Cudahy City Council
March 18, 2025

Administrative Review Record - Aqua Tergere, LLC

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Administrative Review Record - Aqua Tergere, LLC

Page | 1
5220 Santa Ana Street
Cudahy, CA, 90201
Phone: (323) 773-5143
Fax: (323) 771-2072
www.cityofcudahy.com
Mayor
Elizabeth Alcantar
Vice Mayor
Jose R. Gonzalez
Councilmember
Jack M. Guerrero
Councilmember
Blanca Lozoya
Councilmember
Daisy Lomeli
City Manager
Alfonso Noyola, ICMA-CM
Incorporated November 10, 1960
October ϭϬ, 2022
Via U.S. Mail and Email:

Aqua Tergere, LLC
Attn: Charles Arden, Manager
912 E. 12Th Street #B STE 315
Los Angeles, CA 90021
Re: DA 18-019C for operator located at 8210 Atlantic Avenue Cudahy, CA Dear Owner/Operator:

Below is a summary of past and current amounts due under Development Agreement DA 18-019C for Ordinance No 697, with an Effective date of February 12, 2018.

Fee Type Payment
Amount
Payment Period City
Code
Community Benefit Program $178,000.92
$69,333.68
($40,351.86)
Outstanding balance through July 31,
2021
Monthly installments ($5,333.36)
from August 2021 to August 2022
Payments received August 2021,
September 2021 and February 2022
CBP
Cost Recovery Fee $33,713.55
($6,328.04)
City labor cost from August 2021 to
August 2022
Payments received August 2021,
September 2021 and February 2022
UZBFϭ
Non-Operating Fee $17,928.54
$8,632.26
($3,320.10)
Outstanding balance through July 31,
2021
August 2021 through August 2022
The monthly non-operating fee is
$664.02 (.42 x 1,581-square footage of
the premises)
Payments received August 2021
and September 2021
OPFEE
Total Fees $257,608.95 Due October 31, 2022

Administrative Review Record - Aqua Tergere, LLC

Page | 2
Community Benefit Program
The Community Benefit Program (CBP) payment amount is due the first day of each month and is considered late if payment is received on or after the fifth day of the month. All CBP outstanding balance as of July 31, 2021, and current CBP monthly installments totaling $206,982.74 are due October 31,2022.

Cost Recovery Fee
The City labor cost and third-party contractors from August 2021 to August 2022 totaling $27,385.51 are due October 31, 2022.

Non-Operating Fees
The outstanding balance as of July 31, 2021, and the current monthly non-operating fees from August 2021 to August 2022 totaling $23,240.70 are due October 31, 2022.

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

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

Administrative Review Record - Aqua Tergere, LLC

CBP URBF1 OPFEE
Operator Comm Benefit Cost Recovery Non Operating Ouƚstanding Aqua Tergere, LLC
September 22, 2021 Letter 178,000.92 Ͳ 17,928.54 195,929.46

BILLINGS
Aug 2021 5,333.36 335.18 664.02 6,332.56 Sep 2021 5,333.36 406.78 664.02 6,404.16 Oct 2021 5,333.36 351.00 664.02 6,348.38 Nov 2021 5,333.36 3,173.23 664.02 9,170.61 Dec 2021 5,333.36 130.65 664.02 6,128.03 Jan 2022 5,333.36 494.28 664.02 6,491.66 Feb 2022 5,333.36 1,137.30 664.02 7,134.68 Mar 2022 5,333.36 875.25 664.02 6,872.63 Apr 2022 5,333.36 1,103.93 664.02 7,101.31 May 2022 5,333.36 2,115.34 664.02 8,112.72 Jun 2022 5,333.36 127.60 664.02 6,124.98 Jul 2022 5,333.36 924.63 664.02 6,922.01 Aug 2022 5,333.36 932.38 664.02 6,929.76

PAYMENTS
Aug 2021 (17,675.93) (664.02) (1,660.05) (20,000.00) Sep 2021 (17,675.93) (664.02) (1,660.05) (20,000.00) Oct 2021 Ͳ
Nov 2021 Ͳ
Dec 2021 Ͳ
Jan 2022 Ͳ
Feb 2022 (5,000.00) (5,000.00)
Mar 2022 Ͳ
Apr 2022 (5,000.00) (5,000.00)
May 2022 Ͳ
Jun 2022 Ͳ
Jul 2022 Ͳ
Aug 2022
Annual City Reimbursement Costs 72,020.00
Cost per operator (10) 7,202.00
Three years(2019Ͳ2022) 3 years
City Labor 21,606.00 21,606.00
Balance as of August 31, 2022 206,982.74 27,385.51 23,240.70 257,608.95 (a) City Reimbursement cost of $7,202 per year (x three years (2019Ͳ2022)= $21,606.00

Administrative Review Record - Aqua Tergere, LLC

Page | 1

5220 Santa Ana Street
Cudahy, CA, 90201
Phone: (323) 773-5143
Fax: (323) 771-2072
www.cityofcudahy.com
Mayor
Elizabeth Alcantar
Vice Mayor
Jose R. Gonzalez
Councilmember
Jack M. Guerrero
Councilmember
Blanca Lozoya
Councilmember
Daisy Lomeli
City Manager
Alfonso Noyola, ICMA-CM
Incorporated November 10, 1960
November 14, 2022
Via U.S. Mail and Email:

Aqua Tergere, LLC
Attn: Charles Arden, Manager
912 E. 12Th Street #B STE 315
Los Angeles, CA 90021
Re: DA 18-019C for operator located at 8210 Atlantic Avenue Cudahy, CA Dear Owner/Operator:

Below is a summary of past and current amounts due under Development Agreement DA 18-019C for Ordinance No 697, with an Effective date of February 12, 2018.

Fee Type Payment
Amount
Payment Period City
Code
Community Benefit Program $178,000.92
$80,000.40
($40,351.86)
Outstanding balance through July 31,
2021
Monthly installments ($5,333.36)
from August 2021 to October 2022
Payments received August 2021,
September 2021 and February 2022
CBP
Cost Recovery Fee $38,178.49
($6,328.04)
City labor cost from August 2021 to
October 2022
Payments received August 2021,
September 2021 and February 2022
URBF1
Non-Operating Fee $17,928.54
$9,960.30
($3,320.10)
$697.22
Outstanding balance through July 31,
2021
August 2021 through October 2022
The monthly non-operating fee is
$664.02 (.42 x 1,581-square footage of
the premises)
Payments received August 2021
and September 2021
Penalties from August 2022 to
October 2022
OPFEE
Total Fees $274,765.87 Due November 30, 2022

Administrative Review Record - Aqua Tergere, LLC

Page | 2
Community Benefit Program
The Community Benefit Program (CBP) payment amount is due the first day of each month and is considered late if payment is received on or after the fifth day of the month. All CBP outstanding balance as of July 31, 2021, and current CBP monthly installments totaling $217,649.46 are due November 30, 2022.

Cost Recovery Fee
The City labor cost and third-party contractors from August 2021 to October 2022 totaling $31,850.45 are due November 30, 2022.

Non-Operating Fees
The outstanding balance as of July 31, 2021, and the current monthly non-operating fees from August 2021 to October 2022 totaling $24,568.74 are due November 30, 2022.

Late Payment Penalties
Penalties totaling $697.22 from August 2022 to October 2022 are due November 30, 2022.

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

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

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

Administrative Review Record - Aqua Tergere, LLC

CBP URBF1 OPFEE OPFEE
Operator Comm Benefit Cost Recovery Non Operating Penalties Outstanding Aqua Tergere, LLC
September 22, 2021 Letter  Ͳ 178,000.92  17,928.54 195,929.46

BILLINGS
Aug 2021 5,333.36 335.18 664.02 6,332.56 Sep 2021 5,333.36 406.78 664.02 6,404.16 Oct 2021 5,333.36 351.00 664.02 6,348.38 Nov 2021 5,333.36 3,173.23 664.02 9,170.61 Dec 2021 5,333.36 130.65 664.02 6,128.03 Jan 2022 5,333.36 494.28 664.02 6,491.66 Feb 2022 5,333.36 1,137.30 664.02 7,134.68 Mar 2022 5,333.36 875.25 664.02 6,872.63 Apr 2022 5,333.36 1,103.93 664.02 7,101.31 May 2022 5,333.36 2,115.34 664.02 8,112.72 Jun 2022 5,333.36 127.60 664.02 6,124.98 Jul 2022 5,333.36 924.63 664.02 6,922.01 Aug 2022 5,333.36 932.38 664.02 166.01 7,095.77 Sep 2022 5,333.36 2,550.29 664.02 232.41 8,780.08 Oct 2022 5,333.36 1,914.65 664.02 298.81 8,210.84

PAYMENTS
Aug 2021 (17,675.93) (664.02) (1,660.05) (20,000.00) Sep 2021 (17,675.93) (664.02) (1,660.05) (20,000.00) Oct 2021
Nov 2021
Dec 2021
Jan 2022
Feb 2022 (5,000.00) (5,000.00) Mar 2022
Apr 2022 (5,000.00) (5,000.00) May 2022
Jun 2022
Jul 2022
Aug 2022
Sep 2022
Oct 2022 0.00 0.00 0.00 0.00 0.00
Annual City Reimbursement Costs 72,020.00
Cost per operator (10) 7,202.00
Three years(2019Ͳ2022) 3 years
City Labor 21,606.00 21,606.00 Balance as of October 31, 2022 217,649.46 31,850.45 24,568.74 697.22 274,765.87 (a) City Reimbursement cost of $7,202 per year (x three years (2019Ͳ2022)= $21,606.00

Administrative Review Record - Aqua Tergere, LLC

Administrative Review Record - Aqua Tergere, LLC

Administrative Review Record - Aqua Tergere, LLC

Page | 1
5220 Santa Ana Street
Cudahy, CA, 90201
Phone: (323) 773-5143
Fax: (323) 771-2072
www.cityofcudahy.com
Mayor
Elizabeth Alcantar
Vice Mayor
Jose R. Gonzalez
Councilmember
Jack M. Guerrero
Councilmember
Blanca Lozoya
Councilmember
Daisy Lomeli
City Manager
Alfonso Noyola, ICMA-CM
Incorporated November 10, 1960
December ϭϮ, 2022
Via U.S. Mail and Email:

Aqua Tergere, LLC
Attn: Charles Arden, Manager
912 E. 12Th Street #B STE 315
Los Angeles, CA 90021
Re: DA 18-019C for operator located at 8210 Atlantic Avenue Cudahy, CA Dear Owner/Operator:

Below is a summary of past and current amounts due under Development Agreement DA 18-019C for Ordinance No 697, with an Effective date of February 12, 2018.

Fee Type Payment
Amount
Payment Period City
Code
Community Benefit Program $178,000.92
$85,333.76
($40,351.86)
Outstanding balance through July 31,
2021
Monthly installments ($5,333.36)
from August 2021 to November 2022
Payments received August 2021,
September 2021 and February 2022
CBP
Cost Recovery Fee $40,769.97
($6,328.04)
City labor cost from August 2021 to
November 2022
Payments received August 2021,
September 2021 and February 2022
URBF1
Non-Operating Fee $17,928.54
$10,624.32
($3,320.10)
$1,062.43
Outstanding balance through July 31,
2021
August 2021 through November 2022
The monthly non-operating fee is
$664.02 (.42 x 1,581-square footage of
the premises)
Payments received August 2021
and September 2021
Penalties from August 2022 to
November 2022
OPFEE
Total Fees $283,719.94 Due December 29, 2022

Administrative Review Record - Aqua Tergere, LLC

Page | 2
Community Benefit Program
The Community Benefit Program (CBP) payment amount is due the first day of each month and is considered late if payment is received on or after the fifth day of the month. All CBP outstanding balance as of July 31, 2021, and current CBP monthly installments totaling $222,982.82 are due December 29, 2022.

Cost Recovery Fee
The City labor cost and third-party contractors from August 2021 to November 2022 totaling $34,441.93 are due December 29, 2022.

Non-Operating Fees
The outstanding balance as of July 31, 2021, and the current monthly non-operating fees from August 2021 to November 2022 totaling $25,232.76 are due December 29, 2022.

Late Payment Penalties
Penalties totaling $1,062.43 from August 2022 to November 2022 are due December 29, 2022.

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

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

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

Administrative Review Record - Aqua Tergere, LLC

CBP URBF1 OPFEE OPFEE
Operator Comm Benefit Cost Recovery Non Operating Penalties Outstanding Aqua Tergere, LLC
September 22, 2021 Letter  Ͳ 178,000.92  17,928.54 195,929.46

BILLINGS
Aug 2021 5,333.36 335.18 664.02 6,332.56 Sep 2021 5,333.36 406.78 664.02 6,404.16 Oct 2021 5,333.36 351.00 664.02 6,348.38 Nov 2021 5,333.36 3,173.23 664.02 9,170.61 Dec 2021 5,333.36 130.65 664.02 6,128.03 Jan 2022 5,333.36 494.28 664.02 6,491.66 Feb 2022 5,333.36 1,137.30 664.02 7,134.68 Mar 2022 5,333.36 875.25 664.02 6,872.63 Apr 2022 5,333.36 1,103.93 664.02 7,101.31 May 2022 5,333.36 2,115.34 664.02 8,112.72 Jun 2022 5,333.36 127.60 664.02 6,124.98 Jul 2022 5,333.36 924.63 664.02 6,922.01 Aug 2022 5,333.36 932.38 664.02 166.01 7,095.77 Sep 2022 5,333.36 2,550.29 664.02 232.41 8,780.08 Oct 2022 5,333.36 1,914.65 664.02 298.81 8,210.84 Nov 2022 5,333.36 2,591.48 664.02 365.21 8,954.07

PAYMENTS
Aug 2021 (17,675.93) (664.02) (1,660.05) (20,000.00) Sep 2021 (17,675.93) (664.02) (1,660.05) (20,000.00) Oct 2021
Nov 2021
Dec 2021
Jan 2022
Feb 2022 (5,000.00) (5,000.00) Mar 2022
Apr 2022 (5,000.00) (5,000.00) May 2022
Jun 2022
Jul 2022
Aug 2022
Sep 2022
Oct 2022
Nov 2022 0.00 0.00 0.00 0.00 0.00
Annual City Reimbursement Costs 72,020.00
Cost per operator (10) 7,202.00
Three years(2019Ͳ2022) 3 years
City Labor 21,606.00 21,606.00 Balance as of November 30, 2022 222,982.82 34,441.93 25,232.76 1,062.43 283,719.94 (a) City Reimbursement cost of $7,202 per year (x three years (2019Ͳ2022)= $21,606.00

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ATTACHMENT LL.

Email from Operator dated August 31,
2024

Administrative Review Record - Aqua Tergere, LLC

From: Aqua Tergere
To: Cecilia Madrigal
Cc: Glenn Ward Calsada; Jessica Guillen; Stephanie Arechiga; Juan Arauz; Alfonso Noyola Subject: Re: AQUA TERGERE, LLC (8210 ATLANTIC AVE)
Date: Thursday, August 31, 2023 9:45:22 AM
Attachments: image001.png
Dear Ms. Gonzales and Team,
I'm writing this email to inform you and the city of Cudahy that we have been attempting to reach council and they are unavailable until after the labor day holiday. We are requesting an extension up to and including September 15, 2023 to evaluate and respond to their correspondence.

Thank you,
Charles Arden,
Aqua Teregere LLC
On Tue, Aug 22, 2023 at 1:56 PM Cecilia Madrigal <[email protected]> wrote:

Dear Mr. Arden,
Please find the attached letter from the City of Cudahy relating to the City’s acceptance of Aqua Tergere LLC (Suspended) to surrender their Cannabis Commercial Permit and termination of Development Agreement.

The documents enclosed must be signed, notarized, and returned no later than 10 days from the date of this letter.

Thank you,
Cecilia Madrigal-Gonzalez
Senior Planner
City of Cudahy
5220 Santa Ana Street
Cudahy, California 90201

Administrative Review Record - Aqua Tergere, LLC

Tel: 323-773-5143 Ext. 252
www.cityofcudahy.com

Administrative Review Record - Aqua Tergere, LLC

ATTACHMENT MM.

Executive Order N-33-20

Administrative Review Record - Aqua Tergere, LLC

EXECUTIVE DEPA RTMENT

STATE OF CALIFORNIA
EXECUTIVE ORDER N-33-20
WHEREAS on March 4, 2020, I proclaimed a State of Emergency to exist in California as a result of the threat of COVID-19; and
WHEREAS in a short period of time, COVID-19 has rapidly spread throughout California, necessitating updated and more stringent guidance from federal, state, and local public health officials; and
WHEREAS for the preservation of public health and safety throughout the entire State of California, I find it necessary for all Californians to heed the State public health directives from the Department of Public Health.

NOW, THEREFORE, I, GAVIN NEWSOM, Governor of the State of California, in accordance with the authority vested in me by the State Constitution and statutes of the State of California, and in particular, Government Code sections 8567, 8627, and 8665 do hereby issue the following Order to become effective immediately:

IT IS HEREBY ORDERED THAT:
1) To preserve the public health and safety, and to ensure the healthcare delivery system is capable of serving all, and prioritizing those at the highest risk and vulnerability, all residents are directed to immediately heed the current State public health directives, which I ordered the Department of Public Health to develop for the current statewide status of COVID-19. Those directives are consistent with the March 19, 2020, Memorandum on Identification of Essential Critical Infrastructure Workers During COVID-19 Response, found at: https://covid 19.ca.gov/.

Those directives follow:

ORDER OF THE STATE PUBLIC HEALTH OFFICER
March 19, 2020
To protect public health, I as State Public Health Officer and Director of the California Department of Public Health order all individuals living in the State of California to stay home or at their place of residence except as needed to maintain continuity of operations of the federal critical infrastructure sectors, as outlined at
https://www.cisa.gov/identifying-critical-infrastructure-during-covid-19.

In addition, and in consultation with the Director of the Governor's Office of Emergency Services, I may designate additional sectors as critical in order to protect the health and well-being of all Californians.

Pursuant to the authority under the Health and Safety Code 120125, 120140, 131080, 120130(c), 120135, 120145, 120175 and 120150, this order is to go into effect immediately and shall stay in effect until further notice.

The federal government has identified 1 6 critical infrastructure sectors whose assets, systems, and networks, whether physical or virtual, are considered so vital to the United States that their incapacitation or

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Administrative Review Record - Aqua Tergere, LLC

ATTACHMENT NN.

State of California COVID-19
Essential Workforce Guidelines

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

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

Sector index
Sector profile
The Health Care and Public Health (HPH) Sector is large, diverse, and open, spanning both the public and private sectors. It includes publicly accessible healthcare facilities, research centers, suppliers, manufacturers, and other physical assets and vast, complex public1. Health Care / Public Health COVID19.CA.GOV
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12/20/23, 4:33 PM Essential workforce - Coronavirus COVID-19 Response https://covid19.ca.gov/essential-workforce/ 2/11
private information technology systems required for care delivery and to support the rapid, secure transmission and storage of large amounts of HPH data.

Essential workforce, if remote working is not
practical:

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

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

3. Workers needed to support transportation to and from healthcare facilities and provider appointments.

Administrative Review Record - Aqua Tergere, LLC

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4. Workers needed to provide laundry services, food services, reprocessing of medical equipment, and waste management.

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

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

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

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

9. Public health / community health workers, including those who compile, model, analyze and communicate public health
information.

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10. Behavioral and mental health workers responsible for coordination, outreach, engagement, and treatment to
individuals in need of mental health and/or behavioral services.

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

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

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

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

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

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

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

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

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19. Mortuary services providers, including workers performing mortuary, funeral, cremation burial, cemetery, and related services, including funeral homes, crematoriums, cemetery workers and coffin makers.

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

21. Workers supporting veterinary hospitals and clinics.

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

Relevant sector guidance:

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

2. Emergency Services

3. Food and Agriculture

4. Energy

5. Water and Wastewater

6. Transportation and Logistics

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Essential workforce, if remote working is not
practical:

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

7. Communications and Information Technology

8. Government Operations and other communitybased essential functions

9. Critical Manufacturing

10. Financial Services

11. Chemical and Hazardous Materials

12. Defense Industrial Base

13. Industrial, Commercial, Residential, and
Sheltering Facilities and Services

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

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

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

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

6. Warehouse operators, including vendors and support personnel critical for business continuity (including heating, ventilation, and air conditioning (HVAC) and electrical engineers, security

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personnel, and janitorial staff), e-commerce or online
commerce, and customer service for essential functions.

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

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

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

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

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

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

13. Professional services, such as legal or accounting services, when necessary to assist in compliance with legally mandated activities and critical sector services

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14. Workers responsible for handling property management, maintenance, and related service calls who can coordinate the response to emergency “at-home” situations requiring
immediate attention, as well as facilitate the reception of deliveries, mail, and other necessary services.

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

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

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

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

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

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

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

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

23. Workers necessary for the installation, maintenance, distribution, and manufacturing of water and space heating equipment and its components.

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24. Support required for continuity of services, including commercial disinfectant services, janitorial/cleaning personnel, Relevant guidance for all
sectors
Face Coverings Guidance
Orientación Sobre el Uso de Mascarillas de Tela
Self-Isolation for Older Adults and Those Who Have Elevated Risk Aislamiento para Adultos Mayores y Personas que Tienen un Riesgo Elevado
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Safer At Work
My Turn
The CDPH Call Center
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CA.gov Department of Public Health Governor’s Newsroom Accessibility Privacy Policy Feedback Register to vote
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Accessibility certification PDF

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ATTACHMENT OO.

Offer to Settle Claims from Operator
dated October 26, 2023

Administrative Review Record - Aqua Tergere, LLC

Administrative Review Record - Aqua Tergere, LLC

Administrative Review Record - Aqua Tergere, LLC

ATTACHMENT PP.

City’s Response to Offer to Settle Claims
dated November 27, 2023

Administrative Review Record - Aqua Tergere, LLC

November 27, 2023
BY U.S. CERTIFIED MAIL & EMAIL
F. Araiza-Kasama, Esq.

P.O. Box 80746
San Marino, CA 91118
Re: Offer to Settle Claims
Dear Ms. Araiza-Kasama:

Please allow this letter to serve as a formal response to your October 26, 2023 correspondence (“Settlement Offer”) on behalf of your client Aqua Tegere, LLC (“Operator”).

As you are aware, the City of Cudahy (“City”) and Operator entered into Development Agreement No. 18-011C (“Development Agreement”) on February 12, 2018 and Operator was subsequently granted approval of Commercial Cannabis Permit 18-0011 (“CCP”).

After multiple correspondence with Operator, Mr. Charles Arden acting on behalf of Operator, represented that he wished to terminate the Development Agreement and the City presented Operator with a Memorandum of Termination of the Development Agreement (“Memorandum”) on or around August 22, 2023 and was provided ten (10) days to execute the Memorandum. Per Mr. Arden’s request, the City granted a two-week extension, until September 15, 2023 to respond.

The City is in receipt of your Settlement which seeks the following concessions from the City:
(1) Termination of the Development Agreement;
(2) City’s waiver of all fees, penalties, and/or other sums, including but not limited to any and all guarantees by the Operator and/or individual members, owed by the Operator and/or its members;
(3) City’s waiver of all fees, penalties, sums, and/or claims, including but not limited to any personal guarantees, due and/or owed by the Operator and/or any individual member(s); and
(4) Mutual waiver between Operator and the City for any and all claims arising out of or from under the Development Agreement.

Due to the threat of litigation made in your correspondence the City Council considered your matter in closed session pursuant to Government Code Section 54956.6(d)(2). The City Council has opted not to accept the foregoing proposed settlement terms.

Additionally, we note that your Settlement Offer makes a number of unfounded assertions regarding the “preclusion of timely construction and/or development” of the project that are not supported by evidence. For example, state and federal emergency orders did not preclude commercial construction or development and continued throughout the height of the COVID-19 pandemic because they were categorized as essential businesses. Additionally,

Administrative Review Record - Aqua Tergere, LLC

F. Araiza-Kasama, Esq.

November 27, 2023

cannabis activities, including without limitation, the cultivation, manufacture, and sale of cannabis products and commercial construction were also categorized as essential businesses and were therefore able to continue. City Hall also continued to conduct business and serve its constituent businesses in a socially distanced manner, despite the physical premises being closed to the public. Project applicants were able to drop off materials for staff review and contact staff via phone, email, and videoconferencing services. Other allegations regarding lack of equitable treatment and preferential treatment are unfounded and unsupported by any evidence.

Further, to address a comment regarding the City Council’s unlikelihood to waive all incurred fees was not made in “bad faith” but in accordance with the California Constitution’s prohibition against unlawful gifts of public funds. (Article XVI, Section 6.) I further note that at no time was the Operator prohibited the opportunity to make such a request to the City Council.

Lastly, your Settlement Offer alleges there was a lack of due process. Please be advised that Operator has received multiple notices of default and failure to abide by the terms of the Development Agreement, CCP and the Cudahy Municipal Code. (See e.g., Attachment A.) Please be advised, the City reserves the right to utilize all rights, remedies, available at law and in equity to recover any past due amounts.

Please do not hesitate to contact me if you have questions. Thank you for your time and attention.

Very truly yours,
Paloma McEvoy
Assistant City Attorney
[email protected]
Attachment
cc: Mark G. Sanchez
Charles N. Arden
Carlos Vonrell Clemente
Alfonso Noyola, City Manager
Stephanie Arechiga, City Attorney
Richard Iglesias, City Clerk
Juan Arauz, Community Development Director
Joshua Calhoun, Finance Director
Cecilia Madrigal-Gonzalez, Senior Planner
Daisy Lomeli, Mayor
Jose Gonzalez, Vice Mayor
Elizabeth Alcantar, Councilmember
Martin Fuentes, Councilmember
Dr. Cynthia Gonzalez, Councilmember

Administrative Review Record - Aqua Tergere, LLC

ATTACHMENT A

Administrative Review Record - Aqua Tergere, LLC

Mayor
Daisy Lomeli
Vice Mayor
Jose R. Gonzalez
Councilmember
Elizabeth Alcantar
Councilmember
Martin U. Fuentes
Councllmember
Cynthia Gonzalez
City Manager
Alfonso Noyola, ICMA-CM
March 20, 2023
SENT VIA EMAIL: [email protected]
1 5T CLASS MAIL
Attn: Vince Sanchez
Dear Mr. Sanchez
CUDAHY
OP!;:N MINDS, OP!;:N DOORS
Incorporated November 10, 1960
RE: FINAL DEMAND
8210 Atlantic Avenue, City of Cudahy, CA -Aqua Tergere, LLC Development Agreement No. DA18-011C
Commercial Cannabis Permit No. 18-0011
�LLU .:)dllld 1-\lld .:)lft::t::L
Cudahy,CA,90201
Phone: (323) 773-5143
Fax: (323) 771-2072
www.cityofcudahy.com
On August 17, 2022, City of Cudahy staff, conducted a site inspection of property located at 8210 Atlantic Avenue. During this inspection, several violations of Building, Mechanical, Electrical, and Plumbing Codes were observed, including occupation of the building without a certificate of occupancy, rendering the structure unsafe for occupancy. As a result, the Building and Safety Division declared the structure, its use, and occupancy unsafe and dangerous, and the subject site was "red tagged".

The following is a list of violations observed by city staff on August 17, 2022:

Building Code:
-All construction completed inside the building was done without engineered drawings and has not completed any plan check procedures and thus no building permits for any work were obtained.
-All structurally insulated panel rooms were constructed without proper plan check approval and with no engineered drawings and without building permits. -Cannabis extraction room located inside building without permits, and without proper LA County Fire Department approval/plan check.

Administrative Review Record - Aqua Tergere, LLC

Administrative Review Record - Aqua Tergere, LLC

Administrative Review Record - Aqua Tergere, LLC

Mayor
Daisy Lomeli
Vice Mayor
Jose R. Gonzalez
Councilmember
Elizabeth Alcantar
Councilmember
Martin U. Fuentes
Councllmember
Cynthia Gonzalez
City Manager
Alfonso Noyola, ICMA-CM
March 20, 2023
SENT VIA EMAIL: [email protected]
1 5T CLASS MAIL
Attn: Vince Sanchez
Dear Mr. Sanchez
CUDAHY
OP!;:N MINDS, OP!;:N DOORS
Incorporated November 10, 1960
RE: FINAL DEMAND
8210 Atlantic Avenue, City of Cudahy, CA -Aqua Tergere, LLC Development Agreement No. DA18-011C
Commercial Cannabis Permit No. 18-0011
�LLU .:)dllld 1-\lld .:)lft::t::L
Cudahy,CA,90201
Phone: (323) 773-5143
Fax: (323) 771-2072
www.cityofcudahy.com
On August 17, 2022, City of Cudahy staff, conducted a site inspection of property located at 8210 Atlantic Avenue. During this inspection, several violations of Building, Mechanical, Electrical, and Plumbing Codes were observed, including occupation of the building without a certificate of occupancy, rendering the structure unsafe for occupancy. As a result, the Building and Safety Division declared the structure, its use, and occupancy unsafe and dangerous, and the subject site was "red tagged".

The following is a list of violations observed by city staff on August 17, 2022:

Building Code:
-All construction completed inside the building was done without engineered drawings and has not completed any plan check procedures and thus no building permits for any work were obtained.
-All structurally insulated panel rooms were constructed without proper plan check approval and with no engineered drawings and without building permits. -Cannabis extraction room located inside building without permits, and without proper LA County Fire Department approval/plan check.

Administrative Review Record - Aqua Tergere, LLC

Administrative Review Record - Aqua Tergere, LLC

Administrative Review Record - Aqua Tergere, LLC

ATTACHMENT QQ.

Secretary of State Certificate of Status of
Aqua Tergere, LLC dated July 25, 2024

Administrative Review Record - Aqua Tergere, LLC

Secretary of State
Certificate of Status
I, SHIRLEY N. WEBER, PH.D., California Secretary of State, hereby certify:

The above referenced entity's powers, rights and privileges are suspended in California.

This certificate relates to the status of the entity on the Secretary of State’s records as of the date of this certificate and does not reflect documents that are pending review or other events that may affect status.

No information is available from this office regarding the financial condition, status of licenses, if any, business activities or practices of the entity.

Suspended - FTB
Entity Name:

Entity No.:

Registration Date:

Entity Type:
201733410125
11/30/2017
Limited Liability Company - CA
Status:

Formed In: CALIFORNIA

AQUA TERGERE, LLC
IN WITNESS WHEREOF, I execute this certificate and affix the Great Seal of the State of California this day of July 25, 2024.

SHIRLEY N. WEBER, PH.D.

Secretary of State
Certificate No.:

To verify the issuance of this Certificate, use the Certificate No. above with the Secretary of State Certification Verification Search available at bizfileOnline.sos.ca.gov. 232243024

Administrative Review Record - Aqua Tergere, LLC

ATTACHMENT RR.

State Department of Cannabis Control
License Search dated July 25, 2024

Administrative Review Record - Aqua Tergere, LLC

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Administrative Review Record - Aqua Tergere, LLC

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Administrative Review Record - Aqua Tergere, LLC

ATTACHMENT SS.

Correspondence from City and
Operator regarding rescheduling
Review Hearing date

Administrative Review Record - Aqua Tergere, LLC

Administrative Review Record - Aqua Tergere, LLC

From: Jessica Guillen
To: Aqua Tergere; [email protected]
Cc: Cecilia Madrigal; Juan Arauz; Stephanie Arechiga ([email protected]); Paloma McEvoy; Alfonso Noyola; Raul Diaz; Joshua Calhoun
Subject: Rescheduled date: Notice of Review Hearing - August 27, 2024 Date: Tuesday, July 30, 2024 11:49:22 AM
Attachments: Reschedule of Review Hearing- Aqua Tergere LLC, July 30,2024.pdf Good afternoon,
The attached letter is a follow up notice to the July 11, 2024, letter titled “Notice of Review Hearing” .

On July 24, 2024, the City of Cudahy (“City”) received email correspondence from F. AraizaKasame, Esq. requesting to reschedule the August 12, 2024, hearing date stating Aqua Tergere, LLC (“Operator”) is unable to attend the hearing. Suggested alternative dates included the week of August 26, 2024, or the second and third week in September 2024. The City has granted a one-time request to reschedule the Review Hearing.

Your new hearing date is:

DATE: Tuesday, August 27, 2024
TIME: 9:00AM
PLACE: City of Cudahy – Bedwell Hall
5220 Santa Ana Street, Cudahy CA 90201
The City Manager of the City of Cudahy (“City”) has appointed Steve Napolitano to act as an independent hearing officer for a Review Hearing on your compliance with the terms of your Development Agreement (“Agreement”) with the City. Under Section 19 of the Agreement, the City may conduct Periodic and Special Reviews of the Owner’s “good faith compliance with the terms of the Agreement.” The burden of proof is on the Owner to demonstrate compliance. Please submit any arguments and supporting documents evidencing compliance ten (10) days prior to the Review Hearing. In the event of a finding of noncompliance, the City Council may terminate the Agreement or impose such conditions as are reasonably necessary to protect the interests of the City in accordance with the Agreement and state law. The decision of the City Council shall be final, subject only to judicial review pursuant to Code of Civil Procedure Section 1094.5.

This letter shall also serve as notice that the findings of this Review Hearing may inform the City Manager’s decision to revoke or suspend Commercial Cannabis Permit No. CCP18-0011 pursuant to Cudahy Municipal Code (“CMC”) Section 5.20.080(6), due to a failure to comply with the requirements of Chapter 5.20 of the CMC, or any condition of approval, or any other agreement or covenant required – inclusive of this Agreement.

The estimated cost for the Review hearing is $12,695.00. The Owner is responsible for the cost

Administrative Review Record - Aqua Tergere, LLC

of the Review Hearing. You are requested to deliver a cashier's check payable to the City of Cudahy three (3) days prior to the hearing date. The Review Hearing will proceed as scheduled whether or not the deposit is made; however, the City may consider the failure to make the deposit a further default on the Development Agreement.

Please contact Cecilia Madrigal at 323-773-5143 ext. 252 or [email protected] no later than ten (10) days from the date of this letter to confirm your appearance at the Review Hearing If we do not hear back from you by this date, we will assume you waive your right to present evidence at the hearing. Please be advised that the City’s Staff Report with exhibits will be available, upon request, for your review ten (10) days prior to the Hearing.

Thank you,
Jessica Guillen
Assistant Planner
City of Cudahy
5220 Santa Ana Street
Cudahy, California 90201
Tel: 323.773.5143 ext. 229
www.cityofcudahy.com

Administrative Review Record - Aqua Tergere, LLC

Administrative Review Record - Aqua Tergere, LLC

Administrative Review Record - Aqua Tergere, LLC

Administrative Review Record - Aqua Tergere, LLC

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Administrative Review Record - Aqua Tergere, LLC

ATTACHMENT TT.

Letter from Operator dated August
26, 2024

Administrative Review Record - Aqua Tergere, LLC

4868-3911-6765
Marshall J. Hogan
Partner
P 714.427.7432 | F 714.427.7799
[email protected]
Snell & Wilmer | Plaza Tower | 600 Anton Boulevard | Suite 1400 | Costa Mesa, CA 92626 SWLAW.COM August 26, 2024
Paloma McEvoy, Esq.

Olivarez Madruga Law OrganizaƟon, LLP
500 S Grand Ave, Floor 12
Los Angeles, CA 90071
[email protected]
Dear Ms. McEvoy:

Thank you for speaking with me this aŌernoon. As we discussed, my firm has just been retained by Aqua Tergere LLC to help it with respect to the possible winding up of its affairs. Despite anything that has happened in the past, we can speak only to Aqua Tergere’s representaƟon going forward. We intend to work with you and the City of Cudahy in a professional and reliable manner with respect to the dispute Aqua Tergere and the City.

During our call, you informed me that the City of Cudahy is holding a hearing tomorrow at 9:00 a.m. (“Hearing”) concerning Aqua Tergere’s compliance under the Developmental Agreement. I had not been informed of the Hearing and the Ɵming of my call was coincidental. Indeed, I had not even received your informaƟon unƟl last Thursday and was unable to reach out to you unƟl earlier today. At this point, my firm has known about the Hearing with less than 24 hours’ noƟce—when I learned about it from you on our call. When I asked about virtual or telephonic access, I was told that only in-person appearances were allowed at the Hearing. I have tried to contact colleagues who pracƟce land use law about aƩending the hearing and, unfortunately, I have found no one available to aƩend the Hearing on such short noƟce. Even if someone were able to aƩend, that person would not have Ɵme to educate him or herself sufficiently to speak about the substance of the allegaƟons. More than likely, such person would be asking the City for a short conƟnuance of the Hearing, which is the purpose of this leƩer.

We ask that the City conƟnue the Hearing by one month. This short conƟnuance would allow my firm to understand the allegaƟons so that it can be in a posiƟon to respond to those allegaƟons on behalf of Aqua Tergere and avoid potenƟal prejudice that would result from going forward with the Hearing in Aqua Tergere’s absence.

We understand this dispute has been pending for several months, if not years. We submit that another 30-day conƟnuance will not prejudice the City, but runs a great risk of prejudicing Aqua Tergere. Aqua Tergere reserves all rights with respect to the City’s allegaƟons and the Hearing, including without limitaƟon the right to challenge any findings or determinaƟons made at the Hearing in Aqua Tergere’s absence.

Administrative Review Record - Aqua Tergere, LLC

4868-3911-6765
Marshall J. Hogan
Partner
P 714.427.7432 | F 714.427.7799
[email protected]
Snell & Wilmer | Plaza Tower | 600 Anton Boulevard | Suite 1400 | Costa Mesa, CA 92626 SWLAW.COM We appreciate your consideraƟon of this maƩer.

Very truly yours,
Snell & Wilmer
Marshall J. Hogan

Administrative Review Record - Aqua Tergere, LLC

Ordinance No. 759

EXHIBIT “B”

HEARING OFFICER DECISION AND ORDER

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DECISION and ORDER
Administrative Hearing Regarding Compliance by Aqua Tergere LLC (Respondent) with Commercial Cannabis Permit (CCP) 18-0011 and Development Agreement (DA) 18-011C Between Respondent and the City of Cudahy (City).

Hearing Date: August 27, 2024.

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

The hearing took place in the City Council Chambers at Cudahy City Hall, 5220 Santa Ana St., Cudahy, CA 90201. The hearing was recorded and a copy is available through the City Clerk’s Office.

Respondent: Aqua Tergere LLC, 8210 Atlantic Avenue, Cudahy, CA 90201. Respondent did not appear and was not represented at the hearing.

City was present and represented by:
• Cecilia Madrigal-Gonzalez, Senior Planner
• Paloma McEvoy, Assistant City Attorney
• Juan Arauz, Community Development Director
• Joshua Calhoun, Finance Director
• Raul Diaz, Building Official
• Richard Iglesias, City Clerk

DECISION SUMMARY
Based on the evidence and analysis discussed below, this Hearing Officer finds that a preponderance of the evidence shows that Respondent, despite considerable notice and opportunities to cure any issues, has breached the terms and conditions of DA 18-011C and its CCP and recommends that the Planning Commission and/or City Council repeal Ordinance No. 697 and terminate DA 18-011C and revoke CCP 18-0011.

ADMINISTRATIVE HEARING PROCEDURES
All state and local public entities are subject to due process of law. State agencies are subject to statutory requirements, including the Administrative Procedures Act. Local public agencies are, with some minor exceptions, not subject to the APA and generally subject only to the constitutional limitations of due process of law. Govt. Code §11410.30. While a local agency may elect to apply some or all of the provisions of the APA to its hearings, the City has not done so.

The process required by law are those imposed by our constitution(s) as well as any procedures adopted by the City. In Mohilef v. Janovici (1996) 51 Cal.App.4th 267 and E.W.A.P., Inc. v. City of Los Angeles (1997) 56 Cal.App.4th 310, the court explored what due process is necessary in an administrative proceeding. There is general agreement that there must be notice and an opportunity to be heard. Beyond this, “there is no precise manner of hearing which must be afforded; rather the particular interests at issue must be considered in determining what kind of hearing is appropriate. A formal hearing, with full rights of confrontation and cross-examination is not necessarily required. (Saleeby v. State Bar (1985) 39 Cal.3d 547, 565, 216 Cal.Rptr. 367, 702 P.2d 525.) ‘Due process’ is an elusive concept. Its exact boundaries are undefinable, and its content varies according to specific

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factual contexts.” Mohilef at 286. Our Supreme Court has stated, “[D]ue process may require only that the administrative agency comply with the statutory limitations on its authority.” People v. Ramirez (1979) 25 Cal.3d 260, 269
Beyond notice and a hearing, the procedures available in this case to the participants are those provided by Cudahy Municipal Code (CMC) 5.20.080.

The legal standard of review applicable to an administrative hearing is based on a preponderance of the evidence, or “evidence which is of greater weight and more convincing than the evidence which is offered in opposition to it; that is evidence which as a whole shows that the fact sought to be proved is more probable than not.” Black’s Law Dictionary, Fifth Edition.

BACKGROUND
Background information was presented in the City’s Staff Report dated August 27, 2024, with attachments A through TT, which were admitted into the record.

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

On September 17, 2018, after conducting a duly noticed hearing, in conjunction with CMC Section

20.28.030, the Planning Commission reviewed, considered, and recommended disapproval of an ordinance to enter into and approve a Development Agreement (“DA”) and denial of a CCP No. 18- 0011 to permit cannabis manufacturing activities with accessory general business offices at 8210 Atlantic Avenue, Cudahy, CA (“Site”). The Agenda, Staff Report, and Draft Minutes are in Attachments B, C, and D.

On or around August 14, 2018, Respondent submitted a tenant improvement (“TI”) plan check application for cannabis activities at the Site to the City’s third-party plan checker (Plan Check #PC18- 0011) (Attachment EE). Plan Check #PC18-0011 was disapproved and waiting for Respondent to resubmit as of September 4, 2019 (Attachment FF). Due to inactivity, Plan Check # PC 18-0011 automatically expired 180-days afterwards, on March 2, 2020. The City has no record of a request for a time extension on the plan check application from the Respondent.

On October 1, 2018, the City Clerk’s Office received the Respondent’s appeal of the Planning Commission’s disapproval of the CCP and recommendation not to approve a development agreement between the City and the Respondent (Attachment E), pursuant to CMC Section 20.84.160 (Appeals).

Respondent claimed the Planning Commission “failed to articulate findings and provide supporting evidence identifying specific in the record that are reasons for the denial.” On November 6, 2018, the City Council, after conducting a duly noticed hearing, in conjunction with CMC Section 20.28.060, and after independent consideration and de novo review on appeal, the City Council approved the execution of DA No. 18-0011C (Attachment F) by first reading of Ordinance No. 697 and issuance of CCP No. 18-0011 through the approval of City Council Resolution No. 18-49 (Attachment X). The Agenda, Minutes, and Staff Report are provided in Attachments G, H, and I respectively.

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On November 20, 2018, the City Council conducted a second reading and adopted Ordinance No. 697 (Attachment J), authorizing the execution of DA No. 18-011C (Attachment K) inclusive of Exhibits A-F (Attachment L) between Respondent and the City authorizing commercial cannabis manufacturing activities and office at the Site as illustrated in Figures 1 and 2 in the Staff Report. The Site Plan and Floor Plan are incorporated by reference in Article 3(a) of DA No. 18-011C. Recital I of DA No. 18-011C permitted the Respondent to operate in an approximately 2,665 square foot (sf) building, inclusive of 1,084 sf of cannabis manufacturing space (Attachment K). The Agenda, Minutes, and Staff Report for the November 20, 2018 City Council Meeting are provided in Attachments M, N, O, respectively.

On March 18, 2019, the City received a plan check application (Plan Check #440) submittal for interior tenant improvements (“TI”) for a cannabis facility at the Site (Attachment R).

On October 2, 2019, the City provided Respondent with a Notice of Delinquency (Attachment P) prior to placing the Respondent in default status due to payment non-compliance with the Development Agreement and Commercial Cannabis Permit, inclusive of the non-payment of Community Benefit Fees, Cost Recovery Fees, and Non-Operating Fees in the amount of sixty-four thousand two hundred sixty-seven dollars and ninety-three cents ($64,267.93). The Respondent was given no later than October 17, 2019, to pay the past due amounts, however, the default was not timely cured.

On December 12, 2019, the City’s third-party plan checker approved Plan Check #440 for interior tenant improvements as noted in the record log (Attachment DD). No building permit was issued pursuant to Plan Check #440, therefore the plan check approval expired one-hundred and eighty (180) days after the approval date on June 12, 2020. The City has no record of a time extension request by the Respondent.

On May 4, 2021, the City provided Respondent with a Notice of Default (Attachment Q) due to the Respondent’s non-compliance with payment of fees and associated penalties in the amount of two hundred eight thousand three hundred nine dollars and nine cents ($208,309.09). The Respondent was given no later than thirty (30) days to cure the default, however, the default was not timely cured.

On August 17, 2022, City staff and the Los Angeles County Sheriff’s Department conducted an inspection of the Site and observed multiple Building, Mechanical, Electrical, and Plumbing Code violations. As such, the City issued a stop work notice due to unpermitted construction (Attachment S).

During the inspection, the following building, mechanical, fire, electrical, and plumbing code violations were observed:

1. installation of insulated panel walls;

2. installation of cannabis extraction room;

3. installation of fire suppression system;

4. installation of HVAC ducts;

5. installation of an upgraded electrical panel; and

6. installation of plumbing throughout the facility.

All violations observed were constructed without obtaining proper Zoning Clearance, engineered drawings, plan check approval, building permit issuance, and inspections. The Respondent failed to take necessary actions to correct the stop work notice. To correct the actions, the Respondent was required to obtain requisite approvals and permits from the City Planning Division and Building & Safety Division. As of the writing of the Staff Report, the Respondent has not obtained requisite approvals and permits from the City Planning Division, Building & Safety Division, or the County Fire Department.

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On September 13, 2022, the City proceeded to declare the structure unsafe and dangerous for occupancy, commonly referred to as “red-tag” and issued a letter (Attachment T) to Respondent to clear all violations within 10 days. The notice was also placed at the Site as shown in Attachment T.

However, as detailed below, Vladimir Calderon (“Property Owner”) pulled a demolition permit to remove the unpermitted improvements and the Site’s red-tag status was removed on May 9, 2023.

On September 20, 2022, Respondent appeared at City Hall to discuss the Site’s red-tag status. City staff spoke with Respondent and answered questions on the unpermitted improvements and financial obligations. Respondent also verbally requested a time extension, City staff advised Respondent to submit formal extension in writing. No such written request was ever received.

On September 21, 2022, the City received an email (Attachment U) from Vince Sanchez memorializing the conversation with City staff on September 20, 2022, and acknowledging the red tag status, and informing the City of hardships with their previous contractors, requesting to amend the DA to allow a different license type and requesting an extension to complete the list of corrections detailed in Attachment T.

On September 22, 2022, the City received an email from Cheryl Montanez (Attachment GG) from MO+RE Design Solutions in which Ms. Montanez stated that the unpermitted improvements did not match the plans she had reviewed and requested additional information and guidance to understand the City’s building permit process. City staff advised Ms. Montenez regarding the City’s records and building permit process. No further correspondence or inquiries were received from Ms. Montanez.

On December 6, 2022, the City Manager presented the City Council with a proposed Cannabis Deferment and Payment Program to assist cannabis operators with the accumulated Community Benefits, Cost Recovery and Non-Operating Fees by deferring and providing additional time for payment without penalty. The City Council directed the City Manager to offer the Payment Agreement to operators who had defaulted on their payment obligations, which was approved by the City Council.

All cannabis operators interested in participating in this program were given no later than January 31, 2023, to execute a payment agreement with the City. The City Manager did not receive a request from the Respondent to participate in the Cannabis Deferment and Payment Plan.

On March 20, 2023, the City sent a Final Demand Letter (Attachment W) demanding Respondent to respond to the following demands: 1) An updated project description; 2) Approvable plans for the Respondent’s cannabis operation; and 3) Forwarding payment for the total past due amounts. The Respondent did not respond in a timely manner and failed to make any attempt to cure the defaults within the thirty (30) day period.

On April 24, 2023, the City received an unsolicited email from "[email protected]," claiming to provide notice to the City that Aqua Tergere, LLC had (1) “officially shut down;” (2) the company had gone bankrupt; and (3) the company was no longer able to continue operations (Attachment Y). The email also informed the City that the building lease had expired and the Respondent returned the keys to the landlord. Lastly, the email informed the City that the Respondent was withdrawing its “submission application” (Attachment Y).

On May 2, 2023, the City responded to the Respondent's email communication, which informed the Owner that the notice was insufficient to terminate the DA and provided the correct process in order to terminate the DA which requires the written notice to “be signed, by an authorized party, and given personally or by registered or certified mail (return receipt requested), or by Federal Express, UPS or

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similar couriers” (Attachment Y). The Respondent was given no later than (10) days from the date of the letter to submit the requisite documentation (Attachment Y).

On May 9, 2023, the City issued the Property Owner a demolition permit (Permit #820) to demolish all unpermitted work (Attachment CC). The Site’s red tag-status was subsequently removed.

On May 18, 2023, the City received formal written notification dated May 8, 2023, from Mr. Charles Arden, representing the Respondent, informing the City of their decision to terminate the lease agreement for the Site and requesting that the letter serve as official confirmation of the voluntary termination of their cannabis operation in the City (Attachment Z).

According to the lease terms, the Respondent’s leasehold interest in the Site expired on May 31, 2023 (Attachment L). The lease did not provide any options to extend the lease term.

On August 22, 2023, the City provided Respondent a letter (Attachment HH) acknowledging the May 8, 2023, Notice of Termination was received by the City pursuant to DA Article 14(d) and effective upon the date of the written notice. The letter confirmed that the Respondent had “ceased all cannabis operations within the City. Proper notice of termination of the Development Agreement has been given by Aqua Tergere, LLC and such termination is effective upon the date written notice was given to the City. Therefore, the City is prepared to process documents terminating Development Agreement No.

DA18- 0011 [as] of May 18, 2023, except as set forth in the Agreement” (Attachment HH, emphasis original). The City advised that it had prepared documents to formally terminate the DA pursuant to Article 11(c), which states “Termination of this Agreement shall not, however, eliminate the rights of the City to seek any applicable and available remedies or damages based upon acts or omissions occurring before termination.” As of May 18, 2023, the outstanding fees due to the City, inclusive of Operating Fees, Community Benefit Fees, and Cost Recovery Fees, is $334,921.56. The City prepared an “Agreement Re: Aqua Tergere, LLC’s Notice of Termination of Development Agreement No. DA18- 011C and Voluntary Surrender of Commercial Cannabis Permit No. 18-0011” (Attachment HH – pp. 3- 6) and a “Memorandum of Termination” (Attachment HH – pp. 7- 8) for Respondent’s review and signature. The Respondent responded to the City by asking for an extension of time, until September 15, 2023, to respond to the City’s Notice of Termination (Attachment LL).

On October 26, 2023, more than a month after the Respondent’s requested extension (Attachment O) to respond, an attorney for the Respondent contacted the City with an offer to settle the outstanding amount owed to the City, under the following terms:

1. termination of DA No. 18-011C;

2. waiver of all fees, penalties, and/or other sums, including but not limited to any and all guarantees by the Company and/or individual members, allegedly owned by the Respondent and/or its members;

3. waiver of all fees, penalties, sums, and/or claims, including but not limited to, any personal guarantees, allegedly due and/or owed by the Respondent and/or individual member(s); and

4. mutual waiver of all fees, penalties, sums, and/or claims arising out of or from under DA No. 18- 011C.

The Respondent’s legal counsel did not dispute the amount of the fees accumulated or the fact that fees were due, but objected to payment on the basis that the Respondent was “unable to secure timely reviews and/or approval of plans or specifications” during “most of 2020 and 2021” (Attachment OO).

Respondent’s counsel further argued that the “City is precluded from collecting any fees or penalties due to State and Federal emergency orders in place preventing or precluding timely construction and/or

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development, that the City’s failure to treat all applicants/licensees equitably during this time of extreme emergency was a denial of due process, and the alleged Community Benefit Payments (CBD) presuppose a ‘going concern’ – a fully operational business” (Attachment OO). Respondent’s legal counsel did not offer any explanation as to the Respondent’s noncompliance in 2019, 2022, and 2023.

Nor did Respondent’s counsel demonstrate how the Respondent had been treated inequitably by the City or how the Respondent had been denied due process.

Due to the characterization of the statements made by Respondent’s counsel and an offer to “settle claims” the City Council conferred regarding the foregoing settlement terms in a Closed Session hearing pursuant to Government Code Section 54956.6(d)(2), which permits a closed session discussion due to anticipated litigation. The City Council did not accept the Respondent’s proposed settlement terms and directed the City Attorney’s Office to communicate this decision to the Respondent’s counsel. The City’s letter noted the number of unfounded and unsupported assertions made by the Respondent’s counsel including the fact that governmental orders during the COVID-19 pandemic did not preclude commercial construction or cannabis activities such as cultivation, manufacture, and sales; the lack of substantiation regarding unfair or inequitable treatment; a Constitutional prohibition of a gift of public funds; and a lack of due process (Attachment PP).

On July 11, 2024, the City issued to the Respondent a Notice of Review Hearing with the hearing date, time, and place via certified mail (Attachment II).

On July 24, 2024, the City received email correspondence from F. Araiza-Kasame, Esq. requesting the August 12, 2024, hearing date stating Respondent is unable to attend the hearing (Attachment SS).

On July 30, 2024, the City granted a one-time request to Respondent to reschedule the Review Hearing to August 27, 2024, at 9:00 AM (Attachment SS). The revised Notice of Review Hearing with the hearing date, time and place was sent via certified mail and email.

As of July 25, 2024, the website for the California Department of Cannabis Control shows no record of a cannabis license issued to Aqua Tergere, LLC (Attachment RR).

As of July 25, 2024, the Respondent’s status with the Secretary of State and the Franchise Tax Board is suspended (Attachment QQ), meaning the Respondent’s powers, rights and privileges are suspended in the state of California.

On August 26, 2024, the City received correspondence from Respondent’s legal counsel advising the City that they had recently been retained and asking for a one month continuance of the hearing.

PROCEDURAL ISSUES
As noted, Respondent did not participate and was not represented at the hearing. No evidence was submitted by Respondent.

By letter dated August 26, 2024, the City received another request to reschedule Respondent’s hearing date by a month from Respondent’s newly engaged legal counsel, Marshall Hogan of the law firm of Snell & Wilmer. This request was denied by the City given that Respondent had previously been given a one-time grant to reschedule the hearing as mentioned above. Mr. Hogan’s letter stated that he was not even aware of the hearing schedule until he talked to the City’s legal counsel prior to sending his letter requesting the rescheduling. Respondent was provided adequate notice of the hearing date and time, and it was Respondent’s responsibility to inform their new counsel of it.

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Under these circumstances, the Hearing Officer agreed that Respondent had adequate notice of the hearing, that Respondent had been given a grant to reschedule the hearing previously, and that it was Respondent’s responsibility to inform its new counsel of the hearing date and time and the circumstances under which the hearing was to be held, and that for these reasons, a further rescheduling was also denied by the Hearing Officer.

Evidence submitted prior to the hearing by City staff and testimony and statements made at the hearing by City staff are incorporated herein by reference, including the City’s Staff Report dated August 27, 2024, including all attachments previously mentioned.

The City engaged this Hearing Officer to conduct an impartial, independent review of the evidence in this matter and determine whether Respondent is in compliance with its CCP and DA between itself and the City.

No objections or other procedural issues were raised.

Presenting City Staff members were sworn in prior to giving testimony.

EVIDENCE
Joshua Calhoun, Finance Director, testified as to the accuracy of amounts owed by Respondent and that Respondent had failed to make their required fee payments aside from three small installment payments. Mr. Calhoun confirmed that Respondent did not participate in the City’s deferment plan.

Raul Diaz, Building Official, stated that the City approved Respondent’s plans but no permits were ever issued to Respondent for any property improvements, and as a result, Respondent’s plan approval expired 180 days later. Mr. Dias further stated that a subsequent site inspection found multiple violations, which led to the City red tagging the building due to safety concerns. Respondent’s unpermitted improvements were later demolished by the Property Owner.

Cecilia Madrigal-Gonzalez, Senior Planner, stated that no plan checks or permits were ever issued to Respondent.

Richard Iglesias, City Clerk, stated that all records referred to in the City’s Staff Report were true and correct and that all files were part of City’s permanent records.

ANALYSIS
Pursuant to the CMC Section 5.20.080(6)(a), “[a]ny material violations of this chapter or any other relevant city law by a cannabis permittee, or cannabis permittee’s agent, is grounds for suspending or revoking the relevant cannabis permit.” To suspend or revoke a cannabis permit the City Manager must determine “that the cannabis permittee has failed to comply with any conditions of approval, or any agreement or covenant.”
Under Section 19 of the Development Agreement, if the “City finds and determines based on substantial evidence that, Owner or Landlord executing [the] Agreement, or successor in interest thereto, has not complied in good faith with the terms or conditions of the Agreement, City may terminate or modify [the] Agreement (except that no modification shall increase Owner’s liability nor reduce Owner’s rights).”

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The City asserts that Respondent has made several material violations of the CCP and/or DA as outlined in the City’s Staff Report and testimony, which will be discussed as follows.

1. Breach of Payment Obligations
On February 12, 2018, Respondent executed DA No. 18-011C, which is a legally binding contract between the Respondent and the City and requires payment of certain fees. Additionally, in accordance with Article 7(c)(1), late payment of Non-Operating Fees is subject to penalties that begin to accrue once a payment is more than thirty (30) days late. The City provided proper notice of default to the Respondent with the opportunity to cure, but the Respondent failed to fulfill its monetary obligations owed to the City (Attachment KK).

Pursuant to the DA Section 5.b (Community Benefit Fees), Section 7(c) (Operating Fees) and Section 8 (Cost Recovery Fees), the Respondent must pay the City an annual Community Benefit Fee in the amount of $66,667.00 ($13,333.40 down payment and monthly payments in the amount of $5,333.36), a Cost Recovery Fee, and an Operating [or Non-Operating] Fee each year since 2018. The Respondent is also obliged to make payments for Cost Recovery Fees within 30 days of receipt of a City invoice pursuant to Condition of Approval Nos. 1(a) and 1(b) of the CCP; pay all Operating Fees under the DA pursuant to Condition of Approval No. 8; and all fees due under the DA pursuant to Condition of Approval No. 17. The City offered the Respondent a Deferred Cannabis Payment Plan to grant the Respondent relief in the form of deferred payment obligations of the Operating Fees and a payment schedule for past due Community Benefit Fees and Cost Recovery Fees; and an obligation to remain current on recurring fees under the DA, however the City did not receive any response from the Respondent. As stated above, on May 18, 2023, the City was provided notice by the Respondent stating they had ceased cannabis operations, and as such the termination began effective upon the date of written notice received.

Pursuant to DA Article 11(c) the termination of the DA does not eliminate the City from seeking any applicable and available remedies or damages based upon acts or omissions occurring before termination. Respondent is not relieved of obligations already incurred. As such, Respondent has not made the required timely payments and as of May 18, 2023, the outstanding fees and costs to the City are $334,921.56 as shown in Table 1 of the Staff Report.

No evidence was provided by the Respondent regarding its failure to pay the fees and penalties discussed above. The City is not obligated to waive any fees or penalties in this matter and no evidence was provided to show how COVID 19 should relieve Respondent of its obligations. Even under the “Force Majeure” of the DA, Respondent is only owed and extension of time to perform, the clause does not otherwise relieve Respondent of its duties under the DA. Moreover, the City provided a deferment plan that Respondent did not respond to or participate in, and otherwise ignored multiple opportunities to cure violations of DA.

Finding #1--Based on the evidence provided by the City above, and the failure of Respondent to provide sufficient evidence to the contrary, a preponderance of the evidence shows that Respondent has materially breached the terms of DA No. 18-011C by failing to make all required payments to the City as required.

Additionally, the City approved DA No. 18-011C subject to Conditions of Approval, which are incorporated under Article 18 of the DA. Condition of Approval 1(b) provides that the Respondent is required to pay all City-issued invoices within 30 days of receipt thereof. The City sent the Respondent

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regular monthly invoices for Community Benefit Program Fees, Cost Recovery Fees, Non-Operating Fees, and late penalties since 2021 (Attachment KK). The current outstanding fees owed by the Respondent have been owed to the City for longer than thirty (30) days. Despite demand and after proper notice of default and opportunity to cure, the Respondent has failed to cure its monetary obligations owed to the City.

Finding #2--Based on the evidence provided by the City above, and the failure of Respondent to provide sufficient evidence to the contrary, a preponderance of the evidence shows that Respondent has failed to comply with Conditions of Approval Nos. 1(a) and (b) of the CCP, which require the Respondent to pay all City-issued invoices within thirty (30) days of receipt thereof.

In accordance with the above evidence that supports Findings 1 and 2, the Respondent’s non-payment of Non-Operating Fees due under the Development Agreement and all fees due under the Development Agreement, respectively in violation of Condition Nos. 8 and 17 and constitute grounds for termination of the DA and revocation of the Respondent's interest in the CCP.

Finding #3--Based on the evidence provided by the City above, and the failure of Respondent to provide sufficient evidence to the contrary, a preponderance of the evidence shows that Respondent’s failure to pay Operating Fees and all fees due under the DA, respectively, constitutes a failure to comply with the CCP and a cross-breach of the DA.

2. Breach of Conditions of Approval No. 23 (Time Limits) under CCP18-0011 CCP Condition of Approval No. 23.A states the approval decision for this CCP becomes effective upon the expiration of the 15-day appeal period following the approval decision, or when any appeals of the decision are finally resolved. The CCP was approved by the City Council on November 6, 2018. No appeal to the grant of the CCP was ever filed and was therefore effective as of November 22, 2018.

CCP Condition No. 23.A.i sets a 90-day time limit from the effective date of the CCP for the Respondent to obtain a Zoning Clearance. CCP Condition No. 23A.ii sets a 90-day time limit from the effective date of the CCP for the Permittee to complete construction of Phase I, as indicated on the approval Final Floor Plan. CCP Condition No. 23A.iii sets a 180-day time limit from the effective date of the CCP for the Respondent to complete all Tenant Improvements and construction and to obtain a Certificate of Occupancy from the City Building Department. The City Manager may grant an extension of time if the Respondent can demonstrate it has made a diligent effort to implement the project.

As stated above, on or around August 14, 2018, Respondent submitted TI plans to the City’s third-party plan checker, however, the plans were disapproved, and Respondent did not address corrections and the application for Plan Check #PC18-0011 expired on March 2, 2020. On March 18, 2019, Respondent submitted a second building permit application for TI improvements (Plan Check #440) and received approval from the City’s third-party plan checker on December 12, 2019, however, the Respondent failed to obtain the building permit, and as such the approval for Plan Check #440 expired on June 12, 2020. The City has no record of the Respondent applying for Zoning Clearance.

Respondent submitted plans (Plan Check No. #PC18-0011) that were ultimately disapproved.

Respondent received approval for Plan Check #440 on December 12, 2019, after the prescribed time periods to implement the Project. However, Respondent failed to obtain a building permit. Plan Check #440 expired on June 12, 2020. The Respondent did not complete the actions described in CCP Condition No. 23.A within the prescribed time periods. Without an extension, the deadlines to complete all phases of the Project expired in 2019. The City has no record of any request by the Respondent to the City Manager for an extension of time.

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Finding #4--Based on the evidence provided by the City above, and the failure of Respondent to provide sufficient evidence to the contrary, a preponderance of the evidence shows that Respondent remains in breach of its conditions of approval by failing to implement the Project within the time limits set forth in the Conditions for Approval No. 23.A, despite the Respondent’s submittal for building plan check.

3. Breach of Conditions of Approval No. 21 (Construction Activities) under CCP 18- 0011
CCP No. 18-0011 Condition of Approval No. 21 states that prior to any construction, the Respondent shall obtain a Zoning Clearance for construction from the Planning Division and a Building Permit from the Building and Safety Division.

The City has no record of the Respondent applying for a Zoning Clearance or issuance of a Building Permit to complete or perform any construction at the Site. Yet, on August 17, 2022, the City entered the Site and observed the installation of insulated panel walls, a cannabis extraction room; a fire suppression system; HVAC duct; upgraded electrical panels; and plumbing throughout the facility. In accordance with the CCP, no such construction activities may take place without obtaining the proper clearances and approvals from the City.

Finding #5--Based on the evidence provided by the City above, and the failure of Respondent to provide sufficient evidence to the contrary, a preponderance of the evidence shows that Respondent is in violation of Condition of Approval No. 21 under CCP No. 18-0011.

4. Breach of Modification Procedures
CCP No. 18-0011 Condition of Approval No. 20 states prior to undertaking any operational or construction-related activity which is not expressly described in the CCP conditions, the Respondent shall first contact the City Manager, or his designee, to determine if the proposed activity requires a modification of the CCP. The City Manager may, at his sole discretion, require the Respondent to file a written and/or mapped description of the proposed activity in order to determine if a permit modification is required. Article 7(c) of DA No. 18-0011 also provides that the Respondent was limited to a 1,084 sf space to conduct any cannabis manufacturing activities. Any proposed deviation from the permitted square footage must be approved by the City Manager.

As stated previously, City staff conducted an inspection of the Site On August 17, 2022, and observed several violations of Building, Mechanical, Electrical, and Plumbing codes. Staff observed several improvements that were made to the Site that did not conform to the originally approved Site Plan and Floor Plan, inclusive of a cannabis extraction room, which was not an approved for commercial cannabis activity. The City has no record of a written or mapped description of the proposed design changes made to the facility as Condition of Approval No. 20 requires. The City Manager had not approved any changes to the facility that did not conform to the original Site Plan and Floor Plan approved by the City in the Respondent’s CCP and DA.

Finding #6--Based on the evidence provided by the City above, and the failure of Respondent to provide sufficient evidence to the contrary, a preponderance of the evidence shows that Respondent breached its conditions of approval for CCP No. 18-0011 by failing to receive City Manager approval for the design changes made to the facility set forth in Condition of Approval No. 20 prior to constructing the changes.

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Pursuant to the foregoing evidence stated to support Finding 6, the Respondent not only modified the Project by engaging in unpermitted construction, but the scope of the unpermitted construction supported cannabis extraction activities, which is outside of the scope of the City’s approvals. The City has no record of any attempt to modify the scope of activities or the initially approved Floor Plan and Site Plan, and therefore constitutes grounds for termination of DA No. 18-0011.

Finding #7--Based on the evidence provided by the City above, and the failure of Respondent to provide sufficient evidence to the contrary, a preponderance of the evidence shows that Respondent breached the DA by implementing project changes that were outside of the scope of approved commercial cannabis activities without seeking prior approval from the City Manager pursuant to the DA Article 7 (c).

5. Failure to Obtain State-Issued Cannabis Licenses for Cultivation and Manufacturing
Recital I of the DA states the Owner has applied for one (1) license: manufacturing. Article 21 of the DA states that the facility shall not operate unless the Respondent is the holder of a State-issued Cannabis license for the type of commercial cannabis facility or business operation that is the subject of the DA.

The DA also requires the Respondent to be a lawful entity capable of operating in accordance with a state-issued cannabis license.

City Staff searched the term “Aqua Tergere” on the Cal Cannabis website which showed no record of an active cannabis license issued to the Respondent (Attachment RR).

Finding #8--Based on the evidence provided by the City above, and the failure of Respondent to provide sufficient evidence to the contrary, a preponderance of the evidence shows that Respondent breached the DA because the Owner has not obtained a State-issued Cannabis license for the facility.

6. Failure to Maintain a Legal Business Entity
The DA sets forth standard operating procedures as mentioned in DA No. 18-011C Article 4(a) (Facility Operations). Article 4(a) requires the Owner to “lawfully operate in accordance with all state and local laws.” In addition, CCP No. 18-0011 Condition of Approval No. 3 requires the Respondent to implement the Project in “compliance with all applicable requirements and enactment of federal, state, and local authorities.” Condition of Approval No. 22 also states that the Respondent is “responsible for being aware of and complying with the CCP conditions and all applicable federal, state, and local laws and regulations.

The Respondent’s legal status as a California limited liability company, Aqua Tergere, LLC, with the Secretary of State and Franchise Tax Board is suspended. A Certificate of Status from the Secretary of State (dated July 25, 2024) for the Respondent’s LLC status states “The above-referenced entity’s powers, rights and privileges are suspended in California (Attachment QQ) (See, Rev. & Tax Code § 23301).

A suspended business entity is essentially prohibiting the entity from legally operating within the State of California unless and until the suspended status is withdrawn. The consequence of the suspended status includes, without limitation, a prohibition for selling, transferring, or exchanging real property in the state of California; as well as a risk of any contracts entered into by the entity during the time of suspension as voidable at the option of the other party (See, e.g., Casiopea Bovet, LLC v. Chiang

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(2017) 12 Cal.App.5th 656, 662; City of San Diego v. San Diegans for Open government (2016) 3 Cal.App.5th 658, 577).

Finding #9--Based on the evidence provided by the City above, and the failure of Respondent to provide sufficient evidence to the contrary, a preponderance of the evidence shows that Respondent breached the DA and is in violation of CCP No. 18-011 because Respondent has failed to maintain a legal business entity as required.

7. Failure to Maintain Legal or Equitable Interest Over Real Property Development Agreement Law permits a city, county, or city and county to enter into a development agreement with a person having a legal or equitable interest in real property (Gov. Code § 65865(a)).

On May 18, 2023, the Respondent informed the City that it no longer had an equitable or legal interest in the Site because it no longer held a lease with the Site’s landlord. Further, the leasehold interest in the Site ended on May 31, 2023, and the lease did not offer any options for a lease extension. The Respondent no longer has any legal interest in the Site and therefore, has no right to maintain a development agreement with the City for rights at the Site. The maintenance of the DA with a party that does not have a legal and equitable interest in the Site would violate state law, specifically the Development Agreement Law.

Finding #10--Based on the evidence provided by the City above, and the failure of Respondent to provide sufficient evidence to the contrary, a preponderance of the evidence shows that Respondent no longer has a leasehold interest in the Site and therefore has no legal standing to be a party to a development agreement with the City.

DECISION AND ORDER
Based on the evidence and analysis discussed above, this Hearing Officer finds that a preponderance of the evidence shows that Respondent, despite considerable notice and opportunities to cure any issues, has breached the terms and conditions of DA 18-011C and recommends that the Planning Commission and/or City Council repeal Ordinance No. 687 and terminate DA18-011C and that the City Manager revoke CCP No. 18-0011, respectively.

This decision does not affect the payments and penalties outlined in the City’s Staff Report, which are still accumulating, owed and due to City from Respondent.

Submitted September 24, 2024 by Steve Napolitano, Esq., Administrative Hearing Officer.

Steve Napolitano, Esq.

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Ordinance No. 759

EXHIBIT “C”

PLANNING COMMISSION RESOLUTION

Attachment BPage 1179 of 2485

j
ORDINANCE NO. 697

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
CUDAHY, CALIFORNIA, APPROVING: (1) A DEVELOPMENT

AGREEMENT BY AND BETWEEN THE CITY OF CUDAHY AND

AQUA TERGERE, LLC, A CALIFORNIA LIMITED LIABILITY
COMPANY AND (2) THE ISSUANCE OF A COMMERCIAL CANNABIS
PERMIT
WHEREAS, to strengthen the public planning process, encourage private participation in comprehensive planning and reduce the economic risk of development, the Legislature of the State of California adopted Section 65864 et seq. of the California Government Code (the Development Agreement Statute"); and
WHEREAS, the Development Agreement Statute authorizes the City to enter into a property development agreement with any person having legal or equitable interest in real property for the development of such property in order to establish certain development rights; and WHEREAS, in accordance with California law, the City of Cudahy has adopted Municipal Code Chapter 20.28 (Development Agreements) establishing the procedures and requirements for the consideration of development agreement with the City; and WHEREAS, on September 11, 201 7, the City Council for the City of Cudahy passed Ordinance No. 673 establishing regulations and a discretionary review process for the allowance of medicinal-only commercial cannabis activities ( cultivation, distribution, manufacturing, deliveries, micro-business and laboratory testing) in a specified Overlay Zone through a development agreement; and
WHEREAS, all procedures of the California Environmental Quality Act ("CEQA"), California Public Resources Code §21000 et seq., and the CEQA guidelines, title 14 of the California Code of Regulations, chapter 3, §15000 et seq. have been satisfied. The City has found that the proposed Project is Categorically Exempt from California Environmental Quality Act (CEQA) requirements under provisions of CEQA Guidelines Section 15301 - Existing Facilities.

This exemption applies to projects characterized as alterations to existing facilities meeting the conditions described in Section 15301;
WHEREAS, on September 17, 2018, the City of Cudahy Planning Commission ("Planning Commission") conducted a properly noticed public hearing to consider approval of a Commercial Cannabis Permit [CCP] and a Development Agreement (as defined below), at which testimony and evidence, both written and oral, were presented to and considered by the Planning Commission; and
WHEREAS, by majority vote the members present, the Planning Commissidn, decided to deny a CCP for the Site and made a recommendation of disapproval of the Development Agreement; and
WHEREAS, the Applicant(s) timely submitted a written notice of appeal to the City Clerk, accompanied by the required filing fees, and including stated grounds for the appeal; and Attachment CPage 1214 of 2485
Ordinance No. 697

WHEREAS, the entire matter 1s properly before the City Council for independent consideration and de novo review; and
WHEREAS, the City Council may reverse, modify or affirm the Planning Commission decision, in whole or in part; and
WHEREAS, the City Council shall approve a development agreement by ordinance; and WHEREAS, subsequent to receipt of the appeal of the Planning Commission's decision, the City Council conducted a properly noticed public hearing to consider the approval of a CCP and Development Agreement, at which testimony and evidence, both written and oral, were presented to and considered by the City Council; and
WHEREAS, the City Council finds the Project is: consistent with the objectives, policies, general land uses and programs specified in the general plan, as amended; compatible with the uses authorized in the Overlay Zone; in conformity with good land use practices; will not be detrimental to the health, safety and general welfare of the City; and is in the best interest of the City of Cudahy and its residents.

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

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

SECTION 2. APPROVAL OF DEVELOPMENT AGREEMENT
That the City Council hereby approves the Development Agreement By and Between the City of Cudahy and Aqua Tergere, LLC a California limited liability company ("Development Agreement") [DA#18-011C], a copy of which is attached hereto and incorporated herein by this reference as Exhibit "A," subject to the terms and conditions stated therein.

SECTION 3. APPROVAL OF COMlV[ERCIAL CANNABIS PERMIT
That the City Council hereby approves Commercial Cannabis Permit No. CCP 18-0011, subject to the terms and conditions stated therein, to allow a Commercial Cannabis Facility for the Site located at 8210 Atlantic Avenue, City of Cudahy, CA as set forth in the Development Agreement. A copy of the permit is attached hereto and incorporated herein by this reference as Exhibit "B." The Commercial Cannabis Permit shall be issued upon execution by the City of the Development Agreement.

SECTON 4. SEVERABILITY
2 l
l

I
)
Ordinance No. 697

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

SECTION 5. EFFECTIVE DA TE OF ORDINANCE
That this Ordinance shall take effect thirty (30) days after its second reading by the City Council.

SECTION 6. EXECUTION OF DEVELOPMENT AGREEMENT
The Development Agreement shall not be executed by the City until on or after the effective date of the Ordinance.

SECTION 7. RECORD A TION OF DEVELOPMENT AGREEEMENT
That the City Clerk is hereby directed to record the fully executed Development Agreement with the County Recorder for the County of Los Angeles no later than ten (10) days after its execution.

SECTION 8. CERTIFICATION
That the City Clerk shall certify to the passage of this Ordinance and shall cause the same to be published, in full or in summary format, according to law.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Cudahy at the regular meeting of this 20th day of November, 2018. ~ · . ,,, - A ,_/~ •. ~-fi/
ATTEST:
~
~ ~,....___
Richard Igles· s
Deputy City erk
3 '·
Chris Garcia
Mayor

Ordinm:-.ce No. 697

ST ATE OF CALIFORNIA

COUNTY OF LOS ANGELES

CITY OF CUDAHY
)
)
)

CERTIFICATION
SS:

I, Richard Iglesias, Deputy City Clerk of the City of Cudahy, hereby certify that the foregoing Ordinance No. 697 was introduced for a first reading on the 6th day of November, 2018 and approved for a second reading and adopted by said Council at its regular meeting held on the 20th day of November, 2018 by the following vote, to-wit:

AYES: Gonzalez, Markovich, Hernandez, and Garcia
NOES: None
ABSTAIN: None
ABSENT: Sanchez
4 '7lichard Iglesia
Deputy City Cl
-
l

Ordinance },Io. 697

EXHIBIT "A"

DEVELOPMENT AGREEMENT

BY AND BETWEEN

THE CITY OF CUDAHY

AND AQUA TERGERE, LLC

A CALIFORNIA LIMITED LIABILITY COMP ANY

SEE ATTACHMENT
5

Mayor
Daisy Lomeli
Vice Mayor
Jose R. Gonzalez
Councilmember
Elizabeth Alcantar
Councilmember
Martin U. Fuentes
Councllmember
Cynthia Gonzalez
City Manager
Alfonso Noyola, ICMA-CM
March 20, 2023
SENT VIA EMAIL: [email protected]
1 5T CLASS MAIL
Attn: Vince Sanchez
Dear Mr. Sanchez
CUDAHY
OP!;:N MINDS, OP!;:N DOORS
Incorporated November 10, 1960
RE: FINAL DEMAND
8210 Atlantic Avenue, City of Cudahy, CA -Aqua Tergere, LLC Development Agreement No. DA18-011C
Commercial Cannabis Permit No. 18-0011
�LLU .:)dllld 1-\lld .:)lft::t::L
Cudahy,CA,90201
Phone: (323) 773-5143
Fax: (323) 771-2072
www.cityofcudahy.com
On August 17, 2022, City of Cudahy staff, conducted a site inspection of property located at 8210 Atlantic Avenue. During this inspection, several violations of Building, Mechanical, Electrical, and Plumbing Codes were observed, including occupation of the building without a certificate of occupancy, rendering the structure unsafe for occupancy. As a result, the Building and Safety Division declared the structure, its use, and occupancy unsafe and dangerous, and the subject site was "red tagged".

The following is a list of violations observed by city staff on August 17, 2022:

Building Code:
-All construction completed inside the building was done without engineered drawings and has not completed any plan check procedures and thus no building permits for any work were obtained.
-All structurally insulated panel rooms were constructed without proper plan check approval and with no engineered drawings and without building permits. -Cannabis extraction room located inside building without permits, and without proper LA County Fire Department approval/plan check.

Attachment D Page 1219 of 2485

ADMINISTRATIVE RECORD FOR

REVIEW HEARING
Aqua Tergere , LLC
August 27, 2024

Administrative Review Record - Aqua Tergere, LLC
Attachment EPage 1222 of 2485
“Serving The People” "Sirviendo A La Comunidad"

REVIEW HEARING STAFF REPORT
Date: August 27, 2024
1 To: Hearing Officer, Steve Napolitano
From: Juan Arauz, AICP, Community Development Director
Prepared By: Cecilia Madrigal-Gonzalez, Senior Planner
Concurrence: Joshua Calhoun, Finance Director, Raul Diaz, Building Official and Paloma McEvoy, Assistant City Attorney.

Subject: Compliance Review Hearing relating to Commercial Cannabis Permit (“CCP”) No. 18-0011 and Development Agreement (“DA”) No. 18-011C between Aqua Tergere, LLC (“Operator”) and the City of Cudahy (“City”).

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

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

2. Make a determination that the Operator is not in compliance with the terms and conditions of DA No. 18-011C with the City and find that the Operator is in default of contractual obligations set forth in the DA; and

3. Make a determination that the Operator is not in compliance with the conditions of approval of CCP No. 18-0011; and

4. Make a recommendation to the Planning Commission and City Council to adopt an ordinance repealing Ordinance No. 697 to terminate DA No. 18-011C and to the City Manager to revoke the Operator’s interest under CCP No. 18-0011.

BACKGROUND/TIMELINE
On September 11, 2017, the City adopted Ordinance No. 673 (Attachment A) establishing the City’s commercial cannabis production activity regulations codified in Chapter 5.20 of the Cudahy Municipal Code (“CMC”). CMC Section 5.20.040 authorizes medicinal 1 On August 15, 2024, the City finalized the Administrative Record including attachments A through SS. On August 27, 2024, the City amended pg. 8 of the Review Hearing Staff Report and added Attachment TT.

The amendments in the report are shown underlined and italicized.

Administrative Review Record - Aqua Tergere, LLC

“Serving The People” "Sirviendo A La Comunidad"

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

On September 17, 2018, after conducting a duly noticed hearing, in conjunction with CMC Section 20.28.030, the Planning Commission reviewed, considered, and recommended disapproval of an ordinance to enter into and approve a Development Agreement (“DA”) and denial of a CCP No. 18-0011 to permit cannabis manufacturing activities with accessory general business offices at 8210 Atlantic Avenue, Cudahy, CA (“Site”). The Agenda, Staff Report, and Draft Minutes are provided in Attachments B, C, and D.

On or around August 14, 2018, Operator submitted a tenant improvement (“TI”) plan check application for cannabis activities at the Site to the City’s third-party plan checker (Plan Check #PC18-0011) (Attachment EE). Plan Check #PC18-0011 was disapproved and waiting for Operator to resubmit as of September 4, 2019 (Attachment FF). Due to inactivity, Plan Check # PC 18-0011 automatically expired 180-days afterwards, on March 2, 2020. The City has no record of a request for a time extension on the plan check application from the Operator.

On October 1, 2018, the City Clerk’s Office received the Operator’s appeal of the Planning Commission’s disapproval of the CCP and recommendation not to approve a development agreement between the City and the Operator (Attachment E), pursuant to CMC Section 20.84.160 (Appeals). Operator claimed the Planning Commission “failed to articulate findings and provide supporting evidence identifying specific in the record that are reasons for the denial.”
On November 6, 2018, the City Council, after conducting a duly noticed hearing, in conjunction with CMC Section 20.28.060, and after independent consideration and de novo review on appeal, the City Council approved the execution of DA No. 18-0011C (Attachment F) by first reading of Ordinance No. 697 and issuance of CCP No. 18-0011 through the approval of City Council Resolution No. 18-49 (Attachment X). The Agenda, Minutes, and Staff Report are provided in Attachments G, H, and I respectively.

On November 20, 2018, the City Council conducted a second reading and adopted Ordinance No. 697 (Attachment J), authorizing the execution of DA No. 18-011C (Attachment K) inclusive of Exhibits A-F (Attachment L) between Operator and the City authorizing commercial cannabis manufacturing activities and office at the Site as illustrated in Figures 1 and 2 below. The Site Plan and Floor Plan are incorporated by reference in Article 3(a) of DA No. 18-011C. Recital I of DA No. 18-011C permits the Operator to operate in an approximately 2,665 square foot(“sf”) building, inclusive of 1,084 sf of cannabis manufacturing space (Attachment K). The Agenda, Minutes, and Staff Report for the November 20, 2018 City Council Meeting are provided in Attachments M, N, O, respectively.

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FIGURE 1 – AERIAL OF SITE
FIGURE 2 – FLOOR PLAN
On March 18, 2019, the City received a plan check application (Plan Check #440) submittal for interior tenant improvements (“TI”) for a cannabis facility at the Site (Attachment R).

Site
8210 Atlantic Ave.

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On October 2, 2019, the City provided Operator with a Notice of Delinquency (Attachment P) prior to placing the Operator in default status due to payment non-compliance with the Development Agreement and Commercial Cannabis Permit, inclusive of the non-payment of Community Benefit Fees, Cost Recovery Fees, and Non-Operating Fees2in the amount of sixty-four thousand two hundred sixty-seven dollars and ninety-three cents ($64,267.93). The Operator was given no later than October 17, 2019, to pay the past due amounts, however, the default was not timely cured.

On December 12, 2019, the City’s third-party plan checker approved Plan Check #440 for interior tenant improvements as noted in the record log (Attachment DD). No building permit was issued pursuant to Plan Check #440, therefore the plan check approval expired one-hundred and eighty (180) days after the approval date on June 12, 2020. The City has no record of a time extension request by the Operator.

On May 4, 2021, the City provided Operator with a Notice of Default (Attachment Q) due to the Operator’s non-compliance with payment of fees and associated penalties in the amount of two hundred eight thousand three hundred nine dollars and nine cents ($208,309.09). The Operator was given no later than thirty (30) days to cure the default, however, the default was not timely cured.

On August 17, 2022, City staff and the Los Angeles County Sheriff’s Department conducted an inspection of the Site and observed multiple Building, Mechanical, Electrical, and Plumbing Code violations. As such, the City issued a stop work notice due to unpermitted construction (Attachment S). During the inspection, the following building, mechanical, fire, electrical, and plumbing code violations were observed:
1) installation of insulated panel walls;
2) installation of cannabis extraction room;
3) installation of fire suppression system;
4) installation of HVAC ducts;
5) installation of an upgraded electrical panel; and
6) installation of plumbing throughout the facility.

All violations observed were constructed without obtaining proper Zoning Clearance, engineered drawings, plan check approval, building permit issuance, and inspections.

The Operator failed to take necessary actions to correct the stop work notice. To correct the actions, the Operator was required to obtain requisite approvals and permits from the City Planning Division and Building & Safety Division. As of the writing of this report, the Operator has not obtained requisite approvals and permits from the City Planning Division, Building & Safety Division.

On September 13, 2022, the City proceeded to declare the structure unsafe and dangerous for occupancy, commonly referred to as “red-tag” and issued a letter (Attachment T) to Operator to clear all violations within 10 days. The notice was also placed at the Site as shown in Attachment T. However, as detailed below, Vladimir 2 As used herein, the terms Operating Fees and Non-Operating Fees are used interchangeably.

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Calderon (“Property Owner”) pulled a demolition permit to remove the unpermitted improvements and the Site’s red-tag status was removed on May 9, 2023.

On September 20, 2022, Operator appeared at City Hall to discuss the Site’s red-tag status. City staff spoke with Operator and answered questions on the unpermitted improvements and financial obligations. Operator also verbally requested a time extension, City staff advised Operator to submit formal extension in writing. No such written request was ever received.

On September 21, 2022, the City received an email (Attachment U) from Vince Sanchez memorializing the conversation with City staff on September 20, 2022, and acknowledging the red tag status, and informing the City of hardships with their previous contractors, requesting to amend the DA to allow a different license type and requesting an extension to complete the list of corrections detailed in Attachment T.

On September 22, 2022, the City received an email from Cheryl Montanez (Attachment GG) from MO+RE Design Solutions in which Ms. Montanez stated that the unpermitted improvements did not match the plans she had reviewed and requested additional information and guidance to understand the City’s building permit process. City staff advised Ms. Montenez regarding the City’s records and building permit process. No further correspondence or inquiries were received from Ms. Montanez.

On December 6, 2022, the City Manager presented the City Council with a proposed Cannabis Deferment and Payment Program to assist cannabis operators with the accumulated Community Benefits, Cost Recovery and Non-Operating Fees by deferring and providing additional time for payment without penalty. The City Council directed the City Manager to offer the Payment Agreement to Operators who have defaulted on their payment obligations, which was approved by the City Council. Under the program:
(a) Unpaid Non-Operating Fees would be deferred (without penalty) until six (6) months after the Operator was issued a Certificate of Occupancy; and then repay accumulated Non-Operating Fees within twelve (12) months; and (b) Operators would continue to be responsible for the timely payment of Community Benefit Fees and Cost Recovery Fees as they accumulated; and (c) Previously incurred Community Benefit Fees and Cost Recovery Fees would be subject to a payment plan and require timely payments.

On December 7, 2022, the City presented the terms of the Cannabis Deferment and Payment Program to the Operator (Attachment V). All cannabis operators interested in participating in this program were given no later than January 31, 2023, to execute a payment agreement with the City. The City Manager did not receive a request from the Operator to participate in the Cannabis Deferment and Payment Plan.

On March 20, 2023, the City sent a Final Demand Letter (Attachment W) demanding Operator to respond to the following demands: 1) An updated project description; 2)

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Approvable plans for the Operator’s cannabis operation; and 3) Forwarding payment for the total past due amounts. The Operator did not respond in a timely manner and failed to make any attempt to cure the defaults within the thirty (30) day period.

On April 24, 2023, the City received an unsolicited email from "[email protected]," claiming to provide notice of Aqua Tergere, LLC's informing the City that it had (1) “officially shut down;” (2) the company had gone bankrupt; and (3) the company was no longer able to continue operations (Attachment Y). The email also informed the City that the building lease had expired and the Operator returned the keys to the landlord. Lastly, the email informed the City that the Operator was withdrawing its “submission application” (Attachment Y).

On May 2, 2023, the City responded to the Operator's email communication, which informed the Owner that the notice was insufficient to terminate the DA and provided the correct process in order to terminate the DA which requires the written notice to “be signed, by an authorized party, and given personally or by registered or certified mail (return receipt requested), or by Federal Express, UPS or similar couriers” (Attachment Y). The Operator was given no later than (10) days from the date of the letter to submit the requisite documentation (Attachment Y).

On May 9, 2023, the City issued the Property Owner a demolition permit (Permit #820) to demolish all unpermitted work (Attachment CC). The Site’s red tag-status was subsequently removed.

On May 18, 2023, the City received formal written notification dated May 8, 2023, from Mr. Charles Arden, representing the Operator, informing the City of their decision to terminate the lease agreement for the Site and requesting that the letter serve as official confirmation of the voluntary termination of their cannabis operation in the City (Attachment Z).

According to the lease terms, the Operator’s leasehold interest in the Site expired on May 31, 2023 (Attachment L). The lease did not provide any options to extend the lease term.

On August 22, 2023, the City provided Operator a letter (Attachment HH) acknowledging the May 8, 2023, Notice of Termination was received by the City pursuant to DA Article 14(d) and effective upon the date of the written notice. The letter confirmed that the Operator had “ceased all cannabis operations within the City. Proper notice of termination of the Development Agreement has been given by Aqua Tergere, LLC and such termination is effective upon the date written notice was given to the City. Therefore, the City is prepared to process documents terminating Development Agreement No. DA18- 0011 [as] of May 18, 2023, except as set forth in the Agreement” (Attachment HH, emphasis original). The City advised that it had prepared documents to formally terminate the DA pursuant to Article 11(c), which states “Termination of this Agreement shall not, however, eliminate the rights of the City to seek any applicable and available remedies or damages based upon acts or omissions occurring before termination.” As of May 18,

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2023, the outstanding fees due to the City, inclusive of Operating Fees, Community Benefit Fees, and Cost Recovery Fees, is $334,921.56. The City prepared an “Agreement Re: Aqua Tergere, LLC’s Notice of Termination of Development Agreement No. DA18- 011C and Voluntary Surrender of Commercial Cannabis Permit No. 18-0011” (Attachment HH – pp. 3-6) and a “Memorandum of Termination” (Attachment HH – pp. 7- 8) for Operator’s review and signature. The Operator responded to the City by asking for an extension of time, until September 15, 2023, to respond to the City’s Notice of Termination (Attachment LL).

On October 26, 2023, more than a month after the Operator’s requested extension (Attachment O) to respond, an attorney for the Operator contacted the City with an offer to settle the outstanding amount owed to the City, under the following terms:
(1) termination of DA No. 18-011C;
(2) waiver of all fees, penalties, and/or other sums, including but not limited to any and all guarantees by the Company and/or individual members, allegedly owned by the Operator and/or its members;
(3) waiver of all fees, penalties, sums, and/or claims, including but not limited to, any personal guarantees, allegedly due and/or owed by the Operator and/or individual member(s); and
(4) mutual waiver of all fees, penalties, sums, and/or claims arising out of or from under DA No. 18-011C.

The Operator’s legal counsel did not dispute the amount of the fees accumulated or the fact that fees were due, but objected to payment on the basis that the Operator was “unable to secure timely reviews and/or approval of plans or specifications” during “most of 2020 and 2021” (Attachment OO). Operator’s counsel further argued that the “City is precluded from collecting any fees or penalties due to State and Federal emergency orders in place preventing or precluding timely construction and/or development, that the City’s failure to treat all applicants/licensees equitably during this time of extreme emergency was a denial of due process, and the alleged Community Benefit Payments (CBD) presuppose a ‘going concern’ – a fully operational business” (Attachment OO).

Operator’s legal counsel did not offer any explanation as to the Operator’s noncompliance in 2019, 2022, and 2023. Nor did Operator’s counsel demonstrate how the Operator had been treated inequitably by the City or how the Operator had been denied due process.

Due to the characterization of the statements made by Operator’s counsel and an offer to “settle claims” the City Council conferred regarding the foregoing settlement terms in a Closed Session hearing pursuant to Government Code Section 54956.6(d)(2), which permits a closed session discussion due to anticipated litigation. The City Council did not accept the Operator’s proposed settlement terms and directed the City Attorney’s Office

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to communicate this decision to the Operator’s counsel. The City’s letter noted the number of unfounded and unsupported assertions made by the Operator’s counsel including the fact that governmental orders during the COVID-19 pandemic did not preclude commercial construction or cannabis activities such as cultivation, manufacture, and sales; the lack of substantiation regarding unfair or inequitable treatment; a Constitutional prohibition of a gift of public funds; and a lack of due process (Attachment PP).

On July 11, 2024, the City issued to the Operator a Notice of Review Hearing with the hearing date, time, and place via certified mail (Attachment II).

On July 24, 2024, the City received email correspondence from F. Araiza-Kasame, Esq. requesting the August 12, 2024, hearing date stating Operator is unable to attend the hearing (Attachment SS).

On July 30, 2024, the City granted a one-time request to Operator to reschedule the Review Hearing to August 27, 2024, at 9:00 AM (Attachment SS). The revised Notice of Review Hearing with the hearing date, time and place was sent via certified mail and email.

As of July 25, 2024, the website for the California Department of Cannabis Control shows no record of a cannabis license issued to Aqua Tergere, LLC (Attachment RR).

As of July 25, 2024, the Operator’s status with the Secretary of State and the Franchise Tax Board is suspended (Attachment QQ), meaning the Operator’s powers, rights and privileges are suspended in the state of California.

On August 26, 2024, the day prior to the Review Hearing, the City received a letter (Attachment TT) from Marshall L. Hogan, an attorney for the Operator requesting the City to continue the Review Hearing by one month on the basis that the Operator's new legal representation could not attend the Review Hearing and the continuance would allow additional time “to understand the allegations so that it can be in a position to respond to those allegations on behalf of [Operator].” Attachment TT was admitted into the City’s Administrative Record during the Review Hearing held on August 27, 2024. The City notes that at the time it received the verbal request, Operator had not submitted evidence of compliance ten (10) days in advance of the Review Hearing nor paid the estimated cost for the Review Hearing, as required by the DA and CCP (see also, Attachment II). Additionally, the City already stipulated a one-time continuance pursuant to a request from the Operator’s previous attorney to continue the Review Hearing by two (2) weeks (Attachment SS – pp. 929-934) and therefore the City advised the Operator’s counsel to send a representative to the Review Hearing to ask the Hearing Officer for a continuance, and if there was no one available to send to the hearing, that Operator’s counsel request that the Hearing Officer grant the request for a continuance through a letter.

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

Pursuant to the CMC Section 5.20.080(6), “[a]ny material violations of this chapter or any other relevant city law by a cannabis permittee, or cannabis permittee’s agent, is ground for suspending or revoking the relevant cannabis permit.” To suspend or revoke a cannabis permit the City Manager must determine “that the cannabis permittee has failed to comply with any conditions of approval, or any agreement or covenant.” CMC §

5.20.080(6)(a).)
City staff recommends that the Hearing Officer review the material violations and evidence and make the following findings in support of finding the Operator to be in default of DA No. 18-011C and in violation of the conditions of approval for CCP No. 18-0011.

Violation #1. Breach of Payment Obligations. Pursuant to DA Article 5(b) (Community Benefit Fees), Article 7(c) (Operating Fees) and Article 8 (Cost Recovery Fees), the Operator must pay the City an annual Community Benefit Fee in the amount of $66,667.00 ($13,333.40 down payment and monthly payments in the amount of $5,333.36), a Cost Recovery Fee, and an Operating [or Non-Operating] Fee since 2018.

The Operator is also obliged to make payments for Cost Recovery Fees within 30 days of receipt of a City invoice pursuant to Condition of Approval Nos. 1(a) and 1(b) of the CCP; pay all Operating Fees under the DA pursuant to Condition of Approval No. 8; and all fees due under the DA pursuant to Condition of Approval No. 17. The City offered the Operator a Deferred Cannabis Payment Plan to grant the Operator relief in the form of deferred payment obligations of the Operating Fees and a payment schedule for pastdue Community Benefit Fees and Cost Recovery Fees; and an obligation to remain current on recurring fees under the DA, however the City did not receive any response from the Operator. As stated above, on May 18, 2023, the City was provided notice by the Operator stating they had ceased cannabis operations, and as such the termination began effective upon the date of written notice received.

Pursuant to DA Article 11(c) the termination of the DA does not eliminate the City from seeking any applicable and available remedies or damages based upon acts or omissions occurring before termination. Operator is not relieved of obligations already incurred. As such, Operator has not made the required timely payments and as of May 18, 2023, the outstanding fees and costs to the City are $334,921.56 as shown in Table 1 below.

Failure to pay fees constitutes a breach of the DA and CCP conditions of approval and may result in suspension or immediate termination of the DA, and CCP revocation.

Accordingly, the Operator is in breach of its payment obligation under DA No. 18-011C.

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TABLE 1 – SUMMARY OF PAST AND CURRENT AMOUNTS DUE AS OF MAY 18, 2023
Fee Type Payment Amount Due
Community Benefit Program $252,746.41
Cost Recovery Fees $49,385.42
Non-Operating Fees $28,938.42
Penalties (Late Payment) $3,851.31
TOTAL: $ 334,921.56
Finding 1. The Operator breached the terms of Development Agreement No. 18-011C by failing to make all required payments to the City that are required pursuant to the terms of Development Agreement No. 18-011C.

Evidence: On February 12, 2018, Operator executed DA No. 18-011C, which is a legally binding contract between the Operator and the City and requires payment of fees pursuant to DA Article 5(b) (Community Benefit Fees), Article 7(c) (Operating Fees), and Article 8 (Cost Recovery Fees). Additionally, in accordance with Article 7(c)(1), late payment of Non-Operating Fees is subject to penalties that begin to accrue once a payment is more than thirty (30) days late. In December 2022, the City offered a Deferment and Payment Plan option to the Operator but no interest or response was received. The City provided proper notice of default to the Operator with the opportunity to cure, but the Operator has failed to fulfill its monetary obligations owed to the City (Attachment KK). This failure is a material breach of the DA and grounds for termination of the DA.

The Operator requested the City to waive all fees and penalties currently outstanding but has failed to demonstrate how the waiver of all fees due under a contractual agreement would not constitute a gift of public funds or is otherwise permitted under the DA.

Any allegations that Operator’s failure to pay fees was due to the “COVID-19 pandemic emergency shut down” is unsupported by the evidence. As an initial matter, the Operator was first issued a Notice of Delinquency on October 2, 2019, more than five months prior to the Governor’s issuance of Executive Order N-33-20 (Attachment MM). The Operator has not offered any explanation as to the delinquent fees that had been accumulated well before the onset of the COVID-19 pandemic. Despite this notice, Operator did not cure the default nor take diligent efforts to cure the default.

To the extent any relief is provided under DA No. 18-011C, such relief under the DA’s Force Majeure clause only provides Operator with an extension of time to perform, but does not excuse performance altogether. Specifically, the DA provides that:

If delays are caused by unforeseen events beyond the control of Owner, such delays will entitle Owner to an extension of

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time as provided in this section. Such unforeseen events (“Force Majeure”) shall mean war, insurrection, acts of God, local, state or national emergencies, strikes and other labor difficulties beyond the party’s control, or any default by City hereunder, which Force Majeure event substantially interferes with the development, construction or operations of the Project.
(Attachment K, emphasis added). Operator’s assertion that it was unable to “secure timely reviews and/or approvals of plans or specifications” is not supported. During the height of the COVID-19 pandemic, the City continued to conduct business and process requests, including applications for building permits, which could be dropped off in front of City Hall.

However, the City has no record of any application submittals between 2020 and 2022.

Additionally, both commercial cannabis activities, inclusive of cannabis manufacturing, and commercial construction were permitted by the authority granted to the State Public Health Officer pursuant to Executive Order N-33-20 (Attachment NN). The State permitted cannabis activities and commercial construction to continue through the height of the pandemic and operators were able to continue processing applications, such as building permits, during this time (Attachment NN), therefore any allegation of Force Majeure is unfounded.

However, even assuming arguendo, there was an event of Force Majeure, Article 23(i) does not excuse performance, but only provides the Owner with an extension of time.

There is no excusal of performance under Force Majeure nor does Article 23(i) grant the City the ability to waive fees.

Following the height of the COVID-19 pandemic, the City offered all cannabis operators that were delinquent on the fee obligations a Cannabis Deferment and Payment Plan, pursuant to the terms described above. As noted, the Operator did not execute an agreement under the terms of this plan or otherwise respond to the City’s offer to provide relief.

Finding 2: The Operator has failed to comply with Conditions of Approval Nos. 1(a) and (b) of the CCP, which require the Operator to pay all City-issued invoices within thirty (30) days of receipt thereof.

Evidence: The City approved Development Agreement No. 18-011C subject to Conditions of Approval, which are incorporated under Article 18 of Development Agreement No. 18-011C. Condition of Approval 1(b) provides that the Operator is required to pay all City-issued invoices within 30 days of receipt thereof. The City has sent the Operator regular monthly invoices for Community Benefit Program Fees, Cost Recovery Fees, Non-Operating Fees, and late penalties since 2021 (Attachment KK).

The current outstanding fees owed by the Operator have been owed to the City for longer than thirty (30) days. Despite demand and after proper notice of default and opportunity to cure, the Operator has failed to cure its monetary obligations owed to the City.

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Finding 3: Pursuant to Condition of Approval Nos. 8 and 17, the Operator’s failure to pay Operating Fees and all fees due under the DA, respectively, constitutes a failure to comply with the CCP and a cross-breach of Development Agreement No. 18-011C.

Evidence. Pursuant to the foregoing evidence stated to support Findings 1 and 2, the Operator’s non-payment of Non-Operating Fees due under the Development Agreement and all fees due under the Development Agreement, respectively in violation of Condition Nos. 8 and 17 and constitute grounds for termination of the DA and revocation of the Operator's interest in the CCP.

Violation #2. Breach of Condition of Approval No. 23 (Time Limits) under CCP No. 18-0011. CCP Condition of Approval No. 23.A states the approval decision for this CCP becomes effective upon the expiration of the 15-day appeal period following the approval decision, or when any appeals of the decision are finally resolved. The CCP was approved by the City Council on November 6, 2018. No appeal to the grant of the CCP was ever filed and was therefore effective as of November 22, 2018. CCP Condition No.

23.A.i sets a 90-day time limit from the effective date of the CCP for the Operator to obtain a Zoning Clearance. CCP Condition No. 23A.ii sets a 90-day time limit from the effective date of the CCP for the Permittee to complete construction of Phase I, as indicated on the approval Final Floor Plan. CCP Condition No. 23A.iii sets a 180-day time limit from the effective date of the CCP for the Operator to complete all Tenant Improvements and construction and to obtain a Certificate of Occupancy from the City Building Department.

The City Manager may grant an extension of time if the Operator can demonstrate it has made a diligent effort to implement the project.

Finding 4: As stated above, on or around August 14, 2018, Operator submitted TI plans to the City’s third-party plan checker, however, the plans were disapproved, and Operator did not address corrections and the application for Plan Check #PC18-0011 expired on March 2, 2020. On March 18, 2019, Operator submitted a second building permit application for TI improvements (Plan Check #440) and received approval from the City’s third-party plan checker on December 12, 2019, however, the Operator failed to obtain the building permit, and as such the approval for Plan Check #440 expired on June 12, 2020. The Operator failed to obtain a Zoning Clearance from the City’s Planning Division prior to the submittal of either plan check submittal. Therefore, the Operator breached its Conditions of Approval under CCP No. 18-0011 by failing to implement any phase of the Project within the time frames set forth in Conditions of Approval No. 23.A.

In order for the Operator to complete tenant improvements or otherwise obtain a certificate of occupancy the Operator was required to remove all unpermitted improvements as outlined in (Attachment S and T); submit and obtain approval for a Zoning Clearance (Phase I); submit complete plans and receive approval to complete tenant improvements; and construct the improvements and obtain a certificate of occupancy (Phases II and III). The Operator has failed to implement the required phases within CCP No. 18-0011’s prescriptive timelines, therefore, the Operator breached its

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conditions of approval for CCP18-0011 by failing to implement the Project as set forth in Condition of Approval No. 23.A.

Evidence: The City has no record of the Operator applying for Zoning Clearance.

Operator submitted plans (Plan Check No. #PC18-0011) that were ultimately disapproved. Operator received approval for Plan Check #440 on December 12, 2019, after the prescribed time periods to implement the Project. However, Operator failed to obtain a building permit. Plan Check #440 expired on June 12, 2020. The Operator did not complete the actions described in CCP Condition No. 23.A within the prescribed time periods. Without an extension, the deadlines to complete all phases of the Project expired in 2019. The City has no record of any request by the Operator to the City Manager for an extension of time. Despite the Operator submitting for building plan check the Operator remains in breach of its conditions of approval by failing to implement the Project within the time limits set forth in the Conditions for Approval No. 23.A.

Violation #3. Breach of Conditions of Approval No. 21 (Construction Activities) under CCP 18-0011. CCP No. 18-0011 Condition of Approval No. 21 states that prior to any construction, the Operator shall obtain a Zoning Clearance for construction from the Planning Division and a Building Permit from the Building and Safety Division.

Finding 5: The Operator failed to obtain a Zoning Clearance from the City Planning Division, prior to the installation of insulated panel rooms, cannabis extraction room, fire suppression system, HVAC, upgrades to electrical panels and plumbing work. Therefore, the Operator breached its conditions of approval for CCP No. 18-0011.

Evidence: The City has no record of the Operator applying for a Zoning Clearance or issuance of a Building Permit to complete or perform any construction at the Site. Yet, on August 17, 2022, the City entered the Site and observed the installation of insulated panel walls, a cannabis extraction room; a fire suppression system; HVAC duct; upgraded electrical panels; and plumbing throughout the facility. In accordance with the CCP, no such construction activities may take place without obtaining the proper clearances and approvals from the City, therefore the Operator is in violation of Condition of Approval No.

21. Violation #4. Breach of Modification Procedures. CCP No. 18-0011 Condition of Approval No. 20 states prior to undertaking any operational or construction-related activity which is not expressly described in the CCP conditions, the Operator shall first contact the City Manager, or his designee, to determine if the proposed activity requires a modification of the CCP. The City Manager may, at his sole discretion, require the Operator to file a written and/or mapped description of the proposed activity in order to determine if a permit modification is required. Article 7(c) of DA No. 18-0011 also provides that the Operator was limited to a 1,084 sf space to conduct any cannabis manufacturing activities. Any proposed deviation from the permitted square footage must be approved by the City Manager.

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Finding 6: On August 17, 2022, City staff conducted a site inspection of the Site and observed several violations of Building, Mechanical, Electrical, and Plumbing codes.

Further, the structure has built-out cannabis extraction rooms which is not a commercial cannabis activity the Operator was approved to conduct. The Operator did not submit building permit plans for interior tenant improvements at the Site to the City’s third-party plan check consultants without first obtaining a Zoning Clearance from the Planning Division and payment of the required fees. The City has no record of a written or mapped description of the proposed design changes made to the facility plans nor any record of any such request for a modification made to the City Manager. The City Manager has not approved any changes to the facility that do not conform to the original Site Plan and Floor Plan approved by the City in the Operator’s CCP and DA. Therefore, the Operator breached its conditions of approval for CCP No. 18-0011 by failing to receive City Manager approval for the design changes made to the facility set forth in Condition of Approval No. 20 prior to constructing the changes.

Evidence: As stated above, upon a Site visit that took place on August 17, 2022, staff observed several improvements that were made to the Site that did not conform to the originally approved Site Plan and Floor Plan, inclusive of a cannabis extraction room, which was not an approved for commercial cannabis activity. The City has no record of a written or mapped description of the proposed design changes made to the facility as Condition of Approval No. 20 requires. The City Manager has not approved any changes to the facility that do not conform to the original Site Plan and Floor Plan approved by the City in the Operator’s CCP and DA. The Operator remains in breach of its conditions of approval by failing to file the required documentation for the City Manager to approve such changes as expressly described in the Conditions of Approval No. 20.

Finding 7: The Operator breached the DA by implementing project changes that were outside of the scope of approved commercial cannabis activities without seeking prior approval from the City Manager pursuant to the DA Article 7 (c).

Evidence: Pursuant to the foregoing evidence stated to support Finding 6, the Operator not only modified the Project by engaging in unpermitted construction, but the scope of the unpermitted construction supported cannabis extraction activities, which is outside of the scope of the City’s approvals. The City has no record of any attempt to modify the scope of activities or the initially approved Floor Plan and Site Plan, and therefore constitutes grounds for termination of DA No. 18-0011.

Violation #5: Failure to Obtain State-Issued Cannabis Licenses for Cultivation and Manufacturing. Recital I of the DA states the Owner has applied for one (1) license:
manufacturing. Article 21 of the DA states that the facility shall not operate unless the Operator is the holder of a State-issued Cannabis license for the type of commercial cannabis facility or business operation that is the subject of the DA. The DA also requires the Operator to be a lawful entity capable of operating in accordance with a state-issued cannabis license.

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Finding 8: The Operator has breached the DA because the Owner has not obtained a State-issued Cannabis license for the facility. A search of the term “Aqua Tergere” on the Cal Cannabis website shows no record of an active cannabis license issued to the Operator.

Evidence: See Attachment RR.

Violation #6 Failure to Maintain a Legal Business Entity. The DA sets forth standard operating procedures as mentioned in DA No. 18-011C Article 4(a) (Facility Operations).

Article 4(a) requires the Owner to “lawfully operate in accordance with all state and local laws.” In addition, CCP No. 18-0011 Condition of Approval No. 3 requires the Operator to implement the Project in “compliance with all applicable requirements and enactment of federal, state, and local authorities.” Condition of Approval No. 22 also states that the Operator is “responsible for being aware of and complying with the CCP conditions and all applicable federal, state, and local laws and regulations.

Finding 9: The Operator’s legal status as a California limited liability company, Aqua Tergere, LLC, with the Secretary of State and Franchise Tax Board is suspended. A Certificate of Status from the Secretary of State (dated July 25, 2024) for the Operator’s LLC status states “The above-referenced entity’s powers, rights and privileges are suspended in California (Attachment QQ) (See, Rev. & Tax Code § 23301).

A suspended business entity is essentially prohibiting the entity from legally operating within the State of California unless and until the suspended status is withdrawn. The consequence of the suspended status includes, without limitation, a prohibition for selling, transferring, or exchanging real property in the state of California; as well as a risk of any contracts entered into by the entity during the time of suspension as voidable at the option of the other party (See, e.g., Casiopea Bovet, LLC v. Chiang (2017) 12 Cal.App.5th 656, 662; City of San Diego v. San Diegans for Open government (2016) 3 Cal.App.5th 658, 577). Additionally, the suspended business entity may lose its ability to prosecute or defend legal actions (i.e., file or defend lawsuits) (Id.) However, Operator continues to contest the City’s actions and past-due fees even though it is not a legal entity.

Violation #7 Failure to Maintain Legal or Equitable Interest Over Real Property.

Development Agreement Law permits a city, county, or city and county to enter into a development agreement with a person having a legal or equitable interest in real property (Gov. Code § 65865(a)).

Finding 10: The Operator no longer has a leasehold interest in the Site and therefore has no legal standing to be a party to a development agreement with the City.

Evidence: On May 18, 2023, the Operator informed the City that it no longer had an equitable or legal interest in the Site because it no longer held a lease with the Site’s landlord. Further, the leasehold interest in the Site ended on May 31, 2023, and the lease did not offer any options for a lease extension. The Operator no longer has any legal

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interest in the Site and therefore, has no right to maintain a development agreement with the City for rights at the Site. The maintenance of the DA with a party that does not have a legal and equitable interest in the Site would violate state law, specifically the Development Agreement Law.

NOTICE
Pursuant to Section 22 of the Development Agreement the City sent a Review Hearing notice via certified mail, and a courtesy email notice, to all concerned parties in Attachment II. The notice advised that the Review Hearing would be held on the hearing date at such location designated and proof of certified mail is provided in Attachment II.

ENVIRONMENTAL ANALYSIS
The action(s) have been assessed in accordance with the California Environmental Quality Act (“CEQA”) and the environmental regulations of the City. The action(s) are expected to be categorically exempt from the requirements to prepare additional environmental documentation per CEQA Section 15321. Class 21 (Enforcement Actions by Regulatory Agencies) applies to “Actions by regulatory agencies to enforce or revoke a lease, permit, license, certificate, or other entitlement for use issues, adopted, or prescribed by the regulatory agency or enforcement or a law, general rule, standard, or objective, administered or adopted by the regulatory agency.” If the City Council terminates DA No 18-011C and the City Manager revokes CCP No 18-0011, they would be enforcement actions. Therefore, the action(s) are categorically exempt from the provisions of CEQA.

CONCLUSION
It is the City’s purpose and intent to regulate cannabis activities within the City in a responsible manner to protect the health, safety, and welfare of the residents of Cudahy and to enforce rules and regulations consistent with California Cannabis laws. (CMC §

5.20.010.) Cannabis Operators with development agreements are obligated to comply with all provisions of the CMC, obligations under DA18-011C and Conditions of Approval under CCP 18-0011. As discussed above and based on the evidence attached to this report, the Operator has failed to comply with their obligations despite being provided with ample notice and opportunities to achieve compliance. Therefore, staff recommends the Hearing Officer after independent review, consideration, analysis of staff’s report and the information presented, oral and written testimony by all parties and their witnesses, and the record as a whole – make a determination the Operator, Aqua Tergere, LLC, has breached the terms and conditions in DA No. 18-011C and is in violation of the conditions of approval for CCP No 18-0011; and recommend that the Planning Commission and City Council repeal Ordinance No. 687 and terminate DA18-011C and that the City Manager revoke CCP No. 18-0011, respectively.

ATTACHMENT(S)
A. City of Cudahy Ordinance No. 673
B. September 17, 2018, Planning Commission Agenda
C. September 17, 2018, Planning Commission Staff Report

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D. September 17, 2018, Planning Commission Draft Minutes E. Notice of Appeal Received October 1, 2018, dated September 28, 2018 F. Commercial Cannabis Permit 18-0011
G. November 6, 2018, City Council Agenda
H. November 6, 2018, City Council Minutes
I. November 6, 2018, City Council Staff Report
J. City of Cudahy Ordinance No. 697
K. Development Agreement 18-011C
L. Exhibits A-F
M. November 20, 2018, City Council Agenda
N. November 20, 2018, City Council Minutes
O. November 20, 2018, City Council Staff Report
P. Notice of Delinquency dated October 2, 2019
Q. Notice of Default dated May 4, 2021
R. Plan Check #440 Application and Corrections
S. August 17, 2022, Inspection Report
T. September 13, 2022, Red-Tag Letter.

U. Correspondence from V. Sanchez dated September 21, 2022 V. Cannabis Deferment and Payment Program dated December 7, 2023 W. Final Demand Letter, dated March 20, 2024
X. City Council Resolution No. 18-49
Y. Email and Letter to Operator, dated May 2, 2023
Z. Letter from Operator, received May 18, 2023
AA. Notice of Termination Letter and Attachments, dated August 22, 2023 BB. Email Correspondence, dated August 21, 2023
CC. Demolition Permit, finaled November 12, 2023
DD. Third-Party Plan Checker Record Log
EE. Plan Check #PC18-0001 Complete Plans
FF. 3
rd Party Plan Checker Record Log of Plan Check #PC18-0001 GG.Email from C. Montanez, dated September 22, 2022
HH. Letter to Operator, Agreement Re: Aqua Tergere, LLC’s Notice of Termination of Development Agreement No. DA 18-0011C and Voluntary Surrender of Commercial Cannabis Permit No. 18-0011” and Memorandum of Termination, dated August 22, 2024.

II. Notice of Review Hearing and Certified Mailings
JJ. Final Invoice, dated May 18, 2023
KK. Invoices from 2021-2023
LL. Email from Operator, dated August 31, 2023
MM. Executive Order N-33-20
NN. State of California, COVID-19 Essential Workforce Guidance OO. Letter from Operator’s Counsel, dated October 26, 2023 PP. Letter to Operator’s Counsel, dated November 27, 2023 QQ. Secretary of State Certificate of Status, dated July 25, 2024 RR. Department of Cannabis Control License Search Results for “Aqua Tergere,” dated July 25, 2024.

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SS. City and Operator Correspondence regarding Review Hearing Rescheduling from July 24, 2024, through July 30, 2024.

TT. Letter from Operator’s Legal Counsel, dated August 27, 2024

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ATTACHMENT A.

Ordinance No. 673

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ATTACHMENT B.

Planning Commission Agenda
September 17, 2018

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AGENDA

A REGULAR MEETING

OF THE CUDAHY PLANNING COMMISSION
Monday, September 17, 2018 – 6:00 P.M.

1. CALL TO ORDER

2. ROLL CALL
Commissioner Becerra
Commissioner Corvera-Hernnadez
Commissioner Ortega
Vice Chairperson Alcantar
Chairman Fuentes

3. PLEDGE OF ALLEGIANCE

4. PRESENTATIONS - NONE

5. PUBLIC COMMENTS
(Chairperson: This is the time set aside for citizens to address the Planning Commission on matters relating to Commission business. When addressing the Commission please speak into the microphone and voluntarily state your name and address. Each person will be allowed to speak only once and will be limited to five (5) minutes. The proceedings of this meeting are recorded on audio CD.
“Members of the Public are Advised that all PAGERS, CELLULAR TELEPHONES and any OTHER COMMUNICATION DEVICES are to be turned off upon entering the City Council Chambers.” If you need to have a discussion with someone in the audience, kindly step out into the lobby.

Written materials distributed to the Planning Commission within 72 hours of the Special Planning Commission meeting are available for public inspection immediately upon distribution in the City Clerk’s Office at City Hall located at 5220 Santa Ana Street, Cudahy, CA 90201.

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.

CUDAHY CITY

COUNCIL CHAMBERS
5240 Santa Ana Street
Cudahy, CA 90201
Phone: (323) 773-5143
Fax: (323) 771-2072
Martin Fuentes, Chairman
Elizabeth Alcantar, Vice Chairperson
Richard Becerra, Commissioner
Richard Corvera-Hernandez, Commissioner
Kimberly Ortega, Commissioner

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City of Cudahy
Planning Commission Meeting Agenda
Monday, September 17, 2018 at 6:00 PM

6. WAIVE FULL READINGS
A. Approval to waive the full reading of all resolutions on the agenda and declare that said titles which appear on the public agenda shall be determined to have been read by title only.

Recommendation: To waive the full text reading of all resolutions on the agenda.

7. PUBLIC HEARING
A. Commercial Cannabis Permit (CCP) No. CCP18-0002 and Development Agreement (DA) No.

DA18-002C (Location: 4311 Santa Ana Street, Applicant: 420 Realty) Recommendation: Staff recommends that the Planning Commission of the City of Cudahy:

1. Certify that they have reviewed and considered this staff report and all its exhibits, and considered all comments received during the public hearing comment process;

2. Recommend that the City Council consider and approve Commercial Cannabis Permit No. CCP18-0002 to allow commercial cannabis activities including, manufacturing, cultivation, distribution, and delivery within a currently vacant approximately 13,000 square foot building located at 4311 Santa Ana Street, pursuant to the findings presented in this staff report; and

3. Recommend that the City Council consider and approve Development Agreement (DA) No. DA18-002C at its publicly noticed October 16, 2018 City Council meeting.

B. Commercial Cannabis Permit (CCP) No. CCP18-0011 and Development Agreement (DA) No.

DA18-011C (Location: 8210 Atlantic Avenue, Applicant: Aqua Tergere, LLC) Recommendation: Staff recommends that the Planning Commission of the City of Cudahy:

1. Certify that they have reviewed and considered this staff report and all its exhibits, and considered all comments received during the public hearing comment process;

2. Recommend that the City Council consider and approve Commercial Cannabis Permit No. CCP18-0011 to commercial cannabis activities including manufacturing within a currently vacant approximately 2,665 square foot building located at 8210 Atlantic Avenue, pursuant to the findings presented in this staff report; and

3. Recommend that the City Council consider and approve Development Agreement (DA) No. DA18-011C at its publicly noticed October 16, 2018 City Council meeting.

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City of Cudahy
Planning Commission Meeting Agenda
Monday, September 17, 2018 at 6:00 PM

C. APN 6225-011-006 (Walnut Street) – Consideration of a Conditional Use Permit No. 38-364 and Development Review Permit No. 41-509 to allow the construction of a 4-unit multi-family residential development located at APN 6225-011-006 (Walnut Street).

Recommendation: The Planning Commission of the City of Cudahy is recommended to continue this item to the October 15, 2018 regular Planning Commission Meeting.

8. BUSINESS SESSION
A. Minutes: A request to approve the minutes of the Planning Commission meeting held on Monday, June 19, 2017
Monday, April 30, 2018
Monday, June 25, 2018
(Minutes attached)
Recommendation: Staff recommends the Planning Commission to approve the minutes of the Planning Commission meeting held on June 19, 2017, April 30, 2018 and June 25, 2018

9. COMMISSION BUSINESS

10. ADJOURNMENT
I Salvador Lopez Jr., hereby certify under penalty of perjury under the laws of the State of California that the foregoing agenda was posted at Cudahy City Hall, Bedwell Hall, Clara Park, Lugo Park, and the City’s Website not less than 72 hours prior to the meeting. A copy of said Agenda is on file in the Community Development Department.

Dated this 13th Day of September 2018
______________________________________
Salvador Lopez Jr.

Interim Community Development Manager

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ATTACHMENT C.

Planning Commission Staff Report
September 17, 2018

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Agenda Report
September 17, 2018 Page 1 of 22

AGENDA REPORT
DATE: September 17, 2018
TO: Honorable Chair and Members of the Planning Commission FROM: Salvador Lopez Jr., Interim Community Development Manager BY: Ebony J. McGee Andersen, Economic Development Principal Planner

SUBJECT: Commercial Cannabis Permit (CCP) No. CCP18-0011 and Development Agreement (DA) No. DA18-011C (Location: 8210 Atlantic Avenue, Applicant: Aqua Tergere, LLC)

RECOMMENDATION
Staff recommends that the Planning Commission:

1. Certify that they have reviewed and considered this staff report and all its exhibits, and considered all comments received during the public hearing comment process;

2. Recommend that the City Council consider and approve Commercial Cannabis Permit No. CCP18-0011 to allow commercial cannabis activities including manufacturing within a currently vacant approximately 2,665 square foot building located at 8210 Atlantic Avenue, pursuant to the findings presented in this staff report; and

3. Recommend that the City Council consider and approve Development Agreement (DA) No. DA18-011C at its publicly noticed October 16, 2018 City Council meeting.

BACKGROUND

1. In 1996, the California Legislature approved Proposition 215, also known as the Compassionate Use Act (the “CUA”), which was codified under Health and Safety Code Section 11262.5 et sec. and was intended to enable persons in need of medical marijuana for specified medical purposes, such as cancer, anorexia, AIDS, chronic pain, glaucoma and arthritis, to obtain and use marijuana under limited circumstances and where recommended by a physician. The CUA provides that “nothing in this section shall be construed or supersede legislation

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prohibiting persons from engaging in conduct that endangers others, or to condone the diversion of marijuana for non-medical purposes.”

2. In 2004, the California Legislature enacted the Medical Marijuana Program Act (Health & Saf. Code, § 11362.7 et seq.) (the “MMP”), which clarified the scope of the CUA, created a state-approved voluntary medical marijuana identification card program, and authorized cities to adopt and enforce rules and regulations consistent with the MMP. Assembly Bill 2650 (2010) and Assembly Bill 1300 (2011) amended the MMP to expressly recognize the authority of counties and cities to “[a]dopt local ordinances that regulate the location, operation, or establishment of a medical marijuana cooperative or collective” and to civilly and criminally enforce such ordinances.

The Federal Controlled Substances Act (21 U.S. C., § 801 et seq.) makes it unlawful under federal law for any person to cultivate, manufacture, distribute or dispense, or possess with intent to manufacture, distribute, or dispense marijuana. Despite such federal prohibition, on August 29, 2013, the United States Department of Justice issued a memorandum (the “Cole Memo”) stating that, notwithstanding the federal classification of marijuana as a schedule 1 controlled substance, jurisdictions that have legalized marijuana in some form are less likely to be subject to federal enforcement under the Controlled Substances Act if they have implemented strong and effective regulatory and enforcement systems to follow eight guiding principles: (1) preventing the distribution of marijuana to minors; (2) preventing revenue from the sale of marijuana from going to criminal enterprises, gangs, and cartels; (3) preventing the diversion of marijuana from states where it is legal under state law in some form to other states; (4) preventing state authorized marijuana activity from being used as a cover or pretext for the trafficking of other illegal drugs or other illegal activity; (5) preventing violence and the use of firearms in the cultivation and distribution of marijuana; (6) preventing drugged driving and the exacerbation of other adverse public health consequences associated with marijuana use; (7) preventing the growing of marijuana on public lands and the attendant public safety and environmental dangers posed by marijuana production on public lands; and (8) preventing marijuana possession or use on federal property.

3. On February 1, 2012, California Governor Brown dissolved the redevelopment areas in cities statewide thereby negating $3 million annually in funds to the Cudahy Community Development Commission (CDC).

4. On July 12, 2014, the City Council held a Special Meeting to prepare a draft strategic plan (Attachment A) which among other things identified the need to establish an economic development plan, develop consistent revenue generators, implement a business retention program, and above all use these various tools to adopt a balanced budget.

5. On August 11, 2014, the City Council entered into an Employment Agreement with Jose E. Pulido for the City Manager position.

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6. On August 10, 2015, the City Council approved the addition of an Economic Development Ordinance No. 652 with the goal of providing the City with an economic development venue to implement its General and Strategic Plan.

7. In September 2015, the California State Legislature enacted, and Governor Brown signed into law three bills – Assembly Bill 243, Assembly Bill 266, and Senate Bill 643 – which together comprise the Medical Marijuana Regulation and Safety Act (the “MMRSA”). The MMRSA created a comprehensive dual state licensing system for the cultivation, manufacture, retail, sale, transport, distribution, delivery, and testing of medical cannabis.

8. On October 26, 2015, the City Council approved Ordinance No. 653 to amend the municipal code to provide investment and development opportunities in our depilated and underutilized industrial zones through a Development Agreement (DA).

9. On August 22, 2016, the City Council adopted Interim Urgency Ordinance No. 656U to establish a temporary moratorium on medical “commercial cannabis activities,” as defined under the MMRSA, for a period of 45 days and extended such moratorium for an additional period of 22 months and 15 days under Interim Urgency Ordinance No. 661, on September 26, 2016.

The MMRSA was renamed the Medical Cannabis Regulation and Safety Act (the “MCRSA”) under Senate Bill 837 in June 2016, which also included substantive changes to the applicable state laws, which affect the various state agencies involved in regulating cannabis businesses as well as potential licensees.

10. On November 8, 2016, the Control, Regulate, and Tax Adult Use of Marijuana Act (“AUMA”) was approved California voters as Proposition 64 and became effective on November 9, 2016, pursuant to the California Constitution (Cal.

Const., art. II, § 10(a).). Proposition 64 legalized the nonmedical use of cannabis by persons 21 years of age and over, and the personal cultivation of up to six (6) cannabis plants.

11. On November 14, 2016, the City Council adopted Urgency Ordinance No. 663 to prohibit outdoor personal marijuana cultivation and establish regulations and a permitting process for indoor personal marijuana cultivation.

AUMA also created a state regulatory and licensing system governing the commercial cultivation, testing, and distribution of nonmedical cannabis, and the manufacturing of nonmedical cannabis products.

12. On January 9, 2017, Interim Urgency Ordinance No. 666 was adopted by the City Council to establish a temporary moratorium on nonmedical “commercial cannabis activities” for a period of 45 days and extended such moratorium for an additional period of 22 months and 15 days under Interim Urgency Ordinance No. 667, on February 27, 2017.

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13. On June 27, 2017, Governor Brown signed the Legislature-approved Senate Bill

94. SB 94 combined elements of the MCRSA and AUMA to establish a streamlined singular regulatory and licensing structure for both medical and nonmedical cannabis activities given that there were discrepancies between the MCRSA and AUMA. The new consolidated provisions under SB 94 are now known as the Medicinal and Adult-Use Cannabis Regulation and Safety Act (“MAUCRSA”) to be governed by the California Bureau of Cannabis Control.

MAUCRSA refers to medical cannabis as “medicinal cannabis” and nonmedical/recreational cannabis as “adult-use cannabis.”

14. On June 27, 2017, as part of an Economic Development Ad Hoc Committee presentation on City Council opportunities, commercial cannabis regulations and strategies were discussed by the City Council. Based upon such discussion and direction from the City Council, the City sought to establish an overlay zone in the City in which certain medicinal-only commercial cannabis activities could be conducted in accordance with MAUCRSA and the City’s police power under Section 7 of Article XI of the California Constitution.

15. On July 31, 2017, the Cudahy Planning Commission adopted Planning Commission Resolution No. 17-03, which: (1) found that the proposed Ordinance No. 673 is consistent with the General Plan and compliant with CEQA; and (2) recommended City Council approval of the proposed Ordinance No. 673.

16. At its meeting of August 24, 2017, the City Council approved Ordinance No. 673 for First Reading.

17. On September 11, 2017, the City Council held a Second Reading of Ordinance No. 673.

18. On September 25, 2017, the City entered into Professional Services Agreements (PSA) with Vincent Sarmiento and Glenn Ward Calsada for cannabis legal counsel; MGO for technical consultation, economic projection and application screening and review; and emja Planning + Development, for policy development, permit processing, project management and on-going compliance enforcement services in connection with the City’s Cannabis Program.

19. On September 21, 2017, an amendment to the City’s fee schedule, was approved and adopted by City Council.

20. On December 4, 2017, the Commercial Cannabis Permit applications were initially due to the City, after a 45-day application period. However, due to technical difficulties with the online application program, the City Manager extended the application submission deadline to December 15, 2017.

21. On December 15, 2017, the City received 41 applications for commercial cannabis license types were received by the City, including those for cultivation, manufacturing, retail delivery, distribution and testing.

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22. By February 1, 2018, the City received reimbursement agreements from applicants to ensure all staff and consultant time, including permit processing, monitoring and compliance costs, will be reimbursed to the City by the applicant.

23. On March 20, 2018, the City Council approved a General Plan Update (General Plan 2040) which established new Zoning Districts. ; however, the Zoning Code Amendment which will formally establish the districts and uses therein, has not been considered by the Council to date. Upon approval and adoption of the new districts, the existing Commercial Manufacturing (CM) zone will become a Light Industrial (LI) Subdistrict, which is consistent with the General Plan Land Use Designation.

24. By February 1, 2018, the City had received reimbursement agreements from the applicants to ensure all staff and consultant time, including permit processing, monitoring and compliance costs, would be reimbursed to the City by the applicant.

25. On March 20, 2018, the City Council approved a General Plan Update (General Plan 2040) which establishes new Zoning Districts.

26. On July 17, 2018, The City Council adopted the Zoning Code Amendment which formally established the new zoning districts and uses therein. As a result, the existing Commercial Manufacturing (CM) zone became a Light Industrial (LI) Subdistrict, which is consistent with the General Plan Land Use Designation.

27. To date, the City has processed 14 Development Agreements and 7 Commercial Cannabis Permits applications submitted by applicants, in accordance with City Ordinance No. 673.

28. On September 7, 2018 the Planning Department and City Clerk’s Office provided public notice regarding to the Planning Commission hearing on this matter in accordance with the requirements of Government Code §65091 and the City Municipal Code. The Planning Division mailed notices to all owners of property within 300 feet of the project site and placed a legal ad in the Press Telegram.

ANALYSIS
Approximately four years ago, the City Council identified a growing number of vacant and dilapidated warehouses within the City. These vacancies created a blighted condition in the City’s industrial areas. With the decline in local and national manufacturing industry, businesses once operating successfully, closed and left the City, causing employment opportunities and sales tax dollars to drastically decrease.

Because of these circumstances, the City Council worked to create new economic development tools for the City, including the establishment of a new economic

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September 17, 2018 Page 6 of 22
development chapter to the City’s municipal code (Ordinance 6530). The new chapter outlined economic development tool such Development Agreements to take advantage of emerging business trends. Last month, the City Council adopted the City’s 2040 General Plan update to address outdated land-use policies. These additions will help further the City’s economic development goals and policies.

To implement the City Council’s and community’s goals to address underperforming, blighted areas in the City, the Council formed an Economic Development Ad hoc Committee. The primary task of the ad hoc committee was to research economic opportunities for the underperforming areas and buildings within the City. The ad hoc committed looked to introduce new industries that would generate revenue for the City and create sustainable employment opportunities for Cudahy residents. The committee also wanted to ensure underutilized or abandoned industrial areas were developed into a vibrant hub of entrepreneurial activity. Consistent with these objectives, approximately two years ago, the City Council identified Commercial Cannabis as an emerging industry suitable for the industrial areas and vacant warehouse spaces. After a thorough analysis of the industry and business opportunities the industry could bring, the City Council directed the City Manager to assemble and retain a consulting team to assist with the implementation of a regulatory framework for allowing commercial cannabis activities in the City. Under the direction of the City Manager, the consulting team developed an application process, permit eligibility criteria, development standards, development agreement terms and conditions. In consultation with the applicants and City Manager, the consulting team negotiated the operational fees and community benefit program fees stipulated within the development agreements. In addition to the potential new City revenues resulting from operational fees (based on gross receipts), a Community Benefit Program fund is expected to help the City fund projects such as new parks, capital improvement projects, youth recreation programs, and holiday and special community events.

Pursuant to the City Council’s direction to the City Manager, and the State of California’s December 31, 2017 deadline to issue Cannabis-related business licenses, City staff and the consultant team prepared a procurement process to consider applicants prior to the State of California deadline. A total of 21 applicants submitted application materials for 41 licenses by the deadline. During the past four months, City staff and the consultant team have diligently worked to ensure the project is complete, as stipulated by the City’s Development Agreement Ordinance No. 653 and Commercial Cannabis Ordinance No. 673. Staff has determined the project is completed and meets the requirements necessary for the Planning Commission to consider and make a recommendation to the City Council. The project will be heard and considered by the City Council on October 16, 2018 and will be publicly noticed on October 5, 2018 in the Press Telegram.

PROJECT SITE LOCATION AND ASSESSOR’S PARCEL NUMBER
The project site is located at 8210 Atlantic Avenue. The Tax Assessor’s Parcel Number (APN) is 6224-023-020.

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Figure 1.1 - Proposed Project Site

PROJECT DESCRIPTION

The proposed project includes a Commercial Cannabis Permit, which is a type of conditional use permit, to allow for a Commercial Cannabis Facility and a Development Agreement (DA) for commercial cannabis activities including manufacturing within an existing, currently vacant, approximately 2,665 square foot industrial building. The site is currently developed with one commercial building and two modular buildings. The existing modular buildings will be removed prior to the commencement of any on-site activities or improvements. The proposed project will be built in one phase and includes the following commercial cannabis activities:
 Manufacturing: The manufacturing area consists of a 240 square foot prefabricated class1/division1 FlexMod extraction room that will house state of the art closed-loop extraction systems; a 356 square foot room where minor post extraction manipulations will occur (ie. Decarboxylation degassing, and drying), a 488 square foot post-process room that meets class1/division2 safety standards that will house processing and evaporation equipment; a 266 square foot storage and transfer room that will hold both intake and outtake manifests as well as storage of fresh plant material; an 80 square foot product storage vault where bulk and packaged product will be stored; and a 360 square foot packaging and labeling room containing boxes, glass jars, and child-proof packaging of extraction products. The facility also includes 106 square feet of restrooms where employee’s can change into proper work attire and utilize the facilities. The proposed facility includes a total of 1,084 (240 C1D1, 356 pre process, 488 post process) square feet of production space and 2,665 square feet of total premises space.

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 General Business Offices: The facility will be open from 8 a.m. to 8 p.m., Monday through Friday, with up to eight (8) employees at the highest running shit.

Parking/Loading/Access: The proposed project provides 15 parking spaces, including 1 accessible van spaces. Loading will take place on-site. Vehicular access to the site will be through an existing driveway on Atlantic Avenue. Within the site, access to the structures will be through the secured front office entrance. The project complies with the CAL Green Tier 1 by incorporating stormwater pollution prevention measures, installing energy- and water-efficient equipment, and planting native and droughttolerant landscaping at the front of the property.

Security: The project will secure the facility against unauthorized entry by installing security lights on the exterior of the building to illuminate the side yards and parking area, installing commercial-grade locks, installing an alarm and video surveillance system, establishing procedures for identifying authorized persons, establish inventory controls, and install a secure surveillance vault to maintain the integrity of records. In addition, the applicant will engage a licensed security company to provide an operational security plan in compliance with Ordinance 673.

Aqua Tergere, LLC will employ approximately 10 employees. As a term of the Development Agreement with the City, the facility must offer 50% of the employment opportunities to City residents. This will result in at least five (5) jobs in the City.

Currently, the site offers no employment opportunities to residents or otherwise, as the facility is vacant. The existing industrial building is located on a 35,140 square foot lot, which is unmaintained with no landscaping. With the façade and site improvements proposed by the applicant, the site would include a new security fence with lighting, 24- hour security cameras, new landscaping, various tenant improvements, and parking lot upgrades. All development will be consistent with the City’s proposed design and landscaping guidelines.

Aqua Tergere, LLC has agreed to provide living wages, full-time employment, and medical benefits to their employees, as a term of their development agreement with the City. In addition to employment and other economic opportunities, Aqua Tergere, LLC would further the City’s beautification efforts by providing on-site improvements, extensive landscaping, and enhance the security measures to the facility. Aqua Tergere, LLC has demonstrated to the City that they are an exemplary corporate partner and would be dedicated to meeting the goals of the City and community.

Commercial Cannabis Permit (CCP) and License Types
Pursuant to the Cudahy Municipal Code (CMC) Chapter 20.120.030 (Ordinance No. 673), all Commercial Cannabis activities, except retail dispensaries, shall be allowed within the Urban Agriculture Overlay Zone1 with a Development Agreement adopted in accordance with accordance with the Development Agreement Law (Government Code

1 Urban Agriculture Overlay was formally titled Commercial Cannabis Overlay.

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Section 65864 et. Seq.) and CMC Chapter 20.28 (Development Agreements). The City shall issue Commercial Cannabis Permits (CCP) as defined in Chapter 5.20.020(c).

Cannabis permits may authorize Commercial Cannabis Activity, including, but not limited to, Cannabis Cultivation, Manufacturing, Distribution, Retail Delivery, Microbusinesses and Testing. Commercial Cannabis activities may be conditionally permitted within the Urban Agriculture Overlay Zone. Commercial Cannabis Permits are a distinct and unique Conditional Use Permit which can only be granted within the Urban Agriculture Overlay Zone and in accordance with applicable state law.

Each Commercial Cannabis Operator is required, by Ordinance 673, to have both a Commercial Cannabis Permit and a Development Agreement that authorizes the specific Commercial Cannabis activities. The development agreement establishes annual operating and Community Benefit Program (CBP) fees that would be paid by the Operator to the City, upon execution of the agreement. The proposed development agreements with all commercial cannabis operators require Operators to pay a monthly operating fee of $0.42 per square foot of the premises, as identified in each respective development agreement, until the owner is operating and selling products under the City and State regulatory permits. Once operators are operating or generating income, the monthly operating fee would be the greater of $0.42 per square foot of production space or 1%-2% of gross receipts, based on the license type.

Table 2.1, below, summarizes the proposed operators and respective license types as well as the operating fees the City has assessed on each license type.

Table 2.1 Operator License Fees
Operator License Type Fee Assessment* Monthly
NonOperating
SF Fee
($0.42 x
premises sf)
CBP Fee
Aqua
Tergere,
LLC
(DA18-
011C)
Manufacturing 2% of gross receipts
when gross receipts
exceed $455.28, which
represents $0.42 per
square foot of the total
1,084 square feet of
production space.
$664.02 on
1,581 SF of
premises
space
$66,667.00
Total Fee
Assessment
$455.28 minimum $664.02 $66,667.00
*see Development Agreement for definition of production space and fee assessment details for each operation.

The proposed operation would generate a minimum of $455.28 ($5,463.36 annually) while operational and $664.02 monthly ($7,968.24 annually) revenue for the City in the

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event the facility does not become operational. The non-operational fee represents the cost to the operator to hold each license. However, once the facility is generating revenue, the City would receive 1%-2% of gross receipts, when gross receipts exceed the square foot rate for production space.

GENERAL PLAN AND ZONING
The proposed project is located within the Commercial Urban Agriculture Overlay Zone.

The Commercial Urban Agriculture Overlay Zone is the only area within this City where Commercial Cannabis uses are allowed under the City Cannabis Ordinance No. 673.

The zone allows for all commercial cannabis activities including, cultivation, manufacturing, distribution and retail delivery.

Figure 3.1 – Zoning and General Plan Land Use Designations Table 3.1 below indicates existing Cudahy 2040 General Plan and Zoning Land Use Designations for the proposed project site and surrounding area.

Table 3.1 – Existing General Plan and Zoning Information (Exhibit 1) Surrounding
Site
Locations
Existing Land Use
General Plan
Designation
Zoning
Designation
Proposed
Project Site
Vacant Industrial
Building Entertainment (ENT)
Commercial
Manufacturing –

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Urban Agriculture
Overlay Zone
North
Multi-Family
Residential
Entertainment (ENT)
and High Density
Residential (HDR)
High Density
Residential – Urban
Agriculture Overlay
Zone
South
Commercial/Industrial
Buildings (Future
Commercial Cannabis
Uses)
Entertainment (ENT)
Commercial
Manufacturing –
Urban Agriculture
Overlay Zone
East
Commercial/Industrial
Buildings (Future
Commercial Cannabis
Uses)
Light Industrial (LI)
Commercial
Manufacturing –
Urban Agriculture
Overlay Zone
West
Commercial/Industrial
Buildings
Entertainment (ENT)
Community
Commercial – Urban
Agriculture Overlay
Zone
The project site is currently developed with one vacant building totaling 2,665 square feet and two modular buildings (to be removed). To the south, east and west of the project site are various commercial and manufacturing facilities. To the west of the project site is Venture Auto, Inc. and multi-family residence (originally a single-family resident converted into multiple units). To the north of the site is multi-family housing development and the County of Los Angeles Department Public Social Services (DPSS). The facilities to the south and west of the project site are zoned for Commercial Cannabis actives and one parcel southwest of the project site has a Commercial Cannabis Permit application pending review by the City.

Table 3.2 below indicates the proposed City of Cudahy General Plan and Zoning Land Use Designations for the proposed project site and surrounding area.

Table 3.2 – Proposed General Plan and Zoning Information Surrounding Site
Locations Proposed Land Use
Proposed
General Plan
Designation
Proposed
Zoning
Designation
Proposed Project
Site
Commercial Cannabis
Facility
No change No change
North No applications pending No change No change
South Commercial Cannabis
Facilities
No change No change
East No applications pending No change No change

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West No applications pending No change No change
The proposed project includes Commercial Cannabis manufacturing in an existing, currently vacant, building. There is no General Plan or Zoning Designation proposed for the project site. There are no proposed projects to the north or east of the project site at the current time. There is one Commercial Cannabis facility proposed for the property to the southwest of the project site.

Consistency with the Cudahy 2040 General Plan
The 2040 General Plan outlines several goals, policies and programs designed to guide development within the City and achieve the design goals expressed by the community during the General Plan Update process. The section below, identifies the applicable General Plan goals, policies and programs and demonstrates how the proposed project will comply with or meet the requirements.

1. Goal LU -1 (land use): Complete, integrated, and defined neighborhoods, corridors, and districts.
 Policy LUE 1.1: Develop, maintain, and enhance the beneficial and unique character of the different neighborhoods, districts and open spaces.

The proposed project will contribute to defining the Commercial Urban Agriculture Overlay zone by developing a business within the emerging commercial cannabis industry. The proposed facility is located within the general area of other approved commercial cannabis sites, along Cecila St. The unifying design themes of each commercial cannabis facility will create a cohesive, modern, improved urban landscape for the area.

2. Goal LUE -3 (land use): Aesthetically pleasing, definitive, and inclusive urban design
 Require building and site frontages that define public streets with high-quality architectural and landscape design, including small-scale architectural elements and plan changes.
 Require new and renovated building be designed to avoid styles, colors, and materials that negatively impact the environment or the design character of the neighborhood and center in which they are located.

The proposed project fronts Atlantic Avenue, which is a public street. The project includes a landscape buffer at the property line between the adjacent parcel where access is taken and the proposed fencing. Landscaping elements include droughttolerant native plant species with water efficient irrigation. As a condition of approval, the facility operator must submit to the City, for review and approval, a façade improvement plan and landscaping plan which are required to be designed to meet the City’s design and landscaping guidelines. The design elements include modern architecture with a neighborhood character that is highlighted by creative design spaces. The façade improvements for the existing building will comply with the design and character goals outlined in the General Plan.

3. Goal LUE (land use) – 6: Enhanced character in neighborhoods

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 Policy LUE 6.2: Require that new additions, renovations, and infill development be sensitive to neighborhood context and building form and scale.

The proposed project is an infill development project as the proposed facility will be operating within one existing building. While the project does not include any major construction or additions, the design and scale has been evaluated to ensure compatibility with existing and future development. The area is currently largely industrial uses, including warehouses, manufacturing facilities and storage facilities.

Most existing buildings are single-story on deep rectangular lots. The proposed project is consistent with the existing neighborhood.
 Policy LUE 6.4: Require commercial and industrial uses to screen service facilities from public view. New development should enclose loading docks and bays when directly adjacent to residential uses.

The proposed facility design includes a security wall which will screen all commercial cannabis activities from pedestrian view and prevent access from the immediately adjacent residential uses to the north and west of the facility. All loading activities will occur behind the facilities security wall. No facility activities will be visible from the public view shed.

4. Goal ED-1 (economic development): A diverse and healthy economy  Policy ED-1.1: Promote long-term partnerships and programs that facilitate business recruitment, retention, and expansion through partnerships with businesses, property owners, and educational, arts, and environmental communities and other stakeholder groups.

The Commercial Cannabis Program helps the City meet this economic development goal and policy by creating long-term partnerships with facility operators. The proposed project includes a 10-year development agreement and a commercial cannabis permit. Over the 10-year life of the permit, the Operator is required, as a term and condition of operation, to contribute to the economy of the City by providing employment opportunities, paying operational fees and by making an annual contribution to the General Fund with the Community Benefits Program fee. The proposed development agreement stipulates that the Operator will contribute a minimum of $66,667 annually to the City for community benefits and programs. This will result in $666,667 in revenue for the City over the 10-year permit life. Each of the Commercial Cannabis sites will be required to make the same contribution as a term of their retrospective development agreements. If all proposed project sites are approved, the community benefit contribution alone would result in approximately $9.3 million in revenue for the City over 10 years.

5. Goal ED – 2: A thriving business climate that attracts and retains new businesses of diverse types and sizes.
 Policy ED – 2.3: Incentivize business to locate in Cudahy.  Policy ED – 2.4: Streamline development and business application process to ensure they are thorough and efficient.

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The Commercial Cannabis program offers cannabis industry leaders a unique and diverse operating area in the City. The City is conveniently located near the 710, I-5, 105 and 91 freeways. In addition to major roadways, the City is near the Los Angeles International Airport and Long Beach Port – both of which are major domestic and international import/export hubs. Being located just outside the City of Los Angeles, Cudahy provides Operators an opportunity to legalize their existing cannabis businesses in an unsaturated market, with an expedited permitting process, while remaining within short distance to major retail dispensaries within greater Los Angeles area. As such, the City has attracted some of the largest-most successful cannabis brands in the industry, like Aqua Tergere, LLC. As the operator and long-term tenant, the company is committed to maintaining a corporate partnership with the City.

6. Goal ED – 3: A skilled and adaptable local workforce  Policy ED – 3.1: Strive to increase the number of Cudahy resident who both live and work in Cudahy.
 Policy ED – 3.3: Continue to support industries that provide a range of jobs at prevailing living ages through land use policy and local incentives.

As previously mentioned, the proposed development agreement includes a provision that requires the Operator to provide 50% of the employment opportunities generated by the facility to Cudahy residents. The existing building is vacant, thus providing no jobs for residents. Other business in the City are not required to meet this requirement, therefore, if the building was leased or purchased by another business, the City would not necessarily gain any new jobs. Further, the proposed development agreement requires that all employees are paid a living wage, as determined by the Los Angeles Living Wage Ordinance, as well as full-time employment with benefits.

By agreeing to provide local jobs with living wages, Aqua Tergere, LLC will assist the City with meeting this goal and policy.

Urban Agriculture Overlay Business Standards
The proposed project is subject to the City of Cudahy Municipal Code (CMC), Title 20, Chapter 20.120 – Commercial Urban Agriculture Overlay Zone. Table 7.1 below indicates the applicable Business Development Standards of how the proposed project complies with these standards.

Table 7.1 – Commercial Cannabis Business Standards
CMC Section Business Standard Consistency
Analysis (Does the
project meet the
standard?)

COMMERCIAL

CANNABIS

PRODUCTS
Commercial Cannabis Products
Manufacturing is a permitted use only
on properties within the applicable
Yes; the project is
located within the
Urban Agriculture

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MANUFACTURING
(ORD. 673, SEC

5.20.110)
Permit Zone with a valid Cultivation
Permit and other requisite permits and
entitlements.

Overlay Zone as
required by the City
Zoning Code and will
operate with an
approved CCP, if
granted.

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

Yes; the project
includes a Condition
of Approval (COA No.
10) which requires
compliance with this
standard.

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

Yes; the project
includes a Condition
of Approval (COA No.
11) which requires
compliance with this
standard.
a) All Cannabis Products produced
by a Manufacturing Permittee must be
packaged in child resistant containers
prior to leaving the Premises for such
Manufacturing Permittee in accordance
with applicable State Law, including
MAUCRSA.
b) All Cannabis Products produced
by a Manufacturing Permittee must be
labeled in compliance with applicable
State Law, including MAUCRSA.

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

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

Yes; the facility will
use Type 7
Manufacturing
(volatile solvents)
methods and includes
a condition to obtain
LA County Fire
approval prior to
operation (COA No.
14)
Storage, use, and handling of
compressed gases in compressed gas
containers, cylinders, tanks, and
systems shall comply with California
Fire Code Chapter 53. Partially full
compressed gas containers, cylinders,
or tanks containing residual gases shall
be considered as full for the purposes
of the controls required. Compressed
gases classified as hazardous
materials shall also comply with
California Fire Code Chapter 50 for
general requirements and California
Fire Code Chapter 53 addressing
specific hazards, including California
Fire Code Chapter 58 (Flammable
Gases), California Fire Code Chapter
60 (Highly Toxic and Toxic Materials),
California Fire Code Chapter 63
(Oxidizers, Oxidizing Gases and
Oxidizing Cryogenic Fluids, and
California Fire Code Chapter 64
(Pyrophoric Materials). Prevention,
control, and mitigation of dangerous
conditions related to storage, use,
dispensing, mixing, and handling of
flammable and combustible liquids
shall be in accordance with California
Fire Code Chapters 50 and 57.

Yes; the facility will
use Type 7
Manufacturing
(volatile solvents)
methods and includes
a condition to obtain
LA County Fire
approval prior to
operation (COA No.
14)

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Urban Agriculture Overlay Proposed Design Standards
The Urban Agriculture Overlay Zone business and operational standards were established with the adoption of Ordinance 673; however, the ordinance did not provide specific design or development standards for the zone. Table 8.1 below, represents the approved designed standards for the Cannabis Zone to be incorporated in the recently approved Zoning Ordinance. To ensure consistency with the approved design standards, the proposed project has been designed to comply with the standards and the project includes conditions of approval which would ensure compliance with development standards and design guidelines.

Design/Development Standard Consistency
Analysis
Landscaping All new Commercial Cannabis Permits must
provide landscaping using drought-tolerant,
desert landscaping, as approved by the City.

Landscaping may include surface planters,
above ground planters, and other innovating
planting solutions, approved by the City. A
5-foot landscape dedication is required at the
front of new and existing buildings.

Exceptions may be made for existing
buildings with no existing front yard setback.

Yes; the project
includes a condition
(COA No. 18) that
requires
compliance with
these standards.

Parking 1 parking space for every 2 employees during
the peak shift; OR a parking plan approved
by the City.

Façade
Improvements
All new Commercial Cannabis Permits must
include a Façade Improvement Plan for City
approval. The plan must include new paint,
siding or other building improvement
materials, in a color scheme approved by the
City.

Plans must also include new paving, as
needed, parking striping, and other site
improvements, as determined by the City.

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

Materials: Decorative or reinforced metal,
wrought iron, concrete and block wall are all
allowed materials. Alternative materials may
be allowed with City approval. Chain-link and
razor wire are strictly prohibited. Fences may
be required to be constructed 5 feet from the
property line to allow for future City

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improvements.

All fencing plans must be submitted to and
approved by the City prior to construction.

Set Backs When applicable, as determined by the City
Manager, a 5-foot front yard set-back may be
required for dedication for future City Public
Right of Way improvements.

CONDITIONAL USE PERMIT FINDINGS AND SUPPORTING EVIDENCE Commercial Cannabis Permits are Conditional Use Permits pursuant to the provisions of Ordinance 673 and the City Manager’s determination. The Planning Commission must make certain findings to grant a Conditional Use Permit pursuant to Section 20.44.070 of the Cudahy Municipal Code (CMC). The ability to make the required findings is evaluated below.

1. The site for a proposed conditional use should be adequate in size and shape to accommodate the yards, walls and fences, parking and loading, landscaping and other development features prescribed in this chapter, or required by the commission, city council or other authorized agent in order to integrate the conditional use with the land and uses in the neighborhood. [CMC § 20.44.070(1)]
The proposed project does not include any new construction. The project site has one building constructed. The other two buildings/structures on-site will be removed or demolished. The development standards for the Commercial Manufacturing – Urban Agriculture Overlay Zone will be met with the development of this project. Based on the evidence presented in this staff report, the proposed project is consistent with the development standards and design guidelines established for the Urban Agriculture Overlay Zone.

Based on the discussion above, this permit approval finding can be made.

2. The Commission shall consider the nature, condition, and development of adjacent uses, buildings, and structures and the effect the proposed conditional use may have on such adjacent uses, buildings and structures. [CMC § 20.44.070(2)]
The surrounding properties to the south, east and west are industrial uses and zoned for commercial cannabis activity. The properties to the north are multi-family housing and the County of Los Angeles DPSS. The proposed project is in the ideal area for Commercial Cannabis activities in the City as it

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is within the designated Urban Agriculture Overlay and will occupy one currently vacant building.

Based on the discussion above, this permit approval finding can be made.

3. The Site for a proposed conditional use should relate to streets and highways adequate in width and pavement to carry the kind and quantity of traffic such use would generate. [CMC § 20.44.070(3)]
Atlantic Avenue is adequate in width and pavement to carry the quality of traffic generated by the proposed use. The proposed project is located behind a parcel that abuts Atlantic Avenue. The proposed project will take access from the parcel to the west through an access agreement with the landowner.

The proposed project does not include any new construction and the proposed use (Commercial Cannabis Facility) will not increase the intensity of the previous manufacturing use. Therefore, no additional traffic is anticipated to be generated by the proposed project.

Based on the discussion above, this permit approval finding can be made.

CALIFORNIA ENVIORNMENTAL QUALITY ACT (CEQA)
Pursuant to CEQA (Public Resources Code §21000 et seq.) and the State CEQA Guidelines (Title 14, California Code or Regulations, Division 6, Chapter 3, §15000 et seq.), the subject application is a “project” that is subject to environmental review.

The proposed project is exempt from CEQA pursuant to the CEQA Guidelines Section 15301. The proposed project does not include any new construction beyond interior or exterior alterations involving such things as interior partitions, plumbing, and electrical conveyances, in accordance with CEQA Section 15301(a).

FISCAL IMPACT
The proposed development agreement would require the operator to provide full-time employment opportunities to residents. The proposed facility is projected to hire up to 10 employees with 50% being City residents. The building facility is currently vacant and therefore currently providing no employment opportunities or generating any sales tax revenue for the City. Because no business is currently being operated, the City is also losing potential business license revenues. Such has been the case for several years.

By allowing the proposed uses, the City would not only bring new jobs to the residents, but also potential tax revenue generated by sales tax and business license tax. In addition to tax revenues, the City would get between 1% and 2% of the facilities gross receipts. California is currently the most profitable cannabis market in the nation with

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market projections upwards of $5.3 Billion in the first year of the legal market (2018).

The Los Angeles market leads all other regions—including Colorado and Las Vegas— with cannabis sales. BDS Analytics calculated sales from Colorado, Oregon, and Washington and California for four months (March through June) in 2017. California state dispensaries sold $894 million worth of cannabis products versus Colorado's $516 million, Washington's $302 million and Oregon's $163 million. i Some small cultivation sites, similar in size to the proposed project, are projecting annual revenues upwards of $4 million per year. Such revenues would result in a $80,000 annual revenue for the City on the cultivation license, alone.

As described in the 2040 General Plan Consistency section, above, the proposed development agreement stipulates that the Operator will contribute a minimum of $66,667 annually to the City for community benefits and programs. This will result in $666,667 in revenue for the City over the 10-year permit life. Each of the Commercial Cannabis sites will be required to make the same contribution as a term of their retrospective development agreements. As previously mentioned, if the City approves all proposed project sites, the community benefit contribution would result in approximately $9.3 million in revenue for the City over 10 years.

For Fiscal Year (FY) 2018-19 the minimum monthly Operating Fee is projected to be approximately $1,365.84 based upon square footage. In the event the business is not operating in the FY, the minimum fee the City will receive is approximately $1,992.06.

The minimum annual Operating Fee for FY 2018-19 is estimated to be $[inter amount].

This Operating Fee is projected for the period April 1, 2019 to June 30, 2019, if the City takes the following actions:

1. City Council approves the proposed Ordinances and Development Agreements on October 16, 2018;

2. Second Reading of this Ordinance is in November 2018; and

3. Ordinance (Development Agreement) is effectuated 30 days thereafter.

In subsequent years, based upon the size and various licenses types, the site would conservatively bring in approximately $7,968.24 in annual revenue to the City through minimum operational fees; however, the proposed operation is managed by a successful, experience cannabis company with profit projections that far exceed the minimum fee projections. The City anticipates Operating Fee minimum revenues from the nine locations being proposed to the Planning Commission and City Council to be $1,365.84 for Fiscal Year 2018-19. This site represents 1% of the $465,000 revenue projection.

In addition to operating fees, operators will pay a Community Benefit Program fee of $66,667.00, annually, to the City General Fund to support community programs. Based on the economic and fiscal analysis above, the proposed project will have a positive fiscal impact on the City.

It is possible that the City may, in the future, impose a city-wide Cannabis Tax (by Citizen Initiative or otherwise). However, the proposed development agreements do not bind operators to an unknown future Cannabis Tax. Staff recommends that the Commission consider this issue when reviewing the economic impacts of the

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development agreements and, if appropriate, require operators to expressly agree to be bound by any such future Cannabis Tax. However, it is expected that operators would object to such a condition.

LEGAL DESCRIPTION
The proposed development would occur on a legal lot. The proposed property is a legal lot described and shows as follows:

THE NORTHERLY 160 FEET OF LOTS 213 AND 214 OF TRACT NO. 180, IN THE

CITY OF CUDAHY, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 13, PAGE 198 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.

CONCLUSION
Since February 1, 2012, when California Governor Jerry Brown dissolved all redevelopment agencies, the City has suffered from lack of development funding and opportunities. Prior to dissolution, the City received approximately $3 million in annual revenues from redevelopment agency funding. To overcome the loss, the City Council has prioritized economic development initiatives and programs to redevelop dilatated and underutilized industrial areas.

Consistent with this objective the City Council approved the addition of both an Economic Development Ordinance No. 652 to allow the City to implement its General Plan objectives and projects. Shortly thereafter, the City Council approved the Development Agreement Ordinance No. 653 to allow private investment groups to capitalize on emerging market trends such as the Cannabis industry. The proposed project would provide job opportunities in the City as well as significant economic and fiscal contribution to the City’s General Fund.

Based on the information presented above, the proposed project is consistent with the City Council’s economic development goals; the 2040 General Plan goals, policies and programs; and the applicable zoning regulations. Pursuant to the City’s Economic Development Ordinance No. 652, Development Agreement Ordinance 653, the Commercial Cannabis Ordinance 673 and the Zoning Code, the Planning Commission is requested to review the proposed project and to recommend approval of Commercial Cannabis Permit No. CCP18-0011 and Development Agreement (DA) No. DA18-011C for the Commercial Cannabis Facility to be operated by Aqua Tergere, LLC located at 8210 Atlantic Avenue (APN 6224-023-020), to the City Council.

ATTACHMENTS:

A. STRATEGIC PLAN
B. ZONING DESIGNATION MAP
C. GENERAL PLAN LAND USE DESIGNATION MAP

Administrative Review Record - Aqua Tergere, LLC

Agenda Report
September 17, 2018 Page 22 of 22
D. PROJECT SITE PLAN, FLOOR PLAN AND BUILDING ELEVATION/SITE PHOTOS E. NOTICE OF EXEMPTION
F. CONDITONS OF APPROVAL
G. RESOLUTION NO. 18-22
H. ORDINANCE NO. 697
The decision of the Planning Commission is final unless appealed to the City Council within 15 working days, in accordance with CMC Title 20, Chapter 20, Section 050 (CMC § 20.20.050), after the permit has been approved, conditionally approved or denied. Any aggrieved person may file an appeal of the decision with the City Clerk, in writing. The Planning Division shall then set a hearing date before the City Council to review the matter at the next available City Council meeting date.

i
https://www.greenmarketreport.com/wp-content/uploads/2018/01/2018-California-Cannabis-Forecast.pdf

Administrative Review Record - Aqua Tergere, LLC

EXHIBIT A

STRATEGIC PLAN

Administrative Review Record - Aqua Tergere, LLC

STRATEGIC PLANNING WORKSHOP

FINAL REPORT
Presented to:

Michael Allen, Acting City Manager
Facilitators:

Henry T. Garcia and Jennifer Hernandez
HR Dynamics & Performance Management
City of Cudahy

Administrative Review Record - Aqua Tergere, LLC

2 Executive Summary
Goal Setting Workshop
July 12, 2014
City Council Members In Attendance:

Mayor Chris Garcia
Vice Mayor Cristian Markovich
Councilmember Diane Oliva
Councilmember Baru Sanchez
Staff Attendance:

Henry Garcia, Consultant
Jennifer Hernandez, Acting Human Resources Specialist
Facilitated by:

Henry T. Garcia, Consultant
Jennifer Hernandez, Acting Human Resources Specialist

Administrative Review Record - Aqua Tergere, LLC

3 Executive Summary
The purpose of the workshop was to assist the City of Cudahy’s Mayor, City Council in facilitating a Goal Setting Workshop in order to provide staff with clear direction. To be more specific, the City Council engaged in an interactive process in which they accomplished the following:

1. Established expectations for the Workshop and intended outcomes

2. Identified the organization’s Strengths, Weaknesses, Opportunities and Threats (SWOT)

3. Established five (5) major targets

4. Developed thirty-one (31) goals for the targets

5. Allowed staff to develop and define priorities across the targets.

6. Referred development of the detailed action plans and schedule to the Interim City Manager and Executive Team
At the conclusion of the workshop, the Mayor and City Council established a clear direction and focus for the Executive Team. The Executive Team worked to develop detailed action plans for the identified priority items.

Attached to this summary is a specific work product that lists the goals and action schedule. It should be noted that the attached timeline is intended to be incorporated into the upcoming fiscal 2014/2015 budget where possible.

It is recommended that a regular formal review of the newly established work plan occur within six months, or annually, (whichever the Mayor, City Council and City Manager deems appropriate), in which progress may be determined, and new or shifting priorities addressed.

I would like to thank the Mayor and City Council for the opportunity to assist the City of Cudahy in this important endeavor and for the outstanding team work that provided for a positive and productive day.

Respectfully,
Henry
Henry T. Garcia, Consultant
HR Dynamics & Performance Management

Administrative Review Record - Aqua Tergere, LLC

4 Expectations
The Mayor and City Council expressed the following expectations related to the goal setting workshop:
¾ Establish Goals
¾ Create Synergy
¾ Establish Focus

Administrative Review Record - Aqua Tergere, LLC

5 Strengths, Weaknesses,
Opportunities, Threats
(SWOT Analysis)
Strengths
x Low Cost Programs
x Strong Latino Base
x Community Involvement
x Strong Regional Elected Representatives
x Strong Faith Based Organizations
x Strong Relationship with LAUSD

Administrative Review Record - Aqua Tergere, LLC

6 Strengths, Weaknesses, Opportunities,
Threats
(SWOT Analysis)
Weaknesses
x No balanced budget
x Lack of communication
x No Chamber of Commerce
x No new consistent revenue generators
x Lack of economic development
x Underutilized Commissions
x Old Facilities
x No Business Retention Program
x No Clear Direction for Code Enforcement
x Graffiti Abatement
x Lack of Good Parks
x State Audit
x Customer Service
x Lack of Staff/Organizational Capacity
x No Grant Writer
x Lack of Community Outreach Tools
x Trash Dumping/Community Awareness Programs

Administrative Review Record - Aqua Tergere, LLC

7 Strengths, Weaknesses, Opportunities,
Threats
(SWOT Analysis)
Opportunities
x Create Economic Development Plan
x Create Revenue Plan
x Create Green Space & Recreation
x Grant Writing
x Professional Development for Staff
x Enhance Public Safety
x Re-vamp Neighborhood Watch Program/V.O.P. Program
x Create State of the City address
x Bike Path/Implementation of Bike Path

Administrative Review Record - Aqua Tergere, LLC

8 Strengths, Weaknesses, Opportunities,
Threats
(SWOT Analysis)
Threats
x Losing Businesses
x Regional Business Threats
x Being too Small
x Gangs/Public Safety
x Shrinking Revenue Base
x RDA Audit Issues
x Deteriorating Infrastructure
x No 5 Year Financial Plan

Administrative Review Record - Aqua Tergere, LLC

EXHIBIT B

ZONING MAP

Administrative Review Record - Aqua Tergere, LLC







 




























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Administrative Review Record - Aqua Tergere, LLC

EXHIBIT C

GENERAL PLAN LAND USE
MAP

Administrative Review Record - Aqua Tergere, LLC

Administrative Review Record - Aqua Tergere, LLC

EXHIBIT D

SITE PLAN, PROPOSED FLOOR

PLAN AND ELEVATIONS

Administrative Review Record - Aqua Tergere, LLC

A-000 COVER SHEET
ARCHITECTURALA-001 SPECIFICATIONSA-002 SPECIFICATIONSA-003 SPECIFICATIONSA-005 SPECIFICATIONSA-006 ADA SHEETSA-007 ADA SHEETSA-008 ADA SHEETSA-009 ADA SHEETS CG-001 CAL GREEN SHEET 1CG-002 CAL GREEN SHEET 2CG-003 CAL GREEN SHEET 3 A-020 SITE PLANA-201 FLOOR PLANA-301 CEILING PLANA-401 ELEVATIONSA-501 BUILDING SECTIONA-521 WALL PARTITIONSA-561 WALL PARTITIONS & DETAILSA-751 ROOM FINISH & DOOR SCHEDULES MECHANICALM1.1 – MECHANICAL DETAILS,SCHEDULES AND SPECIFICATIONSM2.0 – MECHANICAL FLOOR PLANM3.0 – ENERGY COMPLIANCE TITLE 24M3.1 – ENERGY COMPLIANCE TITLE 24M3.2 – ENERGY COMPLIANCE TITLE 24M3.3 – ENERGY COMPLIANCE TITLE 24PLUMBINGP1 – PLUMBING SPECIFICATIONS, SCHEDULES, DETAILS AND CALCS.P2 – PLUMBING FLOOR PLAN AND ISOMETRICS ELECTRICALE0.0 - ELECTRICAL SPECIFICATIONSE0.1 - T24 (INDOOR LIGHTING)E0.2 - T24 (OUTDOOR LIGHTING)E1.0 - ELECTRICAL SITE PLANE1.1 - EXTERIOR PHOTOMETRIC PLANE2.0 - LIGHTING FLOOR PLANE3.0 - POWER FLOOR PLANE4.0 - ONE-LINE DIAGRAME4.1 - PANEL SCHEDULES PROJECT: AQUA LAB GROW FACILITYPROJECT ADDRESS: 8210 ATLANTIC AVENUE CUDAHY CA 90201
APN: 6224-023-020
ZONING: COMMERCIAL/INDUSTRIAL
SITE AREA: 35,140 S.F (GROSS)
BUILDING AREA: 2,626 S.F
BUILDING DATA:

ACTUAL BUILDING HEIGHT; 1 STORY 24'
OCCUPANCY:

EXISTING F-1/ BPROPOSED B
CONSTRUCTION TYPE: TYPE V-B
ACTUAL BUILDING AREA: 2,626 S.F.

TOTAL 2,626 S.F.

ALLOWABLE AREA
9,000 S.F. PER CBC 2013 TABLE 503.

BUILDING AREA ANALYSIS:

OCCUPANCY LOADING PER CBC 2013 TABLE 1004.1.12 MAXIMUM FLOOR AREA

ALLOWANCES PER OCCUPANT
MANUFACTURING/PRODUCTION: 2626 S.F./200 14 OCC.

TOTAL: 14 OCC,

EXIT REQUIREMENTS
REQUIRED: 1 EXITSPROVIDED: 2 EXITS
COMMON PATH OF TRAVEL LESS THAN 100'.

EXIT WIDTH (CBC TABLE 1005.1) (MAX. OCCUPANT LOAD) X .15 = REQ'D WIDTH REQUIRED: (14) X .15 = 1.96"PROVIDED: 72"

AGRICULTURE
RESTROOM REQUIREMENTS:REQUIREMENTS FOR H-1: 1 RESTROOM PER 100 EMPLOYEES 14 EMPLOYEES = 1 RESTROOM
RESTROOMS REQUIRED: 1RESTROOMS PROVIDED: 2MOP SINK 1 REQ. 1 PROVIDED PARKING REQUIREMENTS:EXISTING PARKING PROVIDED: 16 SPACESPARKING REQUIRED: 14 SPACES + 1 ADA CONSTRUCTION CODES:

ALL CONSTRUCTION SHALL COMPLY WITH THE FOLLOWING 2013 CODESAND AMENDMENTS PER THEIR ADOPTING ORDINANCES. 2013 California Administrative Code (CAC)2013 California Building Code (CBC)2013 California Electrical Code (CEC)2013 California Mechanical Code (CMC)2013 California Plumbing Code (CPC)2013 California Energy Code (CEEC)2013 California Existing Building Code (CEBC)2013 California Green Building Standards Code (CALGreen)2013 Energy Efficient Standards Code

NOTICE ABOUT THE DRAWINGS AND INFORMATION CONTAINED IN THIS SET OF CONSTRUCTION DOCUMENTS.

THE DRAWINGS AND INFORMATION CONTAINED IN THIS SET OF

CONSTRUCTION DOCUMENTS ARE INSTRUMENTS OF SERVICE AND ARE THE PROPERTY OF PATHANGAY ARCHITECTS, NAVIN PATHANGAY. THE

OWNERSHIP OF THESE CONSTRUCTION DOCUMENTS AND ALL INFORMATIONCONTAINED WITHIN, IS THAT OF PATHANGAY ARCHITECTS, NAVIN

PATHANGAY, UNLESS SPECIFIED IN WRITING PREVIOUS TO THE
COMMENCEMENT OF THE PRODUCTION DRAWINGS. ALL INFORMATION

WITHIN THESE CONSTRUCTION DOCUMENTS IS FOR THE SPECIFIED

PROJECT AND SHALL NOT BE USED OTHERWISE WITHOUT THE EXPRESS WRITTEN PERMISSION OF PATHANGAY ARCHITECTS.

ORIGINAL PRINTS OF THIS SET OF CONSTRUCTION DOCUMENTS ARE ON FILE AT A LOCATION SPECIFIED BY PATHANGAY ARCHITECTS AND SHALLREMAIN THERE FOR THE DURATION OF THE SPECIFIED PROJECT. THE

ORIGINAL PRINTS AND THE ELECTRONIC FILES CONTAINING THESE PRINTS ARE THE SOLE PROPERTY OF PATHANGAY ARCHITECTS. SECOND PARTY

USAGE IS PROHIBITED WITHOUT PRIOR EXPRESS WRITTEN CONSENT OF

PATHANGAY ARCHITECTS AND THE PARTY SPECIFIED ON THE TITLE BLOCK OF THIS SET OF CONSTRUCTION DOCUMENTS.

ALL DETAILS, SYMBOLS AND NOTATIONS ARE THE PROPERTY OF

PATHANGAY ARCHITECTS AND SHALL NOT BE REPRODUCED IN ANY MATTER EXCEPT FOR THAT OF THE SPECIFIED PROJECT. WRITTEN DIMENSIONS ARE TO TAKE PRECEDENCE OVER ALL SCALED DIMENSIONS. THE CONTRACTOR

SHALL VERIFY AND BE RESPONSIBLE FOR ALL DIMENSIONS ANDSPECIFICATIONS AND CONDITIONS OF THE JOB AND SHALL NOTIFY

PATHANGAY ARCHITECTS OF ANY VARIATIONS FROM THE DIMENSIONS,

SPECIFICATIONS AND CONDITIONS SHOWN BY THESE CONSTRUCTION DOCUMENTS.

THE USE OF CHANGE ORDERS IS A BASIC ELEMENT OF THE DESIGN AND CONSTRUCTION PROCESS. WHILE EVER CLIENT AND DESIGN

PROFESSIONAL WANTS PLANS AND SPECIFICATIONS TO BE CAREFULLY COORDINATED AND UNAMBIGUOUS. IT IS NOT COST-EFFECTIVE FOR ACLIENT TO PAY A DESIGN PROFESSIONAL FOR THE LEVEL OF SERVICE NECESSARY TO ACHIEVE A 'PERFECT' SET OF INSTRUMENTS OF SERVICE.NO MATTER HOW EXTENSIVE DESIGN SERVICES MAY BE, CERTAIN ASPECTS

OF THE DESIGN WILL REQUIRE MODIFICATIONS TO REFELCT CONDITIONS AT THE CONSTRUCTION SITE. REASONABLE PRACTIVE INVOLVES A CERTAIN

LEVEL OF FLEXIBILITY IN THE DEVELOPMENT OF A PROJECT AS IT MOVES

FROM DESIGN THROUGH THE CONSTRUCTION PROCESS SO THAT CHANGE WILL IMPROVE THE OUTCOME. AMBIGUITIES OR DISCREPANCIES SHOULD BE

IMMEDIATELY CALLED TO THE ATTENION OF PATHANGAY ARCHITECTS PRIOR TO PLACEMENT OF MATERIALS. PATHANGAY ARCHITECTS ASSUMES NO

RESPONSIBILITY FOR WORK IN PLACE OF DEVIATION FROM THE
INFORMATION AND INTENT OF THESE DRAWINGS.

1. ALL DIMENSIONS ARE TO THE FACE OF C.M.U WALL AND METAL STUDS. (TYPICAL - UNLESS NOTED OTHERWISE)

2. WINDOWS, EXTERIOR DOORS, AND GLAZING ARE NOTATED ON
PLANS AS NEW OR EXISTING.

3. ALL GYPSUM BOARD SHALL BE 5/8" THICK UNLESS NOTED
OTHERWISE.

4. ALL GLAZING SHALL COMPLY WITH CHAPTER 24 OF THE
CALIFORNIA BUILDING CODE. (2013 EDITION)

6. AT ALL WATER HEATER LOCATIONS - PROVIDE PRESSURE
RELIEF LINE TO THE EXTERIOR @ 6" - 24" ABOVE FINISH
GRADE IN THE DOWN POSITION.

7. PROVIDE COMBUSTION AIR AS REQUIRED AT ALL GAS

APPLIANCE LOCATIONS PER THE CALIFORNIA MECHANICAL
CODE. (2013 EDITION)

8. ALL BUILDING INSULATION SHALL COMPLY WITH CHAPTER 7 OF THE 2013 C.B.C AND SHALL HAVE A FLAME SPREAD RATING
NOT TO EXCEED 25, AND A SMOKE DENSITY NOT TO EXCEED
450, WHEN TESTED IN ACCORDANCE WITH ASTM E84.

9. PROVIDE NOTE ON FINAL DOCUMENTS: SIGNS REQUIRED
SEPARATE APPROVAL AND PERMITS.

10. ALL RIGHTS-OF-WAY ADJACENT TO THIS PROPERTY SHALL BE LANDSCAPED AND MAINTAINED BY THE PROPERTY OWNER.

11. ALL EQUIPMENT, UTILITIES, OR OTHER APPURTENANCES

ATTACHED TO THE BUILDING SHALL BE AN INTEGRAL PART OF
THE BUILDING DESIGN IN TERMS OF FORMS, COLOR ANDTEXTURE.

12. ALL ROOF TOP MECHANICAL EQUIPMENT SHALL BE

COMPLETELY SCREENED BY PARAPET WALLS OR WITHIN
ROOF STRUCTURE.

13. ROOF MOUNTED COMMUNICATION EQUIPMENT, INCLUDING

SATELLITE DISHES, SHALL BE COMPLETELY SCREENED BY

THE PARAPET WALLS OR FREE STANDING SCREEN WALL
SUBJECT TO PROJECT REVIEW APPROVAL.

14. ALL GROUND MOUNTED EQUIPMENT SHALL BE SCREENED BY
SCREEN WALL TO THE HEIGHT OF THE TALLEST UNIT PLUS 1'-0"

WITH ARCHITECTURAL COLORS AND MATERIALS TO MATCH
BUILDING.

GENERAL NOTES PROJECT TEAM

DRAWING INDEX

PROJECT STATISTICS

VICINITY MAP

NOT TO SCALE

PROJECT DESCRIPTION

PROJECT DESCRIPTION MARIJUANA PROCESSING FACILITY
THIS PROJECT IS 2626 SQFT INTERIOR REMODEL OF AN EXISTING WAREHOUSE

PERMITTED FOR A EXTRACTION AND PROCESSING OF MMJ
240 SQFT OF THIS FACILITY SHALL BE USED AS EXTRACTION AND PROCESS

WILL HAVE NEW INTERIOR WALLS THAT ARE BEING ADDED WITH, ELECTRICAL, MECHANICAL AND PLUMBING.

THE WALLS FOR THE GROW FACILITY WILL BE STEEL STUDS WITH CEILING TO ENCLOSE

WITH DRYWALL CEILINGS

TEMPORARY MANUFACTURING LICENSE
LICENSE NUMBER: CDPH-TOOOOO555LICENSE TYPE: M-TYPE 7: VOLATILE SOLVENT EXTRACTION

1. PREMISES IDENTIFICATION TO BE LEGIBLE FROM STREET OR DRIVE AND MUST BE ON ALL PLANS.

2. FIRE LANES AND EMERGENCY ACCESS SHALL BE PROVIDED AND

MARKED IN COMPLIANCE WITH COUNTY ORDINANCE AND IFC AT THE FOLLOWING LOCATIONS: PAVE THE DRIVEWAY TO THE FIRE
DEPARTMENT TURN-A-ROUND. GATES SHALL BE A MINIMUM 20' WIDE CLEAR.

3. PROVIDE KNOX BOX ACCESS.
.

4. PROVIDE ALL WEATHER ACCESS ROAD (MIN. 20') TO ALL BUILDINGS AND HYDRANTS FROM PUBLIC WAY DURING CONSTRUCTION.

NUMBER OF REQUIRED FIRE HYDRANTS: THE DEVELOPER SHALL HAVE THE REQUIRED FIRE HYDRANTS INSTALLED AND OPERABLE PRIOR TOTHE FOOTING INSPECTION. DEVELOPER TO PROVIDE WAIVER OF FIRE

DEPARTMENT RESPONSIBILITY OR COPY OF CURRENT CITY APPROVAL

CIVIL WATER PLANS TO FIRE SPRINKLER CONTRACTOR FOR LOCATING NEW AND/OR EXISTING HYDRANT WATER MAIN SUPPLY DATA. SPACEDMAX O.C. 700' AT 1,500 GPM.

5. PORTABLE FIRE EXTINGUISHERS SHALL BE INSTALLED.

6. EXIT AND EMERGENCY LIGHTING SHALL COMPLY WITH THE COUNTY ORDINANCE AND IBC.

ADDITIONAL GENERAL NOTES FIRE ORDINACE REQUIREMENTS

A Q U A L A B

COMMERCIAL CANNABIS MANUFACTURING F A C I L I T Y
OWNER:

AQUA TERGERE, LLC

DBA CALI SPLASH
2355 WESTWOOD BLVD. SUITE 534TEL: (818) 613 1160
CONTACT: [email protected]
CONTACT/ CONTRACTOR:

OWNER CONTRACTOR
ARCHITECT:

PATHANGAY ARCHITECTS
727 E BETHANY HOME RDSUITE D225
PHOENIX, AZ 85014
TEL: (602) 481 5151
CONTACT: NAVIN PATHANGAY

ELECTRICAL

ARDEBILI BORUM CONSULTING ENGINEERS
TEL: (602) 997 6800

MECHANICAL AND PLUMBINGMG ENGINEERING LLC
CONTACT: MIROSLAV GRBIC
TEL: (602) 758 6088

FIRE GENERAL NOTES

1. WHERE ACCESS TO OR WITHIN A STRUCTURE OR AREA IS RESTRICTED

A KEYBOX SHALL BE INSTALLED IN AN APPROVED LOCATION/S OR EXISTING KEY BOXES, UPDATED KEYS SHALL BE PROVIDED (CFC 506.1)

2. AN 8 12"X11 MAP DISPLAYING A GENERAL FLOOR PLAN OF THE FACILITY

INCLUDING USE OF EACH ROOMS, FURNISHINGS LAYOUT, HAZARDOUS

MATERIAL STORAGE LOCATIONS ETC SHALL BE POSTED NEAR THE MAIN ENTRANCE IN CLEAR PROTECTIVE COVER TO BE PROVIDED AT FINAL.

3. A MINIMUM OF ONE 2A 10-B:C SHALL BE PROVIDED ON EACH

FLOOR LEVEL, CONSPICUOUSLY LOCATED, ALONG NORMAL PATHS OF TRAVEL AND WITHIN 75 FEET TRAVEL DISTANCE. (CCR, TITLE 19, DIVISION 1, SECTION 567 (A) THROUGH (K)) (CFC 906.3)

4. AN APPROVED MANUAL FIRE ALARM SYSTEM SHALL BE INSTALLED IN

ALL DISPENSARIES, CULTIVATION, MANUFACTURING AND TESTING FACILITIES IN ACCORDANCE WITH THE PROVISIONS NFPA 72 TO

PROVIDE OCCUPANT NOTIFICATION THROUGHOUT THE FACILITY

INCLUDING OTHER REQUIREMENTS S PROVIDED BY ANOTHER SECTION OF THE CFC.

5. SUBMIT AN EXIT ANALYSIS PLAN THAT LABELS AND CLEARLY

SHOWS COMPLIANCE WITH ALL REQUIRED EGRESS FEATURES SUCH

AS, BUT NOT LIMITED TO, COMMON PATH OF TRAVEL, REQUIRED

NUMBER OF EXITS, OCCUPANT LOAD, REQUIRED WIDTH, CONTINUITY, TRAVEL DISTANCE, ETC. (CBC 1001.1)

6. A MINIMUM OF ONE 2A 10-B:C FIRE EXTINGUISHER SHALL BE PROVIDED FOR EVERY 75 FEET OF TRAVEL DISTANCE

7. COMBUSTIBLE DEBRIS SHALL NOT BE ACCUMULATED WITH THE BUILDINGS. COMBUSTIBLE DEBRIS, RUBBISH AND WASTE MATERIAL

SHALL BE REMOVED FROM BUILDING AT THE END OF EACH SHIFT OF WORK

8. LABELING . DOORS INTO ELECTRICAL CONTROL PANEL ROOMS SHALL BE

MARKED WITH A PLAINLY VISIBLE AND LEGIBLE SIGN STATING
ELECTRICAL ROOM OR SIMILAR APPROVED WORDING.

AQUA TERGERE

PROCESSING FACILITY
8208 ATLANTIC AVENUE
CUDAHY, CA 90201
© COPYRIGHT 2018

PATHANGAY ARCHITECTS, LLC
KEY:

DRAWN BY: REVIEWED BY:
7/30/2018 2018-19
SHEET TITLE:SHEET NUMBER:

DATE: PROJECT NUMBER:
pathangay architects
727 E BETHANY HOME RD - SUITE D225
PHOENIX ARIZONA 85014
(P) 602-368-9375 (F) 602-368-9380
A000

COVER SHEET

RM/DG NP
CITY COMMENTS07/30/2018 1
1 1
25

Administrative Review Record - Aqua Tergere, LLC

25

Administrative Review Record - Aqua Tergere, LLC

GENERAL NOTES

1. ALL SOIL UNDER FOOTINGS AND SLABS ON GRADE SHALL BE TREATED WITH TERMITE

POISON PRIOR TO POURING CONCRETE

2. ALL GYPSUM BOARD SHALL BE 5/8" THICK UNLESS NOTED OTHERWISE.

3. AT ALL WATER HEATER LOCATIONS - PROVIDE PRESSURE RELIEF LINE TO THE EXTERIOR @ 6" - 24" ABOVE FINISH GRADE IN THE DOWN POSITION.

4. PROVIDE COMBUSTION AIR AS REQUIRED AT ALL GAS APPLIANCE LOCATIONS PER THE INTERNATIONAL MECHANICAL CODE.

5. ALL BUILDING INSULATION SHALL COMPLY WITH SECTION 718 OF THE 2006 I.B.C AND SHALL HAVE A FLAME SPREAD RATING NOT TO EXCEED 25, AND A SMOLE DENSITY NOT TO EXCEED 450, WEN TESTED IN ACCORDANCE WITH ASTM E84.

6. SIGNAGE UNDER SEPARATE APPROVAL AND PERMITS.

7. NOT ALL KEYNOTES REFER TO ITEMS ON THIS SHEET.8. WHERE DIMENSIONAL OR DETAIL DISCREPANCIES EXIST BETWEEN THE CEILING PLANS,

THE FLOOR PLANS, SECTIONS AND DETAILS, THESE DISCREPANCIES SHALL BE

BROUGHT TO THE ATTENTION OF THE ARCHITECT BEFORE PROCEEDING WITH THE WORK.

9. ALIGN ALL LIGHT FIXTURES, SPEAKERS, SMOKE DETECTORS, SPRINKLER HEADS AND OTHER DEVICES AS INDICATED ON THE REFLECTED CEILING PLANS (TYP U.N.O.).

VERIFY PLACEMENT W/ ARCHITECT FOR DEVICES AND FIXTURES NOT SHOWN.

10. FURNITURE IS N.I.C. AND IS SHOWN FOR LOCATION ONLY.11. CONTRACTOR SHALL ADD EMERGENCY AND EXIT SIGNS THROUGH THE BUILDING AS

DETERMINED BY THE CITY OF BALDWIN PARK INSPECTORS DURING FIELD INSPECTIONS.

12. COORDINATE WITH MPE FOR LIGHTING FIXTURES, DUCTS AND ALL MPE ACCESSORIES.

NOTIFY ARCHITECT OF ANY DISCREPANCIES.

13. INSTALL FIRE EXTINGUISHERS IN ACCORDANCE TO NFPA-10. PLEASE NOTE THAT MAXIMUM DISTANCE TRAVELED TO A FIRE EXTINGUISHER SHALL BE 75 FEET.

14. DRYWALL TO BE LEVEL 5 FINISH THROUGHOUT.

WALL TYPES

METAL STUD SPACING SCHEDULE

WALL HEIGHT STUD SPEC STUD SPACING
0'-0" TO 10'-0" 362S162-18 (25 GA) 1'-4" O.C
10'-0" TO 12'-5" 362S162-33 (20 GA) 2'-0" O.C12'-5" TO 13'-6" 362S162-33 (20 GA) 1'-4" O.C 13'-6" TO 15'-8" 362S162-33 (20 GA) 1'-0" O.C
15'-8" TO 16'-11" 362S162-43 (18 GA) 1'-0" O.C16'-11" TO 19'-8" 362S162-54 (16 GA) 1'-0" O.C 19'-8" TO 26'-7" 600S162-54 (16 GA) 1'-0" O.C

FOLLOW METAL STUD SCHEDULE OR MANUFACTURERSRECOMENDED SCHEDULE NEW FULL HEIGHT INTERIOR PARTITION 2x6" STEEL STUD
WALL SEE DETAIL 2/ A521
NEW 2X6" FULL HEIGHT STEEL STUD 1 HOUR RATED
FIRE BARRIER SEE DETAIL 7/ A521 PROVIDE

MARKING ON WALLS

SEE STUD SPACING TABLE BELOW OR PER
MANUFACTURERS RECOMENDATIONS.

EXISTING EXTERIOR WALL TO BE FURRED SEE DETAIL
1/A521

MODULAR WALL PER MODULAR MANUFACTURER
POST

PROCESS RM
006

PACKAGING
& LABELING
012

PRE POST

PROCESS RM
007

STORAGE &

TRANSFER
009
MOP
CLOSET
008
VAULT
010
I.T.
011

EXISTING

RESTROOM
003

EXISTING

RESTROOM
002

HALLWAY
001

HALLWAY
001
002-A
003-A
006-A
006-B
007-A
008-A
010-A
009-A
009-B
011-A
012-A
012-B
001-A
012-C

HALLWAY
005

FLEX MOD
C1D1 ROOM
004
19'-7" 20'-0"
17'-10" 24'-5" 5'-3" 9'-9" 10'-3"
13'-9"
5'-7" 26'-3" 4'-11" 9'-2" 13'-7" 8'-10" 5'-9"
5'-7"
4'-9"
7'-0"
5'-2" 10'-1"
20'-0"
12'-0"
71'-8"
71'-8"
57'-3 1/2"
ENTRY
(EMERGENCY
EXIT)
(EMERGENCY
EXIT)
BUILDING AREA ANALYSISOCCUPANCY LOADING PER CBC 2013 TABLE 1004.1.12 MAXIMUM FLOOR AREA

ALLOWANCES PER OCCUPANT
MANUFACTURING/PRODUCTION: 2626 S.F./200 14 OCC.

TOTAL: 14 OCC,

EXIT REQUIREMENTS
REQUIRED: 1 EXITSPROVIDED: 2 EXITS
COMMON PATH OF TRAVEL LESS THAN 100'.

EXIT WIDTH (CBC TABLE 1005.1) (MAX. OCCUPANT LOAD) X .15 = REQ'D WIDTH REQUIRED: (14) X .15 = 1.96"PROVIDED: 72"
004-A
009-C

EGRESS PATH

EGRESS PATH

EGRESS PATH

EGRESS PATH

EGRESS PATH

EGRESS PATH

EGRESS PATH

EGRESS PATH
NORTH
1/4" = 1'-0"

FLOOR PLAN
8 12
6 4
2 0
1 A501
350 SQFT
230 SQFT
74 SQFT
475 SQFT
368 SQFT
208 SQFT

AQUA TERGERE

PROCESSING FACILITY
8208 ATLANTIC AVENUE
CUDAHY, CA 90201
© COPYRIGHT 2018

PATHANGAY ARCHITECTS, LLC
KEY:

DRAWN BY: REVIEWED BY:
7/30/2018 2018-19
SHEET TITLE:SHEET NUMBER:DATE: PROJECT NUMBER:
pathangay architects
727 E BETHANY HOME RD - SUITE D225
PHOENIX ARIZONA 85014
(P) 602-368-9375 (F) 602-368-9380
A201

FLOORPLAN
CITY COMMENTS07/30/2018 1
1 1
1 1
1 1
25

Administrative Review Record - Aqua Tergere, LLC

GENERAL NOTES

1. ALL SOIL UNDER FOOTINGS AND SLABS ON GRADE SHALL BE TREATED WITH TERMITE

POISON PRIOR TO POURING CONCRETE

2. ALL GYPSUM BOARD SHALL BE 5/8" THICK UNLESS NOTED OTHERWISE.

3. AT ALL WATER HEATER LOCATIONS - PROVIDE PRESSURE RELIEF LINE TO THE EXTERIOR @ 6" - 24" ABOVE FINISH GRADE IN THE DOWN POSITION.

4. PROVIDE COMBUSTION AIR AS REQUIRED AT ALL GAS APPLIANCE LOCATIONS PER THE INTERNATIONAL MECHANICAL CODE.

5. ALL BUILDING INSULATION SHALL COMPLY WITH SECTION 718 OF THE 2006 I.B.C AND SHALL HAVE A FLAME SPREAD RATING NOT TO EXCEED 25, AND A SMOLE DENSITY NOT TO EXCEED 450, WEN TESTED IN ACCORDANCE WITH ASTM E84.

6. SIGNAGE UNDER SEPARATE APPROVAL AND PERMITS.

7. NOT ALL KEYNOTES REFER TO ITEMS ON THIS SHEET.8. WHERE DIMENSIONAL OR DETAIL DISCREPANCIES EXIST BETWEEN THE CEILING PLANS,

THE FLOOR PLANS, SECTIONS AND DETAILS, THESE DISCREPANCIES SHALL BE

BROUGHT TO THE ATTENTION OF THE ARCHITECT BEFORE PROCEEDING WITH THE WORK.

9. ALIGN ALL LIGHT FIXTURES, SPEAKERS, SMOKE DETECTORS, SPRINKLER HEADS AND OTHER DEVICES AS INDICATED ON THE REFLECTED CEILING PLANS (TYP U.N.O.).

VERIFY PLACEMENT W/ ARCHITECT FOR DEVICES AND FIXTURES NOT SHOWN.

10. FURNITURE IS N.I.C. AND IS SHOWN FOR LOCATION ONLY.11. CONTRACTOR SHALL ADD EMERGENCY AND EXIT SIGNS THROUGH THE BUILDING AS

DETERMINED BY THE CITY OF BALDWIN PARK INSPECTORS DURING FIELD INSPECTIONS.

12. COORDINATE WITH MPE FOR LIGHTING FIXTURES, DUCTS AND ALL MPE ACCESSORIES.

NOTIFY ARCHITECT OF ANY DISCREPANCIES.

13. INSTALL FIRE EXTINGUISHERS IN ACCORDANCE TO NFPA-10. PLEASE NOTE THAT MAXIMUM DISTANCE TRAVELED TO A FIRE EXTINGUISHER SHALL BE 75 FEET.

14. DRYWALL TO BE LEVEL 5 FINISH THROUGHOUT.

WALL TYPES

METAL STUD SPACING SCHEDULE

WALL HEIGHT STUD SPEC STUD SPACING
0'-0" TO 10'-0" 362S162-18 (25 GA) 1'-4" O.C
10'-0" TO 12'-5" 362S162-33 (20 GA) 2'-0" O.C12'-5" TO 13'-6" 362S162-33 (20 GA) 1'-4" O.C 13'-6" TO 15'-8" 362S162-33 (20 GA) 1'-0" O.C
15'-8" TO 16'-11" 362S162-43 (18 GA) 1'-0" O.C16'-11" TO 19'-8" 362S162-54 (16 GA) 1'-0" O.C 19'-8" TO 26'-7" 600S162-54 (16 GA) 1'-0" O.C

FOLLOW METAL STUD SCHEDULE OR MANUFACTURERSRECOMENDED SCHEDULE NEW FULL HEIGHT INTERIOR PARTITION 2x6" STEEL STUD
WALL SEE DETAIL 2/ A521
NEW 2X6" FULL HEIGHT STEEL STUD 1 HOUR RATED
FIRE BARRIER SEE DETAIL 7/ A521 PROVIDE

MARKING ON WALLS

SEE STUD SPACING TABLE BELOW OR PER
MANUFACTURERS RECOMENDATIONS.

EXISTING EXTERIOR WALL TO BE FURRED SEE DETAIL
1/A521

MODULAR WALL PER MODULAR MANUFACTURER
POST

PROCESS RM
006

PACKAGING
& LABELING
012

PRE POST

PROCESS RM
007

STORAGE &

TRANSFER
009
MOP
CLOSET
008
VAULT
010
I.T.
011

EXISTING

RESTROOM
003

EXISTING

RESTROOM
002

HALLWAY
001

HALLWAY
001
002-A
003-A
006-A
006-B
007-A
008-A
010-A
009-A
009-B
011-A
012-A
012-B
001-A
012-C

HALLWAY
005

FLEX MOD
C1D1 ROOM
004
19'-7" 20'-0"
17'-10" 24'-5" 5'-3" 9'-9" 10'-3"
13'-9"
5'-7" 26'-3" 4'-11" 9'-2" 13'-7" 8'-10" 5'-9"
5'-7"
4'-9"
7'-0"
5'-2" 10'-1"
20'-0"
12'-0"
71'-8"
71'-8"
57'-3 1/2"
ENTRY
(EMERGENCY
EXIT)
(EMERGENCY
EXIT)
BUILDING AREA ANALYSISOCCUPANCY LOADING PER CBC 2013 TABLE 1004.1.12 MAXIMUM FLOOR AREA

ALLOWANCES PER OCCUPANT
MANUFACTURING/PRODUCTION: 2626 S.F./200 14 OCC.

TOTAL: 14 OCC,

EXIT REQUIREMENTS
REQUIRED: 1 EXITSPROVIDED: 2 EXITS
COMMON PATH OF TRAVEL LESS THAN 100'.

EXIT WIDTH (CBC TABLE 1005.1) (MAX. OCCUPANT LOAD) X .15 = REQ'D WIDTH REQUIRED: (14) X .15 = 1.96"PROVIDED: 72"
004-A
009-C

EGRESS PATH

EGRESS PATH

EGRESS PATH

EGRESS PATH

EGRESS PATH

EGRESS PATH

EGRESS PATH

EGRESS PATH
NORTH
1/4" = 1'-0"

FLOOR PLAN
8 12
6 4
2 0
1 A501
350 SQFT
230 SQFT
74 SQFT
475 SQFT
368 SQFT
208 SQFT

AQUA TERGERE

PROCESSING FACILITY
8208 ATLANTIC AVENUE
CUDAHY, CA 90201
© COPYRIGHT 2018

PATHANGAY ARCHITECTS, LLC
KEY:

DRAWN BY: REVIEWED BY:
7/30/2018 2018-19
SHEET TITLE:SHEET NUMBER:DATE: PROJECT NUMBER:
pathangay architects
727 E BETHANY HOME RD - SUITE D225
PHOENIX ARIZONA 85014
(P) 602-368-9375 (F) 602-368-9380
A201

FLOORPLAN
CITY COMMENTS07/30/2018 1
1 1
1 1
1 1
25

Administrative Review Record - Aqua Tergere, LLC

Administrative Review Record - Aqua Tergere, LLC

GENERAL NOTES

1. ALL SOIL UNDER FOOTINGS AND SLABS ON GRADE SHALL BE TREATED WITH TERMITE

POISON PRIOR TO POURING CONCRETE

2. ALL GYPSUM BOARD SHALL BE 5/8" THICK UNLESS NOTED OTHERWISE.

3. AT ALL WATER HEATER LOCATIONS - PROVIDE PRESSURE RELIEF LINE TO THE EXTERIOR @ 6" - 24" ABOVE FINISH GRADE IN THE DOWN POSITION.

4. PROVIDE COMBUSTION AIR AS REQUIRED AT ALL GAS APPLIANCE LOCATIONS PER THE INTERNATIONAL MECHANICAL CODE.

5. ALL BUILDING INSULATION SHALL COMPLY WITH SECTION 718 OF THE 2006 I.B.C AND SHALL HAVE A FLAME SPREAD RATING NOT TO EXCEED 25, AND A SMOLE DENSITY NOT TO EXCEED 450, WEN TESTED IN ACCORDANCE WITH ASTM E84.

6. SIGNAGE UNDER SEPARATE APPROVAL AND PERMITS.

7. NOT ALL KEYNOTES REFER TO ITEMS ON THIS SHEET.8. WHERE DIMENSIONAL OR DETAIL DISCREPANCIES EXIST BETWEEN THE CEILING PLANS,

THE FLOOR PLANS, SECTIONS AND DETAILS, THESE DISCREPANCIES SHALL BE

BROUGHT TO THE ATTENTION OF THE ARCHITECT BEFORE PROCEEDING WITH THE WORK.

9. ALIGN ALL LIGHT FIXTURES, SPEAKERS, SMOKE DETECTORS, SPRINKLER HEADS AND OTHER DEVICES AS INDICATED ON THE REFLECTED CEILING PLANS (TYP U.N.O.).

VERIFY PLACEMENT W/ ARCHITECT FOR DEVICES AND FIXTURES NOT SHOWN.

10. FURNITURE IS N.I.C. AND IS SHOWN FOR LOCATION ONLY.11. CONTRACTOR SHALL ADD EMERGENCY AND EXIT SIGNS THROUGH THE BUILDING AS

DETERMINED BY THE CITY OF BALDWIN PARK INSPECTORS DURING FIELD INSPECTIONS.

12. COORDINATE WITH MPE FOR LIGHTING FIXTURES, DUCTS AND ALL MPE ACCESSORIES.

NOTIFY ARCHITECT OF ANY DISCREPANCIES.

13. INSTALL FIRE EXTINGUISHERS IN ACCORDANCE TO NFPA-10. PLEASE NOTE THAT MAXIMUM DISTANCE TRAVELED TO A FIRE EXTINGUISHER SHALL BE 75 FEET.

14. DRYWALL TO BE LEVEL 5 FINISH THROUGHOUT.

WALL TYPES

METAL STUD SPACING SCHEDULE

WALL HEIGHT STUD SPEC STUD SPACING
0'-0" TO 10'-0" 362S162-18 (25 GA) 1'-4" O.C
10'-0" TO 12'-5" 362S162-33 (20 GA) 2'-0" O.C12'-5" TO 13'-6" 362S162-33 (20 GA) 1'-4" O.C 13'-6" TO 15'-8" 362S162-33 (20 GA) 1'-0" O.C
15'-8" TO 16'-11" 362S162-43 (18 GA) 1'-0" O.C16'-11" TO 19'-8" 362S162-54 (16 GA) 1'-0" O.C 19'-8" TO 26'-7" 600S162-54 (16 GA) 1'-0" O.C

FOLLOW METAL STUD SCHEDULE OR MANUFACTURERSRECOMENDED SCHEDULE NEW FULL HEIGHT INTERIOR PARTITION 2x6" STEEL STUD
WALL SEE DETAIL 2/ A521
NEW 2X6" FULL HEIGHT STEEL STUD 1 HOUR RATED
FIRE BARRIER SEE DETAIL 7/ A521 PROVIDE

MARKING ON WALLS

SEE STUD SPACING TABLE BELOW OR PER
MANUFACTURERS RECOMENDATIONS.

EXISTING EXTERIOR WALL TO BE FURRED SEE DETAIL
1/A521

MODULAR WALL PER MODULAR MANUFACTURER
POST

PROCESS RM
006

PACKAGING
& LABELING
012

PRE POST

PROCESS RM
007

STORAGE &

TRANSFER
009
MOP
CLOSET
008
VAULT
010
I.T.
011

EXISTING

RESTROOM
003

EXISTING

RESTROOM
002

HALLWAY
001

HALLWAY
001
002-A
003-A
006-A
006-B
007-A
008-A
010-A
009-A
009-B
011-A
012-A
012-B
001-A
012-C

HALLWAY
005

FLEX MOD
C1D1 ROOM
004
19'-7" 20'-0"
17'-10" 24'-5" 5'-3" 9'-9" 10'-3"
13'-9"
5'-7" 26'-3" 4'-11" 9'-2" 13'-7" 8'-10" 5'-9"
5'-7"
4'-9"
7'-0"
5'-2" 10'-1"
20'-0"
12'-0"
71'-8"
71'-8"
57'-3 1/2"
ENTRY
(EMERGENCY
EXIT)
(EMERGENCY
EXIT)
BUILDING AREA ANALYSISOCCUPANCY LOADING PER CBC 2013 TABLE 1004.1.12 MAXIMUM FLOOR AREA

ALLOWANCES PER OCCUPANT
MANUFACTURING/PRODUCTION: 2626 S.F./200 14 OCC.

TOTAL: 14 OCC,

EXIT REQUIREMENTS
REQUIRED: 1 EXITSPROVIDED: 2 EXITS
COMMON PATH OF TRAVEL LESS THAN 100'.

EXIT WIDTH (CBC TABLE 1005.1) (MAX. OCCUPANT LOAD) X .15 = REQ'D WIDTH REQUIRED: (14) X .15 = 1.96"PROVIDED: 72"
004-A
009-C

EGRESS PATH

EGRESS PATH

EGRESS PATH

EGRESS PATH

EGRESS PATH

EGRESS PATH

EGRESS PATH

EGRESS PATH
NORTH
1/4" = 1'-0"

FLOOR PLAN
8 12
6 4
2 0
1 A501
350 SQFT
230 SQFT
74 SQFT
475 SQFT
368 SQFT
208 SQFT

AQUA TERGERE

PROCESSING FACILITY
8208 ATLANTIC AVENUE
CUDAHY, CA 90201
© COPYRIGHT 2018

PATHANGAY ARCHITECTS, LLC
KEY:

DRAWN BY: REVIEWED BY:
7/30/2018 2018-19
SHEET TITLE:SHEET NUMBER:DATE: PROJECT NUMBER:
pathangay architects
727 E BETHANY HOME RD - SUITE D225
PHOENIX ARIZONA 85014
(P) 602-368-9375 (F) 602-368-9380
A201

FLOORPLAN
CITY COMMENTS07/30/2018 1
1 1
1 1
1 1
25

Administrative Review Record - Aqua Tergere, LLC

ROLL-UP
DOOR

OPENING

CMU WALL

ROLL-UPDOOR

BUILDING B NORTH ELEVATION
SCALE: 3/16" = 1'-0" 1
0' 2' 4' 8' 16'

BUILDING B EAST ELEVATION
0' 2' 4' 8' 16'
2 BUILDING B WEST ELEVATION
0' 2' 4' 8' 16'
3 BUILDING B SOUTH ELEVATION
0' 2' 4' 8' 16'
4 17'-11"
17'-11"
17'-11"
17'-11"
7'-2"
13'-8"
SCALE: 3/16" = 1'-0"
SCALE: 3/16" = 1'-0" SCALE: 3/16" = 1'-0"
A401

PROPOSEDEXTERIOR ELEVATIONS
--- ---

AQUA TERGERE

PROCESSING FACILITY
8208 ATLANTIC AVENUE
CUDAHY, CA 90201
© COPYRIGHT 2018

PATHANGAY ARCHITECTS, LLC
KEY:

DRAWN BY: REVIEWED BY:
7/30/2018 2018-19
SHEET TITLE:SHEET NUMBER:

DATE: PROJECT NUMBER:
pathangay architects
727 E BETHANY HOME RD - SUITE D225
PHOENIX ARIZONA 85014
(P) 602-368-9375 (F) 602-368-9380
CITY COMMENTS07/30/2018 1
1 1
1 1
25

Administrative Review Record - Aqua Tergere, LLC

EXHIBIT E

CEQA NOTICE OF EXEMPTION

Administrative Review Record - Aqua Tergere, LLC

Notice of Exemption Appendix E
Revised 2011
To: Office of Planning and Research
P.O. Box 3044, Room 113
Sacramento, CA 95812-3044
County Clerk
County of: __________________
___________________________
___________________________
From: (Public Agency): ____________________________
_______________________________________________
_______________________________________________
(Address)
Project Title: ____________________________________________________________________________ Project Applicant: ________________________________________________________________________ Project Location - Specific:

Project Location - City: ______________________ Project Location - County: _____________________ Description of Nature, Purpose and Beneficiaries of Project:

Name of Public Agency Approving Project: _____________________________________________________ Name of Person or Agency Carrying Out Project: ________________________________________________ Exempt Status: (check one):

Ministerial (Sec. 21080(b)(1); 15268);

Declared Emergency (Sec. 21080(b)(3); 15269(a));

Emergency Project (Sec. 21080(b)(4); 15269(b)(c));
 Categorical Exemption. State type and section number: ____________________________________  Statutory Exemptions. State code number: ______________________________________________ Reasons why project is exempt:

Lead Agency
Contact Person: ____________________________ Area Code/Telephone/Extension: _______________ If filed by applicant:

1. Attach certified document of exemption finding.

2. Has a Notice of Exemption been filed by the public agency approving the project? 
Yes
No Signature: ____________________________ Date: ______________ Title: _______________________
Signed by Lead Agency
Signed by Applicant
Authority cited: Sections 21083 and 21110, Public Resources Code. Date Received for filing at OPR: _______________ Reference: Sections 21108, 21152, and 21152.1, Public Resources Code.