to fifty percent (50%) of the Rental Registration Fee to tenants of the applicable rental unit, to be paid by the tenant in twelve (12) equal monthly installments. This translates to $5.25 per month to be paid by the tenant.

Other Considerations
Achieving high registration compliance in Cudahy may be difficult with the current Rent Stabilization Ordinance. For Cudahy, there are few fines or penalties for landlords who do not register or pay the registration fee. Other cities restrict the landlord’s ability to increase rent or collect rent when they are noncompliant, and Cudahy may wish to consider updating the Rent Stabilization Ordinance to include similar language. The Ordinance requires City to issue administrative citations to landlords who do not register their rental units.

This program is most successful when the City has a high registration rate. One hundred percent compliance would be ideal.

RCS recommends implementing late fees for late registrations. After year one, landlords have already registered but have to incentive or disincentive to renew their registration fee. The following fee/late fee for the City based upon best practices from other jurisdictions with a rent stabilization ordinance. RCS also recommends updating the fees annually by the Consumer Price Index.

Proposed Late Fees Total Fees & Fines
If paid late, 30 days or less past due date Registration Fee + 10% of remaining balance due If paid 31 to 60 days past due date Registration Fee + 25% of remaining balance due If paid after 60 days past due date Registration Fee + 50% of remaining balance due Finally, RCS recommends creating a special revenue fund to account for all Rent Stabilization Program revenues and expenditures. This separation from the General Fund will help the City manage the program and ensure full cost recovery. The fund should build up and maintain a 20% fund balance reserve. A 20% fund balance reserve is best practice among municipal financing and suggested by the Government Finance Officers Association.

Cost of Services Study: City of Cudahy Rent Stabilization Program Page | 23 APPENDIX A: RENT STABILIZATION ORDINANCE AND TENANT

PROTECTION ORDINANCE

ORDINANCE NO. 736

AN ORDINANCE OF THE CITY OF CUDAHY, CALIFORNIA ADDING
CHAPTER 5.13 "RENT STABILIZATION" TO TITLE 5, BUSINESS

LICENSES AND REGULATIONS OF THE CUDAHY MUNICIPAL CODE

RESTRICTING RENT INCREASES AND ESTABLISHING OTHER

REGULATIONS APPLICABLE TO CERTAIN COVERED RESIDENTIAL

RENTAL UNITS IN THE CITY
WHEREAS, the City of Cudahy ("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, cities across Los Angeles County and throughout the State of California are experiencing a housing shortage and affordability crisis; and WHEREAS, per the U.S. Department of Housing and Urban Development (HUD), in 2023 the median monthly rent for a two-bedroom apartment in Los Angeles County is $2,222, representing an 8.7% increase over the following year; and WHEREAS, per the U.S. Census Bureau, the median household income in the City is $47,050, compared to $76,367 in Los Angeles County; and WHEREAS, according to the City's Housing Element 2021-2029 ("Housing Element") approximately 85% of households in the City are renter occupied. Of the renteroccupied households, 56.3% are rent burdened, paying more than 30% of gross income on housing; and 10.2% are severely rent burdened, paying more than half of gross income on housing; and
WHEREAS, with high housing costs, low incomes and critical affordable housing shortages, many residents in the City struggle to pay for housing and meet other basic needs such as food, clothing, transportation and healthcare; and WHEREAS, housing instability has been associated with other disruptive effects on vulnerable populations such as overcrowding, poorer health, and negative educational outcomes for children; and
WHEREAS, widespread housing insecurity and rent burdened households leads to heightened risk of displacement and homelessness, and threatens the public health, safety, and welfare of City residents; and
WHEREAS, the City Council of the City of Cudahy ("City Council") formed an Ad Hoc Committee (the "Ad Hoc Committee") at the City Council meeting of July 19, 2022,

L
Ordinance No. 736
to analyze and study the issue of rent control and to formulate legislative or other appropriate recommendations for City Council consideration; and WHEREAS, on September 20, 2022, the City Council adopted Ordinance No. 725 that went into effect on October 19, 2022, to temporarily restrict rent increases for certain residential properties while the City studied the issue of rent control; and WHEREAS, on January 17, 2023, the City Council adopted Urgency Ordinance No. 731 extending the temporary rent freeze for covered units to allow more time to study and analyze the issue; and
WHEREAS, on April 11, 2023, City staff provided an update to the City Council on the Ad Hoc Committee's efforts and the City Council directed staff to prepare a rent stabilization ordinance and a tenant eviction protections ordinance for future consideration by the City Council. The City Council also adopted Urgency Ordinance No. 735 further extending the temporary rent freeze for covered units to allow time for the ordinance to be prepared and considered; and
WHEREAS, on May 16, 2023, the City Council received public testimony and an update from staff, and provided further direction regarding consideration of a rent stabilization ordinance and a tenant eviction protections ordinance; and WHEREAS, on May 19, 2023, the City Clerk posted a Notice of Public Hearing in accordance with the City's public notice requirements regarding adoption of an ordinance adding Chapter 5.13 "Rent Stabilization" to Title 5 of the Cudahy Municipal Code ("Municipal Code") restricting rent increases and establishing other regulations applicable to certain covered residential rental units in the City; and WHEREAS, on May 30, 2023, the City Council heard public testimony under Agenda Item No. 5A regarding adoption of an ordinance adding Chapter 5.13 "Rent Stabilization" to Title 5 of the Municipal Code, restricting rent increases and establishing other regulations applicable to certain covered residential rental units in the City; and WHEREAS, the California Tenant Protection Act of 2019 (the "Tenant Protection Act") went into effect on January 1, 2020. Among other provisions, the Tenant Protection Act limits rent increases for rental properties subject to the Act to five percent plus the percentage change in the consumer price index up to a maximum of 10% (Civil Code Section 1947.12); and
WHEREAS, the Mobilehome Residency Law ("MRL"), California Civil Code sections 798, et seq., expressly authorizes cities to regulate the setting and/or increasing of rents for the use and occupancy of a mobile home space, subject to certain exceptions; and
WHEREAS, the Costa-Hawkins Rental Housing Act, California Civil Code section 1954.50, et seq., ("Costa-Hawkins Act") limits the applicability of local rent stabilization

Ordinance No. 736
policies, including prohibiting local jurisdictions from applying rent control to certain residential rental properties; and
WHEREAS, based on the foregoing, for the preservation of public health, safety, and general welfare of the community, the City Council finds that it is in the interest of the City, residential property owners, residents and community as a whole that the City adopt policies to support affordable housing in the City, including rent stabilization regulations that protect residents from unconstrained rent increases, while recognizing the need for owners of residential real property to receive a fair return; and WHEREAS, this Ordinance intends to comply with the Tenant Protection Act, the MRL, the Costa-Hawkins Act and all other applicable state laws.

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

SECTION 1. Findings. The Recitals above are true and correct and incorporated herein by reference.

SECTION 2. Chapter 5.13 is hereby added to Title 5 of the Cudahy Municipal Code in its entirety as shown on Exhibit "A", attached hereto and incorporated by reference herein.

SECTION 3. Inconsistent Provisions. Any provision of the Cudahy Municipal Code or appendices thereto that conflicts with the provisions of this Ordinance, to the extent of such conflict and no further, is hereby repealed or modified to the extent necessary to implement the provisions of this Ordinance.

SECTION 4. Severability. If any section, subsection, sentence, clause, or phrase of this Ordinance, or any part thereof, is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance or any part thereof. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase thereof, irrespective of the fact that any one or more section, subsection, subdivision, paragraph, sentence, clause, or phrase would be subsequently declared invalid or unconstitutional.

SECTION 5. Compliance with California Environmental Quality Act. The City Council finds that this Ordinance is not subject to the California Environmental Quality Act pursuant to Section 15060(c)(2), constituting an activity that will not result in a direct or reasonably foreseeable indirect physical change in the environment, and pursuant to Section 15060(c)(3) constituting an activity that is not a project as defined in Section 15378.

r
Ordinance No. 736
SECTION 6. The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause this Ordinance to be published or posted as required by law.

This Ordinance shall become effective thirty (30) days after the date of its adoption.

PASSED, APPROVED, AND ADOPTED this 6
th day of June 2023.

Daisy Lomeli, Mayor
ATTEST:
7

Ordinance No. 736

STATE OF CALIFORNIA

COUNTY OF LOS ANGELES

CITY OF CUDAHY

CERTIFICATION
)
)
)
SS:

I, Richard Iglesias, City Clerk of the City of Cudahy, hereby certify that the foregoing Ordinance No. 736 was introduced for a first reading on the 30th day of May 2023 and approved for a second reading and adopted by said Council at its regular meeting held on the 6
th day of June 2023 by the following vote, to-wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

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

EXHIBIT “A”
Cudahy Municipal Code
Title 5 - Business Licenses and Regulations
Chapter 5.13 – Rent Stabilization
Article I. Title, Purpose, Definitions and Applicability

5.13.010 Title

5.13.020 Purpose

5.13.030 Definitions

5.13.040 Applicability
Article II. General Provisions

5.13.050 Permitted Rent Increases for Covered Rental Units

5.13.060 Capital Improvement Pass-Through Cost Recovery

5.13.070 Landlord Fair Return Petition for Rent Increase

5.13.080 Tenant Petition for Adjustment

5.13.090 Security Deposits

5.13.100 Rental Unit Registration

5.13.110 Notices to Tenants
Article III. Administration and Enforcement

5.13.120 Enforcement

5.13.130 Administrative Review and Appeals

5.13.140 Administrative Citations

5.13.150 Remedies

5.13.160 Waiver

5.13.170 Severability

Article I. Title, Purpose, Definitions and Applicability

5.13.010. Title
This Chapter shall be known as the rent stabilization ordinance of the city.

5.13.020. Purpose.

A. The purpose of this Chapter is to protect tenants from excessive rent increases and to promote long-term stability and certainty for tenants in the rental market while providing landlords an ability to receive a fair return on their rental property.

B. This Chapter regulates rents for certain tenancies. It requires landlords to register rental units, establishes an administrative petition process, and provides for procedures and guidelines for the implementation of this Chapter.

5.13.030. Definitions. For the purposes of this Chapter, unless the context requires otherwise, the following definitions shall apply:

A. “Base Rent” means the Rent charged for a Rental Unit in effect on April 11, 2022, when the City Council declared its intent to regulate rent for residential properties in the City, or at the initiation of the Tenancy, whichever is later, plus any rent increase allowed thereafter pursuant to this Chapter.

B. "Capital Improvement" means the addition, substantial repair or replacement of any improvements to dwelling units, buildings, or common areas, which materially adds to the value of the property, appreciably prolongs its useful life or adapts it to new uses, and which is the same type of improvement as those allowed to be amortized over the useful life of the improvement in accordance with the Internal Revenue Code and its regulations and as specified in Section 5.13.060. Capital Improvement does not include normal or routine maintenance or repair or repairs covered by insurance.

C. “City” means the City of Cudahy.

D. “Code” means the City of Cudahy Municipal Code.

E. “Consumer Price Index” or “CPI” means the Consumer Price Index for all urban consumers of the Los Angeles-Long Beach-Anaheim, California area, published by the U.S. Department of Labor, Bureau of Labor Statistics, or any successor designation of that index that may later be adopted by the U.S. Department of Labor.

F. “Covered Rental Unit” means any Rental Unit that is not designated as exempt pursuant to Section 5.13.040 of this Chapter.

G. "Department" means the Community Development Department of the City of Cudahy, or other Department designated by the City Council to administer the provisions of this Chapter.

H. “Director” means the Director of the Department, or their designee.

I. “Hearing Officer” means the person designated by the city manager or designee to conduct a review hearing and decide petitions and appeals under this Chapter.

J. "Housing Services" means all services provided by the Landlord related to the use or occupancy of a Rental Unit, including, water, heat, utilities, insurance, maintenance, repairs, painting, elevator service, laundry facilities, janitorial service, refuse removal, furnishings, window shades and screens, parking, storage, security services, recreational areas, right to have specified number of tenants or occupants, allowing pets, communications technologies (internet, cable and satellite services), and any other benefit, privilege or facility that has been provided by the Landlord to the Tenant with use or occupancy of a Rental Unit. Housing Services to a Rental Unit shall include a proportionate part of services provided to common facilities of the building or residential complex in which a Rental Unit is contained.

K. "Landlord" means an owner, lessor, sublessor, or any other person entitled to offer any Rental Unit for Rent or entitled to receive Rent for the use and occupancy of a Rental Unit, and the agent, representative, or successor of any of

the foregoing. “Landlord” includes an owner of a Mobilehome Park and its agent, representative, or successor.

L. “Mobilehome” means any mobilehome as defined under California Civil Code Section 798.3.

M. “Mobilehome Park” means an area of land located where two or more Mobilehome spaces are rented or leased out for Mobilehomes used as residences.

N. “Rent” means the sum of all periodic payments and all nonmonetary consideration demanded or received by a Landlord from a Tenant for the use or occupancy of a Rental Unit, including Tenant's access to and use of Housing Services. Rent includes, without limitation, the fair market value of goods accepted, labor performed, or services rendered. Rent does not include any of the following: security deposits, utility charges billed separately to the Tenant by the utility company, and pass-through fees and charges authorized pursuant to this Chapter.

O. “Rental Agreement” means an agreement, oral, written, or implied, between a Landlord and Tenant for the use or occupancy of a Rental Unit and related Housing Services.

P. “Rental Unit” means any dwelling unit, as defined under California Civil Code section 1940 subsection (c) located in the jurisdictional boundaries of the City of Cudahy and that is used or occupied for human habitation in consideration of payment of rent, whether or not the residential use is legally permitted, including Mobilehomes rented by the owner of the Mobilehome, and accessory dwelling units. “Rental Unit” also means a Mobilehome Park space located in the jurisdictional boundaries of the City of Cudahy.

Q. “Residential Real Property” includes any parcel of land containing one or more dwelling units intended for human habitation.

R. “Service Reduction” means any decrease or diminution in the level of Housing Services provided by the Landlord on or after the effective date of this Chapter, including but not limited to, services the Landlord is required to provide pursuant to:

1. California Civil Code section 1941 et. seq.;

2. The Landlord's implied warranty of habitability, which cannot be contractually excluded or waived;

3. A Rental Agreement between the Landlord and the Tenant; and

4. The level of service as implied by the condition of improvements, fixtures, and equipment, and their availability for use by the Landlord at the time of execution of the Rental Agreement between the Landlord and the Tenant.

S. “Tenancy” means the lawful right or entitlement of a Tenant to use or occupy a Rental Unit. This includes a lease or a sublease.

T. “Tenant” means a tenant, subtenant, lessee, sublessee, or any other person entitled, under the terms of a Rental Agreement to the use or occupancy of any Rental Unit.

5.13.040. Applicability.

A. This Chapter shall apply to all Rental Units within the jurisdictional boundaries of the City, unless expressly exempt pursuant to any provision of this Chapter or State or federal law.

B. Exemptions. The following are specifically exempt from the provisions of this Chapter:

1. Any dwelling unit that has a certificate of occupancy or equivalent permit for residential occupancy issued after February 1, 1995.

2. Any dwelling unit that is alienable separate from the title to any other dwelling unit, including single family residences, condominiums and townhomes, but excluding Mobilehomes offered for rent by the owner of

the Mobilehome, or is a subdivided interest in a subdivision, as specified in California Business and Professions Code Section 11004.5 (b), (d) or (f).

3. Housing restricted by deed, regulatory restriction contained in an agreement with a government agency, or other recorded document as affordable housing for persons and families of very low, low or moderate income, as defined in Health and Safety Code section 50093, or subject to an agreement that provides housing subsidies for affordable housing for persons and families of very low, low or moderate income, as defined in Health and Safety Code section 50093 or comparable federal statutes, but excluding any dwelling unit for which a Landlord receives federal housing assistance vouchers issued under Section 8 of the United States Housing Act of 1937 line 9 (42 U.S.C. Sec. 1437f).

4. Residential Real Property containing no more than two (2) Rental Units in which the owner occupies one of the units as the owner’s principal place of residence since the beginning of the Tenancy, so long as the owner continues in occupancy. For purposes of this subsection:
a. The term “owner” means a natural person who owns at least a 25% ownership interest in the Residential Real Property.
b. An exemption under this subsection shall expire by operation of law when the owner ceases to reside on the property as their principal place of residence.

5. Accommodations in hotels, motels, inns, tourist homes and boarding houses, and rooming houses, or other facilities, for which the City has received or is entitled to receive payment of transient occupancy tax pursuant to Chapter 3.32 of the Code (Transient Occupancy Tax) and California Civil Code section 1940 subdivision (b).

6. Housing accommodations in a nonprofit hospital, religious facility, extended care facility, licensed residential care facility for the elderly (as defined in Health and Safety Code Section 159.2), or any other facility licensed by the State to provide medical care for residents.

C. Application for Rental Unit Exemption. Any person with an ownership interest in a Rental Unit may claim an exemption from this Chapter by filing with the Department an application of exemption on a form approved by the Department.

Article II. General Provisions

5.13.050. Permitted Rent Increases for Covered Rental Units.

A. A Landlord shall not increase the Rent for a Covered Rental Unit by more than the change in CPI, or three percent (3%), whichever is lower.

For purposes of this Section, “change in CPI” means the percentage change in the Consumer Price Index over the previous 12-month period ending in March of each year.

B. A Landlord shall not impose more than one (1) Rent increase for a Covered Rental Unit in any 12-month period, calculated from the date the Rent increase takes effect, unless otherwise permitted pursuant to this Chapter.

C. The Department shall announce the annual maximum allowable Rent increase effective as of July 1 of the same year, in accordance with the Department’s procedures and guidelines.

D. A Landlord may impose an annual Rent increase for any Covered Rental Unit, as allowed in this Section, only after providing at least thirty (30) days written notice to the Tenant of the Rent increase pursuant to California Civil Code section 827.

E. A Landlord may impose an annual Rent increase only upon registering the Rental Unit with the City and paying any required annual registration fees pursuant to Section 5.13.100, and maintaining compliance with State and local laws and requirements.

F. A Landlord who does not impose a Rent increase or imposes only a portion of the permitted Rent increase in any twelve month period, as provided in this Section, waives that annual Rent increase or the remaining portion of that permitted annual Rent increase for the remainder of the Tenancy. A Landlord shall not bank any waived and/or unused portions of permitted annual Rent increases for use in future years.

G. This Chapter does not supersede a Landlord’s right to set the initial Rent for new tenancies under State law.

H. A Tenant of a Covered Rental Unit subject to this Chapter shall not enter into a sublease that results in a total Rent for the Rental Unit that exceeds the allowable Rent authorized by this Section. Nothing in this Chapter authorizes a Tenant to sublet or assign the Tenant’s interest where otherwise prohibited.

I. A Tenant may refuse to pay a Rent increase which is in violation of this Chapter.

Such refusal to pay the unallowed increased amount in excess of permitted Rent charges shall be an affirmative defense in any action brought to recover possession of a Rental Unit or to collect the Rent increase owed.

5.13.060. Capital Improvements Pass-Through Cost Recovery.

A. A Landlord may pass-through 50% of Capital Improvement costs to existing Tenants in Covered Rental Units in accordance with the provisions of this Section.

B. Capital Improvements must be for the primary benefit, use and enjoyment of Tenants, cost-factored, and amortized over a useful life of at least five (5) years, and permanently fixed in place or relatively immobile and appropriate to the use of the rental property.

C. Capital Improvements eligible for pass-through cost recovery include, but are not limited to:

1. The addition, but not the replacement, of the following improvements to a Rental Unit or common areas of the building in which the Rental Unit is

located: air conditioning, security gates and other security items, swimming pool, sauna or hot tub, fencing, children's play equipment permanently installed on the premises, and other similar improvements as determined by the Department.

2. Replacement or substantial modification of any structural, electrical, plumbing, or mechanical system that requires a permit pursuant to State or local law.

3. Abatement of hazardous materials, such as lead-based paint, mold or asbestos, in accordance with applicable federal, State, and local laws.

D. Capital Improvements cannot include regular maintenance or repairs from wear and tear, or be the result of a Landlord's failure to perform regular maintenance and repairs, or repairs covered by insurance.

E. Application Process.

1. A Landlord must apply to the Department for recovery of Capital Improvement costs, on a form approved by the Department, within twelve (12) months from the date of completion of the Capital Improvement.

2. The Capital Improvement cost recovery application must contain the following information, and be accompanied by copies of relevant supporting documentation:
a. A description of the completed Capital Improvement;
b. A copy of all estimates, contracts, bills, invoices, and other documentation reasonably necessary to establish the cost of the Capital Improvement;
c. The proposed amortization period to be used based on the Department's procedures and guidelines, if the period differs from sixty (60) months;

d. A list of Tenants that will be affected by or benefit from the Capital Improvement;
e. The formula used to calculate the pro rata share of each Tenant; f. The monthly cost to each affected or benefiting Tenant; g. The commencement and completion dates of the Capital Improvement; and
h. Such other information as the Department may reasonably request.

3. Within five (5) calendar days after submission of the application with the Department, the Landlord shall serve each affected Tenant with notice of the application via personal service or certified mail return receipt requested. The notice must include a copy of the application.

4. Within ten (10) calendar days after submission of the application, the Landlord shall file with the Department a proof of service signed under penalty of perjury stating that a copy of the application was served upon the affected Tenant(s). Such proof of notice is required before the application will be reviewed by the Department.

F. A Landlord may not pass-through costs of Capital Improvements to Tenants until the Department approves the Landlord's application and the Landlord registers each affected Rental Unit and pays any required annual registration fees pursuant to Section 5.13.100.

G. No pass-through cost-recovery shall be approved in an amount that would exceed five percent (5%) of the Rent in effect at the time the pass-through application is filed with the Department. If the total amount of calculated passthrough costs would result in an increase that exceeds five percent (5%), the pass-through cost amortization period may be extended beyond the established amortization period to allow the Landlord to recover eligible Capital Improvement costs while not exceeding the maximum increase authorized by this subsection.

H. A Landlord shall provide written notice of an approved pass-through cost to Tenants in accordance with California Civil Code section 827 and the notice shall be delivered at least thirty (30) days before the approved pass-through cost takes effect.

I. The approved pass-through cost should appear as a separate line item on a Rent statement along with the end date of the amortization period and any remaining pass-through balance. An approved pass-through cost is not considered Rent for purposes of this Chapter.

J. Pass-through cost recovery applications will be considered and determined by the Director in accordance with guidelines and procedures established by the Department; and the Director's determination may be appealed to a Hearing Officer in accordance with the procedures set forth in Section 5.13.130.

5.13.070. Landlord Fair Return Petition for Rent Increase.

A. Landlord’s Fair Return Application for Rent Increase. A Landlord may file a fair return petition (“Application for Rent Increase") with the Department to request an increase in Rent for a Covered Rental Unit, beyond that which is otherwise permitted under Sections 5.13.050, if the Landlord contends, in good faith, that they are not receiving a fair and reasonable return on the Landlord’s investment from the allowable Rent increases under Sections 5.13.050, in accordance with the provisions of this Section.

1. Presumption. It shall be a rebuttable presumption that the annual net operating income earned by a Landlord, and Rent increases allowed under Sections 5.13.050, provide the Landlord with a fair and reasonable return on the investment. A Landlord shall have the burden to prove the necessity of any additional Rent increase necessary to earn a fair and reasonable return.

2. Nothing in this Section shall be interpreted to authorize a Rent increase for a Covered Rental Unit in excess of the amount authorized pursuant to California Civil Code section 1947.12.

B. Approval of the Landlord's Application for Rent Increase may become effective only after all of the following:

1. A Landlord has provided written notice to the affected Tenant of the approved Rent increase for the Covered Rental Unit in accordance with California Civil Code section 827; and

2. A Landlord has registered each affected Rental Unit in the rental property, and is current on payment of registration fees, pursuant to Section

5.13.100.

C. Review and Approval of Application for Rent Increase.

1. The Department shall consider the following factors, as well as any other relevant factors, in reviewing the Application for Rent Increase and making its determination, and no one (1) factor shall be determinative:
a. Changes in the CPI.
b. The rental history of the affected Covered Rental Unit(s) and the rental property, including the Base Rent and pattern of past Rent increases or decreases.
c. Increases or decreases in property taxes.
d. The history or any prior hearings or determinations on an application for Rent increase by Landlord.
e. The addition of Capital Improvements on the rental property. f. The physical condition of the affected Covered Rental Unit(s) and building, including the quantity and quality of maintenance and repairs performed during the preceding twelve (12) months, as well

as the long-term patterns of operating, maintenance, and Capital Improvement expenditures.
g. The need for repairs caused by circumstances other than ordinary wear and tear.
h. Any increase or decrease of Housing Services since the last Rent increase.
i. Any existing Rental Agreement lawfully entered into between the Landlord and the Tenant.
j. A decrease in net operating income.
k. A fair and reasonable return on the building prorated among the Rental Units in the building.
l. If Landlord received Rent in violation of this Chapter or has otherwise failed to comply with this Chapter.

2. The Director may approve or deny an Application for Rent Increase and make the following determinations, with written findings in support thereof, in compliance the provisions of this Chapter:
a. The Department determines the Rent increase in the amount requested by Landlord is necessary and appropriate to ensure the Landlord receives a fair and reasonable return on the Landlord's investment, and will not cause an undue financial burden on the affected Tenant.
b. The Department determines a lesser Rent increase than the amount requested by Landlord more appropriately ensures a fair and reasonable return on the Landlord's investment and will not cause an undue financial burden on the affected Tenant.

c. The Department determines no additional Rent increase is necessary and appropriate to ensure the Landlord receives a fair and reasonable return on the Landlord's investment.

3. Nothing in this Section shall be interpreted to authorize a Rent increase for a Covered Rental Unit in excess of the amount authorized pursuant to California Civil Code section 1947.12.

4. The Department's decision may be appealed to a hearing officer, in accordance with the procedures set forth in Section 5.13.130.

D. Notices Upon Filing Application for Rent Increase. Within five (5) calendar days after submission of an Application for Rent Increase with the Department, the Landlord, at their own expense, shall provide written notice of said application to each affected Tenant via personal service or certified mail return receipt requested.

E. Submittal to Department of Application for Rent Increase. Upon receipt of an Application for Rent Increase, the Department shall review and evaluate whether there should be a Rent increase in accordance with this Section and the Department’s procedures and guidelines.

1. The application shall be on a form approved by the Department, signed under penalty of perjury, and must be accompanied by an application fee, if any, and must include the following:
a. The specific Rent increase or adjustment requested;
b. Copies of any books, records, papers, or other financial information relevant to the review of the application; and
c. Other documentation reasonably required by the Department relevant to the application.

2. Application Fees. The Department may set a reasonable application fee to be paid by the applicant at the time of the filing based on the

administrative expenses incurred in reviewing and processing the application.

3. The Department shall have the authority to deem an application complete.

F. Right of Assistance. All parties to an Application for Rent Increase may seek assistance from attorneys or any other person designated by said parties.

G. Consolidation. Applications for Rent Increase pertaining to Tenants in the same building or rental property may be consolidated for determination at the election of the Department.

5.13.080. Tenant Petition for Adjustment.

A. Tenant Application for Adjustment. A Tenant of a Covered Rental Unit may file a petition for adjustment (“Application for Adjustment”) with the Department for its determination, if the Tenant contends, in good faith, that they should receive an adjustment to their monthly obligation(s) because of a Landlord's potential violation(s) of this Chapter. A Tenant must file an Application for Adjustment within one hundred eighty (180) days from the date the Tenant knew, or reasonably should have known, of the Landlord's potential violation(s), in accordance with the provision of this Section.

1. Unlawful Rent and/or Fees or Charges. A Tenant may file an Application for Adjustment with the Department due to a Landlord’s demand for Rent, fees, or other charges that may be in excess of that permitted for a Covered Rental Unit under this Chapter.

2. Failure to Maintain Habitable Premises. A Tenant may file an Application for Adjustment with the Department to request a refund of, or decrease in, Rent proportional to a Landlord's potential failure to maintain the Covered Rental Unit as a habitable premise in accordance with applicable laws or the Rental Agreement.

a. A Landlord shall not be liable to a Tenant for failure to maintain habitable premises if the Tenant caused the condition that is the subject of the application.
b. Prior to filing an Application for Adjustment for failure to maintain habitable premises, a Tenant shall file a complaint with the proper enforcement agency and provide such proof of complaint filing to the Department.

3. Decrease in Housing Services. A Tenant may file an Application for Adjustment with the Department for a Service Reduction in Housing Services, without a corresponding reduction in Rent, which may be considered an increase in excess of permitted Rent.

B. Prior to filing an Application for Adjustment with the Department, a Tenant shall:

1. Provide written notice to Landlord identifying the potential violation(s) of excess Rent, fees or charges, failure to maintain habitable premises and/or decrease in housing services; and

2. A reasonable opportunity for the Landlord to correct the issues.

C. Review and Determination of Application for Adjustment. The Department shall consider the following factors, as applicable, as well as any other relevant factors, in making its determination and no one (1) factor shall be determinative.

1. Increases or decreases in Rent or Housing Services since the effective date of this Chapter.

2. The pattern of recent Rent or Housing Service increases or decreases.

3. Whether the Landlord has received payment in excess of the maximum allowable Rent, fees, or charges permitted by this Chapter or has otherwise failed to comply with this Chapter.

4. When and how the Service Reduction was first identified by the Tenant and when and how the Landlord was notified of the alleged Service

Reduction, orally, or in writing, and Landlord's response to such notice and whether Housing Services were reinstated or restored by the Landlord, and if so, when and how.

5. Whether any habitability violations stated by the Tenant in the application was improved or corrected, and if so, when and how.

6. The status of the habitability issues as of the date the application is signed.

D. Notice upon Filing Application for Adjustment. Within five (5) calendar days after submission of an Application for Adjustment with the Department, the Tenant shall provide written notice of said application to the Landlord via personal service or certified mail return receipt requested.

E. Submittal to Department of Application for Adjustment. Upon receipt of an application, the Department shall review and evaluate whether there should be an adjustment to Tenant’s monthly obligations in accordance with this Section and the Department’s procedures and guidelines.

1. The application shall be on a form approved by the Department, signed under penalty of perjury, and must be accompanied by an application fee, if any, and must include the following:
a. The specific adjustment requested and the basis for such adjustment;
b. Copies of any books, records, papers, or other financial information relevant to the review of the application; and
c. Other documentation reasonably required by the Department relevant to the application.

2. Application Fees. The Department may set a reasonable application fee to be paid by the applicant at the time of the filing based on the administrative expenses incurred in reviewing and processing the application.

3. The Department shall have the authority to deem an application complete.

F. Right of Assistance. All parties to an Application for Adjustment may seek assistance from attorneys or any other person designated by said parties.

G. Consolidation. Applications for Adjustment for Tenants who live in the same building or rental property may be consolidated for determination at the election of the Department.

5.13.090. Security Deposit.

A. Landlord may not demand or receive a security deposit, however denominated, in an amount or value in excess of the security deposit charged or received at the initiation of the Tenancy.

B. As used in this Section, security deposit means any “security” as defined in California Civil Code section 1950.5.

5.13.100. Rental Unit Registration.

U. On or before July 1, 2024, and by July 1 of each subsequent year, a Landlord must register with the Department each Rental Unit that is rented or available for Rent for a term exceeding thirty (30) consecutive days by filing a rental registration in a form approved by the Department. After initial Rental Unit registration, a Landlord shall notify the Department and update the rental registration within thirty (30) days of the start of a new tenancy or any subsequent change in tenancy or ownership.

V. Registration must include, but is not limited to, the following information:

1. Property information, including address, year built and certificate of occupancy date.

2. Rent for each Rental Unit in the rental property at the time of registration and the date and amount of the last Rent increase.

3. Ownership information for the rental property.

4. The number of total Rental Units in the rental property.

5. The number of bedrooms and bathrooms for each Rental Unit.

6. Tenant information, including names and move-in dates.

7. A description of Housing Services.

8. Any additional information reasonably required by the Department to implement this Chapter.

W. Registration Fee. A Landlord must pay an annual registration fee for each Rental Unit as established by resolution of the City Council. Such fees are intended to recover the City’s reasonable costs to implement, administer and enforce its rent stabilization and tenant eviction protection regulations as set forth in Chapter

5.13 and Chapter 5.14 of the Code. The registration fee established by this subsection shall be waived for any Rental Unit in a Residential Real Property containing four (4) or fewer dwelling units in which the owner occupies one of the units as the owner’s principal place of residence, so long as the owner continues in occupancy. For purposes of this subsection:

1. The term “owner” means a natural person who owns at least a 25% ownership interest in the Residential Real Property.

2. A waiver under this subsection shall expire by operation of law when the owner ceases to reside on the property as their principal place of residence.

X. Registration Fee Pass-Through. A Landlord may recover fifty percent (50%) of a registration fee from the Tenant. A Landlord may only collect one annual registration fee pass-through cost at a time and must also meet the following requirements to pass-through this registration fee:

1. Timely and accurately submits an annual registration for each Rental Unit in the rental property;

2. Lists the registration fee pass-through cost as a separate line item on the monthly obligation(s) statement;

3. Provides Tenant with thirty (30) days’ notice before collecting any registration fee pass-through cost; and

4. A Tenant's payment to the Landlord for the registration fee pass-through cost is paid in twelve (12) equal, monthly installments, unless otherwise agreed to by the Tenant.

5.13.110. Notices to Tenants.

A. Mandatory Notices to Tenants. Landlords must provide to each Tenant, prior to, or at the time of agreeing to rent or lease a Covered Rental Unit, a notice of Tenant rights under this Chapter. The Department shall publish a form notice of Tenant rights in English and other frequently spoken languages. Landlords must provide the form notice in the following circumstances.

1. When entering into a Rental Agreement, by including a copy of the form notice as an exhibit or attachment to the written Rental Agreement;

2. When renewing a Rental Agreement; and

3. When providing notice of a Rent increase or decrease in a Covered Rental Unit
B. Notice Regarding Potential Pass-Through Costs and Fees. A Landlord shall include language in the Rental Agreement that Tenant may be subject to passthrough costs and fees that have been reviewed and approved by the Department.

C. If the Rental Agreement is negotiated or written in a language other than English, the Landlord must also provide the form notice of Tenant rights in English and the language in which the Rental Agreement was negotiated or written.

Article III. Administration and Enforcement

5.13.120. Enforcement.

A. Enforcement Authority. The Department is authorized to take appropriate steps it deems necessary to administer and enforce this Chapter.

B. The Director of the Department, or designee, may develop and publish procedures and guidelines to aid in the implementation of this Chapter.

5.13.130. Administrative Review and Appeals.

A. Administrative Review.

1. The Department shall review and evaluate applications pursuant to this Chapter and issue a notice of decision in accordance with its procedures and guidelines.

2. The Department may request documents, interview witnesses and affected parties, and gather necessary evidence to review and make appropriate conclusions and findings.

B. Appeal. Any party dissatisfied by the Department's final decision pursuant to this Chapter may request an appeal of the Department's decision to a Hearing Officer, unless otherwise prohibited by this Chapter. The Department's administrative record shall be reviewable by the Hearing Officer.

C. Time Limit. A party must file an appeal in writing before the Department within thirty (30) of the Department's final decision. The Hearing Officer shall have no authority to consider matters not filed within thirty (30) days of the Department's final decision.

D. Filing of Appeals. An appeal shall be filed with the Department, on the prescribed form, along with any accompanying appeal fee, and shall state specifically the basis of the appeal.

E. Procedures for Appeals.

1. Hearing Dates. A hearing on a request for appeal will be scheduled before a Hearing Officer for a date no sooner than fifteen (15) days and no later

than sixty (60) days after receipt of the request for appeal and proof of service, unless the Hearing Officer determines that good cause exists for an extension of time. Upon setting the hearing date, the Hearing Officer shall send written notice to the appealing party of the date, time and place set for the hearing. Within five (5) calendar days of receipt of the notice of hearing, the appealing party shall deliver a copy of the notice to each affected Tenant or Landlord, as applicable, via personal service or certified mail return receipt requested.

2. Public Hearing. The appeal hearing shall be conducted at a hearing open to the public. At the hearing, the Hearing Officer shall review the record of the decision and hear testimony of the party requesting the appeal, representatives of the Department, and any other interested party. The Hearing Officer may continue the hearing and request additional information from the Landlord or Tenant before issuing a written decision.

The Hearing Officer shall have the power to issue orders to keep order and decorum during the hearing.

3. Application and Materials. At an appeal hearing, the Hearing Officer shall consider only the administrative record that was the subject of the Department's final decision.

F. Decision and Notice.

1. After the hearing, the Hearing Officer shall either:
a. Affirm, modify, or reverse the Department's decision and specify the reasons for its decision; or
b. Refer the matter back to the Department for further review.

2. Decisions shall be rendered within thirty (30) days of the close of the hearing. If the Hearing Officer fails to act within thirty (30) days of the close of the hearing, the Department's decision shall be deemed affirmed.

G. The Hearing Officer shall mail the Hearing Officer’s decision to the affected parties within ten (10) days after it is rendered.

H. Final decision. The decision of the Hearing Officer shall be final and not subject to further appeal.

I. Judicial Review of Hearing Officer Decision. Any person directly aggrieved by an administrative decision of a Hearing Officer pertaining to a request for appeal of a Director's decision under this Chapter, may seek judicial review in the Court pursuant to Government Code Section 53069.4 and/or Code of Civil Procedure Sections 1094.5 and 1094.6.

5.13.140. Administrative Citations.

A. Administrative Citation. Any Landlord or Tenant who violates any provision of this Chapter, or Department's procedures and guidelines, is subject to administrative fines and citations as provided in Chapter 1.40 of the Code.

B. Remedies are Cumulative. Each day that a violation continues shall constitute a separate and distinct offense for which an administrative fine may be imposed.

The remedies set forth in this section are cumulative and in addition to any other penalty provided by law, including any remedies which may be sought in a civil action. The provisions of this Chapter shall not be construed as limiting any party's right to obtain relief to which he or she may be entitled at law or in equity.

C. Notices of Violation and Administrative Fine. If the Department determines that a Landlord or Tenant has violated this Chapter, the Department may issue notices of violation and administrative fines and citations in accordance with the authority and procedures set forth in Chapter 1.40 of the Code.

D. Administrative Appeals and Judicial Review.

1. Administrative Appeal. Any Landlord or Tenant who receives a notice of administrative fines or citations may request an administrative hearing before a hearing officer in accordance with Chapter 1.40 of the Code.

2. Judicial Review of Hearing Officer Decision. Any Landlord or Tenant may seek judicial review of a hearing officer's decision pertaining to the imposition of an administrative fine or citation in accordance Chapter 1.40 of the Code.

5.13.150. Remedies.

A. Civil Liability. Any Tenant, or any other person or entity acting on behalf of the Tenant who will fairly and adequately represent the Tenant's interest, including the City, is authorized to bring a civil action and/or proceeding in a court of competent jurisdiction for violation of this Chapter, for civil penalties, injunctive, declaratory and other equitable relief, restitution and reasonable attorneys' fees and costs and may take such other steps as necessary to enforce this Chapter.

The court may award reasonable attorneys' fees and costs to a Landlord who prevails in any such action if the court determines that the Tenant's action was frivolous.

B. Civil Penalty. Any person violating any of the provisions, or failing to comply with any of the requirements of this Chapter, may be liable for a civil penalty not to exceed One Thousand Dollars ($1,000) for each violation.

C. Criminal Penalty. Any person violating any of the provisions or failing to comply with any of the requirements of this Chapter, shall be guilty of a misdemeanor and punished by a fine of not more than One Thousand Dollars ($1,000), or by imprisonment in the county jail for a period of not more than six (6) months, or by both.

D. Defense to Eviction. A Tenant may assert as an affirmative defense a Landlord’s failure to comply with the provisions of this Chapter in any action by a Landlord to recover possession of a Rental Unit.

E. Each violation of any provision of this Chapter, and each day during which any such violation is committed, permitted or continued, shall constitute a separate offense.

F. The above remedies are not exclusive and do not preclude the City or any Tenant from seeking other remedies or penalties provided by applicable law.

5.13.160. Waiver. Any waiver of rights under this Chapter shall be void as contrary to public policy.

5.13.170. Severability. If any provision of this Chapter or the application thereof to any person, property, or circumstance, is held invalid, such invalidity shall not affect other provisions or applications of this Chapter that can be given effect without the invalid provision(s) or application, and to this end, the provisions of this Chapter are declared to be severable.

ORDINANCE NO. 737

AN ORDINANCE OF THE CITY OF CUDAHY, CALIFORNIA REPEALING CHAPTER 5.12 "RENTAL PROPERTY", TITLE 5, BUSINESS LICENSES

AND REGULATIONS, OF THE CUDAHY MUNICIPAL CODE AND
ADDING NEW CHAPTER 5.14 "TENANT PROTECTIONS" TO TITLE 5

ESTABLISHING JUST CAUSE EVICTION PROTECTIONS AND OTHER

TENANT PROTECTIONS APPLICABLE TO CERTAIN RESIDENTIAL

TENANCIES IN THE CITY
WHEREAS, the City of Cudahy ("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, cities across Los Angeles County and throughout the State of California are experiencing a housing shortage and affordability crisis, which drives housing insecurity and homelessness; and
WHEREAS, per the U.S. Department of Housing and Urban Development (HUD), in 2023 the median monthly rent for a two-bedroom apartment in Los Angeles County_ is $2,222, representing an 8.7% increase over the following year; and WHEREAS, per the U.S. Census Bureau, the median household income in the City is $47,050, compared to $76,367 in Los Angeles County; and WHEREAS, according to the City's Housing Element 2021-2029 ("Housing Element") approximately 85% of households in the City are renter occupied. Of the renteroccupied households, 56.3% are rent burdened, paying more than 30% of gross income on housing; and 10.2% are severely rent burdened, paying more than half of gross income on housing; and
WHEREAS, with high housing costs, low incomes and critical affordable housing shortages, many residents in the City struggle to pay for housing and meet other basic needs such as food, clothing, transportation and healthcare; and WHEREAS, housing instability has been associated with other disruptive effects on vulnerable populations such as overcrowding, poorer health, and negative outcomes for children; and
WHEREAS, widespread housing insecurity and rent burdened households leads to heightened risk of displacement and homelessness, given the shortage of affordable housing in the City and region, and threatens the public health, safety, and welfare of City residents; and
J

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Ordinance No. 737
WHEREAS, evictions, without just cause, can be destabilizing and can create particular hardships for individuals and households of limited means, due to stress and anxiety experienced by those displaced, increased commute times and traffic impacts if displaced persons cannot find affordable housing near their workplace; and interruption of education for school-age children in the home; and
WHEREAS, an eviction can remain on a renter's credit history, impacting that persons' ability to rent elsewhere and find employment opportunities; and WHEREAS, the City Council has received public testimony at multiple meetings from City residents who declared that they and their neighbors were reluctant to register complaints against their landlords over unsuitable living conditions and/or violations of their leases by landlords or management companies, based on a fear of being evicted without just cause; and
WHEREAS, the City Council of the City of Cudahy ("City Council") formed an Ad Hoc Committee (the "Ad Hoc Committee") at the City Council meeting of July 19, 2022, to analyze and study the issue of rent control and related policies to formulate legislative or other appropriate recommendations for City Council consideration; and WHEREAS, on April 11, 2023, City staff provided an update to the City Council on the Ad Hoc Committee's efforts and the City Council directed staff to prepare a rent stabilization ordinance and a tenant eviction protections ordinance for future consideration by the City Council; and
WHEREAS, on May 16, 2023, the City Council received public testimony and an update from staff, and provided further direction regarding consideration of a rent stabilization ordinance and a tenant eviction protections ordinance; and WHEREAS, on May 19, 2023, the City Clerk posted a Notice of Public Hearing in accordance with the City's public notice requirements regarding adoption of an ordinance repealing Chapter 5.12 "Rental Property" of the Cudahy Municipal Code and adding Chapter 5.14 "Tenant Protections" to Title 5 of the Cudahy Municipal Code ("Municipal Code"), establishing Just Cause Eviction Protections and other Tenant Protections applicable to certain residential tenancies in the City; and WHEREAS, on May 30, 2023, the City Council heard public testimony under Agenda Item No. 5A regarding adoption of an ordinance repealing Chapter 5.12 "Rental Property" of the Municipal Code and adding Chapter 5.14 "Tenant Protections" to Title 5 of the Municipal Code, establishing Just Cause Eviction Protections and other Tenant Protections applicable to certain residential tenancies in the City; and WHEREAS, the California Tenant Protection Act of 2019 (the "Tenant Protection Act") went into effect on January 1, 2020. Among other provisions, the Tenant Protection Act prohibits an owner of residential property, with certain exceptions, from terminating a tenancy without just cause, (Civil Code Section 1946.2); and I

Ordinance No. 737
WHEREAS, based on the foregoing, for the preservation of public health, safety, and general welfare of the community, the City Council finds that it is in the interest of the City, to enact and enforce regulations related to just cause termination of tenancies in the City, and provide additional tenant protections regulating the relations between residential landlords and tenants; and
WHEREAS, the protections provided in this Ordinance are more protective than those set forth in California Civil Code section 1946.2 in that this Ordinance further limits the reasons for termination of a residential tenancy, provides for higher relocation assistance amounts, or provides additional tenant protections that are not prohibited by any other provision of law; and
WHEREAS, this Ordinance intends to comply with the Tenant Protection Act and all other applicable state laws.

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

SECTION 1. Findings. The Recitals above are true and correct and incorporated herein by reference.

SECTION 2. Chapter 5.12 "Rental Property" of Title 5 of the Cudahy Municipal Code is hereby repealed and deleted in its entirety.

SECTION 2. Chapter 5.14 is hereby added to Title 5 of the Cudahy Municipal Code in its entirety as shown on Exhibit "A", attached hereto and incorporated by reference herein.

SECTION 3. Inconsistent Provisions. Any provision of the Cudahy Municipal Code or appendices thereto that conflicts with the provisions of this Ordinance, to the extent of such conflict and no further, is hereby repealed or modified to the extent necessary to implement the provisions of this Ordinance.

SECTION 4. Severability. If any section, subsection, sentence, clause, or phrase of this Ordinance, or any part thereof, is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance or any part thereof. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase thereof, irrespective of the fact that any one or more section, subsection, subdivision, paragraph, sentence, clause, or phrase would be subsequently declared invalid or unconstitutional.

SECTION 5. Compliance with California Environmental Quality Act. The City Council finds that this Ordinance is not subject to the California Environmental Quality Act pursuant to Section 15060(c)(2), constituting an activity that will not result in a direct or reasonably foreseeable indirect physical change in the environment, and pursuant to

r
Ordinance No. 737
Section 15060(c)(3) constituting an activity that is not a project as defined in Section 15378.

SECTION 6. The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause this Ordinance to be published or posted as required by law.

This Ordinance shall become effective thirty (30) days after the date of its adoption.

PASSED, APPROVED, AND ADOPTED this 6
th day of June 2023.
�Qi
Daisy Lomeli, Mayor
ATTEST:

L
Ordinance No. 737

STATE OF CALIFORNIA

COUNTY OF LOS ANGELES

CITY OF CUDAHY

CERTIFICATION
)
)
)
SS:

I, Richard Iglesias, City Clerk of the City of Cudahy, hereby certify that the foregoing Ordinance No. 737 was introduced for a first reading on the 30th day of May 2023 and approved for a second reading and adopted by said Council at its regular meeting held on the 6
th day of June 2023 by the following vote, to-wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

C. Gonzalez, Fuentes, Alcantar, and Lomelf
None
J. Gonzalez
None
City
rPage 58 of 93 Page 132 of 1219

EXHIBIT A

CUDAHY MUNICIPAL CODE
TITLE 5 - BUSINESS LICENSES AND REGULATIONS
CHAPTER 5.14 – JUST CAUSE TENANT PROTECTIONS
Article I. Title, Purpose, Definitions and Applicability

5.14.010 Title

5.14.020 Purpose and Applicability

5.14.030 Definitions
Article II. General Provisions

5.14.040 Termination of Tenancy

5.14.050 For-Cause Termination of Tenancy

5.14.060 No-Fault Termination of Tenancy

5.14.070 Relocation Assistance

5.14.080 Tenant Buyout Agreements

5.14.090 Retaliatory Eviction and Anti-Harassment

5.14.100 Notices to Tenants
Article III. Administration and Enforcement

5.14.110 Enforcement

5.14.120 Administrative Citations

5.14.130 Remedies

5.14.140 Waiver

5.14.150 Severability
Article I. Title, Purpose, Applicability and Definitions

5.14.010. Title.

This Chapter shall be known as the tenant protections ordinance of the city.

5.14.020. Purpose and Applicability.

A. The purpose of this Chapter is to reasonably regulate just cause evictions so as to be more protective than Civil Code section 1946.2.

B. This Chapter shall apply to any Tenancy after at least one Tenant has continuously and lawfully occupied a Rental Unit for twelve (12) months or more.

C. This Chapter regulates evictions for certain tenancies. It requires landlords to provide relocation assistance for certain no-fault evictions, prohibits retaliation and harassment, and provides for the implementation and enforcement of this Chapter.

5.14.030. Definitions. For the purposes of this Chapter, unless the context requires otherwise, the following definitions shall apply.

A. “Buyout Agreement" means a written agreement between a Landlord and a Tenant as provided in Section 5.14.080 by which a Tenant, typically in consideration for monetary payment, agrees to vacate a Rental Unit.

B. “City” means the City of Cudahy.

C. “Code” means the City of Cudahy Municipal Code.

D. "Department" means the Community Development Department of the City of Cudahy, or other Department designated by the City Council to administer the provisions of this Chapter.

E. “Director” means the Director of the Department, or their designee.

F. “Ellis Act” means California Government Code sections 7060 - 7060.7.

G. "Housing Services" means all services provided by the Landlord related to the use or occupancy of a Rental Unit, including, water, heat, utilities, insurance, maintenance, repairs, painting, elevator service, laundry facilities, janitorial service, refuse removal, furnishings, window shades and screens, parking, storage, security services, recreational areas, right to have specified number of tenants or occupants, allowing pets, communications technologies (internet, cable and satellite services), and any other benefit, privilege or facility that has been provided by the Landlord to the Tenant with use or occupancy of a Rental Unit. Services to

a Rental Unit shall include a proportionate part of services provided to common facilities of the building in which a Rental Unit is contained.

H. "Landlord" means an owner, lessor, sublessor, or any other person entitled to offer any Rental Unit for Rent or entitled to receive Rent for the use and occupancy of a Rental Unit, and the agent, representative, or successor of any of the foregoing.

I. “Landlord’s Family Member” means a spouse, domestic partner, child, grandchild, parent, or grandparent of a Landlord who is a natural person whose name is on the title of the property.

J. “Mobilehome” means any mobilehome as defined under California Civil Code Section 798.3.

K. “Mobilehome Park” means an area of land located where two or more Mobilehome spaces are rented or leased out for Mobilehomes used as residences.

L. “Rent” means the sum of all periodic payments and all nonmonetary consideration demanded or received by a Landlord from a Tenant for the use or occupancy of a Rental Unit or Mobilehome Park space located in the jurisdictional boundaries of the City of Cudahy, including Tenant's access to and use of Housing Services. Rent includes, without limitation, the fair market value of goods accepted, labor performed, or services rendered. Rent does not include any of the following: security deposits, utility charges billed separately to the Tenant by the utility company, and pass-through fees and charges authorized pursuant to this Chapter.

M. “Rental Agreement” means an agreement, oral, written, or implied, between a Landlord and Tenant for the use or occupancy of a Rental Unit and related Housing Services.

N. “Rental Unit” means any dwelling unit, as defined under California Civil Code section 1940 subsection (c) located in the jurisdictional boundaries of the City of Cudahy and that is used or occupied for human habitation in consideration of payment of rent, whether or not the residential use is legally permitted, including

Mobilehomes rented by the owner of the Mobilehome, and accessory dwelling units.

O. “Residential Real Property” includes any parcel of land containing one or more dwelling units intended for human habitation.

P. “Tenancy” means the lawful right or entitlement of a Tenant to use or occupy a Rental Unit. This includes a lease or a sublease.

Q. “Tenant” means a tenant, subtenant, lessee, sublessee, or any other person entitled, under the terms of a Rental Agreement to the use or occupancy of any Rental Unit.

Article II. General Provisions

5.14.040. Termination of Tenancy.

A. No Landlord shall terminate a Tenancy of an occupied Rental Unit after a Tenant has continuously and lawfully occupied the Rental Unit for twelve (12) months or more unless the Landlord can demonstrate either a For Cause or No-Fault termination as specified in Sections 5.14.050 and 5.14.060.

B. When terminating a Tenancy either For Cause or No-Fault, a Landlord must comply with all of the following:

1. The Landlord must serve a written notice to the Tenant in accordance with California Civil Code sections 1946 through 1946.5 that states the Landlord will terminate the Tenancy, indicates at least one For Cause or No-Fault reason for termination in reasonable detail, and includes any other information required by federal or State law.

2. The Landlord has not accepted and will not accept Rent or any other consideration in return for the continued use of the Rental Unit beyond the term of the terminated Tenancy in compliance with California Civil Code sections 1945 through 1946.5.

3. The Landlord qualifies the termination as For Cause or No-Fault.

4. If the termination is a No Fault termination, the Landlord has provided the Tenant with the notice of relocation assistance required by Section

5.14.070.

5. The Landlord has submitted to the Department, within five (5) days after service of the notice of termination on the Tenant, a true and accurate copy of the Landlord's written notice of termination, and proof of such service, signed under penalty of perjury, on the Tenant. The Landlord shall maintain proof of service to the Department as evidence that the Landlord has complied with this Section.

5.14.050. For-Cause Termination of Tenancy.

A. For Cause Termination of Tenancy. If a Landlord can show any of the following circumstances with respect to a termination of Tenancy of a Rental Unit, the termination qualifies as a For Cause Termination:

1. Failure to Pay Rent. Tenant failed to pay Rent within three (3) days of written notice being served on Tenant by Landlord demanding payment as provided in paragraph (2) of California Code of Civil Procedure Section 1161.

2. Violation of Material Term of Rental Agreement. Tenant has continued to violate a material term of the Rental Agreement as provided in California Code of Civil Procedure section 1161 subdivision (3), after written notice to cease, and did not cure such violation within ten (10) days after receiving written notice from the Landlord of such violation.

3. Waste. A Tenant committed waste as described in California Code of Civil Procedure section 1161 subdivision (4).

4. Nuisance or Illegal Purpose. Tenant has maintained, committed, or permitted the maintenance or commission of a nuisance or used the Rental Unit for an illegal purpose as provided in California Code of Civil Procedure section 1161 subdivision (4) including:
a. Any crime or act of violence committed by a Tenant of a Rental Unit which involves use of a gun or a deadly weapon, or inflicts serious bodily injury and for which a police report has been filed; b. Any threat of violent crime or violence, which includes any statement made by a Tenant, or at the Tenant's request, by the Tenant's agent, to any person who is on the property where the

Rental Unit is located, threatening to commit a crime or violence which will result in death or serious bodily injury to another person, with the specific intent that the statement is to be taken as a threat, even if there is no intent of actually carrying it out, when on its face and under the circumstances in which it is made, it is unequivocal, immediate, and specific as to convey to the person threatened, a gravity of purpose and an immediate prospect of execution of the threat, and thereby causes that person reasonably to be in sustained fear for his or her own safety or for his or her immediate family's safety; or
c. Tenant has created or is maintaining a dangerous condition or an unsanitary condition that endangers health, safety and welfare or physically damages the Rental Unit beyond normal wear and tear and that condition has not been promptly abated or repaired after written notice to the Tenant from the Landlord and the passage of a reasonable cure period.

It shall be an affirmative defense to an action for possession of a Rental Unit under this Subsection if a court determines that: (i) The Tenant or the Tenant's household member is a victim of an act or acts that constitute domestic violence or sexual assault or stalking; and (ii) The notice of For Cause termination is substantially based upon the act or acts constituting domestic violence or sexual assault or stalking against the Tenant or a Tenant's household member, including but not limited to an action for possession based on complaints of noise, disturbances, or repeated presence of police.

5. Failure to Sign Substantially Similar Lease. The Tenant has refused to execute a written extension or renewal of a Rental Agreement upon expiration of a prior Rental Agreement, after written request or demand from the Landlord, but only if the provisions are substantially similar and

the additional term is of similar duration to the prior written Rental Agreement, and is consistent with federal, State, and local laws. For purposes of this Subsection, the Landlord's written request or demand must be received no later than sixty (60) days before final day of Tenancy of the prior Rental Agreement.

6. Assignment or Subletting in Violation of Lease. The Tenant has assigned or sublet the Rental Unit in violation of the Rental Agreement, as provided in California Code of Civil Procedure Section 1161(4).

7. Refuse Access. Tenant has continued to refuse, after Landlord has provided a written request, reasonable access to the Rental Unit by the Landlord for the purpose of making necessary repairs or improvements in accordance with California Civil Code Sections 1101.5 and 1954 and California Health and Safety Code Sections 13113.7 and 17926.1.

8. Failure to Vacate After Termination of Employment. Tenant was employed by the Landlord to serve as a resident manager or other employee, was provided with the Rental Unit as part of or as a condition of the employment and the employment has been terminated. This provision shall not apply to any Tenant whose Tenancy in the building or complex housing the Rental Unit commenced prior to assuming managerial responsibilities or whose status as a Tenant commenced prior to their status as a resident manager.

9. Failure to Vacate After Termination of Lease. A Tenant's failure to timely deliver possession of the Rental Unit after: (i) providing the Landlord written notice as provided in Civil Code section 1946 of the Tenant's intention to terminate a lease; or (ii) making a written offer to surrender, that is accepted in writing by the Landlord, but the time specified in that written notice as described in Code of Civil Procedure Section 1161(5) has expired.

5.14.060. No-Fault Termination of Tenancy.

A. No-Fault Termination of Tenancy. If a Landlord can show any of the following circumstances with respect to a termination of Tenancy in a Rental Unit, the termination qualifies as a No-Fault termination.

1. A Landlord seeks in good faith to recover possession in order to imminently:
a. Demolish the Rental Unit
b. Withdraw the Rental Unit permanently from rental housing use pursuant to the Ellis Act and other applicable State laws. i. Amendments to the Ellis Act. In the case of any amendment to the Ellis Act, or any other provision of State law which amendment is inconsistent with this Section, this Section shall be deemed to be amended to be consistent with State law, and to the extent it cannot be so amended shall be interpreted to be effective as previously adopted to the maximum extent possible.

2. A Landlord seeks in good faith to recover possession of a Rental Unit for the use and occupancy by Landlord or Landlord's Family Member as the principal residence. Said Rental Unit must be occupied as the principal residence within ninety (90) days of the Tenant household vacating the Rental Unit, and the Rental Unit must continue to be occupied as the principal residence of Landlord or Landlord’s Family Member for at least three (3) years, unless extenuating circumstances exist. a. If the Rental Agreement was entered into on or after the effective date of this Chapter, this Subsection shall apply only if the Tenant agrees, in writing, to the termination, or if a provision of the Rental Agreement allows the Landlord to terminate the Rental Agreement if the Landlord, or Landlord’s Family Member unilaterally decides to occupy the Rental Unit.
b. A Landlord must provide the Tenant sixty (60) days' written notice that the Landlord intends to terminate the Tenancy.
c. Owner-Occupancy Disclosure.

i. Not less than sixty (60) days prior to the final date of the Tenancy, in addition to any notice required by California Civil Code Section 827, the Landlord must disclose to the
Department the name(s) of the eligible individual(s) who will occupy the Rental Unit, and the relationship of said
individual(s) to the Landlord.
ii. The Department may contact Landlord during the three (3) year occupancy period to confirm that the Landlord or
Landlord's Family Member resides in the recovered Rental Unit(s), and may obtain written verification of residency. d. A Landlord may not terminate a Tenancy under this Subsection if any of the following apply, unless the Landlord or Landlord's Family Member who will reside in the Dwelling Unit is similarly situated as the Tenant or Tenant's household members who are being
displaced:
i. the Tenant has continuously resided in the Rental Unit for at least five (5) years, and a member of Tenant's household is either: (i) 62 years of age or older; or (ii) disabled as defined in Section 12955.3 of the California Government Code or handicapped as defined in Section 50072 of the California Health and Safety Code;
ii. the Tenant or member of Tenant's household is terminally ill as certified by a treating physician licensed to practice in the State of California; or
iii. the Tenant is a low-income household (low-income
household means a household whose income does not
exceed the qualifying limits for lower income families as established and amended from time to time pursuant to
Section 8 of the United States Housing Act of 1937, or as otherwise defined in California Health and Safety Code
Section 50079.5).

e. Tenant's Right of First Return.
i. If a Landlord or Landlord's Family Member ceases
occupation of the Rental Unit within three (3) years after the final date of Tenancy, the Tenant of a Rental Unit is entitled to receive notice of the first right to return to rent the same Rental Unit at the Rent previously charged plus any annual Rent increases allowed under Chapter 5.13 of the Code.
ii. Nothing in this Section shall be construed to relieve the Landlord of the obligation to directly contact the former Tenant and to advise the Tenant that the recovered Rental Unit will again be offered for Rent.

3. A Landlord seeks in good faith to recover possession to comply with any of the following: (i) An order issued by a government agency or court relating to habitability that necessitates vacating the Rental Unit; (ii) An order issued by a government agency or court to vacate the Rental Unit; or (iii) A local ordinance that necessitates vacating the Rental Unit. If it is determined by any government agency or court that the Tenant is at fault for the condition or conditions triggering the order or for the need to vacate under this Subsection, the Tenant shall not be entitled to relocation assistance.

B. All No-Fault terminations of Tenancy are eligible for relocation assistance.

5.14.070. Relocation Assistance.

A. Permanent Relocation Assistance. When relocation assistance must be paid to Tenants who are evicted from their Rental Unit pursuant to Section 5.14.060, the Landlord must make the relocation assistance payment in accordance with this Section. The Landlord must provide written notice to the Tenant of the Tenant's entitlement to permanent relocation assistance at the same time the Landlord serves a notice of termination of Tenancy.

1. The Landlord shall pay a relocation assistance amount equal to three (3) times the Tenant's monthly Rent in effect when the Landlord served the notice to terminate the Tenancy.

2. If any Tenant residing in the Rental Unit from which the Tenants are to be displaced includes a Qualified Tenant, then all Tenants living in the Rental Unit are collectively entitled to additional relocation assistance as follows:
a. The Landlord shall pay an additional relocation assistance amount equal to one (1) times the Tenant's monthly Rent in effect when the Landlord served the notice to terminate the Tenancy.
b. For purposes of this Subsection, Qualified Tenant means any Tenant who:
i. Is sixty-two (62) years of age or older, disabled, as defined in Section 12955.3 of the California Government Code or
handicapped as defined in Section 50072 of the California Health and Safety Code;
ii. Has one or more dependent children under the age of eighteen (18) residing in the Rental Unit;
iii. Meets the income limits for a “lower-income household” as defined in California Health and Safety Code section
50079.5; or
iv. Has continuously resided in the Rental Unit for five (5) years or more.

The Tenant shall notify Landlord within ten (10) days of receiving the termination of Tenancy notice, if any of the Tenants living in the Rental Unit from which the Tenants are to be displaced includes a Qualified Tenant, along with any reasonable proof of eligibility.

3. Permanent relocation assistance payments must be paid directly to the Tenant.

a. If a Rental Unit is occupied by two (2) or more Tenants, then each Tenant of the Rental Unit shall be paid a pro-rate share of the relocation assistance payment.
b. Landlord shall pay one-half of the relocation assistance due no later than fifteen (15) days following service of the termination of Tenancy and the balance due no later than five (5) business days after the Tenant has vacated the Rental Unit. If a Tenant fails to vacate after the expiration of the notice to terminate the Tenancy, the actual amount of any relocation assistance provided pursuant to this Chapter shall be recoverable as damages in an action to recover possession.

B. Temporary Relocation Assistance. A Landlord must provide temporary relocation assistance to Tenants of a Rental Unit who are temporarily displaced due to repairs, rehabilitation of a Rental Unit, health and safety violations, or other work or activities that will make the Rental Unit an untenantable dwelling, as defined in California Civil Code Section 1941.1, or will expose the Tenant to toxic or hazardous materials, or that cannot otherwise be completed while the Tenant remains in the Rental Unit.

1. Thirty (30) Days or Less. A Landlord must provide the Tenant a per-diem payment if the Tenant will be temporarily displaced for thirty (30) days or less.

2. Thirty-One (31) Days or More. A Landlord must provide the Tenant either a per-diem payment or comparable temporary accommodations, if available.

3. Per-Diem Payment.
a. Per-diem payment will be based on the Federal General Services Administration per-diem rate for lodging in the County of Los Angeles, which is updated on a yearly basis, unless otherwise agreed upon by the Landlord and Tenant, and may include any applicable transient occupancy taxes.

b. Upon mutual agreement by the Landlord and Tenant, per-diem payments may be paid directly to the Tenant, or in the event of a hotel, motel or short-term rental accommodations, directly to the hotel, motel or short-term rental.

4. Temporary Relocation Assistance payments will be made on a pro-rata basis to the eligible Tenant household.

5. Temporary Hotel or Motel Accommodation. If relocation is to a hotel or motel, the Landlord must provide a hotel or motel accommodation which is safe, sanitary, and unless otherwise agreed upon by the Landlord and Tenant, within a reasonable distance of the Tenant's Rental Unit.

6. The temporary displacement and relocation of a Tenant pursuant to this Section shall not terminate the Tenancy of the displaced Tenant. The displaced Tenant shall have the right to reoccupy his or her Rental Unit upon the completion of the work necessary for the Rental Unit to comply with housing, health, building or safety laws or any government order and the Tenant shall retain all rights of Tenancy that existed prior to the displacement.

7. Nothing in this Section shall be construed as authorizing a Landlord to require a Tenant to vacate a unit, except as permitted under federal, state, or local law.

C. No Waiver. A Tenant cannot waive his or her right to receive relocation assistance required by this Chapter.

D. Any action brought by a Tenant for a violation of this Section must be brought in a court of competent jurisdiction. No administrative remedy need be exhausted prior to filing suit pursuant to this Section.

5.14.080. Tenant Buyout Agreements.

A. Landlord's Disclosure Prior to Buyout Offer. At the time a proposed buyout agreement is provided, the Landlord shall provide each Tenant in the Rental Unit a written disclosure, on a form approved by the Department, in English and in the

Tenant’s primary language if other than English translated at the Landlord's expense that shall include all of the following:

1. A statement that the Tenant has a right not to enter into buyout negotiations or a buyout agreement;

2. A statement that the Tenant may choose to consult with an attorney before entering into a buyout agreement;

3. A statement that the Tenant may rescind the buyout agreement for up to thirty (30) days after it is fully executed;

4. A statement that the Tenant may contact the Department for information about other buyout agreements in the Tenant's neighborhood and other relevant information;

5. Any other information required by the Department consistent with the purpose and provisions of this Section; and

6. A space for each Tenant to sign and write the date the Landlord provided the Tenant with the disclosure.

B. Requirement for Buyout Agreements. The buyout agreement shall:

1. Be in writing in English and the language in which the buyout agreement was negotiated if other than English translated at the Landlord's expense.

The Landlord shall give each Tenant a copy of the proposed buyout agreement at least forty-five (45) days before the agreement is executed by the parties.

2. Include the following statement in bold letters in at least 12-point boldface type in close proximity to the space reserved for the signature of the Tenant:
a. "You may cancel this buyout agreement in writing at any time before the thirtieth (30th) day after all parties have signed this buyout agreement."
b. "You have a right not to enter into a buyout agreement." c. "You may choose to consult with an attorney before signing this buyout agreement. The City of Cudahy Community Development

Department may also have information about other buyout agreements in your neighborhood."
C. Rescission of Buyout Agreement. A Tenant shall have the right to rescind a buyout agreement for up to thirty (30) days after its execution by all parties. In order to rescind a buyout agreement, the Tenant must hand-deliver, email, or send by certified mail return receipt requested, a statement to the Landlord indicating that the Tenant has rescinded the buyout agreement.

D. Filing of Buyout Agreement and Disclosure Notice. The Landlord shall provide the Tenant a copy of the fully executed buyout agreement within ten (10) days of execution. Landlord shall also file with the Department a copy of the executed buyout agreement, along with proof of service to the Tenant of the disclosure notice as required in this Section, within ten (10) days after the buyout agreement is executed by all parties.

5.14.090. Retaliatory Eviction and Anti-Harassment.

A. Retaliatory Eviction.

1. No Landlord may terminate a Tenancy or refuse to renew a Tenancy or otherwise cause a Tenant to vacate a Rental Unit, if the Landlord’s intent in termination of the Tenancy or refusal to renew the Tenancy is retaliatory in nature, and if the Tenant is not in default as to the payment of Rent.

2. A Tenant may assert retaliation affirmatively or as a defense to the Landlord's action regardless of the period of time which has elapsed between the Tenant's assertion or exercise of rights under this Chapter and the alleged act of retaliation.

3. Retaliation against a Tenant because of the Tenant's exercise of rights under this Chapter is prohibited. Retaliation claims may only be brought in court and may not be addressed administratively. A court may consider the protections afforded by this Chapter in evaluating a claim of retaliation.

B. Anti-Harassment. No Landlord, or any person, acting as a principal or agent, offering a Rental Unit for Rent, or any contractor, subcontractor or employee of

the Landlord shall, with respect to property used as a Rental Unit under any Rental Agreement or other lawful Tenancy, do any of the following:

1. Interrupt, terminate, or fail to provide Housing Services required by Rental Agreement or by federal, State, or local housing, health, or safety laws, or threaten to do so, or violate California Civil Code sections 789.3 and 1940.2.

2. Do any of the actions in bad faith:
a. Fail to perform repairs and maintenance required by Rental Agreement or by federal, State, or local laws;
b. Fail to exercise due diligence in completing repairs and maintenance once undertaken;
c. Fail to follow appropriate industry repair, containment, or remediation protocols designed to minimize exposure to noise, dust, lead, paint, mold, asbestos, or other building materials with potentially harmful health impacts;
d. Conduct elective renovation or construction of Rental Unit for the purpose of harassing a Tenant;
e. Refuse to acknowledge or accept receipt of a Tenant's lawful Rent payment as set forth in a Rental Agreement, by usual practice of the parties, or in a notice to pay Rent or quit;
f. Refuse to cash or process a rent check or other form of acceptable Rent payment for over thirty (30) days after it is tendered; g. Fail to maintain a current address, in addition to any electronic payment methods, for delivery of Rent payments;
h. Request information that violates a Tenant's right to privacy, including, but not limited to, residency or citizenship status, protected class status, or social security number, except as required by law or in the case of a social security number, for the purpose of determining the Tenant’s qualifications for a Tenancy; i. Release information protected by the Tenant's right to privacy except as required or authorized by law; or

j. Request or demand an unreasonable amount of information from Tenant in response to a request for reasonable accommodation.

3. Abuse the right of access into a Rental Unit as established by California Civil Code section 1954 or other applicable law. This includes, but is not limited to, entries for inspections that are not related to necessary repairs or services; entries that are unreasonable in frequency or duration; entries that improperly target certain Tenants or are used to collect evidence against the occupant or otherwise beyond the scope of an otherwise lawful entry.

4. Influence or attempt to influence a Tenant to vacate a Rental Unit through fraud, misrepresentation, intimidation or coercion, which shall include threatening to report a Tenant to the United States Department of Homeland Security.

5. Threaten the Tenant, by word or gesture, with physical harm, or repeatedly mistreat an occupant of a Rental Unit during in-person conversations, through social media postings or messages, or other communications, with language, verbal or written, that a reasonable person would consider likely to cause fear or provoke an immediate violent reaction.

6. Violate any law which prohibits discrimination based on race, gender, sexual preference, sexual orientation, ethnic background, nationality, religion, age, parenthood, marriage, pregnancy, disability, human immunodeficiency virus (HIV)/ acquired immune deficiency syndrome (AIDS), occupancy by a minor child, or source of income.

7. Take action to terminate any Tenancy including service of any notice to quit or other eviction notice or bring any action to recover possession of a Rental Unit based upon facts which the Landlord has no reasonable cause to believe to be true or upon a legal theory which is untenable under the facts known to the Landlord. No Landlord shall be liable under this Subsection for bringing an action to recover possession unless and until the Tenant has obtained a favorable termination of that action.

8. Remove from the Rental Unit personal property, furnishings, or any other items without the prior written consent of the Tenant, except when done pursuant to enforcement of a legal termination of Tenancy.

9. Provide false written or verbal information regarding any federal, State, or local Tenant protections, including mischaracterizing the nature or effect of a notice to quit or other eviction notice.

10.Offer payments to:
a. A Tenant to vacate, including a Buyout Agreement offer, more frequently than once every six (6) months, after the Tenant has notified the Landlord in writing that the Tenant does not desire to receive further offers of payments to vacate.
b. Attempt to coerce a Tenant to vacate accompanied with threats or intimidation. This shall not include settlement offers in pending eviction actions made in good faith and not accompanied with threats or intimidation.

11.Interfere with a Tenant's right to quiet use and enjoyment of a Rental Unit as that right is defined by law.

12.Commit repeated acts or omissions of such significance as to substantially interfere with or disturb the comfort, repose, peace, or quiet of any person lawfully entitled to occupancy of such Rental Unit and that cause, are likely to cause, or are intended to cause any person lawfully entitled to occupancy of a Rental Unit to vacate such Rental Unit or to surrender or waive any rights in relation to such occupancy.

13.Interfere with the right of Tenants to organize as Tenants and engage in concerted activities with other Tenants for the purpose of mutual aid and protection; provide property access to tenant organizers, advocates, or representatives working with or on behalf of Tenants living at a property; convene tenant or tenant organization meetings in an appropriate space accessible to Tenants under the terms of their Rental Agreement; or distribute and post literature in common areas, including lobby areas and

bulletin boards, informing other Tenants of their rights and of opportunities to involve themselves in organized tenant activities.

C. Remedies and Penalties. For the purposes of this Section

1. If any Landlord or any person, acting as a principal or agent, offering a Rental Unit for rent, or any contractor, subcontractor, or employee of the Landlord violates the terms of this Section, an aggrieved Tenant may institute a civil action, as allowed under Section 5.14.130, for injunctive relief, direct money damages, and any other relief that the court deems appropriate.

2. The above remedies are not exclusive and do not preclude any Tenant from seeking other remedies or penalties provided by this Chapter or applicable law. No administrative remedy need be exhausted prior to filing suit pursuant to this Section.

5.14.100. Notices to Tenants.

A. Mandatory Notices to Tenants. Landlords must provide to each Tenant, prior to, or at the time of agreeing to rent or lease a Rental Unit, a notice of Tenant rights under this Chapter. The Department shall publish a form notice of Tenant rights in English and other frequently spoken languages. Landlords must provide the form notice in the following circumstances.

1. When entering into a Rental Agreement, by including a copy of the form notice as an exhibit or attachment to the written Rental Agreement;

2. When renewing a Rental Agreement; and
B. If the Rental Agreement is negotiated or written in a language other than English, the Landlord must also provide the form notice of Tenant rights in English and the language in which the Rental Agreement was negotiated or written.

Article III. Administration and Enforcement

5.14.110. Enforcement.

A. Enforcement Authority. The Department is authorized to take appropriate steps it deems necessary to administer and enforce this Chapter.

B. The Director of the Department, or designee, may develop and publish procedures and guidelines to aid in the implementation of this Chapter.

C. The Department may collect data regarding residential evictions in the City, in an effort to help the City better understand rental housing and its impacts on renters and housing providers, and inform the need to develop and implement additional ordinances or policies regarding residential housing.

5.14.120. Administrative Citations.

A. Administrative Citation. Any Landlord or Tenant who violates any provision of this Chapter, or Department's procedures and guidelines, is subject to an administrative fine as set in a schedule of fines adopted by resolution by the city council as provided in Chapter 1.40 of the Code.

B. Remedies are Cumulative. Each day that a violation continues shall constitute a separate and distinct offense for which an administrative fine may be imposed.

The remedies set forth in this Section are cumulative and in addition to any other penalty provided by law, including any remedies which may be sought in a civil action. The provisions of this Chapter shall not be construed as limiting any party's right to obtain relief to which he or she may be entitled at law or in equity.

C. Notices of Violation and Administrative Fine. If the Department determines that a Landlord or Tenant has violated this Chapter, the Department may issue notices of violation and administrative fine in accordance with the authority and procedures set forth in Chapter 1.40 of the Code.

D. Administrative Appeals and Judicial Review.

1. Administrative Appeal. Any Landlord or Tenant who receives a notice of administrative fine may request an administrative hearing before a hearing officer in accordance with Chapter 1.40 of the Code.

2. Judicial Review of Hearing Officer Decision. Any Landlord or Tenant may seek judicial review of a hearing officer's decision pertaining to the imposition of an administrative fine in accordance Chapter 1.40 of the Code.

5.14.130. Remedies.

A. Civil Liability. Any Tenant, or any other person or entity acting on behalf of the Tenant who will fairly and adequately represent the Tenant's interest, including the City, is authorized to bring a civil action and/or proceeding in a court of competent jurisdiction for violation of this Chapter, for civil penalties, injunctive, declaratory and other equitable relief, restitution and reasonable attorneys' fees and costs and may take such other steps as necessary to enforce this Chapter.

The court may award reasonable attorneys' fees and costs to a Landlord who prevails in any such action if the court determines that the Tenant's action was frivolous.

B. Civil Penalty. Any person violating any of the provisions, or failing to comply with any of the requirements of this Chapter, may be liable for a civil penalty not to exceed One Thousand Dollars ($1,000) for each violation.

C. Criminal Penalty. Any person violating any of the provisions or failing to comply with any of the requirements of this Chapter, shall be guilty of a misdemeanor and punished by a fine of not more than One Thousand Dollars ($1,000), or by imprisonment in the county jail for a period of not more than six (6) months, or by both.

D. Defense to Eviction. A Tenant may assert as an affirmative defense a Landlord’s failure to comply with the provisions of this Chapter in any action by a Landlord to recover possession of a Rental Unit.

E. Each violation of any provision of this Chapter, and each day during which any such violation is committed, permitted or continued, shall constitute a separate offense.

F. The above remedies are not exclusive and do not preclude the City or any Tenant from seeking other remedies or penalties provided by applicable law.

5.14.140. Waiver. Any waiver of rights under this Chapter shall be void as contrary to public policy.

5.14.150. Severability. If any provision of this Chapter or the application thereof to any person, property, or circumstance, is held invalid, such invalidity shall not affect